City Commission Packet 11-13-2018

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      CITY OF MUSKEGON
        CITY COMMISSION MEETING
        NOVEMBER 13, 2018 @ 5:30 P.M.
     MUSKEGON CITY COMMISSION CHAMBERS
    933 TERRACE STREET, MUSKEGON, MI 49440


                                  AGENDA

□      CALL TO ORDER:
□      PRAYER:
□      PLEDGE OF ALLEGIANCE:
□      ROLL CALL:
□      HONORS AND AWARDS:
    A. City of Muskegon Employees – Years of Service Awards
□      INTRODUCTIONS/PRESENTATION:
□      CITY MANAGER’S REPORT:
□      CONSENT AGENDA:
    A. Approval of Minutes      City Clerk
    B. Request for Authorization to Sign       Planning & Economic Development
    C. Purchase of 567 Leonard Avenue          Community & Neighborhood
       Services
    D. Set Public Hearing for Amendment to the Downtown Development Plan
       and Tax Increment Financing Plan    Planning & Economic Development
    E. State Revolving Fund – Sewer Project Administration Assistance
       Department of Public Works
    F. Replacement of Storage Area Network (SAN)         Information Technology
□   PUBLIC HEARINGS:
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
                                           Page 1 of 2
    A. Rezoning Several Properties                Planning & Economic Development
    B. Parking Restrictions December 1 – April 1                     Public Safety
    C. Short Term Rental Discussion               City Manager
    D. Disposition of 1021 Jefferson              City Manager
    E. Letter of Intent with Mart Dock City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
►      Reminder: Individuals who would like to address the City Commission shall do the following:
►      Fill out a request to speak form attached to the agenda or located in the back of the room.
►      Submit the form to the City Clerk.
►      Be recognized by the Chair.
►      Step forward to the microphone.
►      State name and address.
►      Limit of 3 minutes to address the Commission.
►      (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.




                                                       Page 2 of 2
Memorandum
To:      Mayor and Commissioners

From: Frank Peterson

Re:      City Commission Meeting

Date: November 8, 2018

Here is a quick outline of the items on our very full agenda:

      1. We will celebrate our many employees’ service awards.
      2. Under the Consent Agenda, we are asking the Commission to consider the following:
            a. Approval of meeting minutes from the most-recent City Commission meeting.
            b. Provide authorization to Mike Franzak, Planning Director, to sign on behalf of the
                City during land transactions.
            c. Authorization to purchase 657 Leonard Ave as part of Community and
                Neighborhood Services’ home rehabilitation program. The home will be
                presented for income qualified buyers.
            d. Set a public hearing to amend the DDA Tax Increment Financing Plan. The purpose
                of the amendment is to move a number of properties back into the tax capture
                calculation. Many of the properties were removed as part of the redevelopment
                of the former mall property.
            e. Authorization to extend contract with Prein & Newhof Engineers to administer the
                recently awarded state-revolving fund sewer project.
            f. Authorization to purchase a new Storage Area Network (SAN).

      3. Under the New Business, we are asking the Commission to consider the following:
            a. Concurrence in-part with the Planning Commission’s recommendation to rezone
                a number of parcels in the Nelson Neighborhood to Urban Residential (Form
                Based Code). The change will allow for a number of housing types, including
                detached and attached single family, duplexes, and small multiplexes. It’s
                Important to note that the rezoning of the properties adjacent to St. Joe Park is
                being recommended for denial, while the properties along Houston Ave are being
                recommended for approval.
            b. First reading of an amendment to our winter on-street parking rules. After three
                winters with the 2a-6a parking ban, staff is recommending that we move to an
                even-odd winter parking program. The proposed ordinance works as such:
        i. The effective timeframe would be unchanged (December 1 – Feb 28).
       ii. Every day, between 5p and 5a, people can park on either/both sides of the
            street.
      iii. For streets that have parking on only one side, signage will be used to
            direct residents.
      iv. We do not intend apply the even/odd parking to the downtown district.
       v. Staff recognizes that there will be a learning curve for residents and
            visitors. As in past years, we would only issue warnings for the month of
            December. The goal here is to get cars moving every day.
      vi. This change will have a couple major positive impacts: we’ll have a longer
            designated time to get one side of the street completed (5a-5p daily), and
            we can avoid parking in front yards and on terraces.
c. Short-Term Rental Discussion. Staff is proposing an ordinance to govern short-
   term rentals in the city limits. Over the past 18 months, as Muskegon has gotten
   more popular among vacationers, we have begun fielding complaints/concerns
   from residents. Complaints have included concerns about excess vehicles parked
   on the streets, loud parties, over-occupancy of houses/structures, and over-
   burdening of public resources (mostly park amenities). Staff will be talking about
   our plan to register and regulate these businesses in our neighborhoods.
d. Disposition of 1021 Jefferson Street – City-owned employee parking lot. The city
   has received multiple purchase offers and development proposals for the city-
   owned parking lot at the corner of Apple and Jefferson. One proposal has risen to
   the top as the most beneficial to the community and the City. Staff is seeking
   permission to execute a Letter of Intent to sell 1021 Jefferson Street to General
   Capital in anticipation of their construction of 73-unit housing development
   focused on providing quality workforce housing. Staff has identified this as a
   current and future need in the community. The project will include commercial
   on the first floor. This group recently developed the Berkshire downtown. Note
   the purchase price is $455,000.
e. Staff is seeking permission to enter into a Letter of Intent with West Michigan Dock
   and Market Company (Mart Dock) with the goal of determining the feasibility of
   swapping their property commonly referred to as The Third Street Dock with our
   property commonly referred to as Fisherman’s Landing. The goal of the swap
   would be to relocate all of The Mart Dock’s shipping operations away from their
   downtown location to the city property adjacent to the BC Cobb site. The
   downtown sites would then be redeveloped into a mixture of public space,
   residential, and commercial uses. This agreement does not commit either party
to the swap, but rather gives both parties time/access to study the feasibility of
the complicated transaction.
Date:     November 7, 2018
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Meisch, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the October 12, 2018
Goal Setting Meeting and the October 23, 2018 Regular Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                                        Goal Setting Meeting
                                          October 12, 2018
                                              9:00 a.m.
                             L.C. Walker Arena, 470 W. Western Avenue

Present: Mayor Gawron, Commissioners Warren, German, Turnquist, Johnson, Rinsema-Sybenga, and
Eric Hood. Frank Peterson, City Manager, as well as staff members.

Team Building

The group was given a team building exercise of a scavenger hunt. The group broke down into teams
and was given a list of items to find throughout the City. It was a great team building exercise for
everyone to enjoy.

Review Previous Goals

The attached document lists previous goals by the City Commission and their current status.

Proposed goals

The City Commission will gather again in the beginning of 2019 to discuss future goals of the City.



Adjourn




                                                                       ____________________________

                                                                         Ann Marie Meisch, City Clerk
                                     CITY OF MUSKEGON
                             SPECIAL CITY COMMISSION MEETING
                                           AGENDA
                                     L.C. WALKER ARENA
                                   470 W. WESTERN AVE.
                                 FRIDAY, OCTOBER 12, 2018
                                          9:00 A.M.




8:45 a.m.    Breakfast
9:00 a.m.    Arena Tour
9:30 a.m.    Welcome – Talk about Agenda
10:00 a.m.   Scavenger Hunt – Team Building
11:45 a.m.   Lunch
1:00 p.m.    Goal Setting Discussion
2:45 p.m.    Go Home
                                   Previous City Commission Goals

2012:
   1.      Redevelopment of Former Sappi Site WINDWARD POINTE
   2.      Neighborhood Revitalization ONGOING – MANY NEIGHBORHOODS IMPROVING
   3.      Consider Downtown Zoning Changes FORM-BASED CODE COMPLETED – EXPANDING
   4.      Consider Additional Cooperative Agreements ONGOING
   5.      Improve City Employment Diversity (tie) WAGE DISPARITY ADDRESSED, DIVERSITY IMPROVED
   6.      Provide Greater Support for the LC Walker Arena (tie) SIGNIFICANT INCREASE
   7.      Consider Physical Enhancements to Pere Marquette Park (tie) THE DECK, PLAYGROUND,
           RESTROOMS, CAMPING(?), TRAFFIC FLOW, WALKABILITY/BIKABILITY
   8.      Pursue Casino Development (tie) ASSESSMENT PAID BY DEVELOPERS/COUNTY, PROPERTY FOR
           SALE?

2013:
   1.   Youth-Friendly Businesses
   2.   Youth Jobs Program ONGOING, INTERNSHIPS, PARTNERSHIP WITH AVASURE
   3.   Sappi Redevelopment WINDWARD POINTE
   4.   Employment Diversity SEE ABOVE
   5.   Code Enforcement SAFEBUILT, BLIGHT FIGHT, BLIGHT APP, MCI PROGRAM
   6.   Relations with other Governments SIGNIFICANT IMPROVEMENTS MADE
   7.   Pere Marquette Park THE DECK, PLAYGROUND
   8.   City Manager Transitional Planning COMPLETE
   9.   Law Enforcement COMMUNITY RELATIONS

2014:
  (12 Month)
    1. Restart stalled/stagnant private developments HERITAGE SQUARE, HIGHPOINT FLATS, AMERIBANK,
       DMDC PROPERTIES, WATERMARK DEMOLITION, TERRACE POINT LANDING
    2. Develop plan for more accountability for IFT recipients
    3. Develop a plan for the former farmers market site FOOD HUB AND/OR RAMI
    4. Address neighborhood blight SAFEBUILT, BLIGHT FIGHT, BLIGHT APP, MCI PROGRAM
    5. Identify and implement a beach warning system REMOVED AS A PRIORITY IN 2015
    6. Develop and implement a road funding plan TWO BALLOT INITATIVES FAILED – NEEDS WORK
    7. Connect youth with work/recreation opportunities YEPS, LUMBERJACKS, LAKEHAWKS, INTERNS,
       GOYS/GIRLS CLUB, WATCH US GO SKATING/BOATING
    8. Develop a plan to improve the city’s image WATCH MUSKEGON, BLIGHT FIGHT, IMAGE COMMITTEE
    9. Develop a long-term finance plan for the City’s General Fund STRONG FISCAL POSITION
  (36 Month)
    1. Invest in critical infrastructure MUSKEGON, WEBSTER, LAKETON, LAKESHORE, WATER/SEWER
    2. Attract additional market-rate housing options – especially in the downtown HPF, AMAZON, LAKEVIEW
       LOFTS, MIDTOWN SQUARE, THE LEONARD, HARTSHOREN MARINA VILLAGE, TERRACE POINT
       LANDING, TERRACE FLATS
    3. Explore development opportunities at Pere Marquette Park EXPLORED IN 2015-16. THE DOCKS
    4. Identify redevelopment opportunities for the vacant Brunswick property WAITING FOR BRUNSWICK –
       PARK STREET STORAGE DEMOLITION WILL HELP
    5. Develop and maintain balanced General Fund budgets for the 13-14, 14-15, and 15-16 FYs EASY 
    6. Create new public lake access in the downtown
    7. Be a leader in intergovernmental cooperation LC WALKER ARENA, IT, ZONING, MH FIRE DISCUSSION
2015:
   1. Grow the Tax Base HERITAGE SQUARE, HIGHPOINT FLATS, FORMER FM SITE, KL INDUSTRIES,
   2. Address neighborhood blight SAFEBUILT, BLIGHT FIGHT, BLIGHT APP, MCI PROGRAM, DEMOLITIONS.
      NEIGHBORHOODS LOOK MUCH BETTER
   3. Develop and implement a road funding plan TWO FAILED MILLAGES (SORRY)
   4. Connect youth with work/recreation opportunities YEPS, LUMBERJACKS, LAKEHAWKS, INTERNS,
      BOATING, SKATING
   5. Develop a plan to improve the city’s image WATCH MUSKEGON, BLIGHT FIGHT, IMAGE COMMITTEE
   6. Develop a Stabilized Long-Term Budget STRONG FISCAL POSITION

2016:
   1. Housing
         a. Midtown Square Construction COMPLETE
         b. Proposed Projects WATERMARK, TERRACE LOFTS, BERKSHIRE, LAKEVIEW LOFTS
         c. Sappi Coordination we’ve come a long way. NEED TO FIGURE OUT RR AND
              INFRASTRUCTURE COSTS
         d. Midtown Square Sales SOLD
         e. Highpoint Flats COMPLETE
         f. Ameribank DEVELOPER IN DUE DILLIGENCE PHASE
         g. MPS Action Plan Coordination DIFFICULT WITH THEIR TURMOIL. MAYBE POST
              ELECTION?
   2. Image
         a. Highlight Individuals and Businesses VARIOUS AWARD PROGRAMS IN PLACE
         b. Watch Us Go WORKING ON A NEW 3-YEAR COMMITTMENT
         c. Promote Public Safety Community Engagement COFFEE WITH A COP, ENPACT, SHOP
              WITH A COP, NATIONAL NIGHT OUT
         d. Clean Up Old Farmers Market DEMOLITION DONE, DEVELOPMENT PENDING
         e. Restart Welcome Committee MUSKEGON STAR PROGRAM REPLACED THIS
         f. Walkable Community DOWNTOWN SNOW REMOVAL, ART, FORM BASED CODE
         g. Community Meetings TYPICALLY DONE TWO MEETINGS IN COMMUNITY ANNUALLY
   3. Quality of Life
         a. Address Public Safety NOT THERE YET
         b. Engage/Support Neighborhood Associations NEIGHBORHOOD EMPOWERMENT
              PROGRAM
         c. Walkable Community DOWNTOWN SNOW REMOVAL, ART, FORM BASED CODE
         d. Entertainment and Pop Ups WESTERN MARKET, FIRST FRIDAYS, TASTE OF MKG, FOOD
              TRUCK RALLEYS, CRUISE SHIPS
         e. Dog Park and Skate Park DOG PARK IS OPEN, SKATE PARK IN PLANNING
         f. Blight App COULD BE USED MORE
   4. Revenue Revitalization
         a. Strategy to Preserve Fund Balance LEGACY COSTS, FEE BASED SERVICES
         b. Explore Special Assessments STREET LIGHTS, MUST BE DISCUSSED RE STREETS
2017

Identified Seven Tenants of Quality of Life:

   Education (attainment levels, quality of education available, etc.)
   Living Conditions (housing costs/condition, income levels, disposable income, etc.)
   Productive Activities (quality/availability of jobs, volunteer opportunities, etc.)
   Environment (economic diversity, public safety, air/water/noise, wellbeing, etc.)
   Health (physical health, mental health, access to health care, etc.)
   Leisure Activities (clubs, special/sporting/cultural events, parks/recreation, etc.)
   Governance (citizen participation, equality, satisfaction with services, etc.)

