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CITY OF
=~”@ MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 26, 2025 Title: First Amendment to PILOT Agreement for
Park Terrace Apartments Acquisition
Submitted by: Jonathan Seyferth, City Manager, | Department: Manager's Office
Jake Eckholm, Development Services Director
Brief Summary:
The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartmenis is
seeking to sell the portfolio to new ownership. To preserve and lengthen the affordability period, a
new Coniract for Housing Exemption is required for both projects. The Commission approved this on
May 27, 2025 - this is an amendment to extend the Property Acquisition Deadline to December 1,
2025 (original date was September 1, 2025).
Detailed Summary & Background:
As noted in May, the new owners hope to put significant capital investment into the facilities in the
coming years, and in order to finance the project and make that possible, they are requesting an
updated and restated PILOT on both Park Terrace as well as the senior living component, Village at
Park Terrace. None of the details of the agreements have changed, other than the Acquisition
Deadline, which is being extended from September 1, 2025, to December 1, 2025. The agreement
reflects a slight reduction in the PILOT rate to 4% of annual shelter rents but establishes a Municipal
Services Agreement (MSA) Charge in a separate agreement. This is to our advantage because the
total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the
PILOT payment. This document is the contract for housing exemption for up to 25 years, which will
require adherence to MSHDA-regulated rents per requiremenis in our local ordinance.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
This is the first amendment to a PILOT agreement that the Commission approved on May 27, 2025.
Amount Requested: Budgeted Item:
N/A Yes No N/A | X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A | X
Recommended Motion:
To approve the First Amendment to Amend and Restated Contract for Housing Exemption, and
authorize the Clerk and Mayor to sign.
CITY OF MUSKEGON
FIRST AMENDMENT TO AMENDED AND RESTATED
CONTRACT FOR HOUSING EXEMPTION
This First Amendment (this “Amendment’) to the Amended and Restated Contract for Housing
Exemption dated as of August 26, 2025 by and between CITY OF MUSKEGON, whose address is 933
Terrace Street, Muskegon, Michigan (the “City”), and PARK TERRACE LIMITED DIVIDEND
HOUSING ASSOCIATION, LLC, a Michigan limited liability company whose address is 7451 N 63
St., Longmont, Colorado 80503 (the “Owner’’) is made pursuant to the following terms. The Owner and
the City shall sometimes be referred to herein as the “Parties”.
RECITALS
WHEREAS, the Owner and the City entered into that certain Amended and Restated Contract for
Housing Exemption dated effective as of May 28, 2025 (the “Original Agreement”);
WHEREAS, the Original Agreement provides for a tax exemption described more particularly
therein, contingent upon the Owner acquiring certain real property described in Exhibit A of the Original
Agreement by September 1, 2025 (the “Original Property Acquisition Deadline”); and
WHEREAS, the Owner and the City desire to amend the Original Agreement to extend the
Original Property Acquisition Deadline in accordance with this Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual convents contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
1. Amendment. Section 1 of the Original Agreement is hereby amended such that the Original
Property Acquisition Deadline is December 1, 2025.
2. Counterparts. This Agreement may be executed in several counterparts and an executed
copy hereof may be relied upon as an original.
3. Ratification. Except as specifically modified hereby, the Original Agreement shall remain
in full force and effect and is hereby ratified and confirmed by the Parties. To the extent any of the terms
and provisions of the Original Agreement are inconsistent with the terms and provisions of this
Amendment, the terms and provisions of this Amendment shall govern and control.
4. Additional Amendment. Neither this Amendment nor any provision hereof may be waived,
modified, amended, discharged or terminated except by an instrument in writing signed by the Parties,
and then only to the extent set forth in such instrument.
[Signature Page Follows]
IN WITNESS WHEREOF, the undersigned parties have executed this Amendment as of
the date first set forth above. ‘
CITY:
CITY OF MUSKEGON .
Name: Ken Johnson /
Title: Mayor
Name: Ann Meisch
Title: City Clerk
OWNER:
PARK TERRACE LIMITED DIVIDEND HOUSING
ASSOCIATION, LLC, a Michigan limited liability
company
By: Liam Fund Manager LLC,
a Colorado limited ligpility company,
its manager CL
4
By:
Adam Stein
Manager
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