City Commission Packet 04-13-2004

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         APRIL 13, 2004
     CITY COMMISSION CHAMBERS                            @   5:30 P.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. Liquor License Request - Sardine Room. CITY CLERK
      C. SECOND READING:   Zoning Ordinance Amendment for Permits.
         PLANNING & ECONOMIC DEVELOPMENT
      D. Sale of Non-Buildable Lot at 550 Mclaughlin Avenue. PLANNING &
         ECONOMIC DEVELOPMENT
      E. Road Salt Procurement Authorization. DEPARTMENT OF PUBLIC WORKS
      F. Aggregates.    Highway     Maintenance      Materials   and    Concrete.
         DEPARTMENT OF PUBLIC WORKS
      G. Police Car Video Systems. DEPARTMENT OF PUBLIC WORKS
      H. Sheldon Park Neighborhood Maintenance Agreement.            PLANNING &
         ECONOMIC DEVELOPMENT
o PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate - United Sign
         Company. PLANNING & ECONOMIC DEVELOPMENT
      B. Request for an Industrial Facilities Exemption Certificate - Total Quality
         Machining, Inc. PLANNING & ECONOMIC DEVELOPMENT
o COMMUNICATIONS:
o   CITY MANAGER'S REPORT:
•   UNFINISHED BUSINESS:
•   NEW BUSINESS:
        A. Pere Marquette Ground Lease Assignment. LEISURE SERVICES
        B. Hartshorn Marina Proposals. LEISURE SERVICES
        C. Request for Extension of Deadlines for                                  Former         Lakos   Property.
           PLANNING & ECONOMIC DEVELOPMENT
        D. Purchase of 265 Walton. COMMUNITY & NEIGHBORHOOD SERVICES
        E. Community Development Block Grant/HOME Final Allocation Decision.
           COMMUNITY & NEIGHBORHOOD SERVICES
        F Approval of the 2004-2005                               Action        Plan.          COMMUNITY         &
          NEIGHBORHOOD SERVICES
        G. Concurrence with the Housing Board of Appeals Notice and Order to
           Demolish 1355 Pine and 1365 Pine. INSPECTION SERVICES
        H. Accepting Lemuel Street into the City's Street System. ENGINEERING
        I. TEDF Category F-Grant Applications. ENGINEERING
        J. Repeal Article Ill of Chapter 26. ENGINEERING
        K. Consideration of Bids:                  Campus & Strong Projects H-157B & H-1579.
           ENGINEERING
•   ANY OTHER BUSINESS:
•   PUBLIC PARTICIPATION:
•   Reminder: Individuals who would like to address the City Commission shall do the following:
•   Fill out a request to speak form attached to the agenda or located in the back of the room.
•    Submit the form fo the City Clerk.
•   Be recognized by the Choir.
•   Step foiward 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.)
•   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 GAIL A.
KUNDINGER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD: (231)
7244172.
           2004-34(a)




CITY OF MUSKEGON                                                State of Michigan


                        Certificate of Recognition

WHEREAS,      A National Youth Service Day 2004, "Preparing Muskegon for a Call to Serve,"
              funded by donations from State Farm Insurance Foundation, AT&T "CARES"
              Youth Innovation Fund, and the Muskegon County Sheriff's Department of
              Emergency Services has been scheduled for April 16, 2004, and

WHEREAS,      Volunteer Muskegon's AmeriCorps, with its partners Muskegon County
              Emergency Services, Family Independence Agency, American Red Cross,
              Community Mental Health, and the Muskegon Rescue Mission, will recruit a
              team of 210 youth volunteers; 10 corporate volunteers and 15 senior/retirees in
              Muskegon county to participate in a mock disaster, blood drive, workshop and
              senior safety distribution, and

WHEREAS,      this mock disaster will test the human services division of emergency
              preparedness and provide information on how to prepare for an emergency, and
              will also distribute to seniors disaster kits, cell phones, vials for life, and
              emergency beacon lights, and

WHEREAS,      these volunteers contribute by giving tirelessly of their time and energy, each
              individual having a special contribution to offer, and

NOW THEREFORE, I Stephen J. Warmington, by virtue of the authority vested in me as
              Mayor and speaking on behalf of the City Commission hereby recognize April
              16, 2004 as National Youth Service Day and urge all citizens to join with us in
              recognizing the dedication made by Muskegon's Americorps volunteers towards
              the well being of our community and extend our appreciation for the
              contributions made by the organizations that support them.

IN WITNESS WHEREOF, l have hereunto set my hand and cause the seal of the City of
              Muskegon to be affixed this 13"' day of April, 2004.




Stephen J. Warmington, Mayor
Date:    April 13, 2004
To:       Honorable Mayor and City Commissioners
From:    Gail A. Kundinger, City Clerk
RE:      Approval of Minutes




SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, March 23, 2004.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         APRIL 13, 2004
    CITY COMMISSION CHAMBERS@ 5:30 P.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, April 13,
2004.
   Mayor Warmington opened the meeting with a prayer from Commissioner
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 Bill Larson, Commissioners
Chris Carter, Kevin Davis, Stephen Gawron Clara Shepherd, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier and City Clerk
Gail Kundinger.
2004-34 INTRODUCTIONS/PRESENTATIONS:
  A. National Youth Service Day 2004 "Preparing Muskegon for a Call to
     Service"
Commissioner Spataro presented a resolution announcing Nation Youth Service
Day 2004, "Preparing Muskegon for a Call to Service" to Martha Bottomly,
representative of Volunteer Muskegon.
2004-35 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, March 23, 2004.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
     B. Liquor License Request - Sardine Room. CITY CLERK
SUMMARY    OF   REQUEST:     The   Liquor   Control   Commission   seeks   local
recommendation on a request from Small Perch, Inc. for a new outdoor service
area to be held in conjunction with their current 2003 Class C-SDM licensed
business with Dance permit and Official Permit (food).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: All departments are recommending approval.
      C. SECOND READING:   Zoning Ordinance Amendment for Permits.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2311 (Accessory Structures
and Buildings) of Article XXIII (General Provisions) of the City's Zoning Ordinance
to add language regarding permits.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to add language regarding permits.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their 3/11 meeting. The vote was unanimous with T.
Johnson absent.
      D. Sale of Non-Buildable Lot at 550 Mclaughlin Avenue. PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot
(Parcel #24-205-081-0006-00) at 550 McLaughlin Avenue to Gurney Brower, of
560 McLaughlin Avenue, Muskegon, Ml. Approval of this sale will allow the
owner to expand his current yard. Mr. Brower is attempting to purchase the
small vacant lot directly to the north of this City-owned property from a private
owner. This lot is being offered to Mr. Brower for $1 under the Dollar Lot
Marketing Plan.
FINANCIAL IMPACT: The sale of this lot will allow the property to be placed back
on the City's tax rolls thus relieving the City of Continued maintenance costs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign the resolution and the deed.
      E. Road Salt Procurement Authorization. DEPARTMENT OF PUBLIC WORKS
SUMMARY OF REQUEST: Authorize procurement of 4,500 tons road salt for the
2004/2005 winter season through the State of Michigan MiDeal Program.
FINANCIAL IMPACT: Per Ton price yet to be determined; 2003/2004 extended
price is $24.70/ton. At the price, 4,500 tons would total $111,150.
BUDGET ACTION REQUIRED: None; expense budgeted for through public works.
      F. Aggregates. Highway Maintenance           Materials   and     Concrete.
         DEPARTMENT OF PUBLIC WORKS
SUMMARY OF REQUEST: Award bid to supply Hl and H2 limestone chip blend to
Verplank Trucking Company. Award bid to supply road slag to Verplank
Trucking Company. Award bid to supply sylvax-patching material UPM-CP-7 to
Rieth-Riley Construction Co., Inc. Award bid to supply bituminous asphalt
product to Asphalt Paving, Inc. Award bid to supply Calcium Chloride 38%
(road brine) and 32% (winter salting) to Liquid Dustlayer, Inc. Award bid to
supply 7-sack mix concrete to Port City Redi-Mix Company, contingent upon
product availability, timely deliveries, and prices as quoted.
FINANCIAL IMPACT: $120,480, based on 2003 quantities at 2004 quotes.
BUDGET ACTION REQUIRED: None; monies appropriated in several budgets.
      G, Police Car Video Systems. DEPARTMENT OF PUBLIC WORKS
SUMMARY OF REQUEST:       Approval to purchase ten video systems for police
cruisers.
FINANCIAL IMPACT: Cost per unit $5,907.50
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve purchase of new video systems for police
cruisers.
Motion by Commissioner Spataro, second by Commissioner Gawron to accept
the Consent Agenda as read minus item H.
ROLL VOTE:     Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
               Gawron
               Nays: None
MOTION PASSES
2004-36 ITEMS REMOVED FROM CONSENT AGENDA
      H. Sheldon Park Neighborhood Maintenance Agreement.          PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the Agreement between Sheldon Park
Neighborhood Association and the City of Muskegon. We have had an
agreement with the neighborhood Association since 1997, which has been
renewed every l-2 years.
FINANCIAL IMPACT: The City donates $2,000 to the Association to maintain the
Northwest corner of Evanston and Oak Grove Street and the South side of
McLaughlin Ave., just East of Burton Road. This is for the term of the Agreement
(May l, 2004-December 31, 2005).
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Agreement and authorize the Mayor
and Clerk to sign.
Motion by Vice Mayor Larson, second by Commissioner Carter to approve the
Agreement between Sheldon Park Neighborhood Association and the City of
Muskegon, and have the Mayor and Clerk sign.
ROLL VOTE:      Ayes: Shepherd, Spataro, Warmington, Carter, Davis Gawron,
                Larson
                Nays: None
MOTION PASSES
2004-37   PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate - United Sign
         Company. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 197 4, as amended, United
Sign Company, 2068 E. Sherman Boulevard, Muskegon, Michigan, has requested
the issuance of an Industrial Facilities Exemption Certificate. The total capital
investment for this project is $652,095 in personal property which will lead to the
retention of 2 jobs. This request qualifies United Sign Company for a 6-year
exemption on personal property. United Sign Company's current workforce is
16.
FINANCIAL IMPACT: The City will capture certain additional property taxes and
income taxes generated by the expansion.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of six (6) years for personal property to
United Sign Company.
The Public Hearing opened at 5:42pm to hear any comments from the people.
No comments were heard at this time.
Motion by Commissioner Larson, second by Commissioner Gawron to close the
Public Hearing at 5:45pm and to approve the resolution granting an Industrial
Facilities Exemption Certificate for a term of six (6) years for personal property to
United Sign Company.
ROLL VOTE:      Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
                Shepherd
                Nays: None
MOTION PASSES
      B. Request for an Industrial Facilities Exemption Certificate - Total Quality
         Machining. Inc. PLANNING & EC.ONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Total
Quality Machining, Inc., 2226 Olthoff Drive, Muskegon, Michigan, has requested
the issuance of an Industrial Facilities Exemption Certificate. The total capital
investment for this project is $129,503 in personal property which will lead to the
retention of l O jobs. This request qualifies Total Quality Machining, Inc. for a 6-
year exemption on personal property. Total Quality Machining, Inc. 's current
workforce is l 0.
FINANCIAL IMPACT: The City will capture certain additional property taxes and
income taxes generated by the expansion.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of six (6) years for personal property to
Total Quality Machining Inc.
The Public Hearing opened at 5:45pm to hear any comments from the public.
Comments were heard from Rick Goodwin of 3946 Leahy representing Total
Quality.
Motion by Commissioner Gawron, second by Commissioner Davis to close the
Public Hearing at 5:49pm and to approve the resolution granting an Industrial
Facilities Exemption Certificate for a term of six (6) years for personal property to
Total Quality Mac hinging Inc.
ROLL VOTE:      Ayes:. Warmington, Carter, Davis, Gawron, Larson, Shepherd,
                Spataro
                Nays: None
MOTION PASSES
2004-38 UNFINISHED BUSINESS:
      A. Madison Street Fire Barn: Oakview Neighborhood                  Association
         PLANNING AND ECONOMIC DEVELOPMENT
Motion by Commissioner Larson, second by Commissioner Spataro to extend the
Lease Agreement between the City and Oakview Neighborhood Association for
120 days, and for the Association to inform City Staff within 90 days if they intend
to purchase the building. If the property is not able to be purchased by
Oakview, a Request for Proposal will be put out for other purchasers of the
building. The Neighborhood Association may remain in the building during this
time, and upon adopting a sale with another purchaser, they would have 30
days after the property is sold to relocate.
ROLL VOTE:      Ayes: Carter,     Davis,   Gawron,   Larson,   Shepherd,    Spataro,
                Warmington
                Nays: None
MOTION PASSES
2004-39 NEW BUSINESS:
      A. Pere Marquette Ground Lease Assignment. LEISURE SERVICES
SUMMARY OF REQUEST: To authorize the assumption of the ground lease for the
restaurant at Pere Marquette Park.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Vice Mayor Larson to approve the
assumption of the ground lease for the restaurant at Pere Marquette Park.
ROLL VOTE:     Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
               Carter
               Nays: None
MOTION PASSES
      B. Hartshorn Marina Proposals. LEISURE SERVICES
SUMMARY OF REQUEST: To authorize staff to negotiate a contract with Westrec
Management, Inc. to manage Hartshorn Marina and other marina properties
beginning in 2005.
FINANCIAL IMPACT: Unknown
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Commissioner Gawron to authorize
staff to negotiate a contract with Westrec Management Inc. to manage
Hartshorn Marina and other marina properties beginning in 2005.
ROLL VOTE:     Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
               Davis
               Nays: None
MOTION PASSES
      C. Request for Extension of Deadlines for         Former   Lakos   Property.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: On February 8, 2000, the City of Muskegon and Desiree
Enterprises (Holiday Inn) entered into a "Real Estate Agreement" for the sale of
the former Lakos property. At that time, the owners were required to construct a
building on the premises within 18 months of closing. On January 22, 2002, an
"Amendment Agreement' was entered into between the parties, which allowed
for the buyer to construct a parking lot on the premises by May 31, 2002 (which
was accomplished), to provide a written schedule of the construction activities
to the City by January 15, 2003 (which has not occurred) and to complete the
improvements by January 15, 2005. The City has requested the construction
schedule from the buyer. However, the purchaser has submitted a letter
requesting another time extension (the most recent letter from Mr. Elkhouly
requests a 10-12 month extension. Since no schedule or building plans have
been forthcoming, and due to the fact that the "Amendment" has been
violated, staff is recommending the City proceed with a reversion of the
property back to the City.
FINANCIAL IMPACT: The City will have an additional piece of property that can
be sold for future development.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To deny the request to extend the deadline for the
"Amendment" and to proceed with legal action to cause the property to be
reverted to the City of Muskegon. However, if the City Commission would prefer
that an extension be granted, staff recommends that the Commission refer the
item back to staff to negotiate with the purchaser for acceptable terms.
Motion by Commissioner Spataro, second by Vice Mayor Larson to refer back to
staff to negotiate an extension to the agreement and report back to the City
Commission.
ROLL VOTE:     Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
               Gawron
               Nays: None
MOTION PASSES
      D. Purchase of 265 Walton. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the purchase of the property located at 265
Walton (City of Muskegon revised Plat of 1903 Lot 6 Block 199 also easterly ½
vacated Rathborne Street Th' to) from Mrs. Roxie Murray, 2221 Riverview, Inkster,
Ml 48141 (Seller). After approval of the purchase by the Commission, the CNS
Department will combine this property with property already obtained by the
City of Muskegon through the tax reversion process. In order that the City will
have the required land to complete the proposed future housing development
project south of the Farmers Market area.
FINANCIAL IMPACT: Funding for purchase will come from the City's 2001 HOME
funding.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request and instruct the Mayor and
City Clerk to sign the Purchase Agreement.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the purchase of the property located at 265 Walton St. from Mrs. Roxie
Murray 2221 Riverview, lnster, Ml., and instruct the Mayor and City Clerk to sign
the Purchase Agreement.
ROLL VOTE:     Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron,
               Larson
               Nays: None
MOTION PASSES
      E. Community Development Block Grant/HOME Final Allocation Decision.
         COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: For the City Commission to make their final allocation
decision concerning the 2004-2005 CDBG/HOME fiscal year. The Commission
has received the recommendation from the Citizen's District Council and the
City Administration. The Commission made their preliminary recommendations
during the March 23, 2004, City Commission Meeting. After receiving the
Commissions final allocation decision, the CNS office will amend the City's 2004-
2005 Action Plan if needed and continue the comment period until April 15,
2004.    At that time, the City will request the U.S. Housing and Urban
Development Department for the release of the funds for the 2004-2005 fiscal
year to begin June 1, 2004.
FINANCIAL IMPACT: The decision will determine the CDBG/HOME budget for
2004-2005.
BUDGET ACTION REQUIRED: The decision will establish the budget.
STAFF RECOMMENDATION: The Commission has already received the staff
recommendation.
Motion by Vice Mayor Larson, second by Commissioner Spataro to approve the
final allocation decision concerning the 2004-2005 CDBG/HOME fiscal year.
ROLL VOTE:     Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
               Shepherd
               Nays: None
MOTION PASSES
      F Approval of the 2004-2005           Action   Plan.      COMMUNITY      &
        NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the 2004-2005 Action Plan for the City of
Muskegon Community Development Block Grant/HOME activity. If the Action
Plan is approved, the CNS will continue the comment period of the Action Plan
as amended if needed until April 15, 2004. On April 16, 2004, the CNS Office will
deliver the Action Plan to the U.S. Housing and Urban Development as required
in order to request the Release of Funds for the 2004-2005 fiscal year.
FINANCIAL IMPACT: Action Plan establishes the 2004-2005 budget.
BUDGET ACTION REQUIRED: None at this time budget established by Action Plan.
STAFF RECOMMENDATION: To approve the Action Plan.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the 2004-2005 Action Plan for the City of Muskegon Community
Development Glock Grant/HOME as amended.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro
              Nays: None
MOTION PASSES
      G. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish 1355 Pine and 1365 Pine. INSPECTION SERVICES
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures located at 1355
Pine and 1365 Pine are unsafe, substandard, public nuisances and that they be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for demolition of the structures and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.
1.    1355 Pine St.
CASE# & PROJECT ADDRESS: #EN-040005, 1355 Pine St.
LOCATION. AND OWNERSHIP: This structure is located on Pine Street between
Bauer and Catawba and is owned by Raymond Kittel.
STAFF CORRESPONDENCE: On l /21 /04 the trade inspectors and Fire Marshal
conducted an inspection at this house after the housing inspector reported
dangerous living conditions. At the time there were two women living there with
their six children. They believed they were renting from Mr. Kittel, but he had
actually had them sign a Land Contract in the amount of $40,000 on 2/21/03.
Upon inspection the Fire Marshal and trade inspectors found the structure to be
very dangerous and the two families were told they would have to vacate the
premises. Their case workers did help them find new places to stay and were
referred to legal Aid of West Michigan in reference to the Land Contract. The
utilities have since been cut and the house is vacant. A Notice and Order to
repair or remove was issued l/22/04 and on 3/4/04 the HBA declared the
structure substandard and a dangerous building.
OWNER CONTACT: Mr. Kittel spoke with Mr. Grabinski the week before the HBA
meeting and spoke of selling the house. He stated he had a potential buyer
already lined up.
FINANCIAL IMPACT: CDBG Funds
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $22,800
ESTIMATED COST OF REPAIR: $20,000
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Gawron, second by Commissioner Carter to concur
with the HBA to demolish 1355 Pine St. and have the Mayor and Clerk authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
ROLL VOTE:      Ayes: Carter,    Davis,   Gawron,   Larson,   Shepherd,   Spataro,
                Warmington
                Nays: None
MOTION PASSES
2.    1365 Pine St.
CASE# & PROJECT ADDRESS: #EN-040004, 1365 Pine St.
LOCATION AND OWNERSHIP: This structure is located on Pine Street between
Bauer and Catawba and is owned by Mortgage Electronic Registration. It is
currently in the redemption period of foreclosure and a local realtor, John
Achterhof!, has listed it to sell.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted on
l /20/04. A Notice and Order to repair was issued l /22/04. An interior inspection
was conducted 3/18/94 and on 3/4/04 the HBA declared the structure
substandard and dangerous.
OWNER CONTACT: John Achterhof! contacted the Inspection Department and
scheduled the interior inspection. He stated he has been contacted by the
management company handling the foreclosure to list the property to sell.
FINANCIAL IMPACT: CDBG Funds
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $11,800
ESTIMATED COST OF REPAIR: $20,000
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Commissioner Shepherd to concur
with the HBA to demolish 1365 Pine St. and have the Mayor and Clerk authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
ROLL VOTE:     Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
               Carter,
               Nays: None
MOTION PASSES
      H. Accepting Lemuel Street into the City's Street System. ENGINEERING
SUMMARY OF REQUEST: Adopt the resolution including Exhibit A accepting
Lemuel Street north of Hackley into the City's street system. Lemuel Street was
constructed as part of the Seaway Industrial Park Development.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Adopt the resolution.
Motion by Commissioner Spataro, second by Commissioner Gawron to adopt
resolution including exhibit A accepting Lemuel Street north of Hackley into the
City's street system.
ROLL VOTE:     Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
               Davis
               Nays: None
MOTION PASSES
      I. TEDF Category F-Grant Applications. ENGINEERING
SUMMARY OF REQUEST: Your permission to submit a 2005 TEDG Category F
Grant application for the Milling & Resurfacing of Lakeshore Dr. between
McCracken & Lincoln (2000') is requested. The estimated cost is about $240,000
of which the City's share would be about $60,000 (25%).
FINANCIAL IMPACT: A 25% match plus engineering cost which are estimated at
$90,000 if the project is approved.
BUDGET ACTION REQUIRED: None at this time. However, should the project get
approval, we would have to include it in the 2005 Capital Improvement Budget.
STAFF RECOMMENDATION: Approve the submittal of the grant application.
Motion by Vice Mayor Larson, second by Commissioner Carter to submit a 2005
TEDF Category F Grant application for the Milling & Resurfacing of Lakeshore Dr.,
between McCracken & Lincoln (2000').
ROLL VOTE:     Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
               Gawron
               Nays: None
MOTION PASSES
      J. FIRST READING: Repeal Article Ill of Chapter 26. ENGINEERING
SUMMARY OF REQUEST: Adopt the ordinance repealing Article Ill of Chapter 26
of the City's Ordinance dealing with the soil erosion & sedimentation control. By
us repealing such ordinance, enforcement of such program will fall on the
County's DPW as per MDEQ's rules. At the present time, Muskegon County is the
enforcing agent for most of the communities within the County. Repealing said
ordinance will not have an impact on City-owned projects since we will be able
to retain our Authorized Public Agency designation. However, all activities that
fall within the established MDEQ guidelines as needing a soil erosion permit, one
must be issued by the County. The advantages of such action can be in the
form of consistency.
FINANCIAL IMPACT: None, the County has there own fee schedule which is very
comparable to the one the City has.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Adopt the ordinance.
Motion by Vice Mayor Larson, second by Commissioner Gawron to adopt
ordinance repealing Article Ill of Chapter 26 of the City Ordinance dealing with
the soil erosion and sedimentation control.
ROLL VOTE:     Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron,
               Larson
               Nays: None
MOTION PASSES
      K. Consideration of Bids:   Campus & Strong Projects H-1578 & H-1579 ..
         ENGINEERING
SUMMARY OF REQUEST: The contract to reconstruct both Strong & Campus be
awarded to K & R out of Grand Rapids, Ml. K & R was the lowest, responsible
bidder with a bid price of $286,687.42.
FINANCIAL IMPACT: The       construction   cost   of   $286,687.42   plus   related
engineering expenses.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to K & R.
Motion by Commissioner Spataro, second by Vice Mayor Larson to award the
contract to K & R out of Grand Rapids, Ml. to reconstruct both Strong & Campus
streets.
ROLL VOTE:     Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
               Shepherd
               Nays: None
MOTION PASSES
      L. ANY OTHER BUSINESS:
Motion by commissioner Davis, second by Commissioner Spataro to participate
in the 2004 Scrap Tire Collections, Muskegon County.
ROLL VOTE:     Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd,
               Spataro
               Nays: None
MOTION PASSES
The Regular Commission meeting for the City of Muskegon was adjourned at
7:30pm.
                                              Respectfully submitted,


                                               ~0-~
                                             Gail A. Kundinger, MMC
                                             City Clerk
Date:      April 13, 2004
To:        Honorable Mayor and City Commissioners
From:      Gail A. Kundinger, City Clerk
RE:        Liquor License Request
           Sardine Room (Small Perch, Inc.)
           2536 Henry




SUMMARY OF REQUEST: The Liquor Control Commission seeks
local recommendation on a request from Small Perch, Inc. for a new
outdoor seNice area to be held in conjunction with their current 2003
Class C-SDM licensed business with Dance Permit and Official Permit
(food).