One Year Plan:

    1. Leisure Activities
           a. Support Quality of Life Bond Proposal COUNTY REFUSED TO ADD TO BALLOT
           b. Implement PM Park Improvements (2017 MDNR Grant) DNR/DEQ ISSUES HAVE STALLED
               THE DEVELOPMENT UNTIL SPRING 2019
           c. Plan for improved parking and improved economic opportunities at PM Park CAMPING
               PROPOSAL – WILL DISCUSS WITH NEIGHBORS AS STEP 1. WAITING ON NEW PARKING
               UNTIL DOCKS DEVELOPMENT IMPACTS ARE BETTER KNOWN.
           d. Promote pop-up activities MORE CHALETS, MORE EVENTS 
           e. Continue walkability improvements NEW SIDEWALK ADDED TO TERRACE POINT
               EXTENSION.
           f. ID and host at least one new city-sponsored event in 2017. COLES ANIVERSARY EVENT,
               FOOD TRUCK RALLYS. LOOKING AT POSSIBLE REBOOT OF SUMMER CELL AND
               HALLOWEEN FIREWORKS IN 2019.

    2. Living Conditions
            a. Completion of residential projects in 2017. ALL COMPLETE EXCEPT LAKEVIEW LOFTS
               AND WATERMARK
            b. Ameribank renovations underway by 12/31/17 UNDERWAY
            c. Work to create urban design for Windward Pointe AMAZING DESIGN
            d. Adopt International Property Maintenance Code DONE
            e. Streamline property demolition to 90 days. 50-75 houses demolished over 2017-2019.
               SUCCESSFUL. DEMOLISHED __ HOUSES IN 2017 AND 2018, AS WELL AS PARK STREET
               STORAGE BUILDING
            f. Amend leaf pickup ordinance to allow for more enforcement, and provide some pick up
               opportunities in winter months NOT DONE YET
            g. Work on plan to address vacant school buildings CRAIG SCHOOL SOLD. FROEBEL
               SCHOOL IS PRIVATELY OWNED BUT GOING THROUGH FORECLOSURE PROCESS.
               HACKLEY ADMIN HAS A PROPSED BUYER
       h. Implement small lot zoning overlay DONE – LOOKING TO EXPAND URBAN RESIDENTIAL
          ZONING

3. Education
      a. Collaborate on an action plan with MPS NO ACTIVITY
      b. Assist ISD to further reach/impact of The Promise NO ACTIVITY

4. Governance
      a. Hold two meetings outside of city hall in 2017 DID WE?
      b. Create a parks commission NO ACTIVITY
      c. Engage the community on a street funding plan NO ACTIVITY
      d. Work toward a long-range road improvement and funding plan NO ACTIVITY
      e. Complete FM cleanup and engage the community on future end uses REZONING
          COMPLETE. TWO POTENTIAL END USERS ENGAGED
      f. Workforce diversity – incentivize Muskegon natives to pursue careers in police/fire.
          PRE-SERVICE PROGRAM HAS PRODUCED FIVE CANDIDATES.

5. Productive Activities
      a. Identify area for industrial park expansion CEMETERY, KL, PRISON SITE, FORMER
          FARMERS MARKET
      b. Create plan to begin reusing former industrial corridors MEDICAL MARIHUANA DISTRICT
      c. Identify long term vision for job creation centers FOCUS ON INDUSTRIAL EXPANSION IN
          OUR CURRENT INDUSTRIAL PARKS
      d. Create program to incentivize neighborhood groups to get involved with the condition
          of their neighborhoods NEIGHBORHOOD EMPOWERMENT PROGRAM

6. Environment
       a. Develop community safety plan NO ACTION
       b. Assist with delisting of Muskegon Lake as an Area of Concern AMOCO PURCHASE
          AGREEMENT AND CLEAN UP
       c. Be a leader in the Watch Muskegon program – improving the community’s image to our
          residents. STAFF RENEWED ITS COMMITMENT. INVESTING IN MARKETING AND
          BEAUTUFUCATION PROJECTS WITH WATCH MUSKEGON, CHAMBER, and CVB.
Initial Staff thoughts/discussion points for 2019-2020

    1. Continue focusing on Quality of Life Tenants
    2. Devote staff time to the areas that we did not in 2017 – particularly: community safety plan,
       education activities, street funding plan, PM Park, Area of Concern, and parks commission.
    3. Develop new programs/policies that continue improving livability in our neighborhoods. Ideas:
           a. Front Porch Reclamation
           b. Infill Housing (affordable, semi-affordable, market-rate; attached, detached, etc.)
           c. Park Improvements (deferred maintenance, capital improvements, etc.)
    4. Continue to make downtown a top priority, as it must be considered the epicenter for activity
       for all of Muskegon County. Long-term ideas:
           a. Connectivity to lakeshore
           b. Designated parking (structure)
           c. Mix of housing affordability levels
           d. Events/walkability
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          OCTOBER 23, 2018 @ 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 at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, October 23, 2018. Pastor
Darrin Longmire, Forest Park Covenant Church opened the meeting with prayer,
after which the Commission and public recited the Pledge of Allegiance to the
Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:     Mayor Stephen J. Gawron, Commissioners Ken Johnson, Byron
Turnquist, Debra Warren, and Dan Rinsema-Sybenga, City Manager Franklin
Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent:     Vice Mayor Eric Hood and Commissioner Willie German, Jr.
2018-77     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve minutes of the October 8, 2018 Worksession
and October 9, 2018 Regular Meeting Minutes.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
   B. MDEQ Scrap Tire Grant     DPW
SUMMARY OF REQUEST: Authorize staff to partner with Michigan Technological
University to apply for a grant from MDEQ to utilize salvaged materials from
scrap tire rubber. If awarded the proposed grant would provide funding from
MDEQ to utilize scrap tire rubber materials in a 2019 capital construction project.
FINANCIAL IMPACT:        The proposed grant application will be as follows:
$150,000 Match from City of Muskegon
$78,949 Match from Michigan Tech

                                         Page 1 of 5
$228,949 Grant from Michigan DEQ
The selected project would then receive $300,000 in funding and Michigan Tech
would receive the remainder for research and development and to provide
technical assistance during the design and construction of the project.
BUDGET ACTION REQUIRED:         None. If awarded the match money required on
behalf of the City will be taked from a yet to be budgeted FY19-20 capital
project.
STAFF RECOMMENDATION:         Authorize staff to partner with the Michigan
Technological University and pursue a scrap tire grant from the Michigan
Department of Environmental Quality.
   C. State Revolving Fund – Sewer Project Implementation    DPW
SUMMARY OF REQUEST: Authorize staff to enter into engineering service
agreements with three (3) firms to provide comprehensive engineering services
for implementation of the FY2019 State Revolving Fund (SRF) projects.
The Michigan Department of Environmental Quality (MDEQ) has issued a
preliminary announcement awarding the City of Muskegon $7.7 Million in loans
from the SRF to complete a variety of sanitary sewer projects. The loans also
provide for an estimated 75% principal forgiveness by the MDEQ.
Requests for Qualifications to provide comprehensive engineering services were
solicited with eight (8) engineering firms submitting proposals. Proposals were
scored, and the top three (3) scoring firms were contracted to provide pricing
and detailed proposals for selected portions of the FY2019 projects. These
proposals were reviewed and are supported by DPW staff.
FINANCIAL IMPACT:
Prein & Newhoff – Not to Exceed $612,600
ENG Enginerring & Surveying – Not to Exceed $204,825
Fleis & VandenBrink Engineering – Not to Exceed $203,520

BUDGET ACTION REQUIRED:        None. Contract will be funded out of sewer
budget, with full engineering costs to be repaid through the SRF loans.
STAFF RECOMMENDATION:       Authorize staff to enter into engineering service
agreements with Prein & Newhof; ENG Engineering & Surveying; and Fleis and
VandenBrink Engineering.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
            Nays: None
MOTION PASSES

                                        Page 2 of 5
2018-78   PUBLIC HEARINGS:
   A. Request to Establish an Obsolete Property District – 825 W Western Ave
      Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Chart House Energy, LLC has requested the establishment of an
Obsolete Property District for their property at 825 W Western Avenue. The
establishment of the Obsolete Property District would allow them to apply for an
Obsolete Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUITED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the creation of
the district.
PUBLIC HEARING COMMENCED:
Robert Rathsman, 200 Viridian Drive, Owner – addressed the commission
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the creation of the district at 825 W.
Western Avenue.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
            Nays: None
MOTION PASSES
   B. Request to Issue an Obsolete Property Certificate – Chart House Energy,
      LLC – 825 W Western Ave Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Chart House Energy, LLC has requested the issuance of an Obsolete
Property Certificate for their property located at 825 W Western Avenue. Total
capital investment for this project is estimated to be $300,000. The applicant is
eligible for a 10-year abatement because of the amount of investment.
FINANCIAL IMPACT:       If an Obsolete Property Certificate is issued, the
property taxes would be frozen at the pre-rehabilitated rete for the duration of
the certificate.
BUDGET ACTION RECOMMENDED:             None
STAFF RECOMMENDATION:          Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED:
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,

                                         Page 3 of 5
to close the public hearing and approve the Obsolete Property Rehabilitation
Exemption Certificate.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
             Nays: None
MOTION PASSES
2018-79      NEW BUSINESS:
   A. Concurrence with the Housing Board of Appeals Notice and Order to
      Demolish  Public Safety
      556 E. Dale Ave – (in-ground pool only) - REMOVED PER STAFF REQUEST -
      1984 Reynolds Street
      559 McLaughlin Avenue
SUMMARY OF REQEUST: This is to request that the City Commission concur with
the finding s of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days or infraction tickets may be issued. It is further requested that administration
be directed to obtain bids for the demolition of the structures and that the
Mayor and City Clerk be authorized and directed to execute contracts for
demolition with the lowest responsible bidder or staff may issue infraction tickets
to the owner, agent or responsible party if they do not demolish the structure.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to concur with the Housing Board of Appeals to demolish 559 McLaughlin
Avenue.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, and Rinsema-Sybenga
             Nays: None
MOTION PASSES
Motion by Commissioner Warren, second by Commissioner Johnson, to concur
with the Housing Board of Appeals to demolish 1984 Reynolds Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, and Rinsema-Sybenga
             Nays: None
MOTION PASSES



                                          Page 4 of 5
   B. Rezoning Several Properties      Planning & Economic Development
REMOVED PER STAFF REQUEST
   C. Temporary Pension Benefit – Fire        Finance
SUMMARY OF REQUEST: As part of the pending negotiated Fire Union Contract
the City has agreed to open a window for a temporary benefit beginning
November 1, 2018 for two months to allow any member 49 years old or older
with 22 years of service the opportunity to retire early. There are 5 members who
are eligible for this benefit. This benefits the City by replacing personnel who are
at the top of the pay scale and have expensive benefits with entry level
personnel. To open the window the actuarial accrued liability of $427,225 must
be paid. If not all 5 take advantage of the opportunity, the amount paid will
lower our unfunded liability for that union.
FINANCIAL IMPACT:       In September the Commission approved a
supplemental payment to MERS for 2017-18 accrued expenses in excess of billed
in the amount of $111,258 that amount will be used towards the $427,225
payment. The total amount due will be $315,967. This amount will be taken from
the General Fund budget.
BUDGET ACTION REQUIRED:         Adjustment with the 1st Quarter Reforecast.
STAFF RECOMMENDATION:      Authorize staff to sign the temporary benefit
agreement and pay MERS $427,225 for the Fire Union benefit.
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT:       The City Commission meeting adjourned at 6:20 p.m.


                                       Respectfully Submitted,




                                       Ann Marie Meisch, MMC – City Clerk




                                          Page 5 of 5
                Commission Meeting Date: November 13, 2018




Date:        November 8, 2018
To:          Honorable Mayor and City Commissioners
From:        Planning & Economic Development
RE:          Request for Authorization to Sign


SUMMARY OF REQUEST:

Request to authorize Mike Franzak from the Planning Department to sign purchase
agreements and closing documents for property transactions on behalf of the City.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends approval to authorize

COMMITTEE RECOMMENDATION:

None




11/8/2018
                               Resolution ____________



RESOLUTION AUTHORIZING MIKE FRANZAK TO SIGN OFF ON ALL PURCHASE
AGREEMENTS AND CLOSING DOCUMENTS FOR PROPERTY TRANSACTIONS ON
BEHALF OF THE CITY OF MUSKEGON.



