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CITY OF MUSKEGON
SPECIAL COMMISSION MEETING
December 19, 2023 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners, Eric
Hood, Rachel Gorman, Rebecca St.Clair, and Michael Ramsey. City Manager
Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch
Absent: Commissioner Teresa Emory
Mayor Johnson called the December 19, 2023 Special Meeting to order at 5:30
p.m.
2023-128 NEW BUSINESS
A. Allocation of MEDC RAP 1.0 Grant Manager's Office
In 2022, the city was awarded a $6 million grant from the Michigan Economic
Development Corp (MEDC) as part of the Revitalization and Placemaking 1.0
(RAP) Grant Program. The funds were intended to support two local projects -
880 First St LLC ($3M) and the LakeView Lofts ($3M) developments, respectively.
Due to circumstances beyond the control of one of the local development
teams, it has become necessary to reallocate a portion of the RAP 1.0 funds as
outlined in the city's original grant application.
In June 2022, the City submitted an application to the MEDC for RAP 1.0 grant
funding for a total of $11M to be distributed between three projects. The original
grant application sought funds to support the following projects - Lakeview Lofts
II ($5M), 880 First Street ($5M), and Trinity Health Arena/Thayer Street ($1M). In
September 2022, the City was awarded $6M and directed to determine how
the funds should be allocated. Staff recommended, and the Commission
approved dividing the $6M between Lakeview Lofts II and 880 First Street.
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The City is the primary grant recipient and has reporting requirements that need
to be met. If those reporting requirement are not met, the City would lose the
whole grant.
Since the monies were divided between the two projects, the 880 First Street
project has encountered obstacles outside of everyone's control. The local
development team and others worked diligently to overcome these obstacles.
However, because of state reporting timeline requirements, we need to resolve
the allocation of the funds by Dec. 31, 2023.
City staff was notified on December 18, 2023 that these obstacles would not be
able to be overcome by the end of 2023. As a result, the City needs to
reallocate the $3M originally intended for 880 First Street to the other projects
from the original application.
If we kept the funds allocated to 880 First Street, and the City is unable to meet
its reporting requirements, the City would forfeit all $6 million of the RAP grant
because the state views this as one grant awarded to the City, not several small
grants.
As a result, staff is recommending reorienting an additional $2M to Lakeview
Lofts II for a total of $5M million and supporting the Arena/Thayer Street project
with the remaining $1M.
Staff worked diligently with the 880 First Street team to explore options that
would have had a more positive outcome with these grant funds. Unfortunately,
a viable path forward can not be found under the timelines issued by the State.
Staff have been in regular communication with the 880 First Street team and the
MEDC to ensure our local partners had as much time as possible to resolve
these issues. The City is appreciative of the efforts put forth by the 880 First Street
team and their willingness to partner with us during this time.
STAFF RECOMMENDATION: To reallocate the MEDC RAP 1.0 grant as follows:
$5M to Lakeview Lofts Phase 2; and $1M designed for a place making project at
Trinity Health Arena/Thayer Street and authorize the mayor and clerk to sign the
first amendment to the subrecipient agreement.
Motion by Commissioner Ramsey, second by Vice Mayor German, to
reallocate the MEDC RAP 1.0 grant as follows: $5M to Lakeview Lofts Phase 2;
and $1M designed for a place making project at Trinity Health Arena/Thayer
Street and authorize the mayor and clerk to sign the first amendment to the
subrecipient agreement.
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ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, and Gorman
Nays: None
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS
No public comments were received.
ADJOURNMENT
Motion by Commissioner Ramsey, second by Commissioner Hood, to adjourn at
5:48 p.m.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Hood, Ramsey, and German
Nays: None
MOTION PASSES
Respectfully Submitted,
Ann Marie Meisch, MMC
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