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION:           All departments are recommending
approval.
                    Muskegon Police Department
                                      A~.L.'A~
                                          e~o1,P~

                    980 Jefferson Street P.O. Box 536 Muskegon Michigan 49443-0536
                                    (23 1) 724-6750 (231) 722-5140 /=
                                         www.muskegonpolice.com




October 31 , 2003



To:          City Commission through the City Manager

From:          /:J. _    L .1 ~
             Antho~ L.. Kleibecker, Chief of Police

Re:          Liquor License Request for New Outdoor Service Area
             2536 Henry Street (Sardine Room)


The Muskegon Police Department has received a request from the Michigan Liquor
Control Commission for an investigation of applicant Small Perch, Inc. of 2536 Henry
Street, operating under the name of The Sardine Room and Bar.

Small Perch, Inc. is requesting a new outdoor service area to be held in conjunction with
their current 2003 Class C-SDM licensed business with Dance Permit and Official
Permit (food).

A check of Muskegon Police Department records shows no reason to deny this request.



ALK/dl
               Reg ID #229231

                                                      MICHIGAN DEPARTMENT OF COMMERC!;
                                                          LIQUOR CONTROL COMMISSION


                                                                 RESOLUTION
                                                                 2004-35(b)
  At   a _..;;.R;_:e;..g.,__u;;;.::cl..;;;a""r'--~----- meeting of the _ _ _ ___:C;_:i=-t=-y"-..;;;C.. :o;.:;m:.;.:m.:;.1=-·-=s-=s~i:...::o:...:n~-----
                      tAegula,,   Of   ~I                                                           (To...i,Jp 8oanl. Clly of VIiiage     c-nc.11


  called to order by                                                            i ....1_1_~__,....,....2_...
                                       Mayor Warmington on ......:.A..._p.._r.....                       n...a....4___ at s: 30                          P.M.

 the following resolution was offered:

           Moved by               Commissioner Spataro and Supported by Commissioner Gawron

                             Small Perch, Inc. for a new· Outdoor service
          That the request from
              Area to be held in conjunction with 2003 Class C-SDM Licensed
              Business with Dance Permit and Official Permit (food),
              located at 2536 Henry, Muskegon, MI 49441, Mus~egon County.


          be considered for                    Approval
                                                                                  (Appro-,111 o, Ola,approwllll



                                                Approval                                                   Disapproval

                                                Yeas:        7                                             Yeas:

                                                Nays:        0                                             Nays:

                                                Absent: O.                                                Absent:

         It is the consensus of this legislative body that the application be                                                Recommended · ·
                                                                                                                                    (Aecom-         o,


         _ _ _ _ _ _ _ _ _ _ _ _ for issuance.
                      not Alicommendedl


State of Michigan )
                                         55
County of Muskegon)

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


          City Commission                                                  at a _ _ __.,1R:::..ie~g-.Yu..1.l-"aur_ _ _ _ _ _ _ __
                                                                                                                  (Aevlilar or SpecaolJ




meeting held on the                    14 th of April, 2004.
                                                                                               M                                ,/
                                                    (0&1•J



                                                                          (Signed) .      -~ a.k ~~-
                                                                                           .    .                          Cl1rto1_F _
                                                                                                          (Townonop. Clly, or V1ll1g1

                                                                                  Gail A. Kundinger, City Clerk
                                                                                   933 Terrace, Muskegon, MI 49440
                                                                          -----,u-dr___ol-:T:-own.o-n,p. Cily or v,111go Boordt     -

SEAL
                                                                                                                                Zz-'9 .;?6 I
                                                 Michigan Department of Consumer & Industry Services                           8/2 g/u,3
                                             MICIDGAN LIQUOR CONTROL COMMISSION (MLCC)                                              ~
                                           7150 Han-is Drive, P.O. Box 30005 - Lansing, Michigan 48909-7505

                                  LAW ENFORCEMENT RECOMMENDATION
                                                                     (MCL 436.1501)
                                                                     August 11, 2003

                                                                                                       REQ ID # 22923 1
TO:            MUSKEGON POLICE DEPARTMENT                                                              RE: SMALL PERCH, INC.
               CHIEF OF POLICE
               980 JEFFERSON STREET, PO BOX 536
               MUSKEGON, MI 49443-0536




We have received a request from the above licensee for the type of pennit indicated below. Please make an investigation
and submit your report and/or recommendation, as requested below, to the offices of the Liquor Control Commission at the
above address. Questions about this request should be directed to the MLCC Licensing Division at (517) 322-1400.

        OFFICIAL PERMIT FOR EXTENDED                                           To copies of Form LC 11 12 will be left with you, the upper po1tions

•       HOURS OF OPERATION FOR                                                 already executed. Indicate your recommendation and return one copy
                                                                               to the Commission, retaining the other.
                                                                               (Authorized by MAC 436.1403)



        LIVING QUARTERS                                                        Indicate your recommendations on the bottom of this letter and return

•                                                                              one copy to the Commission.
                                                                               (Authorized by MCL 436.1217 and 436.1201)
        SMALL PERCH, INC. REQUESTS A
        NEW OUTDOOR SERVICE AREA
0       TO BE HELD IN CONJUNCTION
        WITH 2003 CLASS C-SDM
        LICENSED BUSINESS WITH
        DANCE PERMIT AND OFFICIAL
        PERMIT (FOOD), LOCATED AT
        2536 HENRY, MUSKEGON, Ml
        49441, MUSKEGON COUNTY.




Recommendation: (Recommended / Not recommended) ---+-
                                                    fe,__._.c;;~C~O~/_??_ m
                                                                          _                             ~e~
                                                                                                          ·/J~·~dt~e~JJ~-----------
Signed:       -t   /?-if L . I ~                                            <:::...5:-l-l t.::. ,,:_
                                                               Signature and Title

Date:   'rt        /<.>   -J   1 ·- <)\J




LC-1636 Rev. 9/01
4880- 1934

sfs
To:    Chief Tony Kleibecker

From: Det. Kurt Dykman

Date: 09-12-03

Re:    Liquor License Request



Chief Kleibecker,

The Muskegon Police Department has received a request from the Michigan Liquor
Control Commission for an investigation from applicant Small Perch, Inc. of2536 Henry
Street, Muskegon, MI. 49441. This business is operating under the name of The Sardine
Room and Bar.

Small Perch, Inc. is requesting a new outdoor service area to be held in conjunction with
2003 Class C-SDM licensed business with Dance Permit and Official Permit (food).

A check of MPD records showed no reason to deny this request.

Respectfully submitted,




data/common/SmallPerch
                LIQUOR LICENSE REVIE\V FORl"\f

 Business Name: _ _ _S=._;,a"-'-/'--'dt'-"--i'_/J_e__Jfz'-'--o---'o'--/YJ--'--_ _ _ _ _ _ _ __

 AK.<\ Business Name (if applicable):               Sm     11   I/   &ce,/4                         Inc.

 Operato:r/lVIanager's Name:

 Business Address:


 Reason for Review:

New License         D           Transfer of Ownership                D       Dance Permit                  D
Drop/Add Name on License                  D·                         Transfer Location                     D
Drop/Add Stock.bolder Name                D           New Entert~inment Permit                             D
Other             ~w           Oufdoo/'           Serf//c G          ffee,q
Deadline for receipt of all information: _ _ _ _ _ _ _ _ __

Police Department Approved                D Denied D             No Action Needed D

Income Tax                Approved      ~Owing           D       Amount:

Treasurer                 Approved       D     Owing     D       Amount: _ _ __

Zoning                    Approved       D     Denied D Pending ZBA                                  D
Clerk's                   Approved       D      Owing D          Amount: _ _ __

Fire/Inspection         Compliance       D     Remaining Defects _ _ _ __
 Services




                                  ~
Department Signature_ __ _·_ _· -=~
                                  -----=--·____=\ 1                      +
                                                                         I -
                                                                           '- ~   •             1.
                                                                                                _ _ _ __
                                                                                      J ;o·:;....




                                                      Gail A. Kundinger, City Clerk
                                                                         L'au r Li ense Coordinator
                LIQUOR LICENSE REVIEW FORJ.\il

                                     ' · ~_e_....:...fo_.__o..::;_o..;../YJ-'--_ _ _ _ _ _ __
 Business ~ame: _ ___,,;S=....;.;a~/.....::;c/..;_1_

AKI\ Business Name (if applicable):                  Sm q§ &ce,,4              Iac .

OperatoirflVIanager' s Name:

Business Address:


Reason for Review:

New License         D           Transfer of Ownership            D              D
                                                                        Dance Permit

Drop/Add Name on License                  D·                  Transfer Location D

Drop/Add Stockholder Name                 D           New Entert~inment Permit D

Other             ~w            OutJoo/'          Serf/1'c G       ffee,q
Deadline for receipt of all information: _ _ _ __ _ _ _ __

PoHce Department Approved                 D Denied D            No Action Needed D

Income Tax                 Approved       D     Owing     D     Amount: - - - - y

Treasurer                  Approved       0
                                                     .-/        .  *~      ,
                                               Owing L:1 Amount: (/J-ti'( qq
                                                                            : _    t":r   ~
                                                                                           I
                                                                                                Of't ,
                                                                                                          ,\.l
                                                                                           ""v-);LtJ.- "u ·


Zoning                    Approved       D     Denied D        Pending ZBA          D              f{!;

Clerk's                   Approved       D      Owing D         Amount: _ __ _

Fire/Inspection         Compliance       D     Remaining Defects _ _ _ __
  Services




Department Signatur~ --:g...------


                                                      Gail A. Kundinger, City Clerk
                                                                      Liouor License Coordinator
PROPERTY - CINQl                                                                                                         Pagel of 1
                                                                                                                Next Screen     j
                                        Charges and Payments Summary
                                                                                                Usage History  I Chrgs/Pymt Hist j
                                                                                               Balance by Utmtyj   Inquire EAP   I
        Organization ii        900                Bill Grp #                                                  Autopay
         Account#              [j~.'.J.16:2_59.41 Start at Date L1031_031              Qwner I Bent       0   Route       907
         Service Address       02536 HENRY ST
         Customer Name         SARDINE ROOM                                            Account Status     A   Date      51700
         Mailing Address       02536 HENRY ST MUSKEGON, MI 49441
         # of Units                               Unit Name                                     # of Meters                1
         Account Balance             291. 34+     Current Charges         151.17+               Arrears               140.17+
         Deposit Amount                           Deposit Date                                  Comments                   NO

              Charge        Due
        Dtl    Date         Date       Charge             Payment        EAP Payment       Description

        _j     31704        41204       151.17+                                           CHARGES
        _j      30804                                          145.66-                    PAYMENT
        _j     21804        31504       140.17+                                           CHARGES
        _j     20504                                           484.68-                    PAYMENT
        _j     12204        21704       162.69+                                           CHARGES
        _j    121803        11204       170.31+                                           CHARGES
        _j    112103       121703       142.37+                                           CHARGES
        _j    103103                                       532.48-                        PAYMENT

                                                                                                                                    GO




http://ntsci/gems 11/PROPERTY/CINQ l .ASP                                                                                  4/1/2004
                                                                              NOV 1 D 2003
             LIQUOR LICENSE REVIE\V FORJ."1                                Cl'       L          I       (,ON
                                                                        f7[ . : ,   ,.i, _, .       ,-'•,•111,W' I


 Bu.siness :fame:

 AK.A Business Name (if applicable):       Sm q I/ &ce-,4       I?? c:.
 Operatol!"/lVIanage:r's Name:

 Business Address:


 Reason for Review:

New License       D        Transfer of Ownership   D       Dance Permit             D
Drop/Add Name on License           •                Transfer Location               D
Drop/Add Stockholder Name          D       New Entert~inment Permit             D
Other         ~w          OutJoo/'      Serv1'cc    &cg
Deadline fo:r reteipt of all information: _ _ _ _ _ _ _ _ __

Police Department Approved         D Denied D      No Action Needed D

Income Tax             Approved •      Owing  D    Amount:

Treasurer              Approved
                                •      Owing D     Amount:

Zoning                 Approved    @   Denied D    Pending ZBA      •
Clerk's                Approved
                                   •   Owing   •   Amount:

Fire/Inspection       Compliance   0   Remaining Defects
 Services




Department Signature      (dud! ·.;;;:/~/Jv...,,~
                                           Gail A. Kundinger, City Clerk
                                                       Liauor License Coordinator
I I- IJ- o3


                      LIQUOR LICENSE REVIEW FORJ.'\tf

     Business Name: _ _ _S=--ca~/1.......,dt:;.;__1'_/J_e_--';&'-'----'-0.......,0'-'/?'/--'-_ _ _ _ _ _ _ __

    AK.A Business Name (if appiicaible):                       Smql/          &c0'4        I/?c .
    Operato1r/lVIanager's Name:

    Business Address:


    Reason for Review:

    New License           D             Transfer of Ownership               D       Dance Permit          D
    Drop/Add Name on License                       D·                         Transfer Location           D
    Drop/Add Stockholder Name                      D            New Entert~inment Permit                  D
    Other               ,d'ew          Ouf/oo/'            Serv1'c G          ffee,q
    Deadline for :receipt of all information: _ _ _ _ _ _ _ _ __

   Police Department Approved                     D     Denied      D      No Action Needed D

   Income Tax                     Approved        •      Owing      D      Amount:

   Treasurer                     Approved
                                                  •      Owing D          Amount:

   Zoning                        Approved         •     Denied D          Pending ZBA           0
   Clerk's                       Approved ~              Owing     •       Amount:

   Fire/Inspection            Compliance          D     Remaining Defects
     Services




   Department Signature_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __


                                                                Gail A. Kundinger, City Clerk
                                                                                 Liauor License Coordinator
                   LIQUOR LICENSE REVIEW FORl'1

 Business Name: _ _ _S=--=a;!..,.:/1.....;c/::;.:_:_i.....:..~-e,_--'-'fq___;o::....;o::..../'YJ'-----'-------- - -

 AK.A. Bu.sin.ess Name (if appiicaible):                       Smq// &ce,/4 Iac.
Operato:r/lVIanager's Name:

Business Address:


Reason for Review:

New License             D             Transfer of Ownership                  D                   D
                                                                                      Dance Permit

Drop/Add Name on License                          D·                           Transfer Location O

Drop/Add Stock.bolder Name                        O              New Entert~inment Permit                    D
Other                /few             OutJoo/'             Serl/1'c G           ffee,q
Deadline for receipt of all information: __________

Police Department Approved                        0    Denied  D            No Action Needed 0

Income Tax                      Approved•                Owing D            Amount:

Treasurer                      Approved
                                        •                Owing D            Amount:
                                                                                                                               ~~
                               Approved •               Denied D                                   0                      .
Zoning                                                                     Pending ZBA

Clerk's                        Approved
                                        •                Owing      •       Amount:                                    \( ( D
                                                                                                                            ~
Fire/Inspection
                                                                                                                      0 ~;\'
 Services




                                                                Gail A. Kundinger, City Clerk
                                                                                   Liauor License Coordinator
//- ( ✓,--0 J



                        LIQUOR LICENSE REVIEW FORJ.'1

      Business Name: _ ___,S~a'--'-/1--=dt-=-1_,/J_e_....:.,.;Y(}.<_;;_o-=-o..;._/'Yl-'--_ _ _ _ _ _ __

      AKA. Business Name (if applicable):                   Smq/) &ce-/4 Iac.
      Operato:r/lVIanager's Name:

      Business Addn-ess:


      Reason for Review:

      New License         D            Transfer of. Ownership            D       Dance Permit         D
      Drop/Add Name on License                   •                                        D
                                                                           Transfer Location

      Drop/Add Stock.bolder Name                 O               New Entert~inment Permit D

      Other             few           Olt/Joo/'          Serf/1'c G        &e.cc
     Deadline for receipt of all information: __________

     Police Department Approved                  D Denied D             No Action Needed D

     Income Tax                  Approved •            Owing       D    Amount:

     Treasurer                   Approved
                                          •            Owing  D         Amount:

     Zoning                      Approved •            Denied D         Pending ZBA         0
     Clerk's                     Approved
                                          •
     Fire/Inspection        Compliance          D •Remainin
       Servic~es             , I)
                   .I     ~~1c{c.../_
                ~                                           ("    A    ' NVO          C.
                                                         be P.·~         ~S.Su.c .


    Department Signaturf                     Mil~.
                                              .   ·                               I
                                                                                      II/; ~
                                                                                           I
                                                                                            /o3
                                                                 Gail A. Kundinger, City Clerk
                                                                              Liauor License Coordinator
  Affirmath•e Action
  616/724-6703
  F AX/722-1214

  Assessor
  616/724-6708
  FAX/724--il78

  Cemetery
  616/724-6783
  FAX/726-5617

  Civil Service
  616/724-6716
  FAX/724-4055                                     West Michigan's Shoreline City
  Clerk
  616/724-6705
  F AX/724-4178

  Comm. & Neigh.
     Services
  616/724-6717
  FAX/726-2501
                       December 18, 2003
 Engineering
 616/724-6707
 FAX/727-6904

 Finance               Small Perch, Inc.
 616/724-6713
 FAX/724-6768
                       2536 Henry
                       Muskegon,MI 49441
 Fire Dept.
 616/724-6792
 FAX1724-6985          Dear Sir:
 Income Tax
 616/724-6770          I have received a letter from the Liquor Control Commission reference your
 F AX/724-6768
                       request for a new outdoor service area at 2536 Henry. An inspection is required
 Info. Systems         by the Fire Marshal for maintenance purposes. Please contact the Fire
 616/724-6706
 FAX/722-4301          Department at 724-6792 to set up the inspection. The Inspection Department
 Leisure Service
                       needs to see drawings of the area involved. Please contact the Inspection
 616/724-6704          Department at 724-6715.
 FAX1724-1196

 Manager's Office      This request will then be presented to the City Commission for their
 616/724-6724
 FAX/722-1214          recommendation. If you have any questions, please contact me at 724-6915.
 Mayor's Office
 616/724-6701          Thank you,
 FAX/722-121-$

Neigh, & Const.
   Sen•ices
616/724-6715
FAX/726-2501           Linda Potter, CMC
Planning/Zoning
                       Deputy Clerk
616/724-6702
FAX/724-6790

Police Dept.
616/724-6750
FAX/722-5140

Public Works
616/724-4100
FAX/722-4188

Treasurer
616/724-6720
FAX/724-6768

Watrr Billing Dept.
616/724-6718
FAX/724-6768

Wat<'r Filtration
616/724-4106
FAX/755-5290             City of Muskel~on, 933 Terrace Street, P.O. Box 536 1 Muskegon, Ml 49443-0536
 Affirmative Action
 (231)724-6703
 FAX (231)722-1214

 Assessor
 (231)724-6708
 FAX (231)726-5181

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

 City Manager
                                                West Michigan's Shoreline City
                                                    www.shorellnecity.com
 (231)724-6724
 FAX (231)722-1214

 Civil Service
 (231)724-6716
 FAX (231 )724-4405
                      April 1, 2004
 Clerk
 (23 I )724-6705
 FAX (231 )724-4178

 Comm. & Neigh.       Ms. Ann Smith, President
 Services
 (231)724-6717
                      Campbell Field Neighborhood Association
 FAX (231)726-2501    1874 Crowley
 Engineering          Muskegon,MI 49441
 (231)724-6707
 FAX (231)727-6904
                      Dear Ms. Smith:
 Finance
 (231 )724-6713
 FAX (231)724-6768    We have received a request from the Liquor Control Commission reference Small
 Fire Department
                      Perch, Inc. (Sardine Room) desire for a new outdoor service area to be held in
 (231 )724-6792       conjunction with their current 2003 Class C-SDM licensed business with Dance
 FAX (231)724-6985
                      Permit and Official Permit (food) located at 2536 Henry. On Tuesday, April 13,
 Income Tax           2004, the City Commission will review this request and determine whether or not
 (231 )724-6770
 FAX (231)724-6768    it should be recommended for approval.
 Info. Technology
 (231 )724-4126       You are being sent this notice because the City Commission would like to know
 FAX (231)722-4301
                      how the Neighborhood Association feels and would appreciate any comments that
Inspection Services   they may have. You may send these comments to 933 Terrace, Muskegon, MI
(231)724-6715
FAX (231)728-4371     49440 or attend the City Commission Meeting on April 13, 2004, at 5:30 p.m. in
                      the Commission Chambers.
Leisure Services
(231)724-6704
FAX (231)724-1196     If you have any questions, please feel free to contact me at 724-6705.
Mayor's Office
(231)724-6701
FAX (231)722-1214
                      Sincerely,
Planning/Zoning
(231)724-6702
FAX (231)724-6790

Pol ice Department    Linda Potter
(231)724-6750         Deputy Clerk
FAX (231)722-5140

Public Works
(231)724-4100
FAX (231)722-4188

Treasurer
(23 I )724-6720
FAX (231)724-6768

Water Billing
(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
  Affirmative Action
  (231)724-6703
  FAX (231)722-1214

 Assessor
 (231)724-6708
 FAX (231)726-5181

 Cemetciy
 (231)724-6783
 FAX (231)726-5617

 City Manager                                     West Michigan's Shoreline Cit;y
                                                      www.shorellnecity.com
 (231)724-6724
 FAX (231)722-1214

 Civil Service
 (231)724-6716
 FAX (231 )724-4405    April I, 2004
 Clerk
 (231)724-6705
 FAX (231)724-4178

 Comm. & Neigh.        Small Perch, Inc.
 Services
 (231)724-6717
                       2536 Henry
 FAX (231)726-2501     Muskegon,MI 49441
 Engineering
 (231)724-6707         Dear Sir:
 FAX (231)727-6904

 Finance               This letter is to inform you that your request for a new outdoor service area to be
 (231 )724-6713
 FAX (231)724-6768     held in conjunction with your 2003 Class C-SDM Licensed Business with Dance
 Fire Department       Permit and Official Permit (food) will be presented to the City Commission on
 (23 I )724-6792       April 13, 2004. This meeting begins at 5 :30 p.m. and is located in the City
 FAX (231)724-6985
                       Commission Chambers, 933 Terrace, Muskegon, MI.
 Income Tax
 (231)724-6770
 FAX (231)724-6768     This request has also been sent to the Campbell Field Neighborhood Association
 Info. Technology
                       for their comments. It is Commission practice to let the Neighborhood
 (231)724-4126         Association know of any liquor license requests that are located within their
 FAX (231)722-4301
                       boundaries. This allows for comments from the people who live there and not
 Inspection Services   just from the owners of the business' who are located there.
 (231)724-6715
 FAX (231)728-4371
                       There is a water bill owed at this time. Please make sure this is paid by April 6,
 Leisure Services
(231)724-6704          2004. If you have any questions, please feel free to contact me at 724-6705.
FAX (231)724-1196

Mayor's Office         Sincerely,
(231)724-6701
FAX (231)722-1214

Planning/Zoning
(231)724-6702
FAX (231)724-6790      Linda Potter
Pol ice Department     Deputy Clerk
(231)724-6750
FAX (231)722-5140

Public Works
(231)724-4100
FAX (231)722-4188

Treasurer
(231)724-6720
FAX (231)724-6768

Water Billing
(231)724-6718
FAX (231)724-6768

Water Filtration
(231)724-4106
FAX (23 l )755-5290     City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, Ml 49443-0536
 Affirmative Aclion
 (231)724-6703
 FAX (231)722-1214

 Assessor
 (231)724-6708
 FAX (231)726-5181

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

 City Manager
                                                 Weat Michigan's Shoreline City
                                                      www.shorellnecity.com
 (231)724-6724
 FAX (231)722-1214

 Civil Service
 (23 I)724-6716
 FAX (231 )724-4405

 Clerk                 April 15, 2004
 (231)724-6705
 FAX (231)724-4178

 Comm. & Neigh.
 Services
 (231)724-6717
 FAX (231 )726-250 I
                       Liquor Control Commission
                       7150 Harris
 Engineering
 (23 I )724-6707       PO Box30005
 FAX (231)727-6904     Lansing, MI 48909-7505
 Finance
 (231)724-6713         REF:   #229231
 FAX (231)724-6768
                              Small Perch, Inc.
 Fire Department
 (23 I )724-6792
                              2536 Henry
 FAX (231)724-6985            Muskegon,MI 49441
 Income Tax
 (231 )724-6770        To Whom It May Concern:
 FAX (231)724-6768

 Info. Technology      Enclosed is the Resolution and form LC-I 636 for Small Perch, Inc. that was
(231)724-4126
FAX (231)722-4301      recommended for approval at the April 13, 2004, City Commission Meeting.
Inspection Services
(231)724-6715          Please do not hesitate to call me at (231) 724-6705 if you have any questions.
FAX (231)728-4371

Leisure Services       Sincerely,
(23 I )724-6704
FAX (231)724-1196

Mayor's Office
(231 )724-670 I
FAX (231)722-1214
                       Linda Potter
Planning/Zoning        Deputy Clerk
(231 )724-6702
FAX (231)724-6790
                       Enc.
Police Department
(231)724-6750
FAX (231)722-5140

Public Works
(231)724-4100
FAX (231)722-4 I 88

Treasurer
(23 I )724-6720
FAX (231)724-6768

Water Billing
(231)724-6718
FAX (231)724-6768

Water Filtration
(23 I )724-4 I 06
FAX (23 I )755-5290     City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
                                               httn~//www .!i:h orf'li neritv .ro m
                 Commission Meeting Date: March 23, 2004               y    ~




Date:         March 24, 2004
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Zoning Ordinance Amendment for Permits


SUMMARY OF REQUEST:

Request to amend Section 2311 (Accessory Structures and Buildings) of Article XXIII
(General Provisions) of the City's Zoning Ordinance to add language regarding permits.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends amendment of the Zoning Ordinance to add language regarding
permits.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 3/11 meeting.
The vote was unanimous with T. Johnson absent.