Adopted this 13th Day of November, 2018.



                                                By:__________________________

                                                      Stephen J. Gawron, Mayor

                                                ATTEST:______________________

                                                       Ann Meisch, City Clerk



                                      Certification

       This resolution was adopted at a meeting of the City Commission, held on November
13, 2018. The meeting was properly held and noticed pursuant to the Open Meetings Act of
the State of Michigan, Act 267 of the Public Acts of 1976.

                                                CITY OF MUSKEGON



                                           By______________________________

                                                Ann Meisch, City Clerk




11/8/18
        Commission Meeting Date: November 13, 2018

Date:       November 6, 2018
To:         Honorable Mayor and City Commission
From:       Community and Neighborhood Services Dept.
RE:         Purchase of 567 Leonard Avenue


SUMMARY OF REQUEST: To approve the purchase of home located
at 567 Leonard Avenue in Jackson Hill Neighborhood for the price of
$35,000 (Thirty Five Thousand Dollars).
After the sale, CNS will rehabilitate the single family dwelling as part of
the HOME funded Homebuyers Program.
FINANCIAL IMPACT: The funding used for the purchase and
rehabilitation will come from 2018 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request to purchase the
property.
COMMITTEE RECOMMENDATION: None needed
                      MUSKEGON CITY COMMISSION


                RESOLUTION TO APPROVE THE PURCHASE OF
                THE HOME LOCATED AT: 567 LEONARD AVENUE


WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;



WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;



WHEREAS, the City of Muskegon is dedicated                     to   promoting
homeownership throughout its neighborhoods;



NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the purchase of the property at 567 Leonard Avenue by the City
of Muskegon. The Community and Neighborhood Services Department
will rehabilitate a single-family home to sell to a qualified buyer through the
Homebuyers Program.

Adopted this 13th of November, 2018.

Ayes:

Nays:


                            By ______________________________
                               Stephen J. Gawron, Mayor


                            By ______________________________
                               Ann Marie Meisch, MMC City Clerk
AM_Resolution
                 Commission Meeting Date: November 13, 2018



Date:         November 8, 2018
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Set Public Hearing for Amendment to the Downtown
              Development Plan and Tax Increment Financing Plan


SUMMARY OF REQUEST:

To approve the attached resolution setting a public hearing for an amendment to the
Downtown Development (DDA) Plan and Tax Increment Financing (TIF) Plan, and notifying
the taxing jurisdictions of the plan amendment including the opportunity to express their
views and recommendations regarding the proposed amendment at the public hearing. The
proposed amendment is to add certain properties to the tax capture.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the attached resolution and authorize the May and Clerk to sign the resolution.

COMMITTEE RECOMMENDATION:

The Brownfield Redevelopment Authority unanimously approved the proposed amendment
at their October 30 meeting.




                                             1
                                       City of Muskegon
                                 County of Muskegon, Michigan

                   RESOLUTION CALLING PUBLIC HEARING
          REGARDING AMENDMENT TO DOWNTOWN DEVELOPMENT PLAN
                AND TAX INCREMENT FINANCING PLAN OF THE
              MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY


                                             Recitals

        WHEREAS, the City of Muskegon (the "City") is authorized by the provisions of Act

197, Public Acts of Michigan, 1975, as amended ("Act 197"), to create a downtown development

authority and to designate its boundaries; and,

        WHEREAS, pursuant to Act 197, the City Commission of the City duly established the

Muskegon Downtown Development Authority (the "Authority") which exercises its powers

within the Downtown District designated by the City Commission (the "District"); and,

        WHEREAS, the City Commission approved the Authority's Downtown Development

Plan and Tax Increment Finance Plan (the "Plan"), for the Development Area described in the

Plan on July 12, 1988, pursuant to Ordinance No. 969; and,

        WHEREAS, the City Commission approved amendments to the Plan on March 31, 1989,

(the "1989 Amendment") pursuant to Ordinance No. 982, a further amendment to the Plan on

August 28, 2001, pursuant to Ordinance No. 2050; and, a further amendment to the Plan on

November 13, 2001, pursuant to Ordinance No. 2060; and, a further amendment to the Plan on

September 12, 2017 pursuant to Ordinance No. 2375; and

        WHEREAS, the Authority approved a resolution amending the development plan (the

"Plan Amendment") for the purpose of adding certain parcels to the development area to further

encourage economic growth and to correct and prevent deterioration in the business portions of

the District; and,



                                                  2
       WHEREAS, it is necessary to conduct a public hearing in connection with the

consideration of such Plan Amendment as required by Act 197.

       NOW, THEREFORE, BE IT RESOLVED THAT:

       1.      The City Commission determines that it is necessary for the best interests of the

public to amend the development plan of the Authority pursuant to Act 197 in order to correct

and prevent deterioration of property value in the business district in the City and to promote

economic growth. The City Commission hereby declares its intention to adopt the Plan

Amendment.

       2.      There shall be a public hearing on Tuesday, the 11th day of December, 2018, at

5:30 o'clock, p.m., prevailing Eastern Time, in the Muskegon City Hall to consider adoption by

the City Commission of an ordinance amending the Authority boundaries.

       3.      The City Clerk shall cause notice of said public hearing to be published in the

Muskegon Chronicle, a newspaper of general circulation in the City, twice before the public

hearing, the first of which shall not be less than 20 days nor more than 40 days before the date

set for the hearing. The notice shall be published as a display advertisement, prominent in size.

The Clerk shall cause the notice to be mailed by first class mail not less than 20 days prior to the

hearing to all property taxpayers of record in the District, as shown by the most recent tax roll of

the City. Further, the Clerk, shall cause the notice to be mailed by certified mail to the governing

body of each taxing jurisdiction levying taxes subject to capture by the Authority, and shall cause

the notice to be posted in 20 prominent places in the proposed amended district not less than 20

days prior to the date of hearing.

       4.      The notice of the hearing shall be in substantially the following form:




                                                 3
                              NOTICE OF PUBLIC HEARING

                               CITY OF MUSKEGON
                          COUNTY OF MUSKEGON, MICHIGAN

            AN AMENDMENT TO THE DOWNTOWN DEVELOPMENT PLAN
                   AND TAX INCREMENT FINANCING PLAN OF
             THE MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY

TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON:

        PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Michigan,
will hold a public hearing on Tuesday, the 11th day of December, 2018, at 5:30 o'clock, p.m.,
prevailing Eastern Time in the City Commission Chambers, 933 Terrace Street, Muskegon,
Michigan, to consider the adoption of an ordinance amending the development plan of the
Downtown Development Plan and Tax Increment Finance Plan of the Muskegon Downtown
Development Authority pursuant to Act 197 of the Public Acts of Michigan of 1975.

       The boundaries of the development area to which the Plan applies are as follows:

              All of those properties lying SEly of Muskegon Lake and NWly of the following
              Streets in the City of Muskegon: Beg at Muskegon Lake and extension of
              Southern Avenue SEly to Lakeshore Drive NEly to Michigan Avenue, Ely a
              distance of three blocks to Hudson Street, Sly one block to Washington Avenue,
              Ely on Washington three blocks to Beidler St., Nly to Webster Avenue, NEly
              along Webster to Ninth Street, SEly on Ninth to Muskegon Avenue, NEly on
              Muskegon Avenue a distance of four blocks to Fifth Street, SEly on Fifth to
              Houston Avenue, NEly on Houston to Fourth Street, SEly on Fourth to Strong
              Avenue, NEly on Strong one block to Jefferson Street, Nly on Jefferson to
              Houston Avenue, Ely on Houston to Peck Street, Nly on Peck to Apple Avenue,
              Ely on Apple to Fork Street, Nly on Fork to Myrtle, NEly to Emerald Avenue,
              NWly on Emerald to Eastern Avenue, Wly on Eastern to EB Seaway Drive, NEly
              on EB Seaway to Bayou, NWly on Bayou to WB Seaway Drive, NEly to S
              branch of Muskegon River, NWly to Ottawa Street, SWly on Ottawa to River
              Street, Wly to Muskegon Lake EXCEPT the property commonly known as the
              former Teledyne Continental Motors site.

        The proposed ordinance to amend the Downtown Development Plan and the Tax
Increment Financing Plan of the Muskegon Downtown Development Authority (the "Plan") will
will add to the Plan the property generally described in Exhibit A.

        The proposed ordinance to amend the Downtown Development Plan and Tax Increment
Financing Plan of the Muskegon Downtown Development Authority (the "Plan") will be revised
to read as follows:




                                               4
       Copies of the proposed amendments to the Development and Tax Increment Finance
Plan, maps, etc., are on file at the office of the City Clerk for inspection.

        At the public hearing, all citizens, taxpayers, and property owners of the City of
Muskegon desiring to address the City Commission shall be afforded an opportunity to be heard
in regard to the approval of the amendments to the Development and Tax Increment Finance
Plan for the Muskegon Downtown Development Authority.

       FURTHER INFORMATION may be obtained from the City Clerk at (231) 724-6705.

       This notice is given by order of the City Commission of the City of Muskegon, Michigan.

                                                         CITY OF MUSKEGON

                                                         By__________________________
                                                         Ann Marie Meisch
                                                         City Clerk




                                              5
        5.     The City administration shall provide reasonable opportunities to the taxing

jurisdictions levying taxes subject to capture to meet with the City Commission.

        6.     All resolutions and parts of resolutions insofar as they conflict with the provisions

of this resolution be and the same hereby are rescinded.


AYES:          Members _________________________________________________________

_____________________________________________________________________________

NAYS:          Members _________________________________________________________

RESOLUTION DECLARED ADOPTED.



                                                             CITY OF MUSKEGON

                                                             By__________________________
                                                             Ann Marie Meisch
                                                             City Clerk

        I hereby certify that the foregoing is a true and complete copy of a resolution adopted by

the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a

regular meeting held on November 13, 2018, and that said meeting was conducted and public

notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act,

being Act 267, Public Acts of Michigan, 1976, as amended, and that the minutes of said meeting

were kept and will be or have been made available as required by said Act.

                                                             ______________________________
                                                             Ann Marie Meisch
                                                             City Clerk




                                                 6
           EXHIBIT A
PROPERTY TO BE ADDED TO THE PLAN




               7
8
Date:     November 13th, 2018

To:       Honorable Mayor and City Commissioners

From:     Department of Public Works

RE:       State Revolving Fund – Sewer Project Administration Assistance


SUMMARY OF REQUEST:

Authorize staff to extend the existing engineering services agreement with Prein &
Newhof to provide administrative assistance during the implementation of the State
Revolving Fund (SRF) sewer projects in 2019 and 2020.

Prein & Newhof completed the preliminary plan for sewer upgrades that resulted in
funding through the MDEQ for approximately $7.7M in sewer upgrade projects for 2019
and 2020. Staff would like to retain Prein & Newhof’s services to assist in the
administration and oversight of these projects to ensure compliance with MDEQ
requirements and successful implementation of the projects.

FINANCIAL IMPACT:

$10,000

BUDGET ACTION REQUIRED:

Allocate an additional $10,000 to the already existing engineering services agreement.
This will be addressed in the 1st Quarter Reforecast.

STAFF RECOMMENDATION:

Authorize staff to extend the existing engineering service agreement with Prein & Newhof.
Date:        November 7, 2018
To:          Honorable Mayor and City Commissioners
From:        Jim Maurer, IT Director
RE:          Replacement of Storage Area Network (SAN)


SUMMARY OF REQUEST: Currently, we have a Storage Area Network (SAN)
array that holds 50 virtualized servers covering all City functions. The industry
standard is to replace such critical SAN units every five years; currently, we are
approaching year seven.

We have spent months meeting with multiple vendors reviewing products and
associated quotes. We are recommending the Tegile array proposal for the City of
Muskegon. Of the three submitted, Tegile came in at the lowest price and provides
the best long-term value in features and performance.

Tegile units are also used in the Muskegon Central Dispatch datacenter and having
the same technology is beneficial to both.



FINANCIAL IMPACT: $49,766.02



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approve the Tegile quote for $49,766.02
                Commission Meeting Date: November 13, 2018



Date:         November 8, 2018
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Rezoning Several Properties


SUMMARY OF REQUEST:

Staff initiated request to rezone 372, 380, 388, 394, 398, 406, 414 Houston Ave; and 1148 6th St
from R-3, High-Density Single-Family Residential to Form Based Code, Urban Residential to allow
for more housing options.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends approval of the rezonings.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the rezonings (plus the rezonings of
      1246, 1252 and 1258 5th St) by a 7-1 vote, with one member absent, at the October 4
      Special Planning Commission meeting. Staff has recently recommended to remove
      1246, 1252 and 1258 5th St from the request due to comments from the public.




