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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 9, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
A. 2016 Outstanding Citizenship Award Presentation
□ INTRODUCTIONS/PRESENTATION:
A. Muskegon Catholic Central 2016 Division 8 Football State Champions
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Request to Fly the Norwegian Flag City Clerk
C. Adopt a Resolution Approving the Liquor License Application for 18th
Amendment as a Mixed Spirit Drink Manufacturer at 350 W. Western
Avenue City Clerk
D. Adopt a Resolution Approving the Liquor License Application for 18th
Amendment as a Mixed Spirit Drink Manufacturer at 1150 7th Street
City Clerk
E. A & E Barbecue Concession Contract for City of Muskegon Parks
Department of Public Works
F. Nims Neighborhood Boat Safety Program Department of Public
Works
G. Request to Amend the City Code of Ordinances Planning &
Economic Development
Page 1 of 2
H. Water System Asset Management Plan Department of Public Works
I. Roof Repairs at LC Walker Arena DPW/Engineering
J. Assignment of Contract for Housing Exemption Planning & Economic
Development
K. Community Relations Committee Recommendations for City Board and
Committee Openings City Clerk
L. Community Relations Committee Recommendations for Talent Bank
Application Changes City Clerk
□ PUBLIC HEARINGS:
A. Establishment of a Commercial Redevelopment District – 351 W.
Western Avenue Planning & Economic Development
B. Issuance of a Commercial Facilities Exemption Certificate – 351 W.
Western LLC Planning & Economic Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Request to Create a New Neighborhood Enterprise Zone District at 351
W. Western Avenue Planning & Economic Development
B. Purchase Agreement – 1000 West Western Avenue City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
Page 2 of 2
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: May 3, 2017
Here is a quick outline of the items on our agenda(s):
WORK SESSION
1. We will discuss the outcome of our SAW Grant findings and the infrastructure needs of
the community. This will occupy s significant amount of time.
REGULAR MEETING
1. Under Honors and Awards, we will present our Outstanding Citizenship Award.
2. Under Introductions/Presentations, we will present Muskegon Catholic Central with their
2016 Division 8 Football State Championship signage.
3. Under the consent agenda, we are asking the Commission for approval of the following:
a. Last meeting’s minutes.
b. The annual request from the Sons of Norway to fly the Norwegian Flag.
c. A Liquor License for 18th Amendment Spirits Company on Western Avenue.
d. A Liquor License for 18th Amendment Spirits Company on Seventh.
e. A concession contract for A&E Barbeque to operate at Pere Marquette Park. This
same individual operated last season at Pere Marquette Park.
f. Approval or the Nims Neighborhood Boat Safety Program which is a partnership
between the City (Hartshorn Marina), the neighborhood, and others to provide kayak
rental/usage from the marina.
g. Approval of an amendment to the code of ordinances to allow for beekeeping in the
city under certain circumstances.
h. Approval of the City of Muskegon Water System Asset Management Plan. This is a
new requirement for all water systems.
i. Approval of major roof repairs at the LC. We know we need a new roof, but the $1
Million + price tag has caused us to think about getting a little more life out of the
current roof. These repairs – costing $25,000 – will likely buy us an additional two
years, so we can pursue replacement funding for the 2018-19 budget year.
j. Assignment of the PILOT Agreement for the Berkshire Development from General
Capital to the development corporation/entity that will be undertaking the
construction. This is a normal/simple assignment, but it requires city approval. They
plan to break ground almost immediately after this assignment is approved.
4. Under Public Hearings:
a. Establishment of a Commercial Rehabilitation District at 351 West Western
Avenue. The owner is planning to construct a 6-story mixed-use building.
b. Issue the certificate associated with the district created at 351 West Western.
5. Under new business, we will be asking the Commission to approve the following:
a. Creation of a Neighborhood Enterprise Zone District at 351 West Western Avenue
to accommodate the planned 6-story building. The Public Hearing for this item
was held in early April.
b. Approval of the purchase agreement for 1000 West Western Avenue. This
property, which is a former Shaw Walker parking lot, is adjacent to our marina.
