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LEGISLATIVE POLICY COMMITTEE MEETING
WEDNESDAY, May 22, 2024
5:30 P.M.
Conference Room 204
MUSKEGON CITY HALL
933 TERRACE STREET
MUSKEGON, MI 49440
AGENDA
I. Call to Order
II. Approval of Minutes for February 28, 2024
III. Old Business
IV. New Business
1) Legislative Updates
Director of Government Relations & Strategic Operations Peter Wills
2) Lakefront Development Discussion
City Manager Jonathan Seyferth
3) Time Sensitive Land Acquisition Request
Mayor Ken Johnson
4) Rebranding
Community Engagement Manager Deborah Sweet
V. Adjourn
CITY OF MUSKEGON
LEGISLATIVE POLICY COMMITTEE
Minutes
Wednesday, February 28, 2024
5:30 pm
Present: Commissioners German, St. Clair, Johnson, and Kilgo.
Absent: Commissioners Gorman, Kochin, and Keener. (All were present by zoom but did not
count towards quorum)
Approval of Minutes
Commissioner St. Clair moved, Commissioner Kilgo seconded, to approve the minutes of
November 29, 2023 with the following correction: add under Charter Park Discussion –
Add SPX Terrace Point property to our charter park and gauging Commissioner interest.
MOTION CARRIED.
Legislative Update – Pete Wills
Pete Wills gave an update on legislation. He spoke about bill 5438 – STR Regulation Act and
MEDC Grant.
Short Term Rental Discussion – Jonathan Seyferth
The Manager facilitated a discussion on Short Term Rentals. He suggested putting a pause on
rentals but leave them intact in the commercial area and downtown area. He suggested a pause of
6 months or 12 months for staff to develop a framework to regulate them. Any appeals could be
made to administration and those that are denied can be taken to the City Commission for
review. This item will be brought to the City Commission for consideration.
Lake Front PUD Standards – Jonathan Seyferth
Discussion took place about Lakefront PUD Standards. Is there interest in making one set of
standards or does the city go section by section? Jamie Pesch, Planner, will study the issue and
come back to a worksession with suggestions.
Adjourn at 7:35 pm.
______________________________
Ann Marie Meisch, MMC
City Clerk
State / Federal Report, May 2024
Bill # Detail Status Position
HB 4002 Increases the Earned Income Tax Credit (EITC) from 6% to 30%. Senate Committee NA
HB 4003 Elliott-Larsen Civil Rights Act; include sexual orientation & gender identity or expression as a protected Senate Committee NA
category.
HB 4274- Creates Revenue Sharing Trust Fund; SB 182-183; the bills would dedicate 8% of the 4% sales tax and place Senate Committee, MML
4275 it in a trust fund specifically for statutory revenue sharing. 11/2 support
HB 4605 Provide for distribution of sales tax revenue into public safety and violence prevention fund; 1.5% of the 4% Senate 11/8
of sales tax revenue collected.
HB 4606 Create public safety and violence prevention fund Senate 11/8
HB 4688 Makes minimum staffing levels for all local units a mandatory topic of collective bargaining. House floor, 11/2 MML
opposed
HB 4878 Would create the Michigan Fair Chance Access to Housing Act to generally prohibit a landlord from using an House Local Gov
individual’s criminal record when evaluating the individual’s rental application at any stage in the 10/5/23
application process, except as provided by the act or under federal or state law.
HB 4919 Would create the Bill of Rights for the Homeless Act, which would provide that homeless individuals must House Local Gov
be granted the same rights and privileges as any other citizen in MI and would prohibit the denial of an 10/5/23
individual’s rights, privileges, or access to public services solely because the individual is, or is perceived to
be, homeless.
HB 4965 Video Services Act; exempts providers of streaming services from paying rent for use of the public ROW, Senate
otherwise shouldered by the taxpayer, and its obligation to support public/educational/government access. Committee
The net effect of this will be a loss of some, most or perhaps all of the over $350,000 currently received by 10/24/23
the Muskegon in cable/video franchise fees which go to the General Fund, plus PEG support for local
programming which includes cable/video access to government meetings, without which we lose a critical
component of local government transparency.
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HB 5088- Create water rate affordability program; shutoff protection act, etc. Bill package would establish a low- House Natural
93 income water residential affordability program; funds would be used to aid low-income residents for Resources, Env,
expenses related to water and sewer service; would establish standards and criteria for when a water Tourism
service provider can shut off water supply; would regulate rental agreements to allow a tenant in a metered
or sub-metered rental property to request that a copy of the water and sewer bill be sent to both landlord
and tenant.
