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CITY OF
= wv @ MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 26, 2025 Title: First Amendment to Municipal Services
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 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 at the senior living component, Village at Park Terrace and Park Terrace
Apartments. 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 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 the Municipal Services agreement for Village at Park Terrace as presented and
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 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 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]
IN WITNESS WHEREOF, the undersigned parties have executed this Amendment as of
the date first set forth above.
CITY:
CITY OF MUSKEGON
py: Ne uliarn en——
Cale “Ken Johnsoh
.
Mayor
i..
Name: 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: hc CS
Adam Stein
EB
Manager
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