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| CITY OF
MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 24, 2025 Title: Sale of 300, 310, & 370 Allen
Submitted by: Samaniha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is seeking authorization to sell the City-owned vacant lots at 300, 310, & 370 Allen 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
lots at 300, 310, & 370 Allen for $9,000 (75% of the True Cash Value of $12,000) plus half of the closing
costs, and the fee to register the deed. Sjaarda Homes and Properties LLC (Derek Sjaarda) will be
constructing a duplex and an accessory dwelling unit (ADU) on each property. 300 Allen is adjacent
to the current location of the Angell Neighborhood Association (NA} community garden (290 Allen).
The Angell NA has given an official letter of support for the development of the lots.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Goal/Focus Area/Action Item 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 Accouni(s): Budget Amendment Needed:
n/a Yes No N/A | x
Recommended Motion:
Authorize staff to sell the City-owned vacant lots at 300, 310, & 370 Allen to Sjaarda Homes and
Properties LLC (Derek Sjaarda)}.
Approvals: Guest(s) Invited / Presenting:
immediate Division
No
Head
Information
Technology
Other Division Heads
Communication
Legal Review
PURCHASE AND DEVELOPMENT
AGREEMENT
This Purchase and Development Agree
ment (“Agreement”) is made June 24,
2025 (“Effe ctive Date”),
between the City of Muskegon, a Michigan
municipal corporation, of 933 Terrace Street,
Michigan 49440 (“City”), and Sjaarda Muskegon,
Homes and Properties LLC, Derek Sjaard
a, 15131 Blueberry
Ct, West Olive MI, 49460 (“Developer”
), with reference to the following facts:
Background
A. Developer proposes to purchase and devel
op three (3) vacant properties owned by
which are located in the City of Muskeg on, Muske City
gon County, Michigan, and each commo
nly known and
legally described on the attached Exhibi t A (each
property individually, a “Parcel” and collectively
“Project
Property”).
B. City and Developer desire to establish the term
s, covenants, and conditions upon which
City will sell and Developer will purchase and develo
p the Project Property. Developer intends to develo
p
on each of the Project Properties one (1) duplex
and one (1) accessory dwelling unit (ADU), for
a total of
three (3) duplexes and three (3) ADUs. (the “Project”),
Therefore, for good and valuable consideratio
n, the parties agree as follows:
l. 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
$9,000.00,
which shall be paid in cash or other immediately available funds
at Closing (defined below) less the $500
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 Develope
r shall have
a period of Twenty-Four (24) 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 constructi
on
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 ali 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 300 Allen, Developer would be reimbursed $1,800.00,
which is 60% of the $3,000.00 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 duplex and an ADU on each of the
Project Properties, the quit claim deed conveying the Project Property to Developer shall contain a ri ght 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 conditions 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 duplex and/or ADU.
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.
Tf any of the above conditions occur, City shal] automatically 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 Agreement, but in any event prior to Developer satisfying
the conditions set forth in Paragraph 4(a) or Paragraph 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 documents.
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 shal] 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 reasonably 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 im writing of the particular defects
claimed to either (a) remedy the objections, or (b) notify Developer 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, Developer may, at its option, upon written notice
to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation
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 Perinitted Exception, 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 responsible 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, boundaries, 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 encroachment 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 shalt 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 terminated 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 shal! 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 disclosure statements, City has not made, does not
make, and specifically disclaims any and all representations, 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, soit 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 Property of any hazardous substances; or (vi) any other matter
with respect to the Project Property. Developer acknowledges 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 investigation 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, Developer agrees to accept the respective Project Property
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 covenants in this Agreement, Developer acknowledges and agrees
that it has determined that the respective Project Property 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 delivery 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 authority to enter into and perform
Developer’s obligations under this Agreement.
b. Litigation. No judgment is outstanding against Developer and no litigation, action,
suit, judgment, proceeding, or investigation is pending 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. ,
iF Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy,
receivership, reorganization, composition, or arrangement 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 Developer’s option, subject to the fulfillme
nt, 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. In 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 Developet’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 temedies 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 Commission’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.
