Approved Agreements and Contracts 2026/01/27 Housing Tax Exemption Resolution Brinks & Arnoldink Prop.

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                                              CITY OF


                                m= ~”@ MUSKEGON

                          Agenda Item Review Form
                          Muskegon City Commission

Commission Meeting Date: January 27, 2026           Title: Resolution for Housing Tax Exemption - Brinks
                                                    and Amoldink Properties, LLC


Submitted by: Jake Eckholm, Development             Department: Economic Development
Services Director


Brief Summary:
Dave Arnoldink, through Brinks and Arnoldink Properties LLC, is requesting a Payment in Lieu of Taxes
for their workforce housing project at 502 Oak Avenue, which requires a resolution setting the annual
PILOT rate.


Detailed Summary & Background:
Dave Armoldink, through Brinks and Arnoldink Properties, LLC is working with Mrs. Kara Novak as the
lender and developer along with Mr. Derek Sjaarda as the builder to add to our stock of income-
restricted workforce housing in the communily. If approved, this parcel will feature a duplex and an
accessory dwelling unit, utilizing our 2024 Zoning Reforms to increase density to meet the housing
need. These units will be restricted to families or individuals that fall below 120% AMI for their
household size, per MSHDA's annual rent limits for Muskegon County. The term of the restricted use is
15 years, along with the companion Workforce Housing Restrictive Covenant in this agenda packet.

Goal/Action Item:
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:

Amount Requested:                                   Budgeted lfem:
NA                                                   Yes            No           N/A | |
Fund(s) or Accouni(s):                              Budget Amendment Needed:
NA                                                   Yes            No     a N/A
Recommended Motion:
Motion to approve the resolution for housing tax exemption as presented and to authorize the clerk
To sign.


Approvals:                                          Name the Policy/Ordinance Followed:
 Immediate Division       |                         Chapter 82-52 of the City of Muskegon Code of
 Head                                               Ordinances
                          Resolution Setting Annual Service Fee
                         for the Workforce Housing Development
                         by Brinks and Arnoldink Properties, LLC



Whereas,    Brinks and Arnoldink Properties, LLC (the “Sponsor’”), has applied to the City of
            Muskegon for a determination that a proposed workforce housing project sponsored
            by it at various properties represented on Exhibit A is entitled to the exemption
            from taxes authorized by Chapter 82 of the City of Muskegon Code of Ordinances;
            now therefore, be it


Resolved,   that the proposed workforce housing project is within the class of housing
            developments entitled to an exemption under Chapter 82, if it meets the following
            contingencies:
            a.     Sponsor shall provide documentation to the City substantiating ownership
                   of the subject properties.
            b.     Construction of at least 3 units of the proposed workforce housing project
                   shall be commenced within twelve (12) months from the date of the
                   Michigan     State Housing Development Authority’s              (MSHDA”)
                   notification of exemption, or this resolution shall be void and of no effect.
            c.     For the life of this Workforce Housing Resolution, 100% of the dwelling
                   units in the proposed workforce housing project will be restricted to rental
                   units or other housing options that are reasonably affordable to, and
                   occupied by, a household whose total household income is not greater than
                   120% of the area median income published by the Michigan Statewide
                   Housing Development Authority.
            d.     The Sponsor shall submit an affidavit to MSHDA in the form required by
                   MSHDA for certification that the workforce housing project is eligible for
                   the workforce housing exemption.
            e.     Upon receipt of notification from MSHDA that the workforce housing
                   project is eligible for a workforce housing exemption, the Sponsor shall file
                   the certified notification of exemption with the City Assessor before
                   November 1 of the year preceding the tax year in which the exemption is to
                    be effective; and,
            f.      Sponsor shall record a restrictive covenant in a form acceptable to the City
                    Attorney. The restrictive covenant shall be recorded in the register of deeds
                    for the county in which the workforce housing project is located and shall
                    comply with the requirements of Chapter 82; and, further be it

Resolved,   that in lieu of ad valorem property taxes, the Sponsor shall pay an annual service
            charge equal to ten percent (10%) of the “Annual Shelter Rents” as defined in
            Section 82-52 for that portion of the workforce housing project occupied for
            Workforce Housing; and, further be it
Resolved,    that annually, no later than April 29, the Sponsor shall provide the City Assessor
             the Sponsor’s budget for Annual Shelter Rent for the current calendar year and a
             copy of Sponsor’s financial statements for the preceding calendar year, prepared in
             accordance with generally accepted auditing standards or, if Sponsor is not subject
             to an audit requirement, Sponsor’s compiled financial statements for the preceding
             calendar year prepared in accordance with generally accepted accounting principles
             and certified by Sponsor; and, further be it


Resolved,    that the tax exempt status granted by this Resolution shall remain in effect for 15
             years, unless otherwise terminated pursuant to Chapter 82 or this Resolution; and,
             further be it


Resolved,    that all portions of Chapter 82 are hereby incorporated by reference; and, further be
             it


Resolved,    that this Resolution may be assigned by the Sponsor only to subsequent owners of
             the workforce housing project who shall agree to abide to its terms. If not assigned,
             to and accepted by subsequent owners of the workforce housing project, it shall
             automatically terminate; and further be it


Resolved,    that the Mayor and City Clerk execute a contract with the Sponsor providing the
             tax exemption and acceptance of payments in lieu of taxes as defined within this
             resolution and its application, such contract subject to approval as to substance by
             the City Manager and as to form by the City Attorney. _


YEAS: Kochin, St.Clair,      Johnson, Kilgo, German, and Jackson


NAYS: none
                                         I hereby certify that the above Resolution was adopted
                                         by the City Commission of the City of Muskegon at its
                                         regular meeting held on January 27, 2026, in the
                                         Commission Chambers, City Hall, 933 Terrace,
                                         Muskegon, Michigan.

                                                     AVN Owen
                                         Ann Meisch, City Clerk
                            EXHIBIT A




502 OAK AVENUE - CITY OF MUSKEGON
REVISED PLAT OF 1903
LOT 10 BLK 41

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