                                                                                              1
Planning Commission packet excerpt:

       SUMMARY
           1. Staff is proposing the following rezonings from dense single-family residential to
              Form Based Code, Urban Residential. This would allow for more building types;
              including rowhouses, duplexes and small multi-plexes (3-6) units.
           2. Community EnCompass would like to build a new four-unit home on the vacant lot
              at 380 Houston Ave. This lot previously held a four-unit home before it was
              destroyed in a fire. Half of this block is already zoned FBC, UR and hosts several
              large homes. This block could adequately support larger homes with the large alley
              and lots that could support multiple cars parking in the rear.
           3. Community EnCompass also has developed plans to build attached homes on the
              three lots at 1246-1258 5th St, which are owned by the City and County.
           4. Please see the enclosed sections of the Form Based Code, including the Urban
              Residential Context Area and the associated housing types that are allowed.
           5. Please see the enclosed letter of support (for the 1246,1252 and 1258 5th St
              properties) from the Nelson Neighborhood Improvement Association.
           6. This request was tabled at the August 16 Planning Commission meeting. Staff
              delivered a presentation at the September 19 Nelson Neighborhood Improvement
              Association meeting. Many in attendance were not supportive of additional attached
              units in the neighborhood.

           NELSON NEIGHBORHOOD HOUSING STATS

           Below is an overview of the housing types in Nelson Neighborhood, according to the
           2015 Target Marker Analysis. These are measured by units, not individual buildings.
           Example: 350 duplex units would indicate there are 150 duplex structures.

              Rent/Own

                  •   Renter Occupied: 2,058 (53%)
                  •   Owner Occupied: 1,792 (46.5%)

              Housing Units by Total Units in the Structure

                  •   Single Family, detached: 947 (46.7%)
                  •   Duplex: 350 (17.3%)
                  •   3-4 Units: 204 (10%)
                  •   5-9 Units: 67 (3.3%)
                  •   10-19 Units: 18 (0.9%)
                  •   20-49 Units: 74 (3.6%)
                  •   50 or more: 314 (15.5%)




                                                                                              2
                               HOUSING STATS MAP

Green = Single-Family Rental   Blue = Duplex   Purple = Small Multi-Plex   Yellow=
Large Multi-Plex




                                                                                     3
This map was prepared in 2017 with statistics gathered by staff from analyzing assessment records
                                            in BS&A

                                   1246, 1252, 1258 5th St




                  380 Houston Ave (Community EnCompass Property)




                                                                                                4
Existing Homes in the same block as 380 Houston Ave




                   Zoning Map




                                                      5
Aerial Map (Please note the map is outdated. All parcels at 1246, 1252 and 1258 5th St
                                  are now vacant)




                          Size Standards by Housing Type




                                                                                     6
                            Community EnCompass Proposals

Below are renderings for the two Community EnCompass projects. Please keep in mind
that this is not a site plan review and other housing types could be placed on these lots in the
event the rezonings are approved.




                                                                                              7
STAFF RECOMMENDATION

Staff recommends approval of the request because it follows the recommendations of all of
the recent planning efforts, including the Master Plan, Imagine Muskegon and the
Downtown and Lakeshore Redevelopment Plan, as noted below. Also, the housing types
allowed in the Form Based Code match what is recommended in the Target Market
Analysis. Explanations of how this request relates to these plans/studies are in red.

1997 Master Land Use Plan
   • Zoning regulations associated with the conversion of single-family homes to
      multiple-family use should contain standards ensuring that converted dwellings have
      sufficient on-site parking, suitable locations for trash receptacles which are
      customarily stored out of doors, sufficient yard/play areas, and exterior façade
      controls.

       Form Based Code requires duplexes and small multiplexes to be built to certain
       standards, so the chance of converting an existing single-family home to multi-
       family is extremely low. Form Based Code will also require all homes to be built on
       appropriate sized lots (see the “Size Standards by Housing Type” chart). Form
       Based Code also has more stringent design standards, which match the design types
       of existing homes in the neighborhood. The code also encourages alley usage for
       cars and trash receptacles.

   •   Promote ongoing housing in-fill programs. As part of the in-fill effort, work with
       area builders to determine possible joint public/private partnerships for the
       construction of affordable housing.

       Form Based Code allows for a wide selection of unit sizes and price points. It will
       also ensure that infill development is built to the scale of the existing neighborhood.

2003 Imagine Muskegon Plan
   • Downtown should be designed to accommodate various age groups, socio-economic
       backgrounds, and cultural and racial heritage.

       The 2015 Target Market Analysis states that a majority of these types of target
       markets are looking to locate in attached units, which could be achieved through
       Form Based Code. Single-family housing, which limits housing options, is the only
       legal conforming use is R-1, R-2 and R-3 districts, which is the majority of Nelson
       neighborhood.

   •   A mix of housing opportunities that provide choices to a wide range of people,
       including high-quality, affordable apartments, condominiums, cottages, and single-
       family homes.

       Single-family zoning dominates the Nelson Neighborhood. Large apartment
       buildings are starting to become popular downtown. However, we have a lack of
       “missing middle” housing, which can be achieved through Form Based Code.

2008 Downtown and Lakeshore Redevelopment Plan
   • Context sensitive architecture will reflect the character of existing buildings.
   • Amend the zoning ordinance to provide standards regulating architecture, site

                                                                                            8
       utilization, landscaping, window coverage, pedestrian amenities, and building form,
       so new buildings integrate well with existing structures.

       Form Based Code requires stringent design guidelines that were created to fit in with
       the existing scale and architecture of the neighborhood.


2015 Target Market Analysis
    • By a conservative estimate, Nelson neighborhood could support 110 attached units
       per year over the next 5 years. Compared to only 8 to 10 single family homes.
    • Almost 70% of the target markets identified are seeking attached units.

    We see that there is a demand for attached units, which could be met through Form
    Based Code. There are currently only 23 vacant lots in the Nelson neighborhood that
    would allow for “missing middle” housing types. See map below.




During the workshops for the creation of the Form Based Code, attendees were asked to
prioritize the following goals. The top two selected relate to the current rezoning request.

            1. Facilitating higher density development/adding new residents to the
                downtown
            2. Fostering economic development/building the tax base for the city.
            3. Balancing transportation modes/enhancing choices (i.e. walk, bike, transit,
                vehicle)
            4. Providing access to businesses, community attractions, and schools
            5. Supporting transit ridership through available parking (park n’ ride)
            6. Providing ample and affordable parking
                                                                                        9
                                CITY OF MUSKEGON

                             MUSKEGON COUNTY, MICHIGAN

                                 ORDINANCE NO.

An ordinance to amend the zoning map of the City to provide for a zone change for 372, 380,
   388, 394, 398, 406 and 414 Houston Ave; and 1148 6th St to Form Based Code, Urban
                                      Residential.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

The zoning map of the City of Muskegon is hereby amended to change the zoning for several
properties to Form Based Code, Urban Residential.


This ordinance adopted:

Ayes:

Nayes:

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                                  CITY OF MUSKEGON

                                                  By: __________________________
                                                         Ann Meisch, MMC
                                                         City Clerk




                                                                                            10
 CERTIFICATE (Rezoning of 372, 380, 388, 394, 398, 406 and 414 Houston Ave; and 1148 6th St
                        to Form Based Code, Urban Residential)

The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 13th day of November, 2018, at which meeting a quorum was present and
remained throughout, and that the original of said ordinance is on file in the records of the City of
Muskegon. I further certify that the meeting was conducted and public notice was given pursuant
to and in full compliance with the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33
of 2006, and that minutes were kept and will be or have been made available as required thereby.

DATED: ___________________, 2018             ________________________________
                                             Ann Meisch, MMC
                                             Clerk, City of Muskegon



Publish:       Notice of Adoption to be published once within ten (10) days of final adoption.




                                                                                                  11
                                             CITY OF MUSKEGON
                                            NOTICE OF ADOPTION

Please take notice that on November 13, 2018, the City Commission of the City of Muskegon
adopted an ordinance amending the zoning map to provide for the change of zoning for 372, 380,
388, 394, 398, 406 and 414 Houston Ave; and 1148 6th St to Form Based Code, Urban Residential.

Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City
Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.

         This ordinance amendment is effective ten days from the date of this publication.

Published ____________________, 2018                           CITY OF MUSKEGON

                                                               By ___________________________
                                                                     Ann Meisch, MMC
                                                                     City Clerk

---------------------------------------------------------------------------------------------------------------------

PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.

Account No. 101-80400-5354




                                                                                                                        12
COMMISSION MEETING DATE November 13, 2018




Date:         November 8, 2018

To:           Honorable Mayor and City Commissioners

From:         Jeffrey Lewis, Director of Public Safety
RE:      Parking Restrictions December 1 – April 1
_______________________________________________________

SUMMARY OF REQUEST:

The Director of Public Safety requests that the Commission approve the changes for Chapter
92, L09 of the ordinance regarding the snow emergency parking between December 1 and
April 1.

•   Parking will be allowed between 5:00am and 5:00pm on odd or even calendars days
    based on the odd and even numbered street addresses.
•   Between 5:00pm and 5:00am parking will be allowed on both sides of the street.
•   Where parking is currently allowed only on one side of the street, parking is allowed,
    except between the hours of 2:00am – 6:00am.
•   On Western Avenue, between 7th Street and Terrace Street, parking is allowed except
    between the hours of 2:00am and 6:00am.
•   All signed parking restrictions apply all days of the week.
•   This section applies to every portion of every block of every city street.


FINANCIAL IMPACT:

None



BUDGET ACTION REQUIRED:

None



STAFF RECOMMENDATION:

Staff recommends approval of the Parking Restrictions changes to the Code of Ordinances.
                                     City of Muskegon
                                Muskegon County, Michigan
                              Ordinance Amendment No. _____


THE CITY OF MUSKEGON HEREBY ORDAINS:


Chapter 92 “Traffic and Vehicles,” Article V “Local Parking Restrictions,” Section 92-71
“Parking Restrictions,” of the Code of Ordinances of the City of Muskegon is amended as
follows:

(L09) From December 1 through April 1 of each year and during any declared snow
emergency, where parking is currently allowed on both sides of the street, on street parking is
modified as follows. Parking is allowed on the side of the street with even numbered addresses
on even numbered calendar days between the hours of 5:00 a.m. and 5:00 p.m. Parking is
allowed on the side of the street with odd numbered addresses on odd numbered calendar days
between the hours of 5:00 a.m. and 5:00 p.m. Parking is allowed on both sides of the street all
days between the hours of 5:00 p.m. and 5:00 a.m. Where parking is currently allowed on one
side of the street only, parking is allowed except between the hours of 2:00 a.m. and 6:00 a.m.
On Western Avenue, between 7th Street and Terrace Street, parking is allowed except between
the hours of 2:00 a.m. and 6:00 a.m. All signed parking restrictions apply all days of the week.
This section applies to every portion of every block of every city street.

This ordinance adopted:


       Ayes: ______________________________________________________________
       Nays: _______________________________________________________________


Adoption Date: _________________________
Effective Date: _________________________
First Reading: _________________________
Second Reading: ________________________


                                                   CITY OF MUSKEGON


                                                   By ______________________________
                                                      Ann Meisch, MMC
                                                      City Clerk
                                        CERTIFICATE

      The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the          day of                      , 2018, at which meeting a quorum
was present and remained throughout, and that the original of said ordinance is on file in the
records of the City of Muskegon. I further certify that the meeting was conducted, and public
notice was given, pursuant to and in full compliance with Act No. 267, Public Acts of Michigan
of 1976, as amended, and that minutes were kept and will be or have been made available as
required thereby.


DATED:                    , 2018


                                       _______________________________________
                                       Ann Meisch, MMC
                                       Clerk, City of Muskegon

Publish:     Notice of Adoption to be published once within ten (10) days of final adoption.
                                          CITY OF MUSKEGON
                                         NOTICE OF ADOPTION

TO: ALL PERSONS INTERESTED

        Please take notice that on ___________________, 2018, the City Commission of the City
of Muskegon adopted an amendment to Chapter 92 “Traffic and Vehicles,” Article II “Uniform
Traffic Code,” Section 92-33 “Changes in code,” Section 8.10 “Stopping, standing or parking
vehicles; violations as civil infraction” of the Code of Ordinances of the City of Muskegon,
whereby the following change was made:

         Section (y) was added, to prohibit parking vehicles on unimproved areas of the side or
         front yards of residential lots.



        Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business
hours.

         This ordinance amendment is effective ten (10) days from the date of this publication.


                                                               CITY OF MUSKEGON

Published: _________________, 2018                    By:      ______________________________
                                                               Ann Meisch, MMC, Its Clerk


------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
Date:         November 13, 2018
To:           Honorable Mayor and City Commissioners
From:         City Manager
RE:           Disposition of 1021 Jefferson Street


SUMMARY OF REQUEST: Staff has received multiple purchase offers and development
proposals for the city-owned employee parking lot on the corner of Apple and Jefferson.
Staff is seeking permission to execute a Letter of Intent to sell 1021 Jefferson Street to
General Capital in anticipation of constructing a 73-unit housing development focused on
providing quality workforce housing.



