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CITY OF MUSKEGON
CITY COMMISSION MEETING
May 26, 2026 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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, May 26, 2026.
Pastor Adam Dollar from Evanston Avenue Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Destinee Keener, Commissioners
Rebecca St.Clair, Jay Kilgo, Willie German, Jr., Kiley Jackson, and Katrina
Kochin (left at 8:15 p.m.), City Manager Jonathan Seyferth, City Attorney
Brennen Gorman, and City Clerk Ann Marie Meisch
2026-37 PUBLIC HEARINGS
A. Neighborhood Enterprise Zone Certificates — 367 E. Forest Ave., 377 E.
Forest Ave., 58 E. Grand Ave., 77 Monroe Ave., and 181 Irwin
Ave. Economic Development
Stephens Homes and Investments LLC has submitted five applications for
Neighborhood Enterprise Zone (NEZ) certificates for the construction of new
single-family homes at 58 E. Grand Avenue, 367 E. Forest Avenue, 377 E. Forest
Avenue, 79 Monroe Avenue, and 181 Irwin Avenue. These addresses are
located within existing Neighborhood Enterprise Zone Districts and are eligible
for consideration under the Neighborhood Enterprise Zone Act, which
encourages the construction and rehabilitation of residential housing within
eligible communities.
These properties were previously purchased from the City of Muskegon for
residential development. As part of the development process, one parcel was
split to create two separate addresses and one parcel underwent an address
change. Estimated project costs for the proposed homes range between
$125,000 and $180,000. The applicant has paid all required application fees
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and has met all local requirements for the issuance of NEZ certificates. Stephens
Homes and Investments LLC is requesting that each certificate be issued for a
term of 15 years. Approval of these applications would grant each home a
Neighborhood Enterprise Zone tax abatement that may reduce property taxes
by up to approximately 50% for the requested 15-year term.
STAFF RECOMMENDATION: I move to close the public hearing and approve
Neighborhood Enterprise Zone (NEZ) certificates for 15 years for the properties
located at 58 E. Grand Avenue, 367 E. Forest Avenue, 377 E. Forest Avenue, 79
Monroe Avenue, and 181 Irwin Avenue, and authorize the Mayor and City
Clerk to sign the applications and resolutions.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner St.Clair, second by Vice Mayor Keener, to close the
public hearing and approve Neighborhood Enterprise Zone (NEZ) certificates
for 15 years for the properties located at 58 E. Grand Avenue, 367 E. Forest
Avenue, 377 E. Forest Avenue, 79 Monroe Avenue, and 181 Irwin Avenue, and
authorize the Mayor and City Clerk to sign the applications and resolutions.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Jackson, Kochin, and
St.Clair
Nays: None
MOTION PASSES
B. FY 2026-27 Budget - Public Hearing Manager's Office
This is a public hearing for the Fiscal Year 2026-27 budget which was presented
to the Commission on May 12, 2026. We anticipate final budget adoption at
the June 9, 2026, meeting.
STAFF RECOMMENDATION: Motion to close the public hearing.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Kilgo, second by Commissioner St.Clair, to close the
public hearing.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, Kochin, St.Clair, and
Johnson
Nays: None
MOTION PASSES
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
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2026-38 CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve minutes of the May 11th Commission Worksession and the May 12th
Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Amendment to the Zoning Ordinance - Waterfront Setbacks in FBC, LMR.
(SECOND READING) Planning
Staff-initiated request to amend Section XX of the zoning ordinance to change
the required front setbacks for waterfront properties in the Lakeside Mixed
Residential context area.
The Lakeside Mixed Residential context area has a front build-to-zone of 5-12
feet. The Form-Based Code allows waterfront properties to consider either the
street side or the waterfront side as the front of the property. This means that a
building may be required to be placed anywhere from 5 to 12 feet from the
property line facing the water. Since all of the property may not be above the
ordinary high watermark, and also since water levels fluctuate, it would not be
possible to place a building this close to the water in many situations.
Staff is proposing to amend the ordinance to require waterfront properties to
only build above the ordinary high watermark and not to have a traditional
setback from the waterfront property line.
The Lakeside Mixed Residential context area allows detached houses,
duplexes, rowhouses, small multiplexes, and cottage retail buildings.
The Planning Commission unanimously (5-0, 4 members absent) recommended
approval of the amendment.
STAFF RECOMMENDATION: I move the request to amend Section XX of the
zoning ordinance to change the required front setbacks for waterfront
properties in the Lakeside Mixed Residential context area be approved.
