City Commission Minutes 04-14-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             APRIL 14, 2020 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440


                                   MINUTES

The Regular Commission Meeting of the City of Muskegon was held
electronically with the Mayor, Vice Mayor and Commissioners participating via
Zoom – a remote conferencing service, Clerk staff present at 933 Terrace Street,
Muskegon, MI at 5:30 p.m., Tuesday, April 14, 2020.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:     Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson, Dan Rinsema-Sybenga, Willie German, Jr., Teresa Emory, and
Michael Ramsey, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
2020-19      CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the March 24, 2020 Regular
City Commission meeting.
STAFF RECOMMENDATION:           To approve the minutes.
   B. Televising Commission Meetings         City Clerk
SUMMARY OF REQUEST: The agreement with Lakeshore Creative Services
expires in April. Staff would like to extend the agreement for one year. Currently
the agreement is for $350 per meeting. Because the length of meetings are
longer than staff first indicated in the quote, it is requested the fee be increased
to $450 per meeting. This includes operating our television station as well as
social media platforms
STAFF RECOMMENDATION:           To extend the agreement with Lakeshore
Creative Services for one year to film Commission Meetings at a rate of $450 per
meeting.
   C. Fireworks Display Permit for Muskegon Country Club         City Clerk


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SUMMARY OF REQUEST: Melrose Pyrotechnics, Inc. is requesting approval of a
fireworks display permit for July 2, 2020 at the Muskegon Country Club, 2801
Lakeshore Drive. The fire marshall will inspect the fireworks the day of the event.
STAFF RECOMMENDATION:         To approve the fireworks display permit for
Melrose Pyrotechnics, contingent upon inspection of the fireworks and approval
of the insurance.
   F. National Fish & Wildlife Fund Grant       Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to apply for a grant
through the National Fish and Wildlife Fund (NFWF) Coastal Resiliency Program
to assist in developing a sustainable and resilient coastline of Lake Michigan
along Beach Street.

   Staff is seeking to apply for a $250,000 grant through the National Fish and
Wildlife Fund Coastal Resiliency Program to complete a detailed site assessment,
and 50% design plans for a long term repair of the Lake Michigan Coastline
along Beach Street.

   The area has been substantially damaged by the high lake levels and erosion
on Lake Michigan and a long term sustainable solution is needed to ensure that
the recreational uses of the shoreline are preserved, along with the critical road
and water main infrastructure. The NFWF Coastal Resiliency Grant that we are
proposing to apply for would allow for detailed survey and engineering work to
be started that will identify sustainable long term solutions for protecting the
shoreline and infrastructure. The grant proposal would utilize a combination of
engineered hard surface protections and green infrastructure to restore habitat
create long term resiliency. The grant and associated project would lay the
groundwork for completing design and constructing a long term sustainable
solution in future years.

   Staff from Ramboll has volunteered to assist at no cost in the pre-proposal
submittal documents which determine our eligibility for the project. A draft of
the pre-proposal submittal is attached.

     The proposed 1:1 match will be achieved through in-kind services that we
are already providing to operate and maintain Pere Marquette Park and the
Water Filtration Plant. No cash would be required from any parties during this
first stage of the project if selected.

    The grant pre-proposal is due on Wednesday, April 8th and will be submitted
by staff prior to the Commission Meeting. The grant opportunity became known
to staff at a time that did not allow for review and discussion at City Commission
prior to submittal. However, given the lack of financial commitment at this stage


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and the previously discussed need at this site staff determined it was
appropriate to apply by the deadline and follow up with discussion at the
Commission level.

