City Commission Packet 09-26-2006

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      CITY OF MUSKEGON
        CITY COMMISSION MEETING
                   SEPTEMBER 26, 2006
     CITY COMMISSION CHAMBERS@ 5:30P.M.
                                AGENDA

o CALL TO ORDER:
o   PRAYER:
o PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
o INTRODUCTIONS/PRESENTATION:
o CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
      B. FIRST READING: Rezoning Request for Property Located at 699 Pulaski
         Avenue. PLANNING & ECONOMIC DEVELOPMENT
      C. FIRST READING: Rezoning Request for Property Located at 236 Monroe
         Avenue. PLANNING & ECONOMIC DEVELOPMENT
      D. FIRST READING:    Rezoning Request for Property Located at 1745
         Madison Street. PLANNING & ECONOMIC DEVELOPMENT
      E. Approval of Contractor for Rehabilitation of House at 435 Monroe.
         COMMUNITY & NEIGHBORHOOD SERVICES
o PUBLIC HEARINGS:
      A. Spreading of the Special Assessment Roll for Denmark Street. Lakeshore
         to Crozier. ENGINEERING
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
      A. Bond Authorizing Resolution 2006 Public Improvement Bonds. FINANCE
          B. Request for Final Planned unit Development Approval for a Residential
             Development near Sherman Boulevard and Barclay Street. PLANNING
             & ECONOMIC DEVELOPMENT
          C. Set Public Hearing for Amendment to Brownfield Plan - Viridian Place at
             Edison Landing. PLANNING & ECONOMIC DEVELOPMENT
          D. Farmers' Market Relocation Proposal.                               PLANNING & ECONOMIC
             DEVELOPMENT
o ANY OTHER BUSINESS:
o 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.)

D    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 LINDA
POTTER, ACTING CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR
TDD: (23 I) 7244172.
Date:     September 26, 2006
To:       Honorable Mayor and City Commissioners
From:     City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes for the September 11th
Commission Worksession, and the September 1ih Regular
Commission Meeting.


FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                    SEPTEMBER 26, 2006
    CITY COMMISSION CHAMBERS@ 5:30P.M.
                                MINUTES

   The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, September
26, 2006.
   Mayor Warmington opened the meeting with a prayer from Vice Mayor
Stephen Gawron after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
   Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioner Lawrence Spataro, Sue Wierengo, Chris Carter, and Kevin Davis,
City Manager Bryon Mazade, City Attorney John Schrier, and Acting City Clerk
Linda Potter.
   Absent: Commissioner Clara Shepherd (excused)
2006-77 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Commission Worksession
held on Monday September 11, 2006 and the Regular Commission Meeting held
on Tuesday, September 12, 2006.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes
      B. FIRST READING: Rezoning Reguest for Property Located at 699 Pulaski
         Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 699 Pulaski
Avenue, from 1-1, Light Industrial district to B-4, General Business district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITIEE RECDOMMENDATION: The Planning Commission recommended
approval of the request at their September 14th meeting. The vote was
unanimous, with T. Michalski and B. Larson absent. (Requires Second Reading)
      C. FIRST READING: Rezoning Request for Property Located at 236 Monroe
         Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 236 Monroe
Avenue, from R-1, One Family Residential district to B-2, Convenience and
Comparison Business district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECDOMMENDATION: The Planning Commission recommended
approval of this request at their September 14th meeting. The vote was
unanimous, with T. Michalski and B. Larson absent. (Requires Second Reading)
      D. FIRST READING:   Rezoning Request for Property Located at 1745
      Madison Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 17 45 Madison
Street, from 1-1, Light Industrial district to R-1, One Family Residential district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECDOMMENDATION: The Planning Commission recommended
approval of the request at their September 14th meeting. The vote was
unanimous, with T. Michalski and B. Larson absent. (Requires Second Reading)
Motion by Vice Mayor Gawron, second by Commissioner Carter to accept the
Consent Agenda as read minus item E.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, and Gawron
            Nays: None
MOTION PASSES
2006-78 ITEM REMOVED FROM THE CONSENT AGENDA:
      E. Approval of Contractor for Rehabilitation of House at 435 Monroe.
      COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Lewis E. Johnson
Construction, of 1607 6 Bonita Court, Grand Haven, Michigan, for the completion
of the rehabilitation to be located at 435 Monroe, for the cost of $78,900
(Seventy-eight thousand nine hundred dollars).
After the total rehabilitation is completed the home will be sold to a qualified
first-time homebuyer, continuing the City's aggressive neighborhood
revitalization efforts in the Nelson neighborhood area under the Operation:
"Rejuvenating, Revitalizing, and Resurrecting Our City"
The City received three (3) additional bids:
   • J2 Development & Construction, of 109 West Laketon Avenue, Muskegon,
      Michigan for$ 81, 07 6 (Eighty-one thousand and seventy-six dollars)
   • DeRose Builders Inc, of 7786 Wiczer Drive, Whitehall, Michigan for
     $86,501.56 (Eighty-six thousand, five hundred and one dollars and fifty-six
     cents)
   • Gawlik Construction, of 5346 East Sternberg Road, Fruitport. Michigan for
     $87,000 (Eighty-seven thousand dollars)
FINANCIAL IMPACT: The funding for the project will be taken from the City's
2006-2007 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services office to develop a contract with Lewis E. Johnson Construction and
direct the Mayor and Clerk to sign the contract.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
contract with Lewis E. Johnson Construction for 435 Monroe.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, and Spataro
            Nays: None
MOTION PASSES
2006-79 PUBLIC HEARINGS:
      A. Spreading of the Special Assessment Roll for Denmark Street, Lakeshore
         to Crozier. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special
assessment for Denmark St. from Lakeshore Dr. to Crozier Ave., and to adopt the
resolution confirming the special assessment roll.
FINANCIAL IMPACT: A total of $61,249.92 would be spread against the 32
parcels abutting the project.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: to approve the special assessment roll and adopt
the resolution.
The public hearing opened at 5:40 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to close the
Public Hearing at 5:41 p.m. and spread the special assessment roll and adopt
the resolution.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Spataro, and Warmington
             Nays: None
MOTION PASSES
2006-80 CITY MANAGER'S REPORT:
Mayor Stephen Warmington presented City Manager Bryon Mazade with a
plaque from ICMA in honor of his 25 years of service as a City Manager.
2006-81 NEW BUSINESS:
      A. Bond Authorizing Resolution 2006 Public Improvement Bonds. FINANCE
SUMMARY OF REQUEST: The City is undertaking construction of a new Central
Fire Station and has previously undertaken major recreation projects including
completion of the lakeshore trail and improvements at Hartshorn Marina. To
finance these projects, it is necessary to issue public improvement bonds.
Previously the Commission adopted a Notice of Intent Resolution which notified
citizens of the City's intent to borrow and allowed for a 45 day period during
which petitions could be filed to force a referendum on this bond issue. The 45-
day period elapsed with no petitions being filed and the next step in the
bonding process is adoption of the bond authorizing resolution.
FINANCIAL IMPACT: The resolution authorizes the City to borrow $5.400,000,
which will be used as follows (amounts include issuance costs): Central Fire
Station ($3,696,970); trail project match ($516,067); Marina project match
($1.032, 140); Fisherman's Landing restroom reimbursement ($154,823).
The bonds will be paid from CDBG funds (fire station portion), DDA and Marina
funds (as available), Fisherman's Landing contract payments, and general funds
over 25 years. The bonds will carry the City's limited full faith and credit. This
means that if primary income sources fall short of the amount needed to make
annual debt service payments, the City's General Fund will be required to make
up the shortfall.
The full future financial impact will not be known until bonds are sold and interest
rates determined. Bonds are scheduled for sale on Tuesday, October 1Oth and
the results will be brought to the City Commission that same evening for award.
BUDGET ACTION REQUIRED: None at this time. Projected debt service costs
were included in the 2007 budget and will be budgeted in future years as well
until the bonds are fully retired (2032).
STAFF RECOMMENDATION: Approval of the bond authorizing resolution.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the bond authorizing resolution for the 2006 public improvement bonds.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Spataro, Warmington, and Wierengo
            Nays: None
MOTION PASSES
      B. Request for Final Planned Unit Development Approval for a Residential
         Development near Sherman Boulevard and Barclay Street. PLANNING
         & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The request for Final Planned Unit Development (PUD)
approval for a mixed use commercial and residential development for the
southerly portion of 1266 W. Sherman Boulevard, the northerly portion of 1228 W.
Sherman, a portion of 1254 W. Sherman and a portion of 2495 Barclay Street. The
request is by Hazel Church ley, Exit Your Way, LLC.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends final approval of the PUD
provided that the conditions listed in the resolution are met. Staff added an
additional condition regarding Fire Department requirements listed in the
Planning Commission staff report.
COMMIITEE RECOMMENDATION: The Planning Commission recommended
approval of the final PUD, with the conditions listed on the resolution, at their
September 14, 2006 meeting. The vote was approved by majority vote, with J.
Aslakson voting no, and T. Michalski and B. Larson absent.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the final Planned Unit Development for residential development near Sherman
and Barclay with conditions listed on the resolution.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to Table and
refer back to the Planning Commission.
ROLL VOTE: Ayes: Davis, Gawron, Spataro, Warmington, Wierengo, and Carter
            Nays: None
MOTION PASSES
      C. Set Public Hearing for Amendment to Brownfield Plan - Viridian Place at
         Edison Landing. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for an
amendment for the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan Amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property owned by Edison Landing Lot I,
LLC ("ELLI"), known as Viridian Place at Edison Landing, located at 600 Terrace
Street, in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in including the project in
the Brownfield Plan, although the redevelopment of the site into a mixed-use
development will eventually add to the tax base in Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
COMMITIEE RECOMMENDATION: The Brownfield Redevelopment Authority met
on September 20, 2006 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission.   In addition, the Brownfield Redevelopment Authority
recommends that the Muskegon City Commission set a public hearing on the
Plan Amendment for October 24, 2006.
Motion by Vice Mayor Gawron, second by Commissioner Carter to set the Public
Hearing for the amendment to the Brownfield Plan for October 24, 2006.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Carter, and Davis
            Nays: None
MOTION PASSES
      D. Farmers' Market Relocation Proposal.        PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: ANM Real Estate Group (Moses Gross, Watermark) has
met with staff regarding the possibility of relocating the Farmers' Market to the
former Shaw Walker parking lot. The lot would continue to be owned by the City
of Muskegon and would be officially part of the Hartshorn Marina. However,
ANM Real Estate would lease the property and manage the relocated Farmers
Market. They have submitted a proposal.
FINANCIAL IMPACT: The City would contribute $300,000 from the State of
Michigan Waterways grant, which is being used for marina improvements
(providing the City receives approval from the State to use the funds for this
purpose). ANM would match this amount to complete the Farmers' Market
relocation. In addition, they would lease the property from the City (at a
minimal rate) and share a percentage of their revenues with the City in the
future.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize staff to enter into discussion with ANM
Real Estate to develop a lease and management agreement for the relocation
of the Farmers' Markel to the former Shaw Walker parking lot site.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to authorize
staff to enter into discussion with ANM Real Estate to develop a lease and
management agreement for the relocation of the Farmers' Market to the former
Shaw Walker parking lot site.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, and Gawron
           Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commission discussed various items.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:53 p .m .


