City Commission Packet 11-13-2007

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        Commission Meeting Date:          November 13, 2007




Date:       November 6, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Winner of Anti-litter Poster Contest


SUMMARY OF REQUEST: Operation R&R (Reawakening &
Resurgence) sponsored an Anti-litter Poster Contest for all Muskegon
Public School students who live or attend an MPS east of Seaway Drive.
20 students won and we would like to recognize them at the meeting.
Students are from 1st grade through 5th grade, Middle School and High
School.


                                                                     st
FINANCIAL IMPACT: We are giving the winners Savings Bonds. 1
place will receive $100, 2nd place will receive $75 and 3rd place will
receive $50. Total cost will be $765.50. We have received contributions
from both LaSalle Bank and Huntington Bank to assist with the cost of
the Savings Bonds.



BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION: None



COMMITTEE RECOMMENDATION:
      CITY OF MUSKEGON
        CITY COMMISSION MEETING
                     NOVEMBER 13, 2007
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                AGENDA

•   CALL TO ORDER:
•   PRAYER:
•   PLEDGE OF ALLEGIANCE:
•   ROLL CALL:
•   HONORS AND AWARDS:
      A. Sprague Auto Parts Inc. PUBLIC SAFETY
      B. Anti-litter Contest. COMMUNITY & NEIGHBORHOOD SERVICES
•   INTRODUCTIONS/PRESENTATION:
•   CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
      B. Request to Receive Three Properties of the Remaining Five Properties
         Thal Were Not Sold During the Tax Sales for 2007.     PLANNING &
         ECONOMIC DEVELOPMENT
      C. Request to Submit a Bid to Purchase a        Tax-Reverted   Property.
         PLANNING & ECONOMIC DEVELOPMENT
      D. Control System Annual Software Support. WATER FILTRATION
      E. Budgeted Equipment Replacement. PUBLIC WORKS
      F. Tool & Die Recovery Zone Status for Muskegon Tool.      PLANNING &
         ECONOMIC DEVELOPMENT
      G. Special Events - Catamaran Racing Association Request lo Hold a
         Catamaran Sailing Event, and Camp Over Night at Pere Marquette.
         LEISURE SERVICES
      H. Telecommunications Expense Audit. FINANCE
•   PUBLIC HEARINGS:
      A. Request for a Time Extension for the Obsolete Property Rehabilitation
         Exemption Certificate at 790 Terrace.     PLANNING & ECONOMIC
         DEVELOPMENT
•   COMMUNICATIONS:
•   CITY MANAGER'S REPORT:
•   UNFINISHED BUSINESS:
•   NEW BUSINESS:
        A. Resolution to Sell 1122 Spring.                          COMMUNITY &                NEIGHBORHOOD
             SERVICES
         B. Donation Program for 2007 Individual Income Tax Returns.                                     INCOME
            TAX
        C. Approval to Purchase New Utility Billing System. TREASURER
         D. Revocation of a Neighborhood Enterprise Zone Certificate. PLANNING
            & ECONOMIC DEVELOPMENT
         E. Establishment of the Downtown Development Authority District as a
            "Redevelopment     Project Area".   PLANNING    &   ECONOMIC
            DEVELOPMENT
         F. Issuance of a Downtown Development Authority District On-Premises
            Liquor License - lordache Group, Inc. PLANNING & ECONOMIC
            DEVELOPMENT
•   ANY OTHER BUSINESS:
•   PUBLIC PARTICIPATION:
•   Reminder: Individuals who would like to address the Cify Commission shall do the following:
•   Fill out a request to speak form attached lo the agenda or located in the back of the room.
•    Submit the torm to the Cily 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.)
•   ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO !ND!VlDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE C!TY OF MUSKEGON. PLEASE CONTACT ANN
MARIE BECKER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724,6705 OR TDD:
(231) 724-4172.
Date:    November 13, 2007
To:      Honorable Mayor and City Commissioners
From:    Ann Marie Becker, City Clerk
RE:      Approval of Minutes




SUMMARY OF REQUEST: To approve the minutes of the Regular
                                                       rd
Commission Meeting that was held on Tuesday, October 23 .



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                   NOVEMBER 13, 2007
    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, Michigan at 5:30 p.m., Tuesday, November
13,2007.
  Mayor Warmington opened the meeting with a prayer from Reverend
Randall Hansen from the Central United Methodist Church after which the
Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
   Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Chris Carter, Lawrence Spataro, Sue Wierenga, and Steve
Wisneski, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Ann Marie Becker.
  Absent: Commissioner Clara Shepherd (excused).
2007-94 HONORS AND AWARDS:
     A. Sprague Auto Parts Inc. PUBLIC SAFETY
Public Safety Director, Tony Kleibecker, presented an Honorary Ambassador
Award to Sprague Auto Parts for their commitment and assistance in providing
autos to the Fire Department for training purposes.
     B. Anti-litter Contest. COMMUNITY & NEIGHBORHOOD SERVICES
Community & Services Director, Wilmern Griffin, recognized the students who
submitted drawings for the Anti-litter Contest.
2007-95 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, October 23 rd •
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Request to Receive Three Properties of the Remaining Five Properties
         That Were Not Sold During the Tax Sales for 2007.     PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The County of Muskegon held two tax sales during 2007.
After the tax sales, there were five properties left. According to the State's new
tax laws, the City must state which of the properties they do not want to obtain,
otherwise the City will get all of them. From the list that was provided, there are
two parcels with homes on them and three vacant lots. Staff would like to
obtain the three vacant lots and allow the Muskegon County Land Bank
Authority to obtain the two homes.
FINANCIAL IMPACT: The City will have to maintain the properties and will have
the option to sell the properties in the future for home construction.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee discussed
this matter and had a consensus for approval at their regular meeting of
October 23, 2007, due to the fact there was not a quorum.
      C. Request to Submit a Bid to Purchase a Tax-Reverted Property.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The State of Michigan has sent a letter to the City as
well as all the adjacent property owners' information to submit a bid and
purchase a property that is in their possession. The minimum bid allowed is
$36,000. A l 0% deposit must be sent with the application. The deposit is
refundable. The property is located in the Medendorp Industrial Park. This
property had been a former railroad right-of-way. The property is 2.86.±_acres
and could be used for future trail right-of-way and/or future development.
FINANCIAL IMPACT: To be paid out of the public improvement fund.
BUDGET ACTION REQUIRED: Submit l 0% of the bid with the application and if
accepted, to pay the difference.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution and to have the Mayor sign the bid
application to allow staff to determine the actual bid amount.
      D. Control System Annual Software Support. WATER FILTRATION
SUMMARY OF REQUEST: Renewal of the annual customer support for the
Wonderware control system software at the Water Filtration Plant.
FINANCIAL IMPACT: A one-time cost of $10,186.75.
BUDGET ACTION REQUIRED: None. This item is budgeted.
STAFF RECOMMENDATION: Staff recommends renewal of the annual software
customer support agreement at a cost of$ l 0, 186.75.
      E. Budgeted Equipment Replacement. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase two Ford F-250 trucks from Great
Lakes Ford.
FINANCIAL IMPACT: $34,654.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve purchase.
      F. Tool &. Die Recovery Zone Status for Muskegon Tool.       PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve development agreement and resolution
establishing a Tool & Die Recovery Zone for Muskegon Tool, 1000 E. Barney Ave.
FINANCIAL IMPACT: The City will forego approximately $23,000 per year for a
total of $346,365 in taxes for the 15 year period of the zone.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the development agreement and the
resolution establishing a Tool and Die Recovery Zone.
      G. Special Events - Catamaran Racing Association Request to Hold a
         Catamaran Sailing Event, and Camp Over Night at Pere Marquette.
         LEISURE SERVICES
SUMMARY OF REQUEST:          Catamaran Racing Association of Michigan is
requesting permission to hold a Catamaran sailing event at Pere Marquette Park
August 2&3, 2008. They intend to use the City-owned lot that is currently leased
by Capt. Jacks for overnight camping on August 2.
The owners of Capt. Jacks submitted a letter indicating their support of the
event. Two organizations hosting separate events at Pere Marquette during this
time, Inside/Out volleyball and Meals on Wheels 5k run/walk race, have
expressed support for the event.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution allowing for overnight
camping at Pere Marquette for this even August 2&3, 2008.
COMMITTEE RECOMMENDATION: This request was recommended for approval
by the Leisure Services Board at the October 15, 2007, meeting.
      H. Telecommunications Expense Audit. FINANCE
SUMMARY OF REQUEST: The City recently solicited proposals for firms to conduct
an audit of our telecommunications (telephone, cellular and data) expenses.
Such audits are commonly done by larger organizations having complex
telecommunications structures. Typically the auditing firms are compensated on
a contingency basis, with payment based on a percentage of actual savings
realized by the City. The City received three responses to the RFP (a fourth was
received late and not opened). The RFP responses are summarized below:
                                                                                                   Cost if$30k
                          Office                                                      Months       Savings for
         Firm            Location                 Price Proposal                     in Effect     Past3Years