The proposed new owners would like the purchase option to allow time to
undertake environmental testing as well as create a final development plan for
the site. Staff will be working with the potential owner on a development that
consists of waterfront residential options as well as appropriate commercial
development. Staff believes this development will be a key piece in improving the
marina and adding more continuity between the redevelopment of West Western
Avenue and the rest of downtown.
Let me know if you have any questions/comments/concerns
Date: May 1, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the April 25, 2017 Regular
City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 25, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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, April 25, 2017. Pastor Tim
Cross, Living Word 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., and Dan Rinsema-Sybenga, Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2017-33 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the April 10, 2017 Worksession
Meeting and the April 11, 2017 Regular City Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Sale of Unbuildable Vacant Lot at 1251 E. Laketon Avenue Planning &
Economic Development
SUMMARY OF REQUEST: To approve the sale of the vacant, unbuildable lot at
1251 E. Laketon Avenue to Emerald City, LLC, owners of the adjacent property
at 1249 E. Laketon Avenue. They would like to acquire the property so that they
may combine them and put an addition on to the back of the existing building.
They have offered $600 for the parcel.
FINANCIAL IMPACT: The sale of this lot will generate additional tax revenue
for the City.
BUDGET ACTION REQUIRED: None
Page 1 of 7
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the resolution and the deed.
C. Telephone System Upgrade Information Technology
SUMMARY OF REQUEST: A mandatory upgrade to our telephone system is
required. Currently our telephone system is connected to Central Dispatch’s
system. Our system is redundant with Central Dispatch. If you recall, this current
system is saving the City one million dollars over a ten year period of time. At
one time the City’s telephone bills were $10,000 each month, but we have been
able to reduce those lines to just $20,000 a year. This upgrade is mandatory and
Cisco will discontinue support in July.
FINANCIAL IMPACT: $35,537
BUDGET ACTION REQUIRED: A budget adjustment will be needed in the third
quarter reforecast.
STAFF RECOMMENDATION: Staff recommends approval of the upgrade to
the current Cisco System as requested and authorize staff to sign the
agreement.
D. Muskegon Public Schools “Youth Basketball League” and “Growing
Goods” Funding Agreement Planning & Economic Development
SUMMARY OF REQUEST: The City of Muskegon (“City”) is recommending
approval of the Agreement with Muskegon Public School for the management
of the Youth Basketball League and Open Gym and “Growing Goods”
programs for 2017. It is the mission of Muskegon Public Schools to provide the
best for every child every day. With the support of the City of Muskegon
programs continue to promote the fundamental core values of respect, health,
integrity, and sportsmanship, as well as providing a safe, welcoming and healthy
environment for the youth.
FINANCIAL IMPACT: The funding will be disbursed from the 2017-2018
Community Development Block Grant/Leisure Services Fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the Muskegon Public Schools
Funding Agreement.
E. Fleet Replacement Vehicle DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) F-250 Pickup from Gorno Ford, the MI-Deal State contract
holder. Cost for this vehicle is $25,654.00 coming from the Equipment Division
fund.
FINANCIAL IMPACT: $25,654.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
Page 2 of 7
STAFF RECOMMENDATION: Authorize staff to purchase one (1) F-250 Pickup
from Gorno Ford, the MI-Deal State contract holder.
F. Leaf Vac DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Leaf Vac coming from Fredrickson Equipment Supply the sole
source dealer for this brand of equipment. Cost for this Vac is $29,000 coming
from the Equipment Division Fund.
FINANCIAL IMPACT: $29,000.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Leaf Vac
coming from Fredrickson Equipment Supply the sole source dealer for this brand
of equipment.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, minus items G and H.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
2017-34 ITEMS REMOVED FORM CONSENT AGENDA
G. Annex HVAC Replacement City Manager
SUMMARY OF REQUEST: The Commission previously approved the replacement
of certain components of the HVAC system in the Annex. The original estimates
were set near $42,000. The project has been completed and did require some
scope changes. The updated final cost of the replacement is $52,635.
FINANCIAL IMPACT: $52,635 from the Public Improvement Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize staff to award the HVAC
replacement project to Northside Heating & Cooling.
Motion by Commissioner German, second by Commissioner Warren, to
authorize staff to award the HVAC replacement project to Northside Heating &
Cooling.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren.