FINANCIAL IMPACT:



BUDGET ACTION REQUIRED:



STAFF RECOMMENDATION: Staff recommends approval of the request.
PROPOSAL TO PURCHASE
   CITY PROPERTY

     1021 Jefferson Street
        Muskegon, MI


         November 8, 2018




                                             Submitted by:
                                                Josh Hafron
                                              414-228-3518
                             joshua@generalcapitalgroup.com
 


 
 
 
 
 
November 8, 2018 
 
 
VIA E‐MAIL: mike.franzak@shorelinecity.com 
 
Mr. Mike Franzak 
City of Muskegon 
Planning & Economic Development Department 
933 Terrace Street  
Muskegon, MI 49443‐0536 
 
 
RE:   General Capital Letter of Intent to Purchase City Property 
         1021 Jefferson Street 
         Muskegon, MI  
 
 
Dear Mike, 
 
General  Capital  is  excited  about  the  potential  to  pursue  a  second  high  quality  affordable  housing 
development in Downtown Muskegon.  Our Berkshire – Muskegon property is enjoying 100% occupancy 
and our residents are enjoying all the benefits of living Downtown.   We are very interested in pursuing a 
second development on the City property located at 1021 Jefferson Street (southwest corner of Apple 
Avenue and Jefferson Street).  The attached Letter of Intent expresses our interest in pursuing a purchase 
agreement with the City to allow us to pursue an allocation of affordable housing tax credits in the April 
2019  round.      The  attached  package  includes  our  Letter  of  Intent,  a  set  of  preliminary  concepts  we 
developed for the site as well as some additional background on General Capital.  
 
We propose to develop a 73‐unit “workforce” housing development built to meet the requirements of 
Muskegon’s Form Based Code.  We are very pleased with the physical design of our Berkshire – Muskegon 
project and look forward to developing another high quality  infill project in  the Downtown area.   Our 
Muskegon‐based  architects,  Hooker  DeJong,  understand  Muskegon’s  Form  Based  Code  and  are  well 
versed in producing high quality urban infill projects.   They have produced a schematic concept for the 
Jefferson site to demonstrate our team’s understanding of the property in its Downtown context. 
 
The building is designed with its primary orientation toward the corner of Apple Avenue and Jefferson 
Street.  The building is an “L” shape with primary commercial frontage on Apple Avenue and elevated 
residential “podium” along Jefferson Street.   The ground floor  facing Apple will include approximately 
2,300 SF of commercial space as well as our main leasing office at the hard corner.  The building is designed 
with minimal setback from the corner, to appropriately reinforce the street edge.  Similar to our design 
for the Berkshire, the primary commercial space is “at grade” on the street side and elevated the required 
42” along the residential frontage.   This allows the building to include convenient underground parking 
(59 spaces) and to screen surface parking behind and to the west of the building (43 spaces).  The design 
includes a total of 102 parking spaces.  We are also including a secure bike storage area in the basement 
to provide secure bike parking and service area.  We also understand the City’s desire to accommodate 
City and County employee parking on this property.  We are willing to work out a long‐term arrangement 
to meet this need (for example shared daytime surface parking).  In addition, we are willing to work with 
the City to produce a more “parking intensive” scheme with structured parking if the City is willing to 
assist with funding of this type of project.  
 
The building is programmed to include 73 units, including 55 1‐bedroom units and 18 2‐bedroom units.  
We understand the City’s desire to produce a “mixed income” development, however, affordable housing 
tax credit pricing has fallen significantly since we financed the Berkshire – Muskegon and as a result, we 
are not able to include any pure market rate units at this point.  It is also worth noting that the IRS has not 
provided adequate guidance regarding 80% units to provide comfort to credit buyers, thus 80% units are 
very difficult to finance.  We continue to discuss the ideal unit mix with industry investors, lawyers and 
accountants.   
 
Our proposed Area Median Income (“AMI”) mix is as follows:   
 
         10 units at 30%           (13.7% of total units) – 1 BR rents at $260 
         9 units at 40%            (12.3% of total units) – 1 BR rents at $371 and 2 BR rents at $444 
         11 Section 811 Units*   (15.1%) ‐ 1 BR rents at $482      
         14 Units at 60%           (19.2%) ‐ 1 BR rents at $594 
         29 Units at 80%           (39.7%) ‐ 1 BR rents at $817 and 2 BR rents at $978 
 
         *Meeting criteria as mentally challenged and permanently disabled  
 
In  total,  approximately  59%  of  the  units  will  be  for  residents  earning  above  60%  of  the  Area  Median 
Income.    The  30%,  40%  and  Section  811  units  are  required  to  score  points  to  create  a  competitive 
application.  The property will serve the true “middle market” currently underserved in Muskegon.  Our 
properties typically attract residents who are from the immediate area and are currently working in the 
vicinity.  This centrally located site is perfect for residents to take advantage of Downtown Muskegon – 
our residents will walk, shop and support local businesses.   
 
Included  in  this  package  is  a  Letter  of  Intent  that  offers  to  purchase  the  site  at  1021  Jefferson  for 
$455,000.  In addition to a signed purchase contract to include in our application, General Capital will 
need the following from the City to produce the strongest application possible: 
 
     1.  PILOT/MSA Agreement – This will help score points and create an economically feasible project 
           
     2. Letter and Support Resolution from City that describes how project is helping to economically 
          revitalize downtown Muskegon 
 
     3. Site Plan Approval – Letter that states the site plan is approved by the City and no further action 
          is needed from any elected body for site plan approval.  As stated earlier, we look forward to 
          working on another project using Muskegon’s Form Based Code. 
           
           
           
        
    4. Zoning Approval – Letter that states zoning is in place to support the proposed project. 
 
 
Applications for MSHDA’s next round are due at the beginning of April and award announcements are 
expected in early July.  General Capital would endeavor to close on the site by Year End 2019 and open 
the doors to residents in early 2021. 
 
Muskegon  should  be  familiar  with  our  track  record.    We  are  good  partners  and  produce  high  quality 
results.  We don’t use a standard building prototype, rather we work closely with local stakeholders to 
produce authentic projects with long term value.  We would be excited to work with the City of Muskegon 
to  develop  the  underutilized  parking  lot  at  1021  Jefferson  Street.    We  look  forward  to  discussing  our 
proposal with you. 
 
Please don’t hesitate to contact me with any questions regarding our proposal.  My direct line is 414‐
228‐3518.    
 
 
Sincerely, 
General Capital Group 
 
 
 
 
Josh Hafron 
 
 
 
LETTER OF INTENT
 


 
 
 
 
 
November 8, 2018 
 
 
VIA E‐MAIL: mike.franzak@shorelinecity.com 
 
Mr. Mike Franzak 
City of Muskegon 
Planning & Economic Development Department 
933 Terrace Street  
Muskegon, MI 49443‐0536 
 
 
RE:   LETTER OF INTENT 
         1021 Jefferson Street 
         Muskegon, MI  
 
 
Dear Mike, 
 
This letter constitutes the undersigned’s proposal to purchase the above referenced property from the 
City of Muskegon.  This letter expresses a preliminary and non‐binding intent only, and as such, is intended 
not as an agreement, but merely as a focus for negotiations.  Except as otherwise specifically stated in 
Section 12 (Exclusivity) below, no agreement with respect to the subject matter of this letter exists or shall 
exist unless and until a Contract (defined below), as contemplated by this letter, is entered. 
 
    1. Purchaser:  General Capital Acquisitions, LLC (“Purchaser”), an affiliate of General Capital Group, 
         or a nominee controlled by it, or its assignee.   
          
         The “Property” consists of the following:  Fee simple interest in the Real Property and Land (“Real 
         Property) located at 1021 Jefferson Street, Muskegon, Michigan 
          
    2. Price:  The  total  Purchase  Price  for  the  Property  shall  be  Four  Hundred  Fifty‐Five  Thousand 
         ($455,000).   The Purchase Price shall be paid at Closing (defined below) in immediately available 
         funds subject to adjustment for pro‐rations which are usual and customary in the local area for 
         real estate investments of this type and size.  
 
    3. Purchase Agreement:  The transaction is subject to negotiation and execution of a purchase and 
         sale agreement (the "Contract") in form and substance satisfactory to both parties.  The Contract 
         will set forth the terms contained herein, as well as all obligations of the parties, including, such 
         representations and warranties, covenants and other provisions as are customary for transactions 
         of this nature.  Purchaser’s attorney shall prepare the initial draft of the Contract and Purchaser 
       shall deliver  the Contract  to Seller within fifteen  (15)  business  days after full execution of this 
       Letter of Intent.  
        
    4. Earnest Money Deposit: Within two business days following the date upon which the Contract is 
       fully  executed  (the  “Contract  Date”),  Purchaser  will  deposit  $20,000  with  the  Cinnaire  Title 
       Services  (“Escrow  Holder”)  for  deposit  into  a  joint  order  escrow  account  (the  "Earnest  Money 
       Deposit"). The Earnest Money Deposit shall be invested by Escrow Holder in an interest‐bearing 
       account as directed by Purchaser with all interest accruing thereon paid to Purchaser and shall be 
       applied toward the Purchase Price at Closing.     The balance of the Earnest Money Deposit escrow 
       shall  become  non‐refundable  and  shall  be  payable  to  the  Seller  with  no  contingencies  after 
       expiration  of  the  last  to  expire  of  the  Due  Diligence  Period,  Financing  Contingency  Period  and 
       Required  Approval  Contingency  Period  (each  as  specifically  defined  below;  collectively  the 
       “Contingency Periods”).  
 
    5. Due Diligence Period:  Purchaser shall until November 30, 2019 to conduct an inspection of the 
       Property (the “Due Diligence Period”). During the Due Diligence Period, Purchaser shall have the 
       right to inspect the Property and perform studies with respect to the condition of the Property, 
       including, without limitation, structural, mechanical and environmental studies and investigations 
       into regulatory, title, lease, tenant, operations, insurance premiums and other matters deemed 
       relevant by Purchaser.  If, after such investigation, Purchaser, in its sole discretion, determines 
       that the Property is not satisfactory to Purchaser for any reason, Purchaser may terminate the 
       Contract by written notice to Seller delivered prior to the expiration of the Due Diligence Period 
       in which event the Earnest Money Deposit, together with all interest earned thereon, shall be 
       returned to Purchaser.  Seller will grant access upon reasonable notice and at reasonable times, 
       to Purchaser and its representatives, agents, employees, independent contractors, consultants, 
       engineers, architects, accountants and contractors to perform such tests and studies as Purchaser 
       deems necessary during the Due Diligence Period. 
        
    6. Financing: Buyer shall have until November 30, 2019 to procure mortgage financing, Low Income 
       Housing Tax Credits (“LIHTC”) and additional project subsidy acceptable to Purchaser in its sole 
       discretion (the “Financing Contingency Period”).    The Purchaser intends to make application for 
       2019 LIHTC.  A full application will be made to WHEDA by the end of December 2018.  Awards are 
       expected  to  be  announced  in  March  of  2018.    If,  prior  to  the  expiration  of  the  Financing 
       Contingency  Period, Purchaser notifies  Seller  that it  is unable to  procure acceptable financing, 
       Purchaser  will  terminate  the  Contract  by  written  notice  to  Seller  in  which  event  the  Earnest 
       Money  Deposit,  together  with  all  interest  earned  thereon,  shall  be  returned  to  Purchaser.  
       Purchaser will notify Seller if transaction becomes untenable for any reason.   
 
    7. Required Approvals:  Purchaser shall have until November 30, 2019  to procure approvals from 
       any federal, state or municipal governmental department or agency whose approval is necessary 
       for the contemplated transaction to occur (the “Required Approval Contingency Period”).   Seller 
       shall reasonably cooperate with Purchaser in connection with the procurement of the approvals.  
       Provided Purchaser makes timely application for all required approvals, and in good faith pursues 
       all required approvals Purchaser shall have right to extend Required Approval Contingency Period 
       for  up  to  an  additional  thirty  (30)  days.    If,  prior  to  the  expiration  of  the  Required  Approval 
       Contingency Period, Purchaser notifies Seller that it is unable to procure all applicable approvals, 
       Purchaser  may  terminate  the  Contract  by  written  notice  to  Seller  in  which  event  the  Earnest 
        Money Deposit, together with all interest earned thereon, shall be returned to Purchaser.  The 
        Contract will require Seller to follow any governmental requirements for transferring title. 
     
    8. Closing:  Transfer of title to Purchaser (the “Closing”) shall be by general warranty deed and 
        shall occur no later than ninety days (90) days following the expiration of the last Contingency 
        Period to expire.  The Closing shall take place at the offices of Escrow Holder, Chicago Title 
        Insurance.  Seller shall deliver copies of all proposed closing documents at least 20 days prior to 
        Closing for Purchaser’s review.  
         
    9. Title:  Within 20 days after the Contract Date, Seller will deliver to Purchaser, a title insurance 
        commitment (the “Title Commitment”) issued by Escrow Holder and, at the Closing, a standard 
        ALTA Form B Owner’s Title Insurance Policy in the amount of the Purchase Price, showing fee 
        simple title to the Real Property in Purchaser, free and clear of all encumbrances, except those 
        agreed to in writing by Purchaser, containing “extended coverage” over all general exceptions 
        and including, without limitation, a 3.1 zoning endorsement, contiguity and access endorsement 
        and any other endorsements reasonably requested by Purchaser.  All endorsements are at 
        Purchaser’s expense.  Together with the Title Commitment, Seller shall deliver to Purchaser 
        copies of all underlying title documents referenced therein.  Purchaser may obtain, at 
        Purchaser’s expense,  an updated ALTA survey to 2011 Minimum Standard Detail Requirements 
        for ALTA/ACSM Land Title Surveys, jointly established and adopted by the American Land Title 
        Association and National Society of Professional Surveyors on February 23, 2011 reflecting no 
        encroachments of any of the improvements located on the Real Property onto any adjacent 
        property, easements or rights of way, and which survey will be sufficient to cause the title 
        company to issue the required owner’s title policy free of any exceptions for survey matters. 
        Seller shall pay the title insurance premium, including the cost of a GAP Endorsement and 
        Purchaser shall pay for the premiums for any additional endorsements and any lender’s policy 
        required by Purchaser.  The issuance of an ALTA extended coverage policy of title insurance shall 
        be a condition of Purchaser’s obligation to close. 
         