                                             40% of Savings _up to $20,000                          $11,500 (Net
         Abnita
                                           35% of Savings $20,001 to $30,000            24         Savings to City
                           Lansing                                                                    $18,500)
                                           30% of Savings $30,001 to $40,000
                                             25% of Savings over $40 1001
                                                                                                         $5,985 (Net
                                         $1,995 fee per year fee (not contingency
    Schociey-Mitchell    Grand Rapids                                                   24             Savings to City
                                                          based)
                                                                                                          $24.015)
                                                                                                        $15,000 (Net
                                                     50% of Savings
    Schociey-Mitchell    Grand Rapids                                                   24             Sa\/ingsto City
                                                                                                          $15,000)
                                             40% of Savings up to $50,000                               $12,000 (Net
   Tda! Sdutions Group     Saginaw         30% of Sa;ings $50,001 to $100,000           24             Savings to City
                                             20% of Savings over $100,000                                 $18,000)
After reviewing proposals and checking references, the City recommends that
Abilita be selected to provide this service. It is the best contingency based
proposal received.
FINANCIAL IMPACT:            Some staff time is involved in gathering data and
coordinating the contract. Potential budgetary savings or billing credits may
result if billing errors or overcharges are discovered.
BUDGET ACTION REQUIRED: None. If successful, the program will result in
budget savings to the City; otherwise there is no direct cost other than some
staff time.
STAFF RECOMMENDATION:                   Selection         of     Abilita        to   audit       the       City's
telecommunications expenses.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
Consent Agenda as read.
ROLL VOTE: Ayes:         Gawron, Spataro, Warmington, Wierengo, Wisneski, and
           Carter
                  Nays: None
MOTION PASSES
2007-96 PUBLIC HEARINGS:
       A. Request for a Time Extension for the Obsolete Property Rehabilitation
          Exemption Certificate at 790 Terrace.     PLANNING & ECONOMIC
            DEVELOPMENT
 SUMMARY OF REQUEST:         Promised Land Associates, 3355 Merriam Street,
 Muskegon Heights, Ml 49444, was issued on Obsolete Property Rehabilitation
 Exemption Certificate (resolution number 2005-54(b}, issued June 14, 2005) for
the property located at 790 Terrace Street, Muskegon, Ml. The timeline to
complete the rehabilitation was one year, giving them until June 14, 2006 to do
so. However, a number of unforeseen problems occurred during this time,
making the applicant unable to complete the rehabilitation. The applicant is
now requesting on addition two (2) years to rehabilitate the building. The two
(2) year extension would give the applicant until November 14, 2009, to
complete the rehabilitation. Total capitol investment for this project was stated
to be $1,200,000. The project was to consist of a restaurant/banquet hall that
would also feature live entertainment. This project was to result in the creation
of 40+ new jobs in the city. Because of the new jobs, and the amount of
investment, the applicant was granted a 12 year certificate.
FINANCIAL IMPACT: If on extension to the Obsolete Property Rehabilitation
Exemption Certificate is granted, the property taxes would be frozen for the
duration of the certificate.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: If the City Commission decides to grant on extension
for the Obsolete Property Rehabilitation Exemption Certificate, it is
recommended that only one (l) additional year be granted. That would give
the applicant until November 13, 2008 to rehabilitate the building.
The Public Hearing opened to hear and consider any comments from the
public. Ciggzree Morris, 311 W. Muskegon, commented.
Motion by Commissioner Carter, second by Commissioner Spataro to close the
Public Hearing and extend the certificate until August 22, 2008.
Motion by Commissioner Wisneski, second by Commissioner Wierengo to
amend the motion to have the exterior of the building renovated in 90 days from
today.
ROLL VOTE ON THE AMENDMENT:
            Ayes: Wisneski
            Nays: Spataro, Warmington, Wierengo, Carter, and Gawron
AMENDED MOTION FAILS
ROLL VOTE ON THE ORIGINAL MOTION:
            Ayes: Spataro, Wierengo, Carter, and Gawron
            Nays: Warmington and Wisneski
MOTION PASSES
2007-97 NEW BUSINESS:
      A. Resolution to Sell 1122 Spring.    COMMUNITY & NEIGHBORHOOD
         SERVICES
SUMMARY OF REQUEST: To approve the resolution to sell the City owned house
at 1122 Spring to Ms. Georgia Crenshaw, of 322 Sumner, Muskegon, for the
expected appraised value of $65,000 minus the $15,000 subsidy.
The house at 1122 Spring is part of the Operation R&R initiative, also know as
"Spring Street Awakening" the structure was obtained by the City of Muskegon
through the tax reverted process. After the City obtained the house from the
State of Michigan, a total rehabilitation of the house was completed including
abatement of any lead in the house.
FINANCIAL IMPACT: The program income derived from this transaction will be
deposited in the City's HOME funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and the sale of 1122
Spring to Ms. Georgia Crenshaw.
COMMITTEE RECOMMENDATION:           The City    Commission    and   the   Land
Reutilization Committee approved the project.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the resolution and sale of 1122 Spring to Ms. Georgia Crenshaw.
ROLL VOTE: Ayes:  Spataro, Warmington, Wierengo, Wisneski, Carter, and
           Gawron
           Nays: None
MOTION PASSES
     B. Donation Program for 2007 Individual Income Tax Returns.     INCOME
        TAX
SUMMARY OF REQUEST: Approval of multiple donations programs for the 2007
income tax returns. Our department's goal is to increase the number tax
refunds donated by 20-30%. Each year we will feature two or three donation
options for the taxpayers.
Some of our top donations programs include Lakeshore Trail Improvements,
Muskegon Summer Celebration Fireworks, & the upkeep of Veteran's Memorial
Park.
FINANCIAL IMPACT: The average amount collected each year is $2,000. Each
donated refund saves the City approximately $1 in check fees.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the recommended.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the donation program for the 2007 individual income tax returns.
ROLL VOTE: Ayes:   Warmington, Wierenga, Wisneski, Carter, Gawron, and
           Spataro
                Nays: None
MOTION PASSES
       C. Approval to Purchase New Utility Billing Svstem. TREASURER
SUMMARY OF REQUEST: Approval to purchase the Equalizer Utility Billing System
from BS&A Software. This request is the result of an investigation by City staff of
possible utility billing software solutions that will improve productivity and
operational efficiency.
FINANCIAL IMPACT: Total cost of $36,000.
BUDGET ACTION REQUIRED: The 4th Quarter Budget Reforecast to include an
adjustment for this purchase as a water fund capital expenditure.
STAFF RECOMMENDATION:                    Approval to purchase the Equalizer Utility Billing
System.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
purchase of the Equalizer Utility Billing System.
ROLL VOTE: Ayes:   Wierenga,                    Wisneski,        Carter,      Gawron,        Spataro,        and
           Warmington
                Nays: None
MOTION PASSES
       D. Revocation of a Neighborhood Enterprise Zone Certificate. PLANNING
          & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Stan and Chris Cunningham are in violation of Sec.
207.78 l sec. l l subsection (4) which states:
   If the owner of the facility fails to make the annual payment of the neighborhood enterprise zone tax and the
  ad valorem property tax on the land under the general property tax act, 1893 PA 206, MCL 211.1 to 211.157, the
  Commission by order shal! revoke the certificate. However, if payment of these taxes is made before the
  revocation is effective, the Commission, upon application of the owner, shall rescind the order of revocation. If
  payment of these taxes and any subsequent ad valorem property tax due on the facility is made after
  revocation of the certificate, the Commission, upon application of the owner, shall reinstate the certificate for
  the remaining period of time for which the original certificate would have been in effect.

Stan and Chris Cunningham have failed to pay 2006 taxes for the property
located at 1223 Morgan Avenue whose parcel numbers are 24-94 l-096-0253-00
and 24-613-000-07 51-00. Approval or denial by the City Commission is required
and must be forwarded to the State Tax Commission. Staff sent the owners a
letter with the County Treasurer's phone number on it regarding the pay off
amount of the delinquent property taxes on September 19, 2007, giving them
until October 12, 2007, to pay the taxes. They remain unpaid.
FINANCIAL IMPACT: The property will no longer be able to take advantage of
the certificate number 96-253 which allowed taxation at 50% of the State
average for a stated number of years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve revocation of the NEZ certificate and have
the Mayor and City Clerk sign the resolution and submit it to the State Tax
Commission.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
revocation of the Neighborhood Enterprise Zone Certificate for 1223 Morgan.
ROLL VOTE: Ayes:   Wisneski,       Carter,   Gawron, Spataro, Warmington,         and
           Wierengo
             Nays: None
MOTION PASSES
      E. Establishment of the Downtown Development Authority District as a
         "Redevelopment Project Area".        PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: There is a new type of liquor license available for
businesses within the boundaries of the Downtown Development Authority
(DDA) District. It is similar to the former ODA liquor license. In order for the Liquor
Control Commission to approve issuance of these licenses, the buildings that
house the licensed premises must be located within an established
"Redevelopment Project Area". The Redevelopment Project Area has the same
boundaries as the current DDA.             In order to establish this area as the
Redevelopment Project Area, the City Commission must approve the resolution.
FINANCIAL IMPACT: No immediate impact, although the granting of additional
liquor licenses downtown will increase the number of restaurants and
entertainment venues possible, thus increasing the City of Muskegon's tax
revenues.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk's signatures.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the establishment of the Downtown Development Authority District as a
"Redevelopment Project Area" and also include the DMDC property and the
Edison Landing property.
ROLL VOTE: Ayes:       Carter, Gawron, Spataro, Warmington, Wierengo, and
           Wisneski
           Nays: None
MOTION PASSES
     F. Issuance of a Downtown Development Authority District On-Premises
        Liquor License - lordache Group, Inc. PLANNING & ECONOMIC
        DEVELOPMENT
SUMMARY OF REQUEST: The lordache Group, Inc. has applied for a Downtown
Development Authority District On-Premises Liquor License for the premises at
380 W. Western, which is located within an area established by the City
Commission as a redevelopment project area. The applicant shall be engaged
in the operation of a restaurant and an adjacent bakery at this address.
FINANCIAL IMPACT: No immediate impact, although the granting of the liquor
license to lordache Group will add to the business and entertainment mix in
downtown Muskegon, and will add to the City of Muskegon's tax revenues.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk's signatures.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the resolution and authorize the Mayor and Clerk to sign the Downtown
Development Authority District on-premises liquor license for lordache Group,
Inc.
ROLL VOTE: Ayes:      Gawron, Spataro, Warmington, Wierengo, Wisneski, and
           Carter
            Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Mayor Warmington stated that Raya Wood is th e winner
of the Muskegon Recycling Contest.
PUBLIC PARTICIPATION: Various comments were heard from th e public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:52 p.m.


                                         Respectfully submitted,


                                          ~ , ~ \v ~(Su,1/;L,
                                         Ann Marie Becker, MMC
                                         City Clerk
             Commission Meeting Date: November 13, 2007

Date:                 October 24, 2007
To:                   Honorable Mayor & City Commission
From:                 Planning & Economic Development Department G'1't> c_
RE:                   Request to Receive Three Properties of the
                      Remaining Five Properties that were not sold
                      during the tax sales for 2007.


SUMMARY OF REQUEST:
The County of Muskegon held two tax sales during 2007. After the tax sales, there were five
properties left. According to the State's new tax laws, the City must state which of the
properties they do not want to obtain, otherwise the City will get all of them. From the list
that was provided there are two parcels with homes on them and three vacant lots. Staff
would like to obtain the three vacant lots and allow the Muskegon County Land Bank
Authority to obtain the two homes.

FINANCIAL IMPACT:
The City will have to maintain the properties and will have the option to sell the properties in
the future for home construction.

BUDGET ACTION REQUIRED:
None.

STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution.

COMMITTEE RECOMMENDATION:
The Land Reutilization Committee discussed this matter and had a consensus for approval
at their regular meeting of October 23, 2007 due to the fact there was not a quorum.
                                    Resolution No. 2007-95 ( b)

                            MUSKEGON CITY COMMISSION


RESOLUTION TO PURCHASE STATE-OWNED TAX REVERTED PROPERTY.