Nays: None
MOTION PASSES
Page 3 of 7
H. Grant Authority to CNS Director to Purchase HUD Homes for Homebuyer
Program Community & Neighborhood Services
SUMMARY OF REQUEST: To grant authority to the Director of Community and
Neighborhood Services to bid on and enter into agreements to purchase
property, on behalf of the City of Muskegon, for rehabilitation. Properties will be
used to sell to eligible buyers through the Homebuyer Program.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize the Director of Community and
Neighborhood Services, Oneata Bailey, to bid on and enter into agreements to
purchase HUD Homes on behalf of the City of Muskegon.
Motion by Commissioner German, second by Commissioner Johnson, to
authorize the Director of Community and Neighborhood Services, Oneata
Bailey, to bid on and enter into agreements to purchase HUD Homes on behalf
of the City of Muskegon.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German.
Nays: None
MOTION PASSES
2017-35 PUBLIC HEARINGS:
A. Public Hearing for the 2017 Action Plan Community & Neighborhood
Services Department
SUMMARY OF REQUEST: To conduct a public hearing on April 25, 2017 to
receive comments from the public concerning the 2017 Action Plan developed
by the Community and Neighborhood Services Department.
FINANCIAL IMPACT: The City is required to submit the Annual Action Plan to
receive 2017 allocations of CDBG and HOME Investment Partnership Programs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To direct staff to gather comments from the
public and to submit the 2017 Action Plan to HUD after the public comment
period.
PUBLIC HEARING COMMENCED: No comments were received from the
public.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to close the
public hearing.
Page 4 of 7
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German.
Nays: None
MOTION PASSES
2017-36 NEW BUSINESS:
A. Approval of Sale of City-owned Home at 2112 Sampson Community
& Neighborhood Services Department
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services department to complete the sales transaction with
Kelma Smajic-Adams for the newly constructed home at 2112 Sampson Avenue:
purchase price $158,000.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the resolution and direct the CNS staff to complete the sale.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
B. Approval of a Neighborhood Enterprise Zone Certificate – 285 W.
Western Avenue Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Parkland Muskegon, Inc. for the conversion
of vacant commercial space to 47 market-rate apartments at 285 W. Western
Avenue. The estimated project cost is $168,900 per unit. The property was
approved as a Neighborhood Enterprise Zone District on December 13, 2016.
The applicant has met local and 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 REQUIED: Approval of the NEZ certificate for 15 years.
Page 5 of 7
STAFF RECOMMENDATION: Approval of the NEZ certificate for 15 years.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve to approve the NEZ Certificate for 15 years.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
C. Approval of a Neighborhood Enterprise Zone Certificate – 275 W. Clay
Avenue Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Berkshire Muskegon LDHA, LLC for the 16
market rate units in their proposed mixed-use development at 275 W. Clay
Avenue. The estimated project cost is $183,864 per unit. The property was
approved as a Neighborhood Enterprise One District on February 14, 2017. The
certificate would only apply to the 16 market rate units and not the 68
subsidized residential units or commercial units.
FINANCIAL IMPACT: One-half of the previous year’s state average principal
residence millage rate will be applied to the value of the facility for a duration of
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 for a duration of
15 years.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the NEZ certificate for a duration of 15 years.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
D. Amendment to the Zoning Ordinance – Form Based Code, Urban
Residential Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend the Form Based Code,
Urban Residential Context Area section of the zoning ordinance to allow small
multi-plex buildings for multi-family uses.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
Page 6 of 7
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the ordinance amendment, with two members
absent.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the zoning ordinance amendment.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:35 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
Page 7 of 7
Date: May 2, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Request to Fly the Norwegian Flag
SUMMARY OF REQUEST: Sons of Norway are requesting permission
to fly the Norwegian Flag at City Hall on Saturday, May 17th in honor of
Norway’s Constitution Day (Independence Day).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
Date: May 1, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Adopt a Resolution Approving the Liquor License
Application for 18th Amendment as a Mixed Spirit Drink
Manufacturer at 350 W. Western Ave
SUMMARY OF REQUEST: To adopt a resolution approving a Liquor License
for 18th Amendment, LLC for a license as a Mixed Spirit Drink Manufacturer at
350 W. Western Ave.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adopt a resolution approving the request of
18th Amendment LLC for a liquor license as a Mixed Spirit Drink Manufacturer
at 350 W. Western Ave.
