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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 14, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
A. Recognition of Paul Billings Outstanding Citizen Recipient for 2018
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. 2019-2020 Michigan Municipal League Membership Dues City Clerk
C. Zoning Ordinance Amendment – Planned Unit Development Section of
Single Family Residential Districts – 2nd Reading Planning & Economic
Development
D. Zoning Ordinance Amendment – Landscaping Requirements – 2nd
Reading Planning & Economic Development
E. Marina Management Agreement City Manager
F. Arena Management City Manager
G. Purchase Agreement Extension – 1490 Lakeshore Drive City Manager
H. Tug and Trailer Purchase City Manager
I. Storage Garage – Marsh Field City Manager
J. Purchase Agreement – 1192 Pine Street City Manager
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K. Tuition Reimbursement City Manager
L. Summer Evening Recreation Program City Manager
M. Hartshorn Marina T-Dock Repairs Department of Public Works
N. Consumers Energy LED Department of Public Works
O. SRF – RR Sewer Crossing Department of Public Works
P. DPW Carbon Monoxide System Upgrade and Repairs Department of
Public Works
Q. Change Order #003 – West Shore CF Demolition Department of Public
Works
R. 2019-20 Healthcare and Wellness Program Finance
S. Delta Dental Renewal Finance
T. Financing for Roof Replacement at LC Walker Arena Finance
U. Financing for HVAC/Dehumidification Upgrades at LC Walker Arena
Finance
V. Notice of Intent Resolution Sanitary Sewer Revenue Bonds Finance
□ PUBLIC HEARINGS:
A. Public Hearing for Amendment to the Brownfield Plan for DMDC
Redevelopment Project-Former Muskegon Mall Planning & Economic
Development
B. Public Hearing for Amendment to Brownfield Plan – City of Muskegon
(Developer) Planning & Economic Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Fireworks Ordinance Update Public Safety
B. Prohibition of Sale and the Consumption of Marihuana in Public Places
(Sec 58-4) Public Safety
C. 2019 CDBG/HOME Budget Recommendations Community and
Neighborhood Services
D. Purchase Agreement – Former Farmers Market Site City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
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► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
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Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: May 8, 2019
Here is a quick outline of the items on our agendas:
Work Session:
THIS WILL BE A LONG AGENDA – WE WILL PROVIDE DINNER
1. 1490 Lakeshore Drive purchase Agreement. We will discuss the purchase agreement for
1490 Lakeshore Drive. This is the former Amoco Tank Farm site. There is significant
environmental remediation that needs to happen to put the property back into
productive use. Absent millions in cleanup expenses, the property will never be usable to
residents in any capacity – including recreational. Per the attached site plan, the
developer is seeking to construct a marina with a mix of housing and commercial units.
Cleaning/preparing the site to accommodate this use will likely reach $15 Million. This
purchase agreement will enable the developer to begin spending significant dollars in
environmental assessment activities. Staff believes that this process poses the greatest
likelihood that adequate remediation will take place on the property. The group
purchasing the property has significant experience in environmental remediation; they
have completed many state and federal contracts to undertake similar work across the
Great Lakes.
2. Arena Management Agreement. This agreement is with Arc Arena Management. We
have historically used an arena management agreement in lieu of using a full-time
employee to manage the arena because of cost savings and flexibility. For a short time
recently, we used a city employee and will now be moving back to a management
agreement. This agreement has a base monthly payment but also a series of incentives
to drive community events into the facility and move the facility into a profit center.
3. Marina Management Agreement. The agreement is with F3 Marina via a subcontract with
Hartshorn Marina Village. We recently lost our harbormaster and found it difficult to
replace the position. This group manages a number of public marinas in the Great Lakes
region and has significant experience in improving the service levels of those marinas. We
are move to make significant investments in the marina by replacing docks and restrooms,
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and adding amenities, the rates will undoubtedly rise. We need to be in a position to
provide excellent service immediately – and we feel F3 can help us do that.
4. Suburban Nation. LeighAnn Mikesell will be starting a regular program with staff, City
Commissioners and Planning Commissioners that helps educate each of us on the
important of urban-focused decision-making. At the work session, LeighAnn will provide
each Commissioner a copy of the book and spend a little time talking about the first two
chapters.
5. Parks and Streets Capital Improvement Plan. This item is not going to appear on the
regular session. After months of compiling information, the Department of Public Works
is ready to share a vision to begin redeveloping our aging infrastructure (specific to parks
and streets).
Parks. A number of years ago, our residents identified certain parks that they felt
should be part of the city’s infrastructure system in perpetuity. This has helped
lead to Muskegon being a leader in park space – with an estimated 600+ acres of
parkland. Unfortunately, we have not had the resources to maintain those parks
properly for many years – and some of our parks have not experienced significant
investment in decades. We have restrooms that are non-functioning, parking lots
and sidewalks that need new pavement, ADA issues, playground issues, flooding
issues, and more. Conservatively, those costs could exceed $16 Million . . . at our
current expense rate, it would take another 50years (or more) to complete these
items.
Streets. I think we all agree that our streets need significant work. We are
undertaking a major project on Lakeshore Drive this summer. Once that is
complete, most of our major arteries will be in reasonable/fair shape. We have
some work to do on parts of Sanford, Peck, Laketon, Sherman, and Lakeshore
Drive over the next few years. With that said, we would like to focus energy on
neighborhood streets, as those are in far worse shape – we have about 75 miles
of such roadways. Right now, we simply do not generate enough money from gas
taxes to properly maintain (or replace) the local roadways. Through a rating
process, DPW staff has identified approximately 87 separate stretches of local
streets that need significant work. We focused on streets that need resurfacing
vs reconstruction, because our dollars would go significantly farther. Those 87
projects would cost approximately $11 Million.
Funding. This is something that will need extensive community input. We did do
some traditional funding models for the commissioners to see. All of these
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options require issuance of debt. Over 15 years, the payment would be
approximately $2.37 Million.
6. Marihuana Usage. Staff is seeking approval of an ordinance that would regulate the use
of marihuana in public spaces. This is similar to the way we would regulate alcohol usage.
7. Recreational Marihuana. Staff is seeking a discussion on recreational marihuana. This is
different from medicinal – where we had to choose to opt-in. In the recreational
marihuana law, we are assumed to have opted-in unless we officially opt-out.
Regular Session:
1. Under Presentations, we award our outstanding citizenship award to Paul Billings.
2. Under the Consent Agenda, we are asking the Commission to consider the following:
a. Approval of meeting minutes from the most-recent City Commission meeting.
b. Payment of MML Dues
c. Second reading of the PUD ordinance
d. Second reading of landscaping requirements ordinance
e. Approval of the marina management agreement with F3
f. Approval of the Arena management agreement with Arc Arena Management
g. Approval of purchase agreement for 1490 Lakeshore Drive
h. Approval of purchase of tug and trailer for downtown events
i. Authorization to construct storage garage at Marsh Field
j. Authorization to purchase the property at 1192 Pine Street
k. Authorize changes to the tuition reimbursement program. The change would add
$500 to the annual reimbursement threshold.
l. Authorization of $13,500 additional expense for the Summer Evening Recreation
Program
m. Authorize $10,300 expense for repairs to the T-Dock at Hartshorn Marina.
n. Authorize changes to the Consumers Energy Street Lighting Contract
o. Authorize an agreement with CSX to cross under their tracks with a sewer line
p. Approve carbon monoxide monitoring and control equipment for the DPW
building.
q. Authorize a change order in the demolition contract for the prison site to address
items found underground.
r. Approve the healthcare program (the costs are actually down)
s. Approve a change to the employee delta dental plan
t. Approve the financing for the LC Walker Arena roof
u. Approve the financing for the LC Walker Arena HVAC and dehumidification
improvements.
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v. Notice of Intent Resolution Sanitary Sewer Revenue Bonds. Based on recent
estimates of the cost of the project we believe it is necessary to request an
additional authorization for $3 million.
3. Under Public Hearings:
a. Public hearing on the Brownfield request for The Leonard building
b. Public hearing on the Brownfield request for the City’s scattered site Brownfield
program (infill housing).
4. Under the New Business, we are asking the Commission to consider the following:
a. First reading of an ordinance prohibiting the sale and consumption of marihuana
in public places.
b. First reading of an ordinance regulating fireworks usage. There will be fewer days
allowed and larger fines for violations.
c. 2019 CDBG/HOME budget
d. Purchase Agreement – Former Farmers Market Site. We are going back to the
original purchase price of $150,000 for the site so we can get moving on the food
hub while the developer contemplates activity at the Ameribank building.
Let me know if you have any questions/comments/concerns
Frank
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Date: May 8, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the April 23, 2019 Regular
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 23, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, April 23, 2019, George
Monroe, Evanston Avenue Baptist Church, opened the meeting with prayer,
after which the Commission and public recited the Pledge of Allegiance to the
Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson, Byron Turnquist, Debra Warren, and Dan Rinsema-Sybenga, City
Manager Frank Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent: Commissioner Willie German, Jr.
INTRODUCTIONS/PRESENTATION:
A. Recognition of Women Veterans Day
In acknowledgement of the one-year anniversary of the City’s creation of
Women Veteran’s Day. Zenata Adams from WINC – Women Injured in Combat –
was present to thank the City Commission for recognizing Women Veterans. The
City of Muskegon was the first in the State of Michigan to do so.
B. Mr. Football Presentation
Muskegon Big Red Football Player, Cameron Martinez, was recognized for his
outstanding achievement in being named High School Football Player of the
Year. Mr. Martinez was joined by some of his teammates and was recognized by
the Mayor and Commissioners and presented with a certificate and street sign
for him to keep.
2019-32 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the continued Goal Setting
meeting held March 26, 2019, minutes of the Worksession meeting held April 8,
2019, and minutes of the Regular meeting held April 9, 2019.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
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STAFF RECOMMENDATION: Approval of the minutes.
B. Request to Fly the Norwegian Flag City Clerk
SUMMARY OF REQUEST: Sons of Norway are requesting permission to fly the
Norwegian Flag at City Hall on Friday, May 17th, in honor of Norway’s
Constitution Day (Independence Day).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
C. Special Event Liquor Licenses – 2019 Events City Clerk
SUMMARY OF REQUEST: The City Clerk’s Office is organizing several events for
2019 and we are seeking commission approval to apply for a special liquor
license for beer, wine, and spirit service for the following:
Taste of Muskegon at Hackley Park – June 14 & 15, 2019
Food Truck Rallies at the Farmer’s Market – June 26, July 24, and August 21, 2019
150th Anniversary Celebration at Heritage Landing – July 11, 12, & 13, 2019
Farm-to-Table Fundraiser at the Farmer’s Market – September 5, 2019
The Farmer’s Market does have a liquor license but the licensed area does not
extend beyond the barn.
FINANCIAL IMPACT: $50 permit from the State for every date requested.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve a special liquor license for the events
organized by the City Clerk for 2019.
D. Zoning Ordinance Amendment – Planned Unit Development Section of
Single-Family Residential Districts
Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend Section 403 of the
zoning ordinance to revise the intent of the Planned Unit Development option
by allowing limited retail options.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request 8-0 at the April 11 meeting.
SECOND READING REQUIRED
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E. Zoning Ordinance Amendment – Landscaping Requirements Planning &
Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend Section 2331 of the
zoning ordinance to allow applicants to donate trees to the City’s nursery rather
than to replace trees on site during development.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request 8-0 at their April 11 meeting.
SECOND READING REQUIRED
H. Permanent Traffic Control Orders #37 through #52 Department of Public
Works
SUMMARY OF REQUEST: Authorize the various Traffic Control Orders #37 thru #52.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize the various Traffic Control Orders.
I. Water Interconnect Contract Department of Public Works
SUMMARY OF REQUEST: Approve the Water Interconnect Contract and
authorize the Mayor and Clerk to sign the contract.
The Water Interconnect Contract outlines the details for the current and any
future locations where the city of Norton Shores/Fruitport Township water mains
are interconnected with the Spring Lake Township water mains along their
shared border. These connections serve to provide continuation of service in the
event of an emergency.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the Water Interconnect Contract and
authorize the Mayor and Clerk to sign.
J. City Hall Elevator Repairs Department of Public Works
SUMMARY OF REQUEST: Award a contract for elevator repairs at City Hall to the
low bidder Otis Elevator Company. The elevator is currently not functioning
properly and is often times only accessible from the basement.
Two contractors submitted bids for this project as follows:
Otis Elevator Company $69,861 (Base) + $9,850 (Alternate)=$79,711 Total
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KONE, Inc. $89,850 (Base) + $24,470 (Alternate)=$114,320 Total
The base bids include functionality repairs to the elevator including new power
units, sensors, control panels, buttons, and chimes. The alternate bid provided by
Otis includes rehabilitation of the cab interior with new walls, handrails, ceiling
and lighting.
FINANCIAL IMPACT: $79, 711.00
BUDGET ACTION REQUIRED: None. To be address in future reforecast.
STAFF RECOMMENDATION: Award the project including the alternate to the
low bidder Otis Elevator Company.
L. Smith Ryerson Parking Lot Improvements Department of Public Works
SUMMARY OF REQUEST: To award contract (SP-240) for construction of
improvements at the parking lot for Smith-Ryerson Park.
Five contractors submitted bids for this project as follows:
Accurate Excavators $88,668.50
Terra Contractors $89,416.00 (Local Contractor)
Stein Construction $105,937.15
Bultsma Construction $108,057.00
West Michigan Dirtworks $123,396.49
The second low bidder is a local contractor with offices located within the City
of Muskegon the low bidder is not located within the City of Muskegon. The bids
are within 1% of each other.
FINANCIAL IMPACT: $89,416.00
BUDGET ACTION REQUIRED: None. Project is budgeted for $96,726 of CDBG
funds in the 18-19 budget.
STAFF RECOMMENDATION: Award the project to the second low bidder,
Terra Contractors, in accordance with the City of Muskegon Policy regarding
Local Preference Purchasing/Contracting.
M. Purchase Agreement – 1067 Grand Avenue City Manager
SUMMARY OF REQUEST: City staff is seeking permission to enter into a purchase
agreement with Jonathan and Melissa Wilson for city-owned home located at
1067 Grand. The purchase price is $143,000.
FINANCIAL IMPACT: $143,000 minus closing costs deposited into the City’s
Public Improvement Fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the city manager to enter into a
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sales agreement to sell the property at 1067 Grand Avenue for $143,000 with
Jonathan and Melissa Wilson.
N. Approval of a Neighborhood Enterprise Zone Certificate – 324 Terrace
Point Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Christopher & Elizabeth Beck for the
new construction of a home at 324 Terrace Point. The applicant has met local
and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT: Taxation will be 50% of the State average for the next
12 years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the NEZ Certificate.
O. Approval of a Neighborhood Enterprise Zone Certificate – 343 Terrace
Point Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Dennis Atkinson for the new
construction of a home at 343 Terrace Point. The applicant has met local and
state requirements of the issuance of the NEZ certificate.
FINANCIAL IMPACT: Taxation will be 50% of the State Average for the next
12 years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the NEZ certificate.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the consent agenda as presented, except items F, G, and K.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema-
Sybenga
Nays: None
MOTION PASSES
2019-33 ITEMS REMOVED FROM CONSENT AGENDA:
F. Set the Public Hearing for Amendment to Brownfield Plan – City of
Muskegon (Developer) Planning & Economic Development
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
an amendment to the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of properties in the Nelson Neighborhood
owned by the City of Muskegon.
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FINANCIAL IMPACT: There is no direct financial impact in including the
project in the Brownfield Plan, although the redevelopment of the site into a
residential development will eventually add to the tax base in Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority
met on April 9, 2019 and approved the Brownfield Plan Amendment, and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission. In addition, the Brownfield Redevelopment Authority
recommends that the Muskegon City Commission set a public hearing on the
Plan Amendment for May 14, 2019.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the resolution to set a public hearing and authorize the Mayor and Clerk to sign
the resolution.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
Turnquist
Nays: None
MOTION PASSES
G. Set the Public Hearing for Amendment to Brownfield Plan- Sweetwater
Development, LLC Planning & Economic Development
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
an amendment to the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property at 292 W. Western, owned by
Sweetwater Development, LLC.
FINANCIAL IMPACT: There is no direct financial impact in including the
project in the Brownfield Plan, although the redevelopment of the site into a
residential development will eventually add to the tax base in Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority
met on April 9, 2019 and approved the Brownfield Plan Amendment, and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission. In addition, the Brownfield Redevelopment Authority
recommends that the Muskegon City Commission set a public hearing on the
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Plan Amendment for May 14, 2019.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the resolution to set a public hearing and authorize the Mayor and
Clerk to sign the resolution.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
K. Pere Marquette Park Chalet Request Department of Public Works
SUMMARY OF REQUEST: 3rd Coast Rentals provided staff with a proposal to
construct and operate a chalet at Pere Marquette Park for a three-year period
to begin in 2019.
