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20n5-2a5-CB)
7 CITY OF
ENP TS MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: March 25, 2025 Title: Sale of 312 Jackson
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is seeking authorization to sell the City-owned vacant lot at 312 Jackson 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
lot at 312 Jackson for $2,625 (75% of the True Cash Value of $3,500) plus half of the closing costs, and
the fee to register the deed. Sjaarda Homes and Properties LLC (Derek Sjaarda) will be constructing a
single-family home on the property.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Focus Area/Action ltem 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 312 Jackson to Sjaarda Homes and Properties LLC
(Derek Sjaarda).
Approvals: Guesi(s) Invited / Presenting:
PURCHASE AND DEVELOPMENT AGREEMENT
This Purchase and Development Agreement (“Agreement”) is made March 25, 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 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) single-family home. (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 $2,625.00,
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,
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 312 Jackson, Developer would
be reimbursed $1,575.00,
which is 60% of the $2,625.00 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 single-family home on each of 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 conditio
ns 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 single-f
amily home.
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 automat
ically 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 Agreem
ent, but in any event prior to Developer satisfying
the conditions set forth in Paragraph 4(a) or Paragra
ph 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 documen
ts.
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 reasonabl
y 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 Develope
r 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, Develope
r may, at its option, upon written notice
to City, either (i) terminate this Agreement and neither City
nor Developer shall have any further obli gation
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 Exceptio
n, 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 responsi
ble 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, boundari
es, 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 encroac
hment 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 terminat
ed 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 disclosu
re statements, City has not made, does not
make, and specifically disclaims any and all represen
tations, 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 Proper
ty of any hazardous substances; or (vi) any other matter
with respect to the Project Property. Developer acknow
ledges 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 investig
ation 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, Develo
per agrees to accept the respective Project Propert
y
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 covenan
ts in this Agreement, Developer acknowledges
and agrees
that it has determined that the respective Project Propert
y 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 deliver
y 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 authori
ty to enter into and perform
Developer’s obligations under this Agreement.
b. Litigation. No judgment is outstanding against Develo
per and no litigation, action,
suit, judgment, proceeding, or investigation is pendin
g 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 limitati
on, bankruptcy,
receivership, reorganization, composition, or arrange
ment 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 Developet’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. \n 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 Commissi
on’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;
(i1) 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 Paragra
ph 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 teal estate agents, brokers, or salespersons regardi
ng 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 commun
ications 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
Notices shall be sent to
the patties as follows:
To City: City of Muskegon
Attn.: Samantha Pulos, Cod
e Coordinator
933 Terrace Street
Muskegon, MI 49440
w/ copy to: Parmenter Law
Attn.: John C. Schrier
601 Terrace Street, Suit
e 200
Muskegon, MI 49440
Email: john@parmenterlaw.
com
To Developer: Sjaarda Homes and Properti
es LLC
Derek Sjaarda
1513] Blueberry Ct
West Olive MI 49460
Email: disjaarda@gmail.com
Cell: 616-723-7130
17. Miscellaneous.
a. Governing Law. This Agre
ement will be governed by
accordance with the laws of the and interpreted in
state of Michigan.
db. Entire Agreement. This Agreement
constitutes the entir e 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 subje
ct matter of this Agreement. All
contemporaneous or prior
negotiations and representations have
been merged into this Agreement.
Cc. Amendment. This Agreement shall not
be modified or amended except in a
subsequent writing signed by all partie
s.
d. Binding Effect. This Agreement shall
be binding upon and enforceable by
parties and their respective legal repres the
entatives, permitted successors, and
assigns.
e. Counterparts, This Agreement may
be executed in counterparts, and each set of
duly delivered identical counterparts whic
h includes all signatories, shall be deem
original document. ed to be one
f. Full Execution. This Agreement requires the
signature of all parties, Until fully
executed, on a single copy or in count
erparts, this Agreement is of no bindi
ng 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
constitute a waiver by such party of shall
any other provision of this Agreement.
h. Severability. Should any one or more of the provisi
ons 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 deeme
d 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 otherw
ise 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 writte
n approval of the other party, in which approval
may be withheld in the other party's sole discret
ion.
k. Venue and Jurisdiction. The parties agree
that for purposes of any dispute in
connection with this Agreement, the Muske
gon County Circuit Court shall have exclus
ive 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 esa a
By: O Nein lems
j
Name: Ken Johnson
we
Name: Derek Sj da -
Dated? FB\AanXn\as
Title: MAS ye 7 VS
Dated:
me
Name: Ann Marie Meisch
Title: City Clerk _
Dated: awh Hoey 28
Exhibit A
The following described prem
ises located in the City of
Muskegon, County of Mus
Michigan, and legally describe kegon, State of
d as follows:
Legal Description: CITY OF
MUSKEGON REVISED PLA
SD LOT FOR ALLEY SBJ T OF 1903 LOT 9 BLK 141
T TO ESMNT RECOR'D EXC N8ET
L:89 P:531
Address: 312 JACKSON
AVE, MUSKEGON, MI
49442
Parcel #: 61- 24-205-141-0009-
00
Price: $2,625.00
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