                                         Respectfully submitted,




                                        Linda Potter, CMC
                                        Acting City Clerk
                         Commission Meeting Date: September 26, 2006




          Date:               September 15, 2006
          To:                 Honorable Mayor and City Commissioners
          From:               Planning & Economic Development                             t.JI2f!---
          RE:                 Rezoning request for property located at 699 Pulaski Ave.


          SUMMARY OF REQUEST:

          Request to rezone the property located at 699 Pulaski Avenue, from 1-1, Light
          Industrial district to B-4, General Business district.

          FINANCIAL IMPACT:

          None

          BUDGET ACTION REQUIRED:

          None

          STAFF RECOMMENDATION:

          Staff recommends approval of the request.

          COMMITIEE RECOMMENDATION:

          The Planning Commission recommended approval of the request at their 9/14
          meeting. The vote was unanimous, with T. Michalaski and B. Larson absent.




0:\Planning\COMMON\Zoning\City Commission ltems\rezone\Approvc\2006 Approvals\699 Pulaski Ave.doc
                        Commission Meeting Date: September 26, 2006




          Date:              September 15, 2006
          To:                Honorable Mayor and City Commissioners
          From:              Planning & Economic Development                            CJ6 (_
          RE:                Rezoning request for property located at 236 Monroe Ave.


          SUMMARY OF REQUEST:

          Request to rezone the property located at 236 Monroe Avenue, from R-1, One
          Family Residential district to B-2, Convenience and Comparison Business district.

          FINANCIAL IMPACT:

          None

          BUDGET ACTION REQUIRED:

          None

          STAFF RECOMMENDATION:

          Staff recommends approval of the request.

          COMMITTEE RECOMMENDATION:

         The Planning Commission recommended approval of the request at their 9/14
         meeting. The vote was unanimous, with T . Michalaski and B. Larson absent.




0:\Pianning\COMMON\Zoning\City Commission ltems\rezone\Approve\2006 Approvals\236 Monroe. doc    1
             Commission Meeting Date: September 26, 2006




Date:             September 15, 2006
To:               Honorable Mayor and City Commissioners
From:             Planning & Economic Development                             cfb c...-
RE:               Rezoning request for property located at 1745 Madison St.


SUMMARY OF REQUEST:

Request to rezone the property located at 1745 Madison Street, from 1-1, Light
Industrial district to R-1, One Family Residential district.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends approval of the request.

COMMITIEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 9/14
meeting. The vote was unanimous, with T. Michalaski and B. Larson absent.




        0:\Pianning\COMMON\Zoning\City Commission ltems\rezone\Approve\2006 Approvals\1745 Madison St. doc   1
    Commission Meeting Date:            September 26, 2006


Date:       September 19, 2006
To:          Honorable Mayor & City Commission
From:        Community and Neighborhood Services
             Department
RE:         Approval of Contractor for Rehabilitation of House
            at 435 Monroe


SUMMARY OF REQUEST: To approve the contract with Lewis E.
Johnson Construction, of 16076 Bonita Court, Grand Haven Michigan,
for the completion of the rehabilitation to be located at 435 Monroe, for
the cost of $78,900 (Seventy-eight thousand nine hundred dollars).

After the total rehabilitation is completed the home will be sold to a
qualified first-time homebuyer, continuing the City's aggressive
neighborhood revitalization efforts in the Nelson neighborhood area
under the Operation:
      "Rejuvenating, Revitalizing, and Resurrecting Our City"

The City received three (3) additional bids:

• J2 Development & Construction, of 109 West Laketon Avenue
  Muskegon Michigan, for$ 81,076 (Ninetv=fo.u.r-t~oos-and-GRe-l:lund.red .~All
                                                                            A


  _
  tweJ::lt-}I-GI-G-1-la-FS)       e\~~ - ~ 't--h-o v...s~ ~ ~ ,_, ~r

•   DeRose Builders Inc, of 7786 Wiczer Drive Whitehall Michgan, for
    $ 86,501.56 (Eighty-six thousand five hundred one dollars and fifty-
    six cents)

• Gawlik Construction, of 5346 East Sternberg Road Fruitport
  Michigan, for$ 87,000 (Eighty-seven thousand dollars)
FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2006-2007 HOME funds.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve for the Community and
Neighborhood Services office to develop a contract Lewis E. Johnson
Construction and direct the Mayor and Clerk to sign the cortract.
COMMITTEE RECOMMENDATION: None needed.
TO:            Honorable Mayor and City Commissioners

FROM:          Engineering

DATE:          September 26, 2006

RE:            Public Hearing
               Spreading of the Special Assessment Roll
               Denmark St.,Lakeshore Dr. to Crozier Ave.



SUMMARY OF REOUEST:

To hold a public hearing on the spreading of the special assessment for Denmark St. from
Lakeshore Dr. to Crozier Ave., and to adopt the attached resolution confirming the special
assessment roll.


FINANCIAL IMPACT:

A total of$61,249.92 would be spread against the thirty-two- (32) parcels abutting the project.


BUDGET ACTION REQUIRED:

None at this time.


STAFF RECOMMENDATION:

To approve the special assessment roll and adopt the attached resolution.


COMMITTEE RECOMMENDATION:
                                    CITY OF MUSKEGON

                                   Resolution No. 2006-79(a)


                       Resolution Confirming Special Assessment Roll

                    For Denmark St. from Lakeshore Dr. to Crozier Ave.


Properties Assessed: See Exhibit A attached to this resolution.

RECITALS:

1.     The City Commission determined to create a special assessment district covering the
       Proper1ies set for1h in Exhibit A attached to this resolution on February 28, 2006, at the
       first hearing.

2.     The City has reviewed the special assessment roll which purports to levy a special
       assessment in the said district, levying on each proper1y a portion of the cost which has
       been determined to be appropriate, considering the improvements, the benefit to the
       assessed proper1ies, and the policies of the City.

3.     The City Commission has received final bids for the construction and/or installation of
       the improvements and detennines it to be fair and reasonable.

4.     The City Commission has heard all objections to the roll filed before or at the hearing.

THEREFORE, BE IT RESOLVED:

1.     That the special assessment roll submitted by the Board of Assessors is hereby approved.

2.     That the assessments levied may be made in installments as tallows: annual installments
       over ten ( 10) years. Any assessment that is paid in installments shall carry interest at
       the rate of five (5) percent per annum to be paid in addition to the principal payments on
       the special assessment.
RESOLUTION CONFIRMING SPECIAL ASSESSMENT ROLL

                       FOR Denmark St., Lakeshore Dr. to Crozier Ave.
Continued ...



3.      The Clerk is directed to endorse the cet1ificate of this confinnation resolution and the
        Mayor may endorse or attach his warrant beating the date of this resolution which is the
        date of confinnation.

This resolution passed.

Ayes: Wierenga, Carter, Davis, Gawron, Spataro, and Wannington

Nays: None

                                                               City of Muskegon


                                               By    civn~            ;(Jrd!uz.
                                                       Linda Potter, Acting City Clerk


                                          CERTIFICATE

Thi s resoluti on was adopted at a meeting of the City Commission, held on September 26, 2006.
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.

Further, I hereby certify that the special assessment roll referred to in this resolution was
confinned on this date, being September 26, 2006.




                                                              City of Muskegon


                                               By ~~
                                                       Linda Potter, Acting City Clerk
                                 EXHIBIT A


              DENMARK ST., LAKESHORE DR. TO CROZIER AVE.

                     SPECIAL ASSESSMENT DISTRICT

All properties abutting that section of DENMARK ST., LAKESHORE DR. TO CROZIER
                                          AVE.
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            DENMARK ST., LAKESHORE DR. TO CROZIER AVE.

                MAYOR'S ENDORSEMENT AND WARRANT


I, STEPHEN J. WARMINGTON, MAYOR OF THE CITY OF MUSKEGON, HEREBY

ENDORSE THE ABOVE CONFIRMATION RESOLUTION AND HEREBY WARRANT TO

THE CITY TREASURER THIS DATE THAT HE SHALL PROCEED TO COLLECT THE

ASSESSMENTS AT THE TIME AND IN THE MANNER SET FORTH ABOVE.
                       AFFIDAVIT OF MAILING


STATE OF MICHIGAN      )
                       ) ss
COUNTY OF MUSKEGON )

     TO CONFIRM THE SPECIAL ASSESSMENT DISTRICT FOR THE
                        FOLLO\VING:

            H-1613 ,Denmark St., Lakeshore Dr. to Crozier Ave.

THE DEPONENT SAYS THAT THE NOTICE OF HEARING WAS SERVED UPON
EACH OWNER OF OR PARTY IN INTEREST IN PROPERTY TO BE ASSESSED IN
THE SPECIAL ASSESSMENT DISTRICT WHOSE NAME APPEARS UPON THE
LAST TAX ASSESSMENT RECORDS OF THE CITY OF MUSKEGON BY
MAILING SUCH NOTICE IN A SEALED ENVELOPE BY FIRST CLASS UNITED
STATES MAIL, WITH POSTAGE PREPAID, ADDRESSED TO EACH SUCH
OWNER OR PARTY IN INTEREST AT THE ADDRESS SHOWN ON SAID LAST
TAX ASSESSMENT RECORDS BY DEPOSITING THEM IN AN OFFICIAL
UNITED STATES MAIL RECEPTACLE ON THE 15th DAY OF SEPTEMBER 2006


                                LINDA POTTER, ACTING CITY CLERK



SUBSCRIBED AND S 'ORN TO BEFORE ME THIS
 ~Or. DAY OF      c   ~
                     1d:>          2006. ,
      ~ ~"h . ~w ~'C> ILL
September 15, 2006




OWNERS NAME
OWNERS ADDRESS
OWNERS CITY, OWNERS STATE OWNERS ZIPCODE



Property Parcel Number: 24-XXX-XXX-XXXX-XX at PROPERTY ADDRESS & STREET



  NOTICE OF HEARING TO CONFIRM SPECIAL ASSESSMENT ROLL
Dear Property Owner:

The Muskegon City Commission has previously approved the project described below and will now
consider final confirmation of the special assessment roll:

                         DENMARK ST.,LAKESHORE DR. TO CROZIER AVE.



A public confirmation hearing will be held in the City of Muskegon Commission Chambers on Tuesday,
SEPTEMBER 26,2006 at 5:30P.M. You are entitled to appear at this hearing, either in person, by agent
or in writing to express your opinion, approval, or objection concerning the special assessment. Written
appearances or objections must be made at or prior to the hearing.