3/24/2004
                                    Staff Report [EXCERPT]
                                      CITY OF MUSKEGON
                                    PLANNING COMMISSION
                                      REGULAR MEETING
                                          March 11, 2004


Hearing; Case 2004-9: Staff initiated request to amend Section 2311 (Accessory Structures
and Buildings) of the Zoning Ordinance adding language regarding permits ..


BACKGROUND
Staff has come across an oversight in the Zoning Ordinance. On July 31, 2001, The City of
Muskegon began enforcing the State of Michigan Construction Code which said that building
permits would no longer be required for accessory structure for one and two family dwellings
where floor space does not exceed 200 square ft. Therefore the city has required a development
permit for these less than 200 square ft. accessory structures. The language made it into the Shed
brochure but was never added to the Zoning Ordinance. The ordinance language change is
proposed in the first line below in bold italics.

Prohibited Signs and Exempt Signs

Excerpted from Section 2311 (Accessory Structures and Buildings):

SECTION 2311: ACCESSORY STRUCTURES & BUILDINGS

Accessory buildings shall require a development permit or when required by building codes, a
building permit, except as otherwise permitted in this Ordinance, and shall be subject to the
following regulations:

1.     Attached: Where the accessory building is structurally attached to a main building, it
       shall be subject to, and must conform with, all regulations of this Ordinance applicable to
       the main building.

2.     Front Yard, prohibition: Buildings or structures accessory to the principal, shall not be
       permitted in any front yard. Parking lots are prohibited in any residential front yard.
       Security stations within an "I" District may be erected in any yard. [amended 10/02]

3.     Height restrictions: Buildings accessory to residential buildings shall not be more than
       one (1) story or fourteen (14) feet in height.

4.     Detached: Detached accessory buildings shall:

       a. Be at least six (6) feet from any principal building

       b. Be at least three (3) feet from any side or rear lot line.



                                                                                                 2
     c. Not be located within a dedicated easement or right-of-way.

     d. Any accessory structure placed in a residential property or zone in the city shall be of
           residential construction properly painted or sided. Pole style storage buildings
           and sheet metal accessory structures are prohibited in all residential zones or
           developments. [amended 8/01]

5.   Replacement: Existing accessory structures may be replaced on the existing footprint
     provided they are wholly contained within the property and meet the required front yard
     setback.

6.   Satellite Dishes: Satellite dishes over twenty four inches (24") in diameter shall be
     considered accessory structures. The setback placement of satellite dishes shall be
     measured from the outermost edge of the dish.

7.   Number: No more than one (1) accessory building shall be located on any parcel within
     an "R" or "RT" district, except that two (2) may be permitted when one is a garage or
     other shelter for automobiles belonging to the residence.

8.   Not Permitted Prior to a Principal Structure: Accessory buildings and structures shall not
     be erected on a lot or parcel in a residentially zoned district prior to the establishment of a
     principal structure. Where two or more abutting lots are held under one ownership or
     control in a residentially zoned district, the owner may erect an accessory building on a
     lot separate from that one which the principal building is located, provided both lots are
     combined and used as one with a single tax description.
                                      CITY OF MUSKEGON

                               MUSKEGON COUNTY, MICHIGAN

                                      ORDINANCE NO. 2129

An ordinance to amend Section 2311 (Accessory Structures and Buildings), of Article XXIII
(General Provisions) of the City's Zoning Ordinance to create provisions regarding permits.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

Section 2311 (Accessory Structures and Buildings), of Article XXIII (General Provisions) of the
Zoning Ordinance of the City of Muskegon is hereby amended to create provisions regarding permits:

SECTION 2311: ACCESSORY STRUCTURES & BUILDINGS

Accessory buildings shall require a development permit or when required by building codes, a
building permit, except as otherwise permitted in this Ordinance, and shall be subject to the
following regulations:

I.     Attached: Where the accessory building is structurally attached to a main building, it
       shall be subject to, and must conform with, all regulations of this Ordinance applicable to
       the main building.

2.     Front Yard, prohibition: Buildings or structures accessory to the principal, shall not be
       permitted in any front yard. Parking lots are prohibited in any residential front yard.
       Security stations within an "I" District may be erected in any yard. [amended I 0/02]

3.     Height restrictions: Buildings accessory to residential buildings shall not be more than
       one(!) story or fourteen (14) feet in height.

4.     Detached: Detached accessory buildings shall:

       a. Be at least six (6) feet from any principal building

       b. Be at least three (3) feet from any side or rear lot line.

       c. Not be located within a dedicated easement or right-of-way.

       e. Any accessory structure placed in a residential property or zone in the city shall be of
          residential construction properly painted or sided. Pole style storage buildings and
          sheet metal accessory structures are prohibited in all residential zones or
          developments. [amended 8/0 I]

5.     Replacement: Existing accessory structures may be replaced on the existing footprint
       provided they are wholly contained within the property and meet the required front yard
       setback.
6.     Satellite Dishes: Satellite dishes over twenty four inches (24") in diameter shall be
       considered accessory structures. The setback placement of satellite dishes shall be
       measured from the outermost edge of the dish.

7.     Number: No more than one (1) accessory building shall be located on any parcel within
       an "R" or "RT" district, except that two (2) may be permitted when one is a garage or
       other shelter for automobiles belonging to the residence.

8.     Not Permitted Prior to a Principal Structure: Accessory buildings and structures shall not
       be erected on a lot or parcel in a residentially zoned district prior to the establishment of a
       principal structure. Where two or more abutting lots are held under one ownership or
       control in a residentially zoned district, the owner may erect an accessory building on a
       lot separate from that one which the principal building is located, provided both lots are
       combined and used as one with a single tax description.

This ordinance adopted:

       Ayes:      Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron

       Nayes:._N_on
                  _e_ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ __ _

Adoption Date:      April 13, 2004

Effective Date:     April 27, 2004

First Reading:      March 23, 2004

Second Reading:     April 14, 2004
                                            Ord. No. 2129
                                            CERTIFICATE

        111e W1dersigned, being the duly qualified clerk of the City of Muskegon, Muskegon CoW1ty,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
13th day of April, 2004, 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.          ~                    , /

                                                    ~            QC~~ ·
DATED:         April 13           ,2004.
                                                Gail A. KW1dinger, MMC
                                                Clerk, City of Muskegon
                                                                                         r
Publish:        Notice of Adoption to be published once within ten (10) days of final adoption.
                                     CITY OF MUSKEGON
                                     NOTICE OF ADOPTION

Please take notice that on April 13, 2004, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2311 (Accessory Buildings and Structures), of Article XXIII (General
Provisions) of the City's Zoning Ordinance to create provisions regarding permits.

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

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

Published   qiol         17        ,2004              CITY OF MUSKEGON

                                                      By _ _ _ _ _ _ _ _ _ _ _ __
                                                           Gail A. Kundinger, MMC
                                                           City Clerk



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

AccountNo. 101-80400-5354
                   Commission Meeting Date: April 13, 2004




Date:          March 23, 2004
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development (..(!i,
RE:           Sale of Non-Buildable Lot at 550 McLaughlin Avenue


SUMMARY OF REQUEST:

To approve the sale of a vacant non-buildable lot (Parcel #24-205-081-0006-00) at 550
McLaughlin Avenue to Gurney Brower, of 560 McLaughlin Avenue, Muskegon, Ml.
Approval of this sale will allow the owner to expand his current yard. Mr. Brower is
attempting to purchase the small vacant lot directly to the north of this City-owned
property from a private owner. This lot is being offered to Mr. Brower for $1 under the
Dollar Lot Marketing Plan.

FINANCIAL IMPACT:

The sale of this lot will allow the property to be placed back on the City's tax rolls thus
relieving the City of continued maintenance costs.

BUDGET ACTION REQUIRED:

None.

STAFF RECOMMENDATION:

To approve the attached resolution and to authorize both the Mayor and the Clerk to
sign the resolution and the deed.

COMMITTEE RECOMMENDATION:




3/23/2004                                                                              1
                                   CITY OF MUSKEGON

                                   RESOLUTION #2004- 3 s ( a )

RESOLUTION APPROVING THE SALE OF A CITY-OWNED NON-BUILDABLE LOT

WHEREAS, the City of Muskegon has received $1 from Gurney L. Brower, 560 McLaughlin
A venue, Muskegon, MI 49442 for the purchase of a vacant, City-owned lot located adjacent to
his property at 550 McLaughlin Avenue, Muskegon, MI (parcel #24-205-081-0006-10); and

WHEREAS, this lot is considered unbuildable under the City's Zoning Ordinance; and

WHEREAS, the sale would enable the City to place this property back on the tax rolls, and
would relieve the City of further maintenance; and

WHEREAS, the sale of this property would be in accordance with property disposition goals and
the Dollar Lot Marketing Plan.

NOW, THEREFORE BE IT RESOLVED, that the CITY OF MUSKEGON REVISED PLAT
OF 1903 S 76 FT LOT 6 BLK 81 be sold to Gurney L. Brower for $1.


                         th
Resolution adopted this 13 day of April, 2004.

       Ayes:     Larson, Shepherd, Spataro, Warmington, Carter, Davis,
                 Gawron
       Nays:     None

       Absent:    None


                                                   By: ~9~-?-j_~~-/=.~~==~                          '--
                                                        Steph n
                                                        Mayor


                                                   Attest    L           Q.    1

                                                            Gail A. Kundinger, MM
                                                                                ~
                                                                                   /            •


                                                            Clerk
                                        2004-35(d)
                                      CERTIFICATION
This resolution was adopted at a regular meeting of the City Commission, held on April 13, 2004.
The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of
Michigan, Act 267 of the Public Acts of 1976.

                                                      CITY OF MUSKEGON




                                              By         LQ. ~~
                                                             Gail A. Kundinger, MMC
                                                             Clerk
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                                                                  I~ -     -«l
                                                                  lS S/1\/\f/ll/M
                                                                                 - -     -- -- ...l£~---- --
                                                 QUIT-CLAIM DEED

 KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of
 933 Terrace Street, Muskegon, Michigan 49440,

 QUIT CLAIMS to GURNEY L. BROWER, a married man, of560 McLaughlin Avenue, Muskegon, Michigan
 49442,

 the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:

                CITY OF MUSKEGON REVISED PLAT OF 1903, SOUTH 76 FEET OF LOT 6, BLOCK 81

 for the sum of: One Dollar ($1.00)

 PROVIDED, HOWEVER, If the Grantee or adjoining property owner loses the adjoining property due to
 foreclosure or non-payment of taxes, the non-buildable lot shall revert to the Gran tor. At that point in time when
 any lien covers both parcels or there are not liens on either parcel, the property owner may request and the Grantor
 shall agree to waive and terminate the reverter clause.

 This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and
 MCLA 207.526 Sec. 6(h)(i).

 Dated t h i s ~ day of       ~Ct/               , 2004.

 Signed in the presence of:

d,wJJ-4,
 L,,, d   <1.
              dilvt
                 /1,-ft-er

      u~ klank Trucking Co.     $13.78 per ton, delivered
Finance Dept
(23 1)724-67 13
FAX: (23 1)724-6768       500 ton I-12 Limestone Chip Blend ($11.86 in 2003; $0)
Fire Departmen t
                                 Verplank Tl'ucking Co.       $13.78 per ton, delivered
(23 1)724-6792
FAX: (23 1)724-6985
                          9,000 ton Road Slag 22-A Natural ($8.94 in 2003; $23,795)
In come Tax                      Verplank Trucking Co.       $8.67 per ton, delivered
(231)724-6770
FAX: (231)724-6768               Meekhofs Lakeside Dock $10.25 per ton, delivered
Inspection Services
                                 Verplank Trucking Co.       $7.11 per ton, delivered, gravel
(231)724-671 S                   Frank Adams Trucking        $7.60 per ton, delivered, gravel
FAX: (23 1)728-437 1

Leisure Ser vices         500 ton Sylvax Patching Material, UPM-CP-7 ($58.00 in 2003; $8,168)
(23 1)724-6704
FAX: (23 1)724- 1196             Rieth-Riley Construction Co.      $56.00 per ton, delivered
                                 Asphalt Paving, Inc.              $65.85 per ton, delivered
Mayor's O ffice
(23 1)724-670 I
FAX: (231)722- 12 14
                          200 ton Bituminous Asphalt 4: 12, Base ($35.00 in 2003; $15,11 7)
Plan ni ng/ Zonin g              Asphalt Paving, Inc.         $35.00 per ton, picked up
{23 1)724-6702
FAX: (23 1)724-6790
                          1,000 ton Bituminous Asphalt 4:12, Top ($35.00 in 2003; $7,355)
Police Depla r tm ent
(23 1)724-6750                   Asphalt Paving, Inc.         $35.00 per ton, picked up
FAX: (23 1)722-5 140

Public Works Dcpl.        85,000 gallons Calcium Chloride 38% (road brine) ($0.39 in 2003; $25,861)
( 23 1)724-4 100
FAX: (231)722-4188
                                 Liquid Dustlayer, Inc.      $0.39 per gallon, s1n·ead
T reas urer's O ffice
(23 1)724-6720
                          15,000 gallons Calcium Chloride 32% (winter salting) ($0.32 in 2003; $950)
FAX: (23 1)724-6768              Liquid Dustlayer Inc.       $0.32 per gallon, stored
W a ler llllllng Dept.
(231)724-671 8
FAX: (23 1)724-6768

Waler Fillra tlon
(23 1)724-4 106
FAX: (231)755-5290              Department of Public Works & Utilities, 1350 E. Keating Street, Muskegon, Ml 49441
                                                            www.shorelinecity.com
2004 Aggregates, Highway Maintenance Materials, and Concrete
Page2
April 6, 2004


15,000 gallons Polymer Modified Anionic Asphalt Emulsion (HFST Emulsion)
($0. 78 in 2002; no bid in 2003; $0)
         No bid

Concrete mix as needed (7 Sack Mix $64.00* in 2003, $35,436)
      Port City Redi-Mix         $64.00 per cubic yard, 7 Sack Mix, delivered*
      Consumers Concrete         $66.00 per cubic yard, 7 Sack Mix, delivered
      High Grade Concrete Prod. $66.00 per cubic yard, 7 Sack Mix, delivered

*The 7-sack mix is the most commonly used product. It should be noted that concrete
purchases may include several miscellaneous charges, including, but not limited to, hot water,
chloride, small loads, second drops, winter price, extra unload time. High Grade Concrete
Products' bid was low on the majority of miscellaneous charges. However, based on 2003
purchases, the savings realized by awarding the bid to High Grade for their lower
miscellaneous charges did not surpass the savings in purchasing the concrete from Port City
Redi-Mix. Purchases will be made from recommended bidder, contingent upon product
availability, timely deliveries, and prices as quoted.


PMB (L/Docs/Bids/2004 Agg ... Comm Ltr)
          2004 Aggregates, Highway Maintenance Materials and Concrete Bidders




Frank Adams Trucking & Excavating Inc
PO Box 863
Pentwater MI 49449

Asphalt Paving, Inc.
1000 E. Sherman Boulevard
Muskegon MI 49444-0190

Consumers Concrete Corp.
4400 E. Evanston Avenue
Muskegon MI 49442

High Grade Concrete
540 N. Maple Street
Spring Lake MI 49456

Liquid Dustlayer, Inc.
P.O. Box 188
Manistee MI 49660

Meekhofs Lakeside Dock Inc.
16861 120th A venue
Nunica MI 49448

Port City Redi-Mix Company
1780 Sheridan Road
Muskegon MI 49442

Rieth-Riley Construction Co., Inc.
867 Egypt Valley
Ada MI 49301

Verpiank Trucking Co.
PO Box 8
Fen-ysburg MI 49409


PMB (L/Docs/Bids/2004 Agg ... Comm Ltr)
Date:     04/06/04
To:       Honorable Mayor and City Commission
From:     Brett Kraley, Equipment Supervisor DPW
RE:       Video Systems




SUMMARY OF REQUEST: Approval to purchase ten video systems for police
cruisers.



FINANCIAL IMPACT: Cost per unit $5,907.50



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approve purchase of new video systems for
police cruisers.
Memorandum
To:      Honorable Mayor and Commissioner
From: Brett Kraley
Date: 04/06/04
Re:     Video Systems



   The VHS systems that we began replacing last year continue to fail on a regular
basis, costing the police department both staff time and lost use of the vehicle. These
systems have been in service for seven years of continuous 24-hour operation and
are in need ofreplacement. We would like to begin retrofitting ten (10) of the lowest
mileage cruisers with new DVD systems to ensure dependable service to the
community.

   The vendor for this purchase is Kustom Signal from Lenexa, Kansas, the same
company from which we purchased the ten systems last year. We have been more
than satisfied with their product and service. We expect to complete the purchase of
the final seven (7) systems in 2005.

    I recommend we begin the process of retrofitting our cruisers with the purchase
of ten (I 0) new DVD systems from Kustom Signal.




                                                                                          1
           Commission Meeting Date: April 13, 2004




Date:      April 2, 2004
To:        Honorable Mayor & City Commission
From:      Planning & Economic Development Departmente6C-
RE:        Sheldon Park Neighborhood Maintenance
           Agreement


SUMMARY OF REQUEST: To approve the attached Agreement
between Sheldon Park Neighborhood Association and the City of
Muskegon. We have had an agreement with the Neighborhood
Association since 1997, which has been renewed every 1-2 years.



FINANCIAL IMPACT: The City donates $2,000 to the Association to
maintain the Northwest corner of Evanston and Oak Grove Street and
the South side of McLaughlin Avenue just East of Burton Road. This is
for the term of the Agreement (May 1, 2004-December 31, 2005).


BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: To approve the attached Agreement and
authorize the Mayor and Clerk to sign.


COMMITTEE RECOMMENDATION: None.
                                                                                         2004-36(h)




                           CITY OF MUSKEGON
              NEIGHBORHOOD CITY LOT MAINTENANCE AGREEMENT


         THIS AGREEMENT effective May 1, 2004 is made between the CITY OF MUSKEGON, 933
Terrace Street, Muskegon, Michigan ("City") and the SHELDON PARK NEIGHBORHOOD
IMPROVEMENT ASSOCIATION, of I 128 Roberts Street, Muskegon, Michigan ("Sheldon Park"),
because Sheldon Park wishes to accomplish and perpetuate the maintenance of the City owned lots on the
attached Exhibit A for the betterment and beautification of their neighborhood, and because the City wishes
to encourage neighborhood associations such as Sheldon Park in this way and in general involvement in the
neighborhoods of the City.

         THEREFORE THE PARTIES AGREE:

         l.       Maintenance of the City Lots. Sheldon Park shall maintain, by mowing or by any other
action required, the City owned lots attached in Exhibit A in compliance with all applicable City codes and
ordinances for the term of this agreement.

          2.       Compensation. In return for Sheldon Park's services and its interest in the neighborhood,
the City agrees to donate the sum of $2,000 to Sheldon Park, for its general purposes including but not
limited to materials and improvements on the lots, but further for the general purposes of Sheldon Park in its
work as a neighborhood improvement association.

         3.       Special Conditions.

                  3. l Sheldon Park agrees that it will not employ persons to accomplish the mowing
        and landscaping of the lots, but the work is being done by volunteers recruited by or members of
        Sheldon Park. The persons actually accomplishing the services or services related to the work on
        the lots shall not be compensated, except to reimburse out-of-pocket expenditures in connection
        with the work.

                  3 .2 Sheldon Park agrees that it has inspected the lots, and fmther has determined that
        there are no hazards or dangerous conditions on the lots which may be expected to cause injury.
        In the event any such condition becomes known to Sheldon Park or any of its volunteers, Sheldon
        Park agrees to notify the City immediately.

                3 .3 Sheldon Park agrees to obtain a waiver on the form attached as Exhibit B from each
        person performing the work as a volunteer and deliver the same to the City before the work
        begins.

                3.4 The persons volunteering to do the work shall not be considered City employees.
        They shall not be subject to City control or supervision.

                3.5 Sheldon Park shall use its best efforts to assure that the properties will be
        maintained in accordance with applicable City codes and ordinances.
          4.      Term of the Agreement. This agreement shall have a term of May I, 2004 through
December 31, 2005. Payments of the amount for said shall be made at reasonable intervals during the term
of this agreement. The agreement may be terminated by either party on 30 days notice.

                  IN WITNESS WHEREOF, the parties execute this agreement effective on the date set
forth above.




Dated:   4'ci/      JS- , 200'-J



Dated:   J;r:,/      IS , 200':/




Dated:_~
       _   _,_/_5~---'
           l
                           200'!




                                            EXHIBIT A

               LOCATION AND LEGAL DESCRIPTIONS OF CITY LOTS


                                                   2
                   Commission Meeting Date: April 13, 2004

Date:          March 18, 2004
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development              c/;;C-
RE:            Public Hearing - Request for an Industrial Facilities
               Exemption Certificate - United Sign Company


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, United Sign Company, 2068 E.
Sherman Boulevard, Muskegon, Michigan, has requested the issuance of an Industrial
Facilities Exemption Certificate. The total capital investment for this project is $652,095
in personal property will lead to the retention of 2 jobs. This request qualifies United
Sign Company for a 6-year exemption on personal property. United Sign Company's
current workforce is 16.

FINANCIAL IMPACT:

The City will capture certain additional property taxes and income taxes generated by
the expansion (see attached Summary Sheet).

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting an Industrial Facilities Exemption
Certificate for a term of six (6) years for personal property to United Sign Company.

COMMITTEE RECOMMENDATION:

None




3/18/2004
                                         Resolution No. 2004-37 (a)

                                   MUSKEGON CITY COMMISSION

                     RESOLUTION APPROVING APPLICATION FOR ISSUANCE
                      OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE

                                       UNITED SIGN COMPANY

WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed pubic hearing held on July
     26, 1983, this Commission by resolution established an Industrial Development District as
     requested by the City of Muskegon for the owners of property in the Port City Industrial
     Park, Muskegon, Michigan 49444; and

WHEREAS, United Sign Company has filed an application for the issuance of an Industrial Facilities Tax
     Exemption Certificate with respect to new machinery and equipment to be installed within said
     Industrial Development District; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
     April 13, 2004, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing
     the applicant, the assessor and representatives of the affected taxing units were given written
     notice and were afforded an opportunity to be heard on said application; and

WHEREAS, the installation of machinery and equipment had not begun earlier than six (6) months before
     March 15, 2004, the date of the acceptance of the application for the issuance of an Industrial
     Facilities Tax Exemption Certificate; and

WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable
     likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and

WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of
     Muskegon, will not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the
     SEV of personal and real property thus exempted.

NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of
      Muskegon, Michigan that:

        1) The Muskegon City Commission finds and determines that the Certificate considered
           together with the aggregate amount of certificates previously granted and currently in force
           under Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts
           of 1978 as amended shall not have the effect of substantially impeding the operation of the
           City of Muskegon or impairing the financial soundness of a taxing unit which levies ad
           valorem property taxes in the City of Muskegon.

        2) The application of United Sign Company, for the issuance of an Industrial Facilities Tax
           Exemption Certificate with respect to installation of new machinery and equipment on the
           following described parcel of real property situated within the City of Muskegon to wit:

               CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER NO 5 LOT 58


        3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force
           and effect for a period of six (6) years on personal property.
                                                           2004-37(a)


               th
Adopted this 13 Day of April 2004


Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, Shepherd

Nays: None

Absent:   None

                                    BY:
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                   Commission Meeting Date: April 13, 2004

Date:          March 18, 2004
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development c.1,c..-
RE:            Public Hearing - Request for an Industrial Facilities
               Exemption Certificate - Total Quality Machining, Inc.


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, Total Quality Machining, Inc, 2226
Olthoff Drive, Muskegon, Michigan, has requested the issuance of an Industrial
Facilities Exemption Certificate. The total capital investment for this project is $129,503
in personal property will lead to the retention of 10 jobs. This request qualifies Total
Quality Machining, Inc. for a 6-year exemption on personal property. Total Quality
Machining, lnc.'s current workforce is 10.

FINANCIAL IMPACT:

The City will capture certain additional property taxes and income taxes generated by
the expansion (see attached Summary Sheet).

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting an Industrial Facilities Exemption
Certificate for a term of six (6) years for personal property to Total Quality Machining,
Inc.

COMMITTEE RECOMMENDATION:

None




3/1812004
                                          Resolution No. 2004-37(b)

                                    MUSKEGON CITY COMMISSION

                      RESOLUTION APPROVING APPLICATION FOR ISSUANCE
                       OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE

                                    TOTAL QUALITY MACH/NG, INC.

WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed pubic hearing held on
     February 23, 1999, this Commission by resolution established an Industrial Development
     District as requested by Reid Tool Supply Company, 2265 Black Creek Road, Muskegon,
     Michigan 49444; and

WHEREAS, Total Quality Machining, Inc. has filed an application for the issuance of an Industrial
     Facilities Tax Exemption Certificate with respect to new machinery and equipment to be installed
     within said Industrial Development District; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
     April 13, 2004, at the Muskegon City Hall in Muskegon, Michigan at5:30 p.m. atwhich hearing
     the applicant, the assessor and representatives of the affected taxing units were given written
     notice and were afforded an opportunity to be heard on said application; and

WHEREAS, the installation of machinery and equipment had not begun earlier than six (6) months before
     March 15, 2004, the date of the acceptance of the application for the issuance of an Industrial
     Facilities Tax Exemption Certificate; and

WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable
     likelihood to retain, create, or prevent the loss of employment in Muskegon, Michigan; and

WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of
     Muskegon, will not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the
     SEV of personal and real property thus exempted.

NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of
      Muskegon, Michigan that:

        1) The Muskegon City Commission finds and determines that the Certificate considered
           together with the aggregate amount of certificates previously granted and currently in force
           under Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts
           of 1978 as amended shall not have the effect of substantially impeding the operation of the
           City of Muskegon or impairing the financial soundness of a taxing unit which levies ad
           valorem property taxes in the City of Muskegon.

        2) The application a/Total Quality Machining, Inc., for the issuance of an Industrial Facilities
           Tax Exemption Certificate with respect to installation of new machinery and equipment on
           the following described parcel of real property situated within the City of Muskegon to wit:

           CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER NO 4 LOTS 39 & 40


        3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force
           and effect for a period of six (6) years on personal property.
                                                                                 2004-37(b)


Adopted this 13v, Day of April 2004


Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro

Nays: None

Absent:   None

                                          BY:


                                          ATTEST:




I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting hel_d o April I 3, 2004.
      Date I O \               6103
      Bill of Lading No. 13 2 2 3 9                                                                                                 Truck No.
                                                                                                                                    Load No.
                                                                                                                                   Trailer No. _ _ _ _ _ _ __

                                                           STRAIGHT BILL OF LADING
                                                                   ORIGINAL -- NOT NEGOTfABLE
      CARRIER Bennett Motor Express. Inc.,                                                                                      (SC:AC) BGME                            US DOT No. 092693
                        lOOrindustrial Pn!'kway, 1'.O. Box 569. McDonough, GA 30253                                                                                     MC-lCC 129712
      FRpM: Shipj)ei Address (Origin)                                .                               TO: *Con_s}gnceAddress O)estination)
                       NS v\.hre-hw ~ 10-t'o..,\ Ou.a.J 17c1
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       5'6 ~rot\+ '2:,'T.             rz_1._Z..1.L:, 0 I¼ o 'j::F'
       'f,li -z_a,be#i, N0 0--rzh (p M U5!. \(;qp11 t rY) i o/1 lf44
     Nlaiio q /'.) 6-0 ~2l8~h;nmene. /he'"~~.                                                                     :.::=::~                ,o,,,;~-:.~,
                                                                                                                                                                   7 7
                                                                                                                                                                    (,;, IB 2.$
       RECEIVED the p1openy dc:~ribr.lf below, in .uppnrcllt good order, ext.:ept a.~ noted (content!; .tml c_on.dltioru,: of coment~ of J)3Cktige:; unknown) marked, conhigned, .ind
       d~tincd as ah own above, which 11;1id t."ilrri.i:r (th~ won.I carrier bting underslOOtl'thnmghoui the COll!t'.ict n;; ri1ean.ing uny pe1'$0n or corporalion in possession of the propcrzy
       undet the ·contract) Ugrcc.!: ·to carry to it~ u~tia.l pla.oo of ddivery 'at s.UU tJe;i;tination, if on it:: ro\:itt:; othc-rvijse tlt:livcr to another carrit:r on the route io said clesdnation. It is
      :mutILiJly a..._ii:n:e~; a~'IO l'~Ch carrier Or all or .any of said property over all or ,1ny ponior\ tif :;aid l'Oute to' dest..in:U:ion; und .a.~ 10 each ps.ny at . ., ·'. '''':tf·/ :''.'';"''.<:?:::'.::j:;,1!,j ~f'"'
::,,;ci :fM~]fff''~l];;''""l':"'' :;: . . ::                        ,.                              . ;;:          ~ 2.4             bft N~'  77C.€ !Z.fltiJ~-~ ..
       Addres·s~
                                                                                                       ADDRESS:·

                                                                                                                ~       wt.vsr-  ~a1Je1/Z.. ei4iv\ -~
      'Zip:                                                                                                         , "TFKlt'Lt • '1- Io - ti .3
       No.                                                     Description                                                         -.WeJght                Rate                   Miles              Total




                                    C,0,D. FEE                                                  PREPAID                                                       COLLECT

       C.O.D. AMT:'$                                                                 $                                      $
        Subj~t to Section 7 of conditions !f the .~hinment is to be delivered 10 the co11Ji81,ei: wi!hout rccour.~i: 011 the co11t.iinor, the con~it,nur :;h11ll .~lgfl the followin_g :.ra~menl
        Toe_ can:ie\'·sb1\l1 npt make delivl!ry of tlut. shipment w.ithout p3ymen1 o/ frclght l'!,l\(i alf other ls.wful .¢h,    2004 by Stephen
Wannington, Mayor, and Gail Kundinger, City Clerk, of the City of Muskegon.


                                              ~
                                              L,.,.,t:f.,. s.    4,.f-~r
                                                                      -~
                                                                                                  , Notary Public
                                              __,,/,~?..,/_,,u,.,s~k.u.;-f::;"J"'.JZ="-'-,,-'------ County, Michigan
                                              My commission expires: _.,_9_-_,.,.;3""'0'--_,,0'--'~"----

Prepared by:
David W. Charron
Charron & Hanisch, PLC
5242 Plainfield Avenue NE
Grand Rapids, MI 49525
Date:     March 31, 2004
To:       Honorable Mayor and City Commissioners
From:     Ric Scott
RE:       Hartshorn Marina Proposals


SUMMARY OF REQUEST:
To authorize staff to negotiate a contract with Westrec
Management, Inc. to manage Hartshorn Marina and other
marina properties beginning in 2005


FINANCIAL IMPACT:
Unknown


BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Approve


COMMITTEE RECOMMENDATION:
Date:     March 31, 2004
To:       Honorable Mayor and City Commissioners
From:     Ric Scott
Re:       Hartshorn Marina Proposals
On February 2, 2004, three proposals were   received for
the contracting out of Hartshorn Marina.    Two proposals
were received before the 2:00 opening and   one proposal
(Westrec) was received just after 2:00 as   the overnight
company delivered it late.
After a review of the proposals, staff is recommending
that you reject all proposals, but authorize staff to
enter into negotiations with Westrec for a contract to
operate the marina and other facilities for the 2005
season. Westrec manages the City of Chicago's marinas
and would like to better evaluate this seasons
operations before committing to a contract for 2005.
Any proposed contract will also need the approval of the
Waterways Commission of the DNR.
I would ask that you authorize staff to negotiate a
contract for contracting out the marina operations for
2005. The contract would be brought back for your
approval.
Thank you for your consideration.
                                                                                     Q,
             Commission Meeting Date:




Date:         April 1, 2004                                                /(~       jJ~ / /
To:           Honorable Mayor & City Commission                                  It     ~ V\
From:         Planning & Economic Development Department cfb{.,,
RE:           Request for Extension of Deadlines for Former
              Lakos Property


SUMMARY OF REQUEST: On February 8, 2000, the City of Muskegon and Desiree
Enterprises (Holiday Inn) entered into a "Real Estate Agreement" for the sale of the
former Lakos property. At that time, the owners were required to construct a building
on the premises within 18 months of closing. On January 22, 2002, an "Amendment
Agreement" was entered into between the parties, which allowed for the buyer to
construct a parking lot on the premises by May 31, 2002 (which was accomplished),
to provide a written schedule of the construction activities to the City by January 15,
2003 (which has not occurred) and to complete the improvements by January 15,
2005. The City has requested the construction schedule from the buyer. However,
the purchaser has submitted a letter requesting another time extension (the most
recent letter from Mr. Elkhouly requests a 10-12 month extension- see letters
attached). Since no schedule or building plans have been forthcoming, and due to
the fact that the "Amendment" has been violated, staff is recommending the City
proceed with a reversion of the property back to the City.

FINANCIAL IMPACT: The City will have an additional piece of property that can be
sold for future development.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To deny the request to extend the deadline for the
"Amendment" and to proceed with legal action to cause the property to be reverted to
the City of Muskegon. However, if the City Commission would prefer that an
extension be granted, staff recommends that the Commission refer the item back to
staff to negotiate with the purchaser for acceptable terms.

COMMITTEE RECOMMENDATION: None.
APR. 2.2004     11:11AM        HOLIDAY INN MUSKEGON                                            N0.547       P,2/2


                               -1!' -\l~ ~Y\J\:
                                     MuskeGoN                4)    H<\.Rl30lt




   April 2, 200!t



   Caihy Brubaker-Clarke
   Community and Encomil!Bts Development
   City of Muskegon
   933 Terrace Street
   POBOXS36
   Muskegon, MI 49443


   Re: Desiree Enk:rpriaes, Inc


   Dear Mrs. Brubaker,,Clarke,
             Oil beh1ilf of Desiree Enterprises, Inc we would like to itiquest an eicoonsion on the construction for
   the funner Lekoa Property. We are BSklng fur a 10-12 month i:=KtenSion because we need to be prepared fur
   the upcoming doWQto\W. development, This will help us decide on what will be most beneficial for Desiree
   Elltaprises Inc, to decide on what to lllllke oftllis property fur our community and our investment. Also due
   1n the diftlcu1t time in 011r cocniomy this will make us more efficient to be prepared fur the development
   Demr:eeF.ttterpriSl!!IJno, will have, asp!!cifioplan to llbowwhlli. Will beplanr!!,d fur1bls property and this
   plan will be completed by the end of October 2004. The cons1ruotion fur this property y,i]J start by the end
   ofMiirch 2005, We would appreciate the understanding and support in this situatiOIL Please 1Bke this request
   into consideratlon due to the fiwt that we are looking forward to the growth in our community and to make
   the best of dmwtawn Muskegon.




   Oftlllll! Elldiouly, CHA
   General ~/Owner
   HQl.!!ley Inn M;l.l$.,SQn lffllpqr




                               939   Tu,tttt Snu~m • MuskeGON, M1cbUifAN 49440•1191"
                                      TeL&Pl:>ON~ 1616' ru-o,oo • FA.lC Hms• 122--s11a
                                                                                                                       ...
                                                                                                                       't,J
                 A & M HOSPITALllY AND MANAGEMENT, INC.
                               24 725 Greenfield Road
                                Southfield, Ml 48075


AKRAM G. NAMOU                                                         Direct Dial 248.557.9030
President                                                              Fax:        248.557.05 13

                                                             '         March 5, 2004
                                                     , '.. ,,. 1, r



Cathy Brubaker-Clarke
Director of Community &
Economic Development
City of Muskegon
933 ·rerrace Street, P.O. Box 536
Muskegon, MI 49443-0536

                       RE:     Former Lakos Property adjacent to Holiday Inn.

Dear Ms Brubaker-Clare,

        Thank you for your letter of February 11, 2004 with respect to the above property.
The past tlu·ee years have flown by. We are excited about improving the propetiy, and
look forward to working with you. With this in mind, the past three years have seen an
economy that has made working in the Hospitality Industry very difficult. Since 911, like
other Hotels throughout the country, the Holiday Inn has suffered a sharp drop in
occupancy levels. We have put substantial investment into the Holiday Inn and in spite of
the troubled economy we are committed to riding out these difficult times. I'm sure that
you have a front row seat to view the many challenges faced by the entire city of
Muskegon in this business enviromnent. As a result, financing new construction has
become a very arduous task.

        In spite of these factors. we believe that there is still potential for developing this
property, but believe that the timing could be improved by delaying the project. For these
reasons we would ask for your consideration for a reasonable extension of the deadlines
in the purchase agreement, perhaps for up to three years.

         Please give me a call so that we can discuss the arrangements necessary to this
project. Your consideration is greatly appreciated.

                                       Si, cercly,     ~


                                       Alt~            ~ou
                                       President
                                   REAL ESTATE PURCHASE AGREEMENT


         THIS AGREEMENT is made i;-._,.,..__..,.__..., ~ , 2000, by and between CITY OF
 MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon, Michigan 49440
 ("Seller"), and MUSlffiCON ~IIGH'FS, INC., of 939 Third Street, Muskegon, Michigan 49440
 ("Buyer").     -.D~ ~"L-"L ~?'(Z.I."!.L 5 , .:c.r-l<...


         1.     General Agreement and Description of Premises. Seller agrees to sell, and
Buyer agrees to buy, marketable record title of real estate, and all improvements thereon, with all
beneficial easements, and with all of Seller's right, title and interest in all adjoining public ways,
the real property commonly known as 428 W. Western Avenue, Muskegon, Michigan
("Premises"), and specifically described as:

                   Lot 8, EXCEPT the Easterly four inches thereof, and all of Lots 9,
                   10 and 11; also Lot 12, EXCEPT the Southwesterly 6/1 0ths of a
                   foot, of Block 566 of the Revised Plat of the City of Muskegon.

Subject to the reservations, restrictions and easements ofrecord, provided said reservations,
restrictions and easements of record are acceptable to Buyer upon disclosure and review of the
same, and subject to any governmental inspections required by law.

        2.      Purchase Price and Manner of Payment. The purchase price for the Premises
shall be Thirty Five Thousand Dollars ($35,000), payable as follows:

                   Fifteen Thousand Dollars ($15,000) shall be paid to Buyer in certified funds at
                   closing;

                   The balance of Twenty Thousand Dollars ($20,000) shall be paid in two payments
                   of Ten Thousand Dollars ($10,000) each, on the anniversary date and the second
                   anniversary date of the closing. Balances due from time to time shall accrue
                   interest, compounded monthly, at 6% per annum. Buyer shall execute a Land
                   Contract in the form attached to this Agreement reflecting the said payment
                   arrangement (Exhibit A). The Land Contract shall carry the conditions and
                   indemnity provisions set forth in this Agreement.

         3.     Taxes and Assessments. All taxes and assessments which are due and payable
at the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special
assessments which become due and payable after Closing shall be the responsibility of Buyer.

        4.      Title Insurance. Seller agrees to deliver to Buyer's attorney, ten (10) days prior
to closing, a commitment for title insurance, issued by Transnation Title Insurance Company, for
an amount not less than the purchase price stated in this Agreement, guaranteeing title on the
conditions required herein. In the event the reservations, restrictions or easements of record
disclosed by said title commitment is, in the sole discretion of Buyer, deemed unreasonable,
Seller shall have forty-five (45) days from the date Seller is notified in writing of such

G:\COMMON\5\GTJ\C-RLESnLAKOS3.PA                  - 1-
unreasonableness of restriction and such unmarketability of title, to remedy such objections. If
Seller resolves such restrictions and remedies the title (by obtaining satisfactory title insurance or
otherwise) within the time specified, Buyer agrees to complete this sale as herein provided,
within ten ( 10) days of written notification thereof. If Seller fails to resolve such restrictions or
remedy the title within the time above specified or fails to obtain satisfactory title insurance, this
Agreement will be terminated at Buyer's option. The premium for the owners title policy shall be
paid by Buyer.

        5.     Personal Property and Fixtures. All personal property and fixtures which Seller
wishes to remove shall be removed on or before Closing. The parties are aware that Buyer
intends to demolish the building. Any personal property which is left on the Premises shall be
the property of Buyer who may dispose of same.

        6.      Survey. Buyer at its own expense may obtain a survey of the Premises, and
Buyer or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If
no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to
the location, boundaries and area of the Premises and improvements thereon without regard to
any representations that may have been made by Seller or any other person. In the event that a
survey by a registered land surveyor made prior to closing discloses an encroachment or
substantial variation from the presumed land boundaries or area, Seller shall have the option of
effecting a remedy within thirty (30) days after disclosure, or tendering Buyer's deposit in full
termination of this Agreement, and paying the cost of such survey. Buyer may elect to purchase
the Premises subject to said encroachment or variation.

          7.        Environmental Matters. Seller represents and warrants to Purchaser as follows:

                  a.      To the best of Seller's knowledge, the Premises have been used and
          operated in compliance with all applicable federal, state and local laws and regulations
          related to air quality, water quality, waste disposal or management, hazardous or toxic
          substances, and the protection of health and the environment.

                 b.      Seller has not disposed of any hazardous or toxic substances on or in the
          Premises and, to the best of Seller's knowledge, the Premises and the groundwater
          beneath the Premises is free from environmental contamination of any kind.

                 c.     The Premises does not include any "underground storage tank," as that
         term is defined by state or federal law.

        Such representations and warranties shall be deemed to have been made again by Seller
as of the Closing. The representations, warranties and covenants set forth in this paragraph shall
survive the Closing.

     8.   Condition of Premises and Examination by Buyer. NO IMPLIED
WARRANTIES OF HABITABILITY, QUALITY, CONDITION, FITNESS FOR A
PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE
BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WAIVES ANY AND ALL

G:\COMMON\5\GTJ\C-RLEST\LAK0S3.PA                 -2-
  SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE
  PREMISES ARE TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS,
  CONDITIONS AND/OR EXPRESS WARRANTIES CONTAINED IN THIS PURCHASE
  AGREEMENT, ALSO SUBJECT TO THE WARRANTY OF BUYER THAT NO
  HAZARDOUS SUBSTANCES HAVE BEEN PLACED ON THE PREMISES BY THE
  SELLER. BUYER FURTHER SAYS THAT IT HAS PERSONALLY INSPECTED THE
  PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE
  BUILDINGS AND IMPROVEMENTS THEREON, AND THAT THE PROPERTY IS BEING
  PURCHASED AS A RESULT OF SUCH INSPECTION AND INVESTIGATION AND NOT
  DUE TO ANY REPRESENTATIONS MADE BY OR ON BEHALF OF SELLER.

  BUYER FURTHER AGREES TO INDEMNIFY AND HOLD THE SELLER HARMLESS FOR
  ALL COSTS, ATTORNEY FEES, FINES, PENALTIES OR OTHER EXPENSES WHICH
  MAY BE SOUGHT FROM SELLER BY REASON OF THE ENVIRONMENTAL
  CONDITION OF THE PREMISES. BUYER ACKNOWLEDGES THAT THE SELLER HAS
  NOT PHYSICALLY OCCUPIED, USED, MAINTAINED OR IMPROVED THE PREMISES
  SINCE IT RECEIVED THE TITLE IN EXCHANGE FOR A DEBT DUE IT FROM BUYER'S
  PREDECESSORS FAR IN EXCESS OF THE MARKET VALUE OF THE PREMISES.
  BUYER FURTHER ACKNOWLEDGES THAT THE SELLER IS CONVEYING THE
  PREMISES FOR A PRICE SUBSTANTIALLY LESS THAN THE APPRAISED VALUE,
  AND THE AGREEMENT TO INDEMNIFY AND HOLD SELLER HARMLESS, TOGETHER
  WITH OTHER AGREEMENTS FOUND IN THIS CONTRACT, IS PART OF THE
  CONSIDERATION AS A RESULT.

           9.      Condition: To Construct Improvements. Buyer acknowledges that, as part of
  the consideration inuring to the City, and as a condition of this sale, Buyer shall construct on the
  premises a building and all improvements within eighteen (18) months of the closing of this
  transaction. The building and all improvements shall be qualified for the issuance by the City of
  a Certificate of Occupancy or Compliance by that time and, in the event that has not occurred,
  the property and all improvements then installed shall revert in title to the City, without any
  compensation or credit to Buyer. In the event the said completion date cannot be met by Buyer
  for reasons beyond the control of Buyer, such as environmental or governmental regulatory
  orders which actually delay construction (not caused by buyer), Buyer may request, in writing, at
  least thirty (30), but no more than sixty (60), days before the end of the said eighteen month
  period, an extension oftime for said completion, giving the reasons therefor and seeking an
  extension for no longer than 12 additional months, (for a total ofno more than 30 months). The
  city shall not unreasonably refuse the request. The covenants in this paragraph shall survive the
  closing and run with the land.

                 As further condition of this Agreement, and subject to the reversion above, Buyer
 shall construct the said building and all improvements having the following structural and
 appearance characteristics:

                      9.1       The building shall have a height equal to the prevailing height of
                                neighboring buildings, to be at least twenty feet at the front building
                                line.

, G:\COMMON\5\GT J\C-RLES1'LAKOS3.PA                     -3-
                                                                                                .-
                     9 .2      The building shall have a front building line at the same depth as
                               neighboring buildings.

                    9 .3       The building presently on the premises shall be demolished and legally
                               disposed of within 150 days after the closing.


        10..     Real Estate Commission. Buyer and Seller both acknowledge and agree that
neither has dealt with any real estate agents, brokers or salespersons regarding this sale, and that
no agent, broker, salesperson or other party is entitled to a real estate commission upon the
closing of this sale. Buyer and Seller both agree to indemnify and hold the other harmless from
any liability, including reasonable attorney fees, occasioned by reason of any person or entity
asserting a claim for a real estate commission arising from actions taken by the other party.

        11.     Closing. The closing date of this sale shall be on or before - - - - - ~
2000 ("Closing"). The Closing shall be conducted at the closing office of Transnation Title
Insurance Company in Muskegon, Michigan. If necessary, the parties shall execute an IRS
closing report at the Closing.

       12.     Delivery of Land Contract. Seller shall execute and deliver the Land Contract
(Exhibit A) to Buyer at Closing.

        13.    Date of Possession. Possession of Premises is to be delivered to Buyer by Seller
on the date of Closing.

        14.    Costs. Seller shall be responsible to pay the Michigan transfer tax in the amount
required by law. Seller shall be responsible to pay for the recording of any instrument which
must be recorded to clear title to the extent required by this Agreement. Buyer shall pay for the
cost ofrecording the warranty deed to be delivered at Closing, and, as stated above, the title
insurance premium.

          15.       General Provisions.

                a.     Paragraph Headings. The paragraph headings are inserted in this
          Agreement only for convenience.

                   b.    Pronouns. When applicable, pronouns and relative words shall be read as
          plural, feminine or neuter.

                 c.     Merger. It is understood and agreed that all understandings and
          agreements previously made between Buyer and Seller are merged into this Agreement,
          which alone fully and completely expresses the agreement of the parties.

                 d.      Governing Law. This Agreement shall be interpreted and enforced
          pursuant to the laws of the State of Michigan.