WHEREAS, The City may make the properties available under the urban homestead act, 1999
PA 127, MCL 125.2701 to 125.2709, or for any other lawful purpose, and;

WHEREAS, the City of Muskegon desires to acquire such lands for purposes of selling the
property;

WHEREAS, the City of Muskegon does not want to acquire the two parcels that have homes on
them and is willing to allow the Muskegon County Land Bank Authority to obtain these two
properties;

NOW THEREFORE BE IT RESOLVED, that the City of Muskegon shall set up necessary
procedures and controls to provide for the property distribution of funds arising from the
subsequent sale of the acquired property in conformity with the above mentioned acts.

                        Legal Descriptions for the Properties are Attached.

Adopted:    November 13, 2007.

Ayes: Gawron, Spataro, Warmington, Wierenga, Wisneski, Carter

Nays: None

Absent:    Shepherd
       The City of Muskegon is interested in acquiring the following parcels:

1) City of Muskegon Revised Plat of 1903 S 26 Feet of Lot 2 and N 7/2 of Lot 3 Block 252
   Parcel# 61-24-205-252-0003-00
   1278 Terrace

2) City of Muskegon Revised Plat of 1903 sly ½ lot 3 Block 252
   Parcel # 6 l-24-205-252-0003-l 0
   1282 Terrace

3) City of Muskegon Revised Plat of 1903 N ½ ofW 88 Feet Lot 4 Block 252
   Parcel# 61-24-205-252-0004-00
   1286 Terrace

          The City of Muskegon does not want to acquire the following parcels and is
          willing to allow the Muskegon County Land Bank Authority to acquire them.

1) City of Muskegon Revised Plat of 1903 Lot 19 Block 89
   Parcel# 61-24-205-089-0019-00
   728 Catawba

2) City of Muskegon Revised Plat of 1903 W 50 Feet of Lots 8 & 9 Block 305
   Parcel# 61-24-205-305-0008-00
   235E Larch
                                       CERTIFICATION

I hearby 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 November 13, 2007.                                   (
                                                                    \ ·.•                   .
                                                                By: \)\\'-,\(\\ ,\;, \ \ I. I>' ,\t, \
                                                                       Ann Marie Becker, MMC
                                                                                            Clerk
            Commission Meeting Date: November 13, 2007

Date:                November 5, 2007
To:                  Honorable Mayor & City Commission
From:                Planning & Economic Development Department                          c/f/-'
RE:                  Request to Submit a Bid to Purchase a Tax-
                     Reverted Property.


SUMMARY OF REQUEST:
The State of Michigan has sent a letter to the City as well as all the adjacent property
owners' information to submit a bid and purchase a property that is in their possession. The
minimum bid allowed is $36,000. A 10% deposit must be sent with the application. The
deposit is refundable. The property is located in the Medendorp Industrial Park. This
property had been a former railroad right-of-way. The property is 2.86 ± acres and could be
used for future trail right-of-way and/or future development.

FINANCIAL IMPACT:
To be paid out of the public improvement fund.

BUDGET ACTION REQUIRED:
Submit 10% of the bid with the application and if accepted, to pay the difference.

STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution and to have the Mayor sign the bid application. To allow staff to determine
the actual bid amount.

COMMITTEE RECOMMENDATION:
None.
                                    Reso!utionNo. 2007-95(c)

                             MUSKEGON CITY COMMISSION


RESOLUTION TO PURCHASE STATE-OWNED TAX REVERTED PROPERTY.

WHEREAS, Act 451, P.A. 1994, as amended, provides for the conveyance of State-owned tax-
reverted lands to municipal units for public purposes, and;

WHEREAS, such lands are under the jurisdiction of the State of Michigan, Department of
Natural Resources and are available for acquisition under the provisions of the above mentioned
act;

WHEREAS, the City of Muskegon desires to acquire such lands for purposes of developing the
property;

WHEREAS, staff will submit in a reasonable bid offer for the property;

WHEREAS, the City of Muskegon will submit I 0% of the bid with the application;

WHEREAS, if the City's bid is accepted, will pay the difference within 45 days from the date
the State of Michigan sends an invoice;

NOW THEREFORE BE IT RESOLVED, that the City of Muskegon shall set up necessary
procedures and controls to provide for the property distribution of funds arising from the
subsequent sale of the acquired property in conformity with the above mentioned acts.

                           Legal Description for the property is attached.

Adop~d:      November 13, 2007,

Ayes: Gawron, Spataro, Warmington, Wierenga, Wisneski, carter

Nays:     None

Absent:     Shepherd

                                                                   te
                                                                 ~         / \ .     . ?       Ji
                                                           Attest:~\,\, 1\ \ \(\ L\.1 ,)Z , r I \
                                                                    Ann Marie Becker, MMC
                                                                                         Clerk
    The City of Muskegon is interested in acquiring the following parcel:

Former CSX Transpo11ation right-of-way in the City of Muskegon. That portion of the
following description lying in the NE ¼ of the NW ¼; a strip of land 100 ft. in width
beginning at the point of intersection of the centerline of Grantors Track at or near
Valuation Station 506+00 with the East line of Vulcan St. extended to the North, NE of
the plat of Continental Addition to the City; thence extending generally in a
northwesterly direction along the former centerline of the railroad track, said strip of land
lying adjacent to East St., a distance of 1,370 ft. more or less, to the end point at the
intersection of the former centerline of the tract with the South line of Laketon Avenue.
                                       CERTIFICATION

I hearby 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 November 13, 2007.                                   '·

                                                                By:
                                                                      \ii\,'\~\.- }.,_;\I)-\J,\.i\,l-\
                                                                                             . , . ,.;,!? ', ('Ll-,
                                                                                                         I
                                                                          Ann Marie Becker, MMC
                                                                                            Clerk
Memorandum
To:      Honorable Mayor and City Commission

From:    Hope Mitchell

Date:    11/7/2007

Re:      The request to submit a bid to purchase a tax-reverted prope1ty.




The minimum bid for the former railroad property is $36,000 and staff is proposing to bid $1 over the
minimum bid.




                                                                                                        1
                                                  Michigan Department of Natural Resources
                                                             Land and Facilities

                                                       LAND AUCTION              BID
                                           By authority of Part 21, Act 451, P.A. 1994, as amended.



INSTRUCTIONS:
          1.   Please read the information contained herein, and all other related information carefully. The Michigan
               Department of Natural Resources (DNR) makes no representations or claims regarding fitness for purpose,
               ingress and egress, conditions, and/or any covenants or restrictions of the property.
          2.   Provide the Parcel ID Number whenever addressing any questions or correspondence regarding your Bid.
          3.   Complete this Land Auction Bid in its entirety and submit to the address as indicated below.


Please orint or tvne the foflowina information.
Purchase Applicant's Name (Bidder)                                                Telephone

CITY OF MUSKEGON                                                                   (231) 724-6724
Street Address
933 TERRACE STREET
City, State, ZIP

MUSKEGON, MI          49440

As the Purchase Applicant, I understand and agree that:
     1.    The State of Michigan will only issue a Quit Claim deed.
     2.    Updated proof of the State's title to the desired land is not available and, if desired, must be obtained at
           purchaser's expense.
     3.    The Michigan DNR policy prohibits sale of State lands to organizations which are discriminatory on the basis
           of race, color, national origin, religion, disability, age, sex, height, weight or marital status. Appropriate
           documentation may be required.

 I hereby offer$ 36,001 • 0 0 for Land Auction Case# 1004 2 4 o                   , subject to the terms and conditions set
 forth in the Notice of Sealed Bid. Enclosed herewith is a bid deposit in the form of a Personal/ Cashier's Check or
 Money Order, payable to the STATE OF MICHIGAN, in the amount of$ 3,600.10                            , which represents ten
 percent (10%) of my offer. The balance of the bid will be made available within forty-five (45) days of receiving written
 acceptance notice. I understand that if I am not the successful bidder my bid deposit will be returned to me within ten
 (10) days of the auction date.



                                                                                                       Date




MAIL TO:

       SEALED BID, PARCEL ID NUMBER 1004240
       LAND AND FACILITIES
       MICHIGAN DEPARTMENT OF NATURAL RESOURCES
       PO BOX 30448
       LANSING Ml 48909-7948




                                                                                                         PR6345-3 (Rev. 08/08/2006)
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                                          ROUSE STREET
Date:       November 13, 2007
To:         Honorable Mayor and City Commission
From:      Water Filtration Plant
RE:         Control system annual software support



SUMMARY OF REQUEST:

Renewal of the annual customer support for the Wonderware control
system software at the Water Filtration Plant.



FINANCIAL IMPACT:

A one-time cost of $10,186.75.



BUDGET ACTION REQUIRED:

None. This item is budgeted.



STAFF RECOMMENDATION:

Staff recommends renewal of the annual software customer support
agreement at a cost of $10,186.75.
                                 MEMORANDUM

                                      11/1/07

TO:           M. AL-SHATEL, DEPUTY DIRECTOR

FROM:         R. VENEKLASEN, WATER FILTRATION

RE:           WATER PLANT CONTROL SYSTEM SOFTWARE ANNUAL
              SUPPORT CONTRACT


The control system software at the Water Filtration Plant is a product by Invensys
called Wonderware. This software has been the heart of the plant control system
since its inclusion in the Instrumentation and Control System Improvements
project in 1993. This is a robust operating platform that is still viable and has
subsequently been adopted by many water plants in West Michigan and
elsewhere. Wonderware operates as a layer on top of Microsoft Windows. Most
importantly it interfaces seamlessly with MS Excel so we can generate reports in
a spreadsheet format.

The control system software has two values; one is the cost of the operating
system the second is the configuration of the software to meet the specific needs
of the facility. This software has been continually improved and has added
features (tools) that have enhanced the plant operation. However the
configuration of the software to meet the specific needs of our facility is the
greatest investment

In order to take advantage of the improvements to the software over the years
we have subscribed to the annual technical support offered by Wonderware
through its representatives - currently Wonderware Central. This subscription
also allows us, or our consultant, to obtain solutions to problems or guidance in
configuring new aspects or applications within our system at no cost. Over the
years the cost of the annual support has varied as displayed below:

       Year                       Annual Support Cost
       2000                             $7200.00
       2001                             $6840.00
       2002                             $7605.00
       2003                             $5036.03
       2004                             $6100.00
       2005                             $7411.25
       2006                             $8565.50
       2007                             $10186.75
There are various reasons for the ups and downs for the cost of this service but
typically the cost increases are associated with significant improvements, or
changes, in the software - especially as it relates to changes in Microsoft
Windows and Microsoft Excel. For example; our system began with Windows
3.1 and has evolved through Window 95, Windows 98, Windows 2000 and is
now facing Windows Vista.

