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7 CITY OF
MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 26, 2025 Title: First Amendment to Municipal Services
Agreement 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 Apartments is
seeking to sell the portfolio to new ownership. To preserve and lengthen the affordability period, a
new Municipal Services Agreement 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 Municipal Services Agreement {MSA} 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 establishes a new Municipal Services Agreement (MSA) of 2% of
the annual shelter rent. 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 requirements 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 fo 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 ltem:
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 the Municipal Services agreement for Park Terrace Apartments
as presented and to authorize the Clerk and Mayor to sign.
CITY OF MUSKEGON
FIRST AMENDMENT TO MUNICIPAL SERVICES AGREEMENT
This First Amendment (this “Amendment”) to the Municipal Services Agreement 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 Municipal Services Agreement dated
effective as of May 27, 2025 (the “Original Agreement’’);
WHEREAS, the Original Agreement provides that the City will provide certain municipal
services to the project described 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 3 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|
ent as of
IN WITNESS WHEREOF, the undersigned parties have executed this Amendm
the date first set forth above.
CITY:
CITY OF MUSKEGON
Name: ‘Ken Johns
I~
Tithe:, Mayor
Name: Ann Meisch
Title: City Clerk
OWNER:
PARK TERRACE LIMITED DIVIDEND HOUlity SING
ASSOCIATION, LLC, a Michigan limited liabi
company
By: Liam Fund Manager LLC,
a Colorado limited liability company,
its manager 2 “
By: LE
Adam Stein
Manager
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