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HO2b-/F (4)
CITY OF
7& MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: March 10, 2026 Title: Sale of 663, 647, 1557 Marquette, 768 Scott,
and 1160 Ambrosia.
Submitted by: Samantha Pulos, Code Department: Planning
Coordinator
Brief Summary:
Staff is seeking authorization to sell the City-owned vacant lots at 663, 647, 1557 Marquette, 748 Scott,
and 1160 Ambrosia to Landmark Construction LLC (Adam Hechi).
Detailed Summary & Background:
Landmark Construction LLC (Adam Hecht) would like to purchase the City-owned buildable lots at
663, 647, 1557 Marquette, 768 Scott, and 1160 Ambrosia to build duplexes and ADUs (accessory
dwelling units). 1160 Ambrosia will be split into two build-able lots; and will have a duplex and an ADU
built on each, for a total of 6 duplexes and 6 ADUs. All addresses will apply for a PILOT agreement.
The projected rent range for the duplexes will be $1700-$2000 per unit, and the ADUs will have an
estimated rent range of $750-$900. Landmark Construction is a locally owned company that Adam
Hecht operates alongside his daughter and son, Kara and Max.
Goal/Action ltem:
2027 Goal 2: Economic Development Housing and Business
ls this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
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 complete the sale of 663, 647, 1557 Marquette, 768 Scott, and
1160 Ambrosia, as describedin the attached purchase agreement and to have the Mayor and Clerk
sign the purchase agreement.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division x Master Plan, Zoning Ordinance, Policy for the Use
Head & Sale of City-Owned Residential Property
PURCHASE AND DEVELOPMENT AGREEMENT
This Purchase and Development Agreement (“Agreement”) is made March 10, 2026 (“Effective
Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street,
Muskegon, Michigan 49440 (“City”), and Landmark Construction LLC, a Michigan limited liability
company, of 1357 Marquette, Muskegon, Michigan 49442 (“Developer”), with reference to the following
facts:
Background
A. City is the owner of five (5) buildable lots, being 1557 Marquette, 663 Marquette, 768
Scott, 647 Marquette, and 1160 Ambrosia, more specifically described in attached Exhibit A. Prior to
closing, City shall split one or more of the lots into six (6) lots, more specifically described in attached
Exhibit B.
B. Developer proposes to purchase and develop five (5) vacant lots owned by City, which are
all located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally
described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project
Properties”).
C, City and Developer desire to establish the terms, covenants, and conditions upon which
City will sell and Developer will purchase and develop the Project Properties. Developer intends to develop
one duplex and one ADU (accessory dwelling unit) on each of the following Project Properties: 1557
Marquette, 663 Marquette, 768 Scott, 647 Marquette, and 1160 Ambrosia. The following parcels will be
split and then developed: 1160 Ambrosia (lot will be split into two buildable lots for a duplex and an ADU
to be built on each), for a total of six (6) duplexes and six (6) ADUs (the “Project”).
Therefore, for good and valuable consideration, the parties agree as follows:
1. Sale and Purchase of Project Properties. 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 Properties, subject to reservations, restrictions, and easements of record.
2, Purchase Price. The total purchase price for the Project Property shall be $17,687.50,
which shall be paid in cash or other immediately available funds at Closing (defined below) less the $1000
deposit that the Developer has paid to the City of Muskegon. The “Purchase Price” shall be allocated to
each lot as provided for in attached Exhibit B.
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 upon the completion of certain design standards for each
Parcel as further described herein.
3. Construction and Development Requirements.
a. Construction Dates. The parties acknowledge and agree that Developer shall have
a period of eighteen (18) 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.
a. Construction Details; Purchase Price Reimbursement. Developer’s construction
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 80% of the purchase price
for the Project Property upon Developer’s completion of construction of the Project. For the
purposes of this Agreement, “completion of construction” shall mean the issuance of an occupancy
permit by the City for every structure included in the Project.
4, Reversionary Interest. 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
following Project Properties: 1557 Marquette, 663 Marquette, 768 Scott, 647 Marquette, and 1160
Ambrosia. The following parcels will be split: 1160 Ambrosia (lot will be split into two buildable lots for
the construction of two duplexes and two ADUs) for a total of six (6) duplexes and six (6) ADUs (the
“Project”). On each of the Project Properties, each quit claim deed conveying a lot to Developer shall
contain.a reversionary interest of that lot (“City’s Reversionary Interest”), 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 this Parcel 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 this Parcel and beginning
installation of the approved duplex or ADU.
b. Developer does not complete construction of a duplex and an ADU residential
structure on this Parcel prior to expiration of the Construction Period, in which case title to this
Parcel 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 this Parcel. Provided, however, the parties agree to
reasonably negotiate an extension of the Construction Period up to a period of six (6) months for
any of the Project Properties that have a completed foundation before the expiration of the initial
Construction Period.