The peril of not purchasing the annual support is when the need to update the
Control software arises. It is more costly to purchase the upgraded software than
to have maintained the support and received the updates by virtue of the support
subscription.

Therefore it is my recommendation that we continue to purchase the control
system annual software support for 2008 from Wonderware Central at a cost of
$10186.75.
                                                    Quote                                 Date             Number

                                                                                        10/24/2007     AAAQ5526




     Bill To:                                                 Ship To:
    City of Muskegon                                          City of Muskegon
    Water Filtration Plant                                    Water Filtration Plant
    1900 Beach Street                                         1900 Beach Street
    Muskegon, MI 49441                                        Muskegon, MI 49441
    Attn: Accounts Payable                                    Attn: Robert Veneklasen




                                                          Terms              Rep   Quote Expires:           FOB

                                                       Net 30 Days           IS     11/23/2007

     Item                           Description                        Qty           Price Each            Total
10-4201           Customer Support, $30,000-$79,999 total         1                     10,186,75          10,186,75
                  license value at List Prices
                  - Renewal of CS#25852 through 12/31/08
                  - Includes SN#440268, 448537, 448539,
                  448540,448541, 448542, 448543,605928,
                  605929,608118, 608119, 752316, 777458

06-6914           Wonderware Development Studio                   1                          0.00                  0.00
                  Includes: Application Server 3.0, InTouch
                  10.0, InTouch 10.0 Terminal Services Edition,
                  Device Integration, Active Factory 9,2,
                  Historian Server 9.0, Information Server 3.0,
                  MS SQL 2005 Server and MS SQL 2005 SP2




Wonderware Central, 8465 Keystone Crossing, Suite 200,
Indianapolis, IN 46240                                                                  Subtotal $10,186.75
We are pleased to offer this quote to you, Upon approval, purchase
orders may be emailed or faxed to the contacts found below,                   Sales Tax (6.0%)               $0.00
**All Purchase Orders must include terms, taxable status, and any
special shipping instructions,                                                              Total $10,186.75
                                               ALL SALES ARE FINAL.
            An" Invoice not naid within terms is subiect to an additional 1.5% ner month finance charoe.
      Phone#                      Fax#                        Orders                          Web Site

    888-676-9933             888-676-4550         orders@wonderwarecentral.com       www.wonderwarecentral.com
Date:     11/13/17
To:       Honorable Mayor and City Commission

From:     DPW
RE:       Budgeted Equipment Replacement




SUMMARY OF REQUEST: Approval to purchase two Ford F-250 trucks from
Great Lakes Ford.



FINANCIAL IMPACT: $34,654.00



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approve purchase.
Memorandrnn

To:      Honorable Mayor and City Commissioners
From: DPW
Date: 11/13/17
Re:      Budgeted Vehicle Replacement



   The Equipment Division has scheduled the replacement for two of
our ¾ ton plow trucks. These vehicles are used by the Parks Department
to haul supplies for building maintenance and irrigation repair and plow
snow at the various parks.

      We have requested prices from area dealers as well as the statewide
purchasing contracts. Attached is a summary of the bids.


    In accordance with established purchasing policy, I am requesting
permission to purchase two 2008 Ford F-250 4X4 trucks from Great
Lakes Ford.




                                                                            1
I        - ··-·----·--
                                                   Equipment Purchase - 2007
                         ----~------------------------------~------------------




                                                             ··-,-----------
                                                             ...•


         · - - - ..             ··-   .   .   I
                                                  Macomb County Great Lakes Ford Whitehall Ford
                                                  3942 W. Lansing          2469 E. Apple Ave      i            3001 Colby Rd
    l"yp~c,f_V.ehicle ==t~p;~ryMi. 48H72. Musk; ··~n riJ!i__!9~42I··vvhit~h~11~i .49461-

     2008 Ford F-250 4X4
           - - - - - - -
                                                       $35,722.00                 $34,654.00                             $34,730.00
I     - - - - - - ·······

                               ·······-+-----                                                                              ----j




                                                                                                         ---   -----·------------


                            ---- --                                                           . ··I       ··········-·
                                              '
                                                                ·······+          .... ···-       1---
       Commission Meeting Date: November 13, 2007

Date:       November 1, 2007

To:         Honorable Mayor & City Commission

From:      Planning & Economic Development
           Department c.J:;r:_

RE:        Tool & Die Recovery Zone Status for
           Muskegon Tool




SUMMARY OF REQUEST:

To approve the attached development agreement and Resolution
establishing a Tool & Die Recovery Zone for Muskegon Tool, 1000 E
Barney Ave.

FINANCIAL IMPACT:

The City will forego approximately $23,000 per year for a total of
$346,365 in taxes for the 15 year period of the zone.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the development agreement and the resolution
establishing a Tool and Die Recovery Zone.

COMMITTEE RECOMMENDATION:

None
  10-29-' 07 08: 50 FROM-City of Muskegon              2317246790                   T-494 P002/007 F-954




                                DEVELOPMENT AGREEMENT
        CITY OF MUSKEGON TOOL AND DIE RENAISSANCE RECOVERY ZONE

               THJS IS AN AGREEMENT between the CITY OF MUSKEGON, a municipal
        corporation, of 933 Terrace Street, Muskegon, Ml 49440 ("City") and Muskegon Tool
        ("Company"), a Michigan corporation, of 1000 E. Barney Ave., Muskegon, MJ 49443.

                                                Recitals:

               A.      The City has received a request from the Company and intends to consider
       the location designation of a Tool and Die Renaissance Recovery Zone, and as a
       condition thereof, this Agreement must be approved and executed by the Company prior
       to the establishment of the Tool and Die Renaissance Recovery Zone. Upon approval of
       Tool and Die Renaissance Recovery Zone status for the Property, the City will sign this
       Agreenm1t. The City deems this Agreement to constitute a necessary element in the
       City's determination regarding the location of Company in the Tool and Die Renaissance
       Recovery Zone, and the City relies upon the undertakings of Company in the Agreement
       to allow and continue the Tool and Die Renaissance Recovery Zone status of the
       company.

              B.     The Company intends to install the projects set forth in its Application for
       the Tool and Die Recovery Zone. The Company understands that the City relies upon the
       undertakings of the Company in the Agreement to establish and to continue the
       Company's status as a Tool and Die Renaissance Recovery Zone Company.· ·

               NOW THEREFORE THAT PARTIES AGREE:

               I.     DOCUMENTS ATTACHEQ. Included in this Agreement are the
                      following documents which have been collected and relied upon by the
                      parties:

                      I. 1   Copy of the Michigan Renaissance Zone Act, as amended
                             to date

               2,     COMPANY AGREEMENT. The Company agrees to the following
                      commitments which it shall perform in a timely and reasonably acceptable
                      manner:

                      2.1    Maintain the current level of employment at the same level,
                             or better

               3.     AGREEMENT BY THE CIT'{. Provided this Agreement has been
                      executed and further provided all applications concerning Tool and Die
                      Renaissance Recovery Zone status have been properly filed, the City shall,
                      in a timely manner, proceed with the appropriate ffieeiiilgs or applications
                      including as necessary \vith the State    of
                                                                 Mkhigan and with all local




OCT-29-2007   07:54                      2317246790                          97\                     P.02
   10-29-' 07 08: 51    FROM-City of Muskegon            2317246790                       T-494   P003/007 F-954




                         review entities by law. The City may consider this agreement in a meeting
                         separate from and prior to the meeting in which the City or any entity
                         considers the approval of the applicant for Tool and Die Renaissance
                         Recovery Zone status.

                 4.      EVENTS OF DEFAULT. The following actions or failures to comply
                         shall be considered events of default by the Company:

                         4.1    Failure to meet any of the commitments set forth above

                         4.2    Failure to afford to the City the documentation and rep01ting
                                required

                         4.3    The failure to pay any taxes other than those exempted by the
                                Michigan Renaissance Zone Act, and the failure to pay any special
                                assessments levied on the Company's property timely after levy or
                                final appeal

                         4.4    The violation of any provisions, promises, commitments,
                                considerations or covenants of this Agreement

                         4.5    Relocation of the Company to a location outside the City limits of
                                the City of Muskegon.

                5.       REMEDIES ON DEFAULT. In the event of any of the above defaults,
                         the City shall have the following remedies which it may invoke without
                         notice, except as may be reasonably required by the Company's rights to
                         due process:

                         5.1    Failure to Install Improvements. In the event the improvements,
                                renovations llnd the equipment have not been completed or
                                installed by the time set forth in the attachments, the City will
                                petition the State to revoke the Tool and Die Renaissance Zone
                                status from the Company.

                         5.2   failure to Expend the Funds Represented. Whether or not the
                               installations have been completed, if the Company has not
                               expended the funds it has represented on its application that it
                               would invest, the City will petition the State to revoke the Tool
                               and Die Renaissance Recovery Zone status from the Company.

                         5.3    Failure to Maintain the Current Level of Employment. Whether or
                                not the installations have been completed, if the Company has not
                                maintained the number of employees at the same level as when the
                                application for a Tool and Die Renaissance Recovery Zone
                                designation was submitted, the City will petition the State to


                                                                                                     2



OCT-2"3-2O07   07: 54                     2317246790                           9r-:i•-·
                                                                                 r,,-.                    P.03
    10-29-' 07 08: 51 FROM-City of Muskegon            2:317246790                   T-494    P004/007 F-954




                              revoke the Tool and Die Renaissance Recovery Zone status from
                              the Company.

                      5.4     Relocation of the Company to a Location Outside of the City
                              Limits of the 9ity of Muskegon. In the event the Company
                              relocates outside of the City of Muskegon, the City will petition
                              the State to revoke the Tool and Die Renaissance Zone status from
                              the Company.

                      5.5    Other Violations. For any material violations of this Agreement,
                             the City reserves the right to seek declaration by a court or entity
                             with authority.

                      5.6    City Considerations for Determination in Matters of Default. The
                             City shali not unreasonably take any action which may result in
                             invocation of the remedies above. It shall take the following
                             factors into consideration:

                             5.6.1   The economic conditions, if any, reasonably known to the
                                     City, which are found to be directly related to the default or
                                     circumstance causing the proposed action by the City

                             5.6.2 The performance of the Company in meeting the
                                   commitments and requirements of the Application, the
                                   submitted materials, and the provisions of the Certificate
                                   and this Agreement

                             5.6.3   Whether the effect on the City's finances of the Company's
                                     actions is material and substantial

                             5.6.4 Whether the circumstances affecting the status of the
                                   company were created by occurrences beyond the control
                                   of the Company or could have been avoided, and, in
                                   particular, whether the Company could economically and
                                   feasibly continue to perform as required by this Agreement.

