Approved Agreements and Contracts 2025/12/09 Amendment to Purchase and Development Agreement 450, 454 Orchard

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                                            |   CITY OF


                                                MUSKEGON

                              Agenda Item Review Form
                              Muskegon City Commission

Commission Meeting Date: December 9, 2025            Title: Amendment fo Purchase and Development
                                                     Agreement: 450/454 Orchard.


Submitted by: Samantha Pulos, Code                   Department: Planning
Coordinator


Brief Summary:
Staff is seeking authorization to amend the Purchase and Development Agreement with RSW
Holdings LLC and Barrowstone Capital LLC {approved on June 10, 2025).

Detailed Summary & Background:
Staff is seeking authorization to amend the Purchase and Development Agreement (attached) with
RSW Holdings LLC and Barrowstone Capital LLC (approved on June 10, 2025) to allow the total
number of homes to be built to be four (4) instead of the original five (5). This agreement approved
the purchase of three parent parcels that were to be split into five build-able lots for the construction
of a single-family home on each lot. 450 Orchard was split into two lots, resulting in a new address of
454 Orchard. After construction began, the placement of two houses on this lot resulted in
encroachment on neighboring properties. Maximizing density here would cause an undue hardship
for the neighbor. Staff would like to seek approval for an amendment and combine this lot back to its
original dimension and allow the developer to build one single-family home.

Goal/Action ltem:
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:
Staff would like to amend the original purchase and development agreement and allow developer
to build one single-family home on 450 Orchard,

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 authorize the Code Coordinator to amend the Purchase and Development Agreement with RSW
Holdings LLC and Barrowstone Capital LLC {approved on June 10, 2025), as described, and to have
the Mayor and Clerk sign the purchase agreement addendum.
Approvals:             Name the Policy/Ordinance Followed:
                       Master Plan, Zoning Ordinance, Policy for the Use
Immediate Division
                       & Sale of City-Owned Residential Property
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                                   ADDENDUM NO. 1 TO LOT PURCHASE AND DEVELOPMENT AGREEMENT

                                                This      Addendum       No.   |   to   Lot    Purchase      Agreement   ("Addendum")         is
                                   entered        into December 9, 2025, between RSW Holdings LLC and Barrowstone Capital
                                   LLC, Michigan limited liability companies, of 691 Ottawa Beach Road, Holland, MI, 49423
                                   ("Purchaser") and the City of Muskegon, a Michigan municipal corporation, of 933 Terrace
                                   Street, Muskegon, Michigan 49440 ("Seller") as follows:


                                                                                   BACKGROUND

                                   A. On June 10, 2025, Purchaser and Seller entered into a Lot Purchase Agreement (the
                                          "Agreement"), which included the purchase of three (3) Lots located in the City of
                                          Muskegon, Muskegon County, Michigan (the "Land").

                                   B.     The parties now seek to delete and replace Letter “B”, under the “Background”
                                          Section (page 1) as set forth below.

                                                                                   AGREEMENT

                                    Based upon satisfactory consideration, acknowledged by the parties, they agree as follows:

                                    1.      450 Orchard Ave has been split into Parcel No. 61-24-205-045-0017-01 (450 Orchard
                                            Ave) and Parcel No. 61-24-205-045-0017-10 (454 Orchard Ave). These parcels will be
                                            combined into the original parent parcel of 450 Orchard Ave. One single-family
                                            home will be built. This will result in the total of single-family homes to be built
                                            under this agreement to be four (4) homes..

                                    2.      Except as modified           by Addendum No. 1, the parties verify and affirm the Lot
                                            Purchase Agreement.

                                    IN WITNESS WHEREOF, the parties hereto have executed this Addendum No. 1 as of
                                    the date first written above.



                        SELLER:                                                               PURCHASER:

                        CITY OF MUSKEGON                                                      RSW_ Holdings LLC


                               N, (dower                                                      Name Ron Webb
                        By:_             (UW                                                  Dated:
                        Name: Ken Johnson
                        Title:       Mayor         ,
                        Dated: / ye Ge 9095                                                   Barrowstone Capital LLC
                                                                                              By: taylor Velb-               Taras esas est

                                                                                              Name: Taylor Webb                        —
                        ay Qu
                        Name:
                               aN
                                     Ann Marie Meisch
                                                         _t
                                                              drove de
                                                                     .
                                                                                              Dated:
                        Title:       City Clerk                 Y
                        Dated:           VR e)~2.90725

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