YOU ARE HEREBY NOTIFIED THAT YOU HAVE THE RIGHT TO PROTEST YOUR ASSESSMENT
EITHER IN WRITING OR IN PERSON AT THE HEARING. ALSO, IF THE SPECIAL ASSESSMENT IS
CONFIRMED SEPTEMBER 26,2006 YOU WILL HAVE THIRTY (30) DAYS FROM THE DATE OF THE
CONFIRMATION TO FILE A WRITTEN APPEAL WITH THE MICHIGAN TAX TRIBUNAL (517-334-4712)
OR EMAIL ADDRESS: [email protected]. HOWEVER, UNLESS YOU PROTEST AT THIS
HEARING EITHER IN WRITING OR BY AGENT, OR IN WRITING BEFORE OR AT THE HEARING,
YOUR RIGHT TO APPEAL TO THE MICHIGAN TAX TRIBUNAL WILL BE LOST.



The final projected cost of the street improvement portion of the project is $286,600.00 of which
$61,249.92 will be paid by special assessment. If the special assessment is confirmed, your property will
be assessed $1252.16 based on 39.13 feet assessable front footage at $32 per assessable foot for the
street improvements. In addition, you will be assessed $0 for driveway approach and/or sidewalk
improvements made to your property for a total special assessment cost of $1252.16 Following are the
terms of the special assessment:

                                 Assessment Period: Ten (10) Years
                                       Interest Rate: 5% per year
                                 First Installment: $125.22 PER YEAR
                                     Due Date: November 27, 2006
The total assessment may be paid in full any time prior to the due date shown above
without interest being charged. After this date, interest will be charged at the rate
shown above on the outstanding balance. Assessments also may be paid over a ten
year period in ten equal principal installments. If you pay your assessment in
installments, your annual installment (including interest) will be included as a separate
item on your property tax bill each year. Therefore, if you pay your property taxes
through a mortgage escrow agent, you should notify them of this change. Early
payments may be made at any time and are encouraged.

PLEASE NOTE THAT IF THE ASSESSMENT IS NOT CONFIRMED AT THE PUBLIC
HEARING YOU WILL BE NOTIFIED. IF THE ASSESSMENT IS CONFIRMED, THIS
LETTER WILL REPRESENT YOUR INITIAL BILLING IF YOU WISH TO PAY IN FULL
PRIOR TO THE DUE DATE AND AVOID INTEREST COSTS. OTHERWISE, YOU
WILL AUTOMATICALLY BE BILLED ON AN INSTALLMENT BASIS WITH THE FIRST
INSTALLMENT SHOWN ON YOUR NEXT PROPERTY TAX BILL

If you have any specific questions about the work done please call the Engineering
Department at 231- 724-6707 before the hearing date.

Please refer to the enclosed sheet entitled Special Assessment Payment Options for
more information on the payment options and Application for Waiver of Special
Assessment for financial assistance.


Sincerely,



Mohammed AI-Shatel, P.E.
City Engineer




Enclosures
                     Special Assessment Payment Options
Property owners in the City of Muskegon who are being specially assessed for street, sidewalk or other public
improvements may pay their assessment in the following ways:
I. Lump Sum Payment in Full
Assessments may be paid in full within sixty (60) days of the confirmation of the special assessment roll
without interest.

II. Installment Payments
Assessments not paid within the first sixty (60) days may be paid in installments over several years as follows:

       Street and Alley Assessments- Ten (1 0) years equal annual principal payments. For example, if the
       amount of your assessment is $850.00, you will be billed $85.00 per year plus applicable interest as
       described below.

       Driveway, Sidewalk, and Approach Assessments- Ten (10) years equal annual principal payments
       plus applicable interest as described below.

       Interest- Simple interest is charged at the rate of 5.00% per year unless the City has borrowed money
       to complete the project for which you are assessed and has pledged you assessments for repayment of
       the borrowed money. In such cases, the interest you are charged is equal to the interest rate the City
       must pay on the borrowed money plus 1.00%.

Ill. Special Assessment Deferral (Low Income Seniors and Disabled Persons)
To qualify for a special assessment deferral you or your spouse (if jointly owned) must:

   •   Be 65 years or older or be totally or permanently disabled.

   •   Have been a Michigan resident for five (5) years or more and have owned and occupied the homestead
       being assessed for five (5) years or more.

   •   Be a citizen of the U.S.

   •   Have a total household income not in excess of $16,823.00

   •   Have a special assessment of $300.00 or more.

Under this program the State of Michigan will pay the entire balance owing of the special assessment,
including delinquent, current, and further installments. At the time of payment a lien will be recorded on your
property in favor of the State of Michigan. Repayment to the State must be made at the time the property is
sold or transferred or after the death of the owner(s). During the time the special assessment is deferred
interest is accrued at the rate of 6.00% per year.

IV. Further Information About the Above Programs
Further information about any of the above payment options may be obtained by calling either the City
Assessor's Office at 724-6708 or the City Treasurer's Office at 724-6720. Applications may be obtained at
the Muskegon County Equalization Office in the Muskegon County building or City of Muskegon Assessor's
Office in City Hall.

V. Additional Special Assessment Payment Assistance
Qualified low and moderate income homeowners who are being assessed may be eligible for payment
assistance through the City of Muskegon Community Development Block Grant (CDBG) Program. Assistance
from this program will be available to the extent that funds are available. To obtain further information and
determine whether you are eligible, contact the Community and Neighborhood Services Department at                  J
724-6717.
                                         CITY OF MUSKEGON
                          DENMARK ST., LAKESHORE DR. TO CROZIER AVE. H 1613
                         CDBG APPLICATION FOR WAIVER OF SPECIAL ASSESSMENT

                                                 HOUSEHOLD INFORMATION

Name:                                                             Birthdate:                    Social Security# _ _-_ _-_ _
Spouse:                                                           Birthdate:                    Social Security# _ _-_ _-_ _
Address:                                                  Phone:                           --------Race:
Parcel#                                                                Owner/Spouse Legally Handicapped Or Disabled? ( )Yes ( ) No
(Please refer to your assessment letter for this information)

Number Living in Household:                       List infonnation for household members besides owner/spouse here.
Name                                                              Birthdate                         Social Security # _ _-_ _-_ _
Name                                                              Birthdate                         Social Security # _ _-_ _-_ _
Name                                                              Birth date                        Social Security # _ _-_ _-_ _
Name                                                              Birthdate                         Social Security #   -   -
                              .
                                                       INCOME INFORMATION

ANNUAL Household Income:                                      $                  Wage earner:
(Must include all household income)
                                                                                 Wage earner:

                                                                                 Wage earner:

                                                                                 Wage earner:

                                             Total:       $

                                                      PROPERTY INFORMATION

Proof Of Ownership:         ( ) Deed       ( ) Mortgage             ( ) Land Contract

Homeowner's Insurance Co:                                                        Expiration Date:

Property Taxes: ( ) Cunent           ( ) Delinquent           Year(s) Due
(Property taxes must be cun·ent to qualify and will be verified by CDBG staft)

                                                        OWNER'S SIGNATURE

Owner's Signature:                                                                           Date:
By signing this application, the applicant verifies he/she owns and occupies the dwelling. The Applicant/Owner certifies
that all infonnation in this application, and all information furnished in suppmt ofthis application, is tme and complete to the
best of the Applicant/Owner's know ledge and belief. The property owner's signature will be required prior to the application
being processed. NO APPLICATION WILL BE ACCEPTED AFTER CONFIRMATION
                                                       FOR OFFICE USE ONLY
APPROVED ( )           DENIED ( )          DATE                        CENSUS TRACT NO.

SIGNATURE                                                              TITLE

COMMENTS/REMARKS
                                            **ATTENTION APPLICANT**
       Please see reverse side for instructions on providing proof of income, ownership, and property insurance.
                                        CITY OF MUSKEGON
                          DENMARK ST., LAKESHORE DR. TO CROZIER AVE. H 1613
                         CDBG APPLICATION FOR WAIVER OF SPECIAL ASSESSMENT
I Note: You may receive this application several times- Ifyou have already applied, please discard.
 Dear Resident:
 The City of Muskegon has selected your neighborhood and your property for its comprehensive sidewalk replacement
 program. City ordinances require that property owners be responsible for the repair/replacement of damaged or unsafe
 sidewalks adjoining their propeiiies. To assist homeowners, who may have difficulty paying the cost of sidewalk
 repairs, the City offers assessment waivers through the Community Development Block Grant (CDBG) Program for
 eligible households and families. If you meet the CDBG program qualifications, the City may pay the street
 assessment for you to the extent that funds are available.
 Application Requirements:
 -1" Applicants must submit proof that their total household income does not exceed 65% of Area Median
     Income (see chart below); Proof of income may include copies of Wage & Tax Statement (W-2's) from the year
     2004, pension or other benefit checks, bank statements for direct deposits or agency statements for all household
     mcome.
                                                          2005
                                             165% MEDIAN HOUSEHOLD INCOME CHART
                                                  FAMILY SIZE                INCOME LIMIT

                                                        I                         $28,275
                                                        2                          32,285
                                                        3                          36,295
                                                        4                          40,410
                                                        5                          43,530
                                                        6                          46,800
                                                        7                          50,050
                                                        8                          53,300
                                               For each extra, add                  3,250

-1" Applicants must submit proof that they both own and occupy property at the time of application; Land
    Contract purchasers must obtain approval of titleholder prior to receiving assistance. Proof of ownership should be
    a deed, mortgage, or land contract; proof of occupancy can be a copy of a driver's license or other official document
    showing both your name and address.

-1" Applicants must submit proof of current property insurance.

Please complete the first four (4) sections of the application on the reverse side of this notice, and return it, along with
supporting documentation, to:                        City of Muskegon
                                         Community & Neighborhood Services
                                             933 Terrace Street, 2nd Floor
                                                  Muskegon, MI 49440
For further information, please contact this office by calling 724-6717, weekdays from 8:30a.m. and 5:00p.m.

The City reserves the right to ver({y all application il?formation. if current owner sells the home prior to the .\pecial assessment confirmation,
the appUcation is no longer valid. The City also rese1ves the right to reject any applications that containsfals((ied infbrmation or insL!f!icient
documentation. The Cit.v must complete £he sidewalks. Costs incurred jl·om repairs done by you or a private contractor will not be reimbursed.
                                  CITY OF MUSKEGON
                               NOTICE OF PUBLIC HEARING
                        CONFIRMATION OF SPECIAL ASSESSMENT ROLL

                                  SPECIAL ASSESSMENT DISTRICT:

                       DENMARK ST., LAKESHORE DR. TO CROZIER AVE.

The location of the special assessment district and the properties proposed to be assessed are:

             All parcels abutting Denmark St. from Lakeshore Dr. to Crozier Ave.

PLEASE T AK.E NOTICE that a hearing to confirm the special assessment roll will be held at the City of
Muskegon Commission Chambers on September 26, 2006 at 5:30p.m.

At the time set for the hearing the City Commission will examine and determine whether to approve the
special assessment roll that has been prepared and submitted for the purpose of said hearing and for
examination by those persons to be assessed. The special assessment roll is on file and may be examined
during regular business hours at the City Engineer's office between 8:00a.m. and 5:00p.m. on weekdays,
except holidays.

