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CITY OF
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m@ MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 26, 2025 Title: First Amendment to the PILOT Agreement for
Village at Park Terrace Acquisition
Submitted by: Jonathan Seyferth, City Manager, | Department: Manager's Office
Jake Eckholm, Development Services Director
Brief Summary:
The existing ownership of Village at Park Terrace Senior Apartments and Park Terrace Apartments is seeking to sell
the portfolio to new ownership. To preserve and lengthen the affordability period, a new Contract 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 plan to invest significantly in the facilities over the coming years. To finance this
project, they are requesting an updated and restated PILOT for both the senior living components, Village at Park
Terrace and 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 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 Accouni(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
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 VILLAGE AT 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
By: Malone
Name: Ken Johnsoh
ANGEee . ;
ere
oe Ann Meisch
Title: City Clerk
OWNER:
VILLAGE AT PARK TERRACE LIMITED
DIVIDEND HOUSING ASSOCIATION, LLC, a
Michigan limited liability company
By: Liam Fund Manager LLC,
a Colorado limited liability company,
its manager
By:
Adam Stein
Manager
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