FINANCIAL IMPACT: Loss of revenue estimated at $1,500/Year for three
years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to finalize an agreement with 3rd
Coast Rentals to construct to construct and operate a chalet at Pere Marquette
Park.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
authorize staff to finalize an agreement with 3rd Coast Rentals to construct and
operate a chalet at Pere Marquette Park.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Johnson, and Gawron
Nays: Turnquist
MOTION PASSES
2019-34 PUBLIC HEARINGS:
A. Public Hearing for the 2019 Action Plan Community & Neighborhood
Services
SUMMARY OF REQUEST: To conduct a public hearing on April 23, 2019 to
receive comments from the public concerning the 2019 Action Plan developed
and proposed by the Community and Neighborhood Services department.
After the public hearing, all comments received during the 30-day comment
period (April 15-May 14) will be documented and included in the plan as
required.
FINANCIAL IMPACT: The City is required to submit the Annual Action Plan to
receive 2019 allocations of CDBG and HOME Investment Partnership Programs
BUDGET ACTION REQUIRED: Approve a 2019 Budget at the May 14
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Commission meeting at the conclusion of the comment period.
STAFF RECOMMENDATION: To direct staff to gather comments from the
public for the 2019 Action Plan until May 13, 2019 – end of comment period.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and direct staff to gather comments from the public
for the 2019 Action Plan until May 13, 2109 – the end of the comment period.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Hood
Nays: None
MOTION PASSES
B. Public Hearing for DWRF Project Plan Department of Public Works
SUMMARY OF REQUEST: Conduct a public hearing related to the DWRF Project
Plan that was posted for public comment on March 23, 2019 and approve the
Resolution to adopt the plan.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Conduct public hearing and approve the
resolution.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the resolution to adopt the plan.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: None
MOTION PASSES
2019-35 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
1874 Jarman Street (Escrow Funds)
1079 Holt Street (Escrow Funds)
190 Wood Street (General Funds)
1873 Franklin Street (CDBG Funds)
SUMMARY OF REQUEST: This is to request that the City Commission concur with
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the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days or infraction tickets may be issued. It is further requested that administration
be directed to obtain bids for the demolition of the structures and that the
Mayor and City Clerk be authorized and directed to execute contracts for
demolition with the lowest responsible bidder or staff may issue infraction tickets
to the owners, agents, or responsible parties if they do not demolish the
structure.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Warren, second by Commissioner Johnson, to concur
with the Housing Board of Appeals decision to demolish 1873 Franklin Street, 190
Wood Street, and 1079 Holt Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: None
MOTION PASSES
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to concur with the Housing Board of Appeals decision to demolish 1874 Jarman.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, and Gawron
Nays: Hood and Warren
MOTION PASSES
B. Revised Notice of Intent to Issue Capital Improvement Bonds City
Manager
SUMMARY OF REQUEST: The City Commission previously issued a notice of intent
to issue capital improvement bonds for the purpose of constructing a
convention center. The original intent provided for the borrowing of up to $20
Million for a period of up to 25 years. Upon further review, staff is recommending
that the notice be re-issued to allow for the term to be extended up to 30 years.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the Notice of Intent to Issue Capital
Improvement Bonds up to $20 Million for a repayment term not to exceed 30
years for the purpose of constructing a convention center.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
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to approve the Notice of Intent to Issue Capital Improvement Bonds up to $20
Million for a repayment term not to exceed 30 years for the purposes of
constructing a convention center.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
C. LC Walker Arena Restaurant Proposals City Manager
SUMMARY OF REQUEST: Economic Development Staff has reviewed the
proposals and made a written recommendation. Staff is requesting permission to
implement the action steps of that recommendation. Staff would return to a
subsequent City Commission meeting to present lease terms for the accepted
proposal(s).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To accept the staff recommendation and
authorize staff to implement the action steps.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to accept the staff recommendation and authorize staff to implement the action
steps.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
Nays: None
MOTION PASSES
D. Purchase Agreement Extension – 1490 Lakeshore Drive REMOVED PER
STAFF REQUEST
E. Arena Management – ARC Arena Management REMOVED PER STAFF
REQUEST
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 8:20 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 10 of 10
Date: May 8, 2019
To: Honorable Mayor and City Commissioners
From: Ann Meisch, City Clerk
RE: 2019-2020 Michigan Municipal League
Membership Dues
SUMMARY OF REQUEST: Approval to pay the 2019-2020 MML dues
in the amount of $10,206. This is an increase of $239.
FINANCIAL IMPACT:
MML Dues $9,278
Legal Defense Fund $ 928
Total $10,206
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Commission Meeting Date: May 14, 2019
Date: May 9, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Zoning Ordinance Amendment - Planned Unit Development
Section of Single Family Residential Districts - 2nd Reading
SUMMARY OF REQUEST:
Staff initiated request to amend Section 403 of the zoning ordinance to revise the intent
of the Planned Unit Development option by allowing limited retail options.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the zoning ordinance amendment
COMMITTEE RECOMMENDATION:
The Planning Commission unanimously recommended approval of the request 8-0 at
their April 11 meeting
Hearing, Case 2019-09: Staff initiated request to amend Section 403 of the zoning ordinance to revise the
intent of the Planned Unit Development option by allowing limited retail options.
SUMMARY
1. The PUD option in single-family residential districts currently does not specify whether limited
business options are allowed or not. Staff believes that limited business options, such as those
allowed in B-1 districts, would be beneficial to residential PUDs.
CURRENT LANGUAGE
SECTION 403: PLANNED UNIT DEVELOPMENT OPTION [amended 12/97]
Planned unit developments (PUDs) may be allowed by the Planning Commission under the procedural
guidelines of Section 2101. The intent of Planned Unit Developments in the single family residential district
is to allow for flexibility in the design of housing developments, including but not limited to condominium
developments and cluster subdivisions, to allow for the preservation of open space; allow for economies in
the provision of utilities and public services; provide recreational opportunities; and protect important natural
features from the adverse impacts of development.
PROPOSED LANGUAGE (additions in bold)
Planned unit developments (PUDs) may be allowed by the Planning Commission under the procedural
guidelines of Section 2101. The intent of Planned Unit Developments in the single family residential district
is to allow for flexibility in the design of housing developments, including but not limited to condominium
developments and cluster subdivisions, to allow for the preservation of open space; allow for economies in
the provision of utilities and public services; allow for limited business options that serve the
neighborhood; provide recreational opportunities; and protect important natural features from the adverse
impacts of development.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 403 of the zoning ordinance to revise the intent of the Planned Unit
Development option by allowing limited retail options.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
NEW LANGUAGE
(Additions in bold)
Planned unit developments (PUDs) may be allowed by the Planning Commission under the procedural
guidelines of Section 2101. The intent of Planned Unit Developments in the single family residential district
is to allow for flexibility in the design of housing developments, including but not limited to condominium
developments and cluster subdivisions, to allow for the preservation of open space; allow for economies in
the provision of utilities and public services; allow for limited business options that serve the
neighborhood; provide recreational opportunities; and protect important natural features from the adverse
impacts of development.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
14th day of May, 2019, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City of Muskegon. I further certify that the
meeting was conducted and public notice was given pursuant to and in full compliance with the
Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept
and will be or have been made available as required thereby.
DATED: ___________________, 2019. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on May 14, 2019, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 403 of the zoning ordinance to revise the intent of the Planned Unit
Development option by allowing limited retail options
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 ____________________, 2019. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
5
Commission Meeting Date: May 14, 2019
Date: May 9, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Zoning Ordinance Amendment – Landscaping Requirements
2nd Reading
SUMMARY OF REQUEST:
Staff initiated request to amend Section 2331 of the zoning ordinance to allow
applicants to donate trees to the City’s nursery rather than to replace trees on site
during development.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the zoning ordinance amendment
COMMITTEE RECOMMENDATION:
The Planning Commission unanimously recommended approval of the request 8-0 at
their April 11 meeting
Hearing, Case 2019-10: Staff initiated request to amend Section 2331 of the zoning ordinance to allow
applicants to donate trees to the City’s nursery rather than to replace trees on site during development.
SUMMARY
1. The ordinance requires that certain live trees on development sites must remain or be replanted elsewhere on site.
However, that is not always possible due to limited space. Staff is suggesting that those trees may be donated to the
City’s nursery instead.
NEW LANGUAGE (additions in bold)
Preservation Required: All existing live trees in excess of twelve (12) inches in diameter and at four and one
half (4 ½) feet above the ground shall be preserved as much as practical. Those that must be removed and
cannot be replaced on site may donate those trees to the City’s nursery to be used elsewhere around the
City.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 2331 of the zoning ordinance to allow applicants to donate trees to the City’s
nursery rather than to replace trees on site during development.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
NEW LANGUAGE
(Additions in bold)
Preservation Required: All existing live trees in excess of twelve (12) inches in diameter and at four and one
half (4 ½) feet above the ground shall be preserved as much as practical. Those that must be removed and
cannot be replaced on site may donate those trees to the City’s nursery to be used elsewhere around the
City.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
7th day of May, 2019, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City of Muskegon. I further certify that the
meeting was conducted and public notice was given pursuant to and in full compliance with the
Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept
and will be or have been made available as required thereby.
DATED: ___________________, 2019. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on May 7, 2019, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2331 of the zoning ordinance to allow applicants to donate trees to
the City’s nursery rather than to replace trees on site during development.
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 ____________________, 2019. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
5
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 7, 2019
RE: Marina Management Agreement
SUMMARY OF REQUEST:
Staff has been working with the developer of Hartshorn Marina Village to create a plan to co-manage
the marina and the condominium association. The two assets will have many of the same users and
will share many of the same amenities. Consistency in management is important to both
organizations. Staff is recommending approval of the attached marina management agreement. It is
expected the agreement will be cost-neutral compared to the city’s previous years’ management
expenses.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager to enter into the attached agreement.
COMMITTEE RECOMMENDATION:
MARINA MANAGEMENT AGREEMENT
THIS AGREEMENT is made as of this 1st day of May, 2019 by and between The City of Muskegon (“Owner”) and
__________________________, a Michigan corporation (“Manager”).
W I T N E S S E T H:
In consideration of the mutual covenants herein contained, Owner and Manager agree as follows:
SECTION ONE: BASIC TERMS
(a) Owner Address: 933 Terrace Street
Muskegon, MI 49440
(b) Owner’s Fed. I.D. No.:
(c) Manager’s Address:
(d) Premises: Hartshorn Marina
920 W. Western Avenue
Muskegon, MI 49441
(e) Original Term: 5 Years
Starts: March 1, 2019
Ends: February 28, 2025
(f) Management Fee: One-time Startup Fee: $6,500.00
(Due upon Agreement execution)
Management Base Fee: $3,700 per month
Incentive Fée : Manager to be paid additional fee
based on revenue over the Base
Year actual as follows :
Revenue Fee
Up to $25,000 25%
$25,001 + 30%
Base Gross
7/1/19 – 6/30/20 $340,000
7/1/20 – 6/30/21 $350,000
7/1/21 – 6/30/22 $360,000
7/1/22 – 6/30/23 $370,000
7/1/23 – 6/30/24 $380,000
The annual base will increase by
$50,000 beginning in the first full
year after completion of a pool and
new clubhouse.
The annual base will increase by
$50,000 beginning in the first full
year after completion of a new main
pier.
(g) Operating Budget Due Date: 60 days prior to start of year
(h) Management Reports provided: 15th of each month
(I) Fiscal Year July to June
(j) Expenditure Limit: $5,000
Further defined in section 3(d)
Repair and Maintenance
(k) Reimbursable On-Site Employees:
Costs of on-site property manager (“Manager”) and/or on-site dockhands will be reimbursed by Owner, with
the full cost of such included in the annual Operating Budget to be approved by Owner. Any and all such
personnel so employed will be the employee of Manager and not of Owner. Manager shall fully comply with
all applicable laws and regulations pertaining to such employees including, effecting and maintaining
worker’s compensation insurance and other required insurances, withholding and payment of employment
taxes, paying wages, and unemployment compensation, filing required state and federal tax reports, paying
wages and monitoring hours of labor and such other matters as the parties shall specifically agree to in
writing (collectively, the “Employee Related Expenses”). Manager represents that it is and will continue to
be an equal-opportunity employer and must advertise as such. Notwithstanding the foregoing, Owner
hereby acknowledges and agrees that Manager shall submit for prompt payment by Owner to Manager all
such Employee Related Expenses. Manager is the Employer and is responsible to comply with any and all
employment laws.
(l) Advance Deposit Requirement: $10,000.00
Upon start date of this Agreement, Owner shall deposit sufficient funds, with Manager, to cover one month’s
payment of Reimbursable Employee wages, all other Employee Related Expenses and Management Fees.
Such account shall be established and maintained by Manager for the timely payment of all Employee
Related Expenses. Advanced Deposited funds will be reimbursed to Owner upon dissolution of said
Agreement and settlement of all payments due to manager including but not limited to fees, reimbursements
and other payables.
(m) Minimum Funds Balance: $5,000.00
Construction Management/General Contracting Services: Manager will provide general oversight and
assistance on minor construction activities without additional charge other than as specified above for
employee time. In the event Manager acts in the capacity of a construction manager at Owner’s request,
Manager’s fee structure for projects wherein total construction costs exceed Twenty-Five Thousand Dollars
($25,000.00) is Eight percent (8.0%) of such costs, minus architectural and engineering fees.
(n) Operating Expense Reimbursement to Manager:
Exclusions from Labor Expense: Owner will not be charged for the labor expense of the executives,
property managers, accountants or clerical personnel in Manager’s Corporate Office as such expense is
included in the Management Fee. Notwithstanding the foregoing, Manager reserves the right to charge
such labor expense in the event the services required to be rendered on behalf of Owner are deemed
extraordinary. Extraordinary expenses could include those that require additional labor and expertise over
what is required for the normal day to day operation of the Premises. In such event, Manager will discuss
the extraordinary nature of such service and an appropriate hourly rate with Owner for such service.
Manager shall obtain Owner’s prior approval before performing such services. In the event Owner instructs
Manager not to render such service or Owner fails or refuses to respond to Manager’s request for
authorization to perform such services within five (5) business days following Owner or Owner’s authorized
agent’s receipt of Manager’s notification of such extraordinary services, Owner shall be deemed to have
declined authorization to Manager to perform such extraordinary services. Accordingly, Manager shall
thereby be released from any and all claims, actions, proceedings, liabilities, damages, costs and fees
including, without limitation, reasonable attorneys’ fees and costs, arising directly or indirectly, in connection
with Manager’s failure or inability to perform such extraordinary services. In the event Manager notifies
Owner of a condition(s) or circumstance(s) occurring upon the Premises which, in Manager’s sole
discretion, constitutes an emergency, Manager shall promptly notify Owner, or Owner’s authorized agent,
of such emergency and, unless otherwise directed by Owner or Owner’s authorized agent, shall render
such service as Manager, in Manager’s sole discretion, deems reasonable and necessary to address such
emergency, and Owner hereby agrees to and shall compensate Manager for such services at Manager’s
emergency rates and reimburse Manager for all other sums, if any, which Manager advances on behalf of
Owner in the course of addressing such emergency.
SECTION TWO: AGENCY
Owner and Manager hereby acknowledge and agree that Manager is an independent contractor and shall act as
Owner’s exclusive agent to manage, operate, maintain and service the Premises as Manager determines, in
Manager’s sole discretion, and as further agreed between the parties in this Agreement. Owner agrees to promptly
furnish Manager with copies of all documents and records to assist Manager in the management of the Premises
including, but not limited to, leases, plans, vendor agreements and correspondence pertaining thereto, account
balances, name, insurance policies and endorsements thereto and organizational documents including, without
limitation, Articles and amendments thereto file stamped by the state of organization to allow bank account to be
opened in Owner name, and verification of the federal employer identification number as requested by Manager.
The foregoing organizational documents are provided to Manager for informational purposes only, and Manager is
not responsible to interpret, apply or enforce such organizational documents in the execution of Manager’s
responsibilities under this Agreement. Exclusivity of appointment shall not apply to construction management or
general contractor activities as Owner reserves the right to contract with third parties for such services. Owner
hereby agrees to and shall release Manager from any and all claim, actions, proceedings, damages, liabilities,
losses, cost and fees including, without limitation, reasonable attorneys’ fees and costs, arising directly or indirectly,
by reason of the acts or omissions of the third party construction manager and/or general contractor retained by
Owner with respect to the Premises, except to the extent such claim, actions, proceedings, damages, liabilities,
losses, cost and fees arise from negligence of the Manager.
