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CITY OF MUSKEGON CITY COMMISSION MEETING June 24, 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: A. Introduction of Isabela Gonzalez, Economic Development Analyst Economic Development ☐ PUBLIC HEARINGS: ☐ FEDERAL/STATE/COUNTY OFFICIALS UPDATE: ☐ PUBLIC COMMENT ON AGENDA ITEMS: ☐ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Resolution for Housing Tax Exemption at 524 and 528 Oak Duplex/ADU Project Economic Development C. Workforce Housing Restrictive Covenant, 524 and 528 Oak Duplex/ADU Project Economic Development D. Sale of 528 Oak Planning E. Resolution for Housing Tax Exemption at 300, 310, and 370 Allen Duplex/ADU Project Economic Development F. Workforce Housing Restrictive Covenant, 300, 310, and 370 Allen Duplex ADU Project Economic Development G. Sale of 300, 310, & 370 Allen Planning Page 1 of 3 Page 1 of 201 H. Resolution for Housing Tax Exemption at 280 Allen and 305 Amity Duplex/ADU Project Economic Development I. Workforce Housing Restrictive Covenant, 280 Allen and 305 Amity Duplex/ADU Project Economic Development J. Sale of 305 Amity & 280 Allen Planning K. Resolution for Housing Tax Exemption at 313 Orchard Duplex/ADU Project Economic Development L. Workforce Housing Restrictive Covenant, 313 Orchard Duplex/ADU Project Economic Development M. Sale of 313 Orchard Planning N. Sale of 420 Oak, 452 Oak, and 451 Erickson. Planning O. Sale of 447 Oak Planning P. Fire Records and Compliance Program Public Safety Q. Revision to County Human Resources Contract Manager's Office R. Contract with Mediation & Restorative Services Planning S. Janitorial Service Contract Public Works T. Rezoning of 62 Irwin Ave from Neighborhood Residential (R) to Low- Density Multiple Family Residential (RM-1). Planning U. Rezoning of 1188 Lakeshore Dr from Lakefront Recreation (LR) to Form Based Code, Urban Residential (FBC, UR). Planning V. Neighborhood Enterprise Zone Certificate Transfer for 302 Terrace Point Circle Economic Development W. Adjustment to FY 2024/25 Budget, Manager's Office, Contracted Services (Climate Action Plan) Manager's Office ☐ UNFINISHED BUSINESS: A. Official City of Muskegon Pride & Juneteenth Flags Mayor's Office ☐ 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. Page 2 of 3 Page 2 of 201 ☐ CLOSED SESSION: A. City Manager Evaluation City Clerk ☐ 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 3 of 3 Page 3 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Approval of Minutes Submitted by: Ann Meisch, City Clerk Department: City Clerk Brief Summary: To approve minutes of the June 9, 2025, Commission Worksession Meeting, and the June 10, 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 4 of 201 CITY OF MUSKEGON CITY COMMISSION WORKSESSION June 9, 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 Katrina Kochin, Jay Kilgo, and Rachel Gorman (arrived at 6:05 p.m.), City Manager Jonathan Seyferth, and City Clerk Ann Marie Meisch Absent: Commissioners Willie German, Jr., and Destinee Keener NEW BUSINESS A. FY 2026 Budget Discussion Manager's Office City Manager, Jonathan Seyferth presented the Fiscal Year 2025 budget for discussion. On May 12th, the City Commission received a copy of the draft FY 2026 budget. On May 27th, staff presented the budget and held a public hearing as required by law. This is simply another opportunity for the City Commission to discuss the budget ahead of budget adoption at our June 10th City Commission meeting. B. Nelson House Realtor RFP Planning Jake Eckholm, Director of Development Services for the City of Muskegon updated the Commission on the Nelson House. Following revisions to the conditions for the purchase and redevelopment of the Nelson House approved in March of this year, staff has drafted a request for proposals for real estate broker services for the sale of the Nelson House and is seeking to update the Commission and incorporate any feedback before publishing the RFP. The City of Muskegon Development Services Division will be seeking proposals from real estate brokers/firms to market and sell the Nelson House located at 382 W. Muskegon Avenue. The Nelson House Purchase and Redevelopment Conditions of Sale approved by the City Commission on March 11, 2025, will be adhered to throughout the marketing and sale process. It is the intent of this request for proposals to have the successful broker/firm enter into a Professional Services Contract with the City to supply real estate services as outlined; such a contract will return to the City Commission for final approval. Page 1 of 2 Page 5 of 201 PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 7:12 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 2 of 2 Page 6 of 201 CITY OF MUSKEGON CITY COMMISSION MEETING June 10, 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, June 10, 2025. Mayor Johnson opened the meeting with a moment of silence, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Rachel Gorman, Katrina Kochin, and Willie German, Jr., City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch Absent: Commissioners Jay Kilgo and Destinee Keener 2025-45 HONORS, AWARDS, AND PRESENTATIONS A. Women's Veterans Day Resolution Manager's Office Mayor Johnson read the Women's Veterans Day Resolution and presented it to the Women Veterans who were in attendance thanking them for coming and for their service. B. Climate Action Plan - Fresh Coast Climate Solutions Government Relations & Strategic Operations Peter Wills, Director of Government Relations and Strategic Operations, introduced Rebecca Elder and Jenny Oorbeck from Fresh Coast Climate Solutions who presented the City’s Government Operations Climate Action Plan (CAP). A CAP exists for assets owned and operated by the City. The CAP establishes a roadmap for achieving net-zero greenhouse gas emissions from municipal operations by 2040. 2025-46 PUBLIC HEARINGS Page 1 of 10 Page 7 of 201 A. Neighborhood Enterprise Zone Certificate - 351 W. Western Ave (Units 7A-7B) (Floors 2-5) Economic Development The staff is requesting the approval of a Neighborhood Enterprise Zone (NEZ) certificate for 15 years for new construction apartments at 351 W. Western Ave. An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from 351 Phase II LLC for the construction of 64 new apartment units (41 studios and 23 one-bedroom units) located at 351 W. Western Avenue. The project also includes retail space. The City Commission previously approved a Brownfield Plan amendment for this project on May 13, 2025. According to the Brownfield Plan, approximately 50% of the apartments will be designated for individuals earning 120% or less of the area median income (AMI) for a period of 30 years. The cost of construction is estimated at $232,160 per unit. This project represents the second phase of the Lakeview Lofts development. The applicant has met both local and state requirements for the issuance of the NEZ certificate. STAFF RECOMMENDATION: I move to close the public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate for 15 years for 351 W. Western Ave (Units 7A & 7B) (Floors 2-5) and authorize the City Clerk and Mayor to sign the certificate and resolution. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner German, second by Commissioner Kochin, to close the public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate for 15 years for 351 W. Western Ave (Units 7A & 7B) (Floors 2-5) and authorize the City Clerk and Mayor to sign the certificate and resolution. ROLL VOTE: Ayes: St.Clair, Johnson, German, Gorman, and Kochin Nays: None MOTION PASSES B. Community and Neighborhood Services 2025 Annual Action Plan Community & Neighborhood Services Citizen input is a necessary process of program activities for the CDBG/HOME annual allocations. The 2025 Annual Action Plan comment period is another opportunity to comment on the programs and activities proposed during the Hearing. The Annual Action Plan is available on our website for citizen review and comment. The comment period is 30 days from June 2 to July 1, 2025. A public hearing is another opportunity to comment about the Federal CDBG and HOME program activities performed during the fiscal year 2024 (July 1,2025 - Page 2 of 10 Page 8 of 201 June 30, 2026). STAFF RECOMMENDATION: To host a hearing for the Annual Action Plan 2025. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to close the Public Hearing. ROLL VOTE: Ayes: Johnson, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES FEDERAL/STATE/COUNTY OFFICIALS UPDATE Jessica Cook, Muskegon County Commissioner for District 6, stated they just signed a new 3-year contract with the County Administrator, Mark Eisenbarth. Michigan Department of Health and Human Services awarded accreditation to the Public Health Department. Accepted an increase in the DTE Energy Assistance Program. Original budget was 3.8 million dollars and they just increased it to 7.3 million dollars. PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2025-47 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the May 27, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. B. Fresh Coast Climate Solutions - Climate Action Plan Manager's Office Staff to present and seek adoption of the City's Government Operations Climate Action Plan (CAP) as prepared by Fresh Coast Climate Solutions. A CAP exists for assets owned and operated by the City. The CAP establishes a roadmap for achieving net-zero greenhouse gas (GHG) emissions from municipal operations by 2040. In April 2023, the City Commission passed a resolution declaring the city’s commitment to climate action initiatives and to combat the impact of climate change on our community and planet. The city intends to reduce its organizational GHG emissions through deliberative budget, policy, and administrative actions. In February 2024, a Government Operations Greenhouse Gas Inventory was Page 3 of 10 Page 9 of 201 completed. Results of this Inventory were intended to inform the development of a Climate Action Plan. This CAP’s content is organized into 5 focus areas, 18 objectives, and 97 actions. Understanding which facilities are the highest contributors to the city’s organizational GHG emissions can inform investments in energy efficiency, renewable energy, and operational improvements to maximize emissions reductions. The City received a $75,000 Community Energy Management Program grant through EGLE to offset the cost of the contract. Documents related to Climate Action can be found here. https://muskegon-mi.gov/city-services/elected-officials/climate-action/ STAFF RECOMMENDATION: I move to adopt the City of Muskegon Government Operations-Climate Action Plan, as presented. C. FY 2025-26 Budget Manager's Office Presenting a draft of the Fiscal Year 2026 budget - the total appropriation across all funds is $111.9 million, with $44.1 million appropriated from the general fund. Staff distributed the Fiscal Year 2026 budget on May 12, 2025. We held our public hearing on May 27, 2025, and further discussion took place at our work session on Monday, June 9. The staff recommends approval of the FY 2026 budget as presented, with total appropriations of $111.9 million, including $44.1 million in the general fund. The General Fund budget is presented with a budget surplus (in the black) of $232,972. STAFF RECOMMENDATION: Move to approve the budget resolution for Fiscal Year 2025-26, which begins on Tuesday, July 1, 2025. H. Contract for expungement clinics with G.U.N.S. Planning The City has partnered with G.U.N.S. (Gaining UNITY through Non-Violent Solutions) for the past two years to provide expungement clinics. This contract is for another three expungement clinics to be held over the next year. The City has partnered with G.U.N.S. (Gaining UNITY through Non-Violent Solutions) for the past two years to provide expungement clinics. These services are paid for by the Muskegon Social Equity Program, which is funded through excise tax dollars from adult-use marihuana. This contract is for another three expungement clinics to be held over the next year. These services are free of charge to all residents of the City. At their May 28 meeting, the Legislative Policy Committee recommended entering into an agreement with G.U.N.S. to provide expungement clinic services. Page 4 of 10 Page 10 of 201 STAFF RECOMMENDATION: I move to approve the contract with G.U.N.S. as presented. I. 4th Quarter Reforecast FY 2024-25 Finance At this time, staff is seeking approval of the 4th Quarter budget reforecast for the 24/25 fiscal year. Overall, the revenues in the General Fund went up by $399,000. However, the General Fund expenditures went up by $989,000. Payroll and benefits make up a largest portion of the General Fund increased expenditures. Legal fees expenditures are expected to go up by $175,000 from the original budget. STAFF RECOMMENDATION: To approve the 4th Quarter fiscal year 2024-25 budget reforecast as presented by staff. K. Resolution for 292 W Western Ave Unit 103 Social District Permit Manager's Office Puerto Vallarta Mexican Grill and Bar LLC is requesting to join the Downtown Muskegon Social District for their new restaurant, Puerto Vallarta Mexican Grill and Bar, located at 292 W Western Ave Unit 103—in the Leonard Building, alongside Hometown Creamery and the Exchange. To meet state requirements under MCL 436.1551, the business must receive approval from the City Commission in order to apply for a Social District Permit. Puerto Vallarta Mexican Grill and Bar plans to open on June 20, 2025, and will feature a full bar and Mexican food. Upon approval, staff will coordinate with the business to provide training on social district rules as outlined in our social district processes. STAFF RECOMMENDATION: to approve the Social District Permit for Puerto Vallarta Mexican Grill and Bar LLC at 292 W Western Ave Unit 103, Muskegon, MI 49440 for consideration by the Michigan Liquor Control Commission. L. Charter Amendment Language Manager's Office Staff is seeking approval of proposed ballot language for a charter amendment. A petition was circulated to amend Chapter III, Section 3 of the City Charter establishing a 12 year term limit for City Commissioners. The resolution is presented for commission approval. STAFF RECOMMENDATION: to approve the resolution approving ballot language for a 12 year term limit for service on the City Commission. M. Concur with CRC Recommendation City Clerk To concur with CRC recommendation to accept resignation and make appointments. Page 5 of 10 Page 11 of 201 To accept the resignation of Shaundrica Roberts from the Citizen's Police Review Board; appoint Heather Garretson to the Citizen's Police Review Board as citizen at-large; and appoint Scott Plummer to the Construction Code Board of Appeals as plumbing. STAFF RECOMMENDATION: To accept the resignation of Shaundrica Roberts and appoint Heather Garretson and Scott Plummer. Motion by Commissioner Gorman, second by Vice Mayor St.Clair, to adopt the Consent Agenda as presented minus items D, E, F, G, and J. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES 2025-48 ITEMS REMOVED FROM THE CONSENT AGENDA D. Social Media Policy & Guidelines Community Engagement Staff recommends the approval of the Social Media Use Policy and Guidelines. To address the evolving landscape of online communication and ensure responsible, effective, and consistent use of social media by the City of Muskegon, a comprehensive Social Media Use Policy and Guidelines has been developed. This Policy establishes protocols for social media use by City officials and employees, ensuring communications are properly authorized, formatted, and legally compliant, particularly considering rulings such as Lindke v. Freed, 601 U.S. 187 (2024). At the May 28, 2025 Legislative Policy Committee Meeting, Commissioners reviewed a draft social media policy. Based on their feedback, staff made two clarifying updates: 1. Elected Official Pages (Page 2): Updated language encourages officials to distinguish their elected pages from personal ones and understand legal responsibilities. A previous request to separate campaign and official pages was removed, recognizing that incumbents may use official pages for campaigning. 2. Oversight and Enforcement (Page 3): Corrected wording to specify that City- controlled pages—not individual staff or officials—are prohibited from posting certain types of content, including confidential information, copyright violations, offensive language, partisan political views, and commercial content. STAFF RECOMMENDATION: to approve the Social Media Use Policy and Guidelines as presented, authorizing its immediate implementation. Page 6 of 10 Page 12 of 201 Motion by Commissioner Kochin, second by Commissioner German, to approve the Social Media Use Policy and Guidelines as presented, authorizing its immediate implementation. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES E. Sale of 286 Myrtle, 518 Oak, and 450 Orchard. Planning Staff is seeking authorization to sell the City-owned vacant lots at 286 Myrtle, 518 Oak, and 450 Orchard to RSW Holdings LLC and Barrowstone Capital LLC. RSW Holdings LLC and Barrowstone Capital LLC would like to purchase the City- owned buildable lots at 286 Myrtle, 518 Oak, and 450 Orchard for $8,400 (75% of the True Cash Value of $11,200) plus half of the closing costs, and the fee to register the deed. RSW Holdings LLC and Barrowstone Capital LLC will be constructing a single-family home on each property. Both 286 Myrtle and 450 Orchard will be split into two build-able lots, for a total of five (5) single-family homes to be built. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lots at 286 Myrtle, 518 Oak, and 450 Orchard to RSW Holdings LLC and Barrowstone Capital LLC. Motion by Commissioner German, second by Vice Mayor St.Clair, to authorize staff to sell the City-owned vacant lots at 286 Myrtle, 518 Oak, and 450 Orchard to RSW Holdings LLC and Barrowstone Capital LLC. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, and Johnson Nays: German MOTION PASSES F. Contract Award: SP92339 City Parks Parking Lot Improvements DPW- Engineering Staff is requesting authorization to enter into a contract with McCormick Sand, Inc. in the amount of $621,571.00 for parking lot reconstruction work within Reese Playfield, Sheldon Park, Beukema Playfield, and Grand Trunk Launch Ramp. Bids were solicited for a construction project to reconstruct the parking lots within three parks and one boat launch; Reese Playfield, Sheldon Park, Beukema Playfield, and Grand Trunk Launch Ramp. McCormick Sand of Whitehall provided the low bid. This work is being funded by ARPA dollars Page 7 of 10 Page 13 of 201 dedicated to Parks capital improvement needs. STAFF RECOMMENDATION: Move to authorize staff to enter into a contract with McCormick Sand, Inc. in the amount of $621,571.00 for parking lot reconstruction work within Reese Playfield, Sheldon Park, Beukema Playfield, and Grand Trunk Launch Ramp. Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to authorize staff to enter into a contract with McCormick Sand, Inc. in the amount of $621,571.00 for parking lot reconstruction work within Reese Playfield, Sheldon Park, Beukema Playfield, and Grand Trunk Launch Ramp. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, German, and Gorman Nays: None MOTION PASSES G. Kruse Park Nature Scape Playground Award DPW- Parks Staff requests approval to enter into a contract with Nature Playscapes in the amount of $152,597 for a "nature scape" playground at Kruse Park based on their innovation, sustainability, qualifications and experience building nature scapes in Michigan. Through our park master planning efforts, the community identified Kruse Park as the perfect location for a Nature Scape Playground. A nature scape playground (also known as a natural playground or nature-based play area) is a play environment that uses natural elements—such as trees, rocks, sand, water, logs, and native plants—instead of traditional playground equipment like plastic slides and metal swings. Natural materials (wood, boulders, plants, soil), unstructured elements that encourage creative play (e.g., tree stumps for jumping, logs for balancing), integration with the natural landscape, and design reflecting the local ecosystem emphasize open-ended play rather than fixed play. Several proposals provided a nice playground design but failed to represent a true natural playground. Out of the 4 bids we received, Nature Playscapes shows the most innovative and sustainable design that fits into the natural playground criteria. This playground was budgeted at $160,000. The bid tab is shown below. Nature Playscapes - $152,927 Kinetic Recreation - $149,457 Park Vision - $149,535 WeBuildFun - $93,768 STAFF RECOMMENDATION: Move to approve staff to enter into a contract with Nature Playscapes in the amount of $152,597 for a "nature scape" playground at Kruse Park based on their innovation, sustainability, qualifications and Page 8 of 10 Page 14 of 201 experience building nature scapes in Michigan. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve staff to enter into a contract with Nature Playscapes in the amount of $152,597 for a "nature scape" playground at Kruse Park based on their innovation, sustainability, qualifications and experience building nature scapes in Michigan. ROLL VOTE: Ayes: St.Clair, Johnson, German, Gorman, and Kochin Nays: None MOTION PASSES J. Official City of Muskegon Pride & Juneteenth Flags Manager's Office A proposal to adopt two additional Official City Flags modeled on the Intersex Pride Flag & the Juneteenth Flag. Cities across the country have taken steps to ensure inclusive symbols can be used in their cities. One way to achieve this is by adopting multiple official city flags that can be flown at any time. It is proposed that the City of Muskegon adopt two additional city flags based on the Intersex Pride Flag, with the city's tile "M" in the lower right corner of the flag. And another flag based on the Official Juneteenth Flag with the city's time "M" in the upper left corner of the flag. STAFF RECOMMENDATION: To adopt the City of Muskegon Pride Flag and the City of Muskegon Juneteenth Flag as alternative official City flags. Motion by Commissioner German, second by Commissioner Kochin, to adopt the City of Muskegon Pride Flag and the City of Muskegon Juneteenth Flag as alternative official City flags. Motion by Commissioner German, second by Vice Mayor St.Clair, to table this item to the June 24th Commission Meeting. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES ANY OTHER BUSINESS Mayor Johnson celebrated the Muskegon Pride Group, as well as JC's, and all the other sponsors and vendors that put on the Pride Festival at Hackley Park. Vice Mayor St.Clair reminded everyone about the Juneteenth Parade on Thursday, June 19th at 11:00. Page 9 of 10 Page 15 of 201 Commissioner Kochin stated that Thursday, June 12th, at 3:30 at Fisherman's Landing is the Public Safety Youth Fishing Derby. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 7:58 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 10 of 10 Page 16 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Resolution for Housing Tax Exemption at 524 and 528 Oak Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: Arnoldink Properties, with Derek Sjaarda acting as builder, is requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 2 lots in the Angell neighborhood. Detailed Summary & Background: Mr. Sjaarda has been working with Development Services Staff and leadership in order to facilitate new construction rental housing in the city of Muskegon. These proposed lots will be utilized for two 2 story duplexes with an accessory dwelling unit behind each for a total of 6 housing units. In this case Sjaarda Homes is acting as the owner's representative and builder for the Arnoldink family. They are proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. This resolution will result in the City assessing 10% of the annual rents on the property as a payment in lieu of taxes (PILOT) for a period of 15 years in exchange for the developer complying with MSHDA rent limits. With recent changes to state statute, these properties can benefit the City's scattered site Brownfield TIF program despite being part of the PILOT. This is the same incentive program we approved for Allen Edwin in 2023, but with smaller incremental developers. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Progress toward completion of ongoing economic development projects Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: NA Yes No N/A Page 17 of 201 Recommended Motion: Motion to adopt the Resolution for Housing Tax Exemption for Arnoldink Properties, LLC and to authorize the mayor and clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 18 of 201 Resolution Setting Annual Service Fee for the Workforce Housing Development by Arnoldink Properties, LLC Whereas, Arnoldink Properties, LLC (the “Sponsor”), has applied to the City of Muskegon for a determination that a proposed workforce housing project sponsored by it at 524 Oak Avenue and 528 Oak Avenue is entitled to the exemption from taxes authorized by Chapter 82 of the City of Muskegon Code of Ordinances; now therefore, be it Resolved, that the proposed workforce housing project is within the class of housing developments entitled to an exemption under Chapter 82, if it meets the following contingencies: a. Sponsor shall provide documentation to the City substantiating ownership of the subject properties. b. Construction of at least 2 units of the proposed workforce housing project shall be commenced within twelve (12) months from the date of the Michigan State Housing Development Authority’s (“MSHDA”) notification of exemption, or this resolution shall be void and of no effect. c. For the life of the this Workforce Housing Resolution, 100% of the dwelling units in the proposed workforce housing project will be restricted to rental units or other housing options that are reasonably affordable to, and occupied by, a household whose total household income is not greater than 120% of the area median income published by the United States Department of Housing and Urban Development. d. The Sponsor shall submit an affidavit to MSHDA in the form required by MSHDA for certification that the workforce housing project is eligible for the workforce housing exemption. e. Upon receipt of notification from MSHDA that the workforce housing project is eligible for a workforce housing exemption, the Sponsor shall file the certified notification of exemption with the City Assessor before November 1 of the year preceding the tax year in which the exemption is to be effective; and, f. Sponsor shall record a restrictive covenant in a form acceptable to the City Attorney. The restrictive covenant shall be recorded in the register of deeds for the county in which the workforce housing project is located and shall comply with the requirements of Chapter 82; and, further be it Resolved, that in lieu of ad valorem property taxes, the Sponsor shall pay an annual service charge equal to ten percent (10%) of the “Annual Shelter Rents” as defined in Section 82-52 for that portion of the workforce housing project occupied for Workforce Housing; and, further be it Page 19 of 201 Resolved, that annually, no later than April 29, the Sponsor shall provide the City Assessor the Sponsor’s budget for Annual Shelter Rent for the current calendar year and a copy of Sponsor’s financial statements for the preceding calendar year, prepared in accordance with generally accepted auditing standards or, if Sponsor is not subject to an audit requirement, Sponsor’s compiled financial statements for the preceding calendar year prepared in accordance with generally accepted accounting principles and certified by Sponsor; and, further be it Resolved, that the tax exempt status granted by this Resolution shall remain in effect for 15 years, unless otherwise terminated pursuant to Chapter 82 or this Resolution; and, further be it Resolved, that all portions of Chapter 82 are hereby incorporated by reference; and, further be it Resolved, that this Resolution may be assigned by the Sponsor only to subsequent owners of the workforce housing project who shall agree to abide to its terms. If not assigned, to and accepted by subsequent owners of the workforce housing project, it shall automatically terminate; and further be it Resolved, that the Mayor and City Clerk execute a contract with the Sponsor providing the tax exemption and acceptance of payments in lieu of taxes as defined within this resolution and its application, such contract subject to approval as to substance by the City Manager and as to form by the City Attorney. YEAS: _______ NAYS: _______ I hereby certify that the above Resolution was adopted by the City Commission of the City of Muskegon at its regular meeting held on ________, in the Commission Chambers, City Hall, 933 Terrace, Muskegon, Michigan. Ann Meisch, City Clerk Page 20 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Workforce Housing Restrictive Covenant, 524 and 528 Oak Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: Arnoldink Properties, with Derek Sjaarda acting as builder, is requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 2 lots in the Angell neighborhood. Detailed Summary & Background: Mr. Sjaarda has been working with Development Services Staff and leadership in order to facilitate new construction rental housing in the city of Muskegon. These proposed lots will be utilized for two 2 story duplexes with an accessory dwelling unit behind each for a total of 6 housing units. In this case Sjaarda Homes is acting as the owner's representative and builder for the Arnoldink family. They are proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. This restrictive covenant establishes the terms by which the city has agreed to authorize a PILOT as opposed to ad valorem property taxes for these parcels. It is to be attached to an affidavit the developer must submit to MSHDA to prove they have local approval for the project and to their commitment to reserving these units for households within the MSHDA income thresholds. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Progress toward completion of ongoing economic development projects Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: NA Yes No N/A Recommended Motion: Page 21 of 201 Motion to adopt the Workforce Housing Restrictive Covenant between Arnoldink Properties, LLC and the City and to authorize the Mayor and Clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 22 of 201 WORKFORCE HOUSING RESTRICTIVE COVENANT This Workforce Housing Restrictive Covenant (“Restrictive Covenant”) is made by and between the City of Muskegon, Michigan (“Municipality”) and Arnoldink Properties, LLC, a Michigan limited liability company, presently of Holland MI 49424 (the “Sponsor”) as of June 24th, 2025. R E C I T A L S: A. Sponsor is the owner of certain real property located in the City of Muskegon, County of Muskegon, State of Michigan, and more particularly described on the attached Exhibit A (the “Property”), which is attached hereto and incorporated by reference into this Agreement. B. Sponsor has offered to provide nine “Workforce housing” units as defined by MCL 125.1415a(10)(d) on the Property (the “Project”) and has applied to Municipality for a workforce housing exemption from ad valorem property taxes under Section 15a of the State Housing Development Authority Act, being Public Act 346 of 1966, as amended (the “Act”). C. In consideration of Sponsor’s offer to undertake the Project, Municipality has agreed to exempt the Property from all ad valorem property taxes imposed by any taxing jurisdiction and to accept in lieu thereof payment of an annual service charge for a period of 15-years as provided by Chapter 82 of the City Code of Ordinances, as amended (the “Ordinance”). D. Upon completion of the Project, the annual service charge paid in lieu of all ad valorem property taxes shall be equal to ten percent (10%) of the annual shelter rents collected from the Project and shall be paid as provided in the Ordinance. E. Sponsor and Municipality agree that the economic feasibility of the Project depends upon the continuing effect of the annual service charge in lieu of all ad valorem taxes approved by Municipality for the 15-year exemption period. F. Accordingly, upon recording with the Muskegon County Register of Deeds, this Restrictive Covenant will restrict use of the Property to Workforce housing for the 15-year exemption period. NOW, THEREFORE, in consideration of Municipality’s acceptance of payment of the annual service charge in lieu of all ad valorem property taxes and Sponsor’s commitment to construct or rehabilitate the Project, Sponsor and Municipality hereby covenant as follows: 1. Recitals. The above recitals are acknowledged as true and correct and are incorporated by reference into this paragraph. 1 Page 23 of 201 2. Definitions. All words and phrases used in this Restrictive Covenant have the same meaning as defined in the Act or the Ordinance. 3. Workforce Housing Covenant. The Project will, upon completion of the proposed construction or rehabilitation, constitute workforce housing for households for persons and families whose household income is not greater than 120% of the area median income, as published by the Michigan State Housing Development Authority (“the Authority) for Muskegon County, adjusted for family size. All of the housing units in the Project will be rented, or available for rental, on a continuous basis to members of the general public throughout the term of this Restrictive Covenant. 4. Term of Exemption. The exemption from ad valorem property taxes approved by Municipality shall remain in effect in accordance with this Restrictive Covenant restricting use of the Project to workforce housing for a period of 15-years, ending on December 31, 2040, or so long as the Project is used as workforce housing, whichever is less. 5. No Violation. Sponsor agrees that it will not knowingly take or permit any action that would result in a violation of the requirements of this Restrictive Covenant or the Ordinance, which is incorporated herein as if a part of this Restrictive Covenant. Further, Sponsor agrees to take any required action, including the amendment of this Restrictive Covenant, as may be necessary, in the determination of the Municipality or of the Authority, to comply with the Ordinance. If Municipality determines that the Project is not in compliance with the requirements of this Restrictive Covenant, and Sponsor, after receiving written notice of the non-compliance from Municipality, does not correct such non-compliance within thirty (30) days, Municipality shall be entitled to take such actions as it deems necessary to enforce the provisions of this Restrictive Covenant. 6. Sponsor to Demonstrate Compliance. Sponsor will provide Municipality with such certifications, reports and other information as are required by Municipality to demonstrate compliance with the Ordinance. Sponsor will provide Municipality and Authority with an annual verification of compliance with this Restrictive Covenant, in a form specified by the Authority. 7. Transfer of Ownership. Sponsor will, prior to a sale or other voluntary transfer of ownership of the Project or any part thereof, notify Municipality in writing, and will enter into any agreements with the purchaser or transferee as may be prescribed by Municipality to ensure such purchaser's or transferee's compliance with this Restrictive Covenant and Michigan law. 8. Enforceability. This Restrictive Covenant is enforceable in any court in the State of Michigan having jurisdiction thereof, by Municipality, and to the extent required by the Ordinance, by any individuals who are tenants of the Project. 9. Covenant Running with the Land; Binding Effect. The foregoing covenant shall constitute and be enforced as a covenant running with the land under Michigan law and shall be binding on all successors or assigns of Sponsor or Municipality and any future owner or operator of the Project for the full 15-year exemption period. 10. Miscellaneous. In the event of any conflict between the terms of this Restrictive Covenant and the requirements of the Ordinance the requirements of the Ordinance shall prevail. This Restrictive Covenant may only be amended or terminated by a writing signed by both Sponsor and Municipality. The invalidity of any clause or provision of this Restrictive Covenant shall not affect the validity of the remaining portions thereof. 2 Page 24 of 201 IN WITNESS WHEREOF, is this Covenant is effective as of December 1st, 2025. [Signature Pages Follow] 3 Page 25 of 201 CITY OF MUSKEGON By: ________________________________________ Its: ________________________________________ STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this day of June 24th, 2025 by Kenneth Johnson, as Mayor of the City of Muskegon, a municipal corporation of the State of Michigan. Notary Public, ________________County, MI My Commission Expires: Acting in _________________ County, MI 4 Page 26 of 201 SPONSOR Arnoldink Properties, LLC By: _____________________________________ Its: STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this ____ day of __________, by ______________________, as the manager/authorized member of Arnoldink Properties, a Michigan limited liability company, on behalf of said Company. Notary Public, __________County, MI My Commission Expires: Acting in ________________County, MI DRAFTED BY: WHEN RECORDED RETURN TO: 5 Page 27 of 201 EXHIBIT A Legal Description of Property Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 E 1/2 LOT 12 & W 7.25 FT LOT 13 BLK 41 Address: 524 OAK AVE, MUSKEGON, MI 49442 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 E 40.25 FT LOT 13 BLK 41 Address: 528 OAK AVE, MUSKEGON, MI 49442 Parcel #: 61- 24-205-041-0013-00 Price: $3,000.00 6 Page 28 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Sale of 528 Oak Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lot at 528 Oak to Arnoldink Properties LLC, Dave Arnoldink. Detailed Summary & Background: Arnoldink Properties LLC, Dave Arnoldink, would like to purchase the City-owned buildable lot at 528 Oak for $3,000 (75% of the True Cash Value of $4,000) plus half of the closing costs, and the fee to register the deed. 528 Oak will be split into two build-able lots and Arnoldink Properties LLC, Dave Arnoldink, will be constructing a duplex and an ADU on each property for a total of 2 duplexes and 2 ADUs. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Focus Area/Action Item Addressed: 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: Authorize staff to sell the City-owned vacant lot at 528 Oak to Arnoldink Properties LLC (Dave Arnoldink). Approvals: Guest(s) Invited / Presenting: Page 29 of 201 Immediate Division x Head No Information Technology Other Division Heads x Communication Legal Review x Page 30 of 201 Page 31 of 201 Page 32 of 201 Page 33 of 201 Page 34 of 201 Page 35 of 201 Page 36 of 201 Page 37 of 201 Page 38 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Resolution for Housing Tax Exemption at 300, 310, and 370 Allen Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: OrangeFin Properties, owned by Kara Novak and her husband, are requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 3 lots in the Angell neighborhood. Detailed Summary & Background: Mr. and Mrs. Novak have been working with Development Services Staff and leadership in order to facilitate new construction rental and for sale housing in the city of Muskegon. These proposed lots will be utilized for three 2 story duplexes with an accessory dwelling unit behind each for a total of 9 housing units. The Novaks are proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. The units at 370 Allen are potentially to be used for a partnership with Goodwill Industries to provide housing to returning citizens that have completed their independent living course and have full time employment. This resolution will result in the City assessing 10% of the annual rents on the property as a payment in lieu of taxes (PILOT) for a period of 15 years in exchange for the developer complying with MSHDA rent limits. With recent changes to state statute, these properties can benefit the City's scattered site Brownfield TIF program despite being part of the PILOT. This is the same incentive program we approved for Allen Edwin in 2023, but with smaller incremental developers. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: N/A Yes No N/A Page 39 of 201 Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A Recommended Motion: Motion to adopt the Resolution for Housing Tax Exemption for Orangefin Properties, LLC and to authorize the mayor and clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 40 of 201 Resolution Setting Annual Service Fee for the Workforce Housing Development by OrangeFin Properties, LLC Whereas, OrangeFin Properties, LLC (the “Sponsor”), has applied to the City of Muskegon for a determination that a proposed workforce housing project sponsored by it at 300 Allen Street, 310 Allen Street, and 370 Allen Street is entitled to the exemption from taxes authorized by Chapter 82 of the City of Muskegon Code of Ordinances; now therefore, be it Resolved, that the proposed workforce housing project is within the class of housing developments entitled to an exemption under Chapter 82, if it meets the following contingencies: a. Sponsor shall provide documentation to the City substantiating ownership of the subject properties. b. Construction of at least 2 units of the proposed workforce housing project shall be commenced within twelve (12) months from the date of the Michigan State Housing Development Authority’s (“MSHDA”) notification of exemption, or this resolution shall be void and of no effect. c. For the life of the this Workforce Housing Resolution, 100% of the dwelling units in the proposed workforce housing project will be restricted to rental units or other housing options that are reasonably affordable to, and occupied by, a household whose total household income is not greater than 120% of the area median income published by the United States Department of Housing and Urban Development. d. The Sponsor shall submit an affidavit to MSHDA in the form required by MSHDA for certification that the workforce housing project is eligible for the workforce housing exemption. e. Upon receipt of notification from MSHDA that the workforce housing project is eligible for a workforce housing exemption, the Sponsor shall file the certified notification of exemption with the City Assessor before November 1 of the year preceding the tax year in which the exemption is to be effective; and, f. Sponsor shall record a restrictive covenant in a form acceptable to the City Attorney. The restrictive covenant shall be recorded in the register of deeds for the county in which the workforce housing project is located and shall comply with the requirements of Chapter 82; and, further be it Resolved, that in lieu of ad valorem property taxes, the Sponsor shall pay an annual service charge equal to ten percent (10%) of the “Annual Shelter Rents” as defined in Section 82-52 for that portion of the workforce housing project occupied for Workforce Housing; and, further be it Page 41 of 201 Resolved, that annually, no later than April 29, the Sponsor shall provide the City Assessor the Sponsor’s budget for Annual Shelter Rent for the current calendar year and a copy of Sponsor’s financial statements for the preceding calendar year, prepared in accordance with generally accepted auditing standards or, if Sponsor is not subject to an audit requirement, Sponsor’s compiled financial statements for the preceding calendar year prepared in accordance with generally accepted accounting principles and certified by Sponsor; and, further be it Resolved, that the tax exempt status granted by this Resolution shall remain in effect for 15 years, unless otherwise terminated pursuant to Chapter 82 or this Resolution; and, further be it Resolved, that all portions of Chapter 82 are hereby incorporated by reference; and, further be it Resolved, that this Resolution may be assigned by the Sponsor only to subsequent owners of the workforce housing project who shall agree to abide to its terms. If not assigned, to and accepted by subsequent owners of the workforce housing project, it shall automatically terminate; and further be it Resolved, that the Mayor and City Clerk execute a contract with the Sponsor providing the tax exemption and acceptance of payments in lieu of taxes as defined within this resolution and its application, such contract subject to approval as to substance by the City Manager and as to form by the City Attorney. YEAS: _______ NAYS: _______ I hereby certify that the above Resolution was adopted by the City Commission of the City of Muskegon at its regular meeting held on ________, in the Commission Chambers, City Hall, 933 Terrace, Muskegon, Michigan. Ann Meisch, City Clerk Page 42 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Workforce Housing Restrictive Covenant, 300, 310, and 370 Allen Duplex ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: OrangeFin Properties, owned by Kara Novak and her husband, are requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 3 lots in the Angell neighborhood. Detailed Summary & Background: Mr. and Mrs. Novak have been working with Development Services Staff and leadership in order to facilitate new construction rental and for sale housing in the city of Muskegon. These proposed lots will be utilized for three 2 story duplexes with an accessory dwelling unit behind each for a total of 9 housing units. The Novaks are proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. The units at 370 Allen are potentially to be used for a partnership with Goodwill Industries to provide housing to returning citizens that have completed their independent living course and have full time employment. This restrictive covenant establishes the terms by which the city has agreed to authorize a PILOT as opposed to ad valorem property taxes for these parcels. It is to be attached to an affidavit the developer must submit to MSHDA to prove they have local approval for the project and to their commitment to reserving these units for households within the MSHDA income thresholds. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Progress toward completion of ongoing economic development projects Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A • Fund(s) or Account(s): Budget Amendment Needed: Page 43 of 201 NA Yes No N/A Recommended Motion: Motion to adopt the Workforce Housing Restrictive Covenant between Orangefin Properties, LLC and the City and to authorize the Mayor and Clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 44 of 201 WORKFORCE HOUSING RESTRICTIVE COVENANT This Workforce Housing Restrictive Covenant (“Restrictive Covenant”) is made by and between the City of Muskegon, Michigan (“Municipality”) and OrangeFin Properties LLC, a Michigan limited liability company, presently of Holland MI 49424 (the “Sponsor”) as of June 24th, 2025. R E C I T A L S: A. Sponsor is the owner of certain real property located in the City of Muskegon, County of Muskegon, State of Michigan, and more particularly described on the attached Exhibit A (the “Property”), which is attached hereto and incorporated by reference into this Agreement. B. Sponsor has offered to provide nine “Workforce housing” units as defined by MCL 125.1415a(10)(d) on the Property (the “Project”) and has applied to Municipality for a workforce housing exemption from ad valorem property taxes under Section 15a of the State Housing Development Authority Act, being Public Act 346 of 1966, as amended (the “Act”). C. In consideration of Sponsor’s offer to undertake the Project, Municipality has agreed to exempt the Property from all ad valorem property taxes imposed by any taxing jurisdiction and to accept in lieu thereof payment of an annual service charge for a period of 15-years as provided by Chapter 82 of the City Code of Ordinances, as amended (the “Ordinance”). D. Upon completion of the Project, the annual service charge paid in lieu of all ad valorem property taxes shall be equal to ten percent (10%) of the annual shelter rents collected from the Project and shall be paid as provided in the Ordinance. E. Sponsor and Municipality agree that the economic feasibility of the Project depends upon the continuing effect of the annual service charge in lieu of all ad valorem taxes approved by Municipality for the 15-year exemption period. F. Accordingly, upon recording with the Muskegon County Register of Deeds, this Restrictive Covenant will restrict use of the Property to Workforce housing for the 15-year exemption period. NOW, THEREFORE, in consideration of Municipality’s acceptance of payment of the annual service charge in lieu of all ad valorem property taxes and Sponsor’s commitment to construct or rehabilitate the Project, Sponsor and Municipality hereby covenant as follows: 1. Recitals. The above recitals are acknowledged as true and correct and are incorporated by reference into this paragraph. 1 Page 45 of 201 2. Definitions. All words and phrases used in this Restrictive Covenant have the same meaning as defined in the Act or the Ordinance. 3. Workforce Housing Covenant. The Project will, upon completion of the proposed construction or rehabilitation, constitute workforce housing for households for persons and families whose household income is not greater than 120% of the area median income, as published by the Michigan State Housing Development Authority (“the Authority) for Muskegon County, adjusted for family size. All of the housing units in the Project will be rented, or available for rental, on a continuous basis to members of the general public throughout the term of this Restrictive Covenant. 4. Term of Exemption. The exemption from ad valorem property taxes approved by Municipality shall remain in effect in accordance with this Restrictive Covenant restricting use of the Project to workforce housing for a period of 15-years, ending on December 31, 2040, or so long as the Project is used as workforce housing, whichever is less. 5. No Violation. Sponsor agrees that it will not knowingly take or permit any action that would result in a violation of the requirements of this Restrictive Covenant or the Ordinance, which is incorporated herein as if a part of this Restrictive Covenant. Further, Sponsor agrees to take any required action, including the amendment of this Restrictive Covenant, as may be necessary, in the determination of the Municipality or of the Authority, to comply with the Ordinance. If Municipality determines that the Project is not in compliance with the requirements of this Restrictive Covenant, and Sponsor, after receiving written notice of the non-compliance from Municipality, does not correct such non-compliance within thirty (30) days, Municipality shall be entitled to take such actions as it deems necessary to enforce the provisions of this Restrictive Covenant. 6. Sponsor to Demonstrate Compliance. Sponsor will provide Municipality with such certifications, reports and other information as are required by Municipality to demonstrate compliance with the Ordinance. Sponsor will provide Municipality and Authority with an annual verification of compliance with this Restrictive Covenant, in a form specified by the Authority. 7. Transfer of Ownership. Sponsor will, prior to a sale or other voluntary transfer of ownership of the Project or any part thereof, notify Municipality in writing, and will enter into any agreements with the purchaser or transferee as may be prescribed by Municipality to ensure such purchaser's or transferee's compliance with this Restrictive Covenant and Michigan law. 8. Enforceability. This Restrictive Covenant is enforceable in any court in the State of Michigan having jurisdiction thereof, by Municipality, and to the extent required by the Ordinance, by any individuals who are tenants of the Project. 9. Covenant Running with the Land; Binding Effect. The foregoing covenant shall constitute and be enforced as a covenant running with the land under Michigan law and shall be binding on all successors or assigns of Sponsor or Municipality and any future owner or operator of the Project for the full 15-year exemption period. 10. Miscellaneous. In the event of any conflict between the terms of this Restrictive Covenant and the requirements of the Ordinance the requirements of the Ordinance shall prevail. This Restrictive Covenant may only be amended or terminated by a writing signed by both Sponsor and Municipality. The invalidity of any clause or provision of this Restrictive Covenant shall not affect the validity of the remaining portions thereof. 2 Page 46 of 201 IN WITNESS WHEREOF, is this Covenant is effective as of December 1st, 2025. [Signature Pages Follow] 3 Page 47 of 201 CITY OF MUSKEGON By: ________________________________________ Its: ________________________________________ STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this day of June 24th, 2025 by Kenneth Johnson, as Mayor of the City of Muskegon, a municipal corporation of the State of Michigan. Notary Public, ________________County, MI My Commission Expires: Acting in _________________ County, MI 4 Page 48 of 201 SPONSOR OrangeFin Properties, LLC By: _____________________________________ Its: STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this ____ day of __________, by ______________________, as the manager/authorized member of OrangeFin Properties, a Michigan limit liability company, on behalf of said Company. Notary Public, __________County, MI My Commission Expires: Acting in ________________County, MI DRAFTED BY: WHEN RECORDED RETURN TO: 5 Page 49 of 201 EXHIBIT A Legal Description of Property Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 33 FEET LOT 10 WEST 16.5 FEET LOT 11 BLOCK 210 Address: 300 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0010-10 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 49.5 FEET LOT 11 BLOCK 210 Address: 310 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0011-01 Legal Description: CITY OF MUSKEGON REVISED PLAT 1903 LOT 10 BLK 211 Address: 370 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205- 211-0010-00 6 Page 50 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Sale of 300, 310, & 370 Allen Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lots at 300, 310, & 370 Allen to Sjaarda Homes and Properties LLC (Derek Sjaarda). Detailed Summary & Background: Sjaarda Homes and Properties LLC (Derek Sjaarda) would like to purchase the City-owned buildable lots at 300, 310, & 370 Allen for $9,000 (75% of the True Cash Value of $12,000) plus half of the closing costs, and the fee to register the deed. Sjaarda Homes and Properties LLC (Derek Sjaarda) will be constructing a duplex and an accessory dwelling unit (ADU) on each property. 300 Allen is adjacent to the current location of the Angell Neighborhood Association (NA) community garden (290 Allen). The Angell NA has given an official letter of support for the development of the lots. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Focus Area/Action Item Addressed: 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: Authorize staff to sell the City-owned vacant lots at 300, 310, & 370 Allen to Sjaarda Homes and Properties LLC (Derek Sjaarda). Page 51 of 201 Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Other Division Heads x Communication Legal Review x Page 52 of 201 PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (“Agreement”) is made June 24, 2025 (“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and Sjaarda Homes and Properties LLC, Derek Sjaarda, 15131 Blueberry Ct, West Olive MI, 49460 (“Developer”), with reference to the following facts: Background A. Developer proposes to purchase and develop three (3) vacant properties owned by City which are located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project Property”). B. City and Developer desire to establish the terms, covenants, and conditions upon which City will sell and Developer will purchase and develop the Project Property. Developer intends to develop on each of the Project Properties one (1) duplex and one (1) accessory dwelling unit (ADU), for a total of three (3) duplexes and three (3) ADUs. (the “Project”). Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Project Property. City agrees to sell to Developer, and Developer agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Project Property, subject to reservations, restrictions, and easements of record. 2. Purchase Price. The total purchase price for the Project Property shall be $9,000.00, which shall be paid in cash or other immediately available funds at Closing (defined below) less the $500 deposit that the Developer has paid to the City of Muskegon. Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be reimbursed all or a portion of the purchase price for the Parcel upon the completion of certain design standards as further described herein. 3. Construction and Development Requirements. a. Construction Dates. The parties acknowledge and agree that Developer shall have a period of Twenty-Four (24) months from the date of Closing to complete the Project (“Construction Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by the parties in writing. b. Construction Details; Purchase Price Reimbursement. Developer’s construction and development of the Project Property, including single-family homes, duplexes, triplexes, and accessory dwelling units, shall be in substantial conformance with its plans and specifications provided to City by Developer or as otherwise agreed upon in writing between City and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a portion of the purchase price for the Project Property upon Developer’s satisfaction of the following design standards for each single-family home, duplex, triplex, and accessory dwelling unit it constructs on the Project Property. If the Project includes an accessory dwelling unit, both the primary dwelling unit (single-family home, duplex, triplex) and the accessory dwelling unit must meet the design standards outlined below to be eligible for reimbursement. Page 53 of 201 Design Standard Purchase Price Reimbursement for Parcel Open front porch of at least 60 sq. ft. 20% Picture or bay window 20% Alley-loaded parcel 20% Shutter or other acceptable window 20% treatments Underground Sprinkling 20% (By way of example only: If Developer completes three of the design standards listed above for the construction at the Parcel located at 300 Allen, Developer would be reimbursed $1,800.00, which is 60% of the $3,000.00 purchase price for this Parcel. If Developer completes all five design standards, Developer would be reimbursed the entire purchase price for this Parcel. If Developer builds a duplex or small multiplex, Developer would be reimbursed 100% of the purchase price for this Parcel.) 4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for Developer’s obligation to commence and complete construction of a duplex and an ADU on each of the Project Properties, the quit claim deed conveying the Project Property to Developer shall contain a right of reversion in all of the Project Property (“City’s Reversionary Right”), which may be exercised by City, in its sole and absolute discretion, if any of the following conditions occur: a. Developer does not commence construction within sixty (60) days after the date of Closing, in which case title to all of the Project Property shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(a), commencing construction means furnishing labor and materials to the Parcel of the Project Property and beginning installation of the approved duplex and/or ADU. b. Developer does not complete construction of the Project Property prior to expiration of the Construction Period, in which case title to any of the Project Property that are not complete by the end of the Construction Period shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b), completing construction means the issuance of an occupancy permit by City for the Project Property. Provided, however, the parties agree to reasonably negotiate an extension of the Construction Period up to a period of six (6) months for the Project Property that have a completed foundation before the expiration of the initial Construction Period. If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire title to the Project Property, as the case may be. To exercise City’s Reversionary Right described herein, City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all reasonable steps to ensure City acquires marketable title to the Project Property, as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without limitation, the execution of appropriate deeds and other documents. Page 54 of 201 In addition, if the Project Property revert to City, City may retain the purchase price for such Project Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the Project Property, improvements made on such Project Property shall become the property of City. In no event shall the Project Property be in a worse condition than upon the date of Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed from City to Developer. 5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Project Property in the amount of the total purchase price for the Project Property and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Project Property at the Closing naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title insurance with respect to the Project Property (the “Title Policy”). City shall be responsible for the cost of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements to the Title Policy that Developer desires. 6. Title Objections. Developer shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of City’s title to the Project Property. If objection to the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections. If Developer does not notify City in writing as to any title or survey objections, then Developer will be deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or unable to remedy the title or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or not objected to by Developer shall be deemed a “Permitted Exception.” 7. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Developer shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 8. Survey. Developer at its own expense may obtain a survey of any or all of the Project Property, and Buyer or its surveyor or other agents may enter any of the Project Property for that purpose prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon Developer's own judgment as to the location, boundaries, and area of the Project Property and improvements thereon without regard to any representations that may have been made by City or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses an encroachment or substantial variation from the presumed land boundaries or area, City shall have the option of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may elect to purchase the Project Property subject to said encroachment or variation. 9. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example Page 55 of 201 but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason, Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no written objection is made by Developer within the stated period, this inspection contingency shall be deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms of this Agreement. 10. Condition of Project Property. City and Developer acknowledge and agree that the Parcel in the Project Property is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value, nature, quality, or condition of any of the Project Property, including without limitation, soil conditions, and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property; (v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have the opportunity to perform inspections of the Project Property pursuant to this Agreement and that Developer is relying solely on Developer’s own investigation of the Project Property and not on any information provided to or to be provided by City (except as specifically provided in this Agreement). If the transaction contemplated herein closes, Developer agrees to accept the respective Project Property acquired by Developer and waive all objections or claims against City arising from or related to such Project Property and any improvements thereon except for a breach of any representations or warranties or covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees that it has determined that the respective Project Property it has acquired and all improvements thereon are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and Developer has accepted such Project Property in their present condition and subject to ordinary wear and tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of the deed. 11. Developer’s Representations and Warranties of Developer. Developer represents, covenants, and warrants the following to be true: a. Authority. Developer has the power and authority to enter into and perform Developer’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Developer and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Developer, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Developer or any of Developer's assets or property, is now or on the Closing Date will be pending or, to the knowledge of Developer, threatened. Page 56 of 201 12. Conditions Precedent. This Agreement and all of the obligations of Developer under this Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: a. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. b. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 13. Default. a. By Developer. In the event Developer fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within ten (10) days after receipt of notice, then Developer may either terminate this Agreement or Developer may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 14. Closing. a. Date of Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than 60 days from the City Commission’s approval of the sale (“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing shall be conducted at such time and location as the parties mutually agree. b. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer and City shall each pay one-half of any closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Property and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 15. Real Estate Commission. Developer and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. Page 57 of 201 16. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five (5) days after sending by first class, registered, or certified mail. Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Samantha Pulos, Code Coordinator 933 Terrace Street Muskegon, MI 49440 To Developer: Sjaarda Homes and Properties LLC Derek Sjaarda 15131 Blueberry Ct West Olive MI 49460 Email: dlsjaarda@gmail.com Cell: 616-723-7130 17. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. 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. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. Page 58 of 201 h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. This Agreement is executed effective as of the Effective Date set forth above. CITY: DEVELOPER: CITY OF MUSKEGON Sjaarda Homes and Properties LLC By: _______________________________ By: _______________________________ Name: Ken Johnson Name: Derek Sjaarda Title: Mayor Dated: __________________ Dated: __________________ By: _______________________________ Name: Ann Marie Meisch Title: City Clerk Dated: __________________ Page 59 of 201 Exhibit A The following described premises located in the City of Muskegon, County of Muskegon, State of Michigan, and legally described as follows: Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 33 FEET LOT 10 WEST 16.5 FEET LOT 11 BLOCK 210 Address: 300 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0010-10 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 49.5 FEET LOT 11 BLOCK 210 Address: 310 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0011-01 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT 1903 LOT 10 BLK 211 Address: 370 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205- 211-0010-00 Price: $3,000.00 Page 60 of 201 Page 61 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Resolution for Housing Tax Exemption at 280 Allen and 305 Amity Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: Joe and Jennifer Helms, represented by builder Derek Sjaarda, is requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 2 lots in the Angell neighborhood. Detailed Summary & Background: Mr. Sjaarda has been working with Development Services Staff and leadership in order to facilitate new construction rental housing in the city of Muskegon and is acting as the contractor and owners rep for Joe and Jennifer Helms in this case. These proposed lots will be utilized for two 2 story duplexes with an accessory dwelling unit behind each for a total of 6 housing units. Mr. Sjaarda is proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. This resolution will result in the City assessing 10% of the annual rents on the property as a payment in lieu of taxes (PILOT) for a period of 15 years in exchange for the developer complying with MSHDA rent limits. With recent changes to state statute, these properties can benefit the City's scattered site Brownfield TIF program despite being part of the PILOT. This is the same incentive program we approved for Allen Edwin in 2023, but with smaller incremental developers. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: NA Yes No N/A Recommended Motion: Page 62 of 201 Motion to adopt the Resolution for Housing Tax Exemption for Helm Group, LLC and to authorize the mayor and clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 63 of 201 Resolution Setting Annual Service Fee for the Workforce Housing Development by Helms Group, LLC Whereas, Helms Group, LLC (the “Sponsor”), has applied to the City of Muskegon for a determination that a proposed workforce housing project sponsored by it at 280 Allen Street and 305 Amity Street is entitled to the exemption from taxes authorized by Chapter 82 of the City of Muskegon Code of Ordinances; now therefore, be it Resolved, that the proposed workforce housing project is within the class of housing developments entitled to an exemption under Chapter 82, if it meets the following contingencies: a. Sponsor shall provide documentation to the City substantiating ownership of the subject properties. b. Construction of at least 2 units of the proposed workforce housing project shall be commenced within twelve (12) months from the date of the Michigan State Housing Development Authority’s (“MSHDA”) notification of exemption, or this resolution shall be void and of no effect. c. For the life of the this Workforce Housing Resolution, 100% of the dwelling units in the proposed workforce housing project will be restricted to rental units or other housing options that are reasonably affordable to, and occupied by, a household whose total household income is not greater than 120% of the area median income published by the United States Department of Housing and Urban Development. d. The Sponsor shall submit an affidavit to MSHDA in the form required by MSHDA for certification that the workforce housing project is eligible for the workforce housing exemption. e. Upon receipt of notification from MSHDA that the workforce housing project is eligible for a workforce housing exemption, the Sponsor shall file the certified notification of exemption with the City Assessor before November 1 of the year preceding the tax year in which the exemption is to be effective; and, f. Sponsor shall record a restrictive covenant in a form acceptable to the City Attorney. The restrictive covenant shall be recorded in the register of deeds for the county in which the workforce housing project is located and shall comply with the requirements of Chapter 82; and, further be it Resolved, that in lieu of ad valorem property taxes, the Sponsor shall pay an annual service charge equal to ten percent (10%) of the “Annual Shelter Rents” as defined in Section 82-52 for that portion of the workforce housing project occupied for Workforce Housing; and, further be it Resolved, that annually, no later than April 29, the Sponsor shall provide the City Assessor the Sponsor’s budget for Annual Shelter Rent for the current calendar year and a Page 64 of 201 copy of Sponsor’s financial statements for the preceding calendar year, prepared in accordance with generally accepted auditing standards or, if Sponsor is not subject to an audit requirement, Sponsor’s compiled financial statements for the preceding calendar year prepared in accordance with generally accepted accounting principles and certified by Sponsor; and, further be it Resolved, that the tax exempt status granted by this Resolution shall remain in effect for 15 years, unless otherwise terminated pursuant to Chapter 82 or this Resolution; and, further be it Resolved, that all portions of Chapter 82 are hereby incorporated by reference; and, further be it Resolved, that this Resolution may be assigned by the Sponsor only to subsequent owners of the workforce housing project who shall agree to abide to its terms. If not assigned, to and accepted by subsequent owners of the workforce housing project, it shall automatically terminate; and further be it Resolved, that the Mayor and City Clerk execute a contract with the Sponsor providing the tax exemption and acceptance of payments in lieu of taxes as defined within this resolution and its application, such contract subject to approval as to substance by the City Manager and as to form by the City Attorney. YEAS: _______ NAYS: _______ I hereby certify that the above Resolution was adopted by the City Commission of the City of Muskegon at its regular meeting held on ________, in the Commission Chambers, City Hall, 933 Terrace, Muskegon, Michigan. Ann Meisch, City Clerk Page 65 of 201 NOTES: Dimensions and details must be checked job. All dimensions are figured as rough, Copyright 2025 The Drawing Board, Inc. Unauthorized reproduction of these plan by contractor and subcontractors on the Note: Every attempt has been made in mistakes. However, the maker cannot ROOF LIVE LOAD/ SNOW the preparation of this plan to avoid guarantee against human error. 2 X 4 being 1- 1/2" X 3- 1/2". LOAD 40 PSF is prohibited by law. EXPOSURE CATEGORY B BASIC WIND SPEED 3 SECOND GUST 115 MPH 20'-0" 5/12 ENG. ROOF TRUSSES @ 24" O.C. W/ 7" HEELS ASPHALT ROOFING ICE & WIND SHIELD DRIP EDGE TO 24" (HORIZONTALLY) INSIDE OVER 15# FELT EXTERIOR WALL THE DRAWING BOARD, INC. TOP OF... TOP OF... ASPHALT SHINGLES OVER 15# PLATE PLATE FELT ON 1/2" OSB ROOF SHEATHING ON ENG. ROOF 7285 RANSOM ST. - ZEELAND, MI 49464 HORIZ SIDING TRUSSES @ 24" O.C. 616-875-DRAW (3729) BLOWN IN METAL DRIP EDGE 8'-1 1 8" 8'-1 1 8" INSULATION ALUM FASCIA OVER tim@thedrawingboard.us HORIZ SIDING 2X6 BACKER 5/8" DRYWALL VENTED ALUM VERTICAL SIDING SOFFIT 1/2" DRYWALL SLAB 2X4 #2 BTR K.D. STUDS @ 16" SLAB O.C. W/ 3-1/2" INSUL. BETWEEN W/ 7/16" OSB SHEATHING & 3'-6" WEATHER RESISTANT 3'-6" SHEATHING PAPER FOOTING FOOTING WOLMAN SILL PLATE & SILL SEAL SECURED W/ 1/2" DIA. X 10" ANCHOR BOLTS @ 6' O.C. MAX. 12" FROM CORNERS & SEAMS GRADE MIN. 6" BELOW SILL FRONT ELEVATION LEFT ELEVATION PLATE - SLOPE AWAY FROM WALL 6" IN FIRST 10'-0" 4" CONC. SLAB 1/4" = 1'0" 1/4" = 1'0" ASPHALT DAMPPROOFING 24" FOAM (R10) ON 8" X 42" P.C. WALL DOWN 24" 16" X 8" CONT. CONC. SOIL TYPE: SP SAND FOOTING LOAD BEARING CAPACITY ASSUMED AT 2000 PSF WALL SECTION SJAARDA HOMES - NOVAK RENTAL 3/8" = 1'0" 20'-0" 5/12 ENG. ROOF TRUSSES @ 24" O.C. W/ 7" HEELS ADU PLANS FOR: ASPHALT ROOFING OVER 15# FELT TOP OF... TOP OF... PLATE PLATE HORIZ SIDING HORIZ SIDING 8'-1 1 8" 8'-1 1 8" REVISIONS: SLAB SLAB 3'-6" 3'-6" FOOTING FOOTING 225075 PLAN REAR ELEVATION RIGHT ELEVATION 1/4" = 1'0" 1/4" = 1'0" SHEET OF 2 2 Page 66 of 201 24'-0" 5/12 ENG. ROOF TRUSSES @ 24" O.C. W/ 7" HEELS 16'-0" 5/12 ENG. ROOF TRUSSES @ 24" O.C. W/ 7" HEELS TOP OF... PLATE NOTES: ROOF LIVE LOAD/ SNOW 8'-1 1 8" LOAD 40 PSF EXPOSURE CATEGORY B BASIC WIND SPEED 3 SECOND GUST 115 MPH HORIZ SIDING SUBFLOOR ICE & WIND SHIELD DRIP EDGE TO 24" (HORIZONTALLY) INSIDE EXTERIOR WALL PLATE ASPHALT SHINGLES OVER 15# FELT ON BLOWN IN 1/2" OSB ROOF SHEATHING ON ENG. INSULATION ROOF TRUSSES @ 24" O.C. METAL DRIP EDGE 5/8" DRYWALL ALUM FASCIA OVER 2X6 BACKER VENTED ALUM SOFFIT SLAB/WALL PORCH WALL 1/2" DRYWALL 2X4 #2 BTR K.D. STUDS @ 16" O.C. W/ 3-1/2" INSUL. BETWEEN 3'-6" 3'-0" W/ 7/16" OSB SHEATHING & WEATHER RESISTANT FOOTING SHEATHING PAPER FRONT ELEVATION 3/4" T & G OSB SUBFLOOR 1/4" = 1'0" 11 7/8" TJI FLOOR 24'-0" 5/12 ENG. ROOF TRUSSES @ 24" O.C. W/ 7" HEELS JOISTS @ 16" O.C. 5/8" DRYWALL 2X4 #2 BTR K.D. STUDS @ 16" O.C. W/ 3-1/2" INSUL. BETWEEN W/ 7/16" OSB SHEATHING & WEATHER RESISTANT SHEATHING PAPER 1/2" DRYWALL WOLMAN SILL PLATE & SILL SEAL SECURED W/ 1/2" DIA. X 10" TOP OF... ANCHOR BOLTS @ 6' O.C. MAX. PLATE 12" FROM CORNERS & SEAMS GRADE MIN. 6" BELOW SILL HORIZ SIDING PLATE - SLOPE AWAY FROM WALL 6" IN FIRST 10'-0" 4" CONC. SLAB 8'-1 1 8" ASPHALT DAMPPROOFING 24" FOAM (R10) ON 8" X 42" P.C. WALL DOWN 24" SUBFLOOR 16" X 8" CONT. CONC. PLATE SOIL TYPE: SP SAND FOOTING LOAD BEARING CAPACITY ASSUMED AT 2000 PSF WALL SECTION 8'-1 1 8" 3/8" = 1'0" SLAB/WALL 3'-6" FOOTING REAR ELEVATION 1/4" = 1'0" REVISIONS: PLAN Note: Every attempt has been made in the preparation of this plan to avoid SHEET 225039 THE DRAWING BOARD, INC. mistakes. However, the maker cannot 4 DUPLEX PLANS FOR: 7285 RANSOM ST. - ZEELAND, MI 49464 guarantee against human error. Dimensions and details must be checked by contractor and subcontractors on the job. All dimensions are figured as rough, 2 X 4 being 1- 1/2" X 3- 1/2". OF 5 SJAARDA HOMES - NOVAK RENTAL 616-875-DRAW (3729) Copyright 2025 The Drawing Board, Inc. Unauthorized reproduction of these plan tim@thedrawingboard.us is prohibited by law. Page 67 of 201 24'-0" 10'-8" 10'-8" 2'-8" 5'-4" 5'-4" 4'-6" 6'-2" 2-2X10 HDR 2-2X10 HDR NOTES: DH3660 (EGRESS) DH3660 (EGRESS) 8'-1 1/8" PLATE HEIGHT S - SMOKE DETECTORS - INTERCONNECTED W/ BATTERY BACKUP BEDROOM #2 CM - CARBON MONOXIDE DETECTOR 2'-0" X 9'-7" CLOSET 6'0" BIFOLD 10'-0" X 11'-0" BEDROOM #1 UNLESS OTHERWISE NOTED, ALL 10'-3" 10'-7" X 9'-7" DIMENSIONAL HEADERS SHALL BE #2 BETTER 11'-4" 11 7/8" TJI FLOOR HEM FIR & ALL WINDOW & DOOR HEADERS & JOISTS @ 16" O.C. BEAMS ARE CALCULATED TO HAVE A 6'-9" 3'-11" 3'-8" 7'-0" MAXIMUM DEFLECTION OF .33" WINDOWS WITH OPENINGS LOCATED MORE S THAN 72" ABOVE FINISHED GRADE & 24" OR LESS ABOVE THE FINISHED FLOOR SHALL BE 8" EQUIPPED WITH WINDOW OPENING LIMITING 2' DEVICES OR APPROVED FALL PREVENTION 6'-1" 3'-7" BRG. HDR DEVICES. 2' 6" BATH EXTERIOR WALLS FIGURED AS 4" & 6" (3 1/2" 2' 3'-9" 5'0" BIFOLD 8" CLOSET STUD & 1/2" SHEATHING OR 5 1/2" STUD & 1/2" 2'-8" S 5'-0" S 6'-0" X 4'-11" 6'-5" X 2'-0" SHEATHING) CM LAV. ALL ATTIC ACCESS DOORS TO BE WEATHER 8'-9" 3'-7" 7'-1" STRIPPED AND INSULATED TO MEET 6" W.C. 2' REQUIRED INSULATION R-VALUE OF BATH SURROUNDING SURFACES. 5'-0" 5'-0" 10'-0" X 4'-11" ALL WINDOW & EXTERIOR DOOR HDRS @ 6'-10 REFRIG. 1/2" UNLESS OTHERWISE NOTED LAV. 5'-11" 30" RANGE W.C. W/ HOOD WASHER/DRYER 2-2X10 HDR 8'-8" 13'-4" DH3642 2'-0" BRG. HDR 12" UPPERS SINK 5'-0" 8" KITCHEN 2' LAUNDRY 13'-4" X 12'-1" 16'-5" 8'-0" X 4'-8" 12" UPPERS 50'-0" 50'-0" 8'-7 1 2" MECH./ STORAGE 8'-0" X 5'-5" 6'-1" SNACK BAR BRG. HDR 1'-10 1 2" 56'-0" 56'-0" 8'-8" 2' 15'-4" 8" S 11'-1" 4'-3" 3' TL. 0" S W.C. DINETTE LAV. 15'-4" X 7'8" 34'-9" 5'-0" 2-2X10 HDR BATH 8'-0" X 4'-11" 1 HR FIRE RATED 31'-0" 3' TL. 0" S 2'-1 1 2" INTERIOR WALLS 2' 6" (SEE DETAIL SHEET 3) BRG. HDR S 4'-1" CLOSET 8" 11 7/8" TJI FLOOR 2' 4'-5" X 3'-5" JOISTS @ 16" O.C. W/ 1 HR FIRE RATED 11'-11" CEILING ASSEMBLY 2' (SEE DETAIL SHEET 3) 6" 9"T 7 5/16"R 18'-4" UP 15R 4'-9" 3'-11" 14'-11" LIVING ROOM 11'-0" X 14'-4" BEDROOM #3 8'-0" X 10'-6" S CM 4'-3 1 2" ST '0" 3' TL. DH3660 (EGRESS) P6060 L. 0" 3 S 2-2X10 HDR 2-2X10 HDR 2-2X10 HDR 2-2X10 HDR 5/12 ENG. ROOF 20" CORNICE cL RIDGE COVERED 20" CORNICE TRUSSES @ 24" 6'-0" 6'-0" PORCH O.C. W/ 7" 15'-4" X 5'-7" HEELS 4" P.C. SLAB 2-2X10 #2 BTR 2-2X10 #2 BTR HDR ON 6X6 12" RAKE HDR ON 6X6 POSTS (TYP.) POSTS (TYP.) 8'-0" 16'-0" 4'-4" 4'-4" 1'-10" 5'-4" 3'-11" 2'-1 1 2" 2'-1 1 2" 8'-8" 11'-1" 4'-3" 24'-0" FLOOR PLAN 1/4" = 1'0" REVISIONS: PLAN Note: Every attempt has been made in the preparation of this plan to avoid SHEET 225039 THE DRAWING BOARD, INC. mistakes. However, the maker cannot 1 1098 DUPLEX PLANS FOR: 7285 RANSOM ST. - ZEELAND, MI 49464 guarantee against human error. Dimensions and details must be checked by contractor and subcontractors on the job. All dimensions are figured as rough, SQ. FT. 2 X 4 being 1- 1/2" X 3- 1/2". OF 5 SJAARDA HOMES - NOVAK RENTAL 616-875-DRAW (3729) Copyright 2025 The Drawing Board, Inc. 24' X 56' tim@thedrawingboard.us Unauthorized reproduction of these plan is prohibited by law. Page 68 of 201 24'-0" 10'-8" 10'-8" 2'-8" 5'-4" 5'-4" 4'-6" 6'-2" 12" RAKE 2-2X10 HDR 2-2X10 HDR NOTES: DH3660 (EGRESS) DH3660 (EGRESS) 8'-1 1/8" PLATE HEIGHT S - SMOKE DETECTORS - INTERCONNECTED BEDROOM #2 W/ BATTERY BACKUP 10'-0" X 11'-0" BEDROOM #1 CM - CARBON MONOXIDE DETECTOR 6'0" BIFOLD 10'-7" X 9'-7" 2'-0" X 9'-7" 5/12 ENG. ROOF CLOSET UNLESS OTHERWISE NOTED, ALL 10'-3" TRUSSES @ 24" DIMENSIONAL HEADERS SHALL BE #2 BETTER 11'-4" O.C. W/ 7" HEM FIR & ALL WINDOW & DOOR HEADERS & HEELS BEAMS ARE CALCULATED TO HAVE A 6'-9" 3'-11" 3'-8" 7'-0" MAXIMUM DEFLECTION OF .33" WINDOWS WITH OPENINGS LOCATED MORE S THAN 72" ABOVE FINISHED GRADE & 24" OR LESS ABOVE THE FINISHED FLOOR SHALL BE 8" S EQUIPPED WITH WINDOW OPENING LIMITING 2' DEVICES OR APPROVED FALL PREVENTION 6'-1" 3'-7" DEVICES. 2' BRG. HDR 6" S EXTERIOR WALLS FIGURED AS 4" & 6" (3 1/2" BATH 2' 3'-9" 5'0" BIFOLD 8" STUD & 1/2" SHEATHING OR 5 1/2" STUD & 1/2" 2'-8" CLOSET 5'-0" CM 6'-0" X 4'-11" SHEATHING) 6'-5" X 2'-0" LAV. ALL ATTIC ACCESS DOORS TO BE WEATHER 3'-7" 7'-1" 8'-9" STRIPPED AND INSULATED TO MEET 6" W.C. 2' REQUIRED INSULATION R-VALUE OF BATH SURROUNDING SURFACES. 5'-0" 5'-0" 10'-0" X 4'-11" ALL WINDOW & EXTERIOR DOOR HDRS @ 6'-10 REFRIG. 1/2" UNLESS OTHERWISE NOTED LAV. 5'-11" W.C. 30" RANGE W/ HOOD WASHER/DRYER 2-2X10 HDR DH3642 12" UPPERS SINK 5'-0" 8" KITCHEN 2' LAUNDRY 13'-4" X 12'-1" 16'-5" 20" CORNICE 12" UPPERS 8'-0" X 4'-8" 50'-0" 50'-0" MECH./ STORAGE 10'-6" 8'-0" X 5'-5" 6'-1" SNACK BAR 56'-0" 56'-0" 8'-8" 2' 15'-4" 8" 11'-1" 4'-3" W.C. DINETTE LAV. 11'-0" X 7'8" 34'-9" 5'-0" BATH 4'-3 1 2" LANDING 4'-9" X 4'-11" 3' TL. 0" S 31'-0" 3'-7" 5'-1" 2' 6" S CLOSET 4'-1" 8" 4'-5" X 3'-5" 2' cLRIDGE 9"T 7 5/16"R DN 15R 2' 6" 18'-4" 9'-9" 4'-9" 3'-11" S LIVING 20" CORNICE CM ROOM 10'-10" 15'-0" X 34'-1" BEDROOM #3 5/12 ENG. ROOF 8'-0" X 10'-6" TRUSSES @ 24" O.C. W/ 7" 4'-3 1 2" HEELS LANDING DH3660 (EGRESS) P6042 DH3642 2-2X10 HDR 2-2X10 HDR 2-2X10 HDR 12" RAKE 20" CORNICE 20" CORNICE 6'-0" 6'-0" cL RIDGE 12" RAKE 8'-0" 16'-0" 4'-4" 4'-4" 7'-2" 3'-11" 2'-1 1 2" 2'-1 1 2" 8'-8" 11'-1" 4'-3" 24'-0" SECOND FLOOR PLAN 1/4" = 1'0" REVISIONS: PLAN Note: Every attempt has been made in the preparation of this plan to avoid SHEET 225039 THE DRAWING BOARD, INC. mistakes. However, the maker cannot 2 1154 DUPLEX PLANS FOR: 7285 RANSOM ST. - ZEELAND, MI 49464 guarantee against human error. Dimensions and details must be checked by contractor and subcontractors on the job. All dimensions are figured as rough, SQ. FT. 2 X 4 being 1- 1/2" X 3- 1/2". OF 5 SJAARDA HOMES - NOVAK RENTAL 616-875-DRAW (3729) Copyright 2025 The Drawing Board, Inc. Unauthorized reproduction of these plan tim@thedrawingboard.us is prohibited by law. Page 69 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Workforce Housing Restrictive Covenant, 280 Allen and 305 Amity Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: Joe and Jennifer Helm, represented by builder Derek Sjaarda, is requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 2 lots in the Angell neighborhood. Detailed Summary & Background: Mr. Sjaarda has been working with Development Services Staff and leadership in order to facilitate new construction rental and housing in the city of Muskegon. These proposed lots will be utilized for two 2 story duplexes with an accessory dwelling unit behind each for a total of 6 housing units. Mr. Sjaarda is proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. The units at 370 Allen are potentially to be used for a partnership with Goodwill Industries to provide housing to returning citizens that have completed their independent living course and have full time employment. This restrictive covenant establishes the terms by which the city has agreed to authorize a PILOT as opposed to ad valorem property taxes for these parcels. It is to be attached to an affidavit the developer must submit to MSHDA to prove they have local approval for the project and to their commitment to reserving these units for households within the MSHDA income thresholds. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: NA Yes No N/A Page 70 of 201 Recommended Motion: Motion to adopt the Workforce Housing Restrictive Covenant between Helm Group, LLC and the City and to authorize the Mayor and Clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 71 of 201 WORKFORCE HOUSING RESTRICTIVE COVENANT This Workforce Housing Restrictive Covenant (“Restrictive Covenant”) is made by and between the City of Muskegon, Michigan (“Municipality”) and Helms Group, LLC, a Michigan limited liability company, presently of Holland MI 49424 (the “Sponsor”) as of June 24th, 2025. R E C I T A L S: A. Sponsor is the owner of certain real property located in the City of Muskegon, County of Muskegon, State of Michigan, and more particularly described on the attached Exhibit A (the “Property”), which is attached hereto and incorporated by reference into this Agreement. B. Sponsor has offered to provide nine “Workforce housing” units as defined by MCL 125.1415a(10)(d) on the Property (the “Project”) and has applied to Municipality for a workforce housing exemption from ad valorem property taxes under Section 15a of the State Housing Development Authority Act, being Public Act 346 of 1966, as amended (the “Act”). C. In consideration of Sponsor’s offer to undertake the Project, Municipality has agreed to exempt the Property from all ad valorem property taxes imposed by any taxing jurisdiction and to accept in lieu thereof payment of an annual service charge for a period of 15-years as provided by Chapter 82 of the City Code of Ordinances, as amended (the “Ordinance”). D. Upon completion of the Project, the annual service charge paid in lieu of all ad valorem property taxes shall be equal to ten percent (10%) of the annual shelter rents collected from the Project and shall be paid as provided in the Ordinance. E. Sponsor and Municipality agree that the economic feasibility of the Project depends upon the continuing effect of the annual service charge in lieu of all ad valorem taxes approved by Municipality for the 15-year exemption period. F. Accordingly, upon recording with the Muskegon County Register of Deeds, this Restrictive Covenant will restrict use of the Property to Workforce housing for the 15-year exemption period. NOW, THEREFORE, in consideration of Municipality’s acceptance of payment of the annual service charge in lieu of all ad valorem property taxes and Sponsor’s commitment to construct or rehabilitate the Project, Sponsor and Municipality hereby covenant as follows: 1. Recitals. The above recitals are acknowledged as true and correct and are incorporated by reference into this paragraph. 1 Page 72 of 201 2. Definitions. All words and phrases used in this Restrictive Covenant have the same meaning as defined in the Act or the Ordinance. 3. Workforce Housing Covenant. The Project will, upon completion of the proposed construction or rehabilitation, constitute workforce housing for households for persons and families whose household income is not greater than 120% of the area median income, as published by the Michigan State Housing Development Authority (“the Authority) for Muskegon County, adjusted for family size. All of the housing units in the Project will be rented, or available for rental, on a continuous basis to members of the general public throughout the term of this Restrictive Covenant. 4. Term of Exemption. The exemption from ad valorem property taxes approved by Municipality shall remain in effect in accordance with this Restrictive Covenant restricting use of the Project to workforce housing for a period of 15-years, ending on December 31, 2040, or so long as the Project is used as workforce housing, whichever is less. 5. No Violation. Sponsor agrees that it will not knowingly take or permit any action that would result in a violation of the requirements of this Restrictive Covenant or the Ordinance, which is incorporated herein as if a part of this Restrictive Covenant. Further, Sponsor agrees to take any required action, including the amendment of this Restrictive Covenant, as may be necessary, in the determination of the Municipality or of the Authority, to comply with the Ordinance. If Municipality determines that the Project is not in compliance with the requirements of this Restrictive Covenant, and Sponsor, after receiving written notice of the non-compliance from Municipality, does not correct such non-compliance within thirty (30) days, Municipality shall be entitled to take such actions as it deems necessary to enforce the provisions of this Restrictive Covenant. 6. Sponsor to Demonstrate Compliance. Sponsor will provide Municipality with such certifications, reports and other information as are required by Municipality to demonstrate compliance with the Ordinance. Sponsor will provide Municipality and Authority with an annual verification of compliance with this Restrictive Covenant, in a form specified by the Authority. 7. Transfer of Ownership. Sponsor will, prior to a sale or other voluntary transfer of ownership of the Project or any part thereof, notify Municipality in writing, and will enter into any agreements with the purchaser or transferee as may be prescribed by Municipality to ensure such purchaser's or transferee's compliance with this Restrictive Covenant and Michigan law. 8. Enforceability. This Restrictive Covenant is enforceable in any court in the State of Michigan having jurisdiction thereof, by Municipality, and to the extent required by the Ordinance, by any individuals who are tenants of the Project. 9. Covenant Running with the Land; Binding Effect. The foregoing covenant shall constitute and be enforced as a covenant running with the land under Michigan law and shall be binding on all successors or assigns of Sponsor or Municipality and any future owner or operator of the Project for the full 15-year exemption period. 10. Miscellaneous. In the event of any conflict between the terms of this Restrictive Covenant and the requirements of the Ordinance the requirements of the Ordinance shall prevail. This Restrictive Covenant may only be amended or terminated by a writing signed by both Sponsor and Municipality. The invalidity of any clause or provision of this Restrictive Covenant shall not affect the validity of the remaining portions thereof. 2 Page 73 of 201 IN WITNESS WHEREOF, is this Covenant is effective as of December 1st, 2025. [Signature Pages Follow] 3 Page 74 of 201 CITY OF MUSKEGON By: ________________________________________ Its: ________________________________________ STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this day of June 24th, 2025 by Kenneth Johnson, as Mayor of the City of Muskegon, a municipal corporation of the State of Michigan. Notary Public, ________________County, MI My Commission Expires: Acting in _________________ County, MI 4 Page 75 of 201 SPONSOR Helms Group, LLC By: _____________________________________ Its: STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this ____ day of __________, by ______________________, as the manager/authorized member of Helms Group, a Michigan limited liability company, on behalf of said Company. Notary Public, __________County, MI My Commission Expires: Acting in ________________County, MI DRAFTED BY: WHEN RECORDED RETURN TO: 5 Page 76 of 201 EXHIBIT A Legal Description of Property Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 WEST 49.5 FEET LOT 9 BLOCK 210 Address: 280 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0009-01 Legal Description: CITY OF MUSKEGON REVISED PLAT 1903 LOT 3 BLK 210 Address: 305 AMITY AVE, MUSKEGON, MI 49442 Parcel #: 61- 24-205-210-0003-00 6 Page 77 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Sale of 305 Amity & 280 Allen Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lots at 305 Amity & 280 Allen to Helms Group (Joe Helms). Detailed Summary & Background: Helms Group (Joe Helms) would like to purchase the City-owned buildable lots at 305 Amity & 280 Allen for $6,000 (75% of the True Cash Value of $8,000) plus half of the closing costs, and the fee to register the deed. Helms Group (Joe Helms) will be constructing a duplex and an accessory dwelling unit (ADU) on each property. 280 Allen is adjacent to the current location of the Angell Neighborhood Association (NA) community garden (290 Allen). The Angell NA has given an official letter of support for the development of the lots. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Focus Area/Action Item Addressed: 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: Authorize staff to sell the City-owned vacant lots at 305 Amity & 280 Allen to Helms Group (Joe Helms) . Page 78 of 201 Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Other Division Heads x Communication Legal Review x Page 79 of 201 Page 80 of 201 PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (“Agreement”) is made June 24, 2025 (“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and Helms Group, Joe Helms, 3035 152nd Ave, Holland, MI, 49424, Background A. Developer proposes to purchase and develop two (2) vacant properties owned by City which are located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project Property”). B. City and Developer desire to establish the terms, covenants, and conditions upon which City will sell and Developer will purchase and develop the Project Property. Developer intends to develop on each of the Project Properties one (1) duplex and one (1) accessory dwelling unit (ADU), for a total of two (2) duplexes and two (2) ADUs. (the “Project”). Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Project Property. City agrees to sell to Developer, and Developer agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Project Property, subject to reservations, restrictions, and easements of record. 2. Purchase Price. The total purchase price for the Project Property shall be $6,000.00, which shall be paid in cash or other immediately available funds at Closing (defined below) less the $800 deposit that the Developer has paid to the City of Muskegon. Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be reimbursed all or a portion of the purchase price for the Parcel upon the completion of certain design standards as further described herein. 3. Construction and Development Requirements. a. Construction Dates. The parties acknowledge and agree that Developer shall have a period of Twenty-Four (24) months from the date of Closing to complete the Project (“Construction Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by the parties in writing. b. Construction Details; Purchase Price Reimbursement. Developer’s construction and development of the Project Property, including single-family homes, duplexes, triplexes, and accessory dwelling units, shall be in substantial conformance with its plans and specifications provided to City by Developer or as otherwise agreed upon in writing between City and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a portion of the purchase price for the Project Property upon Developer’s satisfaction of the following design standards for each single-family home, duplex, triplex, and accessory dwelling unit it constructs on the Project Property. If the Project includes an accessory dwelling unit, both the primary dwelling unit (single-family home, duplex, triplex) and the accessory dwelling unit must meet the design standards outlined below to be eligible for reimbursement. Page 81 of 201 Design Standard Purchase Price Reimbursement for Parcel Open front porch of at least 60 sq. ft. 20% Picture or bay window 20% Alley-loaded parcel 20% Shutter or other acceptable window 20% treatments Underground Sprinkling 20% (By way of example only: If Developer completes three of the design standards listed above for the construction at the Parcel located at 310 Allen, Developer would be reimbursed $1,800.00, which is 60% of the $3,000.00 purchase price for this Parcel. If Developer completes all five design standards, Developer would be reimbursed the entire purchase price for this Parcel. If Developer builds a duplex or small multiplex, Developer would be reimbursed 100% of the purchase price for this Parcel.) 4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for Developer’s obligation to commence and complete construction of a duplex and an ADU on each of the Project Properties, the quit claim deed conveying the Project Property to Developer shall contain a right of reversion in all of the Project Property (“City’s Reversionary Right”), which may be exercised by City, in its sole and absolute discretion, if any of the following conditions occur: a. Developer does not commence construction within sixty (60) days after the date of Closing, in which case title to all of the Project Property shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(a), commencing construction means furnishing labor and materials to the Parcel of the Project Property and beginning installation of the approved duplex and/or ADU. b. Developer does not complete construction of the Project Property prior to expiration of the Construction Period, in which case title to any of the Project Property that are not complete by the end of the Construction Period shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b), completing construction means the issuance of an occupancy permit by City for the Project Property. Provided, however, the parties agree to reasonably negotiate an extension of the Construction Period up to a period of six (6) months for the Project Property that have a completed foundation before the expiration of the initial Construction Period. If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire title to the Project Property, as the case may be. To exercise City’s Reversionary Right described herein, City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all reasonable steps to ensure City acquires marketable title to the Project Property, as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without limitation, the execution of appropriate deeds and other documents. Page 82 of 201 In addition, if the Project Property revert to City, City may retain the purchase price for such Project Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the Project Property, improvements made on such Project Property shall become the property of City. In no event shall the Project Property be in a worse condition than upon the date of Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed from City to Developer. 5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Project Property in the amount of the total purchase price for the Project Property and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Project Property at the Closing naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title insurance with respect to the Project Property (the “Title Policy”). City shall be responsible for the cost of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements to the Title Policy that Developer desires. 6. Title Objections. Developer shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of City’s title to the Project Property. If objection to the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections. If Developer does not notify City in writing as to any title or survey objections, then Developer will be deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or unable to remedy the title or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or not objected to by Developer shall be deemed a “Permitted Exception.” 7. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Developer shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 8. Survey. Developer at its own expense may obtain a survey of any or all of the Project Property, and Buyer or its surveyor or other agents may enter any of the Project Property for that purpose prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon Developer's own judgment as to the location, boundaries, and area of the Project Property and improvements thereon without regard to any representations that may have been made by City or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses an encroachment or substantial variation from the presumed land boundaries or area, City shall have the option of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may elect to purchase the Project Property subject to said encroachment or variation. 9. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example Page 83 of 201 but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason, Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no written objection is made by Developer within the stated period, this inspection contingency shall be deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms of this Agreement. 10. Condition of Project Property. City and Developer acknowledge and agree that the Parcel in the Project Property is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value, nature, quality, or condition of any of the Project Property, including without limitation, soil conditions, and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property; (v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have the opportunity to perform inspections of the Project Property pursuant to this Agreement and that Developer is relying solely on Developer’s own investigation of the Project Property and not on any information provided to or to be provided by City (except as specifically provided in this Agreement). If the transaction contemplated herein closes, Developer agrees to accept the respective Project Property acquired by Developer and waive all objections or claims against City arising from or related to such Project Property and any improvements thereon except for a breach of any representations or warranties or covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees that it has determined that the respective Project Property it has acquired and all improvements thereon are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and Developer has accepted such Project Property in their present condition and subject to ordinary wear and tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of the deed. 11. Developer’s Representations and Warranties of Developer. Developer represents, covenants, and warrants the following to be true: a. Authority. Developer has the power and authority to enter into and perform Developer’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Developer and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Developer, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Developer or any of Developer's assets or property, is now or on the Closing Date will be pending or, to the knowledge of Developer, threatened. Page 84 of 201 12. Conditions Precedent. This Agreement and all of the obligations of Developer under this Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: a. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. b. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 13. Default. a. By Developer. In the event Developer fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within ten (10) days after receipt of notice, then Developer may either terminate this Agreement or Developer may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 14. Closing. a. Date of Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than 60 days from the City Commission’s approval of the sale (“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing shall be conducted at such time and location as the parties mutually agree. b. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer and City shall each pay one-half of any closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Property and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 15. Real Estate Commission. Developer and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. Page 85 of 201 16. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five (5) days after sending by first class, registered, or certified mail. Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Samantha Pulos, Code Coordinator 933 Terrace Street Muskegon, MI 49440 To Developer: Helms Group Joe Helms 3035 152nd Ave Holland, MI 49424 Email: helmsj25@yahoo.com Cell: 616-510-5079 17. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. 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. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. Page 86 of 201 h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. This Agreement is executed effective as of the Effective Date set forth above. CITY: DEVELOPER: CITY OF MUSKEGON Helms Group By: _______________________________ By: _______________________________ Name: Ken Johnson Name: Joe Helms Title: Mayor Dated: __________________ Dated: __________________ By: _______________________________ Name: Ann Marie Meisch Title: City Clerk Dated: __________________ Page 87 of 201 Exhibit A The following described premises located in the City of Muskegon, County of Muskegon, State of Michigan, and legally described as follows: Legal Description: CITY OF MUSKEGON REVISED PLAT 1903 LOT 3 BLK 210 Address: 305 AMITY AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0003-00 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 WEST 49.5 FEET LOT 9 BLOCK 210 Address: 280 ALLEN AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-210-0009-01 Price: $3,000.00 Page 88 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Resolution for Housing Tax Exemption at 313 Orchard Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: JEB Group, with Derek Sjaarda acting as builder, is requesting a housing tax exemption for the new construction infill of duplexes and ADU's on 1 lot in the Angell neighborhood. Detailed Summary & Background: Mr. Sjaarda has been working with Development Services Staff and leadership in order to facilitate new construction rental housing in the city of Muskegon. These proposed lots will be utilized for two 2 story duplexes with an accessory dwelling unit behind each for a total of 6 housing units. In this case Sjaarda Homes is acting as the owner's representative and builder for the JEB Group, a small scale family property investment company. They are proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU's are 1 bedroom, 1 bathroom. This resolution will result in the City assessing 10% of the annual rents on the property as a payment in lieu of taxes (PILOT) for a period of 15 years in exchange for the developer complying with MSHDA rent limits. With recent changes to state statute, these properties can benefit the City's scattered site Brownfield TIF program despite being part of the PILOT. This is the same incentive program we approved for Allen Edwin in 2023, but with smaller incremental developers. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Progress toward completion of ongoing economic development projects Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: NA Yes No N/A Page 89 of 201 Recommended Motion: Motion to adopt the Resolution for Housing Tax Exemption for JEB Group, LLC and to authorize the mayor and clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 90 of 201 Resolution Setting Annual Service Fee for the Workforce Housing Development by JEB Group, LLC Whereas, JEB Group, LLC (the “Sponsor”), has applied to the City of Muskegon for a determination that a proposed workforce housing project sponsored by it at 313 Orchard is entitled to the exemption from taxes authorized by Chapter 82 of the City of Muskegon Code of Ordinances; now therefore, be it Resolved, that the proposed workforce housing project is within the class of housing developments entitled to an exemption under Chapter 82, if it meets the following contingencies: a. Sponsor shall provide documentation to the City substantiating ownership of the subject properties. b. Construction of at least 3 units of the proposed workforce housing project shall be commenced within twelve (12) months from the date of the Michigan State Housing Development Authority’s (“MSHDA”) notification of exemption, or this resolution shall be void and of no effect. c. For the life of the this Workforce Housing Resolution, 100% of the dwelling units in the proposed workforce housing project will be restricted to rental units or other housing options that are reasonably affordable to, and occupied by, a household whose total household income is not greater than 120% of the area median income published by the United States Department of Housing and Urban Development. d. The Sponsor shall submit an affidavit to MSHDA in the form required by MSHDA for certification that the workforce housing project is eligible for the workforce housing exemption. e. Upon receipt of notification from MSHDA that the workforce housing project is eligible for a workforce housing exemption, the Sponsor shall file the certified notification of exemption with the City Assessor before November 1 of the year preceding the tax year in which the exemption is to be effective; and, f. Sponsor shall record a restrictive covenant in a form acceptable to the City Attorney. The restrictive covenant shall be recorded in the register of deeds for the county in which the workforce housing project is located and shall comply with the requirements of Chapter 82; and, further be it Resolved, that in lieu of ad valorem property taxes, the Sponsor shall pay an annual service charge equal to ten percent (10%) of the “Annual Shelter Rents” as defined in Section 82-52 for that portion of the workforce housing project occupied for Workforce Housing; and, further be it Resolved, that annually, no later than April 29, the Sponsor shall provide the City Assessor the Sponsor’s budget for Annual Shelter Rent for the current calendar year and a Page 91 of 201 copy of Sponsor’s financial statements for the preceding calendar year, prepared in accordance with generally accepted auditing standards or, if Sponsor is not subject to an audit requirement, Sponsor’s compiled financial statements for the preceding calendar year prepared in accordance with generally accepted accounting principles and certified by Sponsor; and, further be it Resolved, that the tax exempt status granted by this Resolution shall remain in effect for 15 years, unless otherwise terminated pursuant to Chapter 82 or this Resolution; and, further be it Resolved, that all portions of Chapter 82 are hereby incorporated by reference; and, further be it Resolved, that this Resolution may be assigned by the Sponsor only to subsequent owners of the workforce housing project who shall agree to abide to its terms. If not assigned, to and accepted by subsequent owners of the workforce housing project, it shall automatically terminate; and further be it Resolved, that the Mayor and City Clerk execute a contract with the Sponsor providing the tax exemption and acceptance of payments in lieu of taxes as defined within this resolution and its application, such contract subject to approval as to substance by the City Manager and as to form by the City Attorney. YEAS: _______ NAYS: _______ I hereby certify that the above Resolution was adopted by the City Commission of the City of Muskegon at its regular meeting held on ________, in the Commission Chambers, City Hall, 933 Terrace, Muskegon, Michigan. Ann Meisch, City Clerk Page 92 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Workforce Housing Restrictive Covenant, 313 Orchard Duplex/ADU Project Submitted by: Jake Eckholm, Development Department: Economic Development Services Director Brief Summary: JEB Group, with builder Derek Sjaarda, is requesting a housing tax exemption for the new construction infill of a duplex and ADU on 1 lot in the Angell neighborhood. Detailed Summary & Background: Mr. Sjaarda has been working with Development Services Staff and leadership in order to facilitate new construction rental housing in the city of Muskegon. These proposed lots will be utilized for 1 2 story duplex with an accessory dwelling unit behind each for a total of 3 housing units. In this case Sjaarda Homes is acting as the owner's representative and builder for the JEB Group, a small family owned property investment company. They are proposing that all units be subject to the proposed PILOT, which will reserve them for only households under 120% of the Area Median Income (AMI) for Muskegon County. The duplex units are 3 bedroom, 2 bathroom and the ADU is 1 bedroom, 1 bathroom. This restrictive covenant establishes the terms by which the city has agreed to authorize a PILOT as opposed to ad valorem property taxes for these parcels. It is to be attached to an affidavit the developer must submit to MSHDA to prove they have local approval for the project and to their commitment to reserving these units for households within the MSHDA income thresholds. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Retain youth within the city Progress toward completion of ongoing economic development projects Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: NA Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: NA Yes No N/A Page 93 of 201 Recommended Motion: Motion to adopt the Workforce Housing Restrictive Covenant between JEB Group, LLC and the City and to authorize the Mayor and Clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 94 of 201 WORKFORCE HOUSING RESTRICTIVE COVENANT This Workforce Housing Restrictive Covenant (“Restrictive Covenant”) is made by and between the City of Muskegon, Michigan (“Municipality”) and JEB Group, LLC, a Michigan limited liability company, presently of Holland MI 49424 (the “Sponsor”) as of June 24th, 2025. R E C I T A L S: A. Sponsor is the owner of certain real property located in the City of Muskegon, County of Muskegon, State of Michigan, and more particularly described on the attached Exhibit A (the “Property”), which is attached hereto and incorporated by reference into this Agreement. B. Sponsor has offered to provide nine “Workforce housing” units as defined by MCL 125.1415a(10)(d) on the Property (the “Project”) and has applied to Municipality for a workforce housing exemption from ad valorem property taxes under Section 15a of the State Housing Development Authority Act, being Public Act 346 of 1966, as amended (the “Act”). C. In consideration of Sponsor’s offer to undertake the Project, Municipality has agreed to exempt the Property from all ad valorem property taxes imposed by any taxing jurisdiction and to accept in lieu thereof payment of an annual service charge for a period of 15-years as provided by Chapter 82 of the City Code of Ordinances, as amended (the “Ordinance”). D. Upon completion of the Project, the annual service charge paid in lieu of all ad valorem property taxes shall be equal to ten percent (10%) of the annual shelter rents collected from the Project and shall be paid as provided in the Ordinance. E. Sponsor and Municipality agree that the economic feasibility of the Project depends upon the continuing effect of the annual service charge in lieu of all ad valorem taxes approved by Municipality for the 15-year exemption period. F. Accordingly, upon recording with the Muskegon County Register of Deeds, this Restrictive Covenant will restrict use of the Property to Workforce housing for the 15-year exemption period. NOW, THEREFORE, in consideration of Municipality’s acceptance of payment of the annual service charge in lieu of all ad valorem property taxes and Sponsor’s commitment to construct or rehabilitate the Project, Sponsor and Municipality hereby covenant as follows: 1. Recitals. The above recitals are acknowledged as true and correct and are incorporated by reference into this paragraph. 1 Page 95 of 201 2. Definitions. All words and phrases used in this Restrictive Covenant have the same meaning as defined in the Act or the Ordinance. 3. Workforce Housing Covenant. The Project will, upon completion of the proposed construction or rehabilitation, constitute workforce housing for households for persons and families whose household income is not greater than 120% of the area median income, as published by the Michigan State Housing Development Authority (“the Authority) for Muskegon County, adjusted for family size. All of the housing units in the Project will be rented, or available for rental, on a continuous basis to members of the general public throughout the term of this Restrictive Covenant. 4. Term of Exemption. The exemption from ad valorem property taxes approved by Municipality shall remain in effect in accordance with this Restrictive Covenant restricting use of the Project to workforce housing for a period of 15-years, ending on December 31, 2040, or so long as the Project is used as workforce housing, whichever is less. 5. No Violation. Sponsor agrees that it will not knowingly take or permit any action that would result in a violation of the requirements of this Restrictive Covenant or the Ordinance, which is incorporated herein as if a part of this Restrictive Covenant. Further, Sponsor agrees to take any required action, including the amendment of this Restrictive Covenant, as may be necessary, in the determination of the Municipality or of the Authority, to comply with the Ordinance. If Municipality determines that the Project is not in compliance with the requirements of this Restrictive Covenant, and Sponsor, after receiving written notice of the non-compliance from Municipality, does not correct such non-compliance within thirty (30) days, Municipality shall be entitled to take such actions as it deems necessary to enforce the provisions of this Restrictive Covenant. 6. Sponsor to Demonstrate Compliance. Sponsor will provide Municipality with such certifications, reports and other information as are required by Municipality to demonstrate compliance with the Ordinance. Sponsor will provide Municipality and Authority with an annual verification of compliance with this Restrictive Covenant, in a form specified by the Authority. 7. Transfer of Ownership. Sponsor will, prior to a sale or other voluntary transfer of ownership of the Project or any part thereof, notify Municipality in writing, and will enter into any agreements with the purchaser or transferee as may be prescribed by Municipality to ensure such purchaser's or transferee's compliance with this Restrictive Covenant and Michigan law. 8. Enforceability. This Restrictive Covenant is enforceable in any court in the State of Michigan having jurisdiction thereof, by Municipality, and to the extent required by the Ordinance, by any individuals who are tenants of the Project. 9. Covenant Running with the Land; Binding Effect. The foregoing covenant shall constitute and be enforced as a covenant running with the land under Michigan law and shall be binding on all successors or assigns of Sponsor or Municipality and any future owner or operator of the Project for the full 15-year exemption period. 10. Miscellaneous. In the event of any conflict between the terms of this Restrictive Covenant and the requirements of the Ordinance the requirements of the Ordinance shall prevail. This Restrictive Covenant may only be amended or terminated by a writing signed by both Sponsor and Municipality. The invalidity of any clause or provision of this Restrictive Covenant shall not affect the validity of the remaining portions thereof. 2 Page 96 of 201 IN WITNESS WHEREOF, is this Covenant is effective as of December 1st, 2025. [Signature Pages Follow] 3 Page 97 of 201 CITY OF MUSKEGON By: ________________________________________ Its: ________________________________________ STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this day of June 24th, 2025 by Kenneth Johnson, as Mayor of the City of Muskegon, a municipal corporation of the State of Michigan. Notary Public, ________________County, MI My Commission Expires: Acting in _________________ County, MI 4 Page 98 of 201 SPONSOR JEB Group, LLC By: _____________________________________ Its: STATE OF MICHIGAN ) ) ss COUNTY OF MUSKEGON ) The foregoing instrument was acknowledged before me this ____ day of __________, by ______________________, as the manager/authorized member of JEB Group, a Michigan limited liability company, on behalf of said Company. Notary Public, __________County, MI My Commission Expires: Acting in ________________County, MI DRAFTED BY: WHEN RECORDED RETURN TO: 5 Page 99 of 201 EXHIBIT A Legal Description of Property Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1, 17 AND EAST 8 FEET LOT 2 BLK 204 Address: 313 ORCHARD AVE, MUSKEGON, MI 49442 Parcel #: 61- 24-205-204-0001-00 6 Page 100 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Sale of 313 Orchard Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lot at 313 Orchard to JEB Group LLC. Detailed Summary & Background: JEB Group LLC (Emily and Joe Hovinga) and would like to purchase the City-owned buildable lot at 313 Orchard for $3,000 (75% of the True Cash Value of $4,000) plus half of the closing costs, and the fee to register the deed. JEB Group LLC will be constructing one duplex and one ADU (Accessory Dwelling Unit) on the property. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Focus Area/Action Item Addressed: 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: Authorize staff to sell the City-owned vacant lot at 313 Orchard to JEB Group LLC (Emily and Joe Hovinga). Approvals: Guest(s) Invited / Presenting: Immediate Division x No Page 101 of 201 Head Information Technology Other Division Heads x Communication Legal Review x Page 102 of 201 PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (“Agreement”) is made June 24, 2025 (“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and JEB Group LLC, 2703 Meadow Drive, Zeeland, MI 49464 (“Developer”), with reference to the following facts: Background A. Developer proposes to purchase and develop one (1) vacant property owned by City which is located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project Property”). B. City and Developer desire to establish the terms, covenants, and conditions upon which City will sell and Developer will purchase and develop the Project Property. Developer intends to develop on the Project Property, one (1) duplex and one (1) ADU (Accessory Dwelling Unit). (the “Project”). Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Project Property. City agrees to sell to Developer, and Developer agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Project Property, subject to reservations, restrictions, and easements of record. 2. Purchase Price. The total purchase price for the Project Property shall be $3,000.00, which shall be paid in cash or other immediately available funds at Closing (defined below) less the $400 deposit that the Developer has paid to the City of Muskegon. Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be reimbursed all or a portion of the purchase price for the Parcel upon the completion of certain design standards as further described herein. 3. Construction and Development Requirements. a. Construction Dates. The parties acknowledge and agree that Developer shall have a period of eighteen (18) months from the date of Closing to complete the Project (“Construction Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by the parties in writing. b. Construction Details; Purchase Price Reimbursement. Developer’s construction and development of the Project Property, including single-family homes, duplexes, triplexes, and accessory dwelling units, shall be in substantial conformance with its plans and specifications provided to City by Developer or as otherwise agreed upon in writing between City and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a portion of the purchase price for the Project Property upon Developer’s satisfaction of the following design standards for each single-family home, duplex, triplex, and accessory dwelling unit it constructs on the Project Property. If the Project includes an accessory dwelling unit, both the primary dwelling unit (single-family home, duplex, triplex) and the accessory dwelling unit must meet the design standards outlined below to be eligible for reimbursement. Page 103 of 201 Design Standard Purchase Price Reimbursement for Parcel Open front porch of at least 60 sq. ft. 20% Picture or bay window 20% Alley-loaded parcel 20% Shutter or other acceptable window 20% treatments Underground Sprinkling 20% (By way of example only: If Developer builds a duplex or small multiplex, Developer would be reimbursed 100% of the purchase price for this Parcel.) 4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for Developer’s obligation to commence and complete construction of a duplex and an ADU on the Project Property, the quit claim deed conveying the Project Property to Developer shall contain a right of reversion in all of the Project Property (“City’s Reversionary Right”), which may be exercised by City, in its sole and absolute discretion, if any of the following conditions occur: a. Developer does not commence construction within sixty (60) days after the date of Closing, in which case title to all of the Project Property shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(a), commencing construction means furnishing labor and materials to the Parcel of the Project Property and beginning installation of the approved duplex and an ADU. b. Developer does not complete construction of the Project Property prior to expiration of the Construction Period, in which case title to any of the Project Property that are not complete by the end of the Construction Period shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b), completing construction means the issuance of an occupancy permit by City for the Project Property. Provided, however, the parties agree to reasonably negotiate an extension of the Construction Period up to a period of six (6) months for the Project Property that have a completed foundation before the expiration of the initial Construction Period. If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire title to the Project Property, as the case may be. To exercise City’s Reversionary Right described herein, City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all reasonable steps to ensure City acquires marketable title to the Project Property, as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without limitation, the execution of appropriate deeds and other documents. In addition, if the Project Property revert to City, City may retain the purchase price for such Project Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the Project Property, improvements made on such Project Property shall become the property of City. In no event shall the Project Property be in a worse condition than upon the date of Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed from City to Developer. Page 104 of 201 5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Project Property in the amount of the total purchase price for the Project Property and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Project Property at the Closing naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title insurance with respect to the Project Property (the “Title Policy”). City shall be responsible for the cost of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements to the Title Policy that Developer desires. 6. Title Objections. Developer shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of City’s title to the Project Property. If objection to the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections. If Developer does not notify City in writing as to any title or survey objections, then Developer will be deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or unable to remedy the title or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or not objected to by Developer shall be deemed a “Permitted Exception.” 7. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Developer shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 8. Survey. Developer at its own expense may obtain a survey of any or all of the Project Property, and Buyer or its surveyor or other agents may enter any of the Project Property for that purpose prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon Developer's own judgment as to the location, boundaries, and area of the Project Property and improvements thereon without regard to any representations that may have been made by City or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses an encroachment or substantial variation from the presumed land boundaries or area, City shall have the option of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may elect to purchase the Project Property subject to said encroachment or variation. 9. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason, Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no written objection is made by Developer within the stated period, this inspection contingency shall be Page 105 of 201 deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms of this Agreement. 10. Condition of Project Property. City and Developer acknowledge and agree that the Parcel in the Project Property is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value, nature, quality, or condition of any of the Project Property, including without limitation, soil conditions, and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property; (v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have the opportunity to perform inspections of the Project Property pursuant to this Agreement and that Developer is relying solely on Developer’s own investigation of the Project Property and not on any information provided to or to be provided by City (except as specifically provided in this Agreement). If the transaction contemplated herein closes, Developer agrees to accept the respective Project Property acquired by Developer and waive all objections or claims against City arising from or related to such Project Property and any improvements thereon except for a breach of any representations or warranties or covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees that it has determined that the respective Project Property it has acquired and all improvements thereon are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and Developer has accepted such Project Property in their present condition and subject to ordinary wear and tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of the deed. 11. Developer’s Representations and Warranties of Developer. Developer represents, covenants, and warrants the following to be true: a. Authority. Developer has the power and authority to enter into and perform Developer’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Developer and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Developer, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Developer or any of Developer's assets or property, is now or on the Closing Date will be pending or, to the knowledge of Developer, threatened. 12. Conditions Precedent. This Agreement and all of the obligations of Developer under this Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: a. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. Page 106 of 201 b. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 13. Default. a. By Developer. In the event Developer fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within ten (10) days after receipt of notice, then Developer may either terminate this Agreement or Developer may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 14. Closing. a. Date of Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than 60 days from the City Commission’s approval of the sale (“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing shall be conducted at such time and location as the parties mutually agree. b. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer and City shall each pay one-half of any closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Property and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 15. Real Estate Commission. Developer and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. 16. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five (5) days after sending by first class, registered, or certified mail. Page 107 of 201 Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Samantha Pulos, Code Coordinator 933 Terrace Street Muskegon, MI 49440 w/ copy to: Parmenter Law Attn.: John C. Schrier 601 Terrace Street, Suite 200 Muskegon, MI 49440 Email: john@parmenterlaw.com To Developer: JEB Group LLC 2703 Meadow Drive Zeeland, MI 49464 Email: ehovinga@gmail.com Cell: 616-886-8319 17. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. 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. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and Page 108 of 201 enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. This Agreement is executed effective as of the Effective Date set forth above. CITY: DEVELOPER: CITY OF MUSKEGON JEB Group LLC By: _______________________________ By: _______________________________ Name: Ken Johnson Name: ____________ Joseph A. Hovinga Title: Mayor Dated: __________________ Dated: __________________ By: _______________________________ Name: Ann Marie Meisch Title: City Clerk Dated: __________________ Page 109 of 201 Exhibit A The following described premises located in the City of Muskegon, County of Muskegon, State of Michigan, and legally described as follows: Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1, 17 AND EAST 8 FEET LOT 2 BLK 204 Address: 313 ORCHARD AVE, MUSKEGON, MI 49442 Parcel #: 61- 24-205-204-0001-00 Price: $3,000.00 Page 110 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Sale of 420 Oak, 452 Oak, and 451 Erickson. Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lots at 420 Oak, 452 Oak, and 451 Erickson to RSW Holdings LLC and Barrowstone Capital LLC. Detailed Summary & Background: RSW Holdings LLC and Barrowstone Capital LLC would like to purchase the City-owned buildable lots at 420 Oak, 452 Oak, and 451 Erickson for $9,000 (75% of the True Cash Value of $12,000) plus half of the closing costs, and the fee to register the deed. RSW Holdings LLC and Barrowstone Capital LLC will be constructing a duplex and an ADU (Accessory Dwelling Unit) on 420 and 452 Oak and a triplex on 451 Erickson, for a total of two (2) duplexes, two (2) ADUs, and one (1) triplex. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Focus Area/Action Item Addressed: 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: Authorize staff to sell the City-owned vacant lots at 420 Oak, 452 Oak, and 451 Erickson to RSW Holdings LLC and Barrowstone Capital LLC. Approvals: Guest(s) Invited / Presenting: Page 111 of 201 Immediate Division x Head No Information Technology Other Division Heads x Communication Legal Review x Page 112 of 201 PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (“Agreement”) is made June 24, 2025 (“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and RSW Holdings LLC and Barrowstone Capital LLC, 691 Ottawa Beach Road, Holland, MI, 49423. (“Developer”), with reference to the following facts: Background A. Developer proposes to purchase and develop three (3) vacant properties owned by City which is located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project Property”). B. City and Developer desire to establish the terms, covenants, and conditions upon which City will sell and Developer will purchase and develop the Project Property. Developer intends to develop on the Project Property two (2) duplexes, each with an accessory dwelling unit (ADU), and one triplex, for a total of two (2) duplexes, two (2) ADUs, and one (1) triplex. (the “Project”). Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Project Property. City agrees to sell to Developer, and Developer agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Project Property, subject to reservations, restrictions, and easements of record. 2. Purchase Price. The total purchase price for the Project Property shall be $9,000.00, which shall be paid in cash or other immediately available funds at Closing (defined below) less the $500 deposit that the Developer has paid to the City of Muskegon. Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be reimbursed all or a portion of the purchase price for the Parcel upon the completion of certain design standards as further described herein. 3. Construction and Development Requirements. a. Construction Dates. The parties acknowledge and agree that Developer shall have a period of twenty-four (24) months from the date of Closing to complete the Project (“Construction Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by the parties in writing. b. Construction Details; Purchase Price Reimbursement. Developer’s construction and development of the Project Property, including single-family homes, duplexes, triplexes, and accessory dwelling units, shall be in substantial conformance with its plans and specifications provided to City by Developer or as otherwise agreed upon in writing between City and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a portion of the purchase price for the Project Property upon Developer’s satisfaction of the following design standards for each single-family home, duplex, triplex, and accessory dwelling unit it constructs on the Project Property. If the Project includes an accessory dwelling unit, both the primary dwelling unit (single-family home, duplex, triplex) and the accessory dwelling unit must meet the design standards outlined below to be eligible for reimbursement. Page 113 of 201 Design Standard Purchase Price Reimbursement for Parcel Open front porch of at least 60 sq. ft. 20% Picture or bay window 20% Alley-loaded parcel 20% Shutter or other acceptable window 20% treatments Underground Sprinkling 20% (By way of example only: If Developer builds a duplex or small multiplex, Developer would be reimbursed 100% of the purchase price for this Parcel.) 