G:\COMMON\5\GT J\C-RLEST\LAK0S3.PA                     -4-
                 e.      Successors. All tenns and conditions of this Agreement shall be binding
          upon the parties, their successors and assigns.

                  f.      Severability. In case any one or more of the provisions contained in this
          Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
          respect, such invalidity, illegality, or unenforceability shall not affect any other provision
          of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or
          unenforceable provision( s) had never been contained herein.

                 g.       Survival of Representations and Warranties. The representations,
          warranties, covenants and agreements contained in this Agreement and in any instrument
          provided for herein shall survive the Closing and continue in full force and effect after the
          consummation of this purchase and sale and continue until all liabilities of Buyer have
          been fully satisfied.

                 h.     Modification of the Agreement; No other Agreement. This Agreement
          and the Land Contract shall not be amended except by a writing signed by Seller and
          Buyer. There is no other agreement, express or implied, between the parties except this
          one and the Land Contract which will be signed at closing.

       The parties have executed this Real Estate Purchase Agreement the day and year first
above written.

WITNESSES:
                                                     SELLER: CITY OF MUSKEGON

                                                     By~~./)~
                                                      Fred~en,May r

                                                     By~O.
                                                         Gail A. Kundinger, Clerk




                                                     TID No. _ _ _ _ _ _ _ _ _ _ __




Drafted by:                                          Business Address:
PARMENTER O'TOOLE                                    175 W. Apple Avenue, P.O. Box 786
BY: G. Thomas Johnson                                Muskegon, Michigan 49443-0786




G:\COMMON\5\GTJ\C-RLEST\LAKOS3.PA                  -5-
                                        AMENDMENT AGREEMENT
                                                2002-11 (a)
        THIS AGREEMENT is made, effective January 22, 2002 by and between the CITY OF
MUSKEGON, a municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan
49440 ("Seller"), and DESIREE ENTERPRISES, INC. of939 Third Street, Muskegon,
Michigan 49440 ("Buyer"). This agreement constitutes an amendment to a certain Real Estate
Purchase Agreement between the parties dated February 8, 2000, and a Land Contract between
the parties dated March I, 2000, a memorandum of which was recorded on March 6, 2000, at
Liber 3020 Page817, Muskegon County Register of Deeds. In all other respects the said
agreements shall remain in full force and effect.

        I.       Extension of Time for Completion of Improvements. The Buyer shall have an
extended period of time within which to construct the improvements contemplated by Section 9
of the Real Estate Purchase Agreement, so that the time for completion shall now be January 15,
2005, or if the parking lot is not completed by the date set forth below (May 31, 2002), then
January 15, 2003. This extension is made on the following conditions. The failure of the Buyer
to observe any one of these conditions shall result in immediate reversion of the property to
Seller as set forth in paragraph 9 of the Real Estate Purchase Agreement and further in this
agreement:

                   1.1      The Buyer shall construct a parking lot on the premises, which shall be
                            completed, including paving and striping, pursuant to plans which must be
                            approved by the City (Engineering Department), completion of
                            construction to be accomplished by May 31, 2002. By the said date, the
                            parking area shall be constructed and operated, in addition, according to
                            the provisions following:

                  1.2       The parking lot shall be landscaped in compliance with a landscaping plan
                            to be submitted to and approved by the City (Planning Department).

                  1.3      All zoning ordinance requirements, including variances, if granted, shall
                           be complied with, including without limitation landscaping, setbacks,
                           layout, lighting, and any other site plan requirements.

                  1.4      The entrance(s) and exit(s) for the parking area shall be on the alley.



C:\WINDOWS\TEMP\Lakos.Amendment 3.doc
                   1.5      Maintenance, repairs and cle:ming shall be the responsibility of the Buyer
                            or its successors or assigns.

                   1.6      All improvements of the parking area shall be completed and approved by
                            the City on or before May 31, 2002.

                   1.7      In the event the parking area is not thus completed by May 31, 2002,
                            the property shall revert to the City, unless the Buyer fills the property
                            with three inches of topsoil and seeds the property for ground cover
                            acceptable to the City by June 30, 2002, and files with the City on June 30,
                            2002, its plan and timetable for completion, by January 15, 2003, of all
                            buildings and improvements. (In that event, the existing fence shall be
                            removed from its current location to the rear of the property so that it
                            screens the rear delivery and dumpster areas of the hotel by June 30, 2002.
                            If it continues to be necessary or appropriate to maintain an existing fence
                            on the front of the property, the said existing fence shall be continued in
                            addition to a new rear screening fence. The City shall determine whether
                            the front fence shall be continued in place).

                   1.8      If the parking Jot is completed by May 31, 2002, the Buyer shall deposit
                            with the City a written schedule of the construction activities and
                            completion of buildings and structures appropriate for commercial uses
                            permitted on the property, the said schedule to be filed with the City no
                            later than January 15, 2003. Completion of the said improvements shall be
                            accomplished by January I 5, 2005, and the schedule shall so require.

                   1.9     Reversion. Continuance of mere parking lot usage or the vacant condition
                           after seeding without timely submitting the appropriate plan above, or if
                           submitted, without timely completion, (January 15, 2003 or 2005), shall
                           result in reversion to the City. Reversion to the City shall mean that
                           without any further action by the City, the entire title to the property shall
                           pass to the City without compensation to Buyer for the improvements or
                           partial improvements made, including without limitation all parking,
                           lighting, landscaping, infrastructure, ground cover, seeding, planting,
                           fences or other installations, or for any expense of any kind. This reversion
                           right of the City is supported by consideration, reflected in the original
                           purchase price. This reversion right survives delivery of a deed
                           pursuant to the Land Contract.

        2.      Recording and Enforcement. The provisions of this agreement shall constitute
amendments to the Land Contract at paragraph 19 thereof, and the incorporated Real Estate
Purchase Agreement at paragraph 9 thereof. This agreement may be recorded, and shall
constitute record evidence of the City's right to reversion and enforcement of the agreement. The
legal description of the property is:




C:\WINDOWS\TEMP\Lakos.Amendmenl 3.doc
                                                     2
                    Lot 8, EXCEPT the Easterly four inches thereof, and all of Lots 9,
                    IO and 11; also Lot 12, EXCEPT the Southwesterly 6/1 0ths of a
                    foot, of Block 566 of the Revised Plat of the City of Muskegon.




         3.       In all other respects the agreements between the parties shall remain in full force
 and effect. It is binding on the parties and their successors and assigns.

 WITNESSES:                                              SELLER: CITY OF MUSKEGON




                                                        BUYER: DESIREE ENTERPRISES, INC ..

                                                        By_ _ _ _ _ _ _ _ _ _ _ __

                                                            Its - - - - - -


STATE OF MICHIGAN
COUNTY OF MUSK.EGON

       The foregoing instrument was acknowledged before me this~ day of Jc;nvqr:.v
2002 by Steve Warmington and Gail A. Kundinger, Mayor and Clerk respectively, for and~n
behalf of the City of Muskegon.                         ,
                                                         q;/,;riM ss'.2. £&
                                                                         ,  .¼-
                                                 Z,,c, .S lbrl,,-,,~ , Notary Public
                                                Muskegon County, Michigan
                                                My commission expires: 5'-,,.7.,-::.o.,.;z_




C:\WINDOWS\TEMP\Lak.os.Amendment 3.doc
                                                   3
 STATE OF MICHIGAN
 COUNTY OF MUSKEGON

       The foregoing instrument was acknowledged before me this _ _ day of _ _ _ __
2002 by _ _ _ _ _ _ _ _ _ _ _ _ _ _, for and on behalf of Desiree Enterprises, Inc.,
Inc.


                                                                  , Notary Public
                                              Muskegon County, Michigan
                                              My commission expires: _ _ _ _ _ __

Drafted by and return to:                                  Business Address:
PARMENTER O'TOOLE                             175 W. Apple Avenue, P.O. Box 786
BY: G. Thomas Johnson                         Muskegon, Michigan 49443-0786




C:\WINDOWS\TEMP\Lakos.Amendment 3.doc
                                         4
         Commission Meeting Date:            April 13, 2004


Date:      April6,2004
To:        Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Purchase of 265 Walton


SUMMARY OF REQUEST: To approve the purchase of the property
located at 265 Walton (City of Muskegon revised Plc!t ofJ 903 Lot 6
Block 199 also easterly ½ vacated Rathborne Stree(Th' toJ)rom Mrs.
Roxie Murray 2221 Riverview Inkster, Ml. 48141 ("Seller')·

After approval of the purchase by the Commission the CNS department
will combine this property with property already obtained by the City of
Muskegon through the tax reversion process. In order that the City will
have the required land to complete the proposed future housing
development project south of the Farmers Market area.

FINANCIAL IMPACT: Funding for purchase, will come from the City's
2001 HOME funding.
BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the request and instruct the
Mayor and City Clerk to sign the Purchase agreement

COMMITTEE RECOMMENDATION: None
                          REAL ESTA TE PURCHASE AGREEMENT
                                  2004-39(d)

       THIS AGREEMENT is effective             Apr i 1 13           , 2004, by and between Mrs
Roxie Murray 2221 Riverview Inkster, MI., 48141 ("Seller") and the CITY OF MUSKEGON, a
municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan 49440 ("Buyer"),

        1.     General Agreement and Description of Premises. Seller agrees to sell, and Buyer
agrees to buy, marketable record title ofreal estate, and all improvements thereon, with all beneficial
easements, and with all of Seller's right, title and interest in all adjoining public ways, the real
property located at 265 E. Walton in the City of Muskegon, Muskegon County, Michigan
("Premises"), and specifically described as:

[City of Muskegon Revised Plat 1903 Lot 6 Block 199 also easternly ½ vacated Rathborne Street
Th' To]

Subject to the reservations, restrictions and easements of record, provided said reservations,
restrictions and easements of record are acceptable to Buyer upon disclosure and review of the same,
and subject to any governmental inspections required by law.

        2.     Consideration and Manner of Payment. In exchange for a warranty deed from
Seller to Buyer, Buyer shall pay $5000.00 at closing and shall take the property

        3.     Taxes and Assessments. All taxes and assessments which are due and payable at
the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special assessments
which become due and payable after Closing shall be the responsibility of Buyer.

         4.     Title Insurance. Buyer shall obtain a commitment for title insurance issued by
Transnation Title Insurance Company, for an amount not less than the purchase price stated in this
Agreement, guaranteeing title on the conditions required herein. In the event the reservations,
restrictions or easements of record disclosed by said title commitment are, in the sole discretion of
Buyer, deemed unreasonable, Seller shall have thirty (30) days from the date Seller is notified, in
writing, of such unreasonableness of restriction and such unmarketability of title, to remedy such
objections. If Seller resolves such restrictions and remedies the title (by obtaining satisfactory title
insurance or otherwise) within the time specified, Buyer agrees to complete this sale as herein
provided, within ten ( 10) days of written notification thereof If Seller fails to resolve such
restrictions or remedy the title within the time above specified or fails to obtain satisfactory title
insurance, this Agreement will be terminated at Buyer's option. The premium for the owners title
policy shall be paid by Seller.

         5.     Survey. Buyer, at its own expense, may obtain a survey of the Premises, and Buyer
or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If no survey
is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to the location,
boundaries and area of the Premises and improvements thereon without regard to any representations
that may have been made by Seller or any other person. In the event that a survey by a registered
land surveyor made prior to closing discloses an encroachment or substantial variation from the
presumed land boundaries or area, Seller shall have the option of effecting a remedy within thirty (30)
days after disclosure, or tendering Buyer's deposit in full termination of this agreement, and paying
the cost of such survey. Buyer may elect to purchase the Premises subject to said encroachment or
variation.

        6.     Personal Property Fixtures. All personal property and fixtures, which seller
wishes to remove, shall be removed on or before Closing. Any personal property left on the Premises
has be the property of Buyer, who may dispose of same.

        7.      Environmental Matters. Seller represents and warrants to Buyer that Seller has not
disposed of any hazardous or toxic substances on or in the Premises. Such representation and
warranty shall be deemed to have been made again by Seller as of the Closing. Seller agrees to
indemnify Buyer and hold it harmless from and against any and all claims, demands liabilities, costs,
expenses, penalties, damages, and losses, including, but not limited to, reasonable attorneys' fees,
resulting from any misrepresentation or breach of the warranty set for the in this paragraph, which
representation and warranty shall survive the Closing.

     8.    Condition of Premises and Examination by Buyer.    NO IMPLIED
WARRANTIES OF HABIT ABILITY, QUALITY, CONDITION, FITNESS FOR APARTICULAR
PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERA TE BETWEEN
SELLER AND BUYER, AND BUYER EXPRESSLY WAIVES ANY AND ALL SUCH IMPLIED
WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE PREMISES ARE
TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS, CONDITIONS AND/OR
EXPRESS WARRANTIES CONTAINED IN THIS AGREEMENT, ALSO SUBJECT TO THE
WARRANTY OF SELLER THAT NO HAZARDOUS SUBSTANCES HAVE BEEN PLACED
ON THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE
BUILDINGS AND IMPROVEMENTS THEREON, AND UNDERSTANDS THAT THE
PROPERTY IS BEING PURCHASED AS A RESULT OF SUCH INSPECTION AND
INVESTIGATION AND NOT DUE TO ANY REPRESENTATIONS MADE BY OR ON
BEHALF OF SELLER, EXCEPT FOR EXPRESS WARRANTIES.

        9.      Real Estate Commission. Buyer and Seller both acknowledge and agree that neither
has dealt with any real estate agents, brokers or salespersons regarding this sale, and that no agent,
broker, salesperson or other party is entitled to a real estate commission upon the closing of this sale.
 Buyer and Seller both agree to indemnify and hold the other harmless from any liability, including
reasonable attorney fees, occasioned by reason of any person or entity asserting a claim for a real
estate commission arising from actions taken by the other party.

        10.     Closing. The closing date of this sale shall be on or before 30 days following the
effective date of this Agreement ("Closing"). The Closing shall be conducted at the closing facilities
ofTransnation Title Insurance 570 Seminole Road, Ste. 102, Muskegon, MI 49444 or at such other
place as may be mutually agreed upon between the parties.

       11.     Delivery of Deed. Seller shall execute and deliver a warranty deed to Buyer at
Closing for the Premises.

         12.    Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed Affidavit
of Title.

        13.    Date of Possession. Possession of Premises is to be delivered to Buyer by Seller on
the date of Closing.
The parties have executed this Real Estate Pw·chase Agreement the day and year first above written.




WITNESSES:                                              SELLER:




                                                        BUYER: City of Muskegon




                                                              Gail A. Kundinger, MMC
                                                              City Clerk




Drafted by:                                             Business Address:
City of Muskegon                                        933 Ten-ace St., PO Box 536
Community and Neighborhood Services                     Muskegon, Michigan 49443-0536
                       CIGGZREE'S APPRAISAL SERVICE
                   2528 PECK ST. MUSKEGON HTS., Ml 49444


                                                                       Ffa ~- L1M-265 WAL TON




                              APPRAISAL OF




                              LOCATED AT:
                            265 E. WALTON AVE.
                          MUSKEGON, Ml 49442-3281




                                   FOR:
                             CITY OF MUSKEGON
                            933 TERRACE STREET
                            MUSKEGON, Ml 49441




                              BORROWER:
                                     NIA



                                  ASOF:
                                March 22, 2004




                                    BY:
                          WILLIAM W. BROOKSHIRE
                         STATE LICENSED APPRAISER




TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS [email protected]
                                                                      CJGGZREE'S APPRAISAL SERVICE
                                                                   LAND APPRAISAL REPORT                                                     Filelt> L1M265WALTON
   Prrvu>.rtuAddress 265E. WALTON AVE.                                                   Census Tract 26121-0003.00-4                  LENDER DISCRETIOI-UIRY USE
   t·ni MUSKEGON                           Countv MUSKEGON                     Stale Ml       ZinCOOe 49442-3281                       Sale Price            $
   Leoc! Oescrilllkln See Attached Addendum                                                                                            Date
   OM\er/Occtmant ROXIE MURRAY                                                             Ma Reference                                Mortgage Amounl       $
   Sale Price$ NIA                         Dale ol Sale NIA                                      Properly Rights Appraised Mortgage Twe

                                                                                                       ~
   Loan charaeslconcessions to be oaid IN seller$ NIA                                                   Fee Simple                     Disrount Porl!s and Other Concessions
   R.E. Taxes$ 5.34                           TaxYear 2003            HOA $/Mo. NIA                     Leashold                       Paid by Seller        $
   leodeJ1aien1 COMMUNITY & NEIGHBORHOOD SERVICES
                                                                                                       RCondomklium (HUDNA)
                                                                                                                                       Source
   933 TERRACE STREET MUSKEGON Ml 49441
                                                                                                  I:
                                                                                                        PUD
   LOCATION
   BUILT UP
                                        ~
                                         X   l/rt,~

                                        ~ Over75%
                                                                      --
                                                                       Suburban
                                                                       25,75%
                                                                                                  Rural
                                                                                                  1Jnder2S%
                                                                                                                            NEIGHBORHOOD ANALYSIS
                                                                                                                            Employment Slalii"ty
                                                                                                                                                                 Cmd A,g.    ~'
                                                                                                                                                                                 "'
                                         ,.                                                 Osrow
                                                                                                                                                                     B~B~
                                              "'"                 )( S!ab!e
   GROWTH RATE                                                                                                              ConYMience lo EmplOJ111Cnl
                                         ,.                                                 ~ O&lioiog


                                                                                                                                                                     i~~
   PROPERTY VALUES                          Ina-easing            )( Slable                                                 Convenience lo Shopping
   DEMAND/SUPPLY                         ,. Shortage              /!, In Balance                  Over Supply               Convenfence lo Schools
   MARKETING TIME                           Under 3Mos.           X 3-6Mos.                       Over6Mos.                 Adequacy of Pub'ic Transporta~on
   PRESENT LAND USE%
   Sillge Family
   2-4 Family
·• MJIHarrily
                               ~ ll of p,opel1,e> mo>I >,mi liar and p101ima10 10 su1Jje<1 and has considered 1hese ,n lhe math I analy,i>. The dosc,ipl1on include, a dollar
  adjus1mea1. ,ell,cHng mark•I rea• ilem, o! »gnihcanl ,a,,alion bel,.een n,e subject and comparable properties. U • >1men1" made. Hais tedulmen! "made, thus oncru,;ng the rndicaled value o! lhe sul>jacl.


            ITEM                  SUBJECT               COMPARABLE NO. 1                                  COMPARABLE NO. 2                              COMPARABLE NO. J
                             265 E. WALTON 1871 SANFORD AVE.                                       1840 NEVADA ST.                              159 W. SOUTHERN AVE.
  Address                    MUSKEGON           MUSKEGON                                           MUSKEGON                                     MUSKEGON
            to Sub"'ct                          1.4 MILES.W.                                       2.3 MILES.E.                                 1 .0 MILE S.W.
   ""''
  Safes Price
  Pnce/ NIA
                             $
                             $
                                          NIA
                                             1Zl$
                                                                $
                                                          5000!2l
                                                                           5000
                                                                                                   $
                                                                                                                   $
                                                                                                              5500tll
                                                                                                                            5 500
                                                                                                                                    $
                                                                                                                                                    $
                                                                                                                                             5000!2'.I
                                                                                                                                                                                    5000

  Oa!a Soo1ce                INSPECT!ON         MLS# 2105991          DOM 826                      MLS#2318607          DOM 087 MLS# 2256939                                  DOM 032
  VALUE ADJUSTMENTS             OESCRiPT!ON         DESCRIPTION   I ,()IA~·· """1C                     DESCRIPTION    I •mA ·•""'ll    DESCRIPTION     I                     +(-JIA~ mm:t

  Safes or Finaocirlg                           CASH                                               CASH                             CASH
  Concessions                                   NONE                                               NONE                             NONE
  Date of Sale/Time          NIA                06/27/03          :                                08/22/03           :             12110/02           :
  location                   URBAN       AVG URBAN             GD'       -1 500                    URBAN          GD•      -1 500 URBAN            GD'                            -1 500
  Si!eMew                    RESIDENTIAL        RESIDENTIAL       :                                RESIDENTIAL        :             RESIDENTIAL        :
  LOT S!ZE                   99'X132'           50'X 125'         :        1 200                   60' X 125'         :     1.000 50' X 125'                             :          1 200
  IMPROVEMENTS               NOMINAL            NOMINAL                                            NOMINAL            :             NOMINAL
                                                                               :                                            :                                            :
  ~Adi. ~otan                                    I,   IXI- is        300 I I,
                                                                               :
                                                                                 IXI.             500        IXL !$     ,, :   300                 ,.                    :
  Indicated Value                             Gmss:                      Gross;   45.51               Gross:
                                                       54.~I                                                  54.~I
  of Sobiact                                  Nel:     -6.0 $      4 700 Nel:     -9.1 $        5,000 Net:    -6.0 $         4,700
  Comments of Sales CllTipilliSO!l: THE SELECTED COMPARABLES ARE THE MOST REPRESENTATIVE UNITS THAT ARE CURRENTLY AVAILABLE. THE
  LOTS WERE EXPOSED FOR SALE ON THE OPEN MARKET. THE COMPS ARE IN SUPERIOR LOCATIONS, THUS LOCATION ADJUSTMENTS. THE
  COMPARABLE$ WERE All GIVEN DUE CONSIDERATION IN ESTABLISHING THE COMPARATIVE MARKET VALUE OF THE SUBJECT PROPERTY.
  Comments and Conditioos of Appraisal: NONE NOTED

  Final Reconcilialioo: THE SALES COMPARISON APPROACH IS CONSIDERED AS THE MOST RELIABLE METHOD IN APPRAISING
  VACANT LAND. THE VACANT LOT AS SUCH HAS NO IMPROVEMENT COSTS NOR DOES IT GENERATE REVENUE OR INCOME
  THEREFORE THE INCOME APPROACH WOULD NOT BE FEASIBLE.
  l{WE) ESTIMATETHEMARKETVALUE.ASDEFINED,OFTHESUBJECT PROPERTY ASOF March 22 2004                                                                   to be$                 5000
  I (We) certify: that lo the best of my (our) knowlP.dge and belief, the fact'> and dala used herein are Irue and correct; that I (we) peisooally inspected the subject property
  and inspected all comparable sales cited in this report; and Iha! I (we) have no on discloser! inte1est, present or prospective therein.

  Appraiser(s)~
               ~
                                                        .J                    Review Appraiser
                                                                                (~ appficable)
                                                                                                                                                             •,, •,,,.,,
                                                                                                                                                                    Inspect Property

                                                                                    Appraisal Report
                                                ADDENDUM
Borrower. NIA                                                                    File No.: L 1 M-265 WAL TON
Property Address: 265 E. WALTON AVE.                                             Case No.:
City: MUSKEGON                                                       S1ale: Ml                   Zip: 49442-3281
Lender: COMMUNITY & NEIGHBORHOOD SERVICES




      Legal Description
      CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 BLK 199 ALSO ELY 1/2 VAC ST RATHBORNE ST ADJ THERETO

     Site Comments
     THE SUBJECT PROPERTY IS SITUATED ON A HILL TOP WITH AN OVER VIEW OF REYERSON CREEK VALLEY.
     DIRECTLY BELOW THE S.P. IS THE FARMERS MARKET, A SEASONAL MARKET FOR FRESH PRODUCE AND
     WEEKLY FLEA MARKETS. THE LOT IS PRESENTLY ACCESSIBLE BYWAY OF RATHBORNE ST. VIA MYRTLE AVE.