YOU ARE HEREBY NOTIFIED THAT YOU HAVE A RIGHT TO PROTEST YOUR ASSESSMENT
EITHER IN WRITING OR IN PERSON AT THE HEARING. IF THE SPECIAL ASSESSMENT
ROLLS IS CONFIRMED, YOU WILL HAVE THIRTY (30) DAYS FROM THE DATE OF
CONFIRMATION OF THE ROLLS TO FILE A WRITTEN APPEAL WITH THE MICHIGAN STATE
TAX TRIBUNAL. HOWEVER, UNLESS YOU PROTEST AT THIS HEARING OR DID SO AT THE
PREVIOUS HEARING ON THIS SPECIAL ASSESSMENT DISTRICT EITHER IN PERSON OR BY
AGENT, OR IN WRITING BEFORE OR AT THE HEARING, YOUR RIGHT TO APPEAL TO THE
MICHIGAN TAX TRIBUNAL WILL BE LOST.

You are further notified that at the first hearing the City Commission determined that the special
assessment district should be created, the improvements made, and the assessments levied. The purpose
of this hearing is to hear objections to the assessment roll and to approve, reject, or correct the said roll.



                                                                              Linda Potter, Acting City Clerk
Publish: SEPTEMBER 16, 2006
                                              ADA POLICY
The City will provide necessary appropriate auxiliary aids and services, for example, signers for the
hearing impaired, audiotapes for the visually impaired, etc., for disabled persons who want to attend the
meeting, upon twenty-four hours notice to the City. Contact:

                                      Linda Potter, Acting City Clerk
                                 933 Terrace Street, Muskegon, MI 49440
                                  (231) 724-6705 ofTDD (231) 724-6773
Acct# 643-60447-5267
                                                                               RECEIVED
                                                                          CITY OF MUSKEGON
                                   CITY OF MUSKEGON                           MAR 14 2006
                                 Resolution No. 2006-19(a)              ENGINEERING DEPARTMENT



              Resolution At First Hearing Creating Special Assessment District
                For DENMARK ST., LAKESHORE DR. TO CROZIER AVE.
                   Location and Description of Prope1iies to be Assessed:
                          See Exhibit A attached to this resolution


RECITALS:

I.   A hearing has been held on February 28, 2006 at 5:30 o'clock p.m. at the City
     Commission Chambers. Notice was given by mail and publication as required by
     law.

2.   That estimates of costs of the project, a feasibility rep01i and valuation and benefit
     inf01mation are on tile with the City and have been reviewed for this hearing.

3.   At the hearing held February 28, 2006, there were 25 •93 %objections by the owners of
     the property in the district registered at the hearing either in writing received before or at
     the hearing or by owners or agents present at the hearing, and the Commission has
     considered the advisability of proceeding with the project.

FINDINGS:

I.   The City Commission has examined the estimates of cost to construct the project
     including all assessable expenses and determines them to be reasonable.

2.   The City Commission has considered the value of the property to be assessed and the
     value of the benefit to be received by each property proposed to be assessed in the district
     after the improvements have been made. The City Commission determines that the
     assessments of costs of the City project will enhance the value of the properties to be
     assessed in an amount at least equivalent to the assessment and that the improvement
     thereby constitutes a benefit to the property.

THEREFORE, BE IT RESOLVED:

I.   The City Commission hereby declares a special assessment district to include the
     property set forth in Exhibit A attached to this resolution.

2.   The City Commission determines to proceed with the improvements as set forth in the
     feasibility study and estimates of costs, and directs the City Engineer to proceed with
     project design, preparation of specifications and the bidding process. If appropriate and
     if bonds are to be sold for the purposes of financing the improvements, the Finance
     Department shall prepare plans for financing including submission of application to the
     Michigan Department of Treasury and the beginning of bond proceedings.
3.     The City Commission hereby appoints a Board of Assessors consisting of City
       Commissioners ·navis                                  and     Gawron
                                                                  ----------------------
       and the City Assessor who are hereby directed to prepare an assessment roll.
       Assessments shall be made upon front foot basis.

4.     Based on the City's Special Assessment policy and preliminary estimates it is expected
       that approximatel y 18.97% of the cost ofthe street improvement will be paid by special
       assessments.

5.     Upon submission ofthe special assessment roll, the City staff is hereby directed to notify
       all owners and persons interested in properties to be assessed of the hearing at which the
       City Commission will consider confitmation of the special assessment roll.


This resolution adopted.

       Ayes     Shepherd , Spataro, Warmington , Wierenga, Carter ,
                Davis, and Gawron

       Nays    None



                                                           CITY OF MUSKEGON


                                                           By LO- ~~
                                                                 Gail A. Kundinger, Clerk


                                   ACKNOWLEDGMENT

This reso lution was adopted at a meeting of the City Commission, held on February 28, 2006.
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
                                 EXHIBIT A


              DENMARK ST., LAKESHORE DR. TO CROZIER AVE.

                     SPECIAL ASSESSMENT DISTRICT

All properties abutting that section of DENMARK ST., LAKESHORE DR. TO CROZIER
                                          AVE.
...
·-2
(I)



0
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 (I)


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~as
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      I

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                      AFFIDAVIT OF MAILING


STATE OF MICHIGAN     )
                      ) ss
COUNTY OF MUSKEGON )

TO CREATE A SPECIAL ASSESSMENT DISTRICT FOR THE FOLLO,VING:

               Denmark St., Lakeshore Dr. to Crozier Ave.

THE DEPONENT SAYS THAT THE NOTICE OF HEARING WAS SERVED UPON
EACH OWNER OF OR PARTY IN INTEREST IN PROPERTY TO BE ASSESSED IN
THE SPECIAL ASSESSMENT DISTRICT WHOSE NAME APPEARS UPON THE
LAST TAX ASSESSMENT RECORDS OF THE CITY OF MUSKEGON BY
MAILING SUCH NOTICE IN A SEALED ENVELOPE BY FIRST CLASS UNITED
STATES MAIL, WITH POSTAGE PREPAID, ADDRESSED TO EACH SUCH
OWNER OR PARTY IN INTEREST AT THE ADDRESS SHOWN ON SAID LAST
TAX ASSESSMENT RECORDS BY DEPOSITING THEM IN AN OFFICIAL
UNITED STATES MAIL RECEPTACLE ON THE I:th Do  O~UARY, 2006.

                                          ~.                ~0
                                      GAIL A. KUNDINGER, CITY d ERK


SUBSCRIBED AND SWORN TO BEFORE ME THIS
  d 17J DAY OF tJ70 c c b        , 2006.
~           Rmc '.l'ruc Department
93~   Terr.ac:e Stred
POBox 29
Musk.egol). M.l49443· 0029

         Rt;     Na•tl(C MPrnposcd SpeciAl ~smcnt
                 Pntperty No. 24·2S-<»56-0006-00 at 1179 Dcnmatrk Sttcd

DeM SidMudutn!
l a1n.   wr.itin~ in respMse to yo\lr l~tner rcg~t'dins tn¢ Proposed S~iol Tax As~essMent t(\.r the
constructicm wotk just r~centl)' CO•Ylplc~ on l'>enmruk               ( El.m writing in prolest ro this ·•special Tax
Assessment". th<: cr\tire t>r<',j~cl h~ three tli>C ~.xtml't orl:tlniZttlions Cln it nnd they own the mn.io~:iry oi't~
property not the resldctlCt, <.me: i!l tht: middle school a.nd the other \W~ are churche:s. Wo r>aY pro~ny
htx. ·lor the school und muds !<) be maint:ain~d Md the~ n)ads have not been mttintnincd in numy yenn:.
T eun't believ~. considering the nmounc of pro~rty ta>< already being puid, that you WI)Uici even consider
asking ihc re~idence~ 1o pny odditionul umounts for something that should alr.c:ady be covered by the
.pro.~ny wx thr:y ure now p~yit~g.          Again, not CCI mention the ~~~t propcrti~;::; on this propo11cd
~ss"ssmonl ~rc   t.."'x elCem~l otgnnizacions.

Seven~! re:;idenoe. includin& ()Ut residence, ha.v~ had additional plumbing problem~ ~luted with the
work don~ Md i\l3r\)' plumbing ~mpnnie11 hove been out ju:~t in the Pft.~t wook tryint; to remedy the
situation. Thjs conlltructiQn project hn..1SnV~ .:10 A..L\8
Date: September 26, 2006
To:     Honorable Mayor and City Commissioners

From: Finance Director
RE:     Bond Authorizing Resolution 2006 Public Improvement Bonds



SUMMARY OF REQUEST:                     The City is undertaking construction of a new Central
Fire Station and has previously undertaken major recreation projects including completion of
the lakeshore trail and improvements at Hartshorn Marina. To finance these projects, it is
necessary to issue public improvement bonds. Previously the Commission adopted a Notice
of Intent Resolution which notified citizens of the City's intent to borrow and allowed for a 45-
day period during which petitions could be fil ed to force a referendum on this bond issue.
The 45-day period elapsed with no petitions being filed and the next step in the bonding
process is adoption of the attached bond authorizing resolution.

FINANCIAL IMPACT: The attached resolution authorizes the City to borrow
$5,400,000, which will be used as follows (amounts include issuance costs): Central Fire
Station ($3,696,970); trail project match ($516,067); Marina project match ($1 ,032, 140);
Fisherman's Landing restroom reimbursement ($154,823).

The bonds will be paid from CDBG funds (fire station portion), DDA and Marina funds (as
available), Fisherman's Landing contract payments, and general funds over 25 years. The
bonds will carry the City's limited full faith and credit. This means that if primary income
sources fall short of the amount needed to make annual debt service payments, the City's
General Fund will be required to make up the shortfall.

The full future financial impact will not be known until bonds are sold and interest rates
determined. Bonds are scheduled for sale on Tuesday, October 10'" and the results will be
brought to the City Commission that same evening for award.

BUDGET ACTION REQUIRED: None at this time. Projected debt service costs
were include in the 2007 budget and will be budgeted in future years as well until the bonds
are fully retired (2032).

STAFF RECOMMENDATION:                     Approval of the attached bond authorizing resolution.
Founded in 1852                                                                                                               MICHIGAN: Ann Arbor
by Sidney Davy Miller                                                                                                        Detroit • Grand Rapids
                                                  MILLER                                                                       Howell • Kalamazoo
                                                                                                                                 Lansing • Monroe
                                                                                                                                    Saginaw • Troy
                                                  CANFIELD
                                                  MillER, CANFIELD, PADDOCKANoSTONE, P.L.C.
                                                                                                                                     NewYork,NY
                                                                                                                                          Naples
                                                                                                                                   FLORIDA:
                                                                                                                                        Pensacola
                                                                                                                             CANADA: Windsor, ON
JOEL L. PIELL                                            !50 West Jefferson, Suite 2500                                                   Gdynia
                                                                                                                                    POLAND:
TEL: (313) 496-7518                                        Detroit, Michigan 48226                                              Warsaw • Wrodaw
FAX: (313) 496-8450
                                                             TEL: (313) 963-6420
E-MAIL: [email protected]
                                                             FAX: (313) 496-7500
                                                            www.millercanfield.com

                                                              September 13, 2006
         Mr. Timothy J. Paul
         Finance Director, City of Muskegon
         933 Terrace Street
         P.O. Box536
         Muskegon, MI 49443-0536                                                                                      Via Email

         Dear Tim:

                 I have received the preliminary POS from Warren's office and have suggested that the bonds be
         offered for sale on October I O'\ which as I understand it is a regular meeting date of the City
         Commission. Based on the specs, I have prepared the bond authorizing resolution which I attach
         herewith. I am also sending this by regular mail.