4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for Developer’s obligation to commence and complete construction of a duplex plus an ADU on both 420 and 452 Oak and a triplex on 451 Erickson, the quit claim deed conveying the Project Property to Developer shall contain a right of reversion in all of the Project Property (“City’s Reversionary Right”), which may be exercised by City, in its sole and absolute discretion, if any of the following conditions occur: a. Developer does not commence construction within sixty (60) days after the date of Closing, in which case title to all of the Project Property shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(a), commencing construction means furnishing labor and materials to the Parcel of the Project Property and beginning installation of the approved duplex plus an ADU on both 420 and 452 Oak and a triplex on 451 Erickson. b. Developer does not complete construction of the Project Property prior to expiration of the Construction Period, in which case title to any of the Project Property that are not complete by the end of the Construction Period shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b), completing construction means the issuance of an occupancy permit by City for the Project Property. Provided, however, the parties agree to reasonably negotiate an extension of the Construction Period up to a period of six (6) months for the Project Property that have a completed foundation before the expiration of the initial Construction Period. If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire title to the Project Property, as the case may be. To exercise City’s Reversionary Right described herein, City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all reasonable steps to ensure City acquires marketable title to the Project Property, as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without limitation, the execution of appropriate deeds and other documents. In addition, if the Project Property revert to City, City may retain the purchase price for such Project Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the Project Property, improvements made on such Project Property shall become the property of City. In no event shall the Project Property be in a worse condition than upon the date of Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed from City to Developer. Page 114 of 201 5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Project Property in the amount of the total purchase price for the Project Property and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Project Property at the Closing naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title insurance with respect to the Project Property (the “Title Policy”). City shall be responsible for the cost of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements to the Title Policy that Developer desires. 6. Title Objections. Developer shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of City’s title to the Project Property. If objection to the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections. If Developer does not notify City in writing as to any title or survey objections, then Developer will be deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or unable to remedy the title or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or not objected to by Developer shall be deemed a “Permitted Exception.” 7. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Developer shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 8. Survey. Developer at its own expense may obtain a survey of any or all of the Project Property, and Buyer or its surveyor or other agents may enter any of the Project Property for that purpose prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon Developer's own judgment as to the location, boundaries, and area of the Project Property and improvements thereon without regard to any representations that may have been made by City or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses an encroachment or substantial variation from the presumed land boundaries or area, City shall have the option of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may elect to purchase the Project Property subject to said encroachment or variation. 9. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason, Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no Page 115 of 201 written objection is made by Developer within the stated period, this inspection contingency shall be deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms of this Agreement. 10. Condition of Project Property. City and Developer acknowledge and agree that the Parcel in the Project Property is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value, nature, quality, or condition of any of the Project Property, including without limitation, soil conditions, and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property; (v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have the opportunity to perform inspections of the Project Property pursuant to this Agreement and that Developer is relying solely on Developer’s own investigation of the Project Property and not on any information provided to or to be provided by City (except as specifically provided in this Agreement). If the transaction contemplated herein closes, Developer agrees to accept the respective Project Property acquired by Developer and waive all objections or claims against City arising from or related to such Project Property and any improvements thereon except for a breach of any representations or warranties or covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees that it has determined that the respective Project Property it has acquired and all improvements thereon are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and Developer has accepted such Project Property in their present condition and subject to ordinary wear and tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of the deed. 11. Developer’s Representations and Warranties of Developer. Developer represents, covenants, and warrants the following to be true: a. Authority. Developer has the power and authority to enter into and perform Developer’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Developer and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Developer, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Developer or any of Developer's assets or property, is now or on the Closing Date will be pending or, to the knowledge of Developer, threatened. 12. Conditions Precedent. This Agreement and all of the obligations of Developer under this Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: Page 116 of 201 a. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. b. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 13. Default. a. By Developer. In the event Developer fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within ten (10) days after receipt of notice, then Developer may either terminate this Agreement or Developer may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 14. Closing. a. Date of Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than 60 days from the City Commission’s approval of the sale (“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing shall be conducted at such time and location as the parties mutually agree. b. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer and City shall each pay one-half of any closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Property and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 15. Real Estate Commission. Developer and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. 16. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. Page 117 of 201 The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five (5) days after sending by first class, registered, or certified mail. Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Samantha Pulos, Code Coordinator 933 Terrace Street Muskegon, MI 49440 w/ copy to: Parmenter Law Attn.: John C. Schrier 601 Terrace Street, Suite 200 Muskegon, MI 49440 Email: john@parmenterlaw.com To Developer: RSW Holdings LLC & Barrowstone Capital LLC Attn.: Ron Webb 691 Ottawa Beach Road Holland MI, 49423 Email: ron.webb@cbgreatlakes.com Cell: 616-291-2782 17. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. 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. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. Page 118 of 201 h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. This Agreement is executed effective as of the Effective Date set forth above. CITY: DEVELOPER: CITY OF MUSKEGON RSW Holdings LLC By: _______________________________ Name: Ron Webb By: _______________________________ Dated: __________________ Name: Ken Johnson Title: Mayor Dated: __________________ Barrowstone Capital LLC By: _______________________________ Name: ___________________ By: _______________________________ Dated: __________________ Name: Ann Marie Meisch Title: City Clerk Dated: __________________ Page 119 of 201 Exhibit A The following described premises located in the City of Muskegon, County of Muskegon, State of Michigan, and legally described as follows: Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 8 BLOCK 44 Address: 420 OAK AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-044-0008-00 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 12 EXCEPT WEST 1 FOOT BLOCK 44 Address: 452 OAK AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-044-0012-00 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 11 & 13 BLOCK 148 Address: 451 ERICKSON, MUSKEGON, MI 49442 Parcel #: 61-24-205-148-0011-01 Price: $3,000.00 Page 120 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Sale of 447 Oak Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lot at 447 Oak to Nicole Ledeboer. Detailed Summary & Background: Nicole Ledeboer would like to purchase the City-owned buildable lot at 447 Oak for $3,000 (75% of the True Cash Value of $4,000) plus half of the closing costs, and the fee to register the deed. Nicole Ledeboer will be constructing one duplex and one ADU (Accessory Dwelling Unit) on the property. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Focus Area/Action Item Addressed: 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: Authorize staff to sell the City-owned vacant lot at 447 Oak to Nicole Ledeboer. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Page 121 of 201 Technology Other Division Heads x Communication Legal Review x Page 122 of 201 PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (“Agreement”) is made June 24, 2025 (“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and Nicole Ledeboer, 3025 Garrison Rd, Altus, OK 7351 (“Developer”), with reference to the following facts: Background A. Developer proposes to purchase and develop one (1) vacant properties owned by City which is located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project Property”). B. City and Developer desire to establish the terms, covenants, and conditions upon which City will sell and Developer will purchase and develop the Project Property. Developer intends to develop on the Project Property, one (1) duplex and one (1) ADU (Accessory Dwelling Unit). (the “Project”). Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Project Property. City agrees to sell to Developer, and Developer agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Project Property, subject to reservations, restrictions, and easements of record. 2. Purchase Price. The total purchase price for the Project Property shall be $3,000.00, which shall be paid in cash or other immediately available funds at Closing (defined below) less the $400 deposit that the Developer has paid to the City of Muskegon. Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be reimbursed all or a portion of the purchase price for the Parcel upon the completion of certain design standards as further described herein. 3. Construction and Development Requirements. a. Construction Dates. The parties acknowledge and agree that Developer shall have a period of eighteen (18) months from the date of Closing to complete the Project (“Construction Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by the parties in writing. b. Construction Details; Purchase Price Reimbursement. Developer’s construction and development of the Project Property, including single-family homes, duplexes, triplexes, and accessory dwelling units, shall be in substantial conformance with its plans and specifications provided to City by Developer or as otherwise agreed upon in writing between City and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a portion of the purchase price for the Project Property upon Developer’s satisfaction of the following design standards for each single-family home, duplex, triplex, and accessory dwelling unit it constructs on the Project Property. If the Project includes an accessory dwelling unit, both the primary dwelling unit (single-family home, duplex, triplex) and the accessory dwelling unit must meet the design standards outlined below to be eligible for reimbursement. Page 123 of 201 Design Standard Purchase Price Reimbursement for Parcel Open front porch of at least 60 sq. ft. 20% Picture or bay window 20% Alley-loaded parcel 20% Shutter or other acceptable window 20% treatments Underground Sprinkling 20% (By way of example only: If Developer builds a duplex or small multiplex, Developer would be reimbursed 100% of the purchase price for this Parcel.) 4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for Developer’s obligation to commence and complete construction of a duplex and an ADU on the Project Property, the quit claim deed conveying the Project Property to Developer shall contain a right of reversion in all of the Project Property (“City’s Reversionary Right”), which may be exercised by City, in its sole and absolute discretion, if any of the following conditions occur: a. Developer does not commence construction within sixty (60) days after the date of Closing, in which case title to all of the Project Property shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(a), commencing construction means furnishing labor and materials to the Parcel of the Project Property and beginning installation of the approved duplex and an ADU. b. Developer does not complete construction of the Project Property prior to expiration of the Construction Period, in which case title to any of the Project Property that are not complete by the end of the Construction Period shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b), completing construction means the issuance of an occupancy permit by City for the Project Property. Provided, however, the parties agree to reasonably negotiate an extension of the Construction Period up to a period of six (6) months for the Project Property that have a completed foundation before the expiration of the initial Construction Period. If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire title to the Project Property, as the case may be. To exercise City’s Reversionary Right described herein, City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all reasonable steps to ensure City acquires marketable title to the Project Property, as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without limitation, the execution of appropriate deeds and other documents. In addition, if the Project Property revert to City, City may retain the purchase price for such Project Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the Project Property, improvements made on such Project Property shall become the property of City. In no event shall the Project Property be in a worse condition than upon the date of Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed from City to Developer. Page 124 of 201 5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Project Property in the amount of the total purchase price for the Project Property and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Project Property at the Closing naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title insurance with respect to the Project Property (the “Title Policy”). City shall be responsible for the cost of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements to the Title Policy that Developer desires. 6. Title Objections. Developer shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of City’s title to the Project Property. If objection to the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections. If Developer does not notify City in writing as to any title or survey objections, then Developer will be deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or unable to remedy the title or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or not objected to by Developer shall be deemed a “Permitted Exception.” 7. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Developer shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 8. Survey. Developer at its own expense may obtain a survey of any or all of the Project Property, and Buyer or its surveyor or other agents may enter any of the Project Property for that purpose prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon Developer's own judgment as to the location, boundaries, and area of the Project Property and improvements thereon without regard to any representations that may have been made by City or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses an encroachment or substantial variation from the presumed land boundaries or area, City shall have the option of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may elect to purchase the Project Property subject to said encroachment or variation. 9. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason, Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no written objection is made by Developer within the stated period, this inspection contingency shall be Page 125 of 201 deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms of this Agreement. 10. Condition of Project Property. City and Developer acknowledge and agree that the Parcel in the Project Property is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value, nature, quality, or condition of any of the Project Property, including without limitation, soil conditions, and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property; (v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have the opportunity to perform inspections of the Project Property pursuant to this Agreement and that Developer is relying solely on Developer’s own investigation of the Project Property and not on any information provided to or to be provided by City (except as specifically provided in this Agreement). If the transaction contemplated herein closes, Developer agrees to accept the respective Project Property acquired by Developer and waive all objections or claims against City arising from or related to such Project Property and any improvements thereon except for a breach of any representations or warranties or covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees that it has determined that the respective Project Property it has acquired and all improvements thereon are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and Developer has accepted such Project Property in their present condition and subject to ordinary wear and tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of the deed. 11. Developer’s Representations and Warranties of Developer. Developer represents, covenants, and warrants the following to be true: a. Authority. Developer has the power and authority to enter into and perform Developer’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Developer and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Developer, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Developer or any of Developer's assets or property, is now or on the Closing Date will be pending or, to the knowledge of Developer, threatened. 12. Conditions Precedent. This Agreement and all of the obligations of Developer under this Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: a. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. Page 126 of 201 b. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 13. Default. a. By Developer. In the event Developer fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within ten (10) days after receipt of notice, then Developer may either terminate this Agreement or Developer may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 14. Closing. a. Date of Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than 60 days from the City Commission’s approval of the sale (“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing shall be conducted at such time and location as the parties mutually agree. b. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer and City shall each pay one-half of any closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Property and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 15. Real Estate Commission. Developer and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. 16. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five (5) days after sending by first class, registered, or certified mail. Page 127 of 201 Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Samantha Pulos, Code Coordinator 933 Terrace Street Muskegon, MI 49440 w/ copy to: Parmenter Law Attn.: John C. Schrier 601 Terrace Street, Suite 200 Muskegon, MI 49440 Email: john@parmenterlaw.com To Developer: Nicole Ledeboer 3025 Garrison Rd Altus, OK 73521 Email: JNLedeboer@pm.me Cell: 719-722-4123 17. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. 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. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and Page 128 of 201 enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. This Agreement is executed effective as of the Effective Date set forth above. CITY: DEVELOPER: CITY OF MUSKEGON Nicole Ledeboer By: _______________________________ By: _______________________________ Name: Nicole Ledeboer Name: Ken Johnson Dated: __________________ 12 June 2025 Title: Mayor Dated: __________________ By: _______________________________ Name: Ann Marie Meisch Title: City Clerk Dated: __________________ Page 129 of 201 Exhibit A The following described premises located in the City of Muskegon, County of Muskegon, State of Michigan, and legally described as follows: Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 5 & 6 BK 45 EXC S 12 FT FOR ALLEY Address: 447 OAK AVE, MUSKEGON, MI 49442 Parcel #: 61- 24-205-045-0005-00 Price: $3,000.00 Page 130 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Fire Records and Compliance Program Submitted by: Timothy Kozal, Public Safety Department: Public Safety Director Brief Summary: The Fire Department is seeking approval to enter into a 3-year contract with Brycer L.P. to have "The Compliance Engine" which will better help with records management and compliance with fire alarm and suppression systems. Detailed Summary & Background: The Fire Department is seeking approval to enter into a 3-year contract with Brycer L.P. to have "The Compliance Engine" which will better help with records management and compliance with fire alarm and suppression systems. This is a no-cost contract. The Compliance Engine collects, tracks and follows up on 3rd party inspection report on fire alarm and fire suppression systems to better support compliance of our buildings in the City of Muskegon. Goal/Focus Area/Action Item Addressed: Key Focus Areas: 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: I recommend to enter into a 3-year contract with Brycer L.P. to receive The Compliance Engine system for the Fire Department. Approvals: Guest(s) Invited / Presenting: Immediate Division Head No Information Page 131 of 201 Technology Other Division Heads Communication Legal Review Page 132 of 201 Helpful FAQs for Presenting to Fire Chief and Public Officials What do they want to know about The Compliance Engine (TCE)? Based on 950+ successful adoptions of The Compliance Engine, the following six questions are most asked by Fire Chiefs and Public Officials (Mayor or City or Village Manager) when discussing adoption of The Compliance Engine: 1) What is the cost of The Compliance Engine? There is zero cost for any aspect of using The Compliance Engine (setup, training, ongoing service) for either the Department or the municipality. In fact, there is savings from its usage in terms of administrative time saved and reductions in false alarm activity from fewer system malfunctions. 2) How does The Compliance Engine get paid for? Contractors submitting reports pay a fee of $20. Brycer does not charge per riser and/or flow switch. There is no upfront or additional cost. Contractors earn money due to the increased inspection and maintenance activity provided by TCE and code compliance. Building owners are not required to perform any additional inspections or maintenance that is not already required by code. 3) Isn’t this an added cost to the contractors? No. Contractors receive several benefits from utilizing The Compliance Engine (TCE) – the primary being it drives revenues for them and creates a larger overall market opportunity. From Brycer’s experience and conversation with contractors currently using The Compliance Engine, the potential revenue increase from inspection and maintenance revenue far outweighs the filing fee paid. Using Brycer’s notification feature (renewal, overdue, and deficiency), contractors have more of an assurance that inspections and maintenance work will be scheduled and performed consistently per the code. Contractors receive a 9-1 return on their investment. TCE has over 15,000 contractor’s users nationwide already participating while also earning partnerships with 800+ AHJ’s nationwide. The Compliance Engine is a win-win for all parties involved: our Department, contractors, premise owners, and the community. 4) Isn’t this an added cost on the properties? No, the fee is charged to the contractors that inspect, test and maintain fire and life safety systems. As The Compliance Engine has proven, contractors have witnessed a return on this minimal investment, and jurisdictions are realizing a safer community due to compliance. Brycer’s education of the contractor marketplace includes the net benefits of use of The Compliance Engine, which assists in preventing a pass through of costs. Additionally, use of The Compliance Engine will benefit municipalities in reducing false alarm activity, which will positively impact properties on their taxes and their property insurance premiums/policies. It is additional information which assist with ISO reviews and ratings as well. 5) What is needed by us (the AHJ) to have reports submitted … an ordinance, internal policy, etc.? To save time and cost by streamlining our reporting process, we need to make it a requirement that reports be submitted through The Compliance Engine. Brycer does not dictate how we establish such a requirement. In the 2015 IFC, the AHJ can use code section 107.3 Recordkeeping. This section states the “fire code official can prescribe the forma and format of such recordkeeping”. What Brycer then becomes, is that form and format of 1 Page 133 of 201 such recordkeeping. In the 2018 IFC, the code section we use is 108.3 Recordkeeping. Some of Brycer’s clients have made submission mandatory via an internal policy (i.e. lock box), department resolutions and/or local ordinances. In the 2021 IFC, code section 109.3 Recordkeeping has same language as 15’ and 18’ IFC language. With a mandatory, streamlined process that still allows contractors to use their own inspection forms, we gain better visibility into which buildings are compliant and which ones are not. This will allow us to immediately focus on the non-compliant buildings. If the submitted inspection data is not streamlined into and managed in one database, it will become extremely difficult for us to ensure the quality of code compliance across the life safety systems within our premises and jurisdiction. Accurate, real-time knowledge of code compliance creates fewer false alarms, greater confidence of response in the event of an incident, and improved life safety for our first responders, property owners, and the community as a whole. 