Date: May 1, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Adopt a Resolution Approving the Liquor License
Application for 18th Amendment as a Mixed Spirit Drink
Manufacturer at 1150 7th St
SUMMARY OF REQUEST: To adopt a resolution approving a Liquor License
for 18th Amendment, LLC for a license as a Mixed Spirit Drink Manufacturer at
1150 7th St.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adopt a resolution approving the request of
18th Amendment LLC for a liquor license as a Mixed Spirit Drink Manufacturer
at 1150 7th St.
AGENDA ITEM NO._____________
CITY COMMISSION MEETING ___________________
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: May 9, 2017
SUBJECT: A & E Barbecue Concession Contract for City of Muskegon Parks.
SUMMARY OF REQUEST:
Staff is asking permission to enter into a 1-year contractual agreement with Eric Jewel of A & E
Barbecue LLC, at Pere Marquette Park, located within the City of Muskegon, to sell various
Barbecue/food items from a mobile concession.
FINANCIAL IMPACT:
Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize DPW staff to enter into concession agreement with Eric Jewel of A & E Barbecue
LLC.
COMMITTEE RECOMMENDATION:
Commission Meeting Date: May 9, 2017
Date: May 4, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Request to Amend the City Code of Ordinances
SUMMARY OF REQUEST:
Staff initiated request to amend the animal section of the City Code of Ordinances to add a section for
beekeeping. The ordinance outlines provisions for beekeeping under certain conditions.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the ordinance amendment.
COMMITTEE RECOMMENDATION:
None
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ________
An ordinance to amend Chapter 6 of the City Code of Ordinances to include a new section on bee keeping.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
New Section to Chapter 6:
Sec. 6-18 Bee Keeping
(a) Bee keeping is permitted under the following conditions:
(1) Location. Hives are permitted on all properties that have a principal structure and also in approved
community gardens and urban farms. Hives must be located in backyards or on rooftops.
Community gardens and urban farms that do not have a principal structure to establish a back yard
must have the hives setback at least 50 feet from the front property line. Hives must be setback from
side and rear property lines as follows:
i. 1-4 hives: 10 feet from property lines
ii. 5-8 hives: 25 feet from property lines
(2) Size of hives. A hive may not exceed 20 cubic feet.
(3) Number of hives allowed. Lots less than 10,890 sf may have no more than two hives. Lots between
10,890 sf and 21,780 sf may have no more than four hives. Lots between 21,781 sf and 43,560 sf
may have no more than five hives. Lots larger than 43,560 sf may have no more than eight hives.
(4) Barriers. A flyway barrier at least six feet in height shall shield any part of a property line that is
within 25 feet of a hive. The flyway barrier shall consist of a wall fence, dense vegetation or a
combination thereof.
(5) Water. A constant supply of water shall be provided for all hives to avoid the congregation of bees at
other nearby water sources.
(6) Permit. A development permit is required in order to keep bees.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
9th day of May, 2017, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City of Muskegon.
DATED: ___________________, 2017. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
5/4/2017
AGENDA ITEM NO. __________
CITY COMMISSION MEETING ____________________
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: May 9, 2017
SUBJECT: Water System Asset Management Plan
SUMMARY OF REQUEST:
Authorize staff to enter into an agreement with Prein & Newhof to perform a State mandated
“Water System Asset Management Plan” per Michigan’s Safe Drinking Water Act of 1976.
City staff would like to capitalize on the work already completed by Prein & Newhof as part of
the most recent Reliability Study and Saw Grant, which will be used for the Asset Management
Plan.
FINANCIAL IMPACT:
Total Cost $35,000.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize staff to enter into an agreement with Prein & Newhof.
Date: 5/9/2017
To: Honorable Mayor and City Commissioners
From: DPW/Engineering
RE: Roof Repairs at LC Walker Arena
SUMMARY OF REQUEST:
Authorize staff to enter into a roof repairs agreement at L.C. Walker with Allied Roofing
since they submitted the lowest responsible bid of $19,700.