HB 5437- Short Term Rental package; HB 5438 is the main bill (statewide registry, health/safety measures; 6% excise House Local Gov MML
5446 tax goes back to community hosting the STR. 4/17 support
HB 5463 Creates a Center for Microenterprise Development, operated by the Michigan Strategic Fund, to support House Econ
microenterprise development organizations (MDOs) and microenterprise businesses. MDOs would mean a Development
community-based, nonprofit organization that has a plan and the demonstrated or potential capacity to 2/22/24
provide business development training, technical assistance, or business loans to microenterprise
businesses. Microenterprise business would mean a new or existing business headquartered in MI that has
ten or fewer employees, including startups, home-based businesses, and self-employed individuals.
HB 5557 Requires Master Plans to forecast and consider housing needs. The Master Plan would have to promote or House Econ Dev
adequately provide for a range of housing types, costs, affordability, attainability, ages, and other 3/13/24
characteristics (such as single- and multiple-family dwellings) to serve the housing demands of a diverse
population.
SB 205- The bills would prohibit a landlord or a person engaging in real estate transactions from discriminating House floor, 5/15
207 against a person based on that person’s source of income. Source of income would include specified
benefits and subsidies, such as public assistance and social security. In addition, modifications proposed to
the landlord-tenant Act would allow a person to seek relief or damages in court because of a landlord’s
source of income discrimination.
SB 480 Land Division Act - It's an amendment to the Land Division Act that would increase the allowable number of House Local Gov
parcels that the first 10 acres of a parent parcel or tract could be divided into. Currently that number is
four. The amendment would increase it from four to 20.
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LOCAL
ARPA Community Grants, as of 5/22/24
- 25 - total approved grants ($1.6M)
- 5 - projects completed (Samaritas, Unity Beauty Salon, Tiki Boiz, Rake Beer Projects, Forrest Tax)
- 13 - have been paid the first installment payment, ie. 50% of the total award
- 5 – have been paid the second installment payment, ie. 40% of the remaining balance
- 2 – projects pending
Climate Action
- City has completed an organization-wide Greenhouse Gas Inventory.
- City Climate Action Workgroup is meeting and currently generating a Climate Action Plan, using data from
the Inventory.
- Michigan Green Communities Challenge –
o City of Muskegon reached Gold certification in the MGC Challenge. MGC is a statewide network
of local government staff and officials who collaborate with one another, through peer learning
and information sharing, to promote innovative sustainability, climate change, and environmental
justice solutions. MGC is open to all counties, cities, villages, and townships at no cost.
o May 20 formally announcing the results of the 2023 MGC Challenge.
o Record number of participants, with 62 communities being recognized for their efforts. The City
and the other participants logged actions taken through 2023 to improve sustainability efforts.
Seven communities received bronze certification, 20 received silver certification and 35 received
gold certification.
- EECBG –
o Federal, Energy Efficiency Community Block Grant (USDOE) – City is eligible to receive $76,000.
o City applied in February for their Equipment Rebate program be reimbursed $76,000 as part of
the replacement of the City Hall boiler expenses ($512,000).
MEDC RAP 1.0 grant ($6M)
- ($1M) Arena / Thayer – staff has submitted expenses from the 2023 project; the grant
reimburses 50% of the project costs. We expect to be reimbursed $410,000. Currently
developing a plan for 2024-25 work at the Arena.
- ($5M) LakeView Lofts Phase II – staff is working with their development team and expects to
submit a request for reimbursed costs in the coming weeks.
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STATE
State Consensus Revenue Estimating Conference
- Last week, the State Treasurer and Directors of the Senate and House Fiscal Agency’s reached consensus
on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2024 and for the upcoming
2025 and 2026 fiscal years.
- The May Consensus Revenue Estimating Conference locks in the state’s revenue picture after the
individual income tax season. These revenue projections allows the legislature to finalize the state budget
prior to June 30, 2024.
State Budget
- The House and Senate General Government budgets that are scheduled for hearings this week will
provide us with further insight on where legislators are on revenue sharing.
- This House and Senate respective General Government budgets both include significant increases in
revenue sharing and major policy changes.
Senate:
- Creates a Revenue Sharing Trust Fund and dedicates 9.1% of the 4% sales tax to the fund. This proposal
would result in allocating $662.4 million to statutory revenue sharing. This is $102.3 million more in on-
going revenue than last year and a 20.5% increase in statutory revenue sharing.
- Cities, villages, and townships would receive $60.2 million more in on-going revenue than last year.
o The $60.2 million increase would be distributed according to the statutory revenue sharing
formula that was created in 1998. This was a three-factor formula that distributed revenue as
follows: 1/3 inverse taxable value per capita, 1/3 unit type population, and 1/3 yield equalization.
o Results in every city, village, and township receiving a statutory revenue sharing payment.