6) What are the next steps to implement The Compliance Engine [after the Chief and/or Mayor and/or Village Manager provide buy-in]? • Define how we will require submission of all reports via The Compliance Engine and obtain legal review if necessary. Typically, the most delays occur when involving any type of legal review, so it is best to get started as soon as possible. Note: Brycer has examples of currently enacted ordinance language that it can share. • Brycer will take an extraction of our premise data from our records management system (such as Firehouse or Image Trend]. This is a very quick process (15-20 minutes) and is done seamlessly. If we don’t have a records management system, Brycer can take an excel file containing premise information and upload that data into The Compliance Engine. Brycer’s product development and customer service teams with work with us Bureau to ensure the data is accurate and clean, to ensure reporting efficiency once the system goes live. • Review, approval, and sign-off of the Brycer Service Level Agreement, which specifies our access to data within The Compliance Engine, as well as the terms and conditions of service. Brycer has found it most successful when this Agreement is provided to our attorneys for the Fire Department as soon as possible, as they may have certain vendor addendums that may need to be added. • Review and approval (or edit) of the template notifications to be sent out via The Compliance Engine. The notifications are the renewal, overdue and deficiency notification. • Review and approval (or edit) of the letter / email to be sent to contractors informing them of the Department’s implementation of The Compliance Engine and the passing of the ordinance. Brycer will send this letter/email on our letterhead to all contractors operating within our jurisdiction. • Brycer will schedule an extensive training session for any users of The Compliance Engine, prior to going live. 2 Page 134 of 201 The Compliance Engine (TCE) SERVICES • SaaS, web-based service. • Built to ensure safety for firefighters, taxpayers, tourists, and community. • Collects, tracks, and follows up on the 3rd party inspection reports on fire protection systems from 3rd party contractors. • Drives 100% code compliance. • Reduces and automates administrative tasks. • Reduces false alarm activity and helps achieve better ISO ratings. • Hard & soft copy notifications including follow up phone calls. • Provides data build processes & detailed analytics. • 3rd party inspection companies pay a fee when they upload a report. Renewal Notice (1): TCE automatically sends out a notice 37 days before the fire protection system's due date. This letter goes to the property. Overdue Notices (2): First Notice: TCE automatically sends out a notice at 30 days past due. This goes to the property. Second Notice: TCE automatically sends out a notice at 60 days past due. This goes to the building owner. Deficiency Notice (3): First Notice: TCE automatically sends out a notice within 24hrs of the AHJ reviewing the report. Second Notice: TCE automatically sends out an additional notice at 45 days outstanding. Third Notice: TCE automatically sends out a final notice at 120 days outstanding. Phone Calls (2-4): Phone Calls: In addition to the notices, TCE begins making phone calls on OVERDUE and DEFICIENT systems/properties at 60 days outstanding. Please note you can turn on or turn off the phone calls. Please note: You have customization on the verbiage on these letters and the days/frequency we process them based off of the test dates. Page 135 of 201 BRYCER, L.P. 4355 Weaver Parkway Suite 230 Warrenville, IL 60555 April 18th, 2025 Muskegon Fire Department 770 Terrace St. Muskegon, MI 49440 Re: “The Compliance Engine” Dear Muskegon Fire Department: We look forward to providing you with “The Compliance Engine” (the “Solution”). This proposal letter provides the basic terms by which Brycer, L.P. (“Brycer”) will provide you, Muskegon Fire Department (“Client”), with the Solution. The use of the Solution and all matters between Brycer and Client will be subject to the standard “Terms and Conditions” attached to this proposal as Exhibit A. The basic terms are as follows: 1. Term: Brycer will provide Client with the Solution for three years, commencing July 1, 2025 (the “Initial Term”). Thereafter, the Term shall automatically renew for successive three-year periods unless terminated by Brycer or Client in writing at least 90 days prior to the expiration of the then current Term (each, a “Renewal Term” and together with the Initial Term, the “Term”). Following the expiration or termination of the Term (as provided in the Terms and Conditions), Client shall stop using the Solution; provided, however, Brycer shall make available, and Client shall have the right to download, Client’s data from the Solution for a period of 60 days after the expiration or termination of the Term. Client shall have the right to terminate this agreement upon giving 90 days written notice to Brycer. 2. Fees: Client shall not pay any fees for use of the Solution. Brycer will collect all fees due and payable by third party inspectors in connection with activities relating to the Solution. 3. Brycer Responsibilities: During the Term, Brycer shall be responsible for the following in connection with Client’s use of the Solution: • Availability. Brycer shall make the Solution available to Client as set forth on Exhibit B. The maintenance schedule and minimum service levels for the Solution are set forth on Exhibit B. • Service Level. Brycer shall provide commercially reasonable levels of customer service with respect to the Solution to all third parties who transact business with Client and access the Solution. • Backup. Brycer shall backup the database used in connection with the Solution to a separate server located within the same web hosting firm which the Solution is being hosted on a real time basis. Upon request by Client (which can be no more than once a month) or made prior to or within 60 days after the effective date of termination of the Term, Brycer will make available to Client a complete and secure (i.e. encrypted and appropriately authenticated) download file of Client data in XML format including all schema and attachments in their native format. Brycer shall maintain appropriate administrative, physical and technical safeguards for protection of the security, confidentiality and 2237531/5/13399.000 Page 136 of 201 integrity of Client data. Brycer shall not (a) modify Client data or (b) disclose Client data except as required by law. • Retention of Information. Brycer will maintain all information entered into the database by third party inspectors for at least five years from the time such information is entered into the database. • Notices. Brycer will be responsible for generating and delivering the following notices to third parties in connection with the Solution: (a) reminders of upcoming inspections that are due; (b) notices that an inspection is past due; and (c) notices of completed inspection reports which contain one or more deficiencies. • Call Center Phone calls by Brycer on behalf of the Client to the property for EACH life-safety system overdue for service based on dates automatically tracked within the TCE database. Brycer is not an agent of the Client and all scripts for the overdue calls will be approved by the Client. • Updates and Enhancements. In the event Brycer releases any updates, corrections, or enhancements to the Solution during the Term, Brycer shall promptly provide such updates or corrections to Client free of any charge or fee. 4. Client Responsibilities: During the Term, Client shall be responsible for the following in connection with Client’s use of the Solution: • Operating System. Client shall be solely responsible for providing a proper operating environment, including computer hardware or other equipment and software, for any portion of the Solution installed on the Client’s equipment (the “Client Access Software”) and for the installation of network connections to the Internet. In addition to any other Client Access Software requirements, Client must use version Edge, Firefox version 76, Chrome 60 or Safari (or more recent versions), in addition to having a .pdf reader installed on machines to view attachments. • Training. Client shall allow Brycer at Client’s facilities to train all applicable personnel of Client on the use of the Solution. • Information. Client shall promptly provide Brycer with all appropriate information necessary for Brycer to create the database for the Solution, including without limitation: (a) all commercial building addresses within [Muskegon Fire Department] for Brycer’s initial upload; and (b) quarterly updates to in a format acceptable to Brycer in its discretion. • Enforcement. Client shall take all actions necessary to require (e.g. resolution, ordinance, fire policy, code amendment) the use of the Solution by third party inspection companies. • Reports. Client will require all compliant and deficient test results to be submitted. 5. Ownership of Data. Client owns all the data provided by Client and received from third party contractors for Client. Brycer shall maintain appropriate administrative, physical and technical safeguards for protection of the security, confidentiality and integrity of Client’s data. 2237531/5/13399.000 Page 137 of 201 Please acknowledge your acceptance of this proposal and our standard Terms and Conditions by counter-signing this proposal below. We look forward to a long-term and mutually beneficial relationship with you. Brycer, L.P. By: Its: Acknowledged and Agreed to this ___ day of ___________, 20____: [Muskegon Fire Department] By: Its: 2237531/5/13399.000 Page 138 of 201 Exhibit A Terms and Conditions Any capitalized terms not defined in these Terms and Conditions shall have the meaning assigned to it in that certain Letter Agreement attached hereto by and between Brycer, L.P. and Client (the “Agreement). 1. Restrictions on Use. Client shall not copy, distribute, create derivative required to be disclosed by law. In the event that Client requests from works of or modify the Solution in any way. Client agrees that: (a) it Brycer any reports or other information for purposes of complying with shall only permit its officers and employees (collectively, the federal and state disclosure laws, Brycer shall provide such information “Authorized Users”) to use the Solution for the benefit of Client; (b) it within five business day following such request. Confidential shall use commercially reasonable efforts to prevent the unauthorized Information excludes information: (a) that is or becomes generally use or disclosure of the Solution; (c) it shall not sell, resell, rent or lease available to the public through no fault of the receiving party; (b) that the Solution; (d) it shall not use the Solution to store or transmit is rightfully received by the receiving party from a third party without infringing or otherwise unlawful or tortious material, or to store or limitation as to its use; or (c) that is independently developed by transmit material in violation of third party rights; (e) it shall not receiving party without use of any Confidential Information. At the interfere with or disrupt the integrity or performance of the Solution or termination of this Agreement, each party will return the other party all third-party data contained therein; (f) it shall not reverse engineer, Confidential Information of the other party. Each party also agrees that translate, disassemble, decompile or otherwise attempt to create any it shall not duplicate, translate, modify, copy, printout, disassemble, source code which is derived from the Solution (g) it shall not permit decompile or otherwise tamper with any Confidential Information of anyone other than the Authorized Users to view or use the Solution and the other party or any firmware, circuit board or software provided any screen shots of the Solution and (h) it shall not disclose the features therewith. of the Solution to anyone other than the Authorized Users. Client is responsible for all actions taken by the Authorized Users in connection 7. Brycer Warranty. Brycer represents and warrants to Client that Brycer with the Solution. has all rights necessary in and to any patent, copyright, trademark, service mark or other intellectual property right used in, or associated 2. Proprietary Rights. All right, title and interest in and to the Solution, with, the Solution, and that Brycer is duly authorized to enter into this the features of the Solution and images of the Solution as well any and Agreement and provide the Solution to Client pursuant to this all derivative works or modifications thereof (the “Derivative Works”), Agreement. and any accompanying documentation, manuals or other materials used or supplied under this Agreement or with respect to the Solution 8. Disclaimer. All information entered into Brycer’s database is produced or Derivative Works (the “Documentation”), and any reproductions by third party inspectors and their agents. THEREFORE, BRYCER works made thereof, remain with Brycer. Client shall not remove any SPECIFICALLY DISCLAIMS ANY REPRESENTATION OR product identification or notices of such proprietary rights from the WARRANTY AS TO THE ACCURACY OR COMPLETENESS Solution. Client acknowledges and agrees that, except for the limited OF ANY INFORMATION ENTERED INTO BRYCER’S use rights established hereunder, Client has no right, title or interest in DATABASE BY EITHER CLIENT OR THIRD PARTY the Solution, the Derivative Works or the Documentation. INSPECTORS. EXCEPT AS SET FORTH IN SECTION 7, BRYCER MAKES NO OTHER WARRANTY, EXPRESS OR 3. Independent Contractor. Nothing in the Agreement may be construed IMPLIED, WITH RESPECT TO THE SOLUTION OR ANY or interpreted as constituting either party hereto as the agent, principal, OTHER INFORMATION AND ALL OTHER WARRANTIES, employee or joint venturer of the other. Each of Client and Brycer is WHETHER EXPRESS OR IMPLIED, ARE HEREBY an independent contractor. Neither may assume, either directly or DISCLAIMED, INCLUDING, WITHOUT LIMITATION, THE indirectly, any liability of or for the other party. Neither party has the IMPLIED WARRANTIES OF MERCHANTABILITY AND authority to bind or obligate the other party and neither party may FITNESS FOR A PARTICULAR PURPOSE. BRYCER'S SOLE represent that it has such authority. LIABILITY FOR BREACH OF THE REPRESENTATION AND WARRANTY SET FORTH IN SECTION 7, AND CLIENT'S 4. Reservation of Rights. Brycer reserves the right, in its sole discretion SOLE REMEDY, SHALL BE THAT BRYCER SHALL and with prior notice to Client, to discontinue, add, adapt, or otherwise INDEMNIFY AND HOLD RECIPIENT HARMLESS FROM modify any design or specification of the Solution and/or Brycer’s AND AGAINST ANY LOSS, SUIT, DAMAGE, CLAIM OR policies, procedures, and requirements specified or related hereto. All DEFENSE ARISING OUT OF BREACH OF THE rights not expressly granted to Client are reserved to Brycer, including REPRESENTATION AND WARRANTY. the right to provide all or any part of the Solution to other parties. 9. LIMITATION ON DAMAGES. BRYCER SHALL ONLY BE 5. Use of Logos. During the term of this Agreement, Brycer shall have LIABLE TO CLIENT FOR DIRECT DAMAGES PURSUANT the right to use Client’s logos for the purpose of providing the Solution TO THE AGREEMENT. EXCEPT AS OTHERWISE to Client. PROVIDED IN SECTION 7, IN NO EVENT SHALL BRYCER BE LIABLE FOR OR OBLIGATED IN ANY MANNER FOR 6. Confidential Information. Brycer and Client acknowledge and agree SPECIAL, CONSEQUENTIAL, OR INDIRECT DAMAGES, that in providing the Solution, Brycer and Client, as the case may be, INCLUDING, BUT NOT LIMITED TO, LOSS OF USE, LOSS may disclose to the other party certain confidential, proprietary trade OF PROFITS OR SYSTEM DOWNTIME. CLIENT secret information ("Confidential Information"). Confidential ACKNOWLEDGES AND AGREES THAT IN NO CASE SHALL Information may include, but is not limited to, the Solution, computer BRYCER 'S LIABILITY FOR ANY LOSS OF DATA OR DATA programs, flowcharts, diagrams, manuals, schematics, development INTEGRITY EXCEED THE REPLACEMENT COST OF THE tools, specifications, design documents, marketing information, MEDIA ON WHICH THE DATA WAS STORED. financial information or business plans. Each party agrees that it will not, without the express prior written consent of the other party, 10. Risks Inherent to Internet. Client acknowledges that: (a) the Internet is disclose any Confidential Information or any part thereof to any third a worldwide network of computers, (b) communication on the Internet party. Notwithstanding the foregoing, the parties acknowledge that may not be secure, (c) the Internet is beyond the control of Brycer, and Client and Brycer shall be permitted to comply with any all federal and (d) Brycer does not own, operate or manage the Internet. Client also state laws concerning disclosure provided that any such required acknowledges that there are inherent risks associated with using the disclosure will not include any of Brycer’s screen shots. The disclosing Solution, including but not limited to the risk of breach of security, the party shall provide prior written notice of any required disclosure of risk of exposure to computer viruses and the risk of interception, the nondisclosing party’s Confidential Information to the distortion, or loss of communications. Client assumes these risks nondisclosing party and shall disclose only the information that is knowingly and voluntarily releases Brycer from all liability from all 2237531/5/13399.000 Page 139 of 201 such risks. Not in limitation of the foregoing, Client hereby assumes the risk, and Brycer shall have no responsibility or liability of any kind 16. Notices. All notices required in the Agreement shall be effective: (a) hereunder, for: (1) errors in the Solution resulting from misuse, if given personally, upon receipt; (b) if given by facsimile or electronic negligence, revision, modification, or improper use of all or any part of mail, when such notice is transmitted and confirmation of receipt the Solution by any entity other than Brycer or its authorized obtained; (c) if mailed by certified mail, postage prepaid, to the last representatives; (2) any version of the Solution other than the then- known address of each party, three business days after mailing; or (d) current unmodified version provided to Client; (3) Client's failure to if delivered to a nationally recognized overnight courier service, one timely or correctly install any updates to the Client Access Software; business day after delivery. (4) problems caused by connecting or failure to connect to the Internet; (5) failure to provide and maintain the technical and connectivity 17. JURISDICTION AND VENUE. THE AGREEMENT SHALL BE configurations for the use and operation of the Solution that meet GOVERNED BY, CONSTRUED AND INTERPRETED IN Brycer’s recommended requirements; (6) nonconformities resulting ACCORDANCE WITH, AND ENFORCEABLE UNDER, THE from or problems to or caused by non-Brycer products or services; or LAWS OF THE STATE IN WHICH CLIENT EXISTS APPLICABLE (7) data or data input, output, accuracy, and suitability, which shall be TO CONTRACTS MADE IN SUCH STATE AND THAT ARE TO deemed under Client’s exclusive control. BE WHOLLY PERFORMED IN SUCH STATE WITHOUT REFERENCE TO THE CHOICE-OF-LAW PRINCIPLES OF SUCH 11. Indemnity. Brycer (the “Indemnifying Party”) will defend and STATE. THE PARTIES IRREVOCABLY AGREE THAT ALL indemnify Client against any damages, losses, liabilities, causes of ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR action, costs or expenses arising from Brycer’s breach of this RESPECT ARISING OUT OF OR FROM OR RELATED TO THE Agreement, gross negligence or intentional misconduct. Client will AGREEMENT SHALL BE LITIGATED ONLY IN COURTS defend and indemnify Brycer against any damages, losses, liabilities, LOCATED WITHIN THE STATE IN WHICH CLIENT EXISTS. costs or expenses (including reasonable attorneys’ fees) arising from THE PARTIES HEREBY CONSENT AND SUBMIT TO THE Client’s breach of this Agreement, gross negligence or intentional EXCLUSIVE JURISDICTION OF ANY LOCAL, STATE OR misconduct. Client acknowledges that Brycer does not create any of FEDERAL COURT LOCATED WITHIN SAID STATE. THE the data and information included in the Solution and is not responsible PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO for and does not assess or make any suggestions or recommendations TRANSFER OR CHANGE VENUE OF ANY SUCH ACTION OR with respect to any such data or information. Client will defend and PROCEEDING ARISING OUT OF OR RELATING TO THIS indemnify Brycer against any damages, losses, liabilities, costs or AGREEMENT. THE PARTIES WAIVE ANY RIGHT TO TRIAL expenses (including reasonable attorneys’ fees), claims, demands, suits BY JURY ON ANY ACTION OR PROCEEDING TO ENFORCE OR or proceedings made or brought against Brycer by a third party in DEFEND ANY RIGHTS UNDER THE AGREEMENT, AND connection with Client’s or an Authorized User’s use of the Solution, AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL or any action or inaction taken by a third party, including, but not BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. limited to, third party inspectors, in connection with such third party providing services for Client or otherwise at Client’s or an Authorized 18. Attorneys’ Fees. The prevailing party in any proceeding in connection User’s request or direction. with the Agreement shall be entitled to recover from the non-prevailing party all costs and expenses, including without limitation, reasonable 12. Breach. Brycer shall have the right to terminate or suspend this attorneys’ and paralegals’ fees and costs incurred by such party in Agreement, and all of Client’s rights hereunder, immediately upon connection with any such proceeding. delivering written notice to Client detailing Client’s breach of any provision of this Agreement. If Client cures such breach within 5 days 19. Entire Agreement. The Agreement sets out the entire agreement of receiving written notice thereof, Brycer shall restore the Solution between the parties relative to the subject matter hereof and supersedes and Client shall pay any fees or costs incurred by Brycer in connection all prior or contemporaneous agreements or representations, oral or with the restoration of the Solution. written. 13. Illegal Payments. Client acknowledges and agrees that it has not 20. Amendment. The Agreement may not be altered or modified, except received or been offered any illegal or improper bribe, kickback, by written amendment which expressly refers to the Agreement and payment, gift or anything of value from any employee or agent of which is duly executed by authorized representatives of both parties. Brycer in connection with the Agreement. The waiver or failure by either party to exercise or enforce any right provided for in the Agreement shall not be deemed a waiver of any 14. Beneficiaries. There are no third party beneficiaries to the Agreement. further right under the Agreement. Any provision of the Agreement held to be invalid under applicable law shall not render the Agreement 15. Force Majeure. Neither party shall be responsible for any failure to invalid as a whole, and in such an event, such provision shall be perform due to unforeseen, non-commercial circumstances beyond its interpreted so as to best accomplish the intent of the parties within the reasonable control, including but not limited to acts of God, war, riot, limits of applicable law. The Agreement may be executed by facsimile embargoes, acts of civil or military authorities, fire, floods, and in counterparts, each of which shall be deemed an original, and all earthquakes, blackouts, accidents, or strikes. In the event of any such of which together shall constitute one and the same instrument. delay, any applicable period of time for action by said party may be deferred for a period of time equal to the time of such delay, except 21. Expiration. The rights and obligations contained in these Terms and that a party's failure to make any payment when due hereunder shall Conditions shall survive any expiration or termination of the not be so excused. Agreement. 2237531/5/13399.000 Page 140 of 201 Exhibit B Maintenance Schedule and Minimum Service Levels 1. Uptime and Maintenance. The Solution shall be available 24 hours per day during the term of this Agreement. The Solution shall be fully functional, timely and accessible by Client at least 99.5% of the time or better and Brycer shall use reasonable efforts to provide Client with advance notice of any unscheduled downtime. 2. Response Time. Brycer shall respond to telephone calls from Client within two hours of the call and/or message and all emails from Client within two hours of the receipt of the email. 3. Customer Support Customer support hours are 24/7/365. The number is 630-413-9511 Brycer will assign client a dedicated customer representative with direct access to their email and work number. 2237531/5/13399.000 Page 141 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Revision to County Human Resources Contract Submitted by: LeighAnn Mikesell, Deputy City Department: Manager's Office Manager Brief Summary: Staff is seeking approval of a contract amendment for Human Resources services provided by Muskegon County. Detailed Summary & Background: Management has found that the human resource services needed for the city exceed what was originally contemplated when the contract with Muskegon County was modified in 2023. The county staff member assigned to work with the city has been responsible for activities that align with a leadership role rather than an analyst position. The county intends to upgrade the position to a manager role with an increase in salary. City management fully supports the increase due to the workload and responsibility associated with the role. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 GOAL 3: COMMUNITY CONNECTION - Strong ties among government and community agencies Amount Requested: Budgeted Item: $183,329.60 (additional $32,471.60 over current Yes X No N/A contract). This amount was included in the budget for fiscal year 2025/26 approved June 10, 2025. Fund(s) or Account(s): Budget Amendment Needed: 101-269-801 Yes No X N/A Recommended Motion: To approve the contract amendment for human resources services with Muskegon County and authorize the mayor and clerk to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division X Page 142 of 201 Head No Information Technology Other Division Heads Communication Legal Review Page 143 of 201 FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF MUSKEGON AND THE MUSKEGON COUNTY BOARD OF COMMISSIONERS This Fourth Amendment (“Amendment”) is made effective on July 1, 2025 (“Effective Date”) by and between the City of Muskegon, with offices located at 933 Terrace Street, Muskegon, Michigan 49440 (“City”), the City of Muskegon Civil Service Commission, with offices at 933 Terrace Street, Muskegon, Michigan 49440 (“CSC”), and the County of Muskegon, with offices located at 1903 Marquette, Muskegon, Michigan 49442 (“County”). Background A. City, CSC and County entered into a contract effective July 1, 2014 entitled Agreement between the City of Muskegon and the Muskegon County Board of Commissioners which called for the Muskegon County Department of Human Resources to provide human resources services to the City and CSC. B. The Parties now desire to amend the Agreement. Therefore, for good and valuable consideration, and the mutual promises contained in this Amendment, the Parties agree to amend the Agreement as follows: 1. Term. The Agreement shall be revised to provide a termination date of June 30, 2026, provided that any party may terminate the Agreement with six (6) months notice. 2. Fees and Payment. For the period July 1, 2025 through June 30, 2026, City shall pay County an annual fee of $183,329.60, with such payments being made in equal monthly payments. 3. Additional Scope of Service For The City. The Human Resources Department will provide a full-time Human Resources Manager onsite at City Hall who will perform duties in accordance with the attached job description. Upon request by the City, additional services can also include NeoGov Onboard, Perform, OHC, employee and supervisor education/training, and HireReach assessments through County supported software programs. 