E. Energy Performance Contract with Johnson Controls, Inc. Public Works
Staff offers an Energy Performance Contract with Johnson Controls, Inc. that will
satisfy many capital needs throughout the City and generate over $19M in
savings, as detailed in the contract, for a total cost of $43,296,839.
In May of 2025, the Commission approved Johnson Controls, Inc. (JCI) as the
City's service provider for an Energy Performance Contract (EPC). Since that
time, and with various approvals along the way by the Commission, staff and
JCI have worked to develop a series of items that address capital needs of the
City and fit well within the structure of an EPC. On Monday, May 11 of this year,
staff and JCI presented the details of the contract and the items proposed
within it. The specific items and terms are also detailed within the contract. To
reiterate the highlights:
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• A complete renovation of the DPW facility, including the addition of
6,000 ft2 of community space
• Replacement of over 10,000 water meters and the repair or replacement
of all commercial meters
• HVAC improvements at City Hall and the Water Filtration Plant, including
replacing all City Hall windows
• Leak detection in portions of the water system, and infiltration-reducing
measures in the sewer system
• Other electric- and water-saving improvements at City Hall, the marina,
and in our parks and cemeteries
The EPC format allows future savings that are generated by the improvements
to be used to defray the cost of those improvements. As such this EPC includes
savings of $19,593,375, provided by such things as increased water revenue
due to the meter replacements, and utility savings generated by more efficient
equipment. These savings are guaranteed - if they fail to materialize and the
City has met its related obligations, JCI will pay the City an equivalent amount
for the missing savings.
The project is proposed to be financed using a financial instrument known as a
Tax-Exempt Lease Purchase (TELP). If the Energy Performance Contract is
approved, JCI will work with City staff to issue a Request for Proposals to
banks. Staff and JCI will negotiate terms, and return to the Commission with the
loan proposal for approval at a future Commission meeting. The TELP does not
count against the City's bonding capacity, yet still provides a competitive rate
structure.
After financing and savings, and after being distributed to the various funds
that support the items included in the project, the financial impact to the City's
budget is approximated by fund below. Actual payments in any given year will
vary according to the offsetting savings. The figures shown are an annual
average over the life of the project financing assuming a rate of 4.5%.
Annual Total $2,345,188
101 (General) $356,609
20X (Highway) $575,617
590 (Sewer) $324,754
591 (Water) $511,143
594 (Marina) $19,231
643 Engineering) $104,279
661 (Equipment) $457,397
On the "Budgeted Item" line, it is noted as N/A as this will be budgeted for in
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future fiscal years starting in FY 2027-28.
STAFF RECOMMENDATION: Move to approve the Energy Performance Contract
with Johnson Controls, Inc. as detailed in the contract for a total cost of
$43,296,839, and to authorize the Mayor and Clerk to sign.
G. Purchase of New Excavator for DPW Public Works
Staff requests authorization to purchase a CAT 317 excavator from MacAllister
Equipment in the amount of $247,825.58.
The time has come to replace our existing excavator. The current excavator is
from 2004 and is becoming unreliable. The excavator is used for snow fence at
the beach, docks at the marina, tearing down hazardous structures after fires,
road projects, and water/sewer line repairs. After demoing a new 317 CAT from
MacAllister Equipment at the compost site, staff verified it is the right piece of
equipment for the needs at hand. The 317 CAT is similar to the existing
excavator with slight upgrades to load capacity and digging depth. The new
excavator comes with modern technology and safety features, like 360 view
cameras, that will help the DPW staff operate safely and efficiently. MacAllister
has been awarded the Sourcewell contract for Caterpillar equipment in the
state of Michigan, with pricing for this model at $247,825.58.
Sourcewell is an organization that competitively solicits equipment, technology,
and services and provides the pricing via cooperative purchasing agreements
that allow public entities - such as government agencies, school districts, tribal
nations, and nonprofits - to make purchases satisfying policy requirements such
as public bidding.
STAFF RECOMMENDATION: Move to authorize staff to purchase a CAT 317
excavator from MacAllister Equipment in the amount of $247,825.58.
K. Termination of Easement - 20 W. Muskegon Avenue Economic
Development
Muskegon Pediatrics is buying the building at 20 W. Muskegon from Fresh Coast
Alliance in the Pine Street corridor for their new offices. There is an unnecessary
facade easement on the building that must be terminated prior to sale.