- Counties would receive $54.5 million more in on-going revenue than last year.
o The $54.5 million increase would be distributed according to the statutory revenue sharing
formula that was created in 1998 and 100% of the funds would be allocated based on an inverse
taxable value per capita formula.
House:
- Creates a Revenue Sharing Trust Fund and dedicates 8% of the 4% sales tax to the fund. This would result
in allocating $591.7 million to statutory revenue sharing. This is $42 million more in on-going revenue
than last year and a 7.6% increase.
o Cities, villages, and townships would receive 53.87% of the funds, equaling $318.7 million. This is
an 8.6% increase.
o Counties would receive 46n.13% of the of the funds, equaling $273 million. This is a 6.6%
increase.
o Results in every city, village, and township receiving a statutory revenue sharing payment.
- Creates a Public Safety and Violence Prevention Trust Fund and dedicates 1.5% of the 4% sales tax to the
fund. This would result in $101.5 million in new on-going revenue for local units of government and would
be distributed based on violent crime statistics.
- Both trust funds combined would result in allocating $693.2 million to local units of government. This is
143.5 million more in on-going revenue and a 26.1% increase in funding.
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The budget proposals being put forth by the House and the Senate are nothing short of good news. They both
codify the creation of a Trust Fund, allocate over $100 million of new revenue to municipalities, and prioritize the
important role our communities play in the success of Michigan.
For comparison, here is what the Governor proposed.
- $55 million total increase in Statutory Revenue Sharing payments, an overall 10% increase compared to
enacted fiscal year 2024 ongoing statutory appropriations. This total increase represents the following:
o A 5% ongoing increase in general statutory revenue sharing compared to enacted fiscal year 2024
ongoing statutory appropriations.
o A 3% one-time payment for local units that have fully obligated their local fiscal recovery funds by
Oct.1, 2024, compared to enacted fiscal year 2024 ongoing statutory appropriations.
o A 2% one-time payment specifically designated for local public safety initiatives, compared to
enacted fiscal year 2024 ongoing statutory appropriations. These initiatives may include public
safety employee recruitment, retention, and training, as well as public safety equipment and
infrastructure improvements.
- City, Village, and Township Revenue Sharing total increase is $29.4 million ($14.7 million related to 5%
ongoing, $8.8 million related to the one-time local fiscal recovery fund incentive, and $5.9 million one-
time related to public safety).
o Total fiscal year 2025 statutory payments for CVTs are recommended at $322.9 million.
Short Term Rental legislation
- HB 5348 – Would create the Short-Term Rental Regulation Act. A 6% state tax would be levied on
occupancy charges for houses, apartments and condos that are rented for more than 14 days a year. The
estimated $35 million to $70 million in annual revenue would go to local governments where the
properties are located, except up to $1 million for administrative costs. Owners would be required to have
at least $1 million in liability insurance and functioning carbon monoxide detectors, smoke detectors and
fire extinguishers. They would have to file a certificate each year to go into a new state-run database of
dwellings and provide information such as an emergency contact who lives within 30 miles.
- HB 5441 – Clarifies an application of an excise tax to STR and makes other changes pertaining to the
Comm Convention or Tourism Marketing Act
- HB 5442 – Clarifies an application of an excise tax to STR and other changes to State Conv Facility Dev Act
- HB 5443 – Clarifies an app of an excise tax to STR and other mods pertaining to the excise tax on
businesses.
- HB 5444 – Clarifies an app of an excise tax to STR and other changes pertaining to the Reg Event Center
Financing Act
- HB 5445 – Clarifies an app of an excise tax to STR and makes other changes pertaining to Conv Tourism
Market Act
- HB 5446 – Clarifies an app of an excise tax to STR and makes other changes pertaining to Conv Tourism
Promo Act
The House Local Government Committee has held two legislative hearings in the past two months. It is expected
the legislature will adjourn for the summer in June but that this issue will be revisited in the Fall.
Issues raised by advocates at the hearing –
- Local units are absorbing a growing load for public services at STRs.
- Need better definition for an STR, as some believe they are commercial uses of property and inconsistent
with residential uses.
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- The current version of the legislation would institute a 6% use tax, 6% excise tax, and 5% accommodation
tax.
- Currently, CVB assessment revenue does not go to support STR infrastructure support.
- Local units currently struggling with properly zoning and regulating STRs and funding the enforcement.
- Municipalities should enact and enforce “reasonable” regulations and zoning ordinances to safeguard
public health and safety, set the number of allowable short-term rentals — including geographical
restrictions — and establish a process to revoke a permit. They should not ban short-term rentals.
