City Commission Worksession Minutes 01-10-2017

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     JANUARY 10, 2017
    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, January 10, 2017. Pastor
Matt Sharpe, Evanston Avenue Baptist Church, 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 J. Gawron, Vice Mayor Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr., Dan Rinsema-Sybenga, and Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2017-02     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the December 12, 2016
Worksession Meeting and the December 13, 2016 Regular City Commission
Meeting.
FINANCIAL IMPACT:       None.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval of the minutes.
      B. Gaming License Request from Harbor Hospice Foundation City Clerk
SUMMARY OF REQUEST: The Muskegon Harbor Hospice Foundation is requesting
a resolution recognizing them as a non-profit organization operating in the City
for the purpose of obtaining a Gaming License.
FINANCIAL IMPACT:       None.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval.



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      C. Gaming License Request from Flyin’ Heroes         City Clerk
SUMMARY OF REQUEST: The Flyin’ Heroes is requesting a resolution recognizing
them as a non-profit organization operating in the City for the purpose of
obtaining a Gaming License.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval.
      D. Special Event Liquor License – Farmers Market City Clerk
SUMMARY OF REQUEST: The Muskegon Farmers Market will be hosting a Dining
in the Dark event on Thursday, February 16th at the Farmers Market and we are
requesting a liquor license including spirits. Proceeds will benefit the Farmers
Market.
FINANCIAL IMPACT:        $50 permit from the State for every date requested and
$75 bond.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            To approve the request.
      E. MDOT Performance Resolution         Department of Public Works
SUMMARY OF REQUEST: Adopt the MDOT Performance Resolution authorizing
the director of public works and/or administrative supervisor to sign off on
permits to perform work on state highways within the city. The form has been
updated and previous resolution is no longer valid
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:          To approve and adopt the Performance
Resolution by authorizing the City Clerk to sign.
      F. Agreement for Engineering Services with Charles Wiggins        Engineering
SUMMARY OF REQUEST: Authorize staff to enter into an employment agreement
with Charles Wiggins to provide assistance to the engineering department in the
capacity of a Civil Engineer I.
As you may recall, Mr. Wiggins worked for the City for over 27 years and since
retiring in August of 2015 he had been employed by Elwood Services to provide
engineering services to the City.
Furthermore, it is respectfully requested that staff be authorized to retro this
agreement to the beginning of this year (2017) and the ability to extend and/or
terminate said agreement to best serve the City.
FINANCIAL IMPACT:        Approximately $60,000 based on estimated 1700 hours

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of work.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Authorize staff to enter into an agreement with
Mr. Wiggins.
      G. Amendment to the Zoning Ordinance – Waterfront Industrial Planned
         Unit Development (WI-PUD) Planning & Economic Development
           REMOVED PER STAFF REQUEST
      H. Termination of “The Watermark” Project Brownfield Redevelopment
         Authority Plan (May, 25, 2004)   Planning & Economic Development
SUMMARY OF REQUEST: The Brownfield Plan Amendment for “The Watermark”
Project (“Plan”) was approved by the Brownfield Redevelopment Authority
(BRA) and the City Commission in May 2004. The redevelopment projects
outlined in the Plan have been completed (54 residential units). There was no TIF
capture included in this Plan. As a new Brownfield Plan Amendment is being
requested by the owners of the property, it is necessary to terminate the existing
Plan which has been completed, using the language recommended in the
“Staff Recommendation”.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:             That the City Commission herby terminates “The
Watermark” Project Brownfield Plan adopted on May 25, 2004. The Plan is being
terminated pursuant to MCL 125.2666(8)(a) as it relates to the eligible property
located at 930 Washington Avenue and pursuant to MCL 125.2666(8)(b) as it
relates to the eligible property located at 920 Washington Avenue, 965 West
Western Avenue and 1330 Division Street.
COMMITTEE RECOMMENDATION:            The Brownfield Redevelopment Authority
approved termination of the Brownfield Plan Amendment for “The Watermark”
Project (May 25, 2004) at their December 6, 2016 meeting.
      I. Adopt a Resolution to Approve the Operation of the Red Project in the
         City of Muskegon      City Manager
SUMMARY OF REQUEST: Adopt a resolution to approve the operation of the Red
Project in the City of Muskegon.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Adopt the resolution.
Motion by Vice Mayor Hood, second by Commissioner German, to approve the
consent agenda as presented.