SECTION THREE: DUTIES, AUTHORITY AND POWER OF MANAGER
During the term of this Agreement, Manager shall perform the following management functions in connection with
the Premises. Owner hereby grants to Manager the following authority and powers, concurrent with Owner:
(a) Standards
Manager shall exercise reasonable care and diligence in the management of the Premises and in all acts
and obligations of Manager pursuant to this Agreement. Manager agrees to furnish the services of its
organization for the operation, servicing and management of the Premises as further set forth in this
Agreement or otherwise agreed, in writing, between the parties.
(b) Lease Administration
1. Manager shall assist the Owner in Developing, implementing and executing a slip rental agreement
and administration of slip rentals, which shall be approved by Owner.
2. The Manager shall be responsible for the administration of all leases and rental agreements affecting
the Premises. Manager shall, in connection with such lease administration: monitor tenant and renter
compliance and enforce the Owner’s rights under all such leases; upon default by any tenant and after
consultation with Owner, terminate tenancies and sign and serve in the name of the Owner eviction
proceedings against defaulting tenants and to recover possession of the Premises, and recover rents
and other sums due; or when expedient, settle, compromise and release such disputes, actions or
suits or reinstate such tenancies; provide Owner with periodic forecasts of scheduled or anticipated
vacancies; advise Owner of suggested lease rental rates and terms and/or preferred tenant use mix
for vacant space.
(c) Operating Statements
Manager shall render accounting of income and expenses pertaining to the operation of the Premises to
Owner on a monthly basis as set forth in Section 1(h), above. Manager shall furnish reports of all
transactions occurring from the first day of the prior month to the last day of the prior month. These reports
shall show all matters pertaining to the management, operation, finances and maintenance of the Property
during the month. In addition, the reports shall compare the actual receipts and disbursement to the
budgeted receipts and disbursements. Owner shall have access to Manager’s books, records and receipts
at Manager’s office during normal business hours.
(d) Operating Budget
Manager shall submit to Owner for Owner’s approval, on or before the dates set forth in Section 1(g), above,
a budget of proposed expenditures and estimated income for the upcoming fiscal year. Thereafter,
Manager shall submit to Owner for Owner’s approval, at least sixty (60) days prior to the commencement
of each succeeding fiscal year of Owner during the term of this Agreement, a similar budget for the Premises
for the coming fiscal year. The budget when approved by Owner shall be used by Manager for the actual
operation of the Premises and shall be subject to revisions as Owner and Manager may mutually agree. If
Owner does not approve the budget prior to the start of the new fiscal year, Manager has Owner’s
permission to utilize Manager’s proposed Operating Budget as a guide for operations of the Premises until
approved by Owner.
(e) Collection of Fees, Deposits and/or Other Income
Manager shall charge, bill and collect all fees, rents and charges due or to become due under all facilities
event leases and rental agreements upon the rates and charges schedules and policies to be approved
and established from time to time by the Owner. Manager shall deposit, within two business days, all
receipts collected for Owner in a separate insured project saving account(s) and or checking account(s) in
a responsible depository institution, separate from Manager’s other accounts. In addition, Manager shall
collect all security deposits from renters for deposit in the separate savings account(s) and or checking
account(s) in the same manner. Interest, if any, from such savings account shall accrue to the benefit of
Owner except to the extent required to be paid to any renter as a return on a security deposit.
Owner shall have the obligation to and shall, at all times, assure that the Minimum Funds Balance required
under this Agreement for the purposes of assuring the timely payment of all expenses and other obligations
of Owner hereunder and to avoid the imposition of penalties. Manager will work with an Owner approved
collection agency for accounts that exceed 30 days past due.
Notwithstanding Owner’s obligations set forth in the preceding paragraph, Manager shall notify Owner in
the event any of the balances in the deposit accounts maintained by the Manager on behalf of Owner shall
decline below the Minimum Funds Balance and, in that event, Owner shall immediately restore such
balances to at least the Minimum Funds Balance, except as otherwise required by Manager pursuant to
this Agreement. Manager shall not be required to make any expenditure for Owner if Owner’s account does
not have sufficient funds.
(e) Operating Expenses
Manager shall, at Owner’s sole cost and expense, make payments for utility charges, water charges,
premiums for insurance and other charges resulting from the operation and management of the Premises.
(f) City Purchasing Policy
Manager shall follow all established purchasing policies, as adopted by the Muskegon City Commission.
(g) Repairs and Maintenance
Manager shall, at Owner’s sole cost and expense, make, or cause to be made, and supervise repairs,
maintenance, replacements, alterations, and decorating of the Premises, and purchase supplies and pays
all bills therefore. All fees with respect to Manager’s supervision under the preceding sentence shall
comport with the fee schedule set forth under Section 1(f), of this Agreement. Manager agrees to secure
the prior approval of Owner for all expenditures to be paid by Owner in excess of the amount set forth in
Section 1(j), above, for any one item, except recurring operating charges or other expenses approved by
Owner in the Operating Budget for the Premises submitted by Manager, and emergency repairs. In the
case of an emergency, Manager shall immediately attempt to mitigate any further damage and stabilize the
situation before seeking additional expenditure approval.
(h) Payment of Management Expenses
Manager shall pay all expenses incurred by Manager in rendering Manager’s services under this Agreement
and for which Owner is responsible pursuant to this Agreement by affecting such transfers of managed
funds as necessary to issue proper payment to Manager and the various other payees. Notwithstanding
Owner’s obligation to assure the maintenance of the Minimum Funds Balance, Owner shall always maintain
adequate balances, for the purpose of timely paying all current obligations of Owner pursuant to this
Agreement. Subject to Manager’s election to advance funds pursuant to Section 11 of this Agreement, in
the event Owner fails to establish such adequate available balances in the deposit accounts managed by
Manager within seven (7), including non-business, days following notice from Manager to Owner or Owner’s
authorized agent, Manager shall be entitled to, and Owner hereby acknowledges that Manager may, at
Manager’s option, either withdraw from further management obligations under this Agreement until Owner
deposits the requested balances or terminate this Agreement upon seven (7), including non-business, days
advance written notice to Owner, each without incurring liability to Owner. Notwithstanding the foregoing,
Owner shall remain obligated to and shall timely pay the Management Fee for all periods through the
termination of this Agreement. Similarly, Owner shall remain obligated to and shall timely pay all other
expenses of or associated with management of the Premises.
(i) Independent Contractors
Manager shall hire, discharge and supervise all additional labor contractors required for the operation and
maintenance of the Premises, it being agreed that all such additional contractors shall be deemed
independent contractors. Manager may perform any of its duties through the employment of independent
contractors.
(j) Contract for Services
Manager shall, at Owner’s sole cost and expense, establish accounts and enter into contracts in the name
of Owner for electricity, gas, fuel, water, telephone, rubbish removal, janitorial, security and other services
Manager may deem advisable upon written approval of owner.
(k) Additional Services
Manager may, at its discretion, perform any other services beyond the scope of ordinary management
services of this Agreement as requested in writing by Owner (including, but not limited to, supervision of
major capital repairs, replacements or additions or restoration of damage due to fire or other casualty) for
such reasonable additional compensation and upon such terms and conditions as the parties may mutually
agree.
(l) Signage
Manager shall have the right to display appropriate company signage in location or locations at the facility
approved in advance by Owner.
(m) Collections
The Manager shall collect and, as necessary, receipt all monthly or other assessments and other charges
due to the Owner for operation of the Premises and all rental or other payments from tenants and
concessionaires, if any, provided that the Manager shall have no responsibility for collection of delinquent
assessments (accounts over 30 days past due). However, the Manager shall refer the delinquent account
to the Owner or an approved legal firm for further action. Manager shall cooperate with Owner’s attorneys
in collection actions, including but not limited to, preparing necessary financial records and information.
(n) Owner
The Manager shall be custodian of the records related to the operation and management of the Premises
but shall not be required to keep the official corporate records of the Owner. The Owner will identify a
Designated Individual who will be authorized to direct the Manager on any matter relating to the
management of the Premises. The Manager is directed not to accept directions or instructions with regard
to the management of the Premises from anyone other than such designated individual. In the absence of
a Designated Individual by the Owner, the Designated Individual shall be the person signing this agreement
representing Owner.
SECTION FOUR: OWNER’S DUTIES
The Owner agrees that in its sole discretion, it will exercise reasonable efforts to enable the Manager to operate
and maintain the Premises in first class condition, including, but not limited to, providing sufficient capital and/or
financing for the Premises, approving operating budgets that provide sufficient funds to adequately maintain the
Premises and taking all commercially reasonable steps necessary to make reasonable use of the premises and its
facilities in the manner of its intended design and usage.
SECTION FIVE: INDEMNIFICATION
(a) Manager
Manager hereby agrees to and shall indemnify and hold Owner harmless from and against any and all
claims, actions, proceedings, damages, liabilities, costs, expenses and fees including, without limitation,
reasonable attorneys’ fees and costs, arising directly or indirectly, from any of the following: (i) the willful
misconduct or negligent acts or omissions of Manager or its employees or agents, except as otherwise set
forth in this Agreement; (ii) the breach of any representation or warranty of the Manager given in or pursuant
to this Agreement; or (iii) the breach or default in the performance by the Manager of any of the covenants,
obligations or agreements in or pursuant to this Agreement, except as otherwise specifically set forth in this
Agreement. In the event of any claim which is covered by an insurance policy maintained for the benefit of
Owner or Manager, Manager hereby specifically waives, for itself and for all its insurers, all claims and
rights of subrogation, which it may have against Owner, its employees and agents. This indemnity does not
apply to any acts of the Owner, its directors, officers or employees involving willful misconduct, fraud or bad
faith.
(b) Mutual Cooperation
Should any claims, demands, suits or other legal proceedings be made or instituted by any person against
Owner which arise out of any of the matters relating to this Agreement, Manager shall give Owner all
pertinent information and reasonable cooperation in the defense or to the disposition thereof. If Manager
is also named in such action, Owner shall also give Manager pertinent information and reasonable
cooperation in the defense or other disposition of the aforementioned action. The obligations contained in
this paragraph shall be in addition to, and not in limitation of, any other obligations, contained in this
Agreement
SECTION SIX: INSURANCE
The Manager will purchase and maintain, the following types and amounts of insurance:
1. Workers' Compensation Insurance– For all employees of the Manager, employed at the facility or in any way
required to fulfill or connected to the fulfillment of the terms of this Agreement. The insurance required by this
provision will comply fully with the Workers' Compensation Law and include Employers' Liability Insurance with
limits of not less than $500,000 per occurrence. Any associated or subsidiary company involved in the service
must be named in the Workers' Compensation coverage. No class of employee will be excluded from the
Workers' Compensation coverage. Cost of this coverage will be included in the employee costs.
2. Liability Insurance - Commercial General Liability Insurance, including coverage for operations, independent
contractors, products-completed operations, broad form property damage, and personal injury on an
"occurrence" basis insuring the Manager and any other interests, including but not limited to any associated or
subsidiary companies involved in the performance of the Agreement. Before beginning work, a certificate issued
by a licensed insurance company showing General liability Insurance and Automobile Liability providing
coverage at least equivalent to a combined single limit for bodily injury and property damage of $1,000,000.00
and Products/Completed Operations Aggregate limit of $2,000,000.00. Automobile Liability Insurance which will
insure claims for damages because of bodily injury or death of any person or property damage arising out of the
ownership, maintenance or use of any motor vehicle used by the Manager at the Premises or in any way
connected with the work which is the subject of this Agreement. The limit of liability will be a combined single
limit for bodily injury and property damage of no less than $1,000,000 per occurrence. The cost of this coverage
is with Manager and not charged to the facility.
3. Employee Dishonesty Insurance - The Manager will obtain and maintain an Employee Dishonesty Insurance
Policy in the principle amount of not less than $1,000,000. The cost of this coverage is with Manager and not
charged to the facility.
4. Marina Operators Legal Liability and Protection and Indemnity Insurance: coverage in the amount of not less
than $2,000,000 insuring the Owner and Manager. The cost of this coverage will be considered an expense of
the marina.
5. Owner is responsible for property damage insurance for all property including structures and contents,
underground storage tanks and resulting liability, docks and systems.
6. In the event of any claim which is covered by an insurance policy maintained for the benefit of Owner and
Manager, Owner hereby specifically waives, for itself and for all its insurers, all claims and rights of subrogation,
which it may have against Manager, its employees and agents.
Policies shall be written with an insurance carrier with an AM Best rating of “A-“ or better. Policies noted above
that are obtained by Owner shall list Manager as Additional Insured under the policies and on a “Primary &
Noncontributory” basis with respect to liability arising out of the ongoing operations & completed work per ISO
CG2010 07/04 & CG2037 7/04 (or equivalent). This insurance shall be primary over all other available
insurance. Insurance must be maintained and certificates provided on workers’ comp, General Liability and
Automobile liability as long as the Manager is performing services on behalf of the Owner.
SECTION SEVEN: COMPENSATION
Owner hereby agrees to and shall pay to Manager, in consideration of Manager’s services to be rendered under
this Agreement, the Management Fee as and when the same is due. The Base Management Fee shall be made
in monthly installments from the operating account of the Premises under the management of Manager as defined
in 1 (f). The Incentive Fee defined in Section 1(f) shall be paid within 60 days after the end of the year and shall be
equal to the gross revenue for the current year, minus the gross revenue for the Base Year and the total (if a positive
number) multiplied by 25% up to $25,000 and 30% above $25,000.
SECTION EIGHT: TERM
The term of this Agreement shall be as set forth in Section 1(e), above, unless otherwise terminated as provided in
this Agreement. Either party shall have the right to terminate this Agreement upon sixty (60) calendar days prior
written notice to the other at which time Manager and Owner shall fully and completely perform their remaining
obligations under this Agreement including, without limitation, the payment of the Management Fee and all other
fees, expenses and charges due to Manager and third parties through the date of termination of the Agreement
pursuant to such notice, and the parties shall thereafter have no further obligations to each other.
SECTION NINE: TERMINATION
(a) This Agreement may be terminated:
(1) By either party as provided in Section 8, above; or
(2) By either party without prior notice, in the event a petition in bankruptcy is filed by or against the
other party, and such petition is not dismissed within thirty (30) days of filing or either party makes
an assignment for the benefit of creditors, or invokes any insolvency act; or
(3) By either party upon material breach of any term or condition of this Agreement by the other party
and failure to cure such breach within thirty (30) days after written notice of such breach has been
given to the breaching party.
(b) In the event of termination of this Agreement, Manager shall at no cost to Owner promptly deliver to Owner:
(1) Copies of all books, records, contracts, leases, receipts for deposits, unpaid bills, and deposit
accounts records pertaining to the management of the Premises;
(2) A final accounting, reflecting the balance of income and expenses on the Property as of the date
of termination, delivered within 30 days after such termination; and
(3) Any balance of monies of Owner or tenant security deposits, or both, held by Manager with respect
to the Property shall be delivered to Owner after the payment of the Management Fee and all other
fees, expenses and charges which are the responsibility of Owner to pay pursuant to this
Agreement, except such security deposits shall not be offset to the extent such offset is prohibited
by applicable law.
(c) In the event of termination of this Agreement, Owner will deposit a sum equal to the average of one-months
operating expenses in the property’s operating account to ensure all retroactively billed expenses are satisfied
by billing due dates, expediting account closeout.
(d) Upon termination, Agent shall be paid by Owner post-termination Management Fees to assist in providing
consulting services related to the operation and management of the Premises and assisting a new operator
during the initial ninety (90) day transition period. The post-termination Management fees will be equal to a
full month’s Management Fee for the first thirty (30) days, one-half (1/2) Management Fee for the
subsequent thirty (30) days.
SECTION TEN: CONFLICTS OF INTEREST
Manager represents to Owner that Manager and its officers, directors, shareholders and affiliates are active and
will continue to be active in developing, marketing, managing and leasing, marinas, office, commercial and industrial
facilities in the same market or region as the Premises and Owner agrees that such activities do not constitute a
conflict of interest hereunder or otherwise constitute a breach of Manager’s duties hereunder.
SECTION ELEVEN: WORKING CAPITAL AND ADVANCES
Upon commencement of the term of this Agreement, Owner shall deposit with Manager, to be held in the project
savings account referenced under Section 3(e), above, an initial working capital deposit in the amount set forth in
Section 1(m), above. Such working capital fund may be used by Manager to pay operating expenses for the
Premises until sufficient revenues are generated by the Premises to pay the same. The amount retained in this
account, as a working capital fund, shall be adjusted from time to time as Manager and Owner approve and the
Operating Budget shall be revised accordingly. If for any reason there are not sufficient cash receipts from the
Premises and/or working capital reserves to pay any and all expenses of operating and maintaining the Premises
as outlined herein, Owner shall promptly deposit with Manager sufficient funds to cover such shortfall, within ten
(10) days after receipt of written request from Manager. If Owner fails to make any such advance, or otherwise fails
to pay any expense required to be paid by Owner hereunder, or if any emergency makes it impractical for Manager
to give the Owner such prior notice, Manager shall have the right, but not the obligation and without waiving or
releasing the Owner from any of the Owner’s obligations hereunder, to advance sufficient funds to pay such
expenses on behalf of Owner. All sums so paid by the Manager and all necessary incidental costs shall be
immediately due and owing from Owner to Manager and shall accrue interest until paid at the rate of two percent
(2%) above the prime rate declared under the “Money Rates” table published from time to time by The Wall Street
Journal, Midwest Edition. Manager shall have the right to apply all income from the Premises (after payment of all
operating and debt service expenses of the Premises and payment of the Manager’s compensation due under
Paragraph 7, above) toward repayment of any advance made by Manager hereunder.