Muskegon Pediatrics has an accepted offer on the building at 20 W. Muskegon
after they determined it was a preferable location for their offices than their
previous planned site at the Century Club. During title work on the transaction,
it was discovered there is an old easement related to the exterior facade of the
building. It appears to date back decades and may actually be related to a
companion building that has since been removed from the parcel. In order for
the building sale to proceed, the easement must be terminated. Staff
recommends approval of the termination prepared by the City Attorney.
STAFF RECOMMENDATION: Motion to approve the termination of easement for
20 W. Muskegon Avenue, and to authorize the Mayor and Clerk to sign.
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Motion by Commissioner German, second by Commissioner Kilgo, to adopt the
Consent Agenda as presented minus Items C, D, F, H, I, and J.
ROLL VOTE: Ayes: German, Jackson, Kochin, St.Clair, Johnson, Kilgo, and
Keener
Nays: None
MOTION PASSES
2026-39 ITEMS REMOVED FROM THE CONSENT AGENDA
C. Amendment to the Zoning Ordinance - Several Changes to the Form
Based Code (SECOND READING) Planning
Staff-initiated request to amend Section XX of the zoning ordinance to
remove/edit several areas of the form-based code.
Staff is proposing several amendments to the Form-Based Code (FBC). The
reasoning behind these amendments is as follows:
o The FBC has been used for over 10 years now, staff have noticed some
regulations that need to be removed or revised.
o Rezonings have brought about multiple expansions across eight
neighborhoods (Nelson, Lakeside, Nims, Jackson Hill, Campbell Field,
Northeast, Angell, and McLaughlin).
o Creation of new Context Areas specific to the Lakeside Business District
and adjacent residential areas in May, 2019. Modeled after, but never
fully integrated into the original FBC document.
o Continued rezonings/expansion anticipated to implement the goals of
the Master Land Use Plan.
o Eliminate redundancies to improve readability for users and generally
make the document more accessible.
o Simplify regulations to ensure that the code regulates the things that it
should be, and not the things it shouldn’t be.
o Opportunity to address document formatting as the Zoning Ordinance
transitions to the Municode platform.
In general, the proposed updates include:
o Updated wording to be more specific, clear, or concise, where
necessary.
o Eliminated redundant language and references to Zoning Ordinance
sections with overlapping regulations.
o Corrected Zoning Ordinance section references throughout.
o Removed unhelpful regulations that have minor effect on intended
results.
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o Removed "suggested" regulations, some of which will be used to draft
actual regulations.
Jamie Pesch from the Planning Department gave a presentation on the
proposed amendments.
The Planning Commission unanimously (5-0, 4 members absent) recommended
approval of the amendments.
STAFF RECOMMENDATION: I move the request to amend Section XX of the
zoning ordinance to edit several areas of the form-based code be approved
as presented.
Motion by Commissioner Kilgo, second by Commissioner St.Clair, to move the
request to amend Section XX of the zoning ordinance to edit several areas of
the form-based code be approved as presented.
ROLL VOTE: Ayes: Jackson, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
D. Amendment to the Harbor 31 Planned Unit Development (PUD) (SECOND
READING) Planning
Request to amend the Harbor 31 Planned Unit Development (PUD) at 600
Shoreline Dr. (PUD address) for a new residential development at 170 Viridian
Dr. (development address) and to amend the waterfront access paths within
Harbor 31.
The proposed development is located within the Harbor 31 Planned Unit
Development (PUD). Much of the interior of the subject parcel is considered a
wetland and is prohibited from development by the Michigan Department of
Environment, Great Lakes, and Energy (DELEG). The areas restricted from
development are enclosed by split rail fencing and are considered an
environmental easement.
The project consists of four large multiplex buildings, each containing 12 units,
for a total of 48 units. There are 67 off-street parking spaces and five parking
spaces in the terrace proposed.
Large multiplex buildings are an allowed building type in this context area.
However, the location of the wetlands prohibits traditional building and parking
placement, requiring the need to amend the PUD. The initial project for this
parcel was townhomes, but the environmental easements caused issues with
the site layout.
A portion of the Grand Valley State University (GVSU) parking lot to the west of
the development actually encroaches onto the Meadows property. This will
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have to be removed prior to construction. Page 2 of the site plan depicts the
existing parking lot in relation to the proposed development, and Page 3
depicts what the revised GVSU parking lot could look like, although this is not a
finalized concept. GVSU will have to apply to the City to reconfigure their
parking lot.
A stormwater management permit application will need to be submitted to the
Engineering Department, and the original storm water management permit for
the overall site may need to be modified if changes to the original
management plan are contemplated.