                      5.7    If the Company does not comply with Sections 5.1, 5.2, and 5.3,
                             they will be required to pay the taxes normally due on the property.

               6.     Governing Law. This Agreement shall be construed and enforced in
                      accordance with the laws of the State of Michigan applicable to contracts
                      made and to be performed within the State of Michigan, and in particular
                      the Michigan Renaissance Zone Act of the State, as amended.




                                                                                                    3



OCT-29-2007   07:54                    2317246790                            97\                        P.04
    10-29-'07 08:52 FROM-City of Muskegon                   2317246790                   T-494 P005/007 F-954



                   7.       Countemar:!~- This Agreement may be executed in one or more counter-
                            parts, Notwithstanding such execution, all such counterparts shall
                            constitute one and the same Agreement

                   8,       Benefits, This Agreement shall be binding upon and inure to the benefit
                            of the respective parties, their successors assigns and personal
                            representatives.

                   9,       Effective Date, This Agreement shall be effective on the date the State of
                            Michigan grants the Tool and Die Renaissance Recovery Zone
                            designation,

                   10,      Invalidity. In the event any provision of this Agreement is declared
                            invalid by a court or tribunal having competent jurisdiction, the remainder
                            of the Agreement shall remain in full force and effect,


          CITY OF MUSKEGON,
          a municipal corporation
                                     --------
          By



          and
                   Ann Marie Becker, City Clerk

          Dated:   1//4 ve.m bec I,S:__ , 2007

          Muskegon Tool

         By        ~~l
                   Thomas R. Wheeler, President


         and       WA,..;.     T, __~L✓
                                      ._&.b.,,-=~---­
                   William T, Wheeler, Treasurer


         Dated:     d'"'"J         2 7 , 2007



                                                                                                      4



OCT-2'3-2OO7    07: 54                       2317246790                                                   P,0.5
                                  2007-95(f)

                    Resolution to Request a Renaissance Recovery Zone


WHEREAS, the City of Muskegon desires to promote economic activity and maintain/
increase the number of jobs available to residents of the area, and;

WHEREAS, certain industries in the state are facing difficult times and the tool and die
industry, in particular, has sustained losses due to foreign competition and increased
productivity;

WHEREAS, the designation of a Renaissance Recovery Zone will temporarily reduce
the tax burden paid by the business enabling it to reposition itself to compete globally,
and;

WHEREAS, the business have entered into a collaborative agreement with other
business entities having the appropriate North American Industry Classification System
(NAICS) codes, and;

WHEREAS, the qualified tool and die business property is property leased or owned by
a tool and die business and used primarily for tool and die operations;

WHEREAS, should the area be designated a Renaissance Recovery Zone, property
within that zone will be exempt from taxes levied by the city, county, and other units of
government as provided under this Act, and;

WHREAS, we estimate that the tax revenue lost, which is estimated on the attached
schedule, would be a small fraction of the benefits the designation of a Renaissance
Recovery Zone will bring the community.

THEREFORE BE IT RESOLVED, that the City requests that the State of Michigan
designate Muskegon Tool, Property ID numbers 24-900-351-0395-00, 24-133-300-
0001-10, and 24-133-300-0001-00 identified by the resolution a Renaissance Recovery
Zone under Public Act 376 of 1996 for a duration of up to 15 years.

                    th
Adopted this   13        day of November , 2007



Ayes: Gawron, Spataro, Warmington, Wierenga, Wisneski.! and Carter,_

Nays: None

Absent: Shepherd
                                                                                    2007-95(f)




                                                            ATTEST: ~'vv", {\ l"0\i\1ci   ~:cJJ--___
                                                                         Ann Marie Becker
                                                                                    Clerk

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 /4ve.w6e, /3 , 2007.
                                                                    \ \11,   ,1:)
                                                                               1\\;'\,u l~LL lv,
                                                                      ~ Ann Marie Becker
                                                                                        Clerk
                                  City of Muskegon
    Comparison of 2007 Year Millage Rates to Ren. Zone Millage Rates and % Savings




                                                                              % Savings
                                       Non-Principal                              for
                                        Residence             Ren.Zone       Non-Principal
                                         Millage               Millage        Residence
County tax                                   6.7357                0.3400          94.95%
Community College tax                        2.2037                0.0000        100.00%
MAISD tax                                    3.7580                0.0000        100.00%
City tax                                    11.0685                0.0000        100.00%
School Operating tax                        18.0000                0.0000        100.00%
School Debt tax                              7.0000                7.0000           0.00%
Hackley Library tax                          2.4000                0.0000        100.00%
State Education tax                          6.0000                0.0000        100.00%
                            Total           57.1659                7.3400          87.16%




RE: Property at 1000 & 1080 E Barney Ave

       Real Property:       The Assessor has assessed the real property for these
                            addresses: parcel# 24-133-300-0001-00 & 24-133-300-0001-10.
                            The owner is listed as Muskegon Tool Property Co LLC.
                            The 2007 Taxable Value =         $ 155,632 .
                            Without the ren zone the projected tax bill total for both
                            winter and summer would =        $        8,897
                            With the ren zone the projected tax bill total for both
                            winter and summer would =        $        1,142

                            Annual prooertv tax savings =    $     7,755



     Personal Property:     The Assessor has assessed the personal property for this
                            address set up as parcel# 24-900-351-0395-00.
                            The owner is listed as Muskegon Tool Industries.
                            The 2007 Taxable Value=          $ 307,800 .
                            Without the ren zone the projected tax bill total for both
                            winter and summer would =        $      17,596
                            With the ren zone the projected tax bill total for both
                            winter and summer would =        $        2,259

                            Annual propertv tax savinas =    $    15,336
Date:         November 5, 2007
To:           Honorable Mayor and City Commissioners
From:         Lowell Kirksey, Leisure Services Supervisor
RE:           Special Events-Catamaran Racing Association
              Request to hold a Catamaran sailing event, and
              camp over night at Pere Marquette


SUMMARY OF REQUEST:               Catamaran Racing Association of Michigan is
requesting permission to hold a Catamaran sailing event at Pere Marquette Park
August 2-3, 2008. They intend to use the City owned lot that is currently leased by
Capt. Jacks for overnight camping on August 2.

The owners of Capt. Jacks submitted a letter indicating their support of the event.
Two organizations hosting separate events at Pere Marquette during this time,
Inside/Out volleyball and Meals on wheels 5k run/walk race, have expressed support
for the event.

FINANCIAL IMPACT: None.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To approve the attached resolution allowing for
overnight camping at Pere Marquette for this event August 2-3, 200S.

COMMITTEE RECOMMENDATION: This request was recommended for approval
by the Leisure Services Board at their October 15, 2007 meeting.
                     CITY OF MUSKEGON
                 MUSKEGON COUNTY, MICHIGAN

                           :RESOLUTION NO.                        2007-95(g)


A RESOLUTION AJ?J'JlOVING OVERNIGHT
CAMPING FOJl THE CATAMARAN JlACING
ASSOCIATION OF MICHIGAN

The City Commission of the City ofMnskegon hereby RESOLVES:

                                           Recitals

   I.   The Catamaran Racing Association Of Michigan is planning a sailing event for August 2-
        3, 2008; and

   2.   Whereas, they are requesting overnight camping at Pere Marquette Park. The event will
        be held in the city parking lot leased to Captain Jacks Restaurant; and

   3. Whereas, there is support for the event from Captain Jacks Restaurant and representatives
      from other events taking place at Pere Marquette Park that weekend.


   NOW, THEREFORE, THE CITY COMMISSION RESOLVES:

        The City Commission agrees to allow overnight camping at Pere Marquette Park for the
        purpose of hosting members of the Catamaran Racing Association of Michigan on the
        night of August 2, 200$.

   Adopted this l_l_ day of November, 2007.

        AYES: Gawron, Spataro, Warmington, Wierenga, Wisneski, Carter

        NAYES:     None
                 ------------------------
        ABSENT:     She herd


                                                       By:




                                                       By:
                                     CERTIFICATION
                                       2007-95(g)

This resolution was adopted at a regular meeting of the City Commission, held on November 13,
2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the
State of Michigan, Act 267 of the Public Acts of 1976.

                                           CITY OF MUSKEGON



                                           By:   \~,-,,_;\~\-,·\\,,,\. \ .\, o •·. V
                                                                        l '.).\...\.   C\..
                                                    Ann Marie Becker, MMC
                                                    City Clerk
Date:      November 13, 2007

To:      Honorable Mayor and City Commissioners

From:        Finance Director

RE:     Telecommunications Expense Audit



SUMMARY OF REQUEST:                 The City recently solicited proposals for firms to conduct an audit of
our telecommunications (telephone, cellular and data) expenses. Such audits are commonly done by
larger organizations having complex telecommunications structures. Typically the auditing firms are
compensated on a contingency basis, with payment based on a percentage of actual savings realized by
the City. The City received three responses to the RFP (a fourth was received late and not opened).
The RFP responses are summarized below:

                                                                                                  Costif$30k
                            Office                                                     Months     Savings for
           Firm            Location                 Price Proposal                    in Effect   Past3 Years

                                               40% of Savings up to $20,000                        $11,500 (Net
                                             35% of Savings $20,001 to $30,000           24       Savings to City
           Abillta           Lansing                                                                 $18,500)
                                             30% of Savings $30,001 to $40,000
                                               25% of Savings over $40 1001
                                                                                                     $5,985 (Net
                                           $1,995 fee per year fee (not contingency
      Schooley~Mitchell    Grand Rapids                                                  24        Savlngs to City
                                                           based)
                                                                                                      $24.015\
                                                                                                    $15,000 (Net
                                                       50% of Savings
      Schooley-Mitchell    Grand Rapids                                                  24        Savings to City
                                                                                                      $15,000\
                                               40% of Savings up to $50,000                         $12,000 (Net
   Total Solutions Group     Saginaw         30% of Savings $50,001 to $100,000          24        Savings to City
                                               20% of Savinas over $100,000                           $18,000\
After rev1ew1ng proposals and checking references, the City recommends that Ab1hta be selected to
provide this service. It is the best contingency based proposal received.

FINANCIAL IMPACT: Some staff time is involved in gathering data and coordinating the contract.
Potential budgetary savings or billing credits may result if billing errors or overcharges are discovered.