SECTION TWELVE: ADDITIONAL PROVISIONS
(a) Mediation
All claims, disputes or any other matters in question between the parties arising out of or relating to this
Agreement or breach thereof shall be subject to mediation as a condition precedent to the institution of any
legal proceedings by either party. The parties shall attempt to resolve claims, disputes and other matters in
question between them through mediation. A request for mediation shall be filed in writing with the other
Party to this agreement. The mutually acceptable mediator selected by the Parties shall set the mediation
rules and procedures, including discovery, if necessary. The parties shall share equally in all mediation fees
and expenses. Any agreement reached by the Parties through mediation shall have the same force and
effect as settlements in any court having jurisdiction thereof.
(b) Non-Solicitation
Owner hereby acknowledges that Manager has invested significant time and expense in selecting,
developing, educating and supporting Manager’s employees and contractors (“Employees”) and integrating
Manager’s Employees into Manager’s business, operations and affairs. Owner further hereby
acknowledges that such Employees are material to the operation and success of the business, operations
and affairs of Manager. Therefore, the parties agree that Manager has a legitimate and protectable interest
in maintaining a continuous employment relationship with its Employees. In view of the foregoing, Owner
hereby warrants, represents and covenants to Manager that, in no event, will Owner either solicit, or assist
any person or entity to solicit, any Employee for the purpose of terminating or curtailing such Employee’s
relationship with Manager or cause any event(s) to occur which terminates or curtails such Employee’s
relationship with Manager.
Owner and Manager agree that if Manager hires existing staff at the Premises, that this Non-Solicitation
provision will not apply to those employees until the end of the 24th month of the term.
Owner is aware that irreparable injury may result to Manager and its business in the event that Owner
breaches or violates any of the restrictions imposed under this Section for which money damages may not
provide adequate relief. Owner therefore agrees that should it, or any person or entity on its behalf, engage
in any act in violation of the provisions of this Section, then if the violation continues after a 10 day notice
to Owner (i) Manager shall be entitled to, in addition to all other remedies and damages as may be available
at law, in equity or by statute, injunctive and other forms of equitable relief preventing such violation and/or
breach and to recover from Owners Manager’s costs including without limitations, reasonable attorneys’
fees and costs incurred in connection with enforcing the provisions of this Section.
(c) Notices
Any written notice required or permitted to be given by either party to the other pursuant to this Agreement
shall be delivered in person or sent by either United States certified mail, return receipt requested, postage
prepaid or by Federal Express or other nationally recognized delivery service. Notices and demands to
Manager shall be addressed to the address set forth at Section 1(c) hereof or to such other place as
Manager may, from time to time, designate in a written notice to Owner. Notices and demands to Owner
shall be addressed to the address set forth at Section 1(a) hereof or to such other place as Owner may,
from time to time, designate in a written notice to Manager.
(d) Non-assignable
This Agreement and any rights hereunder may not be assigned without the prior written consent of the
other party. . Any attempt to assign this Agreement or any rights herein without the prior written consent
of the other party shall be void.
(e) Binding Provisions
Subject to the provisions of Section 11, above, the covenants and agreements contained herein shall be
binding upon, and inure to the benefit of the heirs, executors, administrators, personal representatives,
successors and assigns of the respective parties hereto.
(f) Applicable Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin.
(g) Severability
Each provision of this Agreement shall be considered severable and if for any reason any provision or
provisions hereof are determined to be invalid and contrary to any existing or future law, such invalidity
shall not impair the operation of or affect those portions of this Agreement which are valid.
(h) Headings
Section headings are for descriptive purposes only and shall not control or alter the meaning of this
Agreement as set forth in the text.
(i) Interpretation
When the context in which words are used in this Agreement indicates that such is the intent, words in the
singular shall include the plural and the masculine shall include the feminine and neuter and vice versa.
The pronouns used in this Agreement referring to Manager shall be understood and construed to apply
whether Manager is an individual, partnership, corporation or an individual or individuals doing business
under a firm or trade name.
(j) Entire Agreement
This Agreement represents the entire agreement of the parties with respect to the subject matter hereof.
Except as otherwise herein provided, any and all amendments, additions or deletions to this Agreement
shall be null and void unless approved in writing by both parties.
SECTION THIRTEEN: ENGAGEMENT
Manager hereby reserves the right to postpone any and all management and operating work until applicable parties
named on Signature Page have signed and dated this Agreement in full.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and sealed as of the day,
month and year first above written.
OWNER: _______________________________
By:
Its:
Dated:
MANAGER: FOUNDERS 3 MANAGEMENT COMPANY D/B/A F3 MARINA
By:
John Matheson, President
Its: President
Dated:
EXHIBIT D
1. Property Management and Operations Responsibilities
(a) Facilities Property Management
Manager shall be responsible for the operation, care, custody, and control, including all daily and routine
maintenance and repairs of all personal property and all real property and fixtures thereon within the
Premises, as specified herein including:
(1) All permanent and floating piers, docks, and other mooring facilities, on land or in water.
(2) All buildings, facilities, and structures within the confines of the marina, including but not limited to
the administration building; restroom and shower facilities; and fueling station, pump-out equipment
and dock, future pool, gazebo and clubhouse, along with all fuel storage and fuel systems.
(3) All walkways, driveways, and parking lots and/or buildings, facilities, boat launch, and structures
that Manager is responsible for managing within the defined area noted in Exhibit D.
(4) All electrical, mechanical, plumbing, heating, ventilation and air conditioning equipment in or on the
facilities, including equipment made available to accommodate vessels moored at slips.
Manager shall keep in good repair and maintain all of the facilities and equipment described above in clean
and orderly condition and shall continually assess and offer regular written recommendations to Owner on
how to improve facilities and equipment at the Premises. The Premises and all facilities are at all times
subject to entry by authorized officers, agents, and employees of Owner for purposes of inspection or water
or engineering tests, or for other reasons.
(b) Marina Administration
Manager shall conduct in a businesslike and customer-friendly manner all the administrative aspects of
operation of a first-class marina, including, but not limited to:
(1) Accessibility and friendly attention to slip tenants, their families and guests, and prompt, courteous
responsiveness to their needs and reasonable requests;
(2) Develop and maintain clear and frequent communications with all slip tenants on matters of general
concern and interest;
(3) Operation, including regular updating, of a website that encompasses all facets of the marina
operations and matters of significance to current and prospective renters, including, but not limited
to, verbal and imagery description of marina facilities and the surrounding area, current weather
information, seasonal and transient slip fees, and promotions and other marketing projects;
(4) Safe, efficient, and courteous operation of the fueling and pump-out station in compliance with all
applicable federal, state, and local laws and regulations;
(5) Operation of the fueling/pump-out station shall occur during mutually agreed up-on hours:
(6) Design and operation of retail ship store for consumer requested items to be located in the
Administration Building.
(7) Fuel prices shall be updated on the marina website reflecting any change in pricing.
(8) Establishment and implementation of effective systems for processing, monitoring, and accounting
for slip rental payments of all renters, in accordance with the terms of the applicable slip rental
agreements;
(9) Responsible for the administration of all leases on water and land. In connection with such lease
administration: monitor tenant compliance and enforce Owner rights under all such leases; upon
default by any tenant and after consultation with Owner, terminate tenancies and sign and serve in
the name of Owner to evict tenants and to recover possession of the Premises, and recover rents
and other sums due; when expedient, settle, compromise and release such disputes, actions or
suits or reinstate such tenancies up to $5,000; communicate regularly with the local Police to
enforce all ordinances; provide Owner with periodic forecasts of scheduled or anticipated
vacancies; suggested lease rental rates and terms and/or preferred tenant use for vacant space;
(10) Establishment and implementation of effective financial systems for handling, safeguarding,
accounting for, and regularly transferring to Owner, funds received in the course of operation and
management of the marina, including, but not limited to, slip rentals and deposits; transient slip
fees.
(11) Facilitation of visits by transient boaters; boaters visiting the marina and boaters coming to assess
the marina’s suitability as a permanent mooring location;
(12) Manager shall meet state requirements for dispensing of fuel including proper licenses and
inspections.
(13) Training of staff and use of marine radio including proper communication.
(14) Training of staff for sufficient skills for providing assistance to boaters in docking and line handling.
(15) Training of staff to be familiar with boating language and skills to perform tasks as required.
(16) Hold staff accountable and properly train through weekly meetings by supervisors.
(17) Manager shall maintain the Premises in high level of appearance and condition based upon its age
and use:
(18) Operation of the on-site marina office during mutually agreed upon hours:
(c) Marina Marketing
Manager shall provide marketing of Premises, including but, not limited to the following:
(1) Create and distribute promotional materials to slip tenants and visitors in a manner that targets the
boaters:
(2) Distribution of materials related to rentals for the next season, such as price lists and notices of
long or limited-term promotional offers to slip tenants and visitors, and placement of such materials
in public areas of the marina and, as permitted, in other locations where they can reach the boating
public;
(3) Distribution of slip rental and deposit agreements for rentals for the next season, to slip tenants,
visitors, and other interested persons; and receipt and processing of applications for slip rentals,
including acceptance of slip deposits;
(4) Providing internet access to appropriate documents, materials, and information described in the
foregoing items through posting on the marina’s website and/or providing links to such items;
(5) Development and management of the official marina website;
(6) Being available to interested persons, throughout the year, to provide information about slip rentals,
etc.;
(7) Utilization of social media and other electronic marketing;
(8) Development of electronic or print marketing in publications as budget permits:
2. Standards of Service
(a) Manager agrees to operate and maintain Premises as a first-class facility, providing services generally
expected of first-class marinas for the region.
(b) Manager shall, subject to annual budget limitations, provide sufficient and competent employees to
adequately manage, maintain and operate the marina facilities and equipment and to meet the ongoing
needs of the customers served by the marina.
(c) Said staff shall be competent and able to understand buildings and grounds maintenance and up-keep, as
well as deal effectively and courteously with the boating and general public in a recreational setting with an
attention to detail, and to adequately operate the marina at all times, including the ability to respond in case
of emergency after normal working hours. Manager shall further provide regular and adequate training to
said staff so that they are able to perform maintenance on the marina facilities and equipment in a quality
workmanlike manner.
(d) Train in fueling and safety procedures for fuel dock
(e) Perform weekly meetings with staff to discuss goals/performance
(f) It is understood that Managers seasonal employees may be used for duties by Owner at other locations
outside of the marina when demand for staffing at the marina allows for use of such employees as mutually
agreed upon between Manager and Owner.
(g) Manager shall enforce current rules and city ordinances pertaining to the marina. Any additional rules
proposed by Manager shall be approved in writing by Owner prior to their posting. Said approval by Owner
shall not be unreasonably withheld.
(h) The Premises shall not be used for any illegal purposes, or in violation of any valid regulation of any
governmental body, nor in any manner to create any nuisance or trespass, nor in any manner which may
invalidate the insurance coverage of the premises or increase the rate of insurance coverage on the
premises. All activities must receive written approval by Owner.
(i) Manager shall operate the premises as a public marina, open and available to all persons regardless of
race, color, creed, national origin, or physical handicap, and in compliance with all applicable federal, state
and local anti-discrimination laws.
(j) Manager shall not allow any boater to occupy a slip without payment in full for the space at the pre-
authorized rental fee amount, without prior written authorization from Owner.
3. Slip Rental Fees and Other Fees and Charges
(a) Manager shall recommend fee structure and charge slip rental fees, transient fees, slip rental deposit fees,
and other fees and charges for use of the marina facilities as established by Owner and set out in the annual
Operating Budget or otherwise pre-authorized. Manager shall have the right to offer discounted fees,
seasonal rates, and special group rates, only with the expressed written approval of Owner.
(b) Manager may charge such lawful fees and prices as it chooses for any goods (e.g., fuel and items sold at
retail in a convenience store) or for any other services (e.g., concierge services) that it offers to the public,
provided they are pre-approved in writing by Owner.
4. Daily Operation
The marina shall be operated on a seven day a week basis from at least April 1st through at least October 31st.
5. Maintenance, Repairs, Damage, Destruction and Restoration
(a) Manager shall, throughout the term of this property management and operation agreement, keep and
maintain the premises, including, but not limited to all structures and improvements of every kind which
may be a part of the marina facilities, including the heating, ventilating and air conditioning systems;
electrical, plumbing and sewer lines; hot water heaters and water softener systems; fire suppression and
exhaust systems; building security systems; emergency lighting systems and the like.
(b) Manager shall, at Owner’s sole cost and expense, establish accounts and enter into contracts in the name
of Owner, after Owner review and approval, for electricity, gas, fuel, water, steam, telephone, window
cleaning, rubbish removal, janitorial, security and other services Manager may deem advisable and as
provided for in the Operating Budget.
(c) Based on the standard in commercial property management and marina management, Manager shall
perform all indoor and outdoor maintenance functions needed to maintain the marina in a clean and
presentable condition, including but not limited to routine sweeping and washing of walkways and piers,
weed removal above and below the water in the marina, removal of cobwebs on exterior
docks/breakwall/tables/chairs and regular removal of dirt and debris from all exterior faces of the marina
facilities. All wood ramps and dockage shall be inspected daily and cleaned of any water fowl droppings
using a method that will cause the least damage to the wood planks. Manager shall provide, or shall arrange
for, interior housekeeping, including of restrooms and shower facilities. Additional duties include:
(1) Maintain restrooms and trash receptacles after Public Works hours
(2) Ensure all flags are up and inspected
(3) Inspect break wall for bird droppings/garbage/debris
(4) Painting of picnic tables/decks/buildings as time permitted
(d) Owner may and shall without notice inspect and demand that conditions, which are in its opinion
unsatisfactory, be corrected without delay.
(e) Manager agrees to keep clean and in an orderly condition, any and all structures and improvements of the
marina used by Manager. Manager shall not be allowed to store on the marina premises equipment,
vehicles, materials, supplies, etc. not required for carrying out this marina management and operation
agreement without expressed written permission from Owner.
(f) Owner shall be responsible for major repairs as needed in sole discretion of Owner. Major repairs shall be
defined as structural repairs, including, but not limited to such categories as building floors (excluding
carpeting and tile), exterior walls and roofs, heating and air conditioning systems, water and sewer laterals,
and electrical service leading to the building.
(g) Manager shall make no major alterations, additions, major repairs, permanent decorations, restorations, or
improvements of the leased premises without first submitting plans and specifications therefore to Owner
for its written approval.
(h) Manager will be authorized to identify and remediate exigent maintenance issues that arise. Manager will
communicate, either directly or through the Marina Manager, with Owner representative in as
contemporaneous time frame as possible given the circumstances. Manager will procure remedial goods
or services and follow with written notice to Owner and the corresponding reply authorization is a condition
precedent to Manager’s purchases on behalf of Owner.
6. Capital Improvements
Owner has the right to make whatever capital improvements it deems necessary or desirable at any time without
expense to Manager. Before making any such improvements, Owner shall meet with Manager to discuss the effect
of the improvement and making of such improvement upon operation and use of the marina premises. Manager
and Owner shall work together to minimize or limit any adverse effect of any such improvement or the making of
such improvement upon boaters’ enjoyment of the use of the marina.
Owner shall make a good faith effort to minimize or limit any adverse effect of any such improvement or the making
of such improvement upon Manager’s operation of the marina. The parties expressly understand and agree that
Manager shall not be relieved of any of its obligations under this agreement, nor shall Owner be liable to Manager
for any interruptions of, or costs or damages to, Manager’s operation that may result from Owner making any capital
improvements.
7. Easements
This real estate management and operation agreement is subject to all easements of record relating to the marina
premises and the rights of Owner and other public utilities to go upon the marina premises for the purpose of
installing, removing, inspecting or maintaining public utilities.
7. Inspection and Accounting
(a) Owner shall have the right, at any and all reasonable hours, and upon reasonable notice, to have an
accountant inspect and verify the books of Manager with reference to its handling and disposition of slip
rentals, transient fees, and other fees and charges for use of the marina facilities. Owner shall have the
right at Owner’s expense, at any and all reasonable hours, and upon reasonable notice, to have an audit
performed upon Manager’s handling and disposition of slip rentals, transient fees, and other fees and
charges for use of the marina facilities, as Owner may deem necessary or desirable.