Notice was sent to all addresses within 300 feet of the property. At the time of
this writing, staff had received one comment from the public. Kevin Murphy,
who is an owner of the Vida Nova condominiums, made several comments
regarding issues he has with the overall development of Harbor 31. His
comments appear to be issues with the Harbor 31 board, the lack of boardwalk
signage for the public, and issues with the placement of electrical equipment,
but there were no specific comments about the proposed development.
Staff recommends approval of the request with the condition that the western
path to the boardwalk is installed and functional before Certificates of
Occupancy are issued for the Meadows.
The Planning Commission unanimously recommended approval of the request
with the following conditions:
1. The stormwater permit must be updated with the Engineering Dept.
2. The Certificates of Occupancy for the Meadows are not issued until the
western path to the boardwalk is constructed and usable and includes a
public access sign.
3. Any street trees removed for terrace parking must be replaced
elsewhere within Harbor 31, as approved by staff.
4. The landscaping plan shall be revised to include an additional 10
canopy trees on-site, including at least two per parking lot.
5. The drive entrance to the north be realigned, as approved by staff. The
eight parking spaces in this area must also be removed.
The site plan has been updated since the Planning Commission meeting and
has addressed items 3–5.
STAFF RECOMMENDATION: I move the request to amend the Harbor 31 Planned
Unit Development for a new residential development at 170 Viridian Dr., and to
amend the waterfront access paths within Harbor 31, be approved with the
following conditions:
1. The stormwater permit must be updated with the Engineering Dept.
2. The Certificates of Occupancy for the Meadows are not issued until the
western path to the boardwalk is constructed and usable and includes a public
access sign.
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Motion by Commissioner Kochin, second by Commissioner Kilgo, that the
request to amend the Harbor 31 Planned Unit Development for a new
residential development at 170 Viridian Dr., and to amend the waterfront
access paths within Harbor 31, be approved with the following conditions:
1. The stormwater permit must be updated with the Engineering Dept.
2. The Certificates of Occupancy for the Meadows are not issued until the
western path to the boardwalk is constructed and usable and includes a public
access sign.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, and Jackson
Nays: Kochin, Keener, and German
MOTION PASSES
F. Juneteenth Resolution 2026 Commissioner Request
Resolution to recognize Friday, June 19, 2026, as Juneteenth National
Independence Day and to authorize the flying of the Juneteenth Flag at City
Hall and Hackley Park from June 19th through the end of the month.
STAFF RECOMMENDATION: Motion to approve the resolution as presented and
fly the Juneteenth flag at City Hall and Hackley Park from Friday, June 19, 2026,
through June 30, 2026.
Motion by Commissioner German, second by Vice Mayor Keener, to approve
the resolution as presented and fly the Juneteenth flag at City Hall and Hackley
Park from Friday, June 19, 2026, through June 30, 2026.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Jackson, and
Kochin
Nays: None
MOTION PASSES
H. Liquor License Extension – Wonderland Distilling Co, 1989 Lakeshore
Drive, Suite B Economic Development
Wonderland Distilling Company, located at 1989 Lakeshore Drive, Suite B, is
requesting Local Government Approval for an amendment to its existing liquor
license originally approved in 2019, to allow the addition of beer and wine
service. The business currently operates under an Off-Premises Tasting Room
Spirits License connected to its distillery operations at 2217 Lemuel Street in
Muskegon.
The requested amendment would allow Wonderland Distilling to expand its
current offerings to include beer and wine service in addition to its existing
cocktail menu. According to the applicant, this is not a new liquor license
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request, but rather an extension of the previously approved license already
associated with the business’s manufacturing operations.
The applicant has indicated they are aware of and intend to satisfy all
applicable Michigan Liquor Control Commission (MLCC) requirements
associated with the license request. The applicant has indicated the facility has
already received approvals from the County Health Department and MDARD
(Michigan Department of Agriculture and Rural Development) .
Approval of the Local Government Approval form would authorize the City
Clerk to sign the required documentation for submission to the State of
Michigan and the MLCC.
STAFF RECOMMENDATION: I move to approve the liquor license amendment
request for Wonderland Distilling Company located at 1989 Lakeshore Drive,
Suite B, and authorize the City Clerk to sign the required Local Government
Approval documentation.
Motion by Commissioner German, second by Commissioner Kilgo, to approve
the liquor license amendment request for Wonderland Distilling Company
located at 1989 Lakeshore Drive, Suite B, and authorize the City Clerk to sign
the required Local Government Approval documentation.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Jackson, Kochin, and
St.Clair
Nays: None
MOTION PASSES
I. Contract for Housing Exemption - Jackson Hill Estates Economic
Development
The PILOT for Jackson Hill Estates is expiring in March of 2027, and General
Capital is requesting a 10-year extension.