                 May I ask you to review the resolution and if it meets with your approval, submit same to the City
         Commission. I have assumed that you will do this at the September 26'h meeting. Should you have any
         questions or comments regarding the resolution, please let me know.

                 As in the past, I would ask that you cause three certified copies of the resolution be returned to
         me after its adoption.

                   If you have any questions or if I may be of any other assistance, please do not hesitate to contact
         me.

                                                   V cry truly yours,

                                                   MILLER,              ~L~ AND STONE, P.L.C.

                                                   By:



         cc:    Mr. Warren M. Creamer, III (w/enclosure) Via Email
         Hard copies via U.S. Mail
         DISCLOSURE UNDER TREASURY CIRCULAR 230: The United States Federal tax advice contained in this document and its
         attachments, if any, may not be used or referred to in the promoting, marketing or recommending of any entity, investment plan
         or arrangement, nor is such advice intended or written to be used, and may not be used, by a taxpayer for the purpose of avoiding
         Federal tax penalties. Advice that complies with Treasury Circular 230's "covered opinion" requirements (and thus, may be
         relied on to avoid tax penalties) may be obtained by contacting the author of this document.
         DELIB:2771570.1\063684-00035
Affirmative Action
(231)724~6703
FAX:    (231)722~1214


Assessor/Equalization
(231)724~6708
FAX:    (231)726~5181


Cemetery Deparhnent
(231 )724-6783
FAX: (231)726-5617

City Manager
(231)724~6724
FAX:    (231}722~1214


Civil Service
(231 )724~671 6
FAX: (231)724-4405

Clerk
(231)724~6705
FAX: (231)724-4178

Community and
 Neigh. Services
{231)724-6717           September 28, 2006
FAX: (231)726-2501

Computer Info.
 System1
(231)724~6744
FAX: (231)722-4301
                        Mr. Joel L. Piell
Engineering Dept.       Miller, Canfield, Paddock
(231)724~6707
FAX: (231)727-6904       & Stone, P.L.C.
                        150 West Jefferson, Suite 2500
Finance Dept.
(231)724-6713           Detroit, MI 48226
FAX: (231)724-6768

Fire Department         Dear Mr. Piell:
(231)724~6792
FAX: (231)724-6985
                        Enclosed are three certified copies of the Resolution Authorizing Limited Tax
lncomeTn
(231)724~6770
                        General Obligation Bonds, Series 2006, that were approved by the City
FAX: (231)724-6768      Commission at their September 26th meeting.
Inspection Services
(231)724-6715           If you have any questions, please call me at (231) 724-6705.
FAX; (231)728-4371

Leisure Services
(231)724~6704
                        Thank you,
FAX: (231)724-1196

Mayor's Office
(231)724~6701
FAX: (231)722-1214
                        Linda Potter
Planning/Zoning
(23 1)724-6702
                        Acting City Clerk
FAX: (231)724-6790

Police Deptartment
                        Enc.
(231)724-6750
FAX: (231)722-5140

Public Works Dept.
(231 )724-41 00
FAX: (231)722-4188

Treasurer's Office
(231 )724-6720
FAX: (231)7l4-6768

Water Billing Dept.
(231)724-6718
FAX: (231)724-6768

Water Filtration
(231)724-4106
FAX: (231)755-5290
                          City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
                                                     w\vw.shorelinecity.com
                                                                                                                                         2006-Bl(a)




                                         RESOLUTION AUTHORIZING
                                  LIMITED TAX GENERAL OBLIGATION BONDS,
                                                SERIES 2006


                                                         City of Muskegon
                                               County of Muskegon, State of Michigan



       Minutes of a regular meeting of the City Commission of the City of Muskegon, County

of Muskegon, State of Michigan (the "City" or "Issuer"), held on September 26, 2006, at 5:30

o'clock p.m., Eastern Daylight Savings Time.

       PRESENT: Members _ __:S::Jp;::a::_t::_a:::.::_r.:::_o_!_,---"W-"'a"'r-"m"'i"'n"'g'-'t'-'o'-'n""'' ---'W"-1=-'e==-r=-==-e'-'n-"'g-"o-'-'----"C"'a"'r'-'t'-'e'-'r'-' '----

        Davis, and Gawron

       ABSENT:                  Members __::S:.:h.:ce"-'p"'h:.:.e=-=-r-=-d_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

       The following preamble and resolution were offered by Member "'s-"p-=a'-"t"'a"'r"'o'--------

and supported by Member ---"-G00
                              a_,_w-"-r-"'o-'-'n_ _ _ _ __

       WHEREAS, the Issuer does hereby determine that it is necessary to acquire and construct

a fire station and recreational improvements consisting of certain marina and trail system

improvements together with all necessary and related appurtenances and attachments therefor

(the "Project"); and

       WHEREAS, the cost of the Project together with financing costs is estimated to be not

less than Five Million Four Hundred Thousand Dollars ($5,400,000); and

       WHEREAS, to finance the cost of the Project, this City Commission deems it necessary

to borrow the principal sum of Five Million Four Hundred Thousand Dollars ($5,400,000) and

issue capital improvement bonds pursuant to Act 34, Public Acts of Michigan, 2001 ("Act 34"),
    to pay all or part of the cost of the Project; and

              WHEREAS, a notice of intent was published in accordance with Act 34 which provides

    that the capital improvement bonds may be issued without a vote of the electors of the Issuer

    unless a proper petition for an election on the question of the issuance of the bonds is filed with

    the City Clerk within a period of forty-five (45) days from the date of publication; and

              WHEREAS, no petition for referendum has been filed.

              NOW, THEREFORE, BE IT RESOLVED THAT:

              1.    Authorization of Bonds; Bond Terms. Bonds of the Issuer designated LIMITED

    TAX GENERAL OBLIGATION BONDS, SERIES 2006 (the "Bonds") are authorized to be
3
~   issued in the aggregate principal sum of not to exceed Five Million Four Hundred Thousand
~
~   Dollars ($5,400,000) for the purpose of paying all or part of the cost of the Project, including the

i
~
    costs incidental to the issuance, sale and delivery of the Bonds. The issue shall consist of bonds

~ in fully-registered form of the denomination of $5,000, or multiples thereof not exceeding for
~
•   each maturity the maximum principal amount of that maturity, numbered consecutively in order

    of registration, dated as of the date of their delivery to the original purchaser. The Bonds shall

    bear interest, mature, and be payable at the times and in the manner set forth in Sections 6 and 7

    hereof.

              The Bonds shall be subject to redemption prior to maturity in the manner and at the times

    and prices set forth in Sections 6 and 7 hereof.

           Interest shall be payable to the registered owner of record as of the 15th day of the month

    prior to the payment date for each interest payment.        The record date of determination of

    registered owner for purposes of payment of interest as provided in this paragraph may be



                                                       -2-
     changed by the Issuer to conform to market practice in the future. Interest shall be payable to

     the registered owner of record as of the 15th day of the month preceding the payment date for

     each interest payment. The principal of the Bonds shall be payable upon presentation and

     surrender to the Transfer Agent (as defined below).

               Unless waived by any registered owner of Bonds to be redeemed, official notice of

     redemption shall be given by the Transfer Agent on behalf of the Issuer. Such notice shall be

     dated and shall contain at a minimum the following information: original issue date; maturity

     dates; interest rates; CUSIP numbers, if any; certificate numbers (and in the case of partial

     redemption) the called amounts of each certificate; the place where the Bonds called for
0
-'
~    redemption are to be surrendered for payment; and that interest on the Bonds or portions thereof
~
     called for redemption shall cease to accrue from and after the redemption date.

               In addition, further notice shall be given by the Transfer Agent in such manner as may be

     required or suggested by regulations or market practice at the applicable time, but no defect in
g
•    such further notice nor any failure to give all or any portion of such further notice shall in any

     manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed

     herein.

               The Bonds shall be issued in book-entry only form through The Depository Trust

     Company in New York, New York ("DTC") and the City Finance Director and Treasurer are

     each authorized to execute such custodial or other agreement with DTC as may be necessary to

     accomplish the issuance of the Bonds in book-entry only form and to make such changes in the

     Bond Form within the parameters of this resolution as may be required to accomplish the

     foregoing.



                                                      -3-
             J. P. Morgan Trust Company, National Association, Detroit, Michigan, is hereby

      appointed to serve as bond registrar, paying agent and transfer agent (the "Transfer Agent") for

      this issue. The Issuer reserves the right to replace the Transfer Agent at any time upon written

      notice to the registered owners of record of the Bonds not less than sixty (60) days prior to an

      interest payment date.

             2.     Execution of Bonds. The Bonds of this issue shall be executed in the name of the

      Issuer with the facsimile signatures of the Mayor and the Clerk of the Issuer and shall have the

      seal of the Issuer, or a facsimile thereof, printed or impressed on the Bonds. No Bond shall be

      valid until authenticated by an authorized officer or representative of the Transfer Agent. The

'i~   Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the
~
0
~     Transfer Agent to the purchaser or other person in accordance with instructions fi·om the
6
~     Treasurer of the Issuer upon payment of the purchase price for the Bonds in accordance with the

~
g
      bid therefor when accepted.
•            3.     Transfer of Bonds. The Transfer Agent shall keep the books of registration for

      this issue on behalf of the Issuer. Any Bond may be transferred upon such registration books by

      the registered owner of record, in person or by the registered owner's duly authorized attorney,

      upon surrender of the Bond for cancellation, accompanied by delivery of a duly executed written

      instrument of transfer in a form approved by the Transfer Agent. Whenever any Bond or Bonds

      shall be surrendered for transfer, the Issuer shall execute and the Transfer Agent shall

      authenticate and deliver a new Bond or Bonds, for like aggregate principal amount.          The

      Transfer Agent shall require the payment by the bondholder requesting the transfer of any tax or

      other governmental charge required to be paid with respect to the transfer.



                                                     -4-
       4.     Limited Tax Pledge; Debt Retirement Fund; Defeasance of Bonds. The Issuer

hereby pledges its limited tax full faith and credit for the prompt payment of the Bonds. The

Issuer shall each year budget the amount of the debt service coming due in the next fiscal year

on the principal of and interest on the Bonds and shall advance as a first budget obligation from

its general funds available therefor, or, if necessary, levy taxes upon all taxable property in the

Issuer subject to applicable constitutional and statutory tax rate limitations, such sums as may be

necessary to pay such debt service in said fiscal year.