STAFF RECOMMENDATION: Approve the resolution of support and authorize the
Mayor and Clerk to sign and commit to funding the required match and
engineering costs in future fiscal years if the project is selected.
   G. P & N Lakeshore Drive Amendment #2                 Public Works
SUMMARY OF REQUEST: Authorize staff to sign an amendment to the
professional services agreement with Prien and Newhof relative to the Lakeshore
Drive project for $78,650.
The original project schedule anticipated that the work would be completed on
September 13, 2019. Work was not completed for the season until December 6,
2019 with approximately 1 additional week of work in the Spring of 2020 to fully
complete the project items. This amendment allows for Prien & Newhof to be
compensated for the additional engineering and inspection time required to
complete the project.
Discussions with the Contractor and MDOT for this project are still ongoing and if
there are any liquidated damages assessed against the Contractor for delays in
the project those recouped funds will be used to cover this expense in the
interim the amount was included in the reforecast of the current budget under
the water fund.
AMOUNT REQUESTED:         $78,650      FUND OR ACCOUNT:                 591-91711-5346
AMOUNT BUDGETED:          $78,650      FUND OR ACCOUNT:                 591-91711-5346
STAFF RECOMMENDATION:        Authorize staff to sign Amendment #2 with Prein
and Newhof for the Lakeshore Drive project.
   H. E-Bikes      Public Safety
SUMMARY OF REQUEST: MUPD requests funds from its capital outlay budget for
the purchase of (2) two electric assist bikes and (1) one bike carrier. Cost for this
purchase is $4,564.00 per bike and $549.00 for the bike carrier (includes
shipping). Total funds needed; $9,677.00.
AMOUNT REQUESTED:         $9,677.00    FUND OR ACCOUNT:                 101-70301-5720
STAFF RECOMMENDATION:          Approve the purchase of (2) two E-Bikes and (1)
Bike Carrier from Great Lakes Segway.
   I. Site Condo No. 2 Agreement       Development Services
SUMMARY OF REQUEST: Staff is requesting authorization to sign an easement
and maintenance agreement that outlines responsibilities related to operating
and maintaining the common area and providing public access to the same.


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As property owners within the downtown area designated as Downtown
Development Center No. 2, the city has partial ownership of the common area
which includes the splash pad and plaza in front of the downtown post office.
The city accepted responsibility to maintain the splash pad in the spring of 2018
when the Community Foundation for Muskegon County divested themselves of
it. This agreement outlines rights and responsibilities associated with the common
area.
STAFF RECOMMENDATION:        Approve the easement and maintenance
agreement with Downtown Muskegon Development Center No. 2 Association
and authorize the Mayor and Clerk to sign.
   J. Tax Incentive Policy and Guidelines Economic Development
REMOVED PER STAFF REQUEST
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, except items D and E.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
           Sybenga, and Emory
            Nays: None
MOTION PASSES
2020-20     REMOVED FROM CONSENT AGENDA:
   D. Amity Avenue Bridge       Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to apply for State of
Michigan FY 2023 local bridge funds for a project to remove the Amity Avenue
Bridge and rebuild an at-grade road through the area. A resolution of support is
required to include with the application.
Staff applied for this same project last year from State of Michigan FY 2022
funding and we were the first project in the region not selected. Staff feels that
resubmitting the project for consideration is still our best option within this
program.
Costs are estimated at approximately $431,000 for the project, with the city
requesting to provide matching funds of $90,000 towards the construction costs
(21%) plus engineering costs (estimated at $100,000). The costs for this project
would be borne in future fiscal years and of the project is selected the necessary
matching funds will be allocated in the future budget cycles.
AMOUNT REQUESTED:        $190,000     FUND OR ACCOUNT: 203-TBD-5346/5355
AMOUNT BUDGETED:         $190,000     FUND OR ACCOUNT: 2013-TBD-5346/5355
STAFF RECOMMENDATION:         Approve the resolution of support and authorize
the Mayor and Clerk to sign and commit to funding the required match and


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engineering costs in future fiscal years if the project is selected.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German,
to approve the resolution of support and authorize the Mayor and Clerk to sign
and commit to funding the required match and engineering costs in future fiscal
years if the project is selected.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
           and Johnson
             Nays: None
MOTION PASSES
   E. Concession Agreement – “The Beach Cove”               Public Works
SUMMARY OF REQUEST: Staff is asking permission to extend the contractual
agreement with “The Beach Cove” concession at Pere Marquette Park.
Staff is asking permission to enter into a contractual Concession Agreement for
2020, 2021, 2022, and 2023 with Morse Michel of Moji, Inc. for operating a
concession (“The Beach Cove”) at Pere Marquette Park. The agreement also
calls for renewal of said contract by staff beyond 2023 for additional years if
both parties agree. Concession sells various retail food items, beach novelties
and beach rental items. Concession revenue is 10% of gross receipts. Over the
last three years the concession stand has generated $14,427.61 in revenue for
the City which has been and will continue to be reinvested in the park.
STAFF RECOMMENDATION:       Authorize staff to enter into a contractual
Concession Agreement with Morse Michael to operate a Concession (“The
Beach Cove”) at the Pere Marquette Park bath house/restroom building.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
authorize staff to enter into a contractual Concession Agreement with Morse
Michael to operate Concession (“The Beach Cove”) at the Pere Marquette Bath
House/Restroom Building. The contract will be amended to remove the
automatic renewal in 2023 and to require that the business agree to sell parking
passes during their business hours.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           and Gawron
             Nays: None
MOTION PASSES
2020-20          PUBLIC HEARINGS:
   A. Public Hearing on Foundry Square Brownfield Plan, 372 Morris Avenue
      Economic Development
SUMMARY OF REQUEST: To hold a public hearing on the request for a Brownfield