BUDGET ACTION REQUIRED: None. If successful, the program will result in budget savings to
the City; otherwise there is no direct cost other than some staff time.

STAFF RECOMMENDATION:                     Selection of Abilita to audit the City's telecommunications
expenses.

COMMITTEE RECOMMENDATION:                         None.
                 Commission Meeting Date: November 13, 2007

Date:         November 1, 2007
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development ci(__.,..
RE:           Public Hearing - Request for a time extension for the Obsolete
              Property Rehabilitation Exemption Certificate at 790 Terrace



SUMMARY OF REQUEST:

Promised Land Associates, 3355 Merriam Street, Muskegon Heights, Ml 49444, was
issued an Obsolete Property Rehabilitation Exemption Certificate (resolution number
2005-54 b, issued June 14, 2005) for the property located at 790 Terrace Street
Muskegon, Ml. The timeline to complete the rehabilitation was one year, giving them until
June 14, 2006 to do so. However, a number of unforeseen problems occurred during this
time, making the applicant unable to complete the rehabilitation. The applicant is now
requesting an additional two (2) years to rehabilitate the building. The two (2) year
extension would give the applicant until November 14, 2009 to complete the rehabilitation.
Total capital investment for this project was stated to be $1,200,000. The project was to
consist of a restaurant/banquet hall that would also feature live entertainment. This project
was to result in the creation of 40+ new jobs in the City. Because of the new jobs, and the
amount of investment, the applicant was granted a 12 year certificate.


FINANCIAL IMPACT:

If an extension to the Obsolete Property Rehabilitation Exemption Certificate is granted,
the property taxes would be frozen for the duration of the certificate.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

If the City Commission decides to grant an extension for the Obsolete Property
Rehabilitation Exemption Certificate, it is recommended that only one (1) additional year
be granted. That would give the applicant until November 13, 2008 to rehabilitate the
building.

COMMITTEE RECOMMENDATION:

None
                                 CITY OF MUSKEGON
                             MUSKEGON COUNTY, MICHIGAN

                             RESOLUTION NO. 2007-96(a)


A resolution approving a time extension for the Obsolete Property Rehabilitation
Exemption Certificate for Promised Land Associates.

The City Commission of the City of Muskegon hereby RESOLVES:

                                            Recitals

A.    An Obsolete Property Rehabilitation Exemption Ce1tificate (Resolution number 2005-
      54b) was awarded by the City Commission for Promised Land Associates after hearing
      on June 14, 2005.

B.    The City Commission determined that the applicant would have twelve (12) months to
      complete the rehabilitation. It was to be completed by June 14, 2006, one year after the
      Certificate was issued.

C.    The applicant was unable to rehabilitate the building by the June 14, 2006 deadline.

D.    A City Commission Meeting was held on May 22, 2007 in which the Housing Board of
      Appeals requested that the building be demolished within 30 days, due to it being unsafe,
      substandard, and a public nuisance. A motion was made to demolish the building, but the
      motion did not pass.

E.    Promised Land Associates is requesting a two year extension to complete the
      rehabilitation, so that they may retain their Obsolete Property Rehabilitation Exemption
      Certificate. A two year extension would give the applicant until November 13, 2009 to
      rehabilitate the building.

F.    The City of Muskegon is a qualified local governmental unit as determined by STC
      Bulletin No. 9 of 2000, dated July 12, 2000.

G.    An Obsolete Property Rehabilitation District in which the application property is located
      was established after hearing on June 14, 2005, being the same date that the district was
      established.

H.    The applicant, Promised Land Associates, is not delinquent any taxes related to the
      facility.

I.    That notice pursuant to statute has been timely given to the applicant, the assessor for the
      City of Muskegon, representatives of the affected taxing units and the general public.
        NOW, THEREFORE, THE CITY COMMISSION RESOLVES:

1.     Based upon the statements set forth in, and incorporating the recitals to this resolution,
       the City Commission hereby approves the application filed by Promised Land Associates,
       for a time extension on their Obsolete Property Rehabilitation Exemption Certificate, to
       be effective for a period of fifteen (15) months from the date of the denied motion to
       demolish the building (May 22, 2007), giving the applicant until August 22, 2008 to
       rehabilitate the building.

2.     BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set
       forth in Attachment A, the legal description containing the facilities to be improved;

3.     BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant
       shall comply with the representations and conditions set forth in the recitals above and in
       the application material submitted to the City.

This resolution passed.

Ayes: Spataro, Wierenga, Carter, and Gawron

Nays: Warmington and Wisneski

                                                    CITY OF MUSKEGON
                                                      \    \         /\),    G       '
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                                                                                         ,I_
                                                    By ···-.j,,1 ~,,\-~.,,_ \ 'Q'v\ A .\ , 2,,Q__
                                                                                                     I.l
                                                                                                    u /\-.,
                                                        Ann Marie Becker, City Clerk




                                        CERTIFICATE

This resolution was adopted at a meeting of the City Commission held on November 13, 2007.
The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of
Michigan, Act 267 of the Public Acts of 1976.

                                                    CITY OF MUSKEGON

                                                    ~~~\'1/0~0,                     ;~)c0IC 1,.
                                                          Ann Marie Becker, City Clerk




                                                2
Attachment A
CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 10, 11 & 12 EXC SLY 63 FT THEREOF,
ALSO LOT 13 & NLY 12 FT OF NWLY 41 FT OF LOT 14 BLOCK 175
        Commission Meeting Date:            November 13, 2007


Date:       November 6, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Resolution to Sell 1122 Spring


SUMMARY OF REQUEST: To approve the attached Resolution to Sell
the City owned house at 1122 Spring to Ms. Georgia Crenshaw, of 322
Sumner, Muskegon, for the expected appraised value of $65,000 minus
the $15,000 subsidy.

The house at 1122 Spring is part of the Operation R&R initiative, also
known as "Spring Street Awakening" the structure was obtained by the
City of Muskegon through the tax reverted process. After the City
obtained the house from the State of Michigan a total rehabilitation of the
house was completed including abatement of any lead in the house.

FINANCIAL IMPACT: The program income derived from this transaction
will be deposited in the City's HOME.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the Resolution and the sale
of 1122 Spring to Ms. Georgia Crenshaw.

COMMITTEE RECOMMENDATION: The City Commission and the
Land Reutilization Committee approved the project.
                     MUSKEGON CITY COMMISSION

                              2007-97(a)

            RESOLUTION TO APPROVE THE PURCHASE OF
         CURRENTLY STATE OWNED PROPERTY AT 1122 SPRING


WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;



WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;



WHEREAS, the City of Muskegon is dedicated to promoting homeownership
throughout its neighborhoods;



NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the sale of 1122 Spring to Georgia Crenshaw of 322 Sumner,
Muskegon. Ms. Crenshaw will purchase the house as an owner-occupied
structure ..

Adopted this 13 th day of November 2007

Ayes: Spataro, Warmington, Wierenga, Wisneski, carter, Gawron

Nays: None




                             By     j ~· "; I '   i
                                                        () "   I
                                                               II iv

                                  Ann Marie Becker, M    C City Clerk
                                     CERTIFICATION
                                       2007-97(a)

This resolution was adopted at a regular meeting of the City Commission, held on November 13,
2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the
State of Michigan, Act 267 of the Public Acts of 1976.

                                           CITY OF MUSKEGON

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                                           By: _\_~_\_\\_._-"\_·~_\_\_·"-!_\=i1,_~.l~.~-'-"1,~(.e>."-JOc·-'"={~.   ··--1J-~
                                                                                                               1..,~·



                                                   Ann Marie Becker, MMC
                                                    City Clerk
                                                         •   ~   ~


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                  AGENDA ITEM NO.- - - - - --
              CITY COMMISSION MEETING- - - - - - -


TO:               HONORABLE MAYOR AND CITY COMMI~                      NERS

FROM:             Kenneth D. Grant, Income Tax Administrator~

DATE:             October 30, 2007

RE:               Donation program for 2007 Individual Income Tax Returns


SUMMARY OF REQUEST:
Approval of multiple donations programs for the 2007 income tax returns. Our
department's goal is to increase the number tax refunds donated by 20-30%. Each year
we will feature two or three donation options for the taxpayers.

Some of our top donations programs include Lakeshore Trail Improvements, Muskegon
Summer Celebration Fireworks, & the upkeep of Veteran' s Memorial Park.

FINANCIAL IMPACT:
The average amount collected each year is $2,000.00. Each donated refund saves the city
approximately $1. 00 in checks fees.

BUDGET ACTION REQUIRED:
None

STAFF RECOMMENDATION:
Approval recommended

COMMITTTEE RECOMMENDATION:
Date:          November 13, 2007

To:            Honorable Mayor and City Commissioners

From:          City Treasurer

RE:            Approval to Purchase New Utility Billing System


SUMMARY OF REQUEST:

Approval to purchase the Equalizer Utility Billing System from BS&A Software. This
request is the result of an investigation by City staff of possible utility billing software
solutions that will improve productivity and operational efficiency.

FINANCIAL IMPACT:

Total cost of $36,000.

BUDGET ACTION REQUIRED:

The 4 th Quarter Budget Reforecast to include an adjustment for this purchase as a water
fund capital expenditure.

STAFF RECOMMENDATION:

Approval to purchase the Equalizer Utility Billing System.

COMMITTEE RECOMMENDATION:

NIA
Date: November 7, 2007

To:    Honorable Mayor and City Commissioners

From: City Treasurer

RE:    Background Information on the Utility Billing System Request


                                    Reason for Search

The current utility billing system has been in place at the City since 1997 and was a part
of the financial and payroll systems conversions that occurred between 1996 and 1997.
At that time, it was anticipated that the utility billing system would be an interface with
the City's financial accounting and reporting system. However, an actual interface of the
systems has not materialized.

As a part of the Finance Division, one of the 2007 budget year goals for City Treasurer's
Office was to investigate possible utility billing software solutions that will improve
productivity and operational efficiency. In addition, with the rising costs of water utility
bills, it becomes more difficult for consumers to manage a quarterly utility bill and would
be easier for customers to budget and manage a monthly bill. Such a change could also
improve the City's cash flow. Therefore, there is a need to have a utility billing system in
place that would easily accommodate a change from quarterly to monthly billing.