    10. Conduct of Business:  During the period from the Contract Date to the Closing:  (a) the Property 
        shall be operated by Seller, in all material respects, in accordance with all applicable laws, rules 
        and regulations and in a manner consistent with past customs and practices; (b) Seller will not 
        enter into any transaction or lease other than in the ordinary course of business without the prior 
        approval of the Purchaser. 
         
    11. Exclusivity.  Seller agrees that for a period of 45 days from the date of the acceptance of this Letter 
        of Intent, Seller will not negotiate terms for, nor solicit a possible sale of the Property with any 
        other  party  or  provide  any  information  regarding  the  Property  to  any  other  party.    Seller  and 
        Purchaser  agree  to  negotiate  in  good‐faith  the  terms  of  the  Contract  and,  to  the  extent  the 
        Contract  is  executed,  Seller  will  not  solicit  a  possible  sale  of  all  or  any  part  of  the  Property  or 
        provide  any  information  regarding  the  Property  to  any  third  party  during  the  period  of  the 
        Contract.    The  specific  agreements  of  Seller  under  this  Section  11  shall  be  enforceable 
        notwithstanding the general non‐binding nature of this letter of intent.   
 
    12. Brokerage Agreements.  Neither Purchaser or Seller  has engaged a broker in this transaction.  
        Seller and Purchaser will indemnify each other against any claims from any broker claiming to be 
        involved with this transaction. 
         
        13. Binding Nature.  This letter reflects the understandings and agreements of Seller and Purchaser 
            in principle but is expressly understood that this letter of intent is not intended to constitute a 
            complete  statement  of  terms  or  a  legally  binding  or  enforceable  agreement  of  Seller  and 
            Purchaser.    Seller  and  Purchaser  acknowledge  that  they  have  not  attempted  to  include  all 
            essential terms of the transaction contemplated hereby and that such essential terms are subject 
            to further negotiations.  It shall remain in the sole discretion of each party whether to enter into 
            the Contract and neither party has any liability for failing to do so. 
             
        14. Expiration.    Purchaser’s  proposal  contained  in  this  letter  shall  remain  valid  until  5p.m.  Central 
            Standard Time on November 26, 2018 at which time this proposal shall be null and void. 
 
 
 
                                                          General Capital Acquisitions, LLC 
                                                           
                                                          By: ___________________________ 
                                                                  
                                                          Its: Authorized Agent                          
                                                           
                                                           
                                                           
                                                  
ACCEPTED AND AGREED TO THIS 
_____ DAY OF _____________, 2018 
 
 
. 
OWNER OF RECORD: City of Muskegon 
 
By:                                               
 
Its:                                              
 
 
 
 
 
CONCEPT DESIGN
JEFFERSON APARTMENTS




               PROPOSED ELEVATION      PR0.0
                           JEFFERSON APARTMENTS
                                       1021 JEFFERSON ST
                                      MUSKEGON, MI 49440
                                           AUGUST 6, 2016
                         JEFFERSON
                        APARTMENTS
#


                                     PROJECT INFORMATION
                            PROPOSED 3-STORY BUILDING      1 BEDROOM UNIT         2 BEDROOM UNIT

                                          1ST FLOOR PLAN   17 UNITS               5 UNITS
                                          2ND FLOOR PLAN   19 UNITS               7 UNITS
                                          3RD FLOOR PLAN   19 UNITS               7 UNITS
                    !
                                                 TOTAL:    55 (1) BEDROOM UNITS   19 (2) BEDROOM UNITS

                                           GRAND TOTAL:    74 BEDROOM UNITS
                                      PARKING SPACES
                         SURFACE LEVEL PARKING SPACES      43 PARKING SPACES
                                      PARKING GARAGE       59 PARKING SPACES
#       "
                                           GRAND TOTAL:    102 PARKING SPACES




            !
    "           !




                                     &'         $ %   &




                         PROPOSED SITE PLAN                                                         PR0.1
                                                                      JEFFERSON APARTMENTS
                                                                                                    1021 JEFFERSON ST
                                                                                                   MUSKEGON, MI 49440
                                                                                                        AUGUST 6, 2016
                                                                        PROJECT INFORMATION
                                                               PROPOSED 3-STORY BUILDING         1 BEDROOM UNIT         2 BEDROOM UNIT

                                                                          1ST FLOOR PLAN         17 UNITS               5 UNITS
                                                                          2ND FLOOR PLAN         19 UNITS               7 UNITS
                                                                          3RD FLOOR PLAN         19 UNITS               7 UNITS

                                                                                   TOTAL:        55 (1) BEDROOM UNITS   19 (2) BEDROOM UNITS

                                                                           GRAND TOTAL:          74 BEDROOM UNITS
                                                                         PARKING SPACES
                                                         SURFACE LEVEL PARKING SPACES            43 PARKING SPACES
                                                                      PARKING GARAGE             59 PARKING SPACES

                                                                           GRAND TOTAL:          102 PARKING SPACES




                           ROOM LEGEND
                                                                              !          !                                !


                               1 BEDROOM UNIT                                     && (



                               2 BEDROOM UNIT


                               CIRCULATION / MECH


                               COMMERICAL                                                    !
                                                                                                 !
                   !
                       !       COMMUNITY SPACE
                                                                                         !
               !                                                                                                                                                      !




                                                                                                                                                                                    "

                                                                                                                                                                            )   "       !




                                                                                             !
                   !




           !                                                                                                                                                      "
'&   $ %   &                                        '&   $ %   &                                                                                   '&   $ %   &




                                                                                                                                               FIRST FLOOR PLAN                             PR1.0
                                                                                                                                                                      JEFFERSON APARTMENTS
                                                                                                                                                                                             1021 JEFFERSON ST
                                                                                                                                                                                            MUSKEGON, MI 49440
                                                                                                                                                                                                 AUGUST 6, 2016
     $       #    #
         !




     "                 #
         !




EXTERIOR ELEVATIONS          PR1.2
                 JEFFERSON APARTMENTS
                             1021 JEFFERSON ST
                            MUSKEGON, MI 49440
                                 AUGUST 6, 2016
GENERAL CAPITAL
  PORTFOLIO
RESIDENTIAL
AFFORDABLE HOUSING




                                                                                                                                “The Berkshire Muskegon was the
                                                                                                                                first new development to be built
                                                                                                                                 under the city’s recently adopted
                                                                                                                                 “Form Base Code,” a progressive
                                                                                                                               zoning tool intended to encourage
                                                                                                                                  more thoughtful urban design
                                                                                                                               throughout Downtown Muskegon”




BERKSHIRE MUSKEGON
275 W. CLAY AVENUE, MUSKEGON, MI




The Berkshire–Muskegon is an 84-unit mixed-use senior housing community located at 1st and Clay in Downtown

Muskegon. The 3-story brick building includes ground floor commercial space facing Clay, community space and resident

amenities facing Webster and residential units in a courtyard configuration. AgeWell Services of West Michigan will

occupy the 5,600 SF commercial space with offices and The Driftwood Café, a reduced cost food venue intended to serve

the general public and area residents with limited incomes. The site produces a WalkScore® of 82, indicating a highly

pedestrian environment that is convenient to shopping and services. The Muskegon Farmers Market, one of Michigan’s

largest and longest operating open air markets, is only two blocks away.



The Berkshire – Muskegon was the first new development to be built under the city’s recently adopted “Form Base Code,”

a progressive zoning tool intended to encourage more thoughtful urban design throughout Downtown Muskegon. The

property falls into two “character areas,” each containing specific development parameters including “build to” setback

lines, certain height and bulk restrictions and requirement for ground floor commercial space. One unique aspect of the

process was that it was approved by City Staff, not requiring any commission or council approvals. The result is an urban,
                                                                                                                             6938 NORTH SANTA MONICA BLVD
pedestrian-friendly building that fits comfortably into its downtown location.
                                                                                                                             MILWAUKEE, WI 53217
                                                                                                                             (O) 414-228-3500 (F) 414-228-3700
The $16.3 million project was funded with tax credit equity from US Bancorp Community Development Corporation and
                                                                                                                             WWW.GENERALCAPITALGROUP.COM
a permanent loan from Chemical Bank.
   RESIDENTIAL
   AFFORDABLE HOUSING




                                                                                                            General Capital worked closely with the Village

                                                                                                              of Paw Paw to design and fund this project.

                                                                                                             The Village contributed $200,000 to improve

                                                                                                            the commercial space and over $40,000 in fee

                                                                                                                waivers and streetscape improvements.




   BERKSHIRE PAW PAW
   3 0 8 E M I C H I G A N AV E , P AW P AW M I




The Berkshire–Paw Paw is a 42-unit affordable independent senior housing community located in the
heart of Downtown Paw Paw, Michigan. Residents enjoy walking to downtown restaurants, shops and
services. Autumn House Adult Day Care Services is located in the street-facing commercial space,
offering area residents a safe and inviting daytime environment for adults with special needs such as
Alzheimer’s, dementia or other physical impairments. The Berkshire – Paw Paw is LEED® Certified,
a nationally recognized environmental program that demonstrates a commitment to energy efficiency
and care for the earth. Residents will benefit with lower utility bills, increased indoor air quality and
overall improvement of environmental health. The facility is one of the only LEED® Certified apartment
communities in Southwest Michigan.
                                                                                                               6938 N Santa Monica Blvd
                                                                                                               Fox Point, WI 53217
General Capital worked closely with the Village of Paw Paw to design and fund this project. The Village
                                                                                                               tel 414-228-3500 fax 414-228-3700
contributed $200,000 to improve the commercial space and over $40,000 in fee waivers and streetscape
                                                                                                               www.generalcapitalgroup.com
improvements. The project was the first new project to be approved under the Village’s Downtown
Overlay District, a form-based code emphasizing mixed-use, pedestrian-oriented development. The $9.7
million project was funded with tax credit equity from US Bancorp Community Development Corporation
and a permanent loan from Chemical Bank.
 RESIDENTIAL
 AFFORDABLE HOUSING




                                                      M AY O R ’ S D E S I G N AWA R D




                                                                                                     “Affordable Housing
                                                                                             Tax Credit Apartment Deal located in
                                                                                             the Heart of Downtown Milwaukee”




 BEERLINE B APARTMENTS
 1 7 1 0 N C O M M E R C E S T R E E T, M I L WA U K E E , W I




The Beerline apartments project is located on Commerce Street along on the River in
in Downtown Milwaukee. The project has a total of 140, 1-, 2-, and 3-bedroom units.
90 of the units are in BLDG 1 on the south edge and 50 in BLDG 2 on the North, the
building adds to the expansive new construction product in the downtown market. The
main buidlings are split by BLDG 3, a resident / commnity lounge that features a theatre
like Audio/Video experience, blazing fast Wi-Fi, a full kitchen and a wood burning
pizza oven for neighborhood events and private / public community get togethers.


To finance the project, General Capital received one of the largest private allocations of     6938 N Santa Monica Blvd
LIHTC in Wisconsin’s history. In addition, General Capital worked closely with the City        Fox Point, WI 53217
of Milwaukee to negotiate a $1.1 million TIF to reconstruct the Milwaukee River dock           tel 414-228-3500 fax 414-228-3700
wall and Riverwalk. The project also obtained a $400,000 brownfield grant to assist            www.generalcapitalgroup.com
with environmental clean-up.
 RESIDENTIAL
 AFFORDABLE HOUSING




                                                                                               “Affordable supportive and market
                                                                                              rate housing on Milwaukee’s East Side
                                                                                                 developed for Mercy Housing”

                                                                                                          BUIL DING SI Z E

                                                                                                            79,270 SF

                                                                                                           T OTAL UNI TS

                                                                                                                 53

                                                                                                        NEIG H BORHOOD

                                                                                                            EAST SIDE




GREENWICH PARK APARTMENTS
2 3 5 3 N F A R W E L L AV E , M I L WA U K E E , W I 5 3 2 1 1




After exploring several alternatives, Mercy Housing Inc., a Denver-based non-profit housing
developer, requested help from General Capital to finalize plans, help secure financing
and serve as General Contractor for their 53-unit affordable housing development on
Milwaukee’s East Side. After receiving an allocation of affordable housing tax credits,
Mercy struggled to find a local contractor to build the originally envisioned project on
budget. With the help of General Capital and its strategic partner The Hoff Group, the
project was fully redesigned with a more cost effective structural system while maintaining
the exterior quality required by the the City of Milwaukee. Greenwich Apartments is a
mix of affordable supportive housing and market rate apartments owned and operated               6938 N Santa Monica Blvd
by Mercy Housing Lakeside.                                                                       Fox Point, WI 53217
                                                                                                 tel 414-228-3500 fax 414-228-3700
                                                                                                 www.generalcapitalgroup.com
RESIDENTIAL
AFFORDABLE HOUSING




                                                                                                      “Cutting Edge Affordable Housing for
                                                                                                             Millenials with Historic
                                                                                                              Renovation of Existing
                                                                                                            Pioneer Ford Dealership”




RUXTON
P I N E A N D WA T E R S T, P L A T T E V I L L E , W I




 Mixed use residential development on the former Pioneer Ford site in Downtown Platteville.
 Ruxton will include 71 units and approximately 2,500 square feet of commercial space. The
 building will be four stories tall with a connection into the Pioneer Ford building at the second
 floor. The Pioneer Ford building will be renovated into a new entrance and community space
 on the upper floor and retail space/utility rooms on the lower level. Additional retail space will
 be located in the high profile corner of the building on Water Street. The commercial space
 could be used for a coffee shop, deli, boutique retail or offices.