FINANCIAL IMPACT:
$19,700
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize staff to enter into an agreement with Allied Roofing for a cost of $19,700.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2017\050917\10a_Commission approval - L.C. Walker
Roof Repairs 5-9-17.doc
Commission Meeting Date: May 9, 2017
Date: May 4, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Assignment of Contract for Housing Exemption
SUMMARY OF REQUEST:
General Capital Acquisitions, LLC and the City entered into a Contract for Housing
Exemption on September 22, 2015. Berkshire Muskegon Limited Dividend Housing
Association, LLC is an affiliate of General Capital Acquisitions, LLC that has been formed for
the purpose of owning the project. This request is to approve the assignment of the contract
from General Capital Acquisitions, LLC to Berkshire Muskegon Limited Dividend Housing
Association, LLC.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the request and to authorize the Mayor and Clerk to sign the Assignment of
Contract for Housing Exemption.
COMMITTEE RECOMMENDATION:
None
5/4/2017
ASSIGNMENT OF CONTRACT FOR HOUSING EXEMPTION
THIS AGREEMENT is dated as of April 24, 2017 between GENERAL CAPITAL
ACQUISITIONS, LLC ("Assignor") and BERKSHIRE MUSKEGON LIMITED DIVIDEND
HOUSING ASSOCIATION, LLC ("Assignee").
RECITALS
Assignor and Assignee acknowledge the following:
A. Assignor and the City of Muskegon (the "City") entered into a Contract for
Housing Exemption executed by the City Mayor on September 22, 2015, by the City Clerk on
September 23, 2015 and by Assignor on September 29, 2015 (the "Exemption Contract").
B. The Exemption Contract grants an exemption from ad valorem property taxes
attributable to the Project (as defined in the Exemption Contract) in accordance with the terms of
the Exemption Contract.
C. Assignee is an affiliate of Assignor that has been formed for purposes of owning
the Project.
D. Assignor desires to assign to Assignee, and Assignee desires to accept the
assignment from Assignor of, all of Assignor's right, title and interest in and to the Exemption
Contract.
AGREEMENTS
In consideration of the Recitals and mutual agreements which follow, Assignor and
Assignee agree as follows:
1. Assignor hereby assigns to Assignee, and Assignee hereby accepts the assignment
from Assignor of, all of Assignor's right, title and interest in and to the Exemption Contract. A
true and correct copy of the Exemption Contract is attached hereto as Exhibit A. Assignor
warrants and represents to Assignee that Assignor has not previously assigned its right, title and
interest in and to the Exemption Contract.
2. Assignee hereby assumes all of Assignor's obligations under the Exemption
Contract.
3. This Agreement may be executed in counterparts, each of which shall be deemed
an original and all of which shall be deemed one and the same instrument. Signatures sent via
facsimile or e-mail transmission shall be deemed original signatures for purposes of creating a
binding Agreement.
36102682
4. This Agreement may be amended only by a writing signed by all of the parties
hereto and shall be binding upon and inure to the benefit of the parties hereto and their
successors and assigns.
[Signatures on next page]
2
36102682
ASSIGNOR:
GENERAL CAPITAL ACQUISITIONS, LLC
BY
Its
ASSIGNEE:
BERKSHIRE MUSKEGON LIMITED DIVIDEND
HOUSING ASSOCIATION, LLC
BY BERKSHIRE MUSKEGON MM, LLC,
Managing Member
BY GENERAL CAPITAL MANAGEMENT,
INC., Manager
BY
Its
The City of Muskegon hereby consents to the foregoing Assignment, confirms that the
Exemption Contract is in full force and effect and confirms that Assignor is not in default under
the terms of the Exemption Contract.
CITY OF MUSKEGON
BY
Its Mayor
BY
Its Clerk
3
36102682
EXHIBIT A
36102682
Date: May 9, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Community Relations Committee Recommendations
for City Board and Committee Openings
SUMMARY OF REQUEST: To concur with recommendations from the
Community Relations Committee regarding appointments to the Business
Improvement District and the Community Development Block Grant-Citizen’s
District Council.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To accept the recommendations made by the
Community Relations Committee to appoint Clyde Whitehouse to the
Business Improvement District, and Jeremy Lenertz to the CDBG-Citizen’s
District Council.