(b) Owner shall have the right of access to any and all portions of the marina premises, at any and all hours,
for the purpose of inspecting, analyzing and/or gathering information relating to the premises itself.
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 7, 2019
RE: Arena Management – Arc Arena Management
SUMMARY OF REQUEST:
Staff is seeking approval with Arc Arena Management to undertake the daily management of the LC
Walker Arena. Matt Gongalski and Arc Arena Management have been managing aspects of the arena
for the past year. With the departure of the previous arena manager, staff is recommending that Arc
be appointed to fill that role.
FINANCIAL IMPACT:
First Year: $57,000
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager to enter into the attached agreement with Arc Arena Management to
manage the LC walker Arena.
COMMITTEE RECOMMENDATION:
CITY OF MUSKEGON
OPERATIONS MANAGEMENT CONTRACT
L.C. WALKER ARENA AND CONFERENCE CENTER
This is a Contract, effective April 1, 2019, for the operation, management and promotion
of the L.C. Walker Arena and Conference Center (“Arena”), made between the City of
Muskegon, 933 Terrace Street, Muskegon, Michigan 49440 (“City”) and Arc Arena
Management, 470 West Western Ave, Muskegon, Michigan 49440 (“Manager”).
PURPOSE
This Contract is drawn to afford the management, promotion and maintenance of the
Arena, in accordance and compliance with the requirements of the City, who is the owner of the
Arena.
Therefore, the parties agree as follows:
1. Facilities Covered. City and Manager agree that the “Facilities” covered by this
Contract are as follows:
1.1 The L.C. Walker Arena and Conference Center; and
1.2 The Annex Building; and
1.2 The City owned parking facilities adjacent to Shoreline Drive.
2. Management; Operation; Maintenance; Improvements. Manager agrees to
perform all acts for the management, operation, maintenance and improvements of the Arena,
excluding those assumed by WC Hockey LLC pursuant to its sub-lease with City. Manager
responsibilities include but are not limited to all operation of the building and its systems,
complete maintenance thereof, repairs, cleaning and improvements to the building and the
premises necessary for the efficient, timely and full operation thereof. Manager is responsible
for the use of the facilities for all events and functions, including but not limited to, public
skating, shows, trade shows, exhibitions, conventions, athletic events, public performances for
which the Arena is reasonably suited, banquets, food service, meetings and public gatherings.
The essential functions are more fully described in attached Exhibit D.
City shall reimburse Manager on a timely basis any and all reasonable and necessary costs which
are necessary or related to the complete performance of its responsibilities as the Arena.
3. Annex Conference Center. In the event the Annex Conference Center is sublet
to another entity, the facility shall not be included in the above management, operation,
maintenance, and improvement responsibilities of the Manager.
Page 1 of 10
4. Manager’s Level of Performance.
4.1 Manager performance and assumption of the responsibilities undertaken
by this Contract shall be carried out and performed to the mutual
satisfaction of the City and Manager. Manager shall ensure that all
tenants charge reasonable prices and fees for all paid events and from all
paid users, concessionaries and others, which shall be reviewed and
subject to comment by the City. The City and Manager shall not perform
or omit any act so as to jeopardize the Federal or State tax-exempt status
of the facility.
4.2 Manager commits to use its best efforts to maintain a USHL junior hockey
franchise, or equivalent or better hockey team at the Arena.
4.3 Manager commits to use its best efforts to maintain a professional indoor
football franchise at the arena
4.4 Manager commits to use its best efforts to maintain a professional indoor
soccer franchise at the arena
4.5 Manager commits to use its best efforts to maintain a three year-round
food/drink service establishments at the arena
4.6 Manager commits to use its best efforts to maximize ice rental income at
the arena, with a focus on youth hockey, adult hockey, and figure skating.
4.7 Manager commits to use its best efforts to host financially successful
concerts and other similar spectator events at the arena.
4.8 Manager commits to use its best efforts to host high school and college
graduations at the arena
5. Management Fee.
5.1 For its services, Manager shall be paid a fixed fee of $4,500 per month.
The fee shall be paid by the City on the last Friday of every month.
Effective October 1, 2019, that fee shall increase to $5,000 per month.
5.2 Manager is encouraged to host new events at the arena each year. During
the period of October 1, 2019 and September 30, 2020, if manager is able
to exceed the following individual and collective event counts, his
monthly pay shall be increased by $600:
• 33 ticketed USHL hockey games
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• 6 ticketed arena football events
• 6 ticketed indoor soccer events
• 6 high school and college graduation events
• 15 high school varsity hockey games
• 12 ticketed concerts
• 20 community events
5.3 Upon mutual agreement between the City and Manager, the Manager may
from time-to-time oversee construction projects in excess of $25,000
within the facility. In doing so, manager shall be entitled to a construction
management fee equal to 8% of the construction costs, minus architectural
and engineering costs. All construction projects shall follow the City’s
purchasing policies, as approved by the City Commission.
5.4 Manager shall be entitled to an annual bonus from the City. The annual
bonus shall be determined as follows:
5.4.1 If the Arena’s net profits exceeds $50,000, the City shall pay 15%
of the net profits;
5.4.2 If the Arena’s net profits exceed $175,000, the City shall pay
17.5% of the net profits;
5.4.3 If the Arena’s net profits exceed $275,000, the City shall pay 20%
of the net profits; and
5.4.4 If the Arena’s net profits exceed $500,000, the City shall pay 25%
of the net profits.
Revenues and expenses for determining “net profit” shall be based upon
the period July 1 through June 30. “Net profit” shall include all monies
paid to the City for the L.C. Walker Arena and Conference Center,
including any monies for subleases, sponsorships, and naming rights, less
all expenses incurred by the City for the L.C. Walker Arena and
Conference Center, including any amounts paid to support the professional
sports teams housed at the facility. Expenses shall not include capital
maintenance and capital outlays.
6. Sources of Funds; Gross Revenues. All funds collected by the Manager from
every source, including but not limited to, subleases, ticket sales (after box office account
settlement with unrelated third parties), concession or event rentals or fees, parking fees, refunds,
ticket surcharge, and any other kind of receipt or revenue of any type shall be remitted to the
City.
8 Possession; Termination. The parties agree that possession during the term of
this management Contract remains with the City. Manager shall act as an agent of the City, and
its presence and possession in the Arena is carried entirely on behalf of the City. This Contract
shall not be construed as a lease nor to give Manager any property right whatsoever in the Arena
for any purpose. In the event of lawful termination either before the term of this Contract or at
Page 3 of 10
the end thereof, Manager shall vacate the premises without any notice or necessity of judicial
proceedings.
9. Condition of the Premises and Property. On termination, Manager shall
deliver all the property and the premises to the City in good and useable condition, except for the
effects of ordinary wear and tear. Manager shall be immediately responsible for any repairs
necessary to restore any property, whether real or personal, fixtures or otherwise, to the said
condition.
11. Term. The term of this Contract shall commence on the effective date and shall
terminate on June 30, 2022. Notwithstanding the foregoing, this Contract may be terminated, at
the City’s option, if the USHL junior hockey franchise is moved from the Arena, unless an
equivalent or better hockey franchise is moved into the Arena.
12. Liquor License. City and Manager intend to be co-licensee on the City’s liquor
license, and any renewals thereof. Manager agrees that the license is to remain in the City of
Muskegon as primary licensee and that no interest in the license shall accrue to Manager except
the right under Michigan Liquor Control Laws and Regulations to operate as a co-licensee.
The parties shall cooperate and take such further action as is necessary and desirable to
comply with any requirements of the Liquor Control Commission. Manager shall be responsible
for all actions and responsibilities under the liquor license.
13. Concessionaires and Independent Contractors; Professional Hockey Team.
Manager shall have the right to enter into contracts with concessionaires and independent
contractors providing subsidiary services to the Arena. The gross proceeds of all such contracts
shall be the City’s.
14. Insurance. Manager shall obtain insurances required by the City in at least the
coverage amounts set forth below. In all the following coverages except workers compensation
insurance, the City shall be named as additional insureds or loss payees, and each policy shall
carry the commitment by the company that no cancellation shall be effective against the City
without thirty (30) days written notice to the City:
14.1 Comprehensive general liability insurance. Manager shall obtain a
comprehensive liability insurance policy through a company licensed to
do business in Michigan and acceptable to the City, carrying limits of at
least $500,000, single limit.
14.2 Vehicle liability insurance. Manager shall carry vehicle liability insurance
for each vehicle owned or leased by it, having liability limits of at least
$500,000.
14.3 Workers compensation insurance. Manager shall carry workers
compensation insurance in the amounts required by state law.
Page 4 of 10
15. Insurance Notices. Cancellation Notice: Workers Compensation Insurance,
Commercial General Liability Insurance and Motor Vehicle Insurance, as described above, shall
include an endorsement stating the following: “It is understood and agreed that, in order to be
effective, thirty (30) days’ Advance Written Notice of Cancellation, Non-Renewal, Reduction
and/or Material Change shall be sent to:
City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440
16. Assignment. Manager may not assign this Contract. Any attempted assignment
shall constitute a violation of this Contract and cause immediate termination in the City’s
discretion.
17. General Provisions.
17.1 Corporate Status. Manager warrants that it is a limited liability company
in good standing and is authorized to perform this Contract.
17.2 Equal Employment Opportunity; Discrimination. Manager shall not
discriminate unlawfully against any person in violation of any law or rule
of the City, the County, the State of Michigan or the federal government,
in employment, services or any other respect. Manager shall comply,
including reporting requirements, in each and every way with the City’s
and County’s affirmative action plans or policies, and shall never
discriminate against any person based on race or any other protected status
under the laws of the State or the United States.
17.3 Access. The City shall have reasonable access to the facility at all times to
monitor compliance with this agreement.
18. Defaults. The following events shall constitute defaults by Manager and
constitute cause for immediate termination of this Contract:
18.1 Violation of any of the provisions of this Contract by Manager and failure
to remedy or cure such within thirty (30) days after written notice of such
violation from the City;
18.2 The commission of any act or omission that endangers the Federal or State
tax-exempt status of the Muskegon County Building Authority Bonds;
18.3 The making of an assignment for the benefit of creditors or the filing of a
petition under any section or chapter of the Federal Bankruptcy Code or
under any similar law or statute of the United States or any state thereof;
Page 5 of 10
18.4 Adjudication of Manager as a bankrupt or insolvent in proceedings filed
against Manager under any section or chapter of the Federal Bankruptcy
Code or under any similar law or statute of the United States or any state
thereof without further possibility of appeal or review;
18.5 The appointment of a receiver for all or substantially all of the assets of
Manager and the failure to have such receiver discharged within thirty
(30) days after appointment; and
18.6 The bringing of any legal action against Manager by any creditor resulting
in litigation which, in the opinion of the City, creates a real and substantial
risk of involvement of the Arena that will probably: (1) act to their
financial detriment; or, (2) result in such creditor, or his assigns,
succeeding in or to all or part of the interest of the City.
19. Non-Waiver. Failure to enforce any remedy for a breach or a violation of this
Contract shall not constitute waiver of subsequent breaches or violations.
20. Remedies. In the event the City breaches this Contract in any way, or the
Manager determines that a breach or failure to observe any covenant or condition by the City has
occurred, the sole remedy shall be termination of this Contract. Manager shall not be entitled to
any damages for breach of contract, or to any injunctive relief to enforce this Contract. In the
event there are sums legally due to Manager at the time of such termination it shall be paid
forthwith, but no consequential damage or damages for breach shall be awarded or available to
Manager.
22. Counterparts. This Contract may be executed in counterparts, and each set of
duly delivered identical counterparts that includes all signatories shall be deemed to be one
original document.
23. Governing Law. This Contract shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be performed within
the State of Michigan.
24. No Third Party Beneficiary. This Contract shall benefit only the parties to this
Contract, and not any third party.
25. Notices. All notices, approvals, consents and other communications required
under this Contract shall be in writing and, except when receipt is required to start the running of
a period of time, shall be deemed given: (i) when delivered in person; (ii) when sent by telephone
facsimile or e-mail, (the sender shall also mail or send a “hard copy” following the facsimile or
e-mail, however the notice shall be effective upon the transmission of the facsimile or e-mail);
(iii) one (1) day after depositing in the custody of a nationally-recognized receipted overnight
delivery service with delivery fees prepaid; or, (iv) two (2) days after posting in the United States
Mail, first class. Notices shall be sent to the parties as follows:
Page 6 of 10
MANAGER LLC
Attn: Matt Gongalski
470 West Western
Muskegon, MI 49440
CITY OF MUSKEGON
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440
26. Binding and Benefit. Although this Operations Management Contract is not
assignable, in the event assignment occurs, and at the option of the City, it shall be binding upon
the parties, their successors, and assigns.
27. Termination. This Agreement may be terminated:
(1) By either party upon sixty (60) calendar days prior written notice to the
other at which time Manager and Owner shall fully and completely
perform their remaining obligations under this Agreement including,
without limitation, the payment of the Management Fee and all other fees,
expenses and charges due to Manager and third parties through the date of
termination of the Agreement pursuant to such notice, and the parties shall
thereafter have no further obligations to each other. ; or
(2) By either party without prior notice, in the event a petition in bankruptcy
is filed by or against the other party, and such petition is not dismissed
within thirty (30) days of filing or either party makes an assignment for
the benefit of creditors, or invokes any insolvency act; or
(3) By either party upon material breach of any term or condition of this
Agreement by the other party and failure to cure such breach within thirty
(30) days after written notice of such breach has been given to the
breaching party.
(b) In the event of termination of this Agreement, Manager shall at no cost to Owner
promptly deliver to Owner:
(1) Copies of all books, records, contracts, leases, receipts for deposits, unpaid
bills, and deposit accounts records pertaining to the management of the
Premises;
(2) A final accounting, reflecting the balance of income and expenses on the
Property as of the date of termination, delivered within 30 days after such
termination; and
Page 7 of 10
(3) Any balance of monies of Owner or tenant security deposits, or both, held
by Manager with respect to the Property shall be delivered to Owner after
the payment of the Management Fee and all other fees, expenses and
charges which are the responsibility of Owner to pay pursuant to this
Agreement, except such security deposits shall not be offset to the extent
such offset is prohibited by applicable law.
ARC ARENA MANAGEMENT
By:
Name: Matt Gongalski
Title: Member
Dated: , 2019
CITY –
City of Muskegon
By:
Name: Stephen J. Gawron
Title: Mayor
Dated: , 2019
And
By:
Name: Ann Marie Meisch
Title: Clerk
Dated: , 2019
Page 8 of 10
EXHIBIT A
SUBLEASE AGREEMENT BETWEEN THE CITY OF MUSKEGON
AND WC HOCKEY, LLC
Page 9 of 10
EXHIBIT B
ESSENTIAL FUNCTIONS OF THE ARENA MANAGER
• Oversee all operational aspects of LC Walker Arena
• Responsible for operation and maintenance of all mechanical and technical systems in the Arena
• Implementation of policies and procedures as they relate to Arena operations and on-going
review and addition/revisions as necessary.
• Coordination of events at the Arena
• Technical expertise to assist Arena guests with event related needs (AV, computer programs, etc.)
• Maintenance of records as they relate to events and maintenance at the Center
• Active participation in marketing efforts for Center
• In house sales
• Presentations and tours of facility
• Sales calls to potential groups/events managers
• Management of Box Office, Team Store, and Concessions Operations
• Assist with preparation of proposals for the Arena
• Assist in preparation of budget for operations of the Arena
• Event accounting and monthly reporting on the Arena
• Supervision of Arena personnel
• Coordination with facility tenants.
Page 10 of 10
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: April 18, 2019
RE: Purchase Agreement – 1490 Lakeshore Drive
SUMMARY OF REQUEST:
Staff is seeking permission to enter into a purchase agreement to sell the city-owned property at 1490
Lakeshore Drive. The potential developer has been working with City staff, the DEQ, and Amoco/BP
to resolve the existing environmental issues on the site. The prognosis for an amicable resolution is
good, but it may take a number of years. As such, staff is seeking a five-year agreement.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager to enter into the sales agreement to sell the property at 1490 Lakeshore
Drive for $420,000 to Muskegon Harbor Services, LLC. The agreement shall require a $5,000 initial earnest
deposit, plus an additional $5,000 earnest deposit due June 1 of each year of the agreement. The earnest
deposit shall be refundable only in the event the developer fails to complete the sale, and developer
releases all due diligence and planning documents to the City.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 13, 2019
RE: Tug and Trailer Purchase
SUMMARY OF REQUEST:
Staff has been working with various downtown event organizers to identify ways to make downtown
events more accessible. There is significant interest in locally acquiring and operating a low-cost
people mover. Staff has identified a used tug system that can move in excess of 40 people at one
time, and can accommodate wheel chairs. Staff is seeking permission to purchase the equipment.