                                   Search and Criteria

Over the last year, City staff began research to replace the cunent utility billing system
with a system that would offer the following:

       1) Capability of changing customer billing cycle from quarterly to monthly.
       2) Easier procedure for Final Bills, Past Due/Shutoff.
       3) Provide software that is compatible with the City's cunent computer
            technology.
       4) Ability to rollover outstanding balances to be placed on the tax bill.
       5) Auto meter reader system interface.
       6) Unlimited entry of metered and non-metered service types, billing items, work
            order types, etc.
       7) Ability of process ACH (Automated Clearing House) electronic payments for
            customers that have signed-up for direct bank debit to pay their bills.
       8) Automatic calculation of penalties.
       9) Event scheduler that allows the scheduling of unattended events such as
            billings, penalty calculations, importing meter reads, etc.
       I 0) Ability of displaying utility billing data on the web.
       11) Positive reputation.
       12) Quality customer support.
                                         Results

We have found that there is a myriad of utility billing systems on the market that can be
purchased at prices that range from a low of about twelve thousand to over several
hundred thousand dollars. However, our investigation found that the systems at the lower
end of the cost range did not meet all of the search criteria. Most of the systems that met
the search criteria were at the high end of the cost range. The system that met all of our
search criteria, while being at a reasonable cost, was the BS&A Equalizer Utility Billing
System.

BS&A Software, Inc, was founded in I 987 in Michigan with a vision of providing a
powerful software system for local government in Michigan. The company has made a
commitment to continuously improve the quality of their existing products and services
while constantly looking toward the future. In I 998, the City began using BS&A
Software's Assessing and Property Tax Administration Systems. Since that time, all of
the municipalities in Muskegon County that perform assessing and property tax billing
functions have begun using the BS&A systems. With the successful deployment of the
Assessing and Tax Systems, about three years ago, the City's Inspections Department
began using the BS&A Permits and Inspections System. City staff have interviewed and
met with several other Michigan municipalities that are cmTently using the BS&A Utility
Billing System who have given very positive references.


                      Cost of the Proposed Utility Billing System

The proposed costs for BS&A Software's Equalizer Utility Billing System are as follows:

Software system - $24,000
Network server - 5,000
On-site Training - 5,000
Data conversion     2,000

Proposed Total     $36,000

                                       Conclusion

The services and the cost of the proposed utility billing system provided by BS&A
Software is the most prudent choice when considering current technologies in use at the
City while seeking increased productivity and operational efficiency at a reasonable
pnce.
                                         AGENDA ITEM No.

                     MUSKEGON CITY COMMISSION - November 13, 2007


TO:                         Honorable Mayor & City Commissioners

FROM:                       Planning Department (j£__,

DATE:                       October 23, 2007

SUBJECT:                    Revocation of a Neighborhood Enterprise Zone Certificate


SUMMARY OF REQUEST

Stan and Chris Cunningham is in violation of Sec. 207.781 sec. 11 subsection (4) which states:

        lf the owner of the facility fails to make the annual payment of the neighborhood ente,prise zone tax and the ad
        valorem property tax on the land under the general property tax act, 1893 PA 206, MCL 211. J to 211.157, the
        commission by order shall revoke the certificate. However, ifpayment ofthese taxes is made before the revocation is
        effective, the commission, upon application of the owner, shall rescind the order ofrevocation. Ifpayment of these
        taxes and any subsequent ad valorem property tax due on the facility is made after revocation of the certificate, the
        commissfon, upon application of the owner, shall reinstate the certificate for the remaining period of time for which the
        original certificate would have been in effect.


Stan and Chris Cunningham have failed to pay 2006 taxes for the property located at 1223
Morgan Avenue whose parcel numbers are 24-941-096-0253-00 and 24-613-000-0751-00.
Approval or denial by the City Commission is required must be forwarded to the State Tax
Commission. Staff sent the owners a letter with the County Treasurer's phone number on it
regarding the pay off amount of the delinquent property taxes on September 19, 2007 giving
them until October 12, 2007 to pay the taxes. They remain unpaid.

FINANCIAL IMP ACT

The property will no longer be able to take advantage of the certificate number 96-253 which
allowed taxation at 50% of the State average for a stated number of years.

BUDGET ACTION REQUIRED

None.

STAFF RECOMMENDATION

Approve revocation of the NEZ cettificate and have the Mayor and City Clerk sign the resolution
and submit it to the State Tax Commission.

COMMITTEE RECOMMENDATION

None.

O:\Planning\COMMON\NEZ\1223 Morgan\Agcnda Item-revocation.doc
                                   Resolution No. 2007-97(d)

                             MUSKEGON CITY COMMISSION

       RESOLUTION TO REVOKE THE NEIGHBORHOOD ENTERPISE ZONE
                         CERTIFICATE # 96-253




WHEREAS, Stan and Chris Cunningham have not paid their property taxes for the property
located at 1252 Adams in the Marquette neighborhood, and;

WHEREAS, the applicant owes for property taxes for the parcel # 24-941-096-0253-00 for the
tax year 2006, which does not meet the eligibility criteria for a Neighborhood Enterprise Zone
Certificate;

WHEREAS, the applicant owes for property taxes for the parcel# 24-613-000-0751-00 for the
tax year 2006, which does not meet the eligibility criteria for a Neighborhood Enterprise Zone
Certificate;

NOW, THEREFORE, BE IT RESOLVED that the Neighborhood Enterprise Zone Certificate#
96-253 be revoked.

Adopted this, 13 th day of November, 2007.



Ayes: Wisneski, Carter, Gawron, Spataro, Warmington, Wierenga

Nays: None

Absent: Shepherd




                                                          ,,:---_;,
                                                   Attest:\  \l\ '-'~\~\ ; \t,,l ,)C.L\
                                                                           i
                                                         A~ Marie Becker, MMC
                                                         City Clerk
                                                                                   2007-97(d)
                                       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 November 13, 2007.

                                                                By:
                                                                      (\       ./\I         Z ~
                                                                      \,\.1v1"-1 '\£1._,kA, L.c0~1
                                                                          Ann Marie Becker, MMC
                                                                            City Clerk
              Commission Meeting Date: November 13, 2007




Date:          November 5, 2007
To:            Honorable Mayor & City Commission
From:          Planning & Economic Development Department
RE:            Establishment of the Downtown Development Authority
               District as a "Redevelopment Project Area"


SUMMARY OF REQUEST: There is a new type of liquor license available for
businesses within the boundaries of the Downtown Development Authority (ODA)
District. It is similar to the former DOA liquor license. In order for the Liquor Control
Commission to approve issuance of these licenses, the buildings that house the
licensed premises must be located within an established "Redevelopment Project
Area". The Redevelopment Project Area has the same boundaries as the current
ODA In order to establish this area as the Redevelopment Project Area, the City
Commission must approve the attached resolution.



FINANCIAL IMPACT: No immediate impact, although the granting of additional liquor
licenses downtown will increase the number of restaurants and entertainment venues
possible, thus increasing the City of Muskegon's tax revenues.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: To approve the attached resolution and authorize the
Mayor and Clerk's signatures.



COMMITTEE RECOMMENDATION: None.
                                   CITY OF MUSKEGON
                               MUSKEGON COUNTY, MICIUGAN

                                  RESOLUTION NO, :zoo7-97(e)

A resolution concerning the establishment ol the Downtown Development
Authority District as a ''redevelopment project area",

The City Commission of the City of Muskegon hereby RESOLVES:

                                            Recitals

   1. The City of Muskegon Ordinance No. 969 established a Downtown Development
      Authority District in the City of Muskegon under 1975 PA [97 (MCL 125.1651, et seq.)

   2.   436.152la(l)(b) of the Michigan Compiled Laws provides that in addition to the number
        of on-premises licenses available in cities under Section 531([), the Michigan Liquor
        Control Commission may issue licenses to establishments located within a downtown
        development authority district established under 1975 PA 197 (MCL 125.1651, et seq.)
        where the governing body of the city has established the development district as a
        redevelopment project area.

   NOW, THEREFORE, THE CITY COMMISSION RESOLVES:

        The City Commission deems it to be in the best interest of the City of Muskegon that the
        Downtown Development Authority District be established as a redevelopment project
        area under MCL 436.1521a(l)(b) in order to advance the objectives of the City of
        Muskegon to halt property value deterioration and increase property tax valuation and
        revenues within the District by creating the opportunity for the establishment of new
        bars/restaurants within the District.

   Adopted this 13 th day of November, 2007.

        AYES: Carter, Gawron, Spataro, Warmington, Wierenga, and Wisneski

        NAYES: None

        ABSENT: Shepherd



                                                                                     ·ngton

                                                               (

                                                               \ .'            .\    . c·
                                                                   \~)-'-..I," ~"'-!VJ.
                                                                           ;        .   (            l L,
                                                        By:                             1;,,'-..,0
                                                                      Ann Marie Becker, MMC
                                                                      Its Clerk
                                     CERTIFICATION
                                       2007-97(e)

This resolution was adopted at a regular meeting of the City Commission, held on November 13,
2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the
State of Michigan, Act 267 of the Public Acts of 1976.

                                          CITY OF MUSKEGON

                                              \'
                                          By: ~-\\vi~l\:\-0      C
                                                                     r, ~ ,._ ~0\Lv\
                                                Ann Marie Beckel', MMC
                                                City Clerk
                             PARMENTER O'TOOLE
                                                  Attorneys at Law


                          601 Terrace Street • P.O. Box 786 • Muskegon, Michigan 49443~0786
                                Phone 231.722.1621 • Fax 231.722.7866 or 231.728.2206
                                               www.Parmenterlaw.com




October 30, 2007



Cathy Brubaker-Clarke
Planning Department                       By Email: cathy.brubaker-clarke@postman.org
City of Muskegon
933 Tetrnce Street
Muskegon,MI49443-0536

Re:    Development District Area Class C On-Premises Licenses
       Resolution Establishing the DDA as a Redevelopment Project Area

Dear Cathy:

We have made significant progress towards obtaining a determination of the number of
DDA Class-C On-Premises Liquor Licenses for which the City of Muskegon will be
eligible under MCL 436.1521 a(] )(b ). As is turns out, it will be many'

We have been working with Dennis Bums to calculate the total private and public
investment within the DDA during the period beginning January 1, 2004 and ending on
October 31, 2007. There has been a grand total of $17,745,000 of such investment. This
makes the City eligible for 88 Class C On-Premises Licenses. I have attached for your
review a copy of the Affidavit and Exhibit, which I have asked Mr. Barnes to execute
before a notary, and to have it certified by the City Clerk.

You should !mow an important fact with regard to eligible Licenses. Once the number of
eligible licenses has been established for a given period of time, the City does not lose
them. In addition, if there are incremental additional expenditures of $200,000 within the
DDA, additional licenses may be applied for and awarded. In other words, once
established, the City can bank any un-issued DDA Licenses for future use.

