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CITY OF MUSKEGON
POLICY AND PROCEDURE FOR SALE OF
CITY-OWNED COMMERCIAL AND INDUSTRIAL PROPERTIES
2003-87(e)
Objective
The City of Muskegon (the City) wishes to expand its commercial and industrial tax base,
while simultaneously alleviating itself of the significant cost burden associated with year-
round maintenance of vacant properties. The City reserves the right to join and split lots
to assist with this process. All property will be sold as is. Ali sales are subject to City
Commission approval.
Procedure
1. The purchase procedure begins when the interested party meets with appropriate
Planning Department staff to discuss the reason for the request to purchase City-
owned property, including any development plans by the interested parties.
Planning Department Staff will evaluate the request, taking into account the
proposed use, zoning, number of jobs to be created, ownership and uses of other
adjacent and nearby parcels.
Upon tentative agreement between the City and the interested party, the City may
accept a non-refundable $500 deposit ferthe-prepertywhich-will
wHew the-Gity
te-order-an-appraisal-of the subject_property- for an appraisal and/or to cover
staff costs. In some cases, prices may have already been set, so an appraisal may
not be necessary: i.e., lots in Seaway Industrial Park, etc. If necessary, a survey
will also be ordered. Survey costs will be the responsibility of the potential
purchaser. Sales may be subject to a development agreement and performance
guarantee.
After the appraisal is obtained, another meeting will take place to discuss the
details of a development agreement between the City and potential purchaser. If
an acceptable agreement is obtained, the agreement will be taken to City
Commission for approval. The City Commission reserves the right to reject any
or all development agreements, to request proposals from other interested parties,
or to accept the agreement that appears to be in the best interest of the City of
Muskegon. Details of an agreement may include, but are not limited to:
a. Price to be paid for the property.
b. Time line for development of the property.
c. Required bonds as part of the development.
Upon approval of City Commission, a deed will be prepared by the City Attorney.
Closing must occur within 90 days. The full purchase price for the property is
payable to the City at the time of closing (minus the deposit). Recording of the
deed with the Muskegon County Register of Deeds will be done by the title
company after closing has taken place.
O:\Planning\COMMON\Econ, Dev\Property Sales\Commercial-Industrial Policy.edit.doc
6. The buyer must commence improvements on the subject property within 18
months of the date of purchase. The completion date of the project will be
negotiated between the City and Buyer and will be included in the development
agreement. In default of such construction, title to the property, as well as any
improvements, shall revert back to the City of Muskegon, free and clear of any
claim of the buyer.
Property Survey
All costs and activities associated with a survey are the sole responsibility of the buyer.
Other
Factors considered before approvals of property sales include, but are not limited to the
following:
a. Amount of existing property owned by interested parties.
b. Current upkeep of existing property owned by interested parties.
C. Evidence of unresolved zoning, building code or amy other violations
issued by the City of Muskegon.
RB mee
Proposed use of the property.
Ownership and uses of adjacent and nearby uses.
Zoning of parcel in question and adjacent parcels.
Ability of potential buyer to secure financing and follow through with
development plans.
h. Any monies owed to the city must be rectified prior to the sale.
(i.e. environmental invoices, water bills, taxes, etc...)
**Note Regarding Deposit: Deposits are non-transferable and non-refundable, except as
described below. Ifthe sale of the subject property is approved and finalized with the
interested party, the deposit will be applied to the purchase price. If the sale of the
subject property to the interested party is NOT approved, the deposit will be refunded. If
the interested party does not bid, withdraws the bid, changes the bid, or does not follow
through to closing within 90 days after the sale is approved by the City Commission, the
deposit will be forfeited to the City and will not be refunded.
Adopted: October 28, 2003
Gail A. Kundinger, MMC
City Clerk
O:\Planning\COMMON\Econ. Dev\Property Sales\Commercial-Industrial Policy.edit.doc
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