If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire
title to any or all of the Project Properties, 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 any or all of the Project Properties,
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 any or all of the Project Properties revert to City, City may retain the purchase price for such
Project Properties free and clear of any claim of Developer or its assigns. In the event of reversion of title
of any or all of the Project Properties, improvements made on such Project Properties shall become the
property of City. In no event shall the Project Properties 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 deeds
from City to Developer.
5. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a
single title commitment for an extended coverage ALTA owner’s policy of title insurance issued by
Transnation Title Agency (the “Title Company”) for the five (5) Project Properties in the amount of the
total purchase price for the Project Properties and bearing a date later than the Effective Date, along with
copies of all of the underlying documents referenced therein (the “Title Commitment”), with a copy of the
commitment and underlying documents to City. Developer shall cause the Title Company to issue a
marked-up commitment or pro forma owner’s policy with respect to the Project Properties 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 Properties (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 any of the’ Project Properties. If
objection to the title is made, City shall have thirty (30) days from the date it is notified in 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 as to the applicable parcel and neither
City nor Developer shall have any further obligation to the other pursuant to this Agreement as to that
parcel, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall
become a Permitted 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
Properties, and Developer or its surveyor or other agents may enter any of the Project Properties 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 Properties 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 thirty (30) days after disclosure, or terminate this Agreement as to that Parcel.
Developer may elect to purchase the Project Properties 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 Properties 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 shall notify City in writing of Developer’s intention prior to expiration of the 30-day Inspection
Period. If Developer so notifies City, this Agreement shall be terminated as to that Parcel 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 shall proceed to Closing
in accordance with the terms of this Agreement.
10. Condition of Project Properties. City and Developer acknowledge and agree that each
Parcel in the Project Properties 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 Properties, including without limitation, soil conditions,
and any environmental conditions; (ii) the suitability of the Project Properties for any or all of Developer’s
activities and uses; (iii) the compliance of or by the Project Properties with any laws, codes, or ordinances;
(iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Properties;
(v) existence in, on, under, or over the Project Properties of any hazardous substances; or (vi) any other
matter with respect to the Project Properties. Developer acknowledges and agrees that Developer has or
will have the opportunity to perform inspections of the Project Properties pursuant to this Agreement and
that Developer is relying solely on Developer’s own investigation of the Project Properties 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 Properties
acquired by Developer and waive all objections or claims against City arising from or related to such Project
Properties 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 Properties 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 Properties 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 is a Michigan limited liability company. 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.
C. 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 properties, 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 fulfillment, 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.
C. Parcel Combination and Split. City shall split one or more Parcels, creating a
total of 6 Parcels, as described in Exhibit B.
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 thirty (30) days after receipt of notice (other than Developer’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
thirty (30) days after receipt of notice, then Developer may either terminate this Agreement or
Developer may pursue its legal and/or equitable remedies 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 thirty (30) days after the Inspection Period (“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.
b. Costs. The costs associated with this Agreement and the Closing shall be paid as
follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law;
(ii) 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; (iv) Developer shall pay for the cost of recording the deed; (v) City shall the
costs to combine Parcels and split Parcels; and (vi) Developer and City shall each pay one-half of
any closing fees charged by the Title Company.
c. Deliveries. At Closing, City shall deliver one (1) quit claim deed, including each
of the Parcels (listed in Exhibit A), for the Project Properties and Developer shall pay the purchase
price. The quit claim deeds to be delivered by City at closing shall include the City’s Reversionary
Interest 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.
16. Notices. All notices, approvals, consents and other communications required under this
Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by
fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery
fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid.
The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email;
one day after depositing with a nationally recognized overnight delivery service; and five (5) days after
sending by first class, registered, or certified mail.
