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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 14, 2015
CITY COMMISSION CHAMBERS @ 5:30 P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, July 14, 2015.
Commissioner Willie German, Jr. opened the meeting with prayer, after which
the Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Hood, German, Rinsema-Sybenga, Turnquist, and Johnson, City
Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann
Meisch.
2015-50 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the June 30, 2015 City
Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes
B. Annex Lease CITY MANAGER
SUMMARY OF REQUEST: City staff has been working with an organization that
intends to operate a sports training and rehabilitation center in the LC Walker
Arena Annex Building. The Annex is currently used intermittently throughout the
year for concerts, dinners, and other gatherings. Staff is seeking approval for a
five year lease agreement with ImaJam, Inc. that is expected significantly
increase the usage of the building. This lease agreement will help city staff
reduce costs associated with the LCV Walker Arena, as the tenant will become
responsible for utilities and general maintenance. Additionally, the lease
agreement calls for a nominal fixed rent of $1.00 per month plus a percentage
of the tenant’s annual gross revenue. The lease agreement further calls for the
city and the tenant to split the needed improvements to the Annex 50/50.
FINANCIAL IMPACT: Up to $150,000 in facility improvements, to be offset by
reduced arena operating costs and annual rent payments.
BUDGET ACTION REQUIRED: Up to $150,000 Capital Improvement is expected;
the budget will be adjusted as part of the 1st Quarter Budget Reforecast.
STAFF RECOMMENDATION: To approve the request and authorize the Mayor and
Clerk to sign the agreement.
C. Community Relations Committee Recommendation – CITY CLERK
SUMMARY OF REQUEST: To concur with recommendations from the Community
Relations Committee:
Accept the resignation of John E. Smith from the Construction Board of Appeals.
Appoint Harold Callender to the Construction Code Board of Appeals and
Pastor Leroy Lockhart to the Equal Opportunity Committee.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with recommendations.
Motion by Commissioner Johnson, second by Commissioner Hood to accept the
Consent Agenda as read.
ROLL VOTE: Ayes: Hood, Spataro, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2015-51 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: PUBLIC SAFETY
1258 5th Street
462 Washington Avenue
1252 5th Street
1709 Pine
1370 Sanford
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days or infraction tickets may be issued. It is further requested that administration
be directed to obtain bids for the demolition of the structure and that the Mayor
and City Clerk be authorized and directed to execute a contract for demolition
with the lowest responsible bidder or staff may issue infraction tickets to the
owner, agent or responsible party if they do not demolish the structure.
FINANCIAL IMPACT: CDBG of General Funds
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Vice Mayor Spataro, second by Commissioner Johnson to concur
with the Housing Board Appeals notice and order to demolish 1258 5th Street, 462
Washington Avenue, and 1709 Pine Street.
ROLL VOTE: Ayes: Spataro, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood.
Nays: None
MOTION PASSES
Motion by Vice Mayor Spataro, second by Commissioner German to concur
with the Housing Board Appeals notice and order to demolish 1252 5th Street.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Spataro
Nays: None
MOTION PASSES
Motion by Vice Mayor Spataro, second by Commissioner Johnson to concur
with the Housing Board Appeals notice and order to demolish 1370 Sanford.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Spataro, and German
Nays: None
MOTION PASSES
B. LC Walker Lease Agreement with Lumberjacks Hockey Team. CITY
MANAGER
SUMMARY OF REQUEST: For the past six months, city staff has been working with
the Muskegon Lumberjacks ownership group to transition the group from facility
manager to tenant. After much consideration, the team and city staff mutually
agreed that an ideal time to initiate the transition would be upon the
completion of the 2014-15 hockey season. An important aspect of the early
transition was the ability to enter into a long-term lease agreement that would
improve the marketability of the hockey team.
The key terms of the proposed lease are as follows:
1. The lease has an initial three year term that can be extended up to
two additional years if the hockey team sells at least 80,000 tickets in
years two and/or three.
2. The hockey team will have access to certain office space, locker
rooms, practice and game ice, concession areas merchandise sales
areas, and certain common areas.
3. The Lumberjacks will make an annual lump sum payment to the city
equal to $12,500, and provide a ticket revenue share with the city as
follows:
a. $1.00 per ticket for the first 60,000 tickets printed ($37,500 of which is
due at the same time as the annual lump sum payment).
b. $0.00 per ticket for the next 12,500 tickets printed.
c. $2.00 per ticket for the next 10,000 tickets printed.
d. $3.00 per ticket for the next 10,000 tickets printed.
e. $4.00 per ticket for any ticket printed in excess of 92,501 tickets.
4. The hockey team and city are to split certain revenues related to
advertising.
5. The hockey team will provide its own ushers, security, and post-game
arena cleaning.
6. The hockey team will keep net revenues from concession sales during
their games.
7. The hockey team will pay $750 per preseason game and $1,000 per
playoff game hosted at the arena.
FINACIAL IMPACT:
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the lease and authorize the Mayor and
Clerk to sign.
Motion by Commissioner Johnson, second by Commissioner Hood to approve
the lease and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Spataro, and German,
and Rinsema-Sybenga,
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Vice Mayor Spataro commented on the success of the
Susan B. Koman event at the beach last week.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:26 p.m.
Respectfully Submitted
Ann Marie Meisch, MMC
City Clerk