                                              Add0ndlm Page 1 of 1
                                SUBJECT PROPERTY PHOTO ADDENDUM
Borrower: NIA                                                     File No.: L1M~265 WAL TON
Property Address:265 E. WALTON AVE.                               Case No.:
City: MUSKEGON                                        State: Ml                 Zip: 49442-3281
lender: COMMUNITY & NEIGHBORHOOD SERVICES




                                                                   FRONT VIEW OF
                                                                   SUBJECT PROPERTY

                                                                   Appraised Date: March 22, 2004
                                                                   Appraised Value:$ $5,000




                                                                  REAR VIEW OF
                                                                  SUBJECT PROPERTY




                                                                  STREET SCENE
                             COMPARABLE PROPERTY PHOTO ADDENDUM
Borrower: NIA                                                    File No.:   L 1M-265 WAL TON
PropertyAddress:265 E. WALTON AVE.                               Case No.:
City: MUSKEGON                                       State: Ml                   Zip: 49442-3281
Lender: COMMUNITY & NEIGHBORHOOD SERVICES




                                                                  COMPARABLE SALE #1


                                                                  1871 SANFORD AVE.
                                                                  MUSKEGON
                                                                  Sale Date: 06/27 /03
                                                                  Sale Price: $ 5,000




                                            I.
                                            '



                                                                  COMPARABLE SALE #2


                                                                  1840 NEVADA ST.
                                                                  MUSKEGON
                                                                  Safe Date: 08/22/03
                                                                  Sale Price:$ 5,500




                                                                  COMPARABLE SALE #3


                                                                  159W. SOUTHERN AVE.
                                                                  MUSKEGON
                                                                  Sale Date: 12/10/02
                                                                  Sale Price:$ 5,000
                                                              FLOORPLAN
Booower: NIA                                                                                Fife No.: L1M-265 WALTON
Pro!?!!!i Address:265 E. WALTON AVE.                                                        Case No.:
City:: MUSKEGON                                                               State: Ml                   Zi!;!:: 49442-3281
Lender: COMMUNITY & NEIGHBORHOOD SERVICES




                                                        WALTON AVENUE
                   ~                                            99.0



                       \

                                             ~           13.860 SQUARE FEET
                                                                                   q




                                                                99.0'

                                            Ii;           PUBLIC ALLEY
                                            w
                                            z
                                            "'0
                                            ID


  Sketch by Apex IV Windows'"               ~
                              AREA CALCULATIONS SUMMARY                                   AREA BREAKDOWN
           C:000           DescripUoo                  Size     Total&                    8reakdo111111           Subtotal•
           -,              J.And                  13860. 00    13860.00




                       TOTAL SITE AREA                         13860.00




                           TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS [email protected]
                                               LOCATION MAP
Borrower: NIA                                                               File No.: L 1M-265 WALTON
Property Address:265 E. WALTON AVE                                          Case No.;
City: MUSKEGON                                                  State: Ml                Zip: 49442-3281
Lendi,: COMMUNITY & NEIGHBORHOOD SERVICES




                 TELEPHONE (231) 737-8033 FAX {231) 737-9039 E-MAIL ADDRESS [email protected]
                                                             FLOOD MAP
Borrower: NIA                                                                                Fi!e No.: L 1M-265 WAL TON
Property Address: 265 E. WALTON AVE.                                                         Case No.:
City: MUSKEGON                                                                 State: Ml                     Zip: 49442-3281
Lendff: COMMUNITY & NEIGHBORHOOD SERVICES




                                            ~-::,            Prepared for:
                                                             Appraisal SeNice MKG
          InterFlood~
                                                             265 E Walton Ave
           www.interflood.c.om • 1-8D0-252-6633              Muskegon, Ml 49-442-3281
                                                                                                                    -,•.n




                                                                                                                       ·,




                                                                                                     ~11       FLOODSCAPE

                                                                                                      Ii~ Flood Hazards Map
                                                                                                      :) i     Map Number
                                                                                                      ii I     2001s1ooorn
                                                                                                      ii :
                                                                                                      ( ,I     Effective Dote
                                                                                                      :I ,Ji   June 1, 1977
     EB                                                                                                '![




                                                                                                               For more int,ormati<>dsowct.<::om



 @   1999-2002 FloodSource Corp. U.S Patents Pending_ All rights reserved. For more information. please e-ma!l lnfo@?tloodsource.com.




                     TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS [email protected]
                                            APPRAISER'S LICENSE
Borrower: NIA                                                              File No.: l 1M-265 WALTON
Property Address:265 E. WALTON AVE.                                        Case No.:
City: MUSKEGON                                                 State: Ml                   Zip: 49442-3281
Lender: COMMUNITY & NEIGHBORHOOD SERVICES




                                            STATE OF MICHIGAN                                K975537
                      DEPARTMENT OF CONSUMER & INDUSTRY SERVICES

                                   BOARD OF REAL ESTATE APPRAISERS
                                      STATE LICENSED APPR~ISER
                                                LICENSE




           William Brookshire
           1b9 Iona Ave
           Muskegon MI 4~442


                                                                                   l>l!S ~O<;~l!Efll   rn   !>Ill,
                                                                                   1S\'"lV UH~<   .,,c,.,c,0>1




               TELEPHONE (231) 737-8033 FAX (231) 737-9039 E-MAIL ADDRESS [email protected]
                                                         ClGGZREE'S APPRAISAL SERVICE
                                           USP AP COMPLIANCE ADDENDUM
                                                                                                                                   File No. L 1M-265 WAL TON
Bonowcr 0N0/ A ~ ~ = ~ = ~ = ~ ~ ~ - - - - - - - - - - - - - - Order/I                                    --------------------I
Property Addre.., 265 E. WALTON AVE.
City MUSKEGON                                   County MUSKEGON                                  St1te    _M_I__   ZipCode    4~94~4~2~-~3~28~1~-------I
                                                                                                                              0
Lmdcr/Client COMMUNITY & NEIGHBORHOO~D=s=E"R~V~IC~E"s~-----cClicnt Rcfercnce #

                                              On/\' those ilem.< checked@hdnw annlr to tl,i< ri>non.

PURPOSE., FUNCTION AND INTENDED USE OF THE APPRAISAL
     The purpose oft he appraisal is to provide an opinion of market value of the suhjec1 property as defined in this report, on behalf oflhe appraisal
     company facilitating the assignment for the referenced client as the intended user of the report. The 011/y fonc1ion of tbe appraisal is lo asslst the
     client mentioned in this report in evaluating the subject property for lending purpo.ses. The ui;e of this arrraL~al by anyone other than the stated
     intended user, or for any other use than the stated intended use, is prohibited.

D    The purpo.se oft he apprais,t! is to provide an opinion of market value of the sobje~1 property, ;is defined in this report, on behalf ofthc appraisal
     company facilitating the as.<.ignment for the referenced client as the intended user ufthis report. The ,rnlJ· function of the appraisal is to assist the
     dicnt mentioned in this report in evaluating the h'Ubject prop,erty Real Estate Owned (REO) purpo,;es. The m.e of this appraisal by anyone
     other than the state,J intemlerli/l<'atirm (i.e., Fannie Mae or Freddie Mac), thi.• revlrt w:i., Sigocd: _ _ _ _ _ _ _ _ _ _ _ _ _ __
                                         0 6=2
                                             0000
                                                04 ~ - - - - - - - -
                                                                                     StiteCertific.ition#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
                    ====~-------------
Sl:lte Certific:ition#:
                                                                                     or St1teLkense#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
or State lkm,.e #: 01e2e0,100 00 2e10 70 9 ~ - - - - - - - - - - - - -
State: 0M0 1_____________________                                                    St1te: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Expiration Date ofCertHiaition or Liccn.<.e: JULY 31, 2005                           Expiration Date ofCertifkatitm or Lice~: _ _ _ _ _ _ _ _ _ __

                                                                                     Bo ~::::::~:::: pro~rty Bo               ::::re:~::;;ble.,



                                                                             I of!
                                                                                          fatcrior only                       Exterior only
                                                                                                                                                                ....,
                                                                                                                F~etti. L1M-265WALTON
DEFINITION OF MARKET VALUE:                     The most probable price which a property should bring ln a compe!itive and open market
under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not
affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer undnr conditions whereby: (1) buyr.r and seller are typically motivated: (2) both parties are well informed or well advised,
and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment
is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (El) the price represents the normal
consideration for the property sold unaffected by special or croative financing or sales concessions* granted by anyone associated with the
sale.

•Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for
those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the
seller pays these costs in virtually all sales transactions, Special or creative financing adjustments can be made to Lhe comparablo property
by comparisons to financing terms offered by a third party inslitutional lender that is not already involved in the property or transaction. Any
adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any
adjustment should approKimate the market's reaclion to the financing or concessions based on the Appraiser's judgment.



                        ST A TEMENT OF LIMITING CONDITIONS AND APPRAISER'S C ERTi FiCATION


CONTINGENT AND LIMITING CONDITIONS:                         The appraiser's certification that appears in the appraisal report is subject to the
following conditions:

1. The appraiser wm not be responsible for matters or a legal nature that affect either the property being appraised or the title to it. Tho
appraiser assumes that the title is good and marketable and, thereforn, will not render any opinions aboul the title. The property is appraised
on the basis of it being ooder responsible ownership.

2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is
included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of iL-; size.

3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data
sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the
appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.

4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific
arrangements to do so have been made beforehand.

5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and !he improvements at their
contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and
are invalid if \hey are so used.

6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous
wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal
rnsearch involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden
or unapparent conditions of !he property or adverse environmental conditions (including the presrmce of hazardous wastes, toxic
substances, elc. ) thal would make the property more or less valuable, and has assumed that there are no such conditions and makes no
guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will nol be respons!ble for any such
conditions that do exist or for any engineering or testing that might be requirnd to discover whether such conditions exist. Because the
appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment
of the p1operty.

7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she
considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such
items that were furnished by othe1 parties.

8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional
Appraisal Practice,

9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal thal is subject to satisfactory completion,
repairs, or alterations on the assumplion that completion of !he improvements will be performed in a workmanlike manne,.

10. The appraiser mus! provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the
appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to
any professional appraisal organizations or the firm with which tho appraiser is associated) to anyone other than the borrower; the
mortgagee or its successors and assigns; the mortgage insurer; consultants; professional 11pprai!ial organizations; any state or federally
approved financial institution: or any department, agency, or instrumentalily or the United States or any state or the District of Columbia;
except that the lender/client may distribute the property description section of Lhe report only Lo data collection or reporting servicr.(s)
without having Lo obtain the appraiser's prior written consent. The appraiser's w1itten consent and approval must also be obtained before
the appraisal can be conveyed by anyone lo the public through advertising, public relations, news, sales. or other media.




Vacant Land                                                       Page 1 of 2
                                                                                                                          File llkl. L 1M-265 WAL TON
APPRAISERS CERTIFICATION:                       The Appraiser certifies and agrees that:

1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate
to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to rennet the
markf!t reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than,
the subject property, r have made a negative adjustment to reduce the adjusted sales price of lhf! comparable and, if a significant item in a
comparable properly is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted
sales price of the comparabln.

2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the
appraisal reporl. 1have not knowingly withhold any significant information from the appraisal report and I believe, to the best of my
knowledge, that all statements and information in the appraisal report are true and correct.

3. I staled in the appraisal repoft only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject
only to the contingent and Limiting Conditions specified in this form.

4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal
interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the
estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the
prospective owners or occupants of the subject properly or or the present owners or occupants of the properties in the vicinity of the
subject property.

5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my
compensation for perlrnming this appraisal is contingent on the appraised value of the property.

6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party,
the amount of the value estimate, the attainment or a specific result, or the occurrence of a subsequent event in order to receive my
compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a
specific valuation, or the need to apprnve a specific mortgage loan.

7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and
promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date or this appraisal,
with !he exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a masonah!e
lime for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the
malketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconcrnation section.

8. I have personally inspected the subject property and the exterior of all properties listed as comparables
in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the
subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these
adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented
 ;ibout the effect of the adverse condiLions on the marketability of the subject property.

9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on
signilicanl professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal
report, l have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation snction of this appraisal
report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in
the report; therefOfe, if an unauthorized change is made to the appraisal report, I will take no respoosibility for ii.


SUPERVISORY APPRAISER'S CERTIFICATION:                          If a supervisory appraiser signed the appraisal report, he or she certifies
and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appralsal report, agree with lhe
statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking
luff responsibility for the appraisal and the appraisal report.


ADDRESS OF PROPERTY APPRAISED: 265 E. WALTON AVE., MUSKEGON, Ml, 49442-3281




APPRAISER:                                                                    SUPERVISORY APPRAISER (only ir required)


 Si!,Jature: ~            ___/~./.,~::;           .J                          Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
 Name: W I ~ ~                                                                Name:
 Date Signed: MARCH 26, 2004                                                  Date Signed: ~ - - - - - - - - - - - - - - - - -
 State Certilkation II:                                                       State Certification#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
 OJ State License II: 12°0=1~00=2~1=79~-----------                            or State License#: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

 State: M
        0    cl~-=~~-~--~=~~=--- State:-~--~---------------
 Expiration Dale of Ce,tification or License: JULY 31, 2005 Expiration Dale of Certifteation or License: _ _ _ _ _ _ _ __

                                                                             0    Did      O   Did Not Inspect Property

 STATE LICENSED APPRAISER


 Vacant land                                                             Page2of2
                                                                 CIGGZREE'S APPRAISAL SERVICE
                                               ENVIRONMENTAL COMPLIANCE RECORD
                                               SINGLE FAMILY PROPERTY DISPOSITION                                                           •
                                                                                                                                         FIi No. L 1M 265 WALTON
FHA CASE NUMBER:
PROPERTY ADDRESS:
265 E. WALTON AVE.
MUSKEGON Ml 49442-3281

                              COMPLIANCE FINDINGS                                                                SOURCE/DOCUMENTATION

1.        HISTORIC PRESERVATION
          Property   O    is {fil is not r1Sted on the National Register of                                      Checked National Register of
          Historic Places,                                                                                       Historical Places.

          Property   O   is   IBJ       is not localed in an Historical District.                                Checked National Register of
                                                                                                                 Historical Places.
          Note:      An appropriate deed restriction will be required 17
                     property meets either of the forgoing conditions.

2.        FLOODPLAIN
          Property   O   is {fil is not located within the 100-year                                               Panel#:
          floodplain (Zones A & V).                                                                              Map#: 2601610001B

          Note: Flood insurance may be required.                                                                  Date of Map: 06/01/1977

3.        AIRPORT RUNWAY CLEAR ZONES (24 CER 51D)
          Property   O is IB] is not localed withifl boundary of
          runway zone.
                                                                                                                  Property not within 3,000 !eel of
          ..
          ll"yes•,
               has the airport operator declined to acquire the                                                   the runway clear zone.
               properly?      0 yes       noO
          ..   a signed disclaimer is required (24 CFR Part 51 D).

4.        SUMMARY
                                 are (g] are not required on the basis of the findings above. If additional actions are required, describe
          Additional actions      D
          them in an attachment.

                                                Instructions for Completion of Environmental Clearance Record

Environmental Compliance. Single Fam~y Property Disposition is subject to the environmental policy and procedures shown at 24 CFR Part 50,
where applicable. An Environmental Compliance Record must be completed for each acquired property prior to listing for sale and !Im results
considered in the development of the terms and condition of the sale. The Contractor shall use the format contained in Exhibit 4, Attachment 8-1,
for documentation of the review. The compriance record is to be maintained in the individual property rile.
Preparing the Compfiance Record. To document !he results or compliance findings, use copies or !Im appropriate floodplain and airport runway maps,
and the National Register of His Lorie Places, in order to identify those properties that are subject to these three requiremen!S. Instructions
!or completing the compliance findings on the Environmental Compliance Record are:

          1.         Historic Preservation. The Naliooal Register of Historic Places idP.nlifies specific properties and historic districts which are subject to
                     historic preservation requiremen!S. II a HUD-Owned Property is listed on the register, or the district i1 which it is located is listed, a
                     deed restriction must be prepared. Consult with counsel for appropriate language to be included in the deed.

          2.         Floodplain. Based on the Boodplain map, properties located in Special Flood Hazard lveas (SFHA) which are being sold with
                     HUD-insured mortgages or with buydowns or cash rebates, are required to have flood insurance. At the lime of assignment of a
                     case to the closing agen~ the dosing agent must be alerted to this requirement and must ensure that Um purchaser obtains 11ood
                     insurance. Such insurance may be purchased from any state licensed agent. If a property is localed in a SFHA in a community which
                     is suspended from or is nol participating in the National Flood Insurance Program, the property must be offered on an uninsured basis
                     and without a buydown or cash rebate. Listing advertisements must disclose such properties.

          3.         Airport Runway Clear Zones. Based on airport clear zone maps, properties located within the rWNay dear zone must be offered to the
                     airport operator before the public &slilg. Property will be sold to the airport in accordance \Wh !he policy on safes to local governments
                     described in Exhibit 2. A decfsion by the airport operator not to purchase must be documented in the rne, preferably in the form of a
                     leller from the airport operator. lo the absence of such a letter, a note to tho file documenting the verbal response by the airport
                     operator is sufficient.
                     Bidders on properties located in runway dear zones must provide a signed Notice to Prospective Buyers of Properties Located in
                     Runway Clear Zones and Clear Zones (see Exhibit 4, Attachment B-2). In those few jurisclictions which have properties in runway clear
                     zones, Selling Brokers must be provided with copies of this notice and be advised that it must he included when submitting a bid on a
                     property which is located in a runway clear zone.
Listing for Salo. Any property .vhich is subject to these historic, Ooodplain,
                                    1                                                   Of   airport clear zone requiremen!S must be so identified when listing the
property for sale.
NOTE: OTHER ENVIRONMENTAL STATUTES, EXECUTIVE ORDERS AND AUTHORITIES
The remaining statutes and authorities cited at 24 CFR 50.4 do not require compliance because they are not relevant to property disposition actions
which do not involve new conslruction,


Preparer:                                                                                     Supervisor:
WILLIAM W. BROOKSHIRE
 Title:STATE LICENSED APPRAISER                         Date: MARCH 26, 2004                  Title:                                        Date:


     ""                                                                             Appraisal Report
                                                         1111111111111111111111111111111111111111111111111111111. ~!~l~;
                                                         Mark Fairehlld, Muskegon Co ROD 002             Page: 1 of 2
                                                                                                                        :A

                                     QUIT CLAIM DEED
LIBERTY TITLE AGENCY                                                                         File No.    76498
The Grantors: Roxie Murray., ct                >Inf) le wo...,..,a""

whose address is:      2211 Riverview Drive, Inkster MI                  48141


Quit Claims to:      CITY OF MUSKEGON, A MICHIGAN MUNICIPAL CORPORATION



whose address is:      933 Terrace Street, Muskegon MI                 49443

the following described premises situated in the               City                of      Muskegon
Muskegon      County, State of Michigan, to-wit:
(Continued)



                       SEE ATTACHED EXHIBIT NLEGAL DESCRIPTION RIDER



for the full consideration of:       Five Thmlsand DoJ.lars and 00/100 ($5,000.00)




Dated this    13          day of _x~=-~/____ , 2004




STATE OF MICHIGAN                                 )         MICHIGAN                          REAL ESTATE ; ~
                                                  ) ss                                       TRANSFER TAX*
                                                              Muskegon MI                           $5.50-C*

                                                                                                               **
COUNTY OF           Washtenaw                     )           07/07/2004                           $37 .50-S
                                                              58438                                   ff8866



The foregoing instrument was acknowledged before me this                n_ day of _ _..Mlaj,.=ql"-/_ _ , 2004
by Roxie Murray> a s/,,,.,3/1? won-i4h                                                        0
My commission expires:
               TRACY M. ROBERTSON
         Notary Public, Washtenaw County, Ml                                                            County, Michigan
         My Commission Expires July 19, 2007
  .        . Ac-f1,,,., /,., vc.,l. ltr>a,._;
Drnfted by.      Thomas D. Richardson                             When recorded return to: Grantee
                  111 N. Main St.                                 933 Terrace Street            ✓
                  Ann Arbor, MI 48104                             Muskegon, MI 49443


                                                                                                                     tmr
File No.     76498                                                                          Parcel ID No.

                                          EXHIBIT A/LEGAL DESCRIPTION RIDER



Land is located in the City                                 of Muskegon             , County of Muskegon    , State of Michigan,
and described as follows:


 Lot(s) 6, Block 199, Revised Plat (of 1903) of the City of Muskegon, as recorded in
 Liber 3 of Plats, Page(s) 71, Muskegon County Records and the Easterly 1/2 of vacated
 Rathborne Street, adjacent thereto.




                                                                     5110517
                                                                     L-3610 P-209
    IIIIIII IIIII IIIIIII II llllllll lllll lllll 1111111111111111   07/07/2004 11:35A
                                                                     Page: 2 of 2
    Mark Fairchild, Muskegon Co ROD D02
         Commission Meeting Date:            April 13, 2004

Date:       April7,2004
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Community Development Block Grant/HOME Final
            allocation decision


SUMMARY OF REQUEST: For the City commission to make their final
allocation decision concerning the 2004-2005 CDBG/HOME fiscal year.

The Commission has received the recommendation from the Citizen's
District Council and the City administration. The commission made their
preliminary recommendations during the March 23, 2004 City
Commission meeting.

After receiving the Commissions final allocation decision, the CNS office
will amend the City's 2004-2005 Action plan if needed and continue the
comment period until April 15, 2004. At that time, the City will request
the U. S. Housing and Urban Development department for the release of
the funds for the 2004-2005 fiscal year to begin June 1, 2004.

FINANCIAL IMPACT: The decision will determine the CDBG/HOME
budget for 2004-2005.

BUDGET ACTION REQUIRED: The decision will establish the budget.

STAFF RECOMMENDATION: The Commission has already received
the staff recommendation.