                                                                                                         6938 N Santa Monica Blvd
 The residential portion of the project consists of two rectangular volumes connected by a glass
                                                                                                         Fox Point, WI 53217
 atrium. The design will provide a stunning gateway element at the entrance to Downtown
                                                                                                         tel 414-228-3500 fax 414-228-3700
 Platteville.
                                                                                                         www.generalcapitalgroup.com
RESIDENTIAL
S T U D E N T A PA R T M E N T S




                                                  M AY O R ’ S D E S I G N AWA R D            “Student apartments for Milwaukee
                                                                                              Institute of Art and Design developed
                                                                                              in the Historic Third Ward under the
                                                                                               Architectural Review Board Design
                                                                                                           Guidelines”

                                                                                                        BUIL DING SI Z E :

                                                                                                          174,889 SF

                                                                                                          T OTAL BEDS:

                                                                                                               310

                                                                                                       NEIG H BORHOOD

                                                                                                         THIRD WARD

                                                                                                   COM M ERCIAL TE NANTS

                                                                                                    BLICK ART MATERIALS
                                                                                                     KICKAPOO COFFEE




TWO50TWO APARTMENTS
2 5 2 E M E N OM O NE E ST, MI LWAUK EE, W I 53202




MIAD’s student housing is located on East Menomonee Street, directly across from
the school’s main academic building. Students can take advantage of the full MIAD
community experience by living directly on campus. And MIAD’s campus is like no other:
students live in the heart of Milwaukee’s trendy Third Ward Neighborhood, known for its
art galleries, creative agencies, studios and unique dining and entertainment offerings.
The Third Ward is characterized by historic industrial architecture, loft-style residential
buildings and lively street level retail. MIAD students live in the middle of it all.


                                                                                                6938 N Santa Monica Blvd
                                                                                                Fox Point, WI 53217
                                                                                                tel 414-228-3500 fax 414-228-3700
                                                                                                www.generalcapitalgroup.com
 RESIDENTIAL
 A PA R T M E N T B U I L D I N G




                                                                                                     “An Artful Expression of
                                                                                                          Modern Living”

                                                                                                          BUIL DING SI Z E

                                                                                                           108,470 SF

                                                                                                           T OTAL UNI TS

                                                                                                                 95

                                                                                                        NEIG H BORHOOD

                                                                                                         SHOREWOOD

                                                                                                    COM M ERCIAL TE NANTS

                                                                                                            MOD PIZZA
                                                                                                           BENTLEY PETS
                                                                                                         ORANGE THEORY
                                                                                                     BLUE’S EGG RESTAURANT
                                                                                                       WISCONSIN VISION




 MOSAIC PREMIER APARTMENTS
 4 1 7 5 N O A K L AND AVE , SHO R E WOOD, WI




Mosaic is an upscale mixed-use development in the heart of Shorewood, Wisconsin
featuring 95 beautiful residences for lease, first floor boutique shops and restaurants and
conveniently located next to the newest Metro Market. Mosaic brings a perfect balance to
urban living, combining sophisticated luxuries and conveniences in one ideal location. The
community is nestled in a quaint neighborhood setting and just minutes from downtown
Milwaukee, the lakefront and community parks.


The apartment building is part of a $50 million mixed use development that is anchored by
Roundy’s new Metro Market flagship. A 90,000 square foot grocery store was constructed           6938 N Santa Monica Blvd
on two levels and is attached to a four story parking structure. The development was             Fox Point, WI 53217

facilitated by a public private partnership that included significant municipal participation.   tel 414-228-3500 fax 414-228-3700
                                                                                                 www.generalcapitalgroup.com
RESIDENTIAL
AFFORDABLE HOUSING




                                                                                             “A mixed-use senior project in the
                                                                                            Historic Six Points / Farmers Market
                                                                                                     area of West Allis”



                                                                                                       T OTAL UNI TS:

                                                                                                              80

                                                                                                     NEIG H BORHOOD

                                                                                                        WEST ALLIS




BERKSHIRE WEST ALLIS
1 4 1 4 S 6 5 T H S T R E E T, W E S T A L L I S , W I




The City of West Allis took a proactive approach toward an old industrial neighborhood
saddled with obsolete properties and is creating a vibrant mixed-use area known as
Six Points/Farmers Market. The City sought a catalytic project that would kick-start the
redevelopment effort. General Capital responded with a proposal to develop 80 units of
senior apartments with retail on the ground floor. The City enthusiastically endorsed the
concept and became a partner in the transaction. A $1.2 million municipal investment
was made to defray acquisition, demolition and environmental remediation costs.


The developer executed a complex property assemblage and created a four-story design          6938 N Santa Monica Blvd
                                                                                              Fox Point, WI 53217
that addressed the commercial nature of Greenfield Avenue while maintaining a strong
                                                                                              tel 414-228-3500 fax 414-228-3700
residential feel along 65th Street. With the City as a partner, General Capital was
                                                                                              www.generalcapitalgroup.com
awarded federal affordable housing tax credits from WHEDA that enabled this high
quality project to be built while maintaining rents affordable to neighborhood seniors.
RESIDENTIAL
AFFORDABLE HOUSING




                                                                                           “Workforce housing for Milwaukee’s
                                                                                             creative dlass Designed with an
                                                                                                   industrial aesthetic”




                                                                                                      URBAN LIVING
                                                                                                          B AY V I E W




HIDE HOUSE LOFTS
2 6 1 5 S G R E E L E Y S T, M I L WA U K E E , W I




Hide House Lofts is a 60-unit affordable workforce housing community located in
Milwaukee’s trendy Bay View neighborhood. The property was developed as a housing
complement to the larger Hide House creative arts complex, which includes over 60
artists and creative businesses. Hide House Lofts was developed on a property that was
once part of a larger commercial tannery complex. The property was contaminated with
solvents from the tannery operation and required source removal and soil encapusulation
as part of a DNR Remedial Action Plan approved for the property. In the process of
developing the new project, several buildings were demolished. The project achieved
over 93% landfill diversion, including re-purposing wood beams into flooring for the new     6938 N Santa Monica Blvd

building.                                                                                    Fox Point, WI 53217
                                                                                             tel 414-228-3500 fax 414-228-3700
                                                                                             www.generalcapitalgroup.com
General Capital closed on the Hide House Lofts transaction at the height of the Great
Recession. This required a complex financial execution leveraging numerous sources
of funds including $1.7 million of federal TCAP (Tax Credit Assistance Program) funds.
 RESIDENTIAL
 AFFORDABLE HOUSING




                                                                                             “The Latest Addition to the Greendale
                                                                                                           Originals”



                                                                                                         T OTAL UNI TS

                                                                                                               90

                                                                                                      NEIG H BORHOOD

                                                                                                         GREENDALE




 BERKSHIRE GREENDALE
 7 0 1 0 W G R A N G E AV E N U E , G R E E N D A L E , W I




The Berkshire-Greendale contains 90 units in a variety of configurations. The Berkshire is
affordable, without compromising the important amenities that make an apartment feel
like home. We offer wellness screening, regular activities, trips and special events. We
have many on-site amenities and gathering places to encourage friendship and fun. Our
goal is to offer a complete lifestyle for today’s active senior.


Many of the units at the Berkshires are available at reduced rents for income eligible
seniors. You will be pleased at how affordable luxury senior living can be.
                                                                                               6938 N Santa Monica Blvd
                                                                                               Fox Point, WI 53217
                                                                                               tel 414-228-3500 fax 414-228-3700
                                                                                               www.generalcapitalgroup.com
RESIDENTIAL
AFFORDABLE HOUSING




                                                                                                           General Capital worked with the
                                                                                                           National Park Service to obtain
                                                                                                        approval for the adaptive re-use of the
                                                                                                        building into 73 workforce apartments.




BERGAMOT BRASS WORKS APARTMENTS
8 0 0 E W I S C O N S I N S T, D E L AV A N , W I




General Capital recognized the demand for high quality affordable housing in the City
of Delavan, a picturesque tourism-intensive community west of Lake Geneva. In seeking an
appropriate site, a large industrial building became available and General Capital seized the
opportunity to renovate an historic building in the heart of the community. The former George
W. Borg Corporation facility was built between 1943 and 1956, at the height of WWII. In
1942, Borg Corporation was awarded a large government contract to manufacture ammunition
components, including the famous “proximity fuse” used in the war. General Capital worked
with the National Park Service to obtain approval for the adaptive re-use of the building into 73
workforce apartments.
                                                                                                           6938 N Santa Monica Blvd
                                                                                                           Fox Point, WI 53217
The building required full restoration of the exterior brick, new historically accurate windows
                                                                                                           tel 414-228-3500 fax 414-228-3700
and other historic features. The interior is fully gutted and retrofit to create authentic loft-style
                                                                                                           www.generalcapitalgroup.com
residential units and community spaces. The building includes direct entry 3-bedroom units on
the south side of the building. The $16.3 million project is supported by a $1.2 million TIF from
the City of Delavan and an allocation of affordable housing tax credits. In addition, the property
is taking advantage of federal and state historic preservation tax credits.
 RESIDENTIAL
 AFFORDABLE HOUSING




                                                                                           “The Town of Waukesha Celebrates its
                                                                                             first senior housing development”



                                                                                                        T OTAL UNI TS

                                                                                                              78

                                                                                                     NEIG H BORHOOD

                                                                                                        WAUKESHA




 BERKSHIRE AT SUNSET
 S 3 0 W 2 4 8 9 0 S U N S E T D R I V E , WA U K E S H A , W I




A large vacant parcel and ten small single-family homes were redeveloped into this
mixed use commercial/residential campus. Components including a large format grocery
store, neighborhood-serving shops and the Berkshire at Sunset, a 78-unit independent
senior housing facility. At the time, the Town of Waukesha ordinances didn’t allow dense
residential development within its boundaries, so over a six month period, General
Capital worked with the Town’s stakeholders to re-write its zoning code to accommodate
this opportunity.


The Berkshire at Sunset is a high-quality, three story independent senior facility with       6938 N Santa Monica Blvd
spacious floor plans, numerous on site amenities and an attractive landscaping package        Fox Point, WI 53217

to accent the property’s pond. We enjoy an excellent reputation within the area’s senior      tel 414-228-3500 fax 414-228-3700
                                                                                              www.generalcapitalgroup.com
community as a high quality, affordable place to live.
   RESIDENTIAL
   AFFORDABLE HOUSING




                                                                                                                  The project gained full support of the local
                                                                                                                     municipality, including the Downtown
                                                                                                                  Development Authority, which approved the
                                                                                                                   project through its Design Review Board.
                                                                                                                  The City Council endorsed the project with a
                                                                                                                         support resolution and PILOT.




   BERKSHIRE NILES
   1 0 N 3 R D S T R E E T, N I L E S M I




Niles, Michigan is known as “The City of Four Flags,” the oldest European settlement in lower Michigan
with over 300 years of interesting architecture, culture and history. The Berkshire-- Niles is located at the
corner of Third and Broadway in the Heart of Downtown Niles. This 53-unit independent senior housing
community is the latest addition to General Capital’s “Berkshire” brand. The 3-story building features
gabled roof forms with dormers over porches, high quality brick and siding materials and underground
parking, a feature rarely seen in this market.


General Capital worked with local stakeholders to design an appropriate building for this important
gateway location. The property is an assemblage of several small, underutilized parcels in a highly
visible location with views of the St. Joseph River. The project gained full support of the local municipality,
including the Downtown Development Authority, which approved the project through its Design Review                  6938 N Santa Monica Blvd
Board. The City Council endorsed the project with a support resolution and PILOT. The project will                  Fox Point, WI 53217
be the first significant new residential development in Downtown Niles in decades. The project will                 tel 414-228-3500 fax 414-228-3700
have a catalytic impact on the immediate neighborhood and will bolster community confidence in the                  www.generalcapitalgroup.com
development potential of Downtown Niles.


The $12.1 million project was funded with tax credit equity and permanent debt through Insite Capital/
Chemical Bank and a $500,000 grant from the Federal Home Loan Bank of Indianapolis.
   RESIDENTIAL
   AFFORDABLE HOUSING




                                                                                                  “General Capital worked closely with
                                                                                                   Grafton stakeholders to develop a
                                                                                                   shared vision for this 100-year-old
                                                                                                              foundry site”




   BERKSHIRE OCONOMOWOC
   2 1 0 S M A I N S T R E E T, O C O N O M O W O C , W I




Berkshire Oconomowoc includes 85 affordable senior apartment units, numerous activity
rooms and gathering spaces, including a dramatic re-use of the historic library in the original
school. The exterior of the new building takes cues from the existing facility to create a
harmonious look that reflects the architectural motif of the original design.