       The Treasurer is authorized and directed to open a depositary account with a bank or trust

company designated by the City Commission, to be designated 2006 LIMITED TAX

GENERAL OBLIGATION BONDS DEBT RETIREMENT FUND (the "Debt Retirement

Fund"), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked

and used solely for the purpose of paying principal of and interest on the Bonds as they mature.

       In the event cash or direct obligations of the United States or obligations the principal of

and interest on which are guaranteed by the United States, or a combination thereof, the

principal of and interest on which, without reinvestment, come due at times and in amounts

sufficient to pay at maturity or irrevocable call for earlier optional redemption, the principal of,

premium, if any, and interest on the Bonds, shall be deposited in trust, this resolution shall be

defeased and the owners of the Bonds shall have no further rights under this resolution except to

receive payment of the principal of, premium, if any, and interest on the Bonds from the cash or

securities deposited in trust and the interest and gains thereon and to transfer and exchange

Bonds as provided herein.

       5.     Construction Fund; Proceeds of Bond Sale. The City Treasurer is authorized and



                                                -5-
directed to open a separate depositary account with a bank or trust company designated by the

City Commission, to be designated 2006 LIMITED TAX GENERAL OBLIGATION BONDS

CONSTRUCTION FUND (the "Construction Fund") and deposit into said Construction Fund

the proceeds of the Bonds less accrued interest and premium, it any, which shall be deposited

into the Debt Retirement Fund. The moneys in the Construction Fund shall be used solely to

pay the costs of the Project and the costs of issuance of the Bonds.

       6.     Bond Form. The Bonds shall be in substantially the following form:




                                                -6-
                                     UNITED STATES OF AMERICA
                                        STATE OF MICHIGAN
                                       COUNTY OF MUSKEGON

                                           CITY OF MUSKEGON

                            LIMITED TAX GENERAL OBLIGATION BONDS
                                        SERIES 2006



      Interest                    Maturity                     Date of
      Rate                        Date                         Original Issue              CUSIP



      Registered Owner:

~     Principal Amount:                                                                    Dollars
0:
w
~
~
i'l
             The City of Muskegon, County of Muskegon, State of Michigan (the "Issuer"),
~     acknowledges itself to owe and for value received hereby promises to pay to the Registered
~     Owner specified above, or registered assigns, the Principal Amount specified above, in lawful
~     money of the United States of America, on the Maturity Date specified above, unless prepaid
~     prior thereto as hereinafter provided, with interest thereon from the Date of Original Issue
•     specified above or such later date to which interest has been paid, until paid, at the Interest Rate
      per annum specified above, first payable on April 1, 2007 and semiannually thereafter.
      Principal of this bond is payable at the designated office of J.P. Morgan Trust Company,
      National Association, Detroit, Michigan, or such other transfer agent as the Issuer may hereafter
      designate by notice mailed to the registered owner not less than sixty (60) days prior to any
      interest payment date (the "Transfer Agent"). Interest on this bond is payable to the registered
      owner of record as of the fifteenth (15th) day of the month preceding the interest payment date
      as shown on the registration books of the Issuer kept by the Transfer Agent by check or draft
      mailed to the registered owner of record at the registered address. For prompt payment of this
      bond, both principal and interest, the full faith, credit and resources of the Issuer are hereby
      irrevocably pledged.

             This bond is one of a series of bonds aggregating the principal sum of $5,400,000, issued
      for the purpose of paying all or part of the cost of certain capital improvements for the Issuer.
      This bond is issued under the provisions of Act 34, Public Acts of Michigan, 2001, and a duly
      adopted resolution of the Issuer.

             Bonds of this issue maturing in the years 2008 through 2016, inclusive shall not be


                                                      -7-
    subject to redemption prior to maturity. Bonds of this issue maturing in the years 2017 through
    2032, inclusive, shall be subject to redemption prior to maturity, at the option of the Issuer, in
    such order as the Issuer shall determine, on any date on or after October 1, 2016, at par plus
    accrued interest.

            Notice of redemption of any bond or portion thereof shall be given by the transfer agent
    at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at
    the registered address shown on the registration books kept by the transfer agent. Bonds shall be
    called for redemption in multiples of $5,000 and any bond of a denomination of more than
    $5,000 shall be treated as representing the number of bonds obtained by dividing the
    denomination of the bond by $5,000 and such bond may be redeemed in pati. Notice of
    redemption for a bond redeemed in part shall state that upon surrender of the bond to be
    redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion
    of the bonds surrendered shall be issued to the registered owner thereof. No further interest on a
    bond or portion thereof called for redemption shall accrue after the date fixed for redemption,
    whether presented for redemption or not, provide funds are on hand with the transfer agent to
    redeem the bond or portion thereof.

~           This bond is transferable only upon the registration books of the Issuer kept by the
 "'z Transfer Agent by the registered owner of record in person, or by the registered owner's
 ~
 ~ attorney duly authorized in writing, upon the surrender of this bond together with a written
"g instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner
 ~   or the registered owner's attorney duly authorized in writing, and thereupon a new registered
 g bond or bonds in the same aggregate principal amount and of the same maturity shall be issued
~ to the transferee in exchange therefor as provided in the resolution authorizing this bond and
~ upon the payment of the charges, if any, therein prescribed .
•           This bond, including the interest thereon, is payable as a first budget obligation from the
    general funds of the Issuer, and· the Issuer is required, if necessary, to levy ad valorem taxes on
    all taxable property in the Issuer for the payment thereof, subject to applicable constitutional and
    statutory tax rate limitations.

           It is hereby certified and recited that all acts, conditions and things required by law to be
    done, precedent to and in the issuance of this bond and the series of bonds of which this is one,
    exist and have been done and performed in regular and due form and time as required by law,
    and that the total indebtedness of the Issuer, including this bond, does not exceed any
    constitutional and statutory debt limitation.

          This bond is not valid or obligatory for any purpose until the Transfer Agent's Certificate
    of Authentication on this bond has been executed by the Transfer Agent.

           IN WITNESS WHEREOF, the Issuer, by its City Commission, has caused this bond to
    be sigued in the name of the Issuer by the facsimile signatures of its Mayor and Clerk and a
    facsimile of its corporate seal to be printed hereon, all as of the Date of Original Issue.



                                                    -8-
         CITY OF MUSKEGON
         County of Muskegon
         State of Michigan


         By _ _ _ _ [facsimile], _ _ __

              Its Mayor


(SEAL)

         By _ _ _ _ ,[facsimile], _ _ __

              Its Clerk




             -9-
                   (Form of Transfer Agent's Certificate of Authentication)


DATE OF AUTHENTICATION:


                          CERTIFICATE OF AUTHENTICATION

      This bond is one of the bonds described in the within-mentioned resolution.



Transfer Agent



By~~~~~~~~-

 Authorized Signatory




                         [Bond printer to insert form of assignment]




                                            -10-
       7.     Notice of Sale and Sale of Bonds. The City Clerk is authorized to upon receipt of

notice of qualified status under Act 34 fix a date of sale for the Bonds; and publish notice of sale

of the Bonds in The Bond Buyer, New York, New York.                The notice of sale shall be in

substantially the following form:




                                              -11-
                                      OFFICIAL NOTICE OF SALE

                                       $5,400,000
                                  CITY OF MUSKEGON
                        COUNTY OF MUSKEGON, STATE OF MICHIGAN
                   LIMITED TAX GENERAL OBLIGATION BONDS, SERIES 2006

           SEALED OR FAXED BIDS: Bidders may submit bids for the purchase of the above
     bonds as follows:

            SEALED BIDS. The City of Muskegon (the "Issuer") will receive sealed bids at the
     offices of the City Clerk located at 933 Terrace St., Muskegon, Michigan on Tuesday, the lOth
     day of October, 2006 until _: _ _ .m., Eastern Daylight Time, and simultaneously at the
     offices of The Municipal Advisory Council of Michigan located at 1445 First National Building,
     Detroit, Michigan 48226 which time and place said bids will be publicly opened and read.

            FAXED BIDS: Signed bids may be submitted by fax by members of The Municipal
     Advisory Council of Michigan to The Municipal Advisory Council of Michigan at (313) 963-
~    0943, provided that faxed bids must arrive before the time of sale, the bidder bears all risks of
"'   transmission failure and the GOOD FAITH DEPOSIT MUST BE MADE AND RECEIVED as
~    described in the section entitled "GOOD FAITH" below.
~
"
I          ELECTRONIC BIDS: Electronic bids will also be received on the same date and until the
     same time by Bidcomp/Parity as agent of the undersigned. Further information about
"~   Bidcomp/Parity, including any fee charged, may be obtained from Bidcomp!Parity, Anthony
~    Leyden or CLIENT SERVICES, 1359 Broadway, Second Floor, New York, New York 10018,
~    (212) 849-5021. NO ELECTRONIC BID WILL BE ACCEPTED UNLESS THE BIDDER
     HAS SUBMITTED A FINANCIAL SURETY BOND OR A CERTIFIED OR CASHIERS
     CHECK IN THE AMOUNT DESCRIBED IN THE SECTION ENTITLED "GOOD FAITH"
     BELOW. IF ANY PROVISION OF THIS NOTICE OF SALE SHALL CONFLICT WITH
     INFORMATION PROVIDED BY BIDCOMP!PARITY, AS THE APPROVED PROVIDER
     OF ELECTRONIC BIDDING SERVICES, THIS NOTICE OF SALE SHALL CONTROL.

           Bidders may choose any means to present bids but a bidder may not present a bid by
     more than one means.

            BOND DETAILS: The bonds will be registered bonds of the denomination of$5,000 or
     multiples thereof not exceeding for each maturity the maximum principal amount of that
     maturity, originally dated as of delivery of the bonds to the original purchaser thereof, numbered
     in order of registration, and will bear interest from their date payable on April 1, 2007 and
     semiannually thereafter.




                                                   -12-
           The bonds will mature on the 1st day of October in each ofthe years, as follows:


                                        Year                       Amount
                                        2008                         $ 45,000
                                        2009                           50,000
                             2010 through 2018, inclusive              70,000
                                        2019                          295,000
                                        2020                          305,000
                                    2021 and 2022                     315,000
                                        2023                          320,000
                                        2024                          340,000
                                2025, 2026 and 2027                   345,000
                                      2028-2032                       350,000

          INTEREST RATE AND BIDDING DETAILS: The bonds shall bear interest at rate or
   rates not exceeding 6% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8
~ or 1120 of 1%, or both. The interest on any one bond shall be at one rate only and all bonds
'i maturing in any one year must carry the same interest rate. The difference between the highest
~ and the lowest interest rate bid shall not exceed three (3) percent. THE INTEREST RATE FOR
g EACH SERIAL OR TERM BOND MATURITY SHALL BE EQUAL TO OR GREATER
~ THAN THE PRECEDING SERIAL OR TERM BOND MATURITY. No proposal for the
~ purchase of less than all of the bonds or at a price less than 99% of their par value will be
" considered.
~
i          TERM BONDS: Bidders shall have the option of designating bonds maturing in the
    years 2008 through 2032 inclusive, as serial bonds, term bonds, or both. The bid must designate
    whether each of the principal amounts shown above for the years 2008 through 2032, inclusive,
    represent a serial maturity or a mandatory redemption requirement for a term bond maturity.
    The principal amounts maturing in the years 2008 through 2032, inclusive, shall be represented
    by either a serial bond maturity, a mandatory redemption requirement or a combination of both.
    Any such designation must be made at the time the bid is submitted.