5
b. Costs. The costs associated with this Agreement and the Closing shall be paid as
follows: (1) Developer shall pay any state and county transfer taxes in the amount required by law;
(it) 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; (tv) 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 Paragraph 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 real estate agents, brokers, or salespersons regarding 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.
fax or email: (iii) when sent ; Gi) when sent by
by a nationally~Tecognized
receipted overnight deli
fees prepaid; or (iv) when very service with deli
sent by United States firs very
t-class, registered, or cert
The notice shall be effectiv i fied mail, postage prepaid.
e immediately upon personal
delivery or upon tran
one day after depositing smission of the fax or
with a nationail y recogn email:
ized overnight delivery
sending by first class, regi service; and five (5 d
stered, or certified mail.
i NEC) days afte
Notices shall be sent to the
parties as follows:
To City: City of Muskegon
Attn.: Samantha Pulos, Code
Coordinator
933 Terrace Street
Muskegon, MI 49440
To Developer: Sjaarda Homes and Properties LLC
Derek Sjaarda
15131 Blueberry Ct
West Olive MI 49460
Email: disjaarda@gmail.com
Cell: 616-723-7130
17. Miscellaneous.
a, Governing Law, This Agreement will be governed by and interpreted in
accordance with the laws of the state of Michig
an.
b. Entire Agreement. This Agreement constit
utes the entire 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 subject matter of this
Agreement. All contemporaneous or prior
negotiations and representations have been merged
into this Agreement.
c. — Amendment. This Agreement shall not be modifie
d or amended except in a
subsequent writing signed by all parties.
d. Binding Effect. This Agreement shall be binding upon and
enforceable by the
parties and their respective legal representatives, permitted successors,
and assigns.
e. Counterparts, This Agreement may be executed in counterparts, and
each set of
duly delivered identical counterparts which includes all signatories, shall
be deemed to be one
original document.
f. Full Execution. This Agreement requires the signature of all parties. Until fully
executed, on a single copy or in counterparts, this Agreement is of no binding 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 shall
constitute a waiver by such party of any other provision of this Agreement.
h, Severability, Should any one or more of the provisions 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 i any way be impaired or
affected. .
i. No Reliance. Each patty acknowledges that it has had full opportunity to consult
with legal and financial advisors as it has been deemed 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 otherwise 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 written approval of the other party, in which approval
may be withheld in the other party's sole discretion.
k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in
connection with this Agreement, the Muskegon County Circuit Court shall have exclusive 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 mw Properties LLC
Name: Derek Syaarda _
Name* Ken Johnsdn
Title: Mayor Dated: GI 2S | 28
Dated: A-1-2035
Oa
Name: Ann Marie Meisch
vcs
Bae
Title: City Clerk
Dated:
Exhibit A
The following described premises located in the City of Muskegon, County of Muskegon, State of
Michigan, and legally described as follows:
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 33 FEET LOT 10
WEST 16.5 FEET LOT 11 BLOCK 210
Address: 300 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-210-0010-10
Price: $3,000.00
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 49.5 FEET LOT 11
BLOCK 210
Address: 310 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-210-0011-01
Price: $3,000.00
Legal Description: CITY OF MUSKEGON
REVISED PLAT 1903 LOT 10 BLK 211
Address: 370 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205- 211-0010-00
Price: $3,000.00
17 June 2025
From: Angell Neighborhood Association
To: City of Muskegon, City Commission
Dear Commissioners:
In regard to the Angell Grows Community Garden, we understand that the present location, was a
temporary location due to pending development.
We support the garden and agree with the relocation of this garden to allow the development at this
current site. We do not agree with the garden being moved to McCrea Park.
We would like to express our support of the housing that is proposed to be built at the location of the
current garden, 290 & 300 Allen Ave. We are informed every year at the beginning of each Adopt A Lot
Program season that all vacant lots in the program are for-sale and could be bought and built on at any
time. We support the efforts of the City to development housing, and understand that we are at a
shortage throughout the City. We are supportive of the recent and ongoing new homes being
constructed in Angell Neighborhood and throughout the City.
Sincerely,
Angell Neighborhood Association
a Ka AN ouch Name
Laia\nbe Woo ‘Ao Ai datitie
Gr 1 aA Oas Date
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