The equipment identified belongs to Creek County, Oklahoma, and is currently in storage.
FINANCIAL IMPACT:
$44,000.00
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the purchase of one tug and two trailers from Creek County, Oklahoma at a cost not to
exceed $44,000.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 7, 2019
RE: Storage Garage – Marsh Field
SUMMARY OF REQUEST:
City staff is seeking permission to collaborate with Muskegon Baseball to construct a storage garage
at Marsh Field. The garage will be slightly larger than a two-stall garage. The estimated cost of the
structure is $25,000. Muskegon Baseball will reimburse the City of Muskegon 50% of the expense.
FINANCIAL IMPACT:
$25,000
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the construction of a storage garage at Marsh Field at a cost not to exceed $25,000, with
$12,500 being reimbursed by Muskegon Baseball.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 13, 2019
RE: Purchase Agreement – 1192 Pine
SUMMARY OF REQUEST:
City staff is seeking permission to purchase the vacant home located at 1192 Pine. Earlier this year,
the city acquired the adjacent property via tax foreclosure. The two homes share a yard and off-street
parking. It is likely that they once were owned by the same entity in the past. The home at 1192 was
offered for auction in late April. Staff put a bid on the property of $4,500. This was the only bid
received. Although it did not meet the auction’s reserve price, the sellers agreed to accept the offer.
Staff anticipates approximately $2,500 in transaction-related costs.
FINANCIAL IMPACT:
$7,000 from the Public Improvement Fund.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager complete the purchase of 1192 Pine Street.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 13, 2019
RE: Tuition Reimbursement
SUMMARY OF REQUEST:
Staff is seeking an update to the existing tuition reimbursement program for active employees.
Currently, the City reimburses up to $2,000 annually for undergraduate-level courses and $2,500 for
graduate-level courses. The update program will reimburse up to $2,500 annually for undergraduate-
level courses and $3,000 for graduate-level courses.
FINANCIAL IMPACT:
None at this time.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the updated Tuition Reimbursement Program.
COMMITTEE RECOMMENDATION:
City of Muskegon
Tuition Reimbursement Program
To encourage the professional and personal development of every City of Muskegon employee,
the following policy establishes reimbursement for qualified educational expenses and successful
completion of undergraduate, graduate and post-graduate courses in accredited colleges or
universities.
All full-time employees of the City of Muskegon are eligible for educational assistance in
accordance with this policy upon completion of six (6) months of continuous employment prior
to the time of course enrollment, and provided that the employee is enrolled in courses which
are part of a degree program.
Reimbursement Requirements
Employees interested in participating in this education assistance program must complete
the Request for Employee Tuition Reimbursement Form prior to the commencement of any
coursework for which the employee desires to be reimbursed.
The employee’s department head must approve the reimbursement (in his or her sole discretion)
and the employee may be reimbursed for only approved degree programs.
Approved coursework must be completed on the employee’s own time.
If approved coursework is only available during the employee’s work hours, a schedule of
proportional compensatory time may be arranged (in the sole discretion of the employee’s
department head), provided normal services of the employing department are not disrupted or
impaired.
Reimbursement is contingent upon the student earning a passing grade (as defined herein) or
confirmation of satisfactory completion of the course from the school when a course is not
graded.
Reimbursement Amount
The City of Muskegon will reimburse an employee for 75% of tuition, including required course
fees, for all passing grades (as defined herein), with a maximum of $2,500 per year for
undergraduate studies and $3,000 per year for graduate and post-graduate studies.
Payment may be made to the institution or reimbursed to the employee.
Failure to satisfy the minimum approved grade will result in denial of payment or reimbursement
of monies to the institution for the applicable course(s).
A passing grade is defined as an “A,” or “B.”
If the course is a “Pass/Fail,” a “Pass” is acceptable.
An employee will not be eligible for tuition reimbursement if they withdraw from an approved
course or if the approved course is canceled.
The employee is required to immediately notify the Department Head and Human Resources if
they withdraw from an approved course or if the course is canceled.
An employee will not receive tuition reimbursement if they terminate employment prior to
completion of an approved course.
If the employee receives an incomplete in a course, the employee will have until the end of the
following semester in which to complete the work and have the incomplete removed. Failure to
complete the work will prohibit the employee from participating in the tuition reimbursement
plan and any advance payments received must be repaid to the City of Muskegon.
Application Process
The employee should complete the Request for Tuition Reimbursement Form 14 days prior to
each course the employee wants to take in conjunction with this program. The Department Head
of the employee’s department must approve the request. When completed, the Request for
Tuition Reimbursement Form is submitted to the Human Resource Department for review and
approval.
Reimbursement Process
Upon completion of the course, applicant must submit, within 45 days, legible copies of the
following: (1) College/university invoice or statement indicating fees charged and the amount
paid (the invoice must contain the school’s name and address. Copies of canceled checks and
credit card receipts will not be accepted); and (2) College/university grade card/report indicating
the applicant’s name, quarter/semester, course name(s) and grade(s) for the term.
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 7, 2019
RE: Summer Evening Recreation Program
SUMMARY OF REQUEST:
Construction and scheduling issues at the High School caused the program to shrink to four weeks. A
partnership with the Boys and Girls Club will allow the program to extend four additional weeks. Staff
is seeking approval to spend an additional $13,500 to accommodate this change to the evening
recreation program.
FINANCIAL IMPACT:
$13,500
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To accept the attached proposal from the Boys and Girls Club of the Muskegon Lakeshore.
COMMITTEE RECOMMENDATION:
Program Design:
Boys & Girls Club of the Muskegon Lakeshore would operate a Evening Recreation Program for youth ages 6-18
Monday-Friday 6:00pm-9:00pm at our Nelson Club Site (550 W Grand). This program would be offered 36 days in the
summer, beginning Monday, June 24th and ending Friday, August 16th. In addition, an Evening Recreation Program
would be added to Boys & Girls Club current Summer Park Recreation Programs (9am-6pm) and Summer Nelson Site
Programs (Noon-6pm).
All programs will be closed for the 4th of July and July 5th. In addition, the program will be closed on 26th and July 29th.
Based on prior years operating summer programs, BGCML recognizes how taxing the long summer hours are on staff.
Thus, this long weekend (July 26th - July 29th) provides designated time for staff to recharge.
BGCML will provide a variety of recreational programs each day, including, but not limited to those found below for a
Evening Recreation Program :
Time Frame Activities offered
5:00 - 6:00 pm Warm Dinner Warm Dinner Warm Dinner Warm Dinner Warm Dinner Warm Dinner
6:00 - 7:00 pm Basketball: 3 Soccer Gamesroom Swimming Music Makers Adventure
On 3 Challenges Sports
Rotating
7:00 - 8:00 pm Basketball: Volleyball Gamesroom Swimming Drama Matters Schedule:
King of the Challenges Biking,
Court Kayaking,
Beach,
8:00 - 9:00 pm Basketball: 21 Flag Football Gamesroom Swimming Lyricism 101 Kitesurfing
Challenges Training
*At least five activities will be offered to youth each program block, with youth able to choose which activity they would like
to participate in. To ensure safety, BGCML will group youth by age.
Staff-to-Member Ratio:
BGCML is committed to providing a safe environment. As such, all Club activities will be under continuous supervision by
an appropriate adult at all times. Based on Boys & Girls Clubs of America recommendations and Michigan Out-of-School
Time Standards of Quality, BGCML will maintain a maximum of 15:1 student-to-staff ratio. Additional staff will be hired as
needed based on program participation, to ensure this ratio is in effect at all times.
Budget:
BGCML anticipates the cost to run a high-quality evening recreation program to be $50,946. Assuming this program is
operated for 108 hours each summer, this would result in a program cost of $472/program hour (based on 3 hrs per day
for 36 days).
See attached for complete budget overview.
(The following staff quantities are based on an anticipated average daily attendance of 250 youth. Number of
Coordinators and Youth Development Professionals would be adjusted accordingly to maintain required ratio; additional
hours and days are included for training and program preparation).
Salaries & Wages
Position Description Total
Recreation Director $16.00/hr, 5 hrs/day, 36 days $2,880
Membership Coordinator $12.00/hr, 5 hrs/day, 36 days $2,160
Recreation Bus Driver $15.00/hr, 3 hrs/day, 36 days $1,620
Recreation Coordinators (Qty: 6) $12.00/hr each, 5 hrs/day, 36 days $12,960
Recreation Youth Development $10.00/hr, 4 hrs/day, 36 days $15,840
Professionals (Qty: 11)
Total Salaries & Wages $35,460
Payroll Taxes (12%) $4,255
Grand Total Salaries & Wages $39,715
Other Program Expenses
Line Item Description Total
Program Supplies & Equipment Games Room Supplies, Sports & Rec $3,000
Supplies, Art Supplies, Music
Supplies
Fuel Fuel for Beach Trips & Adventure $1,500
Sports
Janitorial $60.00/day, 36 Days $2,160
Total Additional Program Expenses: $6,600
Overall Program Expenses
Line Item Description Total
Total Project Expense $46,315
In-Direct Costs (10%) Program Planning & Prep, Insurance, $4,631
Reporting, Management & Oversight
Grand Total Evening Rec Program Expenses: $50,946
Date: May 14th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Hartshorn Marina T-Dock Repairs
SUMMARY OF REQUEST:
Authorize staff to contract with T.R. Ghezzi, LLC for repairs to the T-Dock at
Hartshorn Marina. After the ice thawed, the T-Dock was found to be in need of repairs
prior to opening for the season.
Two contractors were solicited for bids on the project:
T.R. Ghezzi LLC $10,300.00
Great Lakes Declined To Bid
FINANCIAL IMPACT:
$10,300.00
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize staff to contract with T.R. Ghezzi LLC for the dock repairs.
April 26, 2019
Mr. Doug Sayles / City of Muskegon / Hartshorn Marina
920 West Western Avenue
Muskegon, MI 49441
This proposal is for the installation of (5) new lift tanks to add additional floatation to failing sections
of the end of the main pier as well as the ramp. Repair existing ramp with additional brackets and
lumber as needed. This proposal is based upon access to the project from land and water.
Project Site:
T. R. Ghezzi, LLC has reviewed the site, and submits the following proposal.
Scope of Work:
• Install floats.
• Add any additional support needed.
• Re-deck any disturbed areas.
Schedule of Materials:
• 2” by 6” (actual 1.5” by 5.5”) decking.
• 3” coated decking screws.
• 96’ by 36” by 24” poly lift tanks.
• Miscellaneous galvanized carriage bolts with washers and nuts.
• Miscellaneous steel needed for repair.
Project Cost:
The cost for this proposal is $10,300.00
Payment:
55% of balance is due 14 days prior to start of work.
45% of balance payment is due upon completion.
Work Schedule:
Work to begin at acceptance of contract. To be finished by 5/4/19 if the proposal is accepted on or
before 4/27/19.
Access to Project Site:
The project cost is based on available access to the project site via land and water. If for any reason
the project site is not accessible the project cost is subject to renegotiation.
Contingencies:
This agreement is contingent upon weather delay, accessibility, acts of god, of any other incident
beyond the control of T.R. Ghezzi, LLC. Changes to this agreement shall be in writing only. A
monthly service charge of 2% shall be applied to all past due accounts.
If you have any questions or concerns, please give me a call at (231) 206-9560.
Thank you.
T.R. Ghezzi, LLC
Travis Ghezzi, Owner Doug Sayles / City of Muskegon
2055 Lakeshore Drive 920 West Western Avenue
Muskegon, MI 49441 Muskegon, MI 49441
Date: May 14th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Consumers Energy LED
SUMMARY OF REQUEST:
Authorize the City Clerk to sign the lighting change contract with Consumers Energy.
The agreement covers change in billing for lights upgraded to LED due to faults and or
burnouts.
FINANCIAL IMPACT:
$0
BUDGET ACTION REQUIRED:
None. Faulted or burned out lights are upgraded and replaced with LED at no cost.
STAFF RECOMMENDATION:
Authorize the City Clerk to sign the contract with Consumers Energy.
Date: May 14th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: SRF – RR Sewer Crossing
SUMMARY OF REQUEST:
Authorize staff to sign the agreement with CSX for the new sanitary sewer crossing
under the RR line near 8th Street. The line is being installed as a part of the 2019 SRF
projects.
FINANCIAL IMPACT:
$21,500.00
BUDGET ACTION REQUIRED:
None. Will be billed to the capital project for 9th Street sewer upgrades.
STAFF RECOMMENDATION:
Authorize staff to sign the agreement with CSX for the new sanitary sewer crossing.
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
FACILITY ENCROACHMENT AGREEMENT
THIS AGREEMENT, Made and effective as of March 5, 2019, by and between CSX
TRANSPORTATION, INC., a Virginia corporation, whose mailing address is 500 Water Street,
Jacksonville, Florida 32202, hereinafter called "Licensor," and CITY OF MUSKEGON, a
municipal corporation, political subdivision or state agency, under the laws of the State of
Michigan, whose mailing address is 933 Terrace St., Muskegon, Michigan 49440, hereinafter
called "Licensee," WITNESSETH:
WHEREAS, Licensee desires to construct (unless previously constructed and designated
as existing herein), use and maintain the below described facility(ies), hereinafter called
"Facilities," over, under or across property owned or controlled by Licensor, at the below
described location(s):
1. One (1) twenty-four inch (24'') diameter sub-grade pipeline crossing, solely for the
conveyance of raw/treated sewage, located at or near Muskegon, Muskegon County, Michigan,
Louisville Zone Division, Fremont Subdivision, Valuation Station 2968+00, Milepost CGC-
56.3, Latitude N43:13:54.00, Longitude W86:15:37.00;
2. One (1) existing eighteen inch (18'') diameter pipeline crossing, solely for the conveyance
of raw/treated sewage, to be abandoned per Licensor’s specifications, located at or near
Muskegon, Muskegon County, Michigan, Louisville Zone Division, Fremont Subdivision,
Milepost CGC-56.1, N::.W:;
3. One (1) existing fifteen inch (15'') diameter pipeline crossing, solely for the conveyance of
raw/treated sewage, to be abandoned per Licensor’s specifications, located at or near Muskegon,
Muskegon County, Michigan, Louisville Zone Division, Fremont Subdivision, Milepost CGC-
56.0, N::.W:;
hereinafter, called the ''Encroachment,'' as shown on print(s) labeled Exhibit "A," attached hereto
and made a part hereof;
NOW, THEREFORE, in consideration of the mutual covenants, conditions, terms and
agreements herein contained, the parties hereto agree and covenant as follows:
1. LICENSE:
1.1 Subject to Article 17, Licensor, insofar as it has the legal right, power and
authority to do so, and its present title permits, and subject to:
(A) Licensor's present and future right to occupy, possess and use its
property within the area of the Encroachment for any and all purposes;
(B) All encumbrances, conditions, covenants, easements, and limitations
applicable to Licensor's title to or rights in the subject property; and
Page 1 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
(C) Compliance by Licensee with the terms and conditions herein
contained;
does hereby license and permit Licensee to construct, maintain, repair, renew, operate, use, alter
or change the Facilities at the Encroachment above for the term herein stated, and to remove
same upon termination.
1.2 The term Facilities, as used herein, shall include only those structures and
ancillary facilities devoted exclusively to the transmission usage above within the Encroachment,
and as shown on attached Exhibit A.
1.3 No additional structures or other facilities shall be placed, allowed, or
maintained by Licensee in, upon or on the Encroachment except upon prior separate written
consent of Licensor.
2. ENCROACHMENT FEE; TERM:
2.1 Licensee shall pay Licensor a one-time nonrefundable Encroachment Fee of
FIFTEEN THOUSAND THREE HUNDRED AND 00/100 U.S. DOLLARS ($15,300.00) upon
execution of this Agreement. Licensee agrees that the Encroachment Fee applies only to the
original Licensee under this Agreement. In the event of a successor (by merger, consolidation,
reorganization and/or assignment) or if the original Licensee changes its name, then Licensee
shall be subject to payment of Licensor's current administrative and document preparation fees
for the cost incurred by Licensor in preparing and maintaining this Agreement on a current basis.
2.2 However, Licensee assumes sole responsibility for, and shall pay directly (or
reimburse Licensor), any additional annual taxes and/or periodic assessments levied against
Licensor or Licensor's property solely on account of said Facilities or Encroachment.
2.3 This Agreement shall terminate as herein provided, but shall also terminate
upon: (a) Licensee's cessation of use of the Facilities or Encroachment for the purpose(s) above;
(b) removal of the Facilities; (c) subsequent mutual consent; and/or (d) failure of Licensee to
complete installation within five (5) years from the effective date of this Agreement.