- HB 5437 and 5439-5446 would extend local hotel taxes and assessments that fund sports stadiums and
CVBs to short-term rentals. They range from 1% to 5%.
Bills Introduced to Hold Polluters Accountable for Cleanups
A seven-bill Polluter Pay legislative package (Senate Bills 605-611, House Bills 5241-5247) will set more stringent
cleanup standards, increase transparency, prevent sites from becoming “orphaned” and make it easier for
those harmed by pollution to seek justice.
Bill descriptions:
- SB 605 (Irwin) HB 5247 (Koleszar) will give EGLE and the public more information about cleanups and
polluted sites.
- SB 606 (Moss) HB 5242 (Morgan) will require polluters to pay for land and water to be restored to usable
condition as much as technically feasible, so that restricting access to polluted areas does not substitute
for cleanup.
- SB 607 (Chang) HB 5245 (Arbit) will enable EGLE to set cleanup criteria without easily blocked APA
rulemaking.
- SB 608 (Geiss) HB 5246 (Tsernoglou) will require businesses with large amounts of potentially polluting
materials to post up-front financial assurance to cover any cleanup.
- SB 609 (McCann) HB 5243 (Neeley) will empower the state to bring claims on behalf of the public to cover
cleanup costs and damage to natural resources due to contaminants like PFAS not known to be harmful at
the time the limitation period expired for other contaminants.
- SB 610 (Shink) HB 5241 (McKinney) will enable people exposed to hazardous substances to bring a claim
against the polluter to cover the costs of medical monitoring needed to detect a condition linked to the
exposure.
- SB 611 (McMorrow) HB 5244 (Skaggs) will set a fairer clock for people harmed by pollution to access
justice through the courts, starting the limitation period when the person discovers the claim.
Governor Signs Long Desired Change to Speed Limit Law
The League has consistently advocated for greater flexibility and clarity on how speed limits can be set at the local
level to ensure all users of the roadway and the context of our local streets are considered. House Bill 4012, was
signed by the Governor.
Specifically, this bill makes two important changes:
- Clarifies that when setting a speed limit based on the 85th percentile speed the posted speed can be
rounded to "within" 5 mph of the 85th percentile of speed rather than to the "nearest" 5 mph of the 85th
percentile speed. This change will ensure that when setting a speed limit, communities will not have to
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post a speed limit above the 85th percentile of speed because the law would no longer force you into a
position where you would have to round up.
- Clarifies that a community can use and engineering and safety study to reduce the speed below the 85th
percentile speed, but not below the 50th percentile speed, if the engineering and safety study
demonstrates a situation with hazards to public safety that are not reflected by the 85th percentile speed.
Governor Creates New Clean Energy Transition Office
- Governor creates new Community and Worker Economic Transition Office within the Department of
Labor and Economic Opportunity (LEO), to assist communities, workers and employers in preparing to
transition to a 100% clean energy economy.
- The transition office would be responsible for shifts in jobs in the utility and automotive sectors, which
make up more than 20% of the economy in Michigan.
- The office would also be responsible for the collaboration between leaders of businesses, citizens and
government, and put the state initiatives, resources and technical assistance in one place.
- The office would also collaborate with businesses to help fill workforce gaps and reach out to populations
that need help.
- There would be two portions. The first would be the operational budget, which would cost $5 million
annually and there would be a prorated $2.5 million in the supplemental that would let the office start
before FY 2025 hits. The second part would be $10 million for a transition fund pilot fund, to test out
possible solutions in a targeted community.
- The example given was of an auto factory that needed to shut down for six months to retool for electric
vehicles. During that time the workers would need to get training, as well, so when the factory reopened
they would be able to just start back up with the necessary training. During that training they may also get
some income, so they can get the skills they need.
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FEDERAL
Congresswoman Hillary Scholten visits Muskegon
On April 25th, Congresswoman Scholten formally announced that the City of Muskegon was awarded a
Congressional Project Funding grant for $380,000.
The funds will be used to purchase Modular Vehicle Barriers to prevent vehicle-born mass casualty incidents
during large community festivals, events, and parades. The system will replace traditional wooden or concrete
road closure barriers. Providing maximum protection against moving vehicles from entering areas where
pedestrians attend our community events has become an increased priority.
