City Commission Packet Archive 06-24-2025

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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




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                                                                            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.




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☐   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




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                         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




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     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.



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PUBLIC COMMENT
Public comments received.

ADJOURNMENT
The City Commission meeting adjourned at 7:12 p.m.




                                    Respectfully Submitted,



                                    Ann Marie Meisch, MMC City Clerk




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     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



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    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 -



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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



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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.



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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.



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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.




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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



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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



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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.



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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




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                         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



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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
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Page 36 of 201
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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.




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                                                                                                                                                      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

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                            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
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                                                                                           Page 148 of 201
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                       Page 149 of 201
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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

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                                                  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

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                                       CITY OF MUSKEGON
                                  MUSKEGON COUNTY, MICHIGAN
                                      ORDINANCE NO.


An ordinance to amend the zoning map of the City to provide for a zone change for 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




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                         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

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                                       CITY OF MUSKEGON
                                  MUSKEGON COUNTY, MICHIGAN
                                      ORDINANCE NO.


An ordinance to amend the zoning map of the City to provide for a zone change for 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




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                         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.


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

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May 28, 2025




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                         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:



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Immediate Division         No
Head
Information
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Other Division Heads   X
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                         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




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