           PRIOR REDEMPTION OF BONDS: Bonds of this issue maturing in the years 2008
    through 2016 shall not be subject to redemption prior to maturity. Bonds maturing in the years
    2017 through 2032 shall be subject to redemption prior to maturity, at the option of the Issuer, in
    such order as the Issuer shall determine, on any date on or after October 1, 2016 at par plus
    accrued interest to the date of redemption.

           In case less than the full amount of an outstanding bond is called for redemption, the
    transfer agent, upon presentation of the bond called for redemption, shall register, authenticate
    and deliver to the registered owner of record a new bond in the principal amount of the portion
    of the original bond not called for redemption.



                                                  -13-
        Notice of redemption of any bond or portion thereof shall be given by the transfer agent
at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at
the registered address shown on the registration books kept by the transfer agent. Bonds shall be
called for redemption in multiples of $5,000 and any bond of a denomination of more than
$5,000 shall be treated as representing the number of bonds obtained by dividing the
denomination of the bond by $5,000 and such bond may be redeemed in pmi. Notice of
redemption for a bond redeemed in part shall state that upon surrender of the bond to be
redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion
of the bonds surrendered shall be issued to the registered owner thereof. No further interest on a
bond or potiion thereof called for redemption shall accrue after the date fixed for redemption,
whether presented for redemption or not, provide funds are on hand with the transfer agent to
redeem the bond or portion thereof.

        BOOK-ENTRY ONLY: The bonds will be issued in book-entry only form as one fully
registered bond per maturity and will be registered in the name of Cede & Co., as bondholder
and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act
as securities depository for the bonds. Purchase of the bonds will be made in book-entry-only
form, in the denomination of $5,000 or any multiple thereof. Purchasers will not receive
certificates representing their interest in bonds purchased. It will be the responsibility of the
purchaser to obtain DTC eligibility. Failure of the purchaser to obtain DTC eligibility shall not
constitute cause for a failure or refusal by the purchaser to accept delivery of and pay for the
bonds.

        TRANSFER AGENT AND REGISTRATION:                    Principal shall be payable at the
principal corporate trust office of J.P. Morgan Trust Company, National Association, Detroit,
Michigan, or such other transfer agent as the Issuer may hereafter designate by notice mailed to
the registered owner of record not less than 60 days prior to an interest payment date. Interest
shall be paid by check or draft mailed to the registered owner of record as shown on the
registration books of the Issuer as of the 15th day of the month prior to an interest payment date.
The bonds will be transferred only upon the registration books of the Issuer kept by the transfer
agent.

       PURPOSE AND SECURITY: The bonds are authorized for the purpose of paying all or
part of the cost of certain capital improvements together with all necessary appurtenances and
attachments therefor in the Issuer. The bonds will be a first budget obligation of the Issuer,
payable as a first budget obligation from the general funds of the Issuer including the collection
of ad valorem taxes on all taxable property in the Issuer subject to applicable constitutional and
statutory tax rate limitations. The rights or remedies of bondholders may be affected by
bankruptcy, insolvency, fraudulent conveyance or other laws affecting creditors' rights generally
now existing or hereafter enacted and by the application of general principles of equity including
those relating to equitable subordination.

      GOOD FAITH: A certified or cashier's check drawn upon an incorporated bank or trust
company or a Financial Surety Bond, in the amount of $108,000, and payable to the order of the
Treasurer of the Issuer is required for each bid as a guaranty of good faith on the part of the

                                              -14-
    bidder, to be forfeited as a portion of the Issuer's damages if such bid be accepted and the bidder
    fails to take up and pay for the bonds. If a check is used, it must accompany each bid. If a
    Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
    bond in the State of Michigan and such bond must be submitted to the Issuer's financial advisor
    prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose
    good faith deposit is guaranteed by such Financial Surety Bond. If the bonds are awarded to a
    bidder utilizing a Financial Surety Bond, then that purchaser (the "Purchaser") is required to
    submit its good faith deposit to the Issuer in the form of a cashier's check (or wire transfer such
    amount as instructed by the Issuer not later than Noon, Eastern Time, on the next business day
    following the award. If such good faith deposit is not received by that time, the Financial Surety
    Bond may be drawn upon by the Issuer to satisfy the good faith deposit requirement. The good
    faith deposit will be applied to the purchase price of the bonds. In the event the purchaser fails
    to honor its accepted bid, the good faith deposit will be retained by the Issuer. No interest shall
    be allowed on the good faith check and checks of the unsuccessful bidders will be returned to
    each bidder's representative or by overnight delivery. The good faith check of the successful
    bidder will be cashed and payment for the balance of the purchase price of the bonds shall be
    made at the closing.

            AWARD OF BONDS-TRUE INTEREST COST: The bonds will be awarded to the
~
~   bidder whose bid produces the lowest true interest cost determined in the following manner: the
~   lowest true interest cost will be the single interest rate (compounded on April 1, 2007 and semi
5   annually thereafter) necessary to discount the debt service payments from their respective
~   payment dates to November 1, 2006, in an amount equal to the bid price, excluding accrued
~   interest.
~
~        TAX MATTERS: In the opinion of bond counsel, assuming compliance with certain
> covenants, interest on the bonds is excluded from gross income for federal income tax purposes
  as described in the opinion, and the bonds and interest thereon are exempt from all taxation in
  the State of Michigan except inheritance and estate taxes and taxes on gains realized from the
  sale, payment or other disposition thereof. The successful bidder will be required to furnish,
  prior to the delivery of the bonds, a certificate in a form acceptable to bond counsel as to the
  "issue price" of the bonds within the meaning of Section 1273 of the Internal Revenue Code of
  1986.

           QUALIFIED TAX EXEMPT OBLIGATIONS: The Issuer has designated the bonds as
    "qualified tax exempt obligations" for purposes of deduction of interest by financial institutions.

           LEGAL OPINION: Bids shall be conditioned upon the approving opinion of Miller,
    Canfield, Paddock and Stone, P.L.C., attorneys of Detroit, Michigan, a copy of which opinion
    will be furnished without expense to the purchaser of the bonds at the delivery thereof. The fees
    of Miller, Canfield, Paddock and Stone, P.L.C. for services rendered in connection with such
    approving opinion are expected to be paid from bond proceeds. Except to the extent necessary
    to issue its approving opinion as to validity of the above bonds, Miller, Canfield, Paddock and
    Stone, P.L.C. has not been requested to examine or review and has not examined or reviewed
    any financial documents, statements or materials that have been or may be furnished in

                                                  -15-
connection with the authorization, issuance or marketing of the bonds, and accordingly will not
express any opinion with respect to the accuracy or completeness of any such financial
documents, statements or materials.

        DELIVERY OF BONDS: The Issuer will furnish bonds ready for execution at its
expense. Bonds will be delivered without expense to the purchaser through DTC in New York,
New York, or such other place to be agreed upon. The usual closing documents, including a
certificate that no litigation is pending affecting the issuance of the bonds, will be delivered at
the time of delivery of the bonds. If the bonds are not tendered for delivery by Twelve o'clock
noon, Eastern Daylight Time, on the 45th day following the date of sale, or the first business day
thereafter if said 45th day is not a business day, the successful bidder may on that day, or any
time thereafter until delivery of the bonds, withdraw its proposal by serving notice of
cancellation, in writing, on the undersigned in which event the Issuer shall promptly return the
good faith deposit. Payment for the bonds shall be made in Federal Reserve Funds. Accrued
interest to the date of delivery of the bonds shall be paid by the purchaser at the time of delivery.

      OFFICIAL STATEMENT: A copy of the Official Statement relating to the bonds may
be obtained by contacting Robert W. Baird & Co., 1001 Bay Street, Traverse City, Michigan
49684, telephone number: 231-933-8447, fax: 231-933-8448. The Official Statement is in a
form deemed final by the Issuer for purposes of paragraph (b)(1) of SEC Rule 15c2-12 (the
"Rule"), but is subject to revision, amendment and completion in a final Official Statement.

        After the award of the bonds, the Issuer will provide on a timely basis a reasonable
number of copies of the final Official Statement, as that te1m is defined in paragraph (f)(3) of the
rule, at the expense of the Issuer (and such additional copies of the final Official Statement as
reasonably requested by, and at the expense of, the successful bidder or bidders) to enable the
successful bidder or bidders to comply with paragraph (b)(4) of the Rule and the rules of the
Municipal Securities Rulemaking Board. Requests for such additional copies of the final
Official Statement shall be made to Robert W. Baird & Co., at the above address within 24
hours of the award of the bonds.

        CONTINUING DISCLOSURE: As described in greater detail in the Official Statement,
the Issuer will agree in the resolution to provide or cause to be provided, in accordance with the
requirements of Rule 15c2-12 (the "Rule") promulgated by the Securities and exchange
Commission, (i) on or prior to the 1st day of the sixth month following the end of the fiscal year
of the Issuer, commencing with the fiscal year ending December 31, 2006, certain annual
financial information and operating data, including audited financial statements for the
preceding fiscal year, (or if audited financial statements are not available, unaudited financial
statements) generally consistent with the information contained or cross-referenced in the
Official Statement relating to the Bonds, (ii) timely notice of the occurrence of certain material
events with respect to the Bonds and (iii) timely notice of a failure by the Issuer to provide the
required annual financial information on or before the date specified in (i) above.

      CUSIP NUMBERS: It is anticipated that CUSIP identification numbers will be printed
on the bonds, but neither the failure to print such numbers on any bonds nor any error with


                                               -16-
respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept
delivery of and pay for the bonds. All expenses in relation to the printing of CUSIP numbers on
the bonds shall be paid for by the Issuer; provided, however, that the CUSIP Service Bureau
charge for the assignment of such numbers shall be the responsibility of and shall be paid for by
the purchaser.

       FINANCIAL CONSULTANT: Further information relating to the bonds may be
obtained from Robert W. Baird & Co., 1001 Bay Street, Traverse City, Michigan 49684,
telephone number: 231-933-844 7, fax: 231- 933-8448.

THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.

      ENVELOPES containing the bids should be plainly marked "Proposal for Limited Tax
General Obligation Bonds, Series 2006."



                                          Linda Potter, Acting City Clerk
                                          City of Muskegon




                                              -17-
       8.     Useful Life of Project. The estimated period of usefulness of the Project is hereby

declared to be not less than twenty six (26) years.