House Passes Peters Bipartisan Legislation to Extend Federal Support for Local Fire Departments
May 9, 2024
Bipartisan legislation authored by U.S. Senator Gary Peters (MI), Chairman of the Homeland Security and
Governmental Affairs Committee, to extend federal programs that help support local fire departments across the
country has passed the House. The bill would reauthorize the Federal Emergency Management Agency’s (FEMA)
Staffing for Adequate Fire and Emergency Response (SAFER) grant program, the Assistance to Firefighters Grant
(AFG) program, and the United States Fire Administration (USFA). The programs are set to expire this year and are
used by local fire departments to address staffing needs, purchase equipment, develop fire training and education
programs, and improve emergency medical services. Peters has led the effort in the Senate to reauthorize these
essential programs. The bill now moves back to the Senate for final passage.
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Agenda Item Review Form
Muskegon City Commission
LPC Meeting Date: May 22, 2024 Title: Lake Front Development Discussion
Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office
Brief Summary:
The Commission will hear a presentation from Sand Products (Mart Dock) about possible shipping
opportunities on the Great Lakes and here in Muskegon.
Detailed Summary & Background:
Sand Products (Mart Dock) representatives will present to the Commission on port/shipping
opportunities on the Great Lakes. The presentation will take a high-level view of how Muskegon could
contribute to the future of shipping on the Great Lakes and discuss possible sites along Muskegon
Lake that lend themselves to port operations.
Following the presentation, Sand Products, staff, and the Commission will engage in a conversation
about how a conversation on port development could move forward. This conversation will also
include the topic of public access to water and how port operations can work together in harmony
with public access.
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:
Discussion Only
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes:
Max McKee, Chuck Canestraight, &
Information Scott Musselman
Technology
Other Division Heads
Communication
Legal Review
Agenda Item Review Form
Muskegon City Commission – Legislative Policy Committee
Commission Meeting Date: May 22, 2024 Title: Time-Sensitive Land Acquisition Request
Submitted By: Mayor Ken Johnson Department: City Commission
Brief Summary:
Consideration of the City pursuing a DNR Trust Fund grant to acquire property adjoining Hartshorn Park
& Marina for recreational purposes.
Detailed Summary & Background:
With more than 3 acres of property within the Hartshorn Village development recently being listed for
sale, the City has an opportunity to acquire this land. Link to property sale listing >>
https://my.flexmls.com/TerryPuffer/search/shared_links/ALDm1/listings/20240425193816427453000000
The property in question is part of the Hartshorn Village Planned Unit Development, which was first
approved by the City Commission on February 26, 2019. Since then, the PUD has been amended, the
property has changed ownership, and two houses on site have been constructed. The initial PUD
envisioned the construction of 55 houses. The property is now being marketed for sale altogether to
prospective developers and investors as well as for sale by parcel to individuals.
While the regular cycle deadline to apply for a DNR Trust Fund grant to acquire land has passed already
this year. The City may pursue a Time-Sensitive Land Acquisition Request through the DNR. If desired,
the City would petition the Michigan Natural Resources Trust Fund (MNRTF) Board to invite the City to
submit a formal request for a time-sensitive land acquisition request. If an invitation to apply is extended,
then the City may proceed with developing and submitting a grant request. The application process
requires two land value appraisals to be conducted, with one selected by the MNRTF, and a public
meeting to be held on the grant request and potential land acquisition.
Of note, it is expected that at least 25% of the approved land value will need to be matched by the City.
So, if the property being acquired with the grant were valued at $1 million, then the City would need to
provide a matching value of at least $250,000. This matching value could be satisfied by a portion of the
property being donated or the sale price being discounted from the appraised value. Alternatively, the
matching value could be paid by the City directly or via third-party monetary donation/s.
The purpose of bringing this matter to the City Commission’s Legislative Policy Committee is to gauge
interest in pursuing a time-sensitive land acquisition grant through the DNR Trust Fund.
Additional information for reference:
https://www.michigan.gov/dnr/about/boards/mnrtf/history-of-the-michigan-natural-resources-trust-fund
https://www.michigan.gov/dnr/buy-and-apply/grants/rec/mnrtf
https://www.michigan.gov/dnr/-
/media/Project/Websites/dnr/Documents/Forms/folder1/PR1902_TimeSensitiveLandACQUISITION_REQUEST.pdf
Goal/Focus Area/Action Item Addressed:
• Destination Community & Quality of Life focus areas
o Improved access to the waterfront
o Enhanced Parks & Recreation Department and services
• Financial Infrastructure Action Item 2022 – 4.2: Take advantage of external revenue sources
Amount Requested: Not applicable at this time. Budgeted Item:
Yes No N/A
Fund(s) or Account(s): Not applicable. Budget Amendment Needed:
Yes No N/A
Recommended Motion: This item is for discussion only.
Approvals: Not applicable. Guest(s) Invited / Presenting:
Yes
No
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