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Plan Amendment for 372 Morris Avenue submitted by Foundry Square LLC and
to consider the resolution.
Foundry Square LLC, Great Lakes Development Group and Rockford
Construction are proposing a $34 million mixed-use urban development on
seven acres at 372 Morris Avenue. Plans include an 82-room hotel, four-story 240-
space parking deck, a 40,000-square foot entertainment center in the first phase
and mixed commercial-residential development in a second phase. The
developer has proposed a Brownfield Plan Amendment that would capture
$13.3 million of local, school and state education property taxes. The plan shows
$1.75 million of environmental costs supported by the Michigan Department of
Environment Great Lakes & Energy and $10.56 million for redevelopment costs
through the Michigan Strategic Fund. The largest eligible cost is $8.4 million for
the parking deck. Public right of way infrastructure of roads, water and sewer
with the extension of Second Street into the development will be completed by
the developer to city specifications. The plan anticipates paying off eligible
costs in 2045 with the remaining five years of the 30-year plan’s tax increments
placed in the city’s Local Brownfield Revolving Fund. There is an annual $10,000
administrative fee to the Brownfield Redevelopment Authority and the plan
does not request reimbursement on interest for any borrowing to complete
eligible costs. The Muskegon Brownfield Development Authority approve the
plan March 10. The Michigan Strategic Fund will need to approve the plan.
STAFF RECOMMENDATION:          To close the public hearing and approve the
Brownfield Plan Amendment at 372 Morris for Foundry Square LLC with the
resolution, authorizing the Mayor and City Clerk to sign.
PUBLIC HEARING COMMENCED:
Dave Alexander, Economic Development, gave an overview of the request for
a Brownfield Amendment and proposed development project.
Jeff Edwards, Vice President of Development for Rockford Construction – 2209
Paris Avenue NE – Grand Rapids, MI 49505 – Mr. Edwards provided an overview
of the project. The proposed concept is for redevelopment of a 7-acre site in
downtown Muskegon. The development will consist of a mircro-tel, self-park
parking garage, family entertainment center, as well as some as-yet
undetermined development in the northern part of the property. The project is
estimated to create approximately 140 jobs.
Public Comments:
Michael A. Haueisen, 903 Turner Avenue – likes the sound of the project.
Ron Moseley – commented on Facebook - asked if there would be a casino –
there will not.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to close the public hearing and approve the Brownfield Plan Amendment at 372

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Morris for Foundry Square LLC with the resolution, authorizing the Mayor and City
Clerk to sign.
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
2020-21           NEW BUSINESS:
   A. Nelson Neighborhood Rezonings         Planning
SUMMARY OF REQUEST: Staff initiated request to rezone multiple properties in
the Nelson neighborhood to Form Based Code, Urban Residential.
The Planning Commission unanimously voted to recommend approval to the
City Commission.
STAFF RECOMMENDATION:          To approve the rezonings in Nelson
Neighborhood as presented.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the rezonings in Nelson Neighborhood as presented.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, and Hood
            Nays: German and Ramsey
MOTION PASSES
SECOND READING REQUIRED
   B. Amendment to the Zoning Ordinance               Planning
SUMMARY OF REQUEST: Staff initiated request to amend the Form Based Code,
Urban Residential districts to restrict small-multiplexes to four units.
STAFF RECOMMENDATION:          To approve the zoning amendment.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the zoning amendment.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
           Sybenga, and Emory
            Nays: None
MOTION PASSES
   C. Resolution Regarding Muskegon Public Schools 2020 Bond Proposals
SUMMARY OF REQUEST: A resolution regarding the Muskegon Public Schools
Bond Proposals.
STAFF RECOMMENDATION:          Adopt the resolution.

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Motion by Commissioner Johnson, second by Vice Mayor Hood, to adopt the
resolution.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, Rinsema-Sybenga, Emory, and
           Johnson
           Nays: German
MOTION PASSES
PUBLIC COMMENT: Public Comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:05 p.m.


                                  Respectfully Submitted,




                                  Ann Marie Meisch, MMC – City Clerk




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