COMMITTEE RECOMMENDATION: To appoint Clyde Whitehouse to the
Business Improvement District and Jeremy Lenertz to the CDBG-Citizen’s
District Council as recommended from the May 8th 2017 meeting.
Date: May 9, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Community Relations Committee Recommendations
for Talent Bank Application
SUMMARY OF REQUEST: To concur with recommendations from the
Community Relations Committee regarding changes to the Talent Bank
Application.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the recommendations made by
the Community Relations Committee.
COMMITTEE RECOMMENDATION: Accept recommendations for changes
and additions to the Talent Bank Application from the May 8th 2017 meeting.
O:Clerk/Common/2017 CRC Agenda Cover Sheet for City Commission
CITY OF MUSKEGON
TALENT BANK APPLICATION DATE: _______________
Please Type or Print. Applications will be kept on file for one year. All applicants subject to a background check.
NAME: ___ HOME PHONE #: ________________________
HOME ADDRESS: ______________________________________ WORK PHONE #:________________________
DATE OF BIRTH:______________________________ E-MAIL ADDRESS:__________________________________
OCCUPATION: _____________________________________ EMPLOYER:__________________________________
(If retired, give former occupation)
EDUCATION:_____________________________________________________________________________________
CITY RESIDENT? Yes: ______ No: ______ NUMBER OF YEARS IN THE CITY OF MUSKEGON:___________
PERSONAL REFERENCES: (Please list the name and phone numbers of three personal references)
1. Name:_______________________________________________ Phone:_______________________________
2. Name:_______________________________________________ Phone:_______________________________
3. Name:_______________________________________________ Phone:_______________________________
PERSONAL & COMMUNITY ACTIVITIES: ___________________________________________________________ __
_____________________________________________________________
CIVIC ORGANIZATIONS: ___________________________________________________________________________
NEIGHBORHOOD ASSOCIATION MEMBER: Yes:__________ No:__________
MARK BOARDS/COMMISSIONS/COMMITTEES YOU WISH TO SERVE ON – MARK FIRST CHOICE WITH #1
( ) Board of Canvassers ( ) Housing Code Board of Appeals
( ) Board of Review ( ) Housing Commission
( ) Business Improvement District ( ) Income Tax Board of Review
( ) Citizen’s Police Review Board ( ) Land Reutilization Committee
( ) Civil Service Commission ( ) Leisure Services Board
( ) CDBG-Citizen’s District Council ( ) Loan Fund Advisory Committee
( ) Construction Board of Appeals ( ) Local Develop. Finance Authority
( ) District Library Board ( ) Local Officer’s Compensation Committee
( ) Downtown Development Authority/Brownfield Board ( ) Planning Commission
( ) Election Commission ( ) Public Relations Committee
( ) Equal Opportunity Committee ( ) Zoning Board of Appeals
( ) Historic District Commission
Why would you be a good member of this committee? What do you bring to the committee? ______________________
________________________________________________________________________________________________
Are you willing to serve on any other boards/committees not marked? Yes:__________ No:__________
Have you served on any other boards? Yes: _________ No: ________ Board: ___________________________
If applying for the Citizen’s Police Review Board, are you a member of one of the following minority coalition groups?
( ) Muskegon Urban League ( ) NAACP – Muskegon Chapter ( ) Latinos Working for the Future
( ) Nation of Islam ( ) Ad Hoc Committee for Equality and Justice
OPTIONAL: ( ) Male ( ) Female RACE/ETHNICITY: ( ) Caucasian/White ( ) African American/Black
( ) Asian/Pacific Islander ( ) American Indian/Alaska Native ( ) Hispanic ( ) Other
Attach Additional Sheets or Resume if Desired.
Return this form to: City Clerk’s Office, 933 Terrace St., Muskegon, MI 49440
Commission Meeting Date: May 9, 2017
Date: May 4, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing – Establishment of a Commercial Redevelopment
District – 351 W Western Ave
SUMMARY OF REQUEST:
Pursuant to Public Act 255 of 1978, as amended, 351 W Western, LLC has requested the
establishment of a Commercial Redevelopment District. The creation of the district will allow
the building owner to apply for a Commercial Facilities Exemption Certificate, which will
provide a 50% reduction in the number of mills levied as ad valorem taxes, excluding
the State Education Tax.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Establishment of the Commercial Redevelopment District.