2.4 In further consideration for the license or right hereby granted, Licensee
hereby agrees that Licensor shall not be charged or assessed, directly or indirectly, with any part
of the cost of the installation of said Facilities and appurtenances, and/or maintenance thereof, or
for any public works project of which said Facilities is a part.
3. CONSTRUCTION, MAINTENANCE AND REPAIRS:
3.1 Licensee shall construct, maintain, relocate, repair, renew, alter, and/or remove
the Facilities, in a prudent, workmanlike manner, using quality materials and complying with any
applicable standard(s) or regulation(s) of Licensor (CSXT Specifications), or Licensee's
particular industry, National Electrical Safety Code, or any governmental or regulatory body
having jurisdiction over the Encroachment.
Page 2 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
3.2 Location and construction of Facilities shall be made strictly in accordance
with design(s) and specifications furnished to and approved by Licensor and of material(s) and
size(s) appropriate for the purpose(s) above recited.
3.3 All of Licensee's work, and exercise of rights hereunder, shall be undertaken at
time(s) satisfactory to Licensor, and so as to eliminate or minimize any impact on or interference
with the safe use and operation of Licensor's property and appurtenances thereto.
3.4 In the installation, maintenance, repair and/or removal of said Facilities,
Licensee shall not use explosives of any type or perform or cause any blasting without the
separate express written consent of Licensor. As a condition to such consent, a representative
will be assigned by Licensor to monitor blasting, and Licensee shall reimburse Licensor for the
entire cost and/or expense of furnishing said monitor.
3.5 Any repairs or maintenance to the Facilities, whether resulting from acts of
Licensee, or natural or weather events, which are necessary to protect or facilitate Licensor's use
of its property, shall be made by Licensee promptly, but in no event later than thirty (30) days
after Licensee has notice as to the need for such repairs or maintenance.
3.6 Licensor, in order to protect or safeguard its property, rail operations,
equipment and/or employees from damage or injury, may request immediate repair or renewal of
the Facilities, and if the same is not performed, may make or contract to make such repairs or
renewals, at the sole risk, cost and expense of Licensee.
3.7 Neither the failure of Licensor to object to any work done, material used, or
method of construction or maintenance of said Encroachment, nor any approval given or
supervision exercised by Licensor, shall be construed as an admission of liability or
responsibility by Licensor, or as a waiver by Licensor of any of the obligations, liability and/or
responsibility of Licensee under this Agreement.
3.8 All work on the Encroachment shall be conducted in accordance with
Licensor's safety rules and regulations.
3.9 Licensee hereby agrees to reimburse Licensor any loss, cost or expense
(including losses resulting from train delays and/or inability to meet train schedules) arising from
any failure of Licensee to make repairs or conduct maintenance as required by Section 3.5 above
or from improper or incomplete repairs or maintenance to the Facilities or Encroachment.
3.10 In the event it becomes necessary for the Licensee to deviate from the
approved Exhibit, Licensee shall seek prior approval from Licensor, or when applicable, an
official field representative of Licensor permitted to approve changes, authorizing the necessary
field changes and Licensee shall provide Licensor with complete As-Built Drawings of the
completed work. As-Built Drawings shall be submitted to Licensor in either electronic or hard
copy form upon the substantial completion of the project and upon Licensor’s request.
Page 3 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
3.11 In the event of large scale maintenance/construction work to railroad bridges
Licensee is required to protect power lines with insulated covers or comparable safety devices at
their costs during construction/maintenance for safety of railroad employees.
4. PERMITS, LICENSES:
4.1 Before any work hereunder is performed, or before use of the Encroachment
for the contracted purpose, Licensee, at its sole cost and expense, shall obtain all necessary
permit(s) (including but not limited to zoning, building, construction, health, safety or
environmental matters), letter(s) or certificate(s) of approval. Licensee expressly agrees and
warrants that it shall conform and limit its activities to the terms of such permit(s), approval(s)
and authorization(s), and shall comply with all applicable ordinances, rules, regulations,
requirements and laws of any governmental authority (State, Federal or Local) having
jurisdiction over Licensee's activities, including the location, contact, excavation and protection
regulations of the Occupational Safety and Health Act (OSHA) (29 CFR 1926.651(b)), et al., and
State "One Call" - "Call Before You Dig" requirements.
4.2 Licensee assumes sole responsibility for failure to obtain such permit(s) or
approval(s), for any violations thereof, or for costs or expenses of compliance or remedy.
5. MARKING AND SUPPORT:
5.1 With respect to any subsurface installation or maintenance upon Licensor's
property, Licensee, at its sole cost and expense, shall:
(A) support track(s) and roadbed in a manner satisfactory to Licensor;
(B) backfill with satisfactory material and thoroughly tamp all trenches to
prevent settling of surface of land and roadbed of Licensor; and
(C) either remove any surplus earth or material from Licensor's property or
cause said surplus earth or material to be placed and distributed at location(s) and in such manner
Licensor may approve.
5.2 After construction or maintenance of the Facilities, Licensee shall:
(A) Restore any track(s), roadbed and other disturbed property; and
(B) Erect, maintain and periodically verify the accuracy of aboveground
markers, in a form approved by Licensor, indicating the location, depth and ownership of any
underground Facilities or related facilities.
5.3 Licensee shall be solely responsible for any subsidence or failure of lateral or
subjacent support in the Encroachment area for a period of three (3) years after completion of
installation.
Page 4 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
6. TRACK CHANGES:
6.1 In the event that rail operations and/or track maintenance result in changes in
grade or alignment of, additions to, or relocation of track(s) or other facilities, or in the event
future use of Licensor's rail corridor or property necessitate any change of location, height or
depth in the Facilities or Encroachment, Licensee, at its sole cost and expense and within thirty
(30) days after notice in writing from Licensor, shall make changes in the Facilities or
Encroachment to accommodate such track(s) or operations.
6.2 If Licensee fails to do so, Licensor may make or contract to make such
changes at Licensee's cost.
7. FACILITY CHANGES:
7.1 Licensee shall periodically monitor and verify the depth or height of the
Facilities or Encroachment in relation to the existing tracks and facilities, and shall relocate the
Facilities or change the Encroachment, at Licensee's expense, should such relocation or change
be necessary to comply with the minimum clearance requirements of Licensor.
7.2 If Licensee undertakes to revise, renew, relocate or change in any manner
whatsoever all or any part of the Facilities (including any change in voltage or gauge of wire or
any change in circumference, diameter or radius of pipe or change in materials transmitted in and
through said pipe), or is required by any public agency or court order to do so, plans therefor
shall be submitted to Licensor for approval before such change. After approval, the terms and
conditions of this Agreement shall apply thereto.
8. INTERFERENCE WITH RAIL FACILITIES:
8.1 Although the Facilities/Encroachment herein permitted may not presently
interfere with Licensor's railroad or facilities, in the event that the operation, existence or
maintenance of said Facilities, in the sole judgment of Licensor, causes: (a) interference
(including, but not limited to, physical or interference from an electromagnetic induction, or
interference from stray or other currents) with Licensor's power lines, communication, signal or
other wires, train control system, or electrical or electronic apparatus; or (b) interference in any
manner, with the operation, maintenance or use of the rail corridor, track(s), structures, pole
line(s), devices, other property, or any appurtenances thereto; then and in either event, Licensee,
upon receipt of written notice from Licensor of any such interference, and at Licensee's sole risk,
cost and expense, shall promptly make such changes in its Facilities or installation, as may be
required in the reasonable judgment of the Licensor to eliminate all such interference. Upon
Licensee's failure to remedy or change, Licensor may do so or contract to do so at Licensee's sole
cost.
8.2 Without assuming any duty hereunder to inspect the Facilities, Licensor hereby
reserves the right to inspect same and to require Licensee to undertake repairs, maintenance or
adjustments to the Facilities, which Licensee hereby agrees to make promptly, at Licensee's sole
cost and expense.
Page 5 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
9. RISK, LIABILITY, INDEMNITY:
With respect to the relative risk and liabilities of the parties, it is hereby agreed that:
9.1 Licensee, to the fullest extent permitted by State law (constitutional or
statutory, as amended), hereby agrees to assume any and all liability, loss, claim, suit, damage,
charge or expense on account of death or injury to any person whomsoever, and for damage to or
loss of or destruction of any property whatsoever, arising out of, resulting from, or in any way
connected with the construction, repair, maintenance, replacement, presence, existence,
operations, use or removal of the Facilities or any structure in connection therewith, or
restoration of premises of Licensor to good order or condition after removal.
9.2 Licensee’s Contractor shall hereby agree to, defend, indemnify, and hold
Licensor harmless from and against any and all liability, loss, claim, suit, damage, charge or
expense which Licensor may suffer, sustain, incur or in any way be subjected to, on account of
death of or injury to any person whomsoever (including officers, agents, employees or invitees of
Licensor), and for damage to or loss of or destruction of any property whosoever, arising out of
resulting from, or in any way connected with the construction, repair, maintenance, replacement,
presence, existence, operations, use or removal of the Facilities or any structure in connection
therewith, or restoration of premises of Licensor to good order or condition after removal,
EXCEPT when proven to have been caused solely by the willful misconduct or gross negligence
of Licensor. HOWEVER, to the fullest extent permitted by State law, during any period of
actual construction, repair, maintenance, replacement or removal of the Facilities, wherein
agents, equipment or personnel of Licensee are on the railroad rail corridor, Licensee’s liability
hereunder shall be absolute, irrespective of any joint, sole or contributory fault or negligence of
Licensor.
9.3 Use of Licensor's rail corridor involves certain risks of loss or damage as a
result of the rail operations. Notwithstanding Section 9.1, Licensee expressly assumes all risk of
loss and damage to Licensee's Property or the Facilities in, on, over or under the Encroachment,
including loss of or any interference with use or service thereof, regardless of cause, including
electrical field creation, fire or derailment resulting from rail operations. For this Section, the
term "Licensee's Property" shall include property of third parties situated or placed upon
Licensor's rail corridor by Licensee or by such third parties at request of or for benefit of
Licensee.
9.4 To the fullest extent permitted by State law, as above, Licensee assumes all
responsibility for: (a) all claims, costs and expenses, including reasonable attorneys' fees, as a
consequence of any sudden or nonsudden pollution of air, water, land and/or ground water on or
off the Encroachment area, arising from or in connection with the use of this Encroachment or
resulting from leaking, bursting, spilling, or any escape of the material transmitted in or through
the Facilities; (b) any claim or liability arising under federal or state law dealing with either such
sudden or nonsudden pollution of air, water, land and/or ground water arising therefrom or the
remedy thereof; and (c) any subsidence or failure of lateral or subjacent support of the tracks
arising from such Facilities leakage.
Page 6 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
9.5 Notwithstanding Section 9.1, Licensee also expressly assumes all risk of loss
which in any way may result from Licensee's failure to maintain either required clearances for
any overhead Facilities or the required depth and encasement for any underground Facilities,
whether or not such loss(es) result(s) in whole or part from Licensor's contributory negligence or
joint fault.
9.6 Obligations of Licensee hereunder to release Licensor shall also extend to
companies and other legal entities that control, are controlled by, subsidiaries of, or are affiliated
with Licensor, as well as any railroad that operates over the rail corridor on which the
Encroachment is located, and the officers, employees and agents of each.
9.7 If a claim is made or action is brought against Licensor, and/or its operating
lessee, for which Licensee may be responsible hereunder, in whole or in part, Licensee shall be
notified to assume the handling or defense of such claim or action; but Licensor may participate
in such handling or defense.
9.8 Notwithstanding anything contained in this Agreement, the limitation of
liability contained in the state statutes, as amended from time to time, shall not limit Licensor's
ability to collect under the insurance policies required to be maintained under this Agreement.
10. INSURANCE:
10.1 Prior to commencement of surveys, installation or occupation of premises
pursuant to this Agreement, Licensee shall procure and shall maintain during the continuance of
this Agreement, at its sole cost and expense, a policy of
(i) Statutory Worker's Compensation and Employers Liability Insurance with
available limits of not less than ONE MILLION AND 00/100 U.S. DOLLARS
($1,000,000.00).
(ii) Commercial General Liability coverage (inclusive of contractual liability) with
available limits of not less than FIVE MILLION AND 00/100 U.S. DOLLARS
($5,000,000.00)in combined single limits for bodily injury and property damage
and covering the contractual liabilities assumed under this Agreement and naming
Licensor, and/or its designee, as additional insured. The evidence of insurance
coverage shall be endorsed to provide for thirty (30) days' notice to Licensor, or
its designee, prior to cancellation or modification of any policy. Mail CGL
certificate, along with agreement, to CSX Transportation, Inc., Speed Code J180,
500 Water Street, Jacksonville, FL 32202. On each successive year, send
certificate to [email protected].
(iii) Business automobile liability insurance with available limits of not less than ONE
MILLION AND 00/100 U.S. DOLLARS ($1,000,000.00) combined single limit
for bodily injury and/or property damage per occurrence naming Licensor, and/or
its designee, as additional insured.
Page 7 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
(iv) The insurance policies must contain a waiver of subrogation against CSXT and its
Affiliates, except where prohibited by law. All insurance companies must be A.
M. Best rated A- and Class VII or better.
(v) Such other insurance as Licensor may reasonably require.
(vi) Licensee shall require its contractors to meet minimum insurance requirements
above when performing work in relation to this agreement. Licensee will procure and
review contractor’s insurance certificates to confirm requirements are met. Licensor may
request a copy of the insurance certificate.
10.2 If Licensee's existing CGL policy(ies) do(es) not automatically cover
Licensee's contractual liability during periods of survey, installation, maintenance and continued
occupation, a specific endorsement adding such coverage shall be purchased by Licensee. If said
CGL policy is written on a "claims made" basis instead of a "per occurrence" basis, Licensee
shall arrange for adequate time for reporting losses. Failure to do so shall be at Licensee's sole
risk.
10.3 Licensor, or its designee, may at any time request evidence of insurance
purchased by Licensee to comply with this Agreement. Failure of Licensee to comply with
Licensor's request shall be considered a default by Licensee.
10.4 To the extent permitted by law and without waiver of the sovereign immunity
of Licensee, securing such insurance shall not limit Licensee's liability under this Agreement, but
shall be security therefor.
10.5 (A) In the event Licensee finds it necessary to perform construction or
demolition operations within fifty feet (50') of any operated railroad track(s) or affecting any
railroad bridge, trestle, tunnel, track(s), roadbed, overpass or underpass, Licensee shall: (a) notify
Licensor; and (b) require its contractor(s) performing such operations to procure and maintain
during the period of construction or demolition operations, at no cost to Licensor,
i) Railroad Protective Liability (RPL) Insurance, naming Licensor, and/or its designee, as
Named Insured, written on the current ISO/RIMA Form (ISO Form No. CG 00 35 04 13)
with limits of FIVE MILLION AND 00/100 U.S. DOLLARS ($5,000,000.00) per
occurrence for bodily injury and property damage, with at least TEN MILLION AND
00/100 U.S. DOLLARS ($10,000,000.00) aggregate limit per annual policy period. The
original of such RPL policy shall be sent to and approved by Licensor prior to
commencement of such construction or demolition. Licensor reserves the right to
demand higher limits.
OR
ii) The CGL policy shall include endorsement ISO CG 24 17 and the Auto Liability
Policy shall include endorsement ISO CA 20 70 evidencing that coverage is provided for
Page 8 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
work within 50 feet of a railroad. If such endorsements are not included, RPL insurance
must be provided.
(B) At Licensor's option, in lieu of purchasing RPL insurance or the 50 foot
endorsements from an insurance company (but not CGL insurance), Licensee may pay Licensor,
at Licensor's current rate at time of request, the cost of adding this Encroachment, or additional
construction and/or demolition activities, to Licensor's Railroad Protective Liability (RPL)
Policy for the period of actual construction. This coverage is offered at Licensor's discretion and
may not be available under all circumstances.
10.6 Notwithstanding the provisions of Sections 10.1 and 10.2, Licensee, pursuant
to State Statute(s), may self-insure or self-assume, in any amount(s), any contracted liability
arising under this Agreement, under a funded program of self-insurance, which fund will respond
to liability of Licensee imposed by and in accordance with the procedures established by law.
11. GRADE CROSSINGS; PROTECTION SERVICES:
11.1 Nothing herein contained shall be construed to permit Licensee or Licensee's
contractor to move any vehicles or equipment over the track(s), except at public road crossing(s),
without separate prior written approval of Licensor.
11.2 If Licensor deems it advisable, during any construction, maintenance, repair,
renewal, alteration, change or removal of said Facilities, to place watchmen, flagmen, or field
construction managers for protection of operations of Licensor or others on Licensor's rail
corridor at the Encroachment, and to keep persons, equipment or materials away from the
track(s), Licensor shall have the right to do so at the expense of Licensee, but Licensor shall not
be liable for failure to do so.