Berkshire-Oconomowoc is located in the City’s Downtown TIF district. The City provided public
funds to build out the senior center, maintain a public parking lot and fund a new pocket
park and improvements on Main Street. The project was financed by affordable housing
revenue bonds, issued by the City of Oconomowoc’s Community Development Authority. The              6938 N Santa Monica Blvd
project also received HOME funds from the HOME Consortium, further demonstrating the                Fox Point, WI 53217
widespread community support the project has received.                                              tel 414-228-3500 fax 414-228-3700
                                                                                                    www.generalcapitalgroup.com
  RESIDENTIAL
  AFFORDABLE HOUSING




                                                                                                     “A supportive housing facility for
                                                                                                         People with disabilities.”



                                                                                                               T OTAL UNI TS

                                                                                                                     50

                                                                                                            NEIG H BORHOOD

                                                                                                             BROWN DEER




  BRADLEY CROSSING I, SUPPORTIVE HOUSING
  4375 W BRADLEY RD, BROWN DEER, WI




Building on the success of its Deerwood Crossing facility, Jewish Family Services began
exploring the potential for a specialized supportive housing facility for individuals and families
with children with physical and cognitive disabilities. General Capital worked with JFS and
Movin’ Out to identify an appropriate site, program the building and seek appropriate
partnerships for both financing and operating the facility. General Capital applied for, and
successfully obtained, an allocation of Section 42 tax credits to produce equity for the project.


Bradley Crossing contains 60 1- 2- and 3-bedroom apartments with numerous community
                                                                                                     6938 N Santa Monica Blvd
amenities. In addition, the property will house outreach offices and therapy rooms for Jewish
                                                                                                     Fox Point, WI 53217
Family Services as well as a 6,000 square foot community center leased to the Village of
                                                                                                     tel 414-228-3500 fax 414-228-3700
Brown Deer for its senior meal program and recreation department programs and activities.
                                                                                                     www.generalcapitalgroup.com
RESIDENTIAL
AFFORDABLE HOUSING




                                       “A residential care apartment
                                    complex for Jewish Family Services”




DEERWOOD CROSSING II, SENIOR RCAC
4195 W BRADLEY RD, BROWN DEER, WI




                                      6938 N Santa Monica Blvd
                                      Fox Point, WI 53217
                                      tel 414-228-3500 fax 414-228-3700
                                      www.generalcapitalgroup.com
  RESIDENTIAL
  AFFORDABLE HOUSING




                                                                                                     “A Residential Care Apartment
                                                                                                   Complex for Jewish Family Services”




                                                                                                               T OTAL UNI TS

                                                                                                                     66

                                                                                                            NEIG H BORHOOD

                                                                                                             BROWN DEER




  DEERWOOD CROSSING I, SENIOR RCAC
  4195 W BRADLEY RD, BROWN DEER, WI




General Capital was engaged as lead developer for Deerwood Crossing, a 66-unit senior
apartment community for Jewish Family Services. JFS hired General Capital to coordinate
every aspect of the development process including design, obtaining investor equity,
coordinating multiple financing vehicles (including Section 42 tax credits and an AHP grant),
bidding and negotiating construction contracts and building the facility itself. The building is
a full service Residential Care Apartment Complex (RCAC) offering a full array of services
such as meals, personal care, housekeeping and other services associated with the assisted
living program.

                                                                                                     6938 N Santa Monica Blvd
Since 1867, Jewish Family Services (JFS) has provided comprehensive social services for the
                                                                                                     Fox Point, WI 53217
Milwaukee area Jewish and general community. The mission of Jewish Family Services is to
                                                                                                     tel 414-228-3500 fax 414-228-3700
provide supportive services that will strengthen families, children and individuals throughout       www.generalcapitalgroup.com
the life cycle within the context of their unique needs and traditions.
RESIDENTIAL
A PA R T M E N T B U I L D I N G




                                                                                                      The $21+ million project is
                                                                                                     supported by a $2.2 million
                                                                                                       Village of Greendale TIF.




GREENBELT APARTMENTS
5 2 0 4 S 7 6 T H S T R E E T, G R E E N D A L E , W I




The Village of Greendale, Wisconsin, is the home of Southridge, the largest regional mall in the
state. The Village has proactively sought to densify the greater Southridge area and add a mix of
new development to strengthen and complement the mall. In 2016, the Village invited General
Capital to explore concepts for the east side of the mall, on underutilized property owned by
JCPenney. After developing several alternative scenarios, General Capital obtained approval for
a 160 unit luxury apartment community developed in two phases.


Greenbelt Apartments is named after the 1930’s “greenbelt community” movement, from which
the original Village of Greendale plan was formed. The community was concerned with creating
                                                                                                    6938 N Santa Monica Blvd
a project that fit into the context of the historic Village Center, yet reflected a contemporary
                                                                                                    Fox Point, WI 53217
design of the times. Working with AG Architecture and its partner Joseph Property Development,
                                                                                                    tel 414-228-3500 fax 414-228-3700
General Capital forged a design that includes three-story buildings surrounding community open
                                                                                                    www.generalcapitalgroup.com
space and outdoor amenities. Each building contains underground parking. A central community
building offers residents a place to relax, exercise and meet with neighbors.


The $21+ million project is supported by a $2.2 million Village of Greendale TIF.
Date:         November 13, 2018
To:           Honorable Mayor and City Commissioners
From:         City Manager
RE:           Letter of Intent with Mart Dock


SUMMARY OF REQUEST: Staff is seeking permission to enter into a Letter of Intent with
Mart Dock with the goal of determining the feasibility of swapping their property commonly
referred to as the Third Street Dock with our property commonly referred to as Fisherman’s
Landing. The goal of the swap would be to relocate all of the Mart Dock’s shipping
operations away from their downtown location to the city property adjacent to the BC Cobb
site. The downtown site would be redeveloped into a mixture of public space, residential,
and commercial uses. This agreement does not commit either party to the swap, but rather
gives both parties time/access to study the feasibility of the complicated transaction.



FINANCIAL IMPACT:



BUDGET ACTION REQUIRED:



STAFF RECOMMENDATION: Staff recommends approval of the request.
Mr. Frank Peters                                                      September 20, 2018
City Manager
City of Muskegon
933 Terrace Street
Muskegon, Michigan 49443

RE: Mart Dock Letter of Intent

West Michigan Dock and Market ("WMD") is pleased to present the following letter of intent
("LOI") regarding a potential sale and lease of properties (the "Swap") between WMD and the
City of Muskegon (“City”), (collectively the “Parties”).

The City has a stated desire to enhance public access to Muskegon Lake in the downtown
vicinity, and, begin transitioning commercial port operations to the area designated by the
City for future commercial port terminal development at the easterly end of Muskegon Lake;
and

WMD owns a parcel of land with immediate waterfront access to Muskegon Lake in the
downtown vicinity, the (“Third Street Perimeter Property”), as described in Figure A;

The City owns a parcel of land located within the area designated for future commercial port
terminal development, the (“Fisherman’s Landing Property”), as described in Figure B; and

WMD is willing to transition commercial port terminal activity away from the current
downtown port facility, (“the Mart Dock”) in a prescribed manner, (the “Transition
Agreement”); and

This LOI outlines the basic terms and conditions of the Transaction for a forthcoming lease,
sale and purchase agreement ("Swap Agreement").

                             560 Mart · Muskegon, MI · 49440
                           (231) 722-6691 · Fax (231) 726-6636
Proposed Structure

   1. Upon acceptance of the LOI (the “Effective Date”), the Parties shall grant each other the
      exclusive right to enter upon the respective properties to conduct due diligence.
   2. Upon completion of due diligence and subject to the Conditions noted below, the parties
       shall enter into a Swap Agreement defining customary real estate sale/lease transactions,
       purchase price, lease terms, and proper consent by the authorized owners.



Due Diligence

   1. The due diligence period shall commence on the Effective Date and expire on the earlier
      of six (6) months from the Effective Date or upon entering a Swap Agreement, whichever
      occurs first.
   2. The Parties agree that they shall each rely on their own inspection or the inspections of
      their agents regarding the condition or suitability of a property. If either party is not
      satisfied, in its sole discretion, following the successful completion of its technical,
      financial, legal, geological, and environmental due diligence review of the respective
      property, either party may terminate this Agreement by sending the other a written
      notice of termination on or before the end of the due diligence period.
   3. Each party will restore the respective property to essentially the same condition that
      existed prior to the due diligence period.


Term
The term of this LOI shall commence on the LOI Effective Date and end upon the earliest of either
the end of the due diligence period or the execution of a Swap Agreement (the "Term"). This LOI
shall be superseded in all aspects by a fully executed Swap Agreement if such an agreement is
reached.



Exclusivity

Upon the execution of the LOI, the Parties shall provide one another a period of exclusivity for
the Term of this LOI. During this period, neither party, its representatives, nor advisors may
directly or indirectly take any other action to facilitate the submission of inquiries, proposals, or

                                   560 Mart · Muskegon, MI · 49440
                                 (231) 722-6691 · Fax (231) 726-6636
offers from any other party relating to the sale of all or a part of their property subject to this
LOI.



Conditions for Agreements
The Swap Agreement will include the following conditions, to the satisfaction of the Parties:

   a. The Parties will utilize a value for the Third Street Perimeter Property arrived at by a
      mutually agreeable appraiser and appraisal methodology.
   b. WMD will provide the City proposed amounts and term lengths for rights to operate the
      Fisherman’s Landing Property port terminal. The lease shall include language defining the
      necessary improvements to be made to the Fisherman’s Landing Property to enable it to
      be utilized as a port terminal and rights for WMD to terminate the lease at its option of
      if:
                   i. Permits for the improvements are denied by any regulating body
                   ii. Funding sources to support the development of the port terminal are
                       denied or not sufficient
                  iii. Final engineering design shows the port terminal improvements to be cost
                       prohibitive or otherwise non attainable.
   c. Any difference in the value of the Third Street Perimeter Property as appraised and the
      proposed Fisherman’s Landing Property operating lease value shall be paid at the closing
      of the Swap Agreement, or otherwise considered in establishing the operating lease
      amount and/or term length. Either party may choose to accept other real estate assets
      as payment of any such difference.
   d. The City will provide WMD reasonable assurances that the Third Street Perimeter
      Property will be developed in a manner compatible with the future redevelopment of The
      Mart Dock, which may include rights to re-purchase the property in the event of a sale of
      the Third Street Perimeter Property by the City. By way of example use as a public park,
      which could include recreational boat access and public gathering, is considered
      consistent with the future use of the Mart Dock.
   e. WMD will provide the City reasonable assurances that:
                   i. The campground portion of the Fisherman’s Landing Property will
                      continue to be operated for camping until such time that WMD finalizes
                      engineering, permitting and funding to begin conversion of the property
                      to a commercial marine terminal.
                   ii. WMD will continue to offer the boat ramp and parking portion of the
                       Fisherman’s Landing Property for launching and parking until such time

                                  560 Mart · Muskegon, MI · 49440
                                (231) 722-6691 · Fax (231) 726-6636
                      that WMD analyzes the spatial needs and truck traffic flow in and out of
                      the port terminal and finalizes engineering, permitting, and funding to
                      begin conversion of the property to a commercial marine port terminal.
                      WMD will attempt to design the commercial marine port terminal
                      improvements to maintain some amount of these ramp and parking
                      features, and/or a limited area to be used for public fishing and public
                      viewing unless it would place undue hardship on commercial terminal
                      operations. "Undue hardship" would include, but not be limited to, any
                      efforts or activities required by WMD to secure, prepare, guard or police
                      the ramp, parking, public fishing and viewing area for general public safety
                      or security purposes including, but not limited to, those required by the
                      United States Coastguard, The US Department of Homeland Security, U.S.
                      Federal Customs and Border Patrol, or any other local, state or national
                      government requirements.
                  iii. A permanent easement will be maintained for the bike path crossing the
                       Fisherman’s Landing Property.
                  iv. The portion of the Third Street parcel retained by WMD will be developed
                      for mixed use in a manner that suits the development and use of the Third
                      Street Perimeter Parcel and wider Mart Dock redevelopment.
                  v. Limited public recreational vessel docks will be authorized in the channel
                     adjacent to the Third Street Perimeter Parcel, subject to WMD’s approval.


   f. WMD shall maintain all riparian rights of the channel separating the Third Street
      Perimeter Property and the Mart Dock.


The Transition Agreement will include the following conditions:
   a. Upon the Parties closing the Swap Agreement and successfully completing the
      improvements outlined in the Fisherman’s Landing Property lease, transitioning it to a
      fully functional commercial marine port terminal, WMD will officially forgo future rights
      to store material piles (aggregates) at the Mart Dock. Such Transition Agreement will be
      made an addendum to the Swap Agreement.


Expenses

Each party shall bear and be responsible for its own fees and expenses including, without
limitation, expenses of legal counsel, accountants, environmental, geological, and other advisors
incurred at any time in connection with pursuing or executing a Swap Agreement.


                                 560 Mart · Muskegon, MI · 49440
                               (231) 722-6691 · Fax (231) 726-6636
Governing Law

The Transaction described in this letter will be governed by the laws of the State of Michigan.



We look forward to your timely review and response.



Sincerely,




Max McKee




The signatures of the Parties in the space below indicate the acceptance of the general terms
outlined in this LOI.


West Michigan Dock and Market Corporation

Printed:________________________________

Signature:     ___________________________

Date:          ___________________________



City of Muskegon

Printed:________________________________

Signature:     ___________________________

Date:          ___________________________

                                 560 Mart · Muskegon, MI · 49440
                               (231) 722-6691 · Fax (231) 726-6636
  560 Mart · Muskegon, MI · 49440
(231) 722-6691 · Fax (231) 726-6636

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