COMMITTEE RECOMMENDATION:
None
5/4/2017
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE CREATION OF A COMMERCIAL REDEVELOPMENT DISTRICT
351 W Western Ave
WHEREAS, pursuant to PA 255 of 1978, the City of Muskegon has the authority to establish “Commercial
Redevelopment Districts” within the City of Muskegon at request of a commercial business enterprise or
on its own initiative; and
WHEREAS, 351 W Western, LLC has filed a written request with the clerk of the City of Muskegon
requesting the establishment of the Commercial Redevelopment District for an area in the vicinity of 351
W Western Ave located in the City of Muskegon hereinafter described; and
WHEREAS, the City Commission of the City of Muskegon determined that the district meets the
requirements set forth in section 5 of PA 255 of 1978; and
WHEREAS, written notice has been given by certified mail to all owners of real property located within the
proposed district as required by section 5(3) of PA 255 of 1978; and
WHEREAS, on May 9, 2017 a public hearing was held and all residents and taxpayers of the City of
Muskegon were afforded an opportunity to be heard thereon; and
WHEREAS, the City of Muskegon deems it to be in the public interest of the City of Muskegon to
establish the Commercial Redevelopment District as proposed;
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the
following described parcel(s) of land situated in the City of Muskegon, County of Muskegon, and State of
Michigan, to wit:
CITY OF MUSKEGON DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 UNIT 7 SBJT TO
ESMNT FOR OVERHEAD/UNDERGROUND ELECTRIC LNS RECOR'D 3724/701
Adopted this 9th Day of May 2017
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
5/4/17
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on May 9, 2017.
______________________________
Ann Meisch
Clerk
5/4/17
Commission Meeting Date: May 9, 2017
Date: May 4, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing – Issuance of a Commercial Facilities Exemption
Certificate – 351 W Western LLC
SUMMARY OF REQUEST:
Pursuant to Public Act 255 of 1978, as amended, 351 W Western, LLC has requested the
issuance of a Commercial Facilities Exemption Certificate. The certificate provides a 50%
reduction in the number of mills levied as ad valorem taxes, excluding the State Education
Tax, for the commercial portion of the development. The company will be investing
$2,286,777 in the commercial space, which qualifies them for an abatement of nine (9)
years.
FINANCIAL IMPACT:
The certificate provides a 50% reduction in the number of mills levied as ad valorem taxes,
excluding the State Education Tax.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Issuance of the Commercial Facilities Exemption Certificate
COMMITTEE RECOMMENDATION:
None
5/4/2017
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF A COMMERCIAL FACILITIES EXEMPTION CERTIFICATE
351 W Western, LLC
WHEREAS, the City of Muskegon legally established the Commercial Redevelopment District, Unit 7
District, after a public hearing held on May 9, 2017; and
WHEREAS, the state equalized value of the property proposed to be exempt plus the aggregate state
equalized value of property previously exempt and currently in force under Public Act 255 of 1978 and
under Public Act 198 of 1974 (IFT's) does not exceed 5% of the total state equalized value of the City of
Muskegon; and
WHEREAS, the application was approved at a public hearing as provided by section 6(2) of Public Act
255 of 1978 on May 9, 2017; and
WHEREAS, 351 W Western, LLC is not delinquent in any taxes related to the facility; and
WHEREAS, the application is for commercial property as defined in section 3(3) of Public Act 255 of
1978; and
WHEREAS, 351 W Western, LLC had provided answers to all required questions under Section 6(1) of
PA 255 of 1978 to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that the construction, restoration or replacement of the facility
shall be completed by May 9, 2019; and
WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of nine (9) years and
no extensions will be allowed; and
WHEREAS, the commencement of the construction, restoration or replacement of the facility did not
occur more than 45 days prior to the filing of the application for exemption; and
WHEREAS, the commencement of the construction, restoration or replacement of the facility did not
occur prior to the establishment of the Commercial Redevelopment District; and
WHEREAS, the application relates to a construction, restoration or replacement program which when
completed constitutes a new, replacement or restored facility within the meaning of Public Act 255 of
1978 and that is situated within a Commercial Redevelopment District established under Public Act 255 of
1978; and
WHEREAS, completion of the facility is calculated to, and will at the time of issuance of the certificate,
have the reasonable likelihood to increase commercial activity, create employment, retain employment
and prevent a loss of employment in the community in which the facility is situated; and
WHEREAS, the restoration includes improvements aggregating 10% or more of the true cash value of the
property at commencement of the restoration as provided by section 4(6) of Public Act 255 of 1978.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City Commission
5/4/17
Be and hereby is granted a Commercial Facilities Exemption for the real property, excluding land, located
in Commercial Redevelopment District, Unit 7 District at 351 W Western Ave for a period of nine (9)
years, beginning December 31, 2017, and ending December 30, 2026, pursuant to the provisions of PA
255 of 1978, as amended.
