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CITY OF
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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
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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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