City Commission Minutes 09-22-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
       SEPTEMBER 22, 2020 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
              REMOTE MEETING
  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, September 22, 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., Michael Ramsey, and
Teresa Emory, City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2020-66     CONSENT AGENDA:
   A. Approval of Minutes     City Clerk
SUMMARY OF REQEUST: To approve the minutes of the August 31, 2020 Special
Worksession meeting and the September 8, 2020 Regular City Commission
meeting.
STAFF RECOMMENDATION:         To approve the minutes.
   B. MERS Representatives    Finance
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two (2) delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an officer of the municipality, elected
by the member officer/employees of the municipality.”
The City’s employee units previously agreed to a rotating system (based on date
of joining MERS) to select one official employee representative. This year the
official employee representative attending the MERS conference will be Josh
DeHoag from the Police Unit.

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It is recommended that Kenneth Grant (Assistance Finance Director) be
designated as the City’s employer delegate.
STAFF RECOMMENDATION:          Certification of Kenneth Grant and Josh DeHoag
to be the City’s officer and employee delegates at the virtual MERS annual
business meeting on September 24, 2020.
   C. Alum Rapid Mixer Public Works – Filtration
SUMMARY OF REQUEST: Filtration plant is requesting approval to procure
custom designed new rapid mixer from Fusion Fluid Equipment to replace the
current mixer.
Filtration Plant had two rapid mixers from Texas based firm Mastrrr to feed alum
and were prone to frequent failure of bearings. Two years ago, we contacted
Fusion Fluid, a local firm, to provide a custom designed solution with
replaceable parts. The new mixer was procured and installed in January 2019
and has been running well. Plant is requesting to procure one more custom
designed unit to replace the remaining Mastrrr mixer at a cost of $23,793. The
funding will come from budgeted item for Water Filtration Plant – WMRWA
Eligible in the 20/21 Budget for $500,000.
AMOUNT REQEUSTED:        $23,793      AMOUNT BUDGETED:          $500,000
FUND OR ACCOUNT:         591
STAFF RECOMMENDATION: Authorize staff to procure mixer from Fusion Fluid
Equipment at cost of $23,793.
   F. Amendment to the Zoning Ordinance              Planning
SUMMARY OF REQUEST: Staff-initiated request to amend the Form Based Code,
Urban Residential section of the zoning ordinance to restrict three and four unit
homes to parcels that have an alley or other recorded rear access easement
for vehicles.
STAFF RECOMMENDATION:           To approve the rezoning request.
   J. Lakeside Corridor Improvement Authority        Economic Development
SUMMARY OF REQUEST: The Lakeside BID Board and the Lakeside District
Association have requested that the City allow the establishment of a Corridor
Improvement Authority, pursuant to Public Act 57 of 2018.
The Lakeside Business Improvement District Board has recommended a special
assessment amount to fund BID improvements in the Lakeside Corridor, but
would like to establish a TIF District to eventually replace the extra assessment on
property owners in that corridor. This compromise was originally discussed in
2019, prior to the approval and creation of the Lakeside BID. The CIA would act
similarly to the Downtown Development Authority, collecting TIF funds that
would be used to make improvements, maintain streetscaping and

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landscaping, and to promote the business corridor. In your packet is a resolution
of intent that begins the public hearing and notice process to establish the CIA.
Staff has also provided an information packet on Corridor Improvement
Authorities, their operations, and what they can statutorily use their funding to
do. The Resolution of Intent provided in the packet would begin the process and
staff would complete all required publications and postings prior to the hearing
at the second regular meeting in October.
STAFF RECOMMENDATION:       To approve the Resolution of Intent to Establish a
Lakeside Corridor Improvement Authority and schedule the required public
hearing as presented.
   N. Social District Permit Recommendation          Economic Development
STAFF RECOMMENDATION:          The City Commission must recommend approval
of the Michigan Liquor Control Commission permits of participating licensed
establishments in the Downtown Muskegon Social District.
With the establishment of the Muskegon Social District, participating licensed
establishments must receive a Social District permit from the Michigan Liquor
Control Commission. The MLCC must first receive a recommendation for
approval from the City Commission before granting the permits. You handled
the initial eight such requests at your August 25 and September 8 meetings. The
attached resolution is for Smash Wine Bar which is also seeking a Social District
permit from the state and seeking City Commission recommended approval.
The social District plan identifies 22 potential participating licensees within the
district. Other licensed establishments may file a Social District permit application
in the future.
STAFF RECOMMENDATION:         To approve the resolution recommending
Michigan Liquor Control Commission approval of Social District permits in the
Downtown Muskegon Social District and to direct the City Clerk to certify the
City Commission action with the MLCC.
   O. Election Grant      City Clerk
SUMMARY OF REQUEST: The City of Muskegon has received an Election Grant
from the Center for Tech and Civic Life that requires no match. Staff is
requesting to purchase items as spelled out in the grant for Election use.
We are investigating the cost of additional needed services/items related to
Elections and a detailed report will be given to Commission at a later date.
The grant specifically indicates the funds may be used for Elections only and the
existing budget for Elections may not be reduced. Funds must be spent by
December 31st of this year. The grant indicates we will be receiving $433,580. We
are currently confirming this amount.
The grant is to purchase a high-speed tabulator, standard tabulator, Election


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booths, computers for precincts, meals for workers, signage, and marketing of
the Election including billboards, radio, and television ads. We are also
investigating the possibility of drive-up voting as well as mobile
voting/registration and other activities. The grant also stipulates that the funds
can be used as hazard pay for Election Workers. We would request a one-time
increase of $5 per hour for Election staff and Election workers.
Motion by Commissioner Rinsema-Sybenga second by Commissioner Ramsey to
approve the consent agenda as presented, except item D, E, G, H, I, K, L and M.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
           and Johnson
            Nays: None
MOTION PASSES
2020-67     REMOVED FROM CONSENT AGENDA:
   D. Muskegon Fire Department Boat Motor Replacement           Public Safety
SUMMARY OF REQUEST: Unit 73 (Rescue/Recovery Boat) has experienced
outboard motors problems for some time. The motors were NOT reliable and
spent time in the shop during the summer months. Baker Marine advised that the
starboard motor had a piston malfunction and was not worth fixing due to the
fact that engine is 20 years old. A new dual motor system was recommended to
replace our current twin Mercury Optima 150hp outboards. We will also sell
and/or trade in the existing motors that may reduce the overall cost of the
replacement project. I recommend at this time that the motors be purchased,
installed and serviced by Sports Fisherman’s of Muskegon.
AMOUNT REQUESTED:        $28,186
FUND OR ACCOUNT:         101-50336-5770
STAFF RECOMMENDATION:           Approve the purchase request for two boat
motors.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga
to approve the purchase request for two boat motors.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           and Gawron
            Nays: None
MOTION PASSES
   E. Muskegon Fire Department Engine Purchase            Public Safety
SUMMARY OF REQUEST: The Fire Department is currently in need of a second
reserve engine. We are requesting the approval for the purchase of a pre-
owned 2001 Spartan/KME fire apparatus to replace Reserve Engine 22. An

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inspection was completed and staff recommended the purchase of this
apparatus to enhance our capabilities at Fire to provide a dependable Reserve
Engine when a frontline engine is in need of repair. Inspecting Fire Staff advised
this asking price was fair. Please review the attached picture and description
from Deputy Director Paulson.
AMOUNT REQUESTED:        $35,000
FUND OR ACCOUNT:         101-50336-5720
STAFF RECOMMENDATION:        Purchase approval for a used Fire Engine from
Saginaw Township Fire Department.
Motion by Commissioner Johnson second by Commissioner German to approve
the purchase of a used Fire Engine from Saginaw Township Fire Department.
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
   G. Amendment to the Zoning Ordinance – Marihuana Overlay District
      Planning – SECOND READING
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2331 of the
zoning ordinance to include 863 and 885 E Apple Avenue into the marihuana
facilities overly district. Second reading to include 863 and 885 E Apple into the
marihuana facilities overly district.
STAFF RECOMMENDATION:            To amend Section 2331 of the zoning ordinance
to expand the marihuana facilities to include 863 E. Apple and 885. E Apple
Avenue for provisioning, retail, and microbusiness use.
Motion by Commissioner German second by Commissioner Johnson to amend
Section 2331 of the zoning ordinance to expand the marihuana facilities overlay
district to include 863 E. Apple Avenue for provisioning, retail and microbusiness
use.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Gawron, and Hood
            Nays: Emory, Johnson, and Ramsey
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga second by Commissioner Emory to
amend Section 2331 of the zoning ordinance to expand the marihuana facilities
overlay district to include 885 E. Apple Avenue for provisioning, retail and
microbusiness use.
ROLL VOTE: Ayes: Rinsema-Sybenga and Gawron
            Nays: Emory, Johnson, Hood, Ramsey, and German

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MOTION FAILS
   H. 1601 Beach Lease Amendment             Development Services
SUMMARY OF REQUEST: Staff is seeking direction on an amendment to the
current lease with 1601 Beach LLC to further extend the boundary of the land
being leased for The Deck at Pere Marquette Park.
The owners of 1601 Beach LLC are planning an additional expansion to their
restaurant, The Deck. The expansion is south of the recent expansion toward the
walkway to the pier and will include relocating the stage to reduce noise
impacts on the neighborhood, two additional bars, a new snack bar, a gear
shop, and revised concrete entrance at the south end of the existing building. In
order to proceed with the expansion, the lease agreement needs to be
modified to account for the additional land associated with the expansion.
STAFF RECOMMENDATION:        To approve/deny the lease amendment with
1601 Beach LLC and authorize the mayor and clerk to sign.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga
to approve the lease amendment with 1601 Beach LLC and authorize the Mayor
and Clerk to sign.
ROLL VOTE: Ayes: Emory, Johnson, Gawron, Hood, Ramsey, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
   I. Lakeside BID Special Assessment Recommendation            Economic
      Development
SUMMARY OF REQUEST: The Lakeside BID Board has voted to petition the City
Commission to establish a Special Assessment District inclusive of all commercial
parcels in the BID in order to raise funds for public maintenance and
improvements.
The Lakeside Business Improvement District Board has recommended a special
assessment amount to fund BID improvements in the Lakeside Corridor for a
period of 3 years, with potential to renew the assessment at the end of the term
depending on the amount of TIF capture by their desired Corridor Improvement
Authority. The attachments to this cover sheet reflect the costs per square foot
of every address in the BID, as well as a map outlining the BID district approved
by the Commission last year. The total anticipated capture of this assessment is
$24,011.03, which will be used by the BID Board to provide for winter
maintenance of sidewalks, plowing, landscaping, maintenance, and marketing
materials for the district. The attached Resolution of Intent to create the special
assessment district will start the process, and staff will complete all required
publications and postings prior to the proposed hearing date of October 27th

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during the regular commission meeting.
STAFF RECOMMENDATION:            To approve the Resolution of Intent to Establish a
Special Assessment District in the Lakeside BID and schedule the required public
hearing for October 27th during the Regular Commission Meeting.
Motion by Vice Mayor Hood second by Commissioner Rinsema-Sybenga to
approve the Resolution of Intent to Establish a Special Assessment District in the
Lakeside BID and schedule the required public hearing for October 27th during
the Regular Commission Meeting.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
           Sybenga, and Emory
             Nays: None
MOTION PASSES
   K. Jackson Hill Infill Housing Development        Economic Development
SUMMARY OF REQUEST: Now that the necessary lots have been added to the
Brownfield Redevelopment Plan, local developer/contractors Rudy and Greg
Briggs are interested in utilizing a Brownfield TIF to construct single family homes
for the city in order to increase value and stabilize the primarily residential
Jackson Hill neighborhood. They have submitted firm bids and propose acting
as the builder and developer on behalf of the City, which will remain the owner
of the lots and partner with Mr. Briggs to market the homes.
Since mid-2019, Economic Development Department staff have been working
with Rudy and Greg Briggs on potentially utilizing our Brownfield TIF Program to
develop and market single family homes in the Jackson Hill Neighborhood. Most
importantly, the focus of this program has been to identify, empower, and retain
developers of color to benefit from some of the same incentive programs we
have been utilizing to great effect. This evening I would request that the
Commission authorize staff to work with the Community Foundation for
Muskegon County make a PROGRAM RELATED INVESTMENT of $355,000 to
undertake construction of the first two homes in this multi-year development
project. The City would also loan $75,000 from its Economic Development
Revolving Loan Fund, the CFFMC would be repaid upon of the sale of the
homes. The City would be repaid with tax increment financing. Attached are
the proposed development agreement as drafted by the City Attorney, the
map featuring the locations of the first two homes (highlighted in RED), the
design criteria of the proposed homes, and the firm bids by the developers.
AMOUNT REQUESTED:         $75,000    AMOUNT BUDGETED:N/A, CFFMC FUNDS
FUND OR ACCOUNT:          ED Revolving Fund
STAFF RECOMMENDATION:      To approve the Development Agreements for
new home construction between the City of Muskegon and Rudy Briggs, and to

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authorize the Community Foundation for Muskegon County to release funds
from the City’s Donor Advised Fund as presented.
Motion by Commissioner German second by Commissioner Rinsema-Sybenga,
to approve the Development Agreements for new home construction between
the City of Muskegon & LRS Enterprises and authorize Economic Development
Funds for $75,000.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
           Johnson
             Nays: None
MOTION PASSES
   L. 2189 Larue Lot Sale       City Manager
SUMMARY OF REQUEST: City staff is seeking authorization to include 2183 Larue
in the infill housing program and authorize the sale of the vacant city lot for the
construction of a custom single-family home.
The lot has been vacant for many years. Our records indicate that the city
purchased the lot for $0 following tax foreclosure in 2010. The neighbor at 2183
has recently demonstrated interest in purchasing the lot to construct a garage.
Staff believes the better use of the lot would be the construction of a new single-
family home. The interested neighbor seems satisfied with the sale as long as it is
for an owner-occupied new home. The new owner was originally looking to
build as part of Midtown Square Phase 2, but could not find a vacant lot that
met his needs/ expectations. It is usual/customary for us to provide access to our
list of city-owned sites for home builders. Mr. Dusendang used that list to find the
lot at 2189 Larue; his client approved of the location, and they are moving fast
to construct the home. This house will be sold at actual cost, and not subsidy will
be necessary; its inclusion in the scattered site brownfield will help offset the
costs of other housing construction.
STAFF RECOMMENDATION:            Add 2189 Larue to the West Urban Properties Infill
Housing Development Agreement, and authorize the lot sale under the same
terms as the other building sites.
Motion by Commissioner Emory second by Commissioner Rinsema-Sybenga to
add 2189 Larue to the West Urban Properties Infill Housing Development
Agreement, and authorize the lot sale under the same terms as the other
building sites.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Johnson, and
           Gawron
             Nays: Emory
MOTION PASSES


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   M. Lakeview Lofts Phase II Bridge Loan    Economic Development
SUMMARY OF REQUEST: On July 28, 2020, the City Commission authorized the
issuance of a short-term bridge loan to support Lakeview Loft’s Phase II. Staff is
seeking permission to convert the bridge loan into a traditional loan with an 84-
month amortization schedule.
As staff worked through the due diligence associated with the bridge loan for
Phase 2, a number of discussions took place with the original Phase 1 secured
debtors. The Community Foundation is one of those debtors that would need to
agree to allow Phase 2 to proceed with the City’s bridge loan being repaid
ahead of their collateralized loan for Phase 1. The Community Foundation’s
leadership has an interest in reducing their investment in Phase 1 to open up
new investment opportunities for their funds related to social equity. To solve this
issue, staff is asking that instead of repaying the bridge loan upon closing of the
senior debt on Phase 2, the $450,000 would go toward the CFFMC Loans
($300,000 to the Westgate Fund and $150,000 to the City’s cemetery perpetual
care fund). The City would then hold a new $450,000 position on Phase 1. The
developers have agreed to $12,000 in interest accrual through March 2022;
beginning April 1, 2022, the loan will be repaid on an 84-month amortization at
5% interest. Monthly payments would be $6,529.87; total interest income would
be $98,509.
AMOUNT REQUESTED:         $450,000     AMOUNT BUDGETED:          CAPITAL FUND
FUND OR ACCOUNT:          ED REVOLVING FUND
STAFF RECOMMENDATION:            Motion to rescind to Economic Development
Loan previously granted to 351 II LLC, and replace it with a loan in the $450,000
to be repaid in equal monthly payments starting April 1, 2022, and ending
March 1, 2029; interest rate to be 5%; monthly payment to be $6,529.87.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga
to rescind the Economic Development Loan previously granted to 351 II LLC, and
replace it with a loan in the $450,000 to be repaid in equal monthly payments
starting April 1, 2022, and ending March 1, 2029; interest rate to be 5% monthly
payment to be $6,529.87. Security for the loan is from Phase I only.
      Motion by Commissioner Rinsema-Sybenga second by Vice Mayor Hood
      to call the question.
      ROLL VOTE: Ayes: German, Rinsema-Sybenga, Gawron, Hood, and
                 Ramsey
                   Nays: Emory and Johnson
      MOTION PASSES
ROLL VOTE: Ayes: Ramsey, Rinsema-Sybenga, Gawron, and Hood
             Nays: German, Emory, and Johnson

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MOTION PASSES
2020-68      UNFINISHED BUSINESS:
   A. Sale of Vacant Lot – 1867 Hoyt          Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the city-owned
vacant lot at 1867 Hoyt Street to Kirsten A. Bremer Trust of 1875 Hoyt Street.
The City Property Sale Policy requires that buildable lots should only be sold for
new home construction. The adjacent property owner would like to use it to only
build a garage. Staff recommends against the sale as it is an attractive
redevelopment lot adjacent to Moon School and the McLaughlin Grow garden.
Also, there is enough room on the applicant’s current properly to construct a
garage.
The City obtained this property from the State of Michigan through the tax
reversion process in 2003. The adjacent property owner would like to buy this
property to combine with their adjacent property to construct a garage on it
within 1 year of closing. The sale price is $3,450.00 plus costs associated with the
closing and registering the deed.
STAFF RECOMMENDATION:     Authorize the City Mayor and Clerk to sign the
Purchase Agreement and deed and allow staff to complete the property sale.
Motion by Commissioner Johnson second by Vice Mayor Hood to authorize the
City Mayor and Clerk to sign the Purchase Agreement and deed to allow Staff to
complete the property sale.
ROLL VOTE: Ayes: Emory, Johnson, and German
             Nays: Rinsema-Sybenga, Gawron, Hood, and Ramsey
MOTION FAILS
2020-69      NEW BUSINESS:
   A. Jackson Hill, McLaughlin & Angell Rezonings          Planning
SUMMARY OF REQUEST: Staff-initiated requested to rezone all single-family (R-1,
R-2, R-3) and duplex (RT) parcels in the McLaughlin, Angell and Jackson Hill
neighborhoods to Form Based Code, Urban Residential (FBC-UR).
The Planning Commission voted 8-1 to recommend approval to the City
Commission.
STAFF RECOMMENDATION:            To approve the request to rezone all single-family
(R-1, R-2, R-3) and duplex (RT) parcels in the McLaughlin, Angell and Jackson Hill
neighborhoods to Form Based Code, urban Residential (FBC-UR).
Motion by Commissioner Rinsema-Sybenga second by Commissioner Ramsey to
approve the request to rezone all single-family (R-1, R-2, R-3) and duplex (RT)
parcels in the McLaughlin, Angell and Jackson Hill neighborhoods to Form

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Based Code, Urban Residential (FBC-UR)
      Motion by Commissioner German second by Commissioner Ramsey to
      table this item and mail notices to all residents/property owners in the
      affected area.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
           Sybenga, and Emory
            Nays: None
MOTION PASSES
ANY OTHER BUSINESS:
Mayor Gawron suggested a waiver of the $5 fee for lead service for customers
with irrigation metering. The Public Works Director, Leo Evans, is under the
impression that the City Treasurer was able to add the irrigation metering line
item to the customers regular bill. This is to be confirmed.
Commissioner Ramsey shared some news as the liaison to the Downtown Arts
Council. The “Prized Steelhead” art sculpture by Sherri Balaskovitz is being
considered for purchase, several organizations as well as the Muskegon
Chamber has raised some funds to purchase and install this piece and will be
asking for a contribution from the City to make this possible.
Commissioner Ramsey spoke about the need for policy and procedure review
and revision.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT:      The City Commission meeting adjourned at 11:02 p.m.


                                     Respectfully Submitted,




                                     Ann Marie Meisch, MMC – City Clerk




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