Approved Agreements and Contracts 2026/01/13 Amendment to Purchase and Development Agreement 286/294 Myrtle

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                                                                             2026-05 Ct)

                                               CITY OF

                                gi wy ml MUSKEGON
                           Agenda Item Review Form
                           Muskegon City Commission

Commission Meeting Date: January 13, 2026            Title: Amendment to Purchase and Development
                                                      Agreement: 286/294 Myrtle

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:
In an effort to minimize disruption of established neighboring properties due to encroachment issues,
staff is seeking authorization to amend the Purchase and Development 2025)Agreement (attached) with
RSW Holdings LLC and Barrowstone Capital LLC (approved on June 10,              to allow the total
number of homes to be built to be three (3) instead of the currently obligated four (4).
The original number of housing units in this agreement was five (5), reducethe  d to four (4) after a
previously approved amendment (attached). This agreement approved ctionpurcha              se of three
parent parcels that were to be split into five build-able lots for the constru       of a single- family
home on each lot. The first amendment, approved by the city commis450      sion on 12/9/25, reduced the
number of homes to be built on 450 Orchard from two (2) to one (1).            Orchard was split into wo
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.
Another property on the original purchase agreement, 286 Myrtle — later      split into two lots (286 & 294
Myrtle), has been found to also have encroachment issues. The house on       the property to the east
straddles the parcel line, as well as, the location of a neighbor's deck/shed/pa  rking area to the
northwest is extending onto the parcel (drawing attached: yellow=areas       of encroachment,
teal=proposed new house placement). Staff is recommending reduci back    ng the  builders’ obligation to
one home to be built here, to combine the current lots (286 & 294 Myrtle)            fo one lot, and
 adjusting the boundaries to accommodate the encroachment issues.
 Staff would like to seek approval for a second amendment for this agreem ent, and combine this lot
 back to its original dimensions and allow the developer to build onesingle-family home.

 Goal/Action Item:
 9027 Goal 2: Economic Development Housing and Business
 Is this a repeat item?:
 Explain what change has been made to justify bringing it back fo Commission: and allow developer
 Staff would like to amend the original purchase and development agreement
 to build one single-family home on 286 Myrtle.
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 Purcha
                                                      se 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 addend
                                                        um.




Approvals:                                       Name the Policy/Ordinance Followed:
Immediate Division                               Master Plan, Zoning Ordinance, Policy for the Use
Head                                             & Sale of City-Owned Residential Property

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                                    ADDENDUM NO. 2 TO LOT PURCHASE AND DEVELOPMENT AGREEMENT
                                             This Addendum No. 2 to Lot Purchase Agreement ("Addendum") is entered
                                     into January 13, 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").

                                             On December 9, 2025, Purchase and Seller executed Addendum No. 1 to replace Letter
                                             “B”, under the “Background” Section (page 1).

                                             The parties now seek to further amend Letter “B”, under the “Backpround” Section (page
                                             1) as set forth below, to account for the boundary adjustment of 286 Myrtle (Parcel No.
                                             61-24-205-199-0008-01) and 294 Myrtle (Parcel No. 61-24-205-199-0008-10).
                                                                               AGREEMENT


                                      Based upon satisfactory consideration, acknowledged by the parties, they agree as follows:
                                       1.      286 Myrtle Ave has been split into Parcel No. 61-24-205-199-0008-01 (286 Myrtle Ave)
                                               and Parcel No. 61-24-205-199-0008-10 (294 Myrtle). These parcels will be combined
                                               into the original parent parcel of 286 Myrtle and the boundary lines adjusted to address
                                               encroachment issues with adjacent properties to the east and northwest. 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 three (3) homes.

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

                                       IN WITNESS WHEREOEF, the parties hereto have executed this Addendum No. 2 as of the
                                       date first written above.



                           SELLER:                                                        PURCHASER:

                                                                                          RSW Holdings LLC
                            CITyP*) USK#GO
                            By: _ , ua                      ee                            By: _| ame                        ee ae iF
                           Name: Ken Johrison                                             Name: Ron Webb
                            Title:       Mayor                 ‘                          Dated:
                            pated:            _[-(3-GODB
                            By:   OR        S      GL LW)                                  Barrowstone Capital LLC
                                                                                           By: | zoarzees                   Ee [
                            Name: Ann Marie Meisch
                            Title:          City Clerk                                     Name:
                            Dated?           Yn Ve 2d bs                                   Dated:

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