Adopted this 9th Day of May, 2017.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen J. Gawron
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on May 9, 2017.
______________________________
Ann Meisch
Clerk
5/4/17
Commission Meeting Date: May 9, 2017
Date: May 2, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Request to Create a New Neighborhood Enterprise Zone District
at 351 W Western Ave
SUMMARY OF REQUEST:
Pursuant to Public Act 147 of the Michigan Public Acts of 1992, 351 W Western, LLC has
requested to create a new Neighborhood Enterprise Zone (NEZ) district for the parcel at 351
W Western Ave. Properties located in this NEZ district will be eligible to apply for NEZ
certificates, which will lower the residential property taxes on new construction. Notice
letters were sent to the taxing jurisdictions on March 2, 2017 and a public hearing was held
on April 11, 2017. State law requires that the resolution must be adopted at least 60 days
after the notice letters were sent. This project will include 20 market-rate units.
FINANCIAL IMPACT:
No financial impact at this point. However, being in a district will allow them to apply for a
rehab NEZ certificate, which will lower the residential property taxes for 1 to 15 years.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the new NEZ district.
COMMITTEE RECOMMENDATION:
None
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO CREATE A NEW NEIGHBORHOOD ENTERPRIZE ZONE
DISTRICT WITHIN THE CITY OF MUSKEGON
WHEREAS, the City of Muskegon currently has established Neighborhood Enterprise Zone
districts within the City, and;
WHEREAS, the City of Muskegon would like to create a new Neighborhood Enterprise Zone
district to a new location within the City, and;
WHEREAS, notices were sent to the local taxing jurisdictions on March 2, 2017, and;
WHEREAS, a public hearing was held regarding the creation of this new district on April 11,
2017; and
WHEREAS, the new district boundaries will include the property known as “Unit 7 (351 W
Western Ave, property #24-233-000-0007-00),” as shown in Attachment A, and;
WHEREAS, the total square footage of Neighborhood Enterprise Zone districts in Muskegon
will not exceed 15% of the total square footage of the City;
NOW, THEREFORE, BE IT RESOLVED that the new Neighborhood Enterprise Zone district in
the City of Muskegon have been approved.
Adopted this 9th day of May, 2017.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on May 9, 2017.
By: ________________________
Ann Meisch
City Clerk
Attachment A
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 2, 2017
RE: Purchase Agreement – 1000 West Western Avenue
SUMMARY OF REQUEST:
As part of the City’s effort to clean up the West Western Avenue corridor, City staff removed the
vacant parking lot on the former Shaw Walker Parking Lot property adjacent to the City’s Hartshorn
Marina (1000 West Western). The property was subsequently listed for sale with Core Realty. City
staff negotiated a purchase agreement with Smith Equities, LLC to purchase the property for an
amount equal to $249,000. Smith Equities will use the 90 day due diligence period to create a
development plan for the site as well as work with city staff to explore options to improve and/or
manage Hartshorn Marina.
FINANCIAL IMPACT:
$250,000 income, minus closing costs.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the purchase agreement and authorize the City Clerk and Mayor to sign.
COMMITTEE RECOMMENDATION: