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City of Muskegon
City Commission Meeting
Minutes
October 24, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rachel Gorman
Commissioner Rebecca St.Clair
Commissioner Eric Hood
Vice Mayor Willie German, Jr.
Commissioner Teresa Emory
Absent: Commissioner Michael Ramsey
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
City Attorney John Schrier
Deputy City Clerk Kimberly Young
1. Call To Order
Mayor Johnson called the City Commission meeting to order at 5:30 p.m.
2. Prayer
Pastor Dwayne Riley, Crestwood United Methodist Church, opened the meeting
with prayer.
3. Pledge of Allegiance
The Pledge of Allegiance to the Flag was recited by the Commission and the
public.
4. Roll Call
As recorded above
5. Honors, Awards, and Presentations
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5.a Resolution Recognizing October as Domestic Violence Awareness
and Prevention Month
Action No. 2023-111
Motion by: Commissioner St.Clair
Second by: Vice Mayor German
To recognize October as Domestic Violence Awareness Month.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
6. Public Comment on Agenda Items
Public comments were received.
7. Consent Agenda
Action No. 2023-112
Motion by: Commissioner Gorman
Second by: Commissioner Hood
To accept the consent agenda as presented, minus items B, C, D, H, I, and J.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair,
Commissioner Hood, Vice Mayor German, and Commissioner Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.a Approval of Minutes - City Clerk
To approve the minutes of the October 9, 2023 Worksession and October
10, 2023 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
7.e Splash Pad Reconstruction Design - Parks & Recreation
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A request for staff to enter into a contract with Fleis & Vandenbrink for
design of the Spark grant-funded splash pad reconstruction.
STAFF RECOMMENDATION: To authorize staff to enter into a contract
with Fleis & Vandenbrink for design of the Spark grant-funded splash pad
reconstruction.
7.f GameTime Playground Grant - Parks & Recreation
A request to allow staff to enter into a contract with Sinclair Recreation for
the purchase of 4 new playgrounds for a total amount of $446,531.89.
This includes the installation of St. Joseph’s only.
STAFF RECOMMENDATION: To approve for staff to enter into a contract
with Sinclair Recreation for the purchase of 4 new playgrounds for a total
amount of $446,531.89
7.g Equipment Purchases - DPW
Staff requests authorization to purchase five (5) fleet vehicles from Berger
Chevrolet to replace and supplement DPW and fleet administration
vehicles for a total of $193,308.
STAFF RECOMMENDATION: To approve for staff to purchase five (5)
fleet vehicles from Berger Chevrolet to replace and supplement DPW and
fleet administration vehicles for a total of $193,308.
7.k General Capital Spring Street Senior Housing Municipal Services
Agreement - Development Services
City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
Municipal Services agreement for commission consideration for a new
construction 53-unit Senior affordable housing complex at and around 162
E. Apple Avenue.
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
rental units priced under $1,430 a month, staff has made overtures and
established relationships with several new and existing LIHTC developers.
General Capital has already successfully completed two new construction
facilities in our community, and is seeking to complete a third with the
Spring Street Berkshire Apartments. This site will support 53 affordable
senior apartments.
General Capital is seeking a Municipal Services Charge of 3% of net
shelter rents. This should equal roughly $15,000 per year for the city to
keep to defray costs of public service delivery to the site. General Capital
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is also requesting a 7% Payment in lieu of Taxes agreement, which is
detailed in another agenda item in the packet.
STAFF RECOMMENDATION: To approve the Municipal Services
Agreement with GENCAP SPRING STREET 53 LIMITED DIVIDEND
HOUSING ASSOCIATION, LLC and authorize the mayor and clerk to
sign.
7.l General Capital Nelson School Family/Workforce Contract for
Housing Exemption (PILOT) - Development Services
City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
Municipal Services agreement for commission consideration for a new
construction 52-unit Workforce affordable housing complex at and around
the Nelson School property, 550 West Grand Avenue.
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
rental units priced under $1,430 a month, staff has made overtures and
established relationships with several new and existing LIHTC developers.
General Capital has already successfully completed two new construction
facilities in our community, and is seeking to complete a third with the
Nelson School Apartments. This site will support 52 affordable workforce
apartments.
General Capital is seeking a Payment in lieu of Taxes (PILOT) of 5% of
net shelter rents. This should equal roughly $24,000 per year for the city to
divide between taxing jurisdictions. General Capital is also requesting a
3% Municipal Services Charge, which is detailed in another agenda item
in the packet.
Note that this item does not yet include the legal description exhibit that
we would usually see with the document, and that is due to a lot split
survey that is forthcoming and will be added to the document when
complete. Specifically, this lot split will leave the sports field and
playground on site under the ownership of MPS and open to the public.
STAFF RECOMMENDATION: To approve the Contract for Housing
Exemption with GENCAP NELSON LIMITED DIVIDEND HOUSING
ASSOCIATION, LLC and authorize the mayor and clerk to sign.
7.m General Capital Nelson School Family/Workforce Housing Municipal
Services Agreement - Development Services
City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
Municipal Services agreement for commission consideration for a new
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construction 52-unit Workforce affordable housing complex at and around
the Nelson School property, 550 West Grand Avenue.
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
rental units priced under $1,430 a month, staff has made overtures and
established relationships with several new and existing LIHTC developers.
General Capital has already successfully completed two new construction
facilities in our community, and is seeking to complete a third with the
Nelson School Apartments. This site will support 52 affordable workforce
apartments.
General Capital is seeking a Municipal Services Charge of 3% of net
shelter rents. This should equal roughly $15,000 per year for the city to
keep to defray costs of public service delivery to the site. General Capital
is also requesting a 5% Payment in lieu of Taxes agreement, which is
detailed in another agenda item in the packet.
STAFF RECOMMENDATION: To approve the Municipal Services
Agreement with GENCAP NELSON LIMITED DIVIDEND HOUSING
ASSOCIATION, LLC and authorize the mayor and clerk to sign.
7.n Pivotal Development Harbor View Family/Workforce Housing
Contract for Housing Exemption (PILOT) - Development Services
City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
Municipal Services agreement for commission consideration for a new
construction 46-unit workforce/family affordable housing complex at and
around 122 East Muskegon Avenue.
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
rental units priced under $1,430 a month, staff has made overtures and
established relationships with several new and existing LIHTC developers.
Pivotal Development is one of the largest Low Income Housing
Development Tax Credit developers in the Midwest, and are seeking to
complete their first Muskegon area project with the Harbor View Lofts.
This site will support 46 affordable workforce apartments.
Pivotal is seeking a PILOT payment of 5% of net shelter rents. This should
equal roughly $18,000 per year for the city to keep to defray costs of
public service delivery to the site. Pivotal is also requesting a 3%
Municipal Services Agreement, which is detailed in another agenda item in
the packet.
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STAFF RECOMMENDATION: To approve the Contract for Housing
Exemption with HARBOR VIEW LIMITED DIVIDEND HOUSING
ASSOCIATION LLC and authorize the mayor and clerk to sign.
7.o Pivotal Development Harbor View Family/Workforce Housing
Municipal Services Agreement - Development Services
City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
Municipal Services agreement for commission consideration for a new
construction 46-unit workforce/family affordable housing complex at and
around 122 East Muskegon Avenue.
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
rental units priced under $1,430 a month, staff has made overtures and
established relationships with several new and existing LIHTC developers.
Pivotal Development is one of the largest Low Income Housing
Development Tax Credit developers in the Midwest, and are seeking to
complete their first Muskegon area project with the Harbor View Lofts.
This site will support 46 affordable workforce apartments.
Pivotal is seeking a Municipal Services Agreement equal to 3% of net
shelter rents. This should equal roughly $10,800 per year for the city to
keep to defray costs of public service delivery to the site. Pivotal is also
requesting a 5% Payment in lieu of Taxes Agreement, which is detailed in
another agenda item in the packet.
STAFF RECOMMENDATION: To approve the Municipal Services
Agreement with HARBOR VIEW LIMITED DIVIDEND HOUSING
ASSOCIATION LLC and authorize the mayor and clerk to sign.
7.p Froebel School Sales Agreement to Samaritas - Development
Services
City staff is proposing a sale of Froebel School, located at 417 Jackson
Street, to Samaritas for $1,000.00 contingent on the award of Low Income
Housing Tax Credits for their proposed adaptive reuse development at the
site.
City staff have worked with Samaritas and our legal counsel to draft the
attached purchase agreement. Note the amount is very nominal, but given
the amount of damage to the building and remediation necessary we feel
it represents a reasonable market value. The replacement value of the
building is likely exceeded by the needed repairs, and if it weren’t for the
prospect of doing an affordable housing project on the site and the
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potential for federal Low Income Housing Tax Credits to offset the project
we would not be able to convey the building at all.
Given the extensive likely presence of asbestos and other remediation-
worthy materials along with the large substructure, our early estimates on
removal of the building are very cost prohibitive. This low purchase price
presents an opportunity to save the building for a high priority adaptive
reuse and simultaneously avoid our current carried costs and potential
future demolition expenses.
STAFF RECOMMENDATION: To approve the Sales Agreement for 417
Jackson to Samaritas for $1,000.00 as presented.
7.b Storage Area Network Device (SAN) - Information Technology
Staff is requesting authorization to purchase a new Storage Area Network
appliance to host the City of Muskegon virtual server systems.
STAFF RECOMMENDATION: To approve the purchase of a Storage Area
Network appliance from Dell Technologies.
Action No. 2023-113(b)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the purchase of a Storage Area Network appliance from Dell
Technologies.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.c Water Treatment Chemical Bids - DPW - Water Filtration
Staff is requesting approval of contracts with Univar and USALCO to
supply fluoride and alum to the Water Filtration Plant.
The Water Filtration Plant purchases water treatment chemicals as part of
a cooperative that includes seven other area municipalities. The contracts
and bidding processes are managed by the City of Grand Rapids.
The City of Grand Rapids issued two separate public invitations to bid on
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supplying and delivering water treatment chemicals: one for fluoride
(hydrofluorosilicic acid) and one for alum (aluminum sulfate). Staff is
requesting approval of the contracts with the lowest bidders, Univar
(fluoride) and USALCO (alum). The fluoride contract is for a one-year term
and the alum contract is for a one-year term with the option of two one-
year renewals.
The Water Filtration Plant uses an average of 60 tons of fluoride annually.
Under the contract with Univar, the estimated annual cost based on
average use will be $30,000 ($500/ton).
The Water Filtration Plant uses an average of 251 dry tons of alum
annually. Under the contract with USALCO, the estimated annual cost
based on average use is:
Year 1 ($455.80/dry ton): $114,500
Year 2 ($470.17/dry ton): $118,500
Year 3 ($490.70/dry ton): $123,000
Fluoride and alum purchases are included in the Water Filtration Plant
budget. Based on average use, it is anticipated that no budget
adjustments will be required this fiscal year. However, the actual amount
spent will ultimately depend on water usage and source water quality.
AMOUNT REQUESTED: $144,500 (Year 1 estimate, flouride and alum)
$118,500 (Year 2 estimate, alum only)
$123,000 (Year 3 estimate, alum only)
STAFF RECOMMENDATION: To approve the water treatment chemical
contracts with Univar and USALCO.
Action No. 2023-113(C)
Motion by: Commissioner Emory
Second by: Vice Mayor German
To approve the water treatment chemical contracts with Univar and
USALCO.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
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7.d Conversion Assistance Amendment - DPW
Staff requests authorization to enter into an amended Agreement with
Ramboll for assistance in resolving the conversion of the Lakeshore Trail
and Hartshorn properties.
STAFF RECOMMENDATION: To approve of staff entering into an
amended agreement with Ramboll for assistance in resolving the
conversion of the Lakeshore Trail & Hartshorn properties.
Action No. 2023-113(d)
Motion by: Commissioner St.Clair
Second by: Commissioner Hood
To approve of staff entering into an amended agreement with Ramboll for
assistance in resolving the conversion of the Lakeshore Trail & Hartshorn
properties.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.h Request to Rezone 162 E Apple, 170 E Apple, 974 Spring, 971 Jay,
and 151/157/171/181 Allen - Planning
Request to rezone 162 E Apple Ave, 170 E Apple Ave, and 974 Spring St
from B-2, Convenience & Comparison Business to FBC, Neighborhood
Core and to rezone 151/157/171/181 Allen Ave and 971 Jay St from R-3,
High Density Single Family Residential to FBC, Neighborhood Core, by
General Capital Acquisitions, LLC.
The properties are being rezoned to allow for affordable apartments. The
Planning Commission recommended approval of the request by a 7-0
vote.
SECOND READING REQUIRED
STAFF RECOMMENDATION: To approve the request to rezone 162 E
Apple, 170 E Apple, 974 Spring, 971 Jay, and 151/157/171/181 Allen to
Form Based Code, Neighborhood Core.
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Action No. 2023-113(h)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the request to rezone 162 E Apple, 170 E Apple, 974 Spring,
971 Jay, and 151/157/171/181 Allen to Form Based Code, Neighborhood
Core.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.i Request to Rezone 550 W Grand Ave - Planning
Request to rezone the property at 550 W Grand Ave from FBC, Urban
Residential to FBC, Neighborhood Core, by General Capital Acquisitions,
LLC.
The properties are being rezoned to allow for affordable apartments. The
Planning Commission recommended approval of the request by a 7-0
vote.
SECOND READING REQUIRED
STAFF RECOMMENDATION: To approve the request to rezone the
property at 550 W Grand Ave to Form Based Code, Neighborhood Core.
Action No. 2023-113(i)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the request to rezone the property at 550 W Grand Ave to
Form Based Code, Neighborhood Core.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
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MOTION PASSES (6 to 0)
7.j General Capital Spring Street Senior Housing Contract for Housing
Exemption (PILOT) Development Services
City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
Municipal Services agreement for commission consideration for a new
construction 53-unit Senior affordable housing complex at and around 162
Apple Avenue.
Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
rental units priced under $1,430 a month, staff has made overtures and
established relationships with several new and existing LIHTC developers.
General Capital has already successfully completed two new construction
facilities in our community, and is seeking to complete a third with the
Berkshire Spring Street Project. This site will support 53 affordable senior
apartments.
General Capital is seeking a Payment in lieu of Taxes (PILOT) of 7% of
net shelter rents. This should equal roughly $30,100 per year for the city to
divide between taxing jurisdictions. General Capital is also requesting a
3% Municipal Services Charge, which is detailed in another agenda item
in the packet.
Note that this item does not yet include the legal description exhibit that
we would usually see with the document, and that is due to a lot split
survey that is forthcoming and will be added to the document when
complete.
STAFF RECOMMENDATION: To approve the Contract for Housing
Exemption with Spring Street Limited Dividend Housing Association
Limited Partnership and authorize the mayor and clerk to sign.
Action No. 2023-113(j)
Motion by: Vice Mayor German
Second by: Commissioner Emory
To approve the Contract for Housing Exemption with Spring Street Limited
Dividend Housing Association Limited Partnership and authorize the
mayor and clerk to sign.
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Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
8. Public Hearings
8.a PRO Housing Grant - Public Hearing
The Development Services Division is seeking input from the public
regarding the PRO Housing Application.
Stevie Parcell, Grants Program Coordinator for Community &
Neighborhood Services provided an overview of the grant application
being submitted and explained how public comments could be made
during the public comment period.
The Pro Housing Grant is intended to identify and remove obstacles to the
production and preservation of affordable housing such as: gaps in
resources available for development, deteriorating infrastructure,
challenges to preserving existing housing stock, and many more. The City
is requesting $10 million for the following eligible activities that will benefit
only those residents at or below 80% of area median income:
• $3.5 million to establish a Housing Preservation Fund
o $1.5 million for rental rehabilitation
o $2 million for owner-occupied housing
• $6 million to finance the construction or rehabilitation of
affordable housing
o $1 million for acquisition/rehabilitation/resale projects and
nonprofit capacity building
o $4.5 million for construction of new units
o $.5 million for acquisition of land or real property for
development
• $500,000 for homebuyer down payment assistance
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The plan is available for review in person in Room 202 of Muskegon City
Hall, 933 Terrace Street, Muskegon, MI 49440, and online.
Comments are accepted by email to Stevie Parcell at
[email protected], by phone at (231) 724-6775, and by
mail to the following address:
Attn: Stevie Parcell
933 Terrace Street
Muskegon, MI 49440
Comments will be accepted from Thursday, October 12th 2023 through
Friday, October 27th, 2023.
STAFF RECOMMENDATION: To close the public hearing and record
comments provided.
PUBLIC HEARING COMMENCED: Public comments were received as
follow:
Kwame James - in favor - grateful that the city is taking advantage of the
opportunity to apply for the grant
Jay Kilgo - in favor - would like to see a public education piece in the grant
Dorothy Moss - in favor - would like to the city to have help available for
residents to apply for funds if the grant is awarded
Action No. 2023-114(a)
Motion by: Commissioner St.Clair
Second by: Commissioner Emory
To close the public hearing and record comments provided
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
9. Unfinished Business
10. New Business
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10.a Inclusive Rebrand - Manager's Office
Staff is requesting authorization to approve a contract with Kindred
Marketing, in the amount of $50,000 for the completion of an inclusive
rebranding for the City of Muskegon.
An RFP was issued on August 28, 2023 for an Inclusive Rebrand for the
city. The city is seeking a creative agency to develop an inclusive brand
for its rebranding initiative. The selected agency's objective will be to
develop a comprehensive rebranding strategy for the city. The agency will
be responsible for building a brand kit that addresses the following goals:
• Improve Muskegon’s image
• Stimulate economic development
• Unite the community through an inclusive process
• Develop a comprehensive citywide brand strategy and roll-out plan
• Create a dynamic new brand identity
• Demonstrate Muskegon’s connection and community
The current city logo was created decades ago and no brand guidelines,
brand story or brand kit exist. In 2015, the city embarked on a rebranding
journey and ultimately no consensus logo was selected. Currently, the City
of Muskegon uses variations of the old logo, individual department logos,
random colors and fonts, and the Watch Muskegon brand kit for city
material.
AMOUNT REQUESTED: Up to $50,000
FUND OR ACCOUNT: 101-103-801
STAFF RECOMMENDATION: To authorize staff to approve a contract
with Kindred Marketing in the amount of $50,000 for the completion of an
inclusive rebranding for the City of Muskegon.
Action No. 2023-115(a)
Motion by: Commissioner St.Clair
Second by: Commissioner Gorman
To authorize staff to approve a contract with Kindred Marketing in the
amount of $50,000 for the completion of an inclusive rebranding for the
City of Muskegon.
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Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
10.b Purchase Option for Windward Pointe - Manager's Office
City Staff has worked with the City Attorney and Parkland Properties to
draft an option agreement giving the City of Muskegon the exclusive right
to purchase an area encompassing ten (10) lots at a reduced rate on the
Windward Pointe PUD to install a new public park and Muskegon Lake
access at the end of the Lincoln Street extension in the development.
City staff has been working to enhance public access to Muskegon Lake
in the Windward Pointe Planned Unit Development (PUD) submitted by
Parkland Properties. During those conversations with Parkland, the site
plan evolved to include considerably more public access points than in the
original draft. However, those access points are mostly at the end of public
rights of ways or smaller in area. To gain higher quality public access, staff
proposed purchasing up to ten (10) lakefront parcels adjacent to a public
parklet at the end of Lincoln Street originally intended for single-family
houses.
Staff pointed out that if we were to purchase some of the lots intended for
single-family houses, Parkland would not need to run as many utility stubs
and other infrastructure to these lots and potentially could leave them out
of their Master Condo Agreement, saving further costs. Parkland agreed
to a rate of $148,750 per lot, representing a 15% reduction in the
average projected sale price on all waterfront lots in the PUD.
The sites highlighted in RED on the attached screen grab of a portion of
the PUD reflect the lots the City would have the option to buy. The option
would commence at the closing date between Parkland and Pure
Muskegon on the property, and the City would have two (2) years to
execute these purchases.
The staff anticipates that the PUD will come to the City Commission for
consideration at your meeting on November 14th.
AMOUNT REQUESTED: $1,487,500
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STAFF RECOMMENDATION: To approve the Option Agreement between
the City of Muskegon and Parkland Properties as presented and to
authorize the mayor and clerk to sign.
Action No. 2023-115(b)
Motion by: Commissioner St.Clair
Second by: Commissioner Emory
To approve the Option Agreement between the City of Muskegon and
Parkland Properties as presented and to authorize the mayor and clerk to
sign.
11. Any Other Business
Comments were made by Vice Mayor German, Commissioner St.Clair and
Commissioner Hood.
12. Public Comment on Non-Agenda items
Public comments were received.
13. Closed Session
14. Adjournment
The City Commission meeting adjourned at 7:30 p.m.
Motion by: Commissioner St.Clair
Second by: Commissioner Gorman
To adjourn.
MOTION PASSES
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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