The Village at Jackson Hill is a longtime senior housing LIHTC in the community
that features some of the lowest rents per square foot in the metro area. In
March of 2027, the 25-year affordability period will expire, which places the
community on the regular tax rolls. General Capital is requesting a 10-year
extension with a 4% PILOT as currently applies to the site. They have recently
been awarded a Weatherization Program Grant from Mid Michigan
Community Action in order to perform capital improvements to the units such
as new windows and other energy efficiency improvements. The current PILOT
payment is roughly 13-14,000 dollars per year.
The site will de facto revert to market rate, unsubsidized units in the event of an
expiration of the PILOT and so staff recommends approval of the extension.
STAFF RECOMMENDATION: Motion to approve the Contract for Housing
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Exemption as presented, and to authorize the Mayor and Clerk to sign.
Motion by Commissioner German, second by Commissioner Kilgo, to approve
the Contract for Housing Exemption as presented, and to authorize the Mayor
and Clerk to sign.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, Kochin, St.Clair, and
Johnson
Nays: None
MOTION PASSES
J. Recognizing June as Pride Month Mayor's Office
June is Pride Month; the resolution is offered as a way to acknowledge Pride
Month and the LGBTQ+ community. The resolution notes that the Pride Flag will
be flown at Hackley Park during Pride Month and that a Pride Display can be
done at City Hall.
STAFF RECOMMENDATION: To approve the resolution as presented, fly the Pride
Flag at Hackley Park during Pride Month, and support a Pride display at City
Hall.
Motion by Commissioner Kochin, second by Commissioner St.Clair, to approve
the resolution as presented, fly the Pride Flag at Muskegon City Hall and
Hackley Park during Pride Month, and support a Pride display at City Hall.
ROLL VOTE: Ayes: Keener, German, Jackson, Kochin, St.Clair, Johnson, and
Kilgo
Nays: None
MOTION PASSES
2026-40 NEW BUSINESS
A. Rad Dads Agreement — Discussion REMOVED PER REQUEST OF
STAFF Manager's Office
B. Amendment to Chapter 82 of the Code of Ordinances - Affordable
Housing Economic Development
Updates to the Code of Ordinances to reflect changes to the MSHDA Act and
more easily facilitate infill housing.
With the new programming available from the State of Michigan that has been
empowered by updates to the MSHDA Act, we have been able to facilitate
many infill housing units with pricing controls. Examples include Housing TIF,
Workforce PILOT, and nearly 300 units of LIHTC apartment housing. We are rare
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in the sense that we have adopted regulations around allowing affordable
housing in our code of ordinances, which makes the local policy environment
attractive for investment.
However, with all of these recent changes to the State Act, we need to update
our code of ordinances to make sure that our local law acts in concert with
State Law. The proposed update to the ordinance covers all bases for the
current affordable housing types in Michigan and sets us up to continue our
momentum in this development space.
STAFF RECOMMENDATION: Motion to adopt the Amendment to Chapter 82 of
the General Code of Ordinances as presented.
Motion by Commissioner St.Clair, second by Commissioner Kochin, to adopt
the Amendment to Chapter 82 of the General Code of Ordinances as
presented.
ROLL VOTE: Ayes: German, Jackson, Kochin, St.Clair, Johnson, Kilgo, and
Keener
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
Economic Development Director Jake Eckholm gave an update on the
marketing of the Nelson House.
Commissioner Kilgo stated there is a three-week Financial Empowerment Series
June 15, June 22, and June 29 at Access Health.
City Manager Jonathan Seyferth gave an update on the fire at the Village at
The Oaks.
GENERAL PUBLIC COMMENT
Public comments received.
2026-41 CLOSED SESSION
A. Attorney/Client Communication City Clerk
Motion by Commissioner St.Clair, second by Commissioner Kilgo, to go into
Closed Session to consider material exempt from discussion or disclosure under
State or Federal Statute being an attorney/client communication.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
Jackson
Nays: None
MOTION PASSES
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Motion by Commissioner Kilgo, second by Vice Mayor Keener, to come out of
Closed Session.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, St.Clair, and Johnson
Nays: None
MOTION PASSES
Motion by Vice Mayor Keener, second by Commissioner St.Clair, to approve
the settlement offer as discussed.
ROLL VOTE: Ayes: Keener, German, Jackson, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
ADJOURNMENT
The City Commission meeting adjourned at 9:17 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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