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ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
             Nays: None
MOTION PASSES
2017-03   PUBLIC HEARINGS:
      A. Public Hearing for Brownfield Plan Amendment and Development and
         Reimbursement Agreement for P&G Holdings NY, LLC Redevelopment
         Project (Watermark) Planning & Economic Development
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting the amendment to the Brownfield Plan and to
approve the Development and Reimbursement Agreement. The amendments
are for property owned by P&G Holdings NY, LLC.
FINANCIAL IMPACT:           Brownfield Tax Increment Financing will be used to
reimburse the developer for “eligible expenses” incurred in association with
development of the Watermark project. P&G Holdings NY, LLC cost for the
development of the property is approximately $30 million in private investment,
resulting in a substantial increase in the local and school taxes generated by the
property.
“Eligible Expenses” would be reimbursed starting in 2018. The estimated tax
capture and payment schedule is included as Attachment U-3 in the proposed
Brownfield Plan Amendment.
After all eligible cost incurred by the various parties are reimbursed (estimated to
be in 2047), the BRA is authorized to continue to capture local taxes for five
more years for deposit into a Local Site Remediation Revolving Fund.
The Development and Reimbursement Agreement provides the structure for the
capture of taxes and the reimbursement to P&G Holdings and the City of
Muskegon for eligible expenses.
STAFF RECOMMENDATION:          To hold a public hearing for approval of the
Brownfield Plan Amendment for the P&G Holdings NY, LLC Redevelopment
Project and approve the resolution and authorize the Mayor and Clerk to sign
the resolution, and to approve the Development and Reimbursement
Agreement between P&G Holdings NY, LLC, the City of Muskegon, and the City
of Muskegon Brownfield Redevelopment Authority.
COMMITTEE RECOMMENDATION:             The Muskegon City Commission set the
public hearing for January 10, 2017 at their December 13, 2016 meeting. Since
that time, a notice of the public hearing has been sent to taxing jurisdictions. In
addition, the Brownfield Redevelopment Authority approved the Plan
amendment and the Development and Reimbursement Agreement on
December 6, 2016 and recommends that the Muskegon City Commission

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approve the Plan amendment and Development and Reimbursement
Agreement.
PUBLIC HEARING COMMENCED:
Comments were received by the public as follows:
Lawrence Spataro         1567 Sixth Street             In Favor
Pat Camp                 930 Washington                Against
Jen Sanocki              1417 Lakeshore Drive          Against
Pete Amrine              1431 Glen                     Would like to see it fixed
Donna Pennington         1418 Lakeshore Drive          Against
Lea Markowski            1055 Horton                   Wants to see it
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
close the public hearing and approve the resolution and authorize the Mayor
and Clerk to sign the resolution, and to approve the Development and
Reimbursement Agreement between P& G Holdings NY, LLC, the City of
Muskegon and the City of Muskegon Brownfield Redevelopment Authority.
Motion by Commissioner Johnson, second by Commissioner Warren, to table the
item until the February 14, 2017 Regular Commission Meeting.
ROLL VOTE: Ayes: Turnquist and Johnson
              Nays: Gawron, Hood, Warren, German, and Rinsema-Sybenga
MOTION FAILS
~ VOTE ON ORIGINAL MOTION ~
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, and `
           Turnquist
              Nays: Johnson
MOTION PASSES
2017-04       NEW BUSINESS:
      A. Approval of a Neighborhood Enterprise Zone Certificate – 920
         Washington Avenue & 965 W. Western Avenue          Planning &
         Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from P&G Holdings NY, LLC for the conversion of
vacant industrial space to apartments at 920 Washington Avenue and 965 West
Western Avenue. The estimated project cost is $9,417,175 and will include 126
market rate apartments. The property was approved as a Neighborhood
Enterprise Zone District on September 13, 2016. The applicant has met local and


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state requirements for the issuance of the NEZ certificate. They have requested
the maximum 15 years for the exemption.
FINANCIAL IMPACT:          The taxes on the apartment portion of the project will
be frozen at the pre-rehabilitated rate for 15 years, with a three-year phase out
(they will receive 75% of the abatement in year 13, 50% in year 14, and 25% in
year 15).
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval of the NEZ certificate.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the NEZ certificate for 920 Washington Avenue and 965 W. Western
Avenue.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, and
           Gawron
             Nays: Johnson
MOTION PASSES
      B. Approval of a Neighborhood Enterprise Zone Certificate – 285 W.
         Western Avenue      Planning & Economic Development
      REMOVED PER STAFF REQUEST
      C. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish     Public Safety
         1456 Park Street
         1290 Wood Street
         768 Marcoux
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 structures and that the
Mayor and City Clerk be authorized and directed to execute a contract for
demolition with the lowest responsible bidder or staff my issue infraction tickets
to the owner, agent, or responsible party if they do not demolish the structure.
FINANCIAL IMPACT:         General Funds
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner German, second by Vice Mayor Hood, to concur with

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the Housing Board of Appeals decision to demolish 1456 Park Street and 768
Marcoux.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to concur with the Housing Board of Appeals decision to demolish 1290 Wood
Street.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and German
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 7:00 p.m.




                                    Respectfully Submitted,




                                    Ann Marie Meisch, MMC, City Clerk




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