COMMITTEE RECOMMENDATION: The Commission has already
received the Citizen's District Council recommendations.
                                                2004 - 2005 CDBG / HOME ACTIVITY
      Community Development Block Grant                                                                                  City Commission
                                                                        Administration     Citizen District Council         Preliminary  City Commission
~            Organization Name/Program Title   Amount Requested       Recommendation          Recommendation             Recommendation   Final Decision
 (ifa,uskegon Community Health Project         $        8,000.00 *    $        7,000.00    $                7,000.00                                        "':"'s51:4~a=
                                                                                                                                                                     --i,,-;_ •
                                                                                                                         $             ·~                 .),; '-'!,~?:::----    --'I'""" -      ·-·-·

      "Miles for Smile Dental SetVices"
   2 West Michigan Veterans                             5,000.00 *             5,000.00                    5,000.00                    5,000.00
      Veterans Assistance
   3 Pioneer Resources                                  4,800.00 *             2,500.00                    2,500.00                    2,500.00
      Rec for People wldisabilities
   4 HealthCare                                         7,225.00 *             6,000.00                    5,000.00                    6,000.00
      Health screening to low-income                                                                                                                                         -., ..,
   5 American Red Cross                                 5,000.00 *             5,000.00                    5,000.00                    5,000.00                   ,...-;,.
                                                                                                                                                        -;,:l',
      Senior Transportation                                                                                                                                                                              -,,s;:s,_s--
                                                         5,000.00 *            2,500.00                                                250000
                                                                                                                                                   ~--;.,•~•r~ -
                                                                                                                                                               ..;''~
                                                                                                                                                                                           r:_
                                                                                                                                                                                                  '•--._   __   ,   '   ;




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  :6)Volunteer Muskegon
      Youth SutVey/Mapping
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                                                                                                                                                                                                         ~ .. ~
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/?)Volunteer Muskegon                                    5,000.00 *            2,500.00                    5,000.00                    2,500.00                        3:                  '
   -- Keep Kids in School Truancy




                                                                                                                                                                       -
    8 Legal Aid of Western Michigan                     43,302.00 *            9,000.00                    9,000.00                    9,000.00
      Counseling/Legal Education
   (§)Family Services Center, Inc                       10,000.00 *            5,000.00                    6,000._QO•.                 5,000.00
    ~ DAD'S
                                                                                                         ·----·                                                               o_,:'o-.,-,,
                                                                                                                                                                                   0 J..,,
                                                                                                                                                                                                 n
  10 Lakeshore Fair Housing Alliance                    10,000.00 *            7,000.00                     6,000.00                   7,000.00
       Fair Housing
  11 Muskegon Public Schools                            15,000.00 *             7,500.00                    8,500.00         ~-S: 06    'i',§QQ BO                           5::,:::::~
       Software
  12 Neighborhood Invest Corp                            6,500.00 *             2,500.00                    2,500.00                    2,500.00
       Mainstreet
  13 Muskegon Retirement Apartment Inc                  10,200.00 *            5,000.00                      5,000.00                   5,000.00
       Fire Code Compliance
                                                                                                                                                      ;),,'.)
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  Community Development Block Grant
                                                                                                                  City Commission
                                                                     Administration    Citizen District Council      Preliminary    City Commission
          Organization Name/Program Title   Amount Reguested       Recommendation         Recommendation          Recommendation     Final Deci1i!:m
14 Community and Neighborhood Services      $      210,000.00      $     170,000.00    $             170,000.00   $      170,000.00
   Siding Program
15 Fire/Inspection                                 155,000.00             60,000.00                  60,000.00            60,000.00
   Dangerous Building/Demolition
16 Community and Neighborhood Services             215,000.00            180,000.00                 180,000.00          180,000.00
   Emergency Rehabilitation
17 Community and Economic Development               20,000.00
   Fa9ade Improvement
18 Community and Neighborhood Services             187,000.00 **         175,000.00                 175,000.00          175,000.00
   CDBG Administration
19 Community and Neighborhood Services             125,000.00            118,000.00                 118,000.00          118,000.00
   Rehab Service Delivery
20 Engineering / CNS                                 50,000.00            35,000.00                   35,000.00           35,000.00
   Sidewalk Assessment Relief
21 Engineering/ CNS                                  80,000.00            45,000.00                  45,000.00            45,000.00
   Street Assessment Relief
22 Leisure Services                                  80,000.00 *          70,000.00                   70,000.00           70,000.00
   Youth recreation
23 Finance Dept                                     245,000.00           245,000.00                 245,000.00           245,000.00
   Repayment of Shoreline Dr. Bond
24 City Planning                                     40,000.00             35,000.00                  35,000.00           35,000.00
   Lot Clean-up
25 City Planning                                     45,000.00            40,000.00                   40,000.00           40,000.00
   Code Enforcement
26 DPW                                               56,784.00 *           46,500.00                  46,500.00 $         46,500.00
   Senior Transit
Community Development Block Grant
                                                                                                                City Commission
                                                                   Administration    Citizen District Council      Preliminary  City Commission
      Organization Name/Program Title        Amount Reguested     Recommendation        Recommendation          Recommendation   Final Decision
Total CDBG Request                                1,643,811.00
Total CDBG Allocated+ Pl $75,000                  1,287,000.00        1,287,000.00              1,287,000.00        1,287,000.00 $     1,287,000.00
Recommendations                                   1,287,000.00        1,286,000.00              1,286,000.00        1,286,000.00 $
Allocated/Request Difference                 $     (356,811.00)            1000.00 $                 1,000.00   $       1,000.00 $     1,287,000.00

Total Amt of Public Service*                        215,027.00          136,500.00                136,500.00          136,500.00
Public Service mandated Amt < or = to 15%           193,050.00          193,050.00                193,050.00          193,050.00   $    193,050.00
Difference                                   $      (21,977.00)   $      56,550.00   $             56,550.00    $      56,550.00   $    193,050.00

Total Amt of City Administration Request**          187,000.00          175,000.00                175,000.00          175,000.00   $
Administrative mandated Amt < 20%                   257,400.00          257,400.00                257,400.00          257,400.00   $    257,400.00
Difference                                   $       70,400.00    $      82,400.00   $             82,400.00    $      82,400.00   $    257,400.00
 HOME                                                                                                                    City Commission
                                                                            Administration    Citizen District Council      Preliminary    City Commission
         Organization Name/Program Title        Amount Reguested           Recommendation        Recommendation          Recommendation     final Decision
1 Community and Neighborhood Services                   75,000.00                 75,000.00   $              75,000.00   $       75,000.00
  Tax-Reverted Rehabilitation
2 Community and Neighborhood Services                     85,000.00               80,000.00   $             80,000.00    $      80,000.00
  HOME Infill Program
3 Community and Neighborhood Services                     33,700.00 ***           33,700.00   $             33,700.00    $      33,700.00
  HOME Administration
4 Neighborhood Investment Corp                  $        100,000.00 **** $        80,000.00   $             80,000.00    $      80,000.00
  Housing Rehab, Neighborhood Imp.
5 Habitat For Humanity                                    50,000.00 ****          47,000.00   $             47,000.00    $      47,000.00
  Acquisition/Rehab
6 Trinity Village Non-Profit Housing Corp                 25,000.00 ****          22,000.00   $             22,000.00    $      22,000.00
  Single-Family Acquisition

  Total Amt of HOME Request                     $        368,700.00        $     337,700.00 $              337,700.00 $        337,700.00
  HOME Allocation                                        337,937.00        $     337,937.00 $              337,937.00 $        337,937.00    $   337,937.00
  Reprogram Funds
  Total Amt Home Available                               337,937.00              337,937.00 $              337,937.00 $        337,937.00
  Total Amt Difference                           $        (30,763.00)      $         237.00                    237.00              237.00    $

  Total Amt of HOME Administration***            $        33,700.00        $       33,700.00 $               33,700.00 $        33,700.00
  Total Amt mandated= 10%                        $        33,700.00        $       33,700.00 $               33,700.00 $        33,700.00
  Difference                                     $               -         $             - $                       - $                 -     $

  Total amt of HOME CHOO request****             $       175,000.00        $      149,000.00 $              149,000.00 $        149,000.00
  Total Amt mandated 15%                                  50,690.00                50,690.00                 50,690.00           50,690.00        50,690.00
  Difference                                     $       (124,310.00)      $      (98,310.00) $             (98,310.00) $       (98,310.00) $     50,690.00




  NOTE
  *Public Service, **City CDBG Administration, ***HOME Administration, ****CHOO Request
  Q:CNS\Common\Excel\04.05_Act
         Commission Meeting Date:             April 13, 2004




Date:       April 7, 2004
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Approval of the 2004-2005 Action Plan


SUMMARY OF REQUEST: To approve the 2004-2005 Action Plan for
the City of Muskegon Community Development Block Grant/HOME
activity. If the Action Plan is approved, the CNS will continue the
comment period of the Action Plan as amended if needed until April 15,
2004.
On April 16, 2004, the CNS office will deliver the Action Plan to the U. S.
Housing and Urban Development as required in order to request the
Release of Funds for the 2004-2005 fiscal year.
FINANCIAL IMPACT: Action Plan establishes the 2004-2005 budget.



BUDGET ACTION REQUIRED: None at this time budget established by
Action Plan.


STAFF RECOMMENDATION: To approve the Action Plan. ,.w



COMMITTEE RECOMMENDATION: None.
                                   Action Plan
                       COMMUNITY DEVELOPMENT BLOCK GRANT


                      June 1, 2004 thru May 31, 2005

                   MISSION STATEMENT & NARRATIVE SUMMARIES

To provide its residents with the ability to live in safe, decent, sanitary and attractive housing and
to assure the preservation and enhancement of the City's neighborhoods, public facilities and
infrastructure as well as to assist local nonprofits and social agencies in delivering their services to
low/moderate income residents are examples of annual activities undertaken by the City of
Muskegon to promote the overall well-being of this community. This section of the Consolidated
Housing & Community Development Plan will describe eligible programs, projects and activities
to be undertaken with funds expected to be made available during the above program year and their
relationship to housing and non-housing community development needs outlined in previous
sections.

                                      PURPOSE & INTENT

In accordance with the National Affordable Housing Act of 1990, the City of Muskegon must submit
an Annual Action Plan to the U. S. Depattment of Housing & Urban Development pursuant to its
approved Consolidated Plan 2000-2004, which identifies proposed actions toward meeting housing
and non-housing priorities. Affected programs include, but are not limited to the Community
Development Block Grant (CDBG), the HOME Investment Partnership (HOME), the Emergency
Shelter Grant (ESG), Homeless Assistance, Youth Build, and the Housing Opportunities for Persons
Living with AIDS (HOPWA) Programs.

             COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
           ANNUAL STATEMENT OF PRIORITIES & PROPOSED PROJECTS

The City's Community Development Block Grant (CDBG) program is annually funded to address
the City's short and long-term goals, needs and priorities. These goals, needs and priorities are
translated into the City's Annual Action Plan and Statement ofPriorities and Proposed Projects for
each program year period. If a determination is made not to implement an activity, to carry out an
activity not previously described, or to substantially change the purpose, scope, location, or
beneficiaries of an activity, an Amendment to the active program year Action Plan will be enacted.
The City's Statement of Priorities and Proposed Projects for this period follows the Summary of
Resources below:
                            Projected Resources & Activity Summary:

        $1,212,000      FY 2004 HUD/CDBG Entitlement
            25,000      Program Income
            50,000      Program Carry over
        $1,287,000      Total CDBG funding
                                 Other Expected Federal Funding

Law Enforcement Block Grant                      49,782
DOJ Bullet Proof Vest Program                     2,161
Multi-Jurisdictional Drug &Gang                  35,260
FEMA Firefighters Assistance                    129,875
After School Learning Centers                 1,000,000
Total                                         1,217,078

                         Summary of Priorities and Proposed Projects

The City of Muskegon proposes to undertake activities during the 2004 - 2005
program year described as follows: The Funding is based on entitlement amount of
$1,287,000.

Housing Priorities & Proposed Projects

Proposed projects will aid in the elimination of blight throughout the City, which is
detrimental to life, health, and safety.

$180,000       Housing Rehab - Emergency Repair Program. Continued assistance
               to very low-income homeowners for the repair of single-purpose
               housing deficiencies that pose a serious threat to life, health, or safety.

               Locations: City/Community Wide
               Targeted Outcome: 40 Housing Units

$170,000       Housing Rehab - Siding Program. Continued assistance to provide vinyl siding
               to low-income owner-occupants of single-family housing units.

               Locations: City/Community Wide
               Targeted Outcome: 30 Housing Units

$118,000       Housing Rehab - Service Delivery Costs. Funding for the administration of housing
               rehab programs and incidental costs associated with the housing rehab activities such
               as credit reports and recording fees.

               Location: City/Community Wide
               Targeted Outcome: 220 Household

$60,000        Residential Clearance. Continued funding for the board-up and demolition of
               vacant, substandard structures that are not suitable for rehabilitation.

               Locations: Census Tract I-Marquette 2 - Jackson Hill; 3 - Angell; 5 -
               McLaughlin; and 6.02 Nelson Neighborhood
               Targeted Outcome: 15 Housing Units
$40,000        Code Enforcement. Funding for the enforcement of City ordinances with respect
               to property maintenance and neighborhood blighting influences. Funding will be
               used to pay one Code enforcement officer.

               Locations: Census Tract 3 -Angell Neighborhood, Census Tract 5 - McLaughlin,
               Census Tract 2 - Jackson Hill, Census Tract 1 - Marquette, Census Tract 6.02
               Nelson Neighborhood
               Targeted Outcome: 1000 Households

Non-Housing Priorities & Proposed Projects

Proposed projects will encourage commercial and retail development by taking maximum advantage
of a variety of resources, to promote business expansion and investment in order to create a balanced
recreational, commercial, residential, educational and industrial economic climate as follows:

$245,000       Shoreline Drive Bond Repayment. Funding for payment of bond authority funds
               toward completion of the Shoreline Drive project, to be used for real property
               acquisition of affected properties.

               Location: Census Tract 7 - Central Business
               Targeted Outcome: Area Redevelopment


Public Improvements Proposed Projects

Proposed projects will provide the impetus to insure the continued maintenance and upgrading of
the City's infrastructure, transportation and neighborhood resources as follows:

$35,000        Sidewalk Assessment Program. Continued funding of sidewalk replacement costs
               for low-income homeowners, as identified by the sidewalk replacement program.

               Location: Census Tracts - Marquette Neighborhood
               Targeted Outcome: 75 Households

$35,000        Public Rehabilitation/Clean-ups. Funding to be used for maintenance of City-
               owned residential lots and other future public rehabilitation projects.
               Location: Census Tracts 1, 2 ,3 , 5, 6.01
               Targeted Outcome: 200 Lots

$45,000        Street Assessment Program. Continued funding of street replacement costs for
               special assessment levied to low income homeowners who resided in areas where
               street replacement is proposed.

Public Services & Proposed Projects

Proposed projects will support community-based organizations by promoting neighborhood self-
sufficiency and meet the under-served needs of special needs populations such as youth, the elderly,
persons with disabilities and the homeless and low-income residents.
$70,000    Recreation Programs. Continued funding of core-city youth recreation programs.
           Activities include summer/winter swimming, gym activities, basketball, family
           recreation, indoor soccer, and summer playground programs.

           Location: Census Tract 2 - Jackson Hill; 3 - Angell; 4 - East Muskegon; 5 -
           McLaughlin; 6.01 - 6.02 Nelson
           Targeted Outcome: 500 Youth

 $46,500   Sr. Citizen Transit. Continued funding to provide low-cost transportation services
           for elderly residents to medical facilities, shopping centers, edncational/recreational
           activities and other related destinations.

           Location: City/Community Wide
           Targeted Outcome: 1300 Elderly

 $66,500   Special Projects/Community-Based Organizations. Continuation of grant program
           for local non-profit organizations to provide various services to low-income
           community residents.

           Location: City/Community Wide
           Targeted Outcome: 12 Community-Based Organizations
           Approximately: 10,000 individuals


                                       Management

$175,000   Management & Coordination. General management, oversight and coordination
           of CDBG activities. Funding includes cost of staff salaries and fringe benefits, office
           supplies, equipment and contingency; Contract Compliance/EO and Indirect Costs.
                CDBG PROJECTS/ACTIVITIES - 2004

               2004 - 2005 ACTIVITIES - By RANKING




REHABILITATION - HOUSING                 468,000     36%
    Emergency Repair
    Vinyl Siding
    Administration


BOND REPAYMENT                          245,000      19%
     Shoreline Drive


PUB. FACILITIES - ASSESSMENTS            115,000     9%
      Sidewalks/Street
      Lot maintenance

GENERAL ADMINISTRATION                   175,000     14%
    General Admin.
    Affirm. Action


PUBLIC SERVICES                          183,000     14%
     Recreation Programs
     Sr. Transit
     CBO Grants Program


CODE ENFORCEMENT - HOUSING                100,000    8%
    Code Inspections
     Residential Clearance
              2004 HOME INVESTMENT PARTNERSHIPS PROGRAM
           ANNUAL STATEMENT OF PRIORITIES & PROPOSED PROJECTS

The HOME Investment Partnerships Program was created by the National Affordable Housing Act
of 1990, and the City of Muskegon is a designated "Participating Jurisdiction," which allows direct
allocations of funds from the Dept. of HUD. Portions of these funds may be awarded to non-profit
organizations to assist with the provision of affordable housing and support services; other eligible
activities include acquisition, construction, rehabilitation, investor/rental rehabilitation,
downpayment assistance and assistance to first-time homebuyers. The City's Statement of Priorities
and Proposed Projects for this period follows the Summary of Resources and Proposed Amendments
below:

Project Resources:             $337,937

Housing Priorities and Proposed Projects
Proposed projects will aid in the prevention of further loss of viable housing units, increase
affordable homeownership opportunities, encourage new development of affordable housing, and
provide continued support for shelter and service programs for the homeless and persons at-risk of
homelessness as follows:

$149,000       Community Housing Development Organizations. Continued assistance to support
               non-profit organizations providing housing and housing related activities, and
               activities for the needs of the homeless and those at risk of homelessness, and
               technical assistance to emerging non-profit housing organizations.           35
               Households/Citywide

$33,700        Program Administration. General management, oversight and coordination of
               HOME program activities. Funding includes staff salaries, fringe benefits, office
               supplies and equipment.

$80,000        Tax-Reverted Infill Program. Assistance to construct single-family dwelling on
               tax-reverted properties not neighborhood specified. 1 family/targeted neighborhood.

$75,000        Tax-Reverted Rehabilitation Program. Assistance to rehabilitate tax-reverted
               single-family structures and sell to low/moderate-income residents after rehab. 1
               family/targeted neighborhood.
                       $337,937 - HOME PROJECTS/ACTIVITIES - 2004



                  2004 HOME INVESTMENT PARTNERSHIPS PROGRAM
                                CITY OF MUSKEGON
                      COMMUNITY & NEIGHBORHOOD SERVICES
                              PROGRAM DESCRIPTION

2004 ALLOCATION OF FUNDS                                                                       $337,937


HOME Community Housing Development Organizations (CHDO's)                                      $149,000

As a participating jurisdiction, the City of Muskegon is required to provide opportunities for
Community Housing Development Organizations to utilize HOME funds to produce affordable
housing within the City of Muskegon. Funding will include the provision of technical assistance to
assist in building the capacity of CHDO's to produce affordable housing and for administrative
support of the organizations within the regulatory guidelines. Eligible activities include the
acquisition of vacant land or existing structures, the construction or rehabilitation of these properties
for occupancy by low to moderate-income individuals.

Tax-Reverted Infill:                                                                            $80,000

The City of Muskegon will use the allocated HOME funding to construct a single-family home on
a designated tax-reve1ied lot not neighborhood specifically to be located in one of the city's
low/moderate-income eligible neighborhoods. The home is to be sold to a low/moderate family
whose income is at or near 80% of the city's median income. The potential owners will be recruited
with the assistance of one of the city's CHDO's. Downpayment assistance may be available through
the CHDO. The length of the affordability period will be determined by the amount of HOME funds
used as a subsidy in the project.

Program Requirements

Properties must be purchased/ occupied by low to ve1y-low income tenants, those with incomes at
or below 80% of area median income ..


Recapture provisions
The City elects to adopt the recapture of the homebuyer subsidy. The homebuyer subsidy will be
forgiven by the City at a rate of 1/180 per month throughout the term of the affordability period.
Upon sale of the property by the homeowner within the affordability period, the homeowner will be
required to repay a prorated portion of the HOME funds used to subsidize the purchase of the home.

The property owner's return on investment at the point of sale will include:

       The amount of the homebuyer's downpayment made from their own resomces
       The amount of mortgage principle repaid at the time of resale
       The appreciated value of the prope1iy (Appraised value at resale less the appraised value of
       the prope1iy at the time of purchase by the homeowner).
The homeowner will receive the full amount of the fair retum only if sufficient sale proceeds remain
after all outstanding debt (including repayable HOME subsidy amounts) and closing costs are paid.
Any proceeds remaining after payment of the outstanding debt, closing costs, fair return, and any
HOME subsidy repayment will be shared 50/50 between the homeowner and the City. Any funds
repaid to the City will be returned to the HOME trust fund. Repayment of the HOME subsidy
amount will not be required is the resale does not provide sufficient net proceeds to satisfy other
outstanding debt, pay closing costs, and offer a fair return on investment to the property owner.
Partial repayment may be required based on the amount of sales proceeds received by the
homeowner.

Tax-reverted Rehabilitation:                                                                 $75,000

The City of Muskegon will use this funding to rehabilitate a single family structures obtained
through the tax-reversion process, the dangerous building list or through the U. S. Housing and
Urban Developments "Good Neighborhood Program".

The funding will be used to rehabilitate the dwelling to code. After the rehabilitation is completed
the structures will be sold to an income eligible low/moderate-income family through a partnership
with one of the communities CHDO's.

The future occupants will have incomes preferably below 65% of area median income. Any profits
obtained from this program will be reallocated to the local HOME funds. The recapture provisions
are the same as under the Infill program

HOME Administration:                                                                         $33,700

The City of Muskegon will use the funding to administer all HOME programming.

Rental Rehabilitation Program - NOT FUNDED THIS FISCAL YEAR

This program will provide funding for the rehabilitation of existing rental units located in the City
of Muskegon occupied by families whose annual incomes do not exceed 60 percent of the median
family income for the area, adjusted for family size. The City will provide a maximum of $30,000
by matching the owner's contribution to the rehabilitation. The property owner must contribute the
remaining development costs. Properties rehabilitated under this program must meet applicable local
building codes at the completion of the project.

Property owners will be eligible for assistance under the City's Rental Rehabilitation programs only
if there are no outstanding legal actions pending against them for chronic ontstanding violations.
Landlords who have already received assistance under the HUD Rental Rehab program, the MSHDA
HOME Rental Rehab program, or the City's HOME Rental Rehab program will not be eligible for
additional assistance to the same properties. Qualifying property owners must be current on all taxes
and debts owed to the City of Muskegon prior to submitting their application for assistance, and
throughout the HOME affordability period.

Tenant Occupancy
For property receiving HOME Rental Rehabilitation assistance, the units must be occupied by
families with incomes at or below 80% of area median income, adjusted for family size. Income
determinations will be made at the time of application. Tenant occupancy and income will be re-
certified annually for the length of the applicable affordability period.
Monitoring
In compliance with CFR 24 91.230 the City of Muskegon requires all funded subreceipients and
Community Housing Development Organizations (CHDO's) to sign an agreement contract listing
their intended scope of services, a delineated budget and to include all required supporting
documentation. (i.e. 501 C3 verification, list of staff demographics etc) As well as including in the
agreement all pertinent City of Muskegon and U.S. Department of Housing and Urban Development
requirements.

In addition, all Subreceipients and CHDOS are required to submit quarterly progress reports
detailing the organization/agency accomplishments during the past quarter, and or the number of
minorities and or low and moderate income residents served.

The City of Muskegon Community and Neighborhood Services also physically monitors all
Subreciepients and CHDO's at their sites once a year which includes reviewing policies, procedures
as well as activities and accomplishments.

                          RELEVANT NARRATIVE STATEMENTS
                      Issue: Continuum of Care Strategy for the Homeless

        Muskegon County's Continuum of Carel can be viewed as four interconnected phases.
Phase One is an outreach and entry phase. The homeless, near homeless, and the working poor at
risk of homelessness are identified by organizations that provide life-sustaining assistance ... shelter,
food and financial support. These entities include the Salvation Army, City Rescue Mission, Red
Cross, Community Action Against Poverty, Every Woman's Place, Catholic Human Development
Outreach and the COGIC Center of Trinity Village. Their obligation to this strategic plan is to
identify and perform an initial assessment. This process allows referral to safe shelter for the
homeless and to case management services for the near homeless to prevent the loss of home.

         Phase Two is a barrier identification and case management phase. During this phase, client
issues are explored more intensely, and individual, client-driven case management plans are
designed. Additional services from the community are then "wrapped around" the client that
addresses the baniers to safe housing and economic stability. These may include employment
assessment and training, substance abuse treatment, support services education, health and dental
care provisions, legal support, individual and family counseling and movement into a transitional
living situation. The near homeless continue to be monitored and supported to prevent their loss of
home. Organizations involved at this time include Family Centers, Legal Aid, Treatment Centers,
County Employment and Training sites, Health Care providers, and mental health specialists. It
should be noted that even with expensive services in this Phase, a lack of transitional housing can
result in a "revolving door" situation, with clients returning into Phase One.

       Phase Three continues the case management plan, with additional emphasis on self-
supporting skills such as gaining and retaining a life sustaining wage, budgeting, parenting,
permanent housing education and nutrition. Clients in this phase are moved toward pe1manent
housing, if previously homeless, or toward greater stability if identified originally as near homeless.
 Housing education stresses home ownership as a preferred strategy over renting. In this phase,
Housing Commissions, financial institutions, neighborhood associates and the faith-based
community are included.
         Clients in Phase Four are supported in their efforts to gain and maintain a permanent
residence, both physically and financially. Section 8 housing vouchers, city renovation project
grants, and low or no-cost reclamation loans are sought for this purpose. Support services are
offered as required to continue the development and stability of the family toward self-sufficiency
and economic sustainability. Case management services taper off as clients become more self-
reliant.

       Priorities in Muskegon County include support for emergency shelters, additional transition
housing units, and a computerized case management system for data collection and analysis.


Issue: Fair Housing Needs Impediments
The City of Muskegon continuously works to assure that any impediments to fair housing
opportunities are removed. It is the City of Muskegon administration position that the 2000 Census
will illustrate that the City of Muskegon has seen a shift in housing patterns in the last 10 to 15 years
where minorities are residing in areas of the city formerly only occupied by white residents. Some
of the credit for this shift can be attributed to the work of the nonprofit community promotion of
homeownership and also the local realtor community, which has been promoting homeownership
throughout the City. The City of Muskegon has also increased the availability of quality housing
within the city in a number of ways. The City's Infill programs have given the opportunity to low and
moderate-income residents to purchase home they would not be able to afford with out the subsidy.

In the last decade the City of Muskegon has also experienced a significant increase in the availability
of quality rental housing. Several complexes have been built by the private market offering quality-
housing oppmtunities for low and moderate-income residents which includes rental assistance. Even
with the increase in available rental housing there still appears to be a need for addition rental
assistance. During the period of March 18, 2002 thru March 22 2002, the Muskegon Housing
Commission adve1tised open enrollment for its Section 8 vouchers/certificates a total of
approximately 1257 applications were received by the Housing Commission from the public hoping
to obtain rental assistance. January 9, 2003, Muskegon Heights had an open enrollment for their
Section 8 program. A total of 1,000 applications were accepted at that time.