       9.     Tax Covenant; Qualified Tax Exempt Obligations. The Issuer shall, to the extent

permitted by law, take all actions within its control necessary to maintain the exclusion of the

interest on the Bonds from gross income for federal income tax purposes under the Internal

Revenue Code of 1986, as amended (the "Code"), including, but not limited to, actions relating

to any required rebate of arbitrage earnings and the expenditures and investment of Bond

proceeds and moneys deemed to be Bond proceeds. The Issuer hereby designates the Bonds as

"qualified tax exempt obligations" for purposes of deduction of interest expense by fmancial

institutions pursuant to the Code.

       10.    Authorization of Other Actions. The Mayor, the City Manager, City Clerk, City

Treasurer and the Finance Director each is authorized to take all other actions necessary or

advisable including the purchase of municipal bond insurance, and to make such other filings

with the Michigan Department of Treasury, bond insurers or with other parties, to enable the

sale and delivery of the Bonds as contemplated herein.

       11.    Continuing Disclosure. The City hereby covenants to comply with Securities and

Exchange Commission Rule 15c2-12 (the "Rule") and appoints the City's Finance Director as

its "Disclosure Representative" in accordance with the Rule. The City Finance Director be and

is hereby directed to undertake disclosure in accordance with the Rule.




                                              -18-
              12.      Rescission. All resolutions and parts of resolutions insofar as they conflict with

     the provisions ofthis resolution be and the same hereby are rescinded.

              AYES:             Members   Carter, Davis, Gawron, Spa taro, Warmington,

               and Wierenga

              NAYS:             Members ~~~-----------------------------------------
                                         None


     RESOLUTION DECLARED ADOPTED.

                                                  ~City Clerk
                                                              !dtA
              I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
ti
~    the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a
z
~
~    regular meeting held on September 26, 2006, and that said meeting was conducted and public
""
0
0
0

~    notice of said meeting was given pursuant to and in full compliance with the Open Meetings
9w
u:
5 Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were
     kept and will be or have been made available as required by said Act.




                                                         City Clerk


     DELIB:2771124.2\063684-00035




                                                     -19-
Founded in 1852                                                                                                                MICHIGAN: Ann Arbor
by Sidney Davy Miller                                                                                                         Detroit • Grand Rapids
                                                    MILLER                                                                      Howell • Kalamazoo
                                                                                                                                  Lansing • Monroe
                                                                                                                                      Saginaw • Troy
                                                    CANFIELD
                                                    MillER, CANFIELD, PADDOCKANDSTONE, P.L.c.
                                                                                                                                     New York, NY
                                                                                                                                    FLORIDA: Naples
                                                                                                                                          Pensacola
                                                                                                                              CANADA:   Windsor, ON
JOEL L. PIELL                                            150 West Jefferson, Suite 2500                                              POLAND: Gdynia
TEL: (3I3) 496-7518                                        Detroit, Michigan 48226                                               Warsaw • Wroclaw
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                                                               October 4, 2006

          Ms. Linda Potter
          Acting City Clerk
          City of Muskegon
          933 Terrace Street
          P.O. Box536
          Muskegon,MI 49443-0536                                                                                       Via Email

          Dear Ms. Potter:

                I am writing this letter to acknowledge receipt of your mailing of the resolution
          approving the LTGO bonds. Thank you for sending this to me.

                                                    Very truly yours,
                                                    MILLER,




          cc:       Mr. Timothy J. Paul Via Email


          DISCLOSURE UNDER TREASURY CIRCULAR 230: The United States Federal tax advice contained in this document and its
          attachments, if any, may not be used or referred to in the promoting, marketing or recommending of any entity, investment plan
          or arrangement, nor is such advice intended or written to be used, and may not be used, by a taxpayer for the purpose of avoiding
          Federal tax penalties. Advice that complies with Treasury Circular 230's "covered opinion" requirements (and thus, may be
          relied on to avoid tax penalties) may be obtained by contacting the author of this document.

          DELIB :2778734. I \063684-0003 5
                     Commission Meeting Date: September 26, 2006




Date:                September 15, 2006
To:                 Honorable Mayor and City Commissioners
From:               Planning & Economic Development                                c,{?C
RE:                 Request for Final Planned Unit Development approval for a
                    Residential Development near Sherman Boulevard and
                    Barclay Street


SUMMARY OF REQUEST:

The request for Final Planned Unit Development (PUD) approval for a mixed use
commercial and residential development for the southerly portion of 1266 W. Sherman
Boulevard, the northerly portion of 1228 W. Sherman, a portion of 1254 W. Sherman
and a portion of 2495 Barclay Street. The request is by Hazel Churchley, Exit Your
Way, LLC.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends final approval of the PUD provided that the conditions listed in the
attached resolution are met. Staff added an additional condition regarding Fire
Department requirements listed in the Planning Commission Staff report.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the final PUD, with the conditions
listed on the attached resolution, at their September 14, 2006 meeting. The vote was
approved by majority vote, with J. Aslakson voting no, and T. Michalski and B. Larson
absent.




0:\Planning\COMMON\Zoning\City Connnission Jtems\PUDs\2006 PUDs\Case 200644 Shennan & Barclay Final PUD.doc
                                                            I
                                  CITY OF MUSKEGON

                                   RESOLUTION #2006-

   RESOLUTION FOR FINAL PLANNED UNIT DEVELOPMENT APPROVAL FOR
THE SOUTHERLY PORTION OF 1266 W SHERMAN BOULEYARD, THE NORTHERLY
PORTION OF 1228 W SHERMAN, A PORTION OF 1254 W SHERMAN AND A PORTION
                       OF 2495 BARCLAY STREET.

WHEREAS, a petition for a planned unit development was received from Hazel Churchley, Exit
Your Way, LLC; and,

WHEREAS, a planned unit development will allow a mixed use commercial and residential
development; and,

WHEREAS, proper notice was given by mail and publication and public hearings were held by
the City Planning Commission and by the City Commission to consider said petition, during
which all interested persons were given an opportunity to be heard in accordance with provisions
of the Zoning Ordinance and State Law; and

WHEREAS, the Planning Commission and staff have recommended approval of the Final
Planned Unit Development and associated site plan, with conditions as follows:

       1.        The developer obtains the necessary DEQ permits.
       2.        A landscaping plan will need to be submitted and approved by the Planning
                 Department.
       3.        The Fire Department requirements listed in number 7 of the Planning Commission
                 staff report must be met.

NOW, THEREFORE, BE IT RESOLVED that the recommendation by staff and the City
Planning Commission be accepted and the final planned unit development is hereby approved.

Adopted this 26th day of September, 2006

       Ayes:

       Nays:

       Absent:

                                              By: _ _ _ _ _ _ _ _ _ _ _ __
                                                  StephenJ. Warmington
                                                  Mayor

                                              Attest:. _ _ _ _ _ _ _ _ _ _ _ _ __
                                                       Linda S. Potter, CMC
                                                       Acting City Clerk
                              CERTIFICATE (Final PUD Sherman and Barclay,)

        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 a
resolution adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 261h day of September, 2006, 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: _ _ _ _ _ _ _, 2006.
                                                             Linda S, Potter, CMC
                                                             Acting City Clerk, City of Muskegon




0:\Planning\COMMON\Zoning\City Commission Items\PUDs\2006 PUDs\Case 2006-44 Shennan & Barclay Final PUD.doc
                                             Staff Report [EXERPT]
                                              CITY OF MUSKEGON
                                            PLANNING COMMISSION
                                              REGULAR MEETING

                                                  September 14, 2006



Hearing; Case 2006-44: Request for final Planned Unit Development approval for a mixed
use commercial and residential development for the southerly portion of 1266 W. Sherman
Boulevard, the Northerly portion of 1228 W. Sherman, a portion of 1254 W. Sherman, and a
portion of2495 Barclay Street, by Hazel Churchley, Exit Your Way, LLC.

BACKGROUND



Applicant:                                        Hazel Churchley, Exit Your Way, LLC
Property Address/Location:                        Portions of 1266, 1254, 1228 W. Sherman Boulevard
                                                  and a portion of2495 Barclay Street
Request:                                          Final Planned Unit Development (PUD)
Present Land Use:                                 Vacant
Zoning:                                           R-1, One Family Residential and B-4, General
                                                  Business
STAFF OBSERVATIONS


1. This applicant received approval of the Preliminary PUD for this property at the August
   Planning Commission meeting.
2. The portion of the property along Barclay Street is zoned B-4, General Business. The
   remainder of the site is zoned R-1, One Family Residential.
3. The site is approximately 7 acres of property that is proposed to be developed at 20 residential
   units constructed as duplexes and one single unit model home. The homes will have
   basemenst, some of them along the slope to Ruddiman Creek will have walk-out basements.
4. Properties to the north and west are zoned R -1, the prope1ties to the east are zoned RT, Two
   Family Residential, and B-4. The properties to the south are also zoned B-4.
5. The site is rather wooded, with a clearing toward the rear along the creek. There is presently
   an access road off ofBarclay Street that was used during the recent clean-up ofRuddiman
   Creek.
6. The following items need to be addressed on the site plan:
   a. A landscape plan must be submitted and approved by the Planning Department. No trees
        are to be removed without Zoning Administrator approval. Existing trees are to be
        marked on the site plan as either being retained or removed.
   b. The height dimensions of the units needs to be provided.
   c. If outdoor lighting is to be install, it must be indicated on the site plan. All outdoor



0:\Planning\COMMON\Zoning\City Commission Items\PUDs\2006 PUDs\Case 200644 Shennan & Barclay Final PUD.doc
           lighting must be 100% cut-off style.
      d. Soil erosion and sedimentation control measures must be shown on the site plan.
      e. It is uncertain where the north property line is. If it is Ruddiman Creek, so indicate and
           provide property dimension.
      f.   The north/south parcel dimensions need to be provided.
      g. Indicate the zoning of the property to the west of the site.
      h. Realign unit #8 so as to have at least a 30 ft. rear setback.
      1.   A landscape buffer shall be provided between the development and the residential
           properties to the west. It shall consist of closely planted evergreens or fencing approved
           by the Planning Department as part of the landscape plan.
7.    The Fire Department has the following conditions as part of their approval:
      a. Project shall comply with International Fired Code 2003 edition, Chapter 5 for fire service
          features and appendix D.
      b. Access road shall be a minimum 26ft. in width, IFC D 103.1.
      c. Cul-de-sac shall be 96 feet in diameter. IFC D I 03 .I.
      d. Access road shall be capable of supporting 79,000 lb. fire apparatus load. D 102.1.
      e. Fire flow and hydrant distribution shall comply with IFC Appendix C and table B 105.1.
8.    DPW approved the site plan, but had the following comment:
      a. Provide water and sewer service detail plans. Contact Kelly DeFrench at 724-4100 with
          questions.
9.    Engineering had no comments regarding this site plan.
10.   Bob White, 2470 Woodcreek, has concerns with Unit 10 and it's proximity to his property,
      how the units are being built along the top of the bank ofRuddiman Creek, and proper
      screening of the development from adjacent residential properties ..




0:\Planning\COMMON\Zoning\City Commission Items\PUDs\2006 PUDs\Case 2006-44 Sherman & Barclay Final PUD.doc
   City of Muskegon
   Planning Commission
   Case# 2006-44
                                                                                                                                     -~·
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