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
w/ copy to: Parmenter Law
Attn.: City Attorney
601 Terrace Street, Suite 200
Muskegon, MI 49440
Email: brennen@parmenterlaw.com
To Developer: Landmark Construction LLC
Attn.: Adam Hecht
1357 Marquette Ave
Muskegon, MI 49442
Email: landmark. hecht@gmail.com
17. Miscellaneous.
a Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of the state of Michigan.
b. Entire Agreement. This Agreement constitutes the entire agreement of the parties
and supersedes any other agreeménts, 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 modified 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 shail
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 in any way be impaired or
affected.
i. No Reliance. Each party 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 MIUSKEGON Landmark Construction Li
Name Ken Johnson
Title: Mayor
Dated: March | QO, JO36
By: Qv2 SAG DS
Name: Ann Marie Meisch
Title: City Clerk
Dated: (~on oy SO Jev2_so.
Exhibit A
The following described premises are currently owned by the City of Muskegon and will be combined and
split to create the Parcels to be Purchased by Developer and are located in the City of Muskegon, County
of Muskegon, State of Michigan, and legally described as follows:
Legal Description: CITY OF MUSKEGON URBAN RENEWAL PLAT NO 2 LOT 456
Address: 1557 MARQUETTE, MUSKEGON, MI 49442
Price: $3,500.00
Parcel #: 61-24-611-000-0456-00
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 PART OF LOT 11 BLK 15 COM AT
NE COR OF LOT 11 THENCE W ALONG N LINE OF SAID LOT 87 FT 8 INS FOR STARTING POINT
THENCE SLY 134 FT 6 INS THENCE WLY 39 FT 9 INS THENCE NLY 140 FT 9 INS THENCE E 43 FT 10
INS TO POINT OF BEG
Address: 663 MARQUETTE, MUSKEGON, MI 49442
Price: $2,125.00
Parcel #: 61-24-205-015-0011-10
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 BLK 15 UTILITY
EASEMENT OVER N 55 FT RECORDED ON L-3853 P-016
Address: 647 MARQUETTE, MUSKEGON, MI 49442
Price: $3,937.50
Parcel #: 61-24-205-015-0001-00
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 N 66 FT OF S 178 FT LOT 11 BLK
40Address: 768 SCOTT, MUSKEGON, MI 49442
Price: $3,250.00
Parcel #: 61-24-205-040-0011-20
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 & N 1/2 LOT 3 BLK 249
Address: 1160 AMBROSIA, MUSKEGON, MI 49442
Price: $4,875.00
Parcel #: 61-24-205-249-0002-00
(Will be split into two 49.5” x 132’ lots; for one duplex and one ADU to be built on each 1/2)
Exhibit B
The following described Parcels will be created by the City of Muskegon sold to Developer for the Purchase
Prices provided and are located in the City of Muskegon, County of Muskegon, State of Michigan, and
legally described as follows:
Legal Description: CITY OF MUSKEGON URBAN RENEWAL PLAT NO 2 LOT 456
Address: 1557 MARQUETTE, MUSKEGON, MI 49442
Price: $3,500.00
Parcel #: 61-24-611-000-0456-00
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 PART OF LOT 11 BLK 15 COM AT
NE COR OF LOT 11 THENCE W ALONG N LINE OF SAID LOT 87 FT 8 INS FOR STARTING POINT
THENCE SLY 134 FT 6 INS THENCE WLY 39 FT 9 INS THENCE NLY 140 FT 9 INS THENCE E 43 FT 10
INS TO POINT OF BEG
Address: 663 MARQUETTE, MUSKEGON, MI 49442
Price: $2,125.00
Parcel #: 61-24-205-015-0011-10
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 BLK 15 UTILITY
EASEMENT OVER N 55 FT RECORDED ON L-3853 P-016
Address: 647 MARQUETTE, MUSKEGON, MI 49442
Price: $3,937.50
Parcel #: 61-24-205-015-0001-00
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 N 66 FT OF S 178 FT LOT 11 BLK
40Address: 768 SCOTT, MUSKEGON, MI 49442
Price: $3,250.00
Parcel #: 61-24-205-040-0011-20
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 N 49.5 FT LOT 2 BLK 249
Address: 1160 AMBROSIA, MUSKEGON, MI 49442
Price: $2,437.50
Parcel #: TBD
(North westerly half of parent parcel, 1160 Ambrosia; one duplex and one ADU to be built)
Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 S 16.5 FT LOT 2 & N 1/2 LOT 3 BLK
249
Address: 1164 AMBROSIA, MUSKEGON, MI 49442
Price: $2,437.50
Parcel #: TBD
(South easterly half of parent parcel, 1160 Ambrosia; one duplex and one ADU to be built)
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