Approved Agreements and Contracts 2025/03/25 Purchase Agreement for 312 Jackson

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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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