We submitted a draft of Mr. Bums' Affidavit and exhibit of expenditures to the MLCC
for preliminary approval. With regard to other documentation to be provided by the City,
the MLCC approved everything we submitted, however, they will require that the City
adopt and submit to them the following additional Resolutions:
        a.     Resolution Establishing DDA as a "Redevelopment Project Area".
Ms. Becker has provided me with Resolution 88-78(c) and Ordinance No. 969
establishing a Downtown Development Authority in the City of Muskegon. Because this
Resolution dates back to 1988, it predates the enactment of the statute under which the
City of Muskegon now seeks DDA Class C On-Premises Licenses. Therefore, the City
Commission must now adopt a Resolution that "establishes the Downtown Development
Authority District as a redevelopment project area under MCL 436.1521 a(l)(b)."; and

       b.      Resolution Approving Specific Applicant. The City will need to adopt a
Resolution which approves a specific applicant (individual, corporation, limited liability
company, limited partnership), at a specific location "ABOVE ALL OTHERS."
Remember, that to the extent the City is eligible for multiple DDA Class C On-Premises
Licenses, the City is permitted to approve multiple prospective applicants concurrently.
You will, however, need to pass a separate Resolution for each and every applicant.

Currently, our office is completing a DDA Class C On-Premises License Application for
Iordache Group, Inc. for use at a restaurant to be operated downtown. This is currently
confidential, however, we anticipate entering into a lease with the Lessor in the very near
future. As soon as we have been authorized to do so, we will be submitting a request on
behalf of the applicant for the City Commission to recommend approval of their
application.

In the meantime, when will the Commission be able to consider adopting the Resolution
that established the DDA as a redevelopment project area? Please call me to discuss.

Sincerely yours,

¥JL<;;:/ 71 cc{'~
Keith L. McEvoy
Direct: 231. 722.5413
Fax 231.722.7866
Internet Address: klm@Parmenterlaw.com

Attachment
             AFFIDAVIT OF PUBLIC AND PRIVATE INVESTMENT

I, Dennis W. Bums, in my capacity as Assessment Administration Supervisor for the City
of Muskegon, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan
49440, being first duly sworn, deposes and says:

THAT I am familiar with and make this affidavit with regard to public and private
investment in real and personal property within the qualified Downtown Development
Authority in the City of Muskegon established pursuant to Ordinance No. 969 ("DDA
District"); and

THAT, upon information and belief, attached Exhibit A reflects actual public and private
investment in real and personal property within the DDA District during the period
beginning January 1, 2004 through October 31, 2007; and

THAT the foregoing is true to the best of my knowledge and belief.

Dated this ___ day of _ _ _ _ _ _ _ _, 2007.



                                                   Dennis W. Burns, Assessment
                                                   Administration Supervisor for the
                                                   City of Muskegon
STATE OF MICHIGAN
COUNTY OF MUSK.EGON

Signed and sworn to before me in Muskegon County, Michigan, on _ _ _ _ __
2007, by Dennis W. Bums, Assessment Administration Supervisor for the City of
Muskegon, a municipal corporation.


                                           _ _ _ _ _ _ _ _ _ _, Notary Public
                                           Acting in the County of Muskegon
                                           Muskegon County, Michigan
                                           My Comm. Expires: _ _ _ _ _ _ __


Prepared by:
Parmenter O'Toole
By: Keith L. McEvoy
P.O. Box 786
Muskegon, Michigan 49443-0786
                                CITY OF MUSKEGON

       DEVELOPMENT DISTRICT AREA-PUBLIC/PRIVATE INVESTMENTS



Private Investment (Real Property):

Parcel#               Project               Year   Address           Value

24-205-317-0009-00    Boilerworks LLC       2005   600 W. Clay       $1,300,000
                      Harley Davidson       2007   I 49 Shoreline    $2,300,000
24-205-556-0001-00
24-205-562-0001-00    National City Bank    2005   715 Terrace       $1,300,000
                      WaterMark Condo's     2004   930 Washington    $6,600,000
24-205-467-0001-00

                                                   TOTAL             $11,500,000



Private Investment (Personal Property):

Parcel#               Project               Year   Address           Value

24-900-251-6585-00    Warner Norcross       2005   316 Morris        $236,000
                      Knoll Group           2005   965 W, Western     $739,000
24-900-351-0420-00
                      Coles Quality Foods   2005   1188 Lakeshore   $2,000,000
24-982-206-0166-00

                                                   TOTAL            $2,975,000



Public Investment:

Parcel#               Project               Year   Address            Value

                      New Western Ave       2007   DDA District       $3,270,000

                                                   TOTAL             $3,270,000

GRAND TOTAL:               $17,745,000
                                  CERTIFICATION

Attached is a true copy of an Affidavit executed by Dennis W. Bums, in his capacity as
Assessment Administration Supervisor for the City of Muskegon, a municipal
corporation, of 933 Terrace Street, Muskegon, Michigan 49440, with regard to public and
private investment in real and personal property within the qualified Downtown
Development Authority in the City of Muskegon established pursuant to Ordinance No.
969 within the past five years.

                                                  CITY OF MUSKEGON
                                                  933 Terrace, Muskegon, MI 49440


                                                  By:
                                                        Ann Marie Becker, MMC
                                                        City Clerk
                                                  Date: _ _ _ _ _ _,2007
October 23, 2007


Ms. Ciggzree S. Morris
2528 Peck Street
Muskegon Heights, MI 49444

Dear Ms. Morris,

I am writing a follow-up letter to my letter dated September 7, 2007. As you know, I included the
information from the Michigan Liquor Control Commission (MLCC). However, I have had additional
conversations with our city attorney's office, as they learn more about this relatively new process. I
want to clarify the information that is required by the City to proceed with the Development District
On-Premises Liquor License.

As stated in the prior letter, you will need to request a resolution from the Muskegon City Commission
recommending approval of your application "ABOVE ALL OTHERS". Among other requirements,
the City must provide this resolution to the MLCC prior to or at the time you have submitted your
DDA On-Premises License application for approval. If you would like the City Commission to
consider a resolution that recommends the approval of your application, please submit a request in
writing to the City Clerk.

As you are probably aware, there are certain financial requirements that must be met prior to the
MLCC's issuance of a DDA On-Premises License. First, the license costs $20,000. Second, an
applicant must demonstrate that they have expended $75,000 on the licensed premises within the last
five (5) years or the Applicant must have a commitment for the expenditure of at least that amount on
the building that houses the licensed premised before the issuance of the license. To that end, the
Commission will be closely reviewing the economic resources and financial commitments of any
applicant prior to making a recommendation for MLCC approval of their DDA On-Premises License
application.

If you have not already done so, we recommend that you prepare and file your DDA On-Premises
License application with the MLCC. The Commission is more likely to be inclined to recommend the
approval of an applicant that has already submitted an application to the MLCC for their consideration.
It is actually the MLCC (not the City Commission) that will need verification that you have contacted
the holders of an existing Class C liquor licenses or quota licenses located within the City of
Muskegon that are in escrow and verify whether or not these licenses are for sale.


Please let me know if you have any additional questions.

Sincerely,


Cathy Brubaker-Clarke
Director of Community & Economic Development

Enclosure
             Commission Meeting Date: November 13, 2007




Date:        November 5, 2007
To:          Honorable Mayor & City Commission
From:        Planning & Economic Development Department c,/3 C

RE:          Issuance of a Downtown Development Authority District
             On-Premises Liquor License- lordache Group, Inc.


SUMMARY OF REQUEST: The lordache Group, Inc. has applied for a Downtown
Development Authority District On-Premises Liquor License for the premises at 380
W. Western, which is located within an area established by the City Commission as a
redevelopment project area. The applicant shall be engaged in the operation of a
restaurant and an adjacent bakery cafe at this address.



FINANCIAL IMPACT: No immediate impact, although the granting of the liquor
license to lordache Group will add to the business and entertainment mix in
downtown Muskegon, and will add to the City of Muskegon's tax revenues.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: To approve the attached resolution and authorize the
Mayor and Clerk's signatures.



COMMITTEE RECOMMENDATION: None.
                                       CITY OF MUSKEGON
                                   MUSKEGON COUNTY, MICWGAN
                                      RESOLUTION NO. 2007-97(£)

 A resolution concerning the issuance of a Downtown Development Authority District On•
 Premises Liquor License pursuant to 43&,1521a(1)(b) of the Michigan Compiled Laws.

The City Commission of the City of Muskegon hereby RESOLVES:

                                             Recitals

    1. Iordache Group, Inc. has applied for a Downtown Development Authority District On-
       Premises Liquor License for the premises at 380 W. Western Avenue, which is located
       within an area established by the City Commission as a redevelopment project area
       pursuant to 436.1521a(l)(b) of the Michigan Compiled Laws.

    2. It is required that the City Commission approve a specific applicant, at a specific location
       "ABOVE ALL OTHERS".

                                   City Commission Findings

The City Commission is satisfied that:

    1. That the applicant has sufficiently demonstrated a commitment for a capital investment
       of not less than $75,000 for the build-out and improvements of the building that will
       house the licensed premises, which amounts shall be expended before the issuance of the
       license.

   2. That the licensed business shall be engaged in dining, ente1tainment or recreation, that is
      open to the general public, with a seating capacity of not less than 50 persons.

NOW, THEREFORE, THE CITY COMMISSION RESOLVES:

The City Commission deems it to be in the best interest of the City of Muskegon to approve the
application of Iordache Group, Inc. for a Downtown Development Authority District On-
Premises Liquor License for the premises at 380 W. Western Avenue pursuant to
436.1521 a(l)(b) of the Michigan Compiled Laws, and recommends to the Michigan Liquor
Control Commission the issuance of said requested license "ABOVE ALL OTHERS".

Adopted this 13 th day of November, 2007.

       AYES: Gawron, Spataro, Warmington, Wierenga, Wisneski, and Carter
       NAYES: None
       ABSENT: Shepherd




                                                     "~.;?
                                                     By:    \'\.A_;vvr-:'.... \\.,'-ll_A__ ~, (,c1.Jl~
                                                                Ann Marie Becker, MMC
                                                                Its Clerk
                                     CERTIFICATION
                                        2007-97(f)

This resolution was adopted at a regular meeting of the City Commission, held on November 13,
2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the
State of Michigan, Act 267 of the Public Acts of 1976.

                                          CITY OF MUSKEGON


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                                                Ann Marie Becker, MMC
                                                City Clerk
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