The City of Muskegon Inspection department has aggressively implemented a policy that targets
substandard housing in the City, requiring that the housing is brought up to code in a quality manner
by the owner or the housing is demolished which eliminates the substandard housing from the City's
housing stock and also eliminates the possibility of the substandard housing being rented and or sold
to someone not in a quality condition.

Anyone wishing to make a complaint concerning housing related issues is directed to the City of
Muskegon Affirmative Action office. Last fiscal year a fair housing analysis was produced regarding
Muskegon County by the Grand Rapids Fair Housing Center. The repmt was financed by the cities
of Muskegon, Muskegon Heights, Norton Shores and Muskegon County.

There is currently a local coalition of citizen working to establish a Fair Housing Center in
Muskegon County. There hasn't been a local organization targeted specifically to fair housing
program in several years in Muskegon County.

The results of that study is currently being studied and the information derived from the report will
be used in future plarruing efforts.
                                  Issue: Welfare Reform Impact

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 represents significant
changes in perceptions of'welfare reform'. The challenges represented are critical to all segments
of a given community, and the City of Muskegon is no exception. The Dept. of HUD is promoting
a three-pronged response to begin addressing this issue, and the City of Muskegon will make every
attempt to expand its partnerships with HUD, the State of Michigan, and community organizations
to provide viable services to its residents affected by the legislation by promoting the following
endeavors:

                       * Support for the creation of job opportunity through economic development
                         activities;

                       *   Support and monitoring of innovative uses of tenant-based rental assistance
                           linking welfare recipients to jobs;

                       *   Support and continued promotion of the family self-sufficiency concept;

                       * Provide supportive technical assistance when needed, to help welfare
                         recipients make the transition from dependency to work through expansion
                         initiatives, funding for supportive services and encourage initiatives that
                         provide access to education and job training.

The City acknowledges several area agencies that provide assistance and supportive services with
these common goals, and will continue to expand its role and pattnerships, as debate on this issue
and its impact continue to be assessed.

                              Issue:   Lead Paint Hazard Reduction

The City will continue to coordinate actions towai·d reduction of lead hazards in housing units with
the Muskegon County Health Department, particularly in homes occupied by children under the age
of seven (7), and with elevated blood lead levels. Although, the number of homes rehabilitated
under the City's housing programs remain a small portion of units suspected to have lead hazards,
the County Health Department continues to focus on the existence of hazards in the community and
employees various strategies through area social service agencies for abatement, education, screening
and coordination.

The City's actions toward eradication of this paiticulai· hazard to the community involves the
following:

       * Continued support and coordination with the Muskegon Cow1ty Health Department;

       * Priority consideration under housing programs to households with children with elevated
         blood lead levels;

       * Allocation of CDBG/HOME funding for lead hazard abatement and remediation in
         rehabilitated homes; and

       *   Provision of the most current information, data analysis, and prevention methods to the
           general public through brochures, pamphlets and other education materials on the risks
           oflead poisoning.
Under the City's HOME Program, ce1iain activities involve the acquisition and/or sale of single-
family properties and investor-rehabilitation assistance for rental properties. Under this program,
the following actions apply for purchase, rental, and renovation of pre-1978 housing units:

        *   Investor/Landlords must disclose known information on lead-based paint hazards before
            leases take effect;

        *   Sellers must disclose known information on lead-based paint hazards before selling a
            housing unit; buyers have a minimum of ten (10) days to check for hazards; and

        * Rehabilitation activities will include specific inspection specifications and procedures for
          use by contractors performing construction services.

The City of Muskegon has worked diligently to train both its staff and its contractors in lead paint
remediation. The CNS office has four members of its staff certified in safe work practices. Its
rehabilitation inspector is certified in lead supervision and as a lead wiper. The City has also
financed the training of a total of approximately 62 area contractors in safe work practices and a total
of seven as Lead Based Paint supervisors. The City of Muskegon currently has a qualified staff
person who is authorized to teach the safe work practices class and is planning to offer several in
house training classes.

Public Housing

The Muskegon Housing Commission an independent agency from the City of Muskegon is not
eligible for the Comprehensive Grant because of the number of housing units in its inventory.

During this fiscal Year the City of Muskegon and the Muskegon Housing Commission were able to
partner to finally receive approval from HUD to demolish 8 former Turnkey 3 properties. The
dilapidated houses were owned by the Muskegon Housing Commission and for whatever reasons
had gotten to an obsolescent state. The City along with the Housing Commission and many of the
Citizen who had one of the infamous houses in their neighborhood celebrated last July during the
demolition of the first home on Oak St by the middle of August 2003 all the houses had been
demolished.
The City purchased four of the sites from the Housing Commission and two homes have been
completed at this time, two other homes will be built on the former Turnkey 3 sites during this
coming fiscal year.

Also during this fiscal year the City of Muskegon Community and Neighborhood Services Office
assisted the Muskegon Housing Commission by conducting the Environmental Review assessment
for the Commission Capital Fund grant.

According to the Muskegon Housing Commission's Annual Public Housing Plan the Commission
has nine goals for this fiscal year.

1. Manage the Commission's public housing program in an efficient and effective manner to
   achieve minimum status as a standard perfor~er.
2. Continue to provide a safe and secure environment in the Muskegon Housing Commission's
   public housing development known as Hartford Terrace.
3. Close out Turnkey III program
4. Expand Section 8 Housing Voucher program opportunities for low income families
5. Close out S(h) Homeownership program
6. Expand Family Self-Sufficiency, Community and Supp01iive Services Opportunities.
8. Seek to improve Resident Assessment Satisfaction Survey results
9. Continue to modernize Hartford Terrace Apartment Complex


                    HOUSING AND COMMUNITY DEVELOPMENT NEEDS

Conditions
The overall condition of housing units in Muskegon is good. Much of the City's substandard housing
stock has been eliminated over the past 20 years through Urban Renewal and the City's ongoing
demolition program. On the other hand the number of the city's housing units continue to need
repairs. Reinvestment in the City's housing stock has decreased with the decline in city property
values which has lead to further deterioration and a decrease in the number of units which are
suitable for rehabilitation.

Housing Needs
The greatest housing problem occurs in non-elderly renter households. In 1980, fifty-five percent
of the city's low-income households were homeowners and 45% were renters. By 1990, the ratio had
reversed with only 345 of the City's ve1y low-income households being homeowners and 66% were
renters, the 21 % increase in the very low income rental population resulted in increased demand for
rental units that are affordable to the ve1y low-income families, most of whom need some form of
income or rental subsidy to meet housing needs. 1.364 or 17% of the city's total owner-occupied
households have incomes between 51 % and 80% of the area median. This is interesting because it
is 5% lower than the percentage of homeowners who fall below 50% of median income. The higher
percentage of very low-income homeowners can be explained by the large numbers of elderly
homeowners on fixed incomes that fall into the very low-income categmy. Most of these elderly
families purchased their homes when they were employed and lack sufficient funds to maintain the
homes.

Housing Market Conditions
According to the 2000 U.S. Census the City of Muskegon had 15,999 housing units; 8.284 owner
occupied, 6,285 renter and 1,249 vacant. A loss of331 units occurred since 1980, but the loss was
higher than the City's population loss. Overall City vacancy rates have remained relatively stable.
 However, among the subsidized rental properties that are designed to remain affordable to the City's
low-income residents, there are few vacancies other than normal turnover.

Affordable Housing Needs
Owner-occupied housing units and rental units are all in great need of maintenance and repair. There
is a need for additional rental subsidies for renter household. The Muskegon Housing Commission
is the designated Public Housing agency for the City. The Housing Commission has had a major
impact in the last few years creating affordable housing units. There is an extremely high demand
for Section 8 Rental Assistance. The Section 8 waiting list was recently open from March 18 thru
March 22,2002. During the period the Muskegon Housing Commission received a total 1257
applications for Section 8 rental assistance. Which illustrates the continuous need for additional
rental assistance for the low and moderate-income residents of Muskegon

Homeless Needs
The homeless exist in Muskegon County but are nearly invisible. A larger number of households
are at-risk of homelessness. These households use area food pantries, soup kitchens, and sho1t term
rent assistance.

Precise data did not exist for the homeless and at-risk populations at the beginning of the City's five-
year plan; however changing economic trends and household demographics, have begun to fmmulate
     .   . . .. .
          .            .. . ..            .       .                            .               "    .
to in the Muskegon Area Homeless Coalition Continuum of Care Plan, finalized during early, 2003.

This public policy approach and strategy for meeting the needs of the homeless and those
populations at risk of becoming homeless demonstrates that homelessness is not caused merely by
a lack of shelter, but involves a variety of underlying, unmet needs ---- physical, economic, and
social, and refines a stronger focus toward developing strategies to address these needs. The result
has enacted a specialized care system to move homeless persons to permanent housing with
associated support services to provide outreach, intake and assessment to be coordinated with a
centralized tracking system to define services, broad access to emergency shelters, transitional
housing and record demographic data of persons served. The expected outcome will guide the
allocation of resources addressed by the Consolidated Plan, with a broad-based approach, including
focussed discussion among surrounding municipalities, and area wide service providers to establish
a balanced system which includes emergency shelter, transitional housing, and associated supportive
assistance.

Public and Assisted Housing Needs
Name of Local Housing (LHA): Muskegon Housing Commission. The Commission operates
Hattford Terrace Apartments, a 160-unit elderly/disabled housing complex; Section 8 Tenant
Assistance vouchers/ce1tificates.

Conditions of LHA units: There has been an effort in the last 2 years to conduct major
rehabilitation at the Housing Authority although money has been limited.

Barriers to Affordable Housing
There are no current or outstanding comt orders, consent decrees or formal U.S. Depattment of
Housing & Urban Development sanctions which act as barriers to affordable housing within the City
of Muskegon. However in order to facilitate the City's efforts, the City has requested waivers
through the Enterprise Community project, as described below:

      1.   Waiver Request - Public Assistance Programs

           The use of public assistance grants to offset employers' salary costs for newly hired
           public assistance recipients in order to help recipients get jobs and to expand jobs.

           Pilot projects which mandates job search for ADC applicants.

           Extension of Medicaid coverage to ADC clients entering the work force beyond the 12-
           month period cmTently provided.

           Exemption for one vehicle regardless of value from the current asset limitations.

      2.   Waiver Requests - Public Housing Facilities
           Waiver to keep elderly fatnilies only in housing for elderly and not disabled residents of
           any age.
Lead-Based Paint Strategy
The Muskegon County Health Department is the primary agency involved in the identification of
lead poisoning cases in the community and as such the lead agency for hazard identification and
treatment of persons with elevated blood levels of lead. Youth in Muskegon are at high risk for lead
poisoning for a number of reasons:

            97% of the City's housing units were built before 1979
            12% of the City's housing units are estimated in substandard condition
            26% of the City's households are below the pove1ty level
            41 % of the City's housing units are rental with many concentrated in the inner city

Since September 200 I the City of Muskegon has tested all structures by a lead based risk assessor
in its rehabilitation programs excluding emergency repair and vinyl siding project.

Anti-Poverty Strategy
The City of Muskegon makes concerted efforts to enhance the quality oflife for all of its citizens,
including families and individuals living at or below federally established poverty standards. The
standards are defined by household income levels, tenure and makeup, extent of overcrowding and
substandard conditions, unemployment, human service needs, and homelessness.

In order to assist residents with breaking the cycle of poverty, the City has embarked on several
projects, to break the poverty cycle by implementation of several centrally focussed strategies:

       *   Encourage the improvement of existing housing conditions by continuing suppo1t of
           City-administered housing programs, i.e. code enforcement, low-cost comprehensive
           grant/loan repair assistance; continued encouragement and support for initiatives aimed
           at first-time homebuyers, and mortgage financing which fosters affordable housing
           opportunities, such as those currently provided by the Neighborhood Investment
           Corporation.

       *    To create viable employment options by supporting area wide economic development
           activities, including training and re-training of displaced workers, the development of
           projects which target economic opportunity for designated poverty-level segments, and
           to assist new and retain/expand existing businesses.

       *    By supplying funding when available to a number of public services that work diligently
           to assist low income resident break the cycle of poverty. These public services include
           areas of assistance that focus on health especially in the minority community, legal
           services, childcare, transportation and education, parent support.

Coordination

As pait of the community-based partnership organizations and agencies participating in the
development of the Consolidated Plan, over 100 local service providers were consulted.
Ove1whelming support was provided, with many agencies offering additional programs and
resources, such as: The Muskegon Housing Commission, Muskegon Department of Social

Services (State of Michigan), Muskegon County Department of Community Mental Health,
Muskegon County Health Department, Michigan State Housing Development Authority and
Michigan Region 14 Area Agency on Aging.
The 2004-2005 CDBG/HOME activities are significantly consistent with the priorities as developed
in the 2000 - 2004 Consolidated Plan.

The City is meeting all its stated housing priorities through its partnership with the CHDO's and its
in-house infill and emergency repair programs.

PRIORITY I. To allocate at least the required an10unt of HOME funding to area CHDO's to assist
low-income with downpayment assistance and increase their ability to obtain m01tgages.

PRIORITY 2. By working through the City's Infill project to increase the number of new homes
constructed within the targeted areas.

PRIORITY 3. Rehabilitate owner-occupied and rental structures tlu·ough the community.

The non-housing priorities are consistent with those established in the Consolidated Plan because
the 2004 - 2005 activities in this category promote small business development and overall
community economic development.

PRIORITY 1. To work collaboratively to increase new employers and the availability of skilled
workforce.

PRIORITY 2. Increase developable land in the areas of commercial, industrial and residential.

PRIORITY 3. Increase number of small businesses.

The City of Muskegon public service is highly correlated with the established Consolidated Plan that
was under the category of Neighborhood Objectives. The 2004-2005 activities consist of
infrastructure improvements, recreation activities, senior programs, education support and
neighborhood improvement programming.

The neighborhood priorities as developed in the Consolidated Plan are:

PRIORITY 1. Increase Leisure Services activities/facilities.

PRIORITY 2. Improve quality of life in low/moderate income neighborhoods.

PRIORITY 3. Increase neighborhood retail opportunities

PRIORITY 4. Improve and upgrade city public safety equipment

PRIORITY 5. To continue to work with and when possible supply financial assistance to
subrecipients in the health field.

As in the past the City of Muskegon will periodically during fiscal year review its activities to assure
that the performances of its programs are meeting its goals and objectives. This will be
accomplished by reviewing subrecipients and CHDO's quarterly reports as well as conducting on-
site monitoring visits. As well as reviewing the department's performance on a monthly/ quarterly
basis. All subrecipients and CHDO' s are informed in their agreements that they have one year to
complete their projects (June I tlu·ough May 31) unless an extension is granted by the City of
Muskegon Community and Neighborhood Services
Public Comment
                                 ACTION PLAN - YEAR 28
                                   6/0 I /04 thru 5/31/2005

                         Community Development Block Grant Program
                            Description of Key Proposed Projects

                                                                      AMOUNT

PROGRAM ADMINISTRATION                                                $175,000

SHORELINE DRIVE            Bond Repayment                               245,000

HOUSING REHABILITATION                                                 468,000

PUBLIC IMPROVEMENTS                                                     115,000

CODE ENFORCEMENT                                                         40,000

RESIDENTIAL CLEARANCE                                                    60,000

PUBLIC SERVICES                                                         183,000

                                            TOTAL-CDBG               $1,286,000


                           HOME Investment Partnerships Program
                            Description of Key Proposed Projects


DEVELOPMENT

  Tax -Reverted Infill                                                 $80,000

SUPPORT SERVICES

  Certified Community Housing Development Organizations                149,000


HOUSING

  Tax-Reverted Rehabilitation                                           75,000

ADMINISTRATION                                                          33,700
                                          TOTAL-HOME                  $337,700
DATE:               March 30, 2004

TO:                 Honorable Mayor and Commissioners

FROM:               Robert B. Grabinski, Director of Inspection Services

RE:                 Concurrence with the Housing Board of Appeals Notice and Order
                    to Demolish. Dangerous Building Case #: En-040005 Address:
                    1355 Pine.


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1355 Pine is unsafe, substandard, a public nuisance and that it be demolished
within thirty (30) days. It is further requested that administration be directed to
obtain bids for the demolition of the structure and that the Mayor and City Clerk
be authorized and directed to execute a contract for demolition with the lowest
responsible bidder.

Case# & Project Address: # En-040005, 1355 Pine St.

Location and ownership: This structure is located on Pine Street between Bauer
and Catawba and is owned by Raymond Kittel.

Staff Correspondence: On 1/21/04 the trade inspectors and Fire Marshal
conducted an inspection at this house after the housing inspector reported
dangerous living conditions. At the time there were two women living there with
their six children. They believed they were renting from Mr. Kittel, but he had
actually had them sign a Land Contract in the amount of $40,000 on 2/21/03.
Upon inspection the Fire Marshal and trade inspectors found the structure to be
very dangerous and the two families were told they would have to vacate the
premises. Their case workers did help them find new places to stay and were
referred to Legal Aid of West Michigan in reference to the Land Contract. The
utilities have since been cut and the house is vacant. A notice and order to
repair or remove was issued 1/22/04 and on 3/4/04 the HBA declared the
structure substandard and a dangerous building.

Owner Contact:    Mr. Kittel spoke with Mr. Grabinski the week before the HBA
meeting and spoke of selling the house. He stated he had a potential buyer
already lined up.

Financial Impact:             CDBG Funds

Budget action required:                 None

State Equalized value:                  $22,800

Estimated cost to repair:               $ 20,000

Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
C:\Documcnts and Scltings\Potter\Local Settings\Temporary Internet Files\OLKlA\AGENDA-1355 Pine.doc   page I of2
City Commission Recommendation: The commission will consider this item at it's
meeting Tuesday, April 13, 2004.




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLKIA\AGENDA ~1355 Pine.doc   page 2 of2
                                    CITY OF MUSKEGON

                   DANGEROUS BUILDING INSPECTION REPORT

                                         1355 PINE
                                  (INTERIOR INSPECTION)
                                          1/21/04


Inspection noted:

1.    Service to be replaced to meet 2000 MRC.
2.    Smoke alarms to meet 2000 MRC.
3.    Rewire house to meet 2000 MRC.
NOTE:         Will need to meet 2003 MRC when new code is adopted.

4.      Complete plumbing to be replaced.
5.      Structural repair on home floor system required. Improper connections of
        joists to beams. Improper columns and column support. Opening in floor
        is improperly framed and must meet MRC 2000 requirements; chapter five
        floors; or provide structural engineered design on repairs.
6.      All stair systems interior and exterior must be brought up to code; missing
        treads, risers, guardrails and handrails.
7.      Smoke alarms must meet sec. R.317 MRC 2000 requirements; hardwired,
        interconnected with battery back up.
8.      Provide egress windows per code; sec. R310 MRC 2000.
9.      Numerous damage to ceilings, walls, and floor systems throughout. All
        floor - ceiling joists must meet required spans.
10.     Side porch on home is unstable - rebuild to code -floorings, decking,
        guards & joists.


BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I
HAVE DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A
DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN
SECTION 4-23 OF THE MUSKEGON CITY CODE.



HENRY FALTINOWSKI, BUILDING INSPECTOR                                      DATE




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLKIA\1355 Pine-lnsp Rpt
.doc
January 21, 2004



Lucinda McDonald
1355 Pine Street
Muskegon, Ml 49442

Dear Ms. McDonald:

An inspection was conducted by the Muskegon Fire Department at 1355 Pine Street
on 1/21/04. The structure was deemed to be unsafe. All occupants shall be
removed from the premises. Please see International Fire Code requirements:

       110.1 General. If during the inspection of a premises, a building or structure
       or any building system, in whole or in part, constitutes a clear and inimical
       threat to human life, safety or health, the code official shall issue such notice
       or orders to remove or remedy the conditions as shall be deemed necessary
       in accordance with this section and shall refer the building to the building
       department for any repairs, alterations, remodeling, removing or demolition
       required.

       110.1.1 Unsafe conditions. Structures or existing equipment that are or
       hereafter become unsafe or deficient because of inadequate means of egress
       or which constitute a fire hazard, or are otherwise dangerous to human life
       or the public welfare, or which involve illegal or improper occupancy or
       inadequate maintenance, shall be deemed an unsafe condition. A vacant
       structure which is not secured against unauthorized entry as required by
       Section 311 shall be deemed unsafe.

      110.1.2 Structural hazards. When an apparent structural hazard is caused
      by the faulty installation, operation or malfunction of any of the items or
      devices governed by this code, the code official shall immediately notify the
      building code official in accordance with Section 110.1.

      110.2 Evacuation. The code official or the fire department official in charge
      of an incident shall be authorized to order the immediate evacuation of any
1355 Pine Street
Page2

       occupied building deemed unsafe when such building has hazardous
       conditions that present imminent danger to building occupants. Persons so
       notified shall immediately leave the structure or premises and shall not enter
       or re-enter until authorized to do so by the code official or the fire
       department official in charge of the incident.

       110.3 Snmmary abatement. Where conditions exist that are deemed
       hazardous to life and property, the code official or fire department official in
       charge of the incident is authorized to abate summarily such hazardous
       conditions that are in violation of this code.

For advice or assistance, please call me at 724-6793.

Thank you,



Major Metcalf
Fire Marshal

C:     Protective Services
January 23, 2004



Marzella & Lucinda McDonald
1355 Pine St.
Muskegon, Ml 49442

Re: Unsafe electrical Service at 1355 Pine St.

As the result of an inspection at the above referenced property, it was
determined that the electrical system was and is an imminent danger to life and
property. Because of hazards found during this inspection, in accordance with
Article 90-11 of the Michigan Electrical Code, electrical utilities will be terminated
on January 27, 2004 if repairs are not made.

During this inspection it was determined that the entire electrical system poses a
life/safety hazard. This will need to be replaced to code and inspected. An
electrical permit will need to be obtained before any work is done.

A licensed electrical contractor must make all repairs of safety and code
violations, and an inspection must be scheduled before electrical utilities can be
restored.

The above mentioned violations are a safety issue and in no way should be
construed as including any other code violations at the above mentioned
property.

Should you have any questions, please feel free to call me at (231) 724-6758.



Kenneth Murar
Electrical Inspector, City of Muskegon

Cc:    File
       Fire Department
       Consumers Energy
    -




(3,'-0,)   f /,J /-c_   ~q-   I




           (d/;)oa'-(
                                    AGREEMENT
 THIS AGREEMENT, made this December 21, 2004 by and between:
 Hitsman Enterprises.

 (a corporation organized and existing under the law of the State of Michigan);
 (partnership consisting of _ _ _ _ _ _ _ _ ); (an individual trading as _ __
--;;i: bJ ., ? f ,.,,,,,;7-, ·/ ); hereinafter called the "Contractor," and the City of
 Muskegon, Michigan, hereinafter called the "City".

 WITNESSTH, that the Contractor and the City, for the consideration stated
 herein, mutually agree as follows:

ARTICLE 1. Statement of Work. The Contractor shall furnish all supervision,
technical personnel, labor, materials, machinery, tools, equipment, and services,
including utility and transportation services, and perform and complete all work
required for the demolition and clearance of 1355 Pine as well as required
supplemental work for the completion of this project, all in strict accordance with
the Contract, including all Addenda.

ARTICLE 2. Contract Price. The City will pay the Contractor for the performance
of this Contract and the completion of the work covered therein an amount not to
exceed $4700.00

ARTICLE 3. CONTRACT: The executed contract shall consist of, but not be
limited to, the following:

Invitation for Bids
Instructions to Bidders
Bid Proposal
Agreement
General Specifications for Project Performance
Equal Opportunity and Employment Specifications
Demolition and Site Clearance Specifications

This Agreement, together with other documents listed in Article 3, which said
other documents are as fully a part of the Contract as if attached hereto or
repeated herein, form the contract between the parties hereto.

In the event any provision in any component part of this Contract conflicts with
any provision of any other component part, the Contractor shall contact the City
immediately in writing for a determination, interpretation, and/or classification of
conflicting parts and priority of same. Said determination from the City shall be in
writing and shall become an Addendum to this Contract.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to
be executed on the day and year first written above.
                                    CONTRACTOR:.

                                    BY:   (µ:< l!:k-\~~---
                                             Printed name and title
                                             ··,2: i; '" 2 C c!ZJ1A.. ·.
                                                             0
                                                                           C,   u   ,c;, ,._.
ATTEST:                             CITY OF MUSKEG

 ~ \k= l

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