4. City Obligations. The City shall provide an office and supplies for the County employee. Page 144 of 201 5. No Other Modification. Except as expressly modified by the terms of this Amendment, the Agreement shall remain in full force and effect. In the event of any inconsistency or conflict between the original Agreement, prior Amendments and this Amendment, the provisions of this Amendments shall govern and control. The Parties have executed this amendment as of the Effective Date. City of Muskegon By:___________________________ Ken Johnson Mayor, City of Muskegon By:___________________________ Ann Meisch Muskegon City Clerk City of Muskegon By:___________________________ Civil Service Commission Johnny Brown Chair, Civil Service Commission County of Muskegon By:___________________________ Charles Nash Chairman, Board of Commissioners By:___________________________ Karen D. Buie Muskegon County Clerk Page 145 of 201 MUSKEGON COUNTY, MICHIGAN CLASS TITLE: HUMAN RESOURCE MANAGER- CITY OF MUSKEGON DISTINGUISING FEATURES OF THE CLASS: Under the general direction of the Civil Service Director, coordinates, implements and manages human resource functions for the City of Muskegon and the Civil Service Commission. Serves as the primary contact for administering and interpreting the Civil Service Commission Rules and Regulations; serves as the key liaison to address policy, practice and advisement to the executive team and staff on the City’s personnel matters. Provides support with job description development, performance evaluations and improvement plans, disciplinary actions, and labor relations. This employee also supports the Civil Service Director and performs other work-related activities as required. SUPERVISION RECEIVED: While under the general direction of Civil Service Director, an employee in this class is expected to assume duties and responsibilities independently and is responsible for the final result of work activities. SUPERVISION EXERCISED: Generally none, although an employee in this class may instruct lower level employees in the completion of assigned projects. TYPICAL EXAMPLES OF WORK PERFORMED: (The following examples are intended to be descriptive but not restrictive). Assists the City Manager and Deputy City Manager with the collective bargaining and grievance process; Administers leave programs and policies in accordance with the applicable Federal and State employment laws (FMLA, ADA, USERRA, FLSA, etc.); Assists Managers with employee relations matters including maintaining compliance during the discipline process and the processing of disciplines and dismissals accordingly; Assists in the creation of job descriptions including the evaluation of minimum qualifications and compensation analysis as compared to other City positions and makes recommendations to City leadership accordingly; Provides support, as needed, to benefits staff and insurance broker on the administration of the employee benefit program and wellness offerings; Provides occasional support to Human Resources staff in the job posting and selection process; Prepares and conducts wage and benefit surveys of comparable job classifications in other public agencies and/or private industry; Assists in the application and interpretation of the Civil Service Commission Rules and Regulations and collective bargaining agreements; Maintains compliance with Federal and State labor law posting requirements; Implements policies that align with the City and Civil Service Commission’s goals; Researches and coordinates and/or develops training programs that support employee growth and professional development; Assists the City in the development and administration of evaluation processes to enhance employee engagement and accountability; Responds to public inquiries constructively and refers complaints or complex issues to the Deputy City Manager and/or the Civil Service Commission as required; Maintains the personnel records for the City of Muskegon; Serve as representative to the Civil Service Commission, attends meetings, prepares agendas and meeting minutes; Works closely with the City Manager and Deputy City Manager on strategic initiatives and projects; Performs other related work as required or assigned. Page 146 of 201 EXPERIENCE, TRAINING, KNOWLEDGE, SKILLS and ABILITIES: Required Experience and Training: 1. Bachelor’s degree from an accredited college or university with a major in Personnel Administration, Human Resource Management, Business or Public Administration or a related field; AND; 2. Have a minimum of two (2) years of Human Resources administration experience in the areas of labor relations and employment law/compliance. Required Knowledge, Skills and Abilities: Thorough knowledge of current employment laws and best practices in HR management; Considerable knowledge of the Federal EEOC and Michigan Department of Civil Rights Laws; Skilled in the use of office equipment and technology, including computers and a variety of related software, and the ability to master new technologies; Ability to communicate effectively and present ideas and concepts orally and in writing, and make presentations in the public forum; Ability to establish effective working relationships and use good judgment, initiative and resourcefulness when interacting with employees, City officials, professional contacts, community leaders, the media, and the public; Ability to exercise a high degree of diplomacy and work effectively under stress in emergency and confrontational situations; Ability to critically assess situations, problem-solve, and work effectively under stress, within deadlines and changes in work priorities; Knowledge of the Family and Medical Leave Act (FMLA). PHYSICAL ACTIVITIES: An employee in this class performs generally sedentary work activities requiring occasional lifting of objects weighing thirty-five (35) pounds or less. ENVIRONMENTAL CONDITIONS: This employee generally works at City Hall, although occasional travel may be required. CAREER OPPORTUNITIES: With sufficient experience and training, an employee in this class may be considered for promotion to a higher-level position within the County should a vacancy occur. Approved by: Kristen N. Wade, Human Resources Director Date: Approved by: Mark Eisenbarth, County Administrator Date: Page 147 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Contract with Mediation & Restorative Services Submitted by: Mike Franzak, Planning Director Department: Planning Brief Summary: The City has partnered with Mediation & Restorative Services for the past two years to provide consultations with youth on the risks of vaping and early marihuana use. This contract is to provide another year of services. Detailed Summary & Background: The City has partnered with Mediation & Restorative Services (M&RS) for the past two years to provide consultations with youth on the risks of vaping and early marihuana use. This contract is to provide another year of services. This year's price for services has been reduced by $5,000 because of reduced overhead costs. Over the past two years, M&RS has talked with over 4,000 youth, parents and community members as part of its partnership with the City. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 3: Community Connection Amount Requested: Budgeted Item: $35,000 Yes X No N/A Fund(s) or Account(s): Budget Amendment Needed: 101-701-801-002080 Yes No X N/A Recommended Motion: I move to approve the contract with Mediation & Restorative Services as presented. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Page 148 of 201 Other Division Heads Communication Legal Review Page 149 of 201 Page 150 of 201 Page 151 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Janitorial Service Contract Submitted by: Jacqui Erny, Admin Department: Public Works Brief Summary: Staff is requesting authorization to enter into a contract with Goodwill Industries for janitorial services at City Hall and the Public Service Building for $282,310.22 over 3 years. Detailed Summary & Background: The current janitorial contract began in January 2024 with Professional Building Services. The current contract is three years and costs $137,280.00 for City Hall and $64,350.00 for the Public Service Building. Staff is looking for a higher level of service at both buildings, and so solicited bids for a new three-year janitorial contract with fourth and fifth year options for City Hall and Public Service Building. The three-year bid total for each building is as follows (note these are three-year totals, not annual costs): Bidder City Hall DPW Combined Building Total UCS $166,060.49 $45,450.17 $211,510.66 Goodwill Industries $177,520.09 $104,790.13 $282,310.22 Top to Bottom $234,517.06 $87,497.76 $322,014.82 Cleaning Reliant Professional $281,644.00 $113,199.00 $394,843.00 Cleaning Staff recommends awarding the janitorial contract to Goodwill Industries for both buildings. Goodwill is staffing each building with considerably more hours than the other bid submissions, and had great comments from references. Their bid also substantially increases supervision over levels in the previous contract with Goodwill. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Maximized efficient use of existing infrastructure Amount Requested: Budgeted Item: Page 152 of 201 $282,310.22 (over 3 years) Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: 101-265-801 and 642-441-801 Yes No N/A Recommended Motion: I move to authorize staff to enter into a contract with Goodwill Industries for janitorial services at City Hall and the Public Service Building for $282,310.22 over 3 years. Approvals: Guest(s) Invited / Presenting: Immediate Division Head No Information Technology Other Division Heads Communication Legal Review Page 153 of 201 Page 154 of 201 Page 155 of 201 Page 156 of 201 Page 157 of 201 Page 158 of 201 Page 159 of 201 Page 160 of 201 Page 161 of 201 Page 162 of 201 Page 163 of 201 2.2 AGREEMENT THIS AGREEMENT, made this 12th* day of June 2025 * by the City of Muskegon And between Goodwill Industries Inc {a corporation organized and existing under the laws of the state of MICHIGAN]; or [a partnership consisting of _________________________________________________________________ ]; or {an individual trading as ___________________________________________________________________ ]; Hereinafter called the “Contractor”, and the CITY OF MUSKEGON, MICHIGAN: WITNESSETH, that the Contractor and the City of Muskegon, for the consideration stated herein, mutually agree as follows: ARTICLE 1. Statement of Work. The Contractor shall furnish all supervision, technical personnel, labor, materials, machinery, tools, equipment, and services, including utility and transportation services, and perform and complete all work required for the construction of the improvements embraced in this Contract, NAMELY: Janitorial and Carpet Cleaning Services at the following sites: City Hall, including the Muskegon PoliceDepartment (933 Terrace St.), and the Public Service Building (1350 E. Keating), for a period of three (3) years. and required supplemental work for the completion of this Project, all in strict accordance with the Contract, including all Addenda. ARTICLE 2. The Contract Price. The City of Muskegon will pay the Contractor for the performance of this Contract and the completion of the work covered therein an amount in current funds not to exceed $ 104,790.13 Article 3. Contract. The executed contract shall consist of, but not be limited to, the following: Invitation for Bids Section 1 – Project Performance Part 1- Bids Section 2 – Affirmative Action Section 1 – Instruction to Bidders Section 3 – Labor Standards/EEOC/Anti-Kickback Act Section 2 – Bid Proposal Part 4 – Project Special Specifications Part 2 – Agreement Part 5 – Appendices Part 3 – General Specifications This Agreement, together with other documents enumerated in this Article 3, which said other documents are as fully part of the Contract as if attached hereto or repeated herein, form the Contract between the parties hereto. In the event any provision in any component part of this Contract conflicts with any provision of any other component part, the Contractor shall contact the City immediately in writing for a determination, interpretation and/or clarification of conflicting parts and priority of same. Said determination from the City shall be in writing and shall become an Addendum to this Contract *06.24.2025 Page 164 of 201 IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed in Five (5) original counterparts on the day and year first written above. ATTEST: CONTRACTOR ____________________________________ Signature Signature Printed Name and Title ATTEST: CITY OF MUSKEGON ____________________________________ Signature Mayor Signature City Clerk Signature (SEAL) CERTIFICATION (if applicable) I, ________________________________, certify that I am the __________________________ of the Corporation named as the Contractor herein; That _____________________________, who signed this Agreement on behalf of the Contractor, was then ________________________________ of said Corporation; That said Agreement was duly signed for and in behalf of said Corporation by authority of its governing body, and is within the scope of its corporate powers. Signature (CORPORATE SEAL) Printed Name and Title Page 165 of 201 2.5 NON-COLLUSION AFFIDAVIT OF SUB-CONTRACTOR State of ) ) ss. County of ) , being first duly sworn, deposes and says that: 1. They are Representative (owner, partner, officer, representative, agent) of Goodwill Industries Inc , the Bidder that has submitted the attached Bid to the City of Muskegon; 2. They are fully informed respecting the preparation and contents of the attached Bid and of all pertinent circumstances thereto; 3. Such Bid is genuine and is not a collusive or sham Bid; 4. Neither said Bidder nor any of their officers, partners, owners, agents, representatives, employees or parties in interest, including this affiant, has in any way colluded, conspired, connived or agreed, directly or indirectly, with any other Bidder, firm or person to submit a collusive or sham Bid in connection with the Contract for which the attached Bid has been submitted, or to refrain from bidding in connection with such Contract; nor has in any manner, directly or indirectly, sought by agreement, collusion, communication or conference with any other Bidder, firm or person to fix the price or prices in the attached Bid or any other bid; nor to fix any overhead, profit or cost element of the Bid price or the bid price of any other bidder; nor to secure through any collusion, conspiracy, connivance or unlawful agreement any advantage against the City of Muskegon or any person interested in the proposed Contract; and 5. The price or prices quoted in the attached Bid are fair and proper, and are not tainted by any collusion, conspiracy, connivance or unlawful agreement on the part of the Bidder or any part of its agents, representatives, owners, employees or parties in interest, including this affiant. Signature Printed Name and Title Subscribed and sworn to before me This day of , 20 Title Page 166 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Rezoning of 62 Irwin Ave from Neighborhood Residential (R) to Low-Density Multiple Family Residential (RM-1). Submitted by: Mike Franzak, Planning Director Department: Planning Brief Summary: Request to rezone the property at 62 Irwin Ave from R, Neighborhood Residential to RM-1, Low- Density Multiple Family Residential. The Planning Commission unanimously (6-0, 3 members absent) recommended approval of the request. Detailed Summary & Background: The property is zoned R-1, Neighborhood Residential. The parcel measures 13,200 sq ft, and the vacant church on-site measures 2,583 sq ft. The applicant would like to convert the former church building into residential units. The current zoning would allow up to a duplex, but the building is large enough to host more units. A rezoning to RM-1 would allow up to 16 units per acre, which would be four units on this property, assuming each unit would meet the necessary size requirements. With RM-1 zoning, the applicant would also have the option to apply for a special use permit for a single-room occupancy building, which he is also considering. The parcels to the west along Peck St are also zoned RM-1. However, staff have been holding focus group discussions with these business owners about the possibility of rezoning the district to form- based code. Initial discussions were very positive and well-received. Even if these parcels were to be rezoned away from RM-1, the rezoning of 62 Irwin should still be considered for a rezoning to this designation, and staff do not believe this would be considered a spot zone. The Master Plan specifically talks about being flexible with the zoning of former civic buildings and allowing more density in their redevelopment. Notice was sent to all properties within 300 feet of this parcel. At the time of this writing, staff had not received any comments from the public. STAFF RECOMMENDATION Staff recommends approval of the rezoning to RM-1. This zoning designation will allow the redevelopment of this civic building into a reasonable number of residential units, which will not vary from what already exists in the area. This request is consistent with the goals of the Master Plan to redevelop former civic buildings into multi-family housing or mixed-use developments. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Page 167 of 201 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 rezone the property at 62 Irwin Ave from R, Neighborhood Residential to RM-1, Low-Density Multiple Family Residential. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 168 of 201 Page 169 of 201 Page 170 of 201 Page 171 of 201 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO. An ordinance to amend the zoning map of the City to provide for a zone change for 1188 Lakeshore Dr from LR to Form Based Code, UR. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: The zoning map of the City of Muskegon is hereby amended to change the zoning from LR to FBC, UR. This ordinance adopted: Ayes: Nayes: Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: __________________________ Ann Meisch, MMC City Clerk Page 172 of 201 CERTIFICATE (Rezoning of 1188 Lakeshore Dr to FBC, UR) The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 24th day of June, 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 173 of 201 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on June 24, 2025, the City Commission of the City of Muskegon adopted an ordinance amending the zoning map to provide for the change of zoning for 1188 Lakeshore Dr to FBC, UR. Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten days from the date of this publication. Published ____________________, 2025 By ___________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Page 174 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Rezoning of 1188 Lakeshore Dr from Lakefront Recreation (LR) to Form Based Code, Urban Residential (FBC, UR). Submitted by: Mike Franzak, Planning Director Department: Planning Brief Summary: Request to rezone the property at 1188 Lakeshore Dr from Lakefront Recreation (LR) to Form Based Code, Urban Residential (FBC-UR). The Planning Commission unanimously (6-0, 3 members absent) recommended approval of the request. Detailed Summary & Background: This vacant lot measures 1.6 acres and is zoned LR, Lakefront Recreation. It is located between the Lakeshore Yacht Harbour marina and Adelaide Point and is owned by Cole's Quality Foods. The applicant is considering purchasing the property and would like to build a single-family house to live in. The LR zoning designation does not allow for housing. The lot does not have frontage on a street, but the applicant is working with Lakeshore Yacht Harbour to obtain an easement from the southern end of this lot to W. Western Ave. The applicant is requesting to rezone the property to Form Based Code, Urban Residential, which would allow up to a duplex and an accessory dwelling unit, in terms of density. However, he is only planning on developing one single-family house. Much of the lot is unusable for construction as it lies below the ordinary high watermark, and there is also a large slope in the building footprint area. Utilities will need to be installed underneath the former railroad ROW, and the applicant will be responsible for obtaining easements from CSX. A driveway will also need to be installed at the end of the cul-de-sac and across the bike path. A permit from the City Engineering Department will be required. The future land use map in the Master Plan identifies this parcel as "Lakeshore," which is described as "Mixed-use development and recreational, water-related activities located along the Muskegon Lake shoreline. The large lot sizes, uniquely shaped parcels, and wide range of permitted uses, Planned Unit Developments (PUD) are common in this land use category." A site plan is not required for a rezoning request, but one has been provided to show how the development would work. The applicant has worked with city staff to create a driveway that would be placed in a way to minimize conflict with the bike path. STAFF RECOMMENDATION Staff recommends approval of the request. The applicant will have to purchase the property and obtain easements for the driveway and utilities before permits can be pulled. While the rezoning to FBC, UR does not totally align with the mixed-use designation in the future land use map, the low elevation of most of the lot prevents its redevelopment into anything substantial. A single-family Page 175 of 201 house may be about as large of a development that could fit on this lot, given its development challenges. The addition of a housing unit will contribute to the mixed-use along the shoreline. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A X Recommended Motion: I move to approve the request to rezone the property at 1188 Lakeshore Dr from Lakefront Recreation to Form Based Code, Urban Residential. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 176 of 201 Page 177 of 201 Page 178 of 201 Page 179 of 201 Page 180 of 201 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO. An ordinance to amend the zoning map of the City to provide for a zone change for 1188 Lakeshore Dr from LR to Form Based Code, UR. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: The zoning map of the City of Muskegon is hereby amended to change the zoning from LR to FBC, UR. This ordinance adopted: Ayes: Nayes: Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: __________________________ Ann Meisch, MMC City Clerk Page 181 of 201 CERTIFICATE (Rezoning of 1188 Lakeshore Dr to FBC, UR) The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 24th day of June, 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 182 of 201 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on June 24, 2025, the City Commission of the City of Muskegon adopted an ordinance amending the zoning map to provide for the change of zoning for 1188 Lakeshore Dr to FBC, UR. Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten days from the date of this publication. Published ____________________, 2025 By ___________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Page 183 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Neighborhood Enterprise Zone Certificate Transfer for 302 Terrace Point Circle Submitted by: Jocelyn Hines, Development Department: Economic Development Analyst Brief Summary: Staff is requesting the approval of a Neighborhood Enterprise Zone certificate transfer for 302 Terrace Point Circle. This is being requested due to the transfer benefiting a current staff member of the City of Muskegon Detailed Summary & Background: The staff are requesting the approval of a Neighborhood Enterprise Zone (NEZ) certificate transfer for the property located at 302 Terrace Point Circle. While NEZ certificate transfers are typically handled administratively and do not require City Commission approval under state statute, this request is being brought before the Commission out of an abundance of transparency. The homeowner is an employee of the City of Muskegon's Department of Public Works. Although the City Attorney has determined that a conflict of interest statement is not required, staff believes it is important to disclose the relationship and obtain formal Commission approval. Supporting documentation includes the simplified NEZ transfer application, Principal Residence Exemption Affidavit, Letter from the City of Muskegon Attorney and the recorded Warranty Deed. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Diverse housing types Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: N/A Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A Recommended Motion: I move to approve the Neighborhood Enterprise Zone Certificate transfer for 302 Terrace Point Circle. Page 184 of 201 Approvals: Guest(s) Invited / Presenting: Immediate Division Head Yes Information Technology Other Division Heads Communication Legal Review Page 185 of 201 May 28, 2025 May 14, 2013 Page 186 of 201 Page 187 of 201 Page 188 of 201 Page 189 of 201 Page 190 of 201 Page 191 of 201 Page 192 of 201 Page 193 of 201 Page 194 of 201 Page 195 of 201 Page 196 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Adjustment to FY 2024/25 Budget, Manager's Office, Contracted Services (Climate Action Plan) Submitted by: LeighAnn Mikesell, Deputy City Department: Manager's Office Manager Brief Summary: Staff is requesting a budget adjustment to account for expenditures related to the climate action plan. Detailed Summary & Background: In the fourth quarter reforecast, a mistake was made in the manager's office budget. There is a second charge of $24,500 for finalizing the climate action plan that was not accounted for. The total amount fits within a state grant the city received for this work so there is a net zero impact to the budget. An adjustment needs to be made to the federal grant revenue line item since the first payment of the grant was mistakenly coded. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 4: Financial Infrastructure Amount Requested: Budgeted Item: $24,500 increase, total line item $132,200 Yes X No N/A $49,000 increase, total line item $299,000 $24,500 decrease, total line item $802,605 Fund(s) or Account(s): Budget Amendment Needed: 101-172-801 manager's office, contractual Yes X No N/A services 101-000-540 state grants revenue 101-000-502 federal grants revenue Recommended Motion: to approve the budget adjustments as outlined. Approvals: Guest(s) Invited / Presenting: Page 197 of 201 Immediate Division No Head Information Technology Other Division Heads X Communication Legal Review Page 198 of 201 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: June 24, 2025 Title: Official City of Muskegon Pride & Juneteenth Flags Submitted by: Ken Johnson, Mayor, Jonathan Department: Mayor's Office Seyferth, City Manager Brief Summary: A proposal to adopt two additional Official City Flags modeled on the Intersex Pride Flag & the Juneteenth Flag (see attached). Detailed Summary & Background: Cities across the country have taken steps to ensure inclusive symbols can be used in their cities. One way to achieve this is by adopting multiple official city flags that can be flown at any time. It is proposed that the City of Muskegon adopt two additional city flags based on the Intersex Pride Flag, with the city's tile "M" in the lower right corner of the flag. And another flag based on the Official Juneteenth Flag with the city's time "M" in the upper left corner of the flag. Illustrative examples of both follow this memo. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 3: Community Connection 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 adopt the City of Muskegon Pride Flag and the City of Muskegon Juneteenth Flag as alternative official city flags. Approvals: Guest(s) Invited / Presenting: Immediate Division Head No Page 199 of 201 Information Technology Other Division Heads Communication Legal Review Page 200 of 201 Page 201 of 201
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