12. LICENSOR'S COSTS:
12.1 Any additional or alternative costs or expenses incurred by Licensor to
accommodate Licensee's continued use of Licensor's property as a result of track changes or wire
changes shall also be paid by Licensee.
12.2 Licensor's expense for wages ("force account" charges) and materials for any
work performed at the expense of Licensee pursuant hereto shall be paid by Licensee within
thirty (30) days after receipt of Licensor's bill therefor. Licensor may, at its discretion, request
an advance deposit for estimated Licensor costs and expenses.
12.3 Such expense shall include, but not be limited to, cost of railroad labor and
supervision under "force account" rules, plus current applicable overhead percentages, the actual
cost of materials, and insurance, freight and handling charges on all material used. Equipment
rentals shall be in accordance with Licensor's applicable fixed rate. Licensor may, at its
discretion, require advance deposits for estimated costs of such expenses and costs.
Page 9 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
13. DEFAULT, BREACH, WAIVER:
13.1 The proper and complete performance of each covenant of this Agreement
shall be deemed of the essence thereof, and in the event Licensee fails or refuses to fully and
completely perform any of said covenants or remedy any breach within thirty (30) days after
receiving written notice from Licensor to do so (or within forty-eight (48) hours in the event of
notice of a railroad emergency), Licensor shall have the option of immediately revoking this
Agreement and the privileges and powers hereby conferred, regardless of encroachment fee(s)
having been paid in advance for any annual or other period. Upon such revocation, Licensee
shall make removal in accordance with Article 14.
13.2 No waiver by Licensor of its rights as to any breach of covenant or condition
herein contained shall be construed as a permanent waiver of such covenant or condition, or any
subsequent breach thereof, unless such covenant or condition is permanently waived in writing
by Licensor.
13.3 Neither the failure of Licensor to object to any work done, material used, or
method of construction or maintenance of said Encroachment, nor any approval given or
supervision exercised by Licensor, shall be construed as an admission of liability or
responsibility by Licensor, or as a waiver by Licensor of any of the obligations, liability and/or
responsibility of Licensee under this Agreement.
14. TERMINATION, REMOVAL:
14.1 All rights which Licensee may have hereunder shall cease upon the date of
(a) termination, (b) revocation, or (c) subsequent agreement, or (d) Licensee's removal of the
Facility from the Encroachment. However, neither termination nor revocation of this Agreement
shall affect any claims and liabilities which have arisen or accrued hereunder, and which at the
time of termination or revocation have not been satisfied; neither party, however, waiving any
third party defenses or actions.
14.2 Within thirty (30) days after revocation or termination, Licensee, at its sole
risk and expense, shall (a) remove the Facilities from the rail corridor of Licensor, unless the
parties hereto agree otherwise, (b) restore the rail corridor of Licensor in a manner satisfactory to
Licensor, and (c) reimburse Licensor any loss, cost or expense of Licensor resulting from such
removal.
15. NOTICE:
15.1 Licensee shall give Licensor at least thirty (30) days written notice before
doing any work on Licensor's rail corridor, except that in cases of emergency shorter notice may
be given. Licensee shall provide proper notification as follows:
a. For non-emergencies, Licensee shall submit online via the CSX Property
Portal from Licensor's web site, via web link:
https://propertyportal.csx.com/pub_ps_res/ps_res/jsf/public/index.faces
Page 10 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
b. For emergencies, Licensee shall complete all of the steps outlined in
Section 15.1 a. above, and shall also include detailed information of the emergency. Licensee
shall also call and report details of the emergency to Licensor's Rail Operations Emergency
Telephone Number: 1-800-232-0144. In the event Licensor needs to contact Licensee
concerning an emergency involving Licensee's Facility(ies), the emergency phone number for
Licensee is: 231-750-6369.
15.2 All other notices and communications concerning this Agreement shall be
addressed to Licensee at the address above, and to Licensor at the address shown on Page 1, c/o
CSXT Contract Management, J180; or at such other address as either party may designate in
writing to the other.
15.3 Unless otherwise expressly stated herein, all such notices shall be in writing
and sent via Certified or Registered Mail, Return Receipt Requested, or by courier, and shall be
considered delivered upon: (a) actual receipt, or (b) date of refusal of such delivery.
16. ASSIGNMENT:
16.1 The rights herein conferred are the privileges of Licensee only, and Licensee
shall obtain Licensor's prior written consent to any assignment of Licensee's interest herein; said
consent shall not be unreasonably withheld.
16.2 Subject to Sections 2 and 16.1, this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors or assigns.
16.3 Licensee shall give Licensor written notice of any legal succession (by
merger, consolidation, reorganization, etc.) or other change of legal existence or status of
Licensee, with a copy of all documents attesting to such change or legal succession, within thirty
(30) days thereof.
16.4 Licensor expressly reserves the right to assign this Agreement, in whole or in
part, to any grantee, lessee, or vendee of Licensor's underlying property interests in the
Encroachment, upon written notice thereof to Licensee.
16.5 In the event of any unauthorized sale, transfer, assignment, sublicense or
encumbrance of this Agreement, or any of the rights and privileges hereunder, Licensor, at its
option, may revoke this Agreement by giving Licensee or any such assignee written notice of
such revocation; and Licensee shall reimburse Licensor for any loss, cost or expense Licensor
may incur as a result of Licensee's failure to obtain said consent.
17. TITLE:
17.1 Licensee understands that Licensor occupies, uses and possesses lands,
rights-of-way and rail corridors under all forms and qualities of ownership rights or facts, from
full fee simple absolute to bare occupation. Accordingly, nothing in this Agreement shall act as
Page 11 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
or be deemed to act as any warranty, guaranty or representation of the quality of Licensor's title
for any particular Encroachment or segment of Rail Corridor occupied, used or enjoyed in any
manner by Licensee under any rights created in this Agreement. It is expressly understood that
Licensor does not warrant title to any Rail Corridor and Licensee will accept the grants and
privileges contained herein, subject to all lawful outstanding existing liens, mortgages and
superior rights in and to the Rail Corridor, and all leases, licenses and easements or other
interests previously granted to others therein.
17.2 The term "license," as used herein, shall mean with regard to any portion of
the Rail Corridor which is owned by Licensor in fee simple absolute, or where the applicable law
of the State where the Encroachment is located otherwise permits Licensor to make such grants
to Licensee, a "permission to use" the Rail Corridor, with dominion and control over such
portion of the Rail Corridor remaining with Licensor, and no interest in or exclusive right to
possess being otherwise granted to Licensee. With regard to any other portion of Rail Corridor
occupied, used or controlled by Licensor under any other facts or rights, Licensor merely waives
its exclusive right to occupy the Rail Corridor and grants no other rights whatsoever under this
Agreement, such waiver continuing only so long as Licensor continues its own occupation, use
or control. Licensor does not warrant or guarantee that the license granted hereunder provides
Licensee with all of the rights necessary to occupy any portion of the Rail Corridor. Licensee
further acknowledges that it does not have the right to occupy any portion of the Rail Corridor
held by Licensor in less than fee simple absolute without also receiving the consent of the
owner(s) of the fee simple absolute estate. Further, Licensee shall not obtain, exercise or claim
any interest in the Rail Corridor that would impair Licensor's existing rights therein.
17.3 Licensee agrees it shall not have nor shall it make, and hereby completely and
absolutely waives its right to, any claim against Licensor for damages on account of any
deficiencies in title to the Rail Corridor in the event of failure or insufficiency of Licensor's title
to any portion thereof arising from Licensee's use or occupancy thereof.
17.4 Licensee agrees to fully and completely indemnify and defend all claims or
litigation for slander of title, overburden of easement, or similar claims arising out of or based
upon the Facilities placement, or the presence of the Facilities in, on or along any
Encroachment(s), including claims for punitive or special damages.
17.5 Licensee shall not at any time own or claim any right, title or interest in or to
Licensor's property occupied by the Encroachments, nor shall the exercise of this Agreement for
any length of time give rise to any right, title or interest in Licensee to said property other than
the license herein created.
17.6 Nothing in this Agreement shall be deemed to give, and Licensor hereby
expressly waives, any claim of ownership in and to any part of the Facilities.
17.7 Licensee shall not create or permit any mortgage, pledge, security, interest,
lien or encumbrances, including without limitation, tax liens and liens or encumbrances with
respect to work performed or equipment furnished in connection with the construction,
installation, repair, maintenance or operation of the Facilities in or on any portion of the
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AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
Encroachment (collectively, "Liens or Encumbrances"), to be established or remain against the
Encroachment or any portion thereof or any other Licensor property.
17.8 In the event that any property of Licensor becomes subject to such Liens or
Encumbrances, Licensee agrees to pay, discharge or remove the same promptly upon Licensee's
receipt of notice that such Liens or Encumbrances have been filed or docketed against the
Encroachment or any other property of Licensor; however, Licensee reserves the right to
challenge, at its sole expense, the validity and/or enforceability of any such Liens or
Encumbrances.
18. GENERAL PROVISIONS:
18.1 This Agreement, and the attached specifications, contains the entire
understanding between the parties hereto.
18.2 Neither this Agreement, any provision hereof, nor any agreement or provision
included herein by reference, shall operate or be construed as being for the benefit of any third
person.
18.3 Except as otherwise provided herein, or in any Rider attached hereto, neither
the form of this Agreement, nor any language herein, shall be interpreted or construed in favor of
or against either party hereto as the sole drafter thereof.
18.4 This Agreement is executed under current interpretation of applicable
Federal, State, County, Municipal or other local statute, ordinance or law(s). However, each
separate division (paragraph, clause, item, term, condition, covenant or agreement) herein shall
have independent and severable status for the determination of legality, so that if any separate
division is determined to be void or unenforceable for any reason, such determination shall have
no effect upon the validity or enforceability of each other separate division, or any combination
thereof.
18.5 This Agreement shall be construed and governed by the laws of the state in
which the Facilities and Encroachment are located.
18.6 If any amount due pursuant to the terms of this Agreement is not paid by the
due date, it will be subject to Licensor's standard late charge and will also accrue interest at
eighteen percent (18%) per annum, unless limited by local law, and then at the highest rate so
permitted.
18.7 Licensee agrees to reimburse Licensor for all reasonable costs (including
attorney's fees) incurred by Licensor for collecting any amount due under the Agreement.
18.8 The provisions of this License are considered confidential and may not be
disclosed to a third party without the consent of the other party(s), except: (a) as required by
statute, regulation or court order, (b) to a parent, affiliate or subsidiary company, (c) to an
auditing firm or legal counsel that are agreeable to the confidentiality provisions, or (d) to
Page 13 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
Lessees of Licensor's land and/or track who are affected by the terms and conditions of this
Agreement and will maintain the confidentiality of this Agreement.
18.9 Within thirty (30) days of an overpayment in a cumulative total amount of
One Hundred Dollars ($100.00) or more by Licensee to Licensor, Licensee shall notify Licensor
in writing with documentation evidencing such overpayment. Licensor shall refund the actual
amount of Licensee’s overpayment within 120 days of Licensor’s verification of such
overpayment.
19. CONTRACTOR’S ACCEPTANCE:
19.1 Licensee shall observe and abide by, and shall require Licensee’s Contractors
to observe and abide by the terms, conditions and provisions set forth in this Agreement. Prior to
any commencement of work under this Agreement by Licensee’s Contractor, Licensee shall
require Licensee’s Contractor to execute and deliver to Licensor the Contractor Acceptance form
attached hereto as Schedule A to acknowledge Licensee’s Contractor’s agreement to observe and
abide by terms and conditions of the Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Page 14 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate
(each of which shall constitute an original) as of the effective date of this Agreement.
Witness for Licensor: CSX TRANSPORTATION, INC.
_______________________________ By:_________________________________________
Print/Type Name:_____________________________
Print/Type Title:______________________________
Witness for Licensee: CITY OF MUSKEGON
_______________________________ By:_________________________________________
Who, by the execution hereof, affirms that he/she has
the authority to do so and to bind the Licensee to the
terms and conditions of this Agreement.
Print/Type Name:_____________________________
Print/Type Title:______________________________
Tax ID No.:__________________________________
Authority under Ordinance or
Resolution No._______________________________,
Dated ______________________________________.
Page 15 of 16 ø
AGREEMENT NO. CSX883729 Ø
Section 9, 19 and Schedule A
Schedule “A”
CONTRACTOR’S ACCEPTANCE
This Amendment is and shall be a part of Agreement No. CSX883729, and is
incorporated therein.
To and for the benefit of CSX TRANSPORTATION, Inc. (Licensor”) and to induce
Licensor to permit Contractor on or about Licensor’s property for the purposed of performing
work in accordance with the Agreement dated March 5, 2019, between Licensee and Licensor,
Contractor hereby agrees to abide by and perform all applicable terms of the Agreement,
including, but not limited to Sections 3, 9, 10 of the Agreement.
Witness for Licensor: CSX TRANSPORTATION INC.
_______________________ By:___________________________
Print/Type Name:_______________
Print/Type Title:________________
_______________________
Witness for Licensee’s Contractor LICENSEE’S CONTRACTOR
_______________________ By: _________________________
Who, by the execution hereof, affirms that
he/she has the authority to do so and to bind
the Licensee has the authority to do so and
to bind the Licensee to the terms and
conditions of this Agreement
NAME: __________________________
TITLE: __________________________
DATE: __________________________
Page 16 of 16 ø
Page 1 of 1
Account/Contract No. CSX883729
Customer Project No. 837930
Invoice Date 5/8/2019
Customer
City of Muskegon
933 Terrace Street
Muskegon, MI 49440
Please submit a copy of this statement with payment submission to the "Remit To"
address shown below.
Fees-At-A-Glance
Amount Due U.S. Dollars $ 21500.00
Fees Summary
Application Review Fee $ 5,250.00
Railroad Protective Liability $ 950.00
License Fee $ 15,300.00
Sales Tax*
Money on File
* Florida Sales tax applies to the license fee
Total Current Fees in U.S. dollars $ 21,500.00
CSX Federal ID No. 54-6000720
CSX Canadian ID No. 105203095 RC 0001
CSX Quebec ID No. 1022434469 IC 0001
Please remit payment to: CSX Transportation, Inc.
Legal Address: Mailing Address:
500 Water Street, J180 500 Water Street, J180
Jacksonville, FL 32202 Jacksonville, FL 32202
Questions? Contact: [email protected]
904.279.3953
Date: May 14th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: DPW Carbon Monoxide System Upgrade and Repairs
SUMMARY OF REQUEST:
Award a contract for upgrade and repair to the carbon monoxide monitoring and control
system at DPW to the low bidder.
Three contractors submitted bids for this project as follows:
• Foster Electric Company ................................. $8,650.00
• Fredrickson Electric, Inc. ................................. $11,676.50
• Belasco Electric ................................. $17,923.00
FINANCIAL IMPACT:
$8,650.00
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the project to the low bidder Foster Electric Company.
Date: May 14th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: Change Order #003 – West Shore CF Demolition
SUMMARY OF REQUEST:
Authorize staff to process Change Order #003 for the proposed demolition work at the
West Shore Correctional Facility.
Change Order #003 amends the contract to include removal of all existing underground
utilities from the site. This was not included in the original bid request, but was later
determined to be essential to facilitate future redevelopment.
FINANCIAL IMPACT:
$120,000.00
BUDGET ACTION REQUIRED:
None. Staff is seeking an amendment to the purchase agreement to offset the added
demolition costs. Costs will be reimbursed through the state MEDC grant if the
purchase agreement cannot be amended.
STAFF RECOMMENDATION:
Authorize staff to process Change Order #003 for the proposed demolition work at the West
Shore Correctional Facility.
CITY OF MUSKEGON
DETAILED CONTRACT CHANGE REQUEST
CONTRACTOR CONTRACT DATE 5/6/2019
Melching Inc. West Shore Correctional Facility Demolition CHANGE ORDER
No. 3
ITEM OF WORK UNIT QUANTITY QUANTITY QUANTITY QUANTITY UNIT AMOUNT AMOUNT
DESCRIPTION, REASON, LOCATION OF CHANGE OF MEASURE PROPOSAL AS BUILT INCREASE + DECREASE - COST INCREASE DECREASE
"Underground Utility Removal" Original demolition contract did not
require removal of underground utiliites. After discussion with
1 demolition contractor and potential end users it was determined that LSUM 0 1 $120,000.00 $120,000.00 $0.00
removal of the underground utilities from the site was recommended
to facilitate future redevelopment
2 $0.00 $0.00
3 $0.00 $0.00
4 $0.00 $0.00
CHANGE REQUEST EFFECIVE DATE: TOTALS $120,000.00 $0.00
ORIGINAL CONTRACT PRICE: $338,910.10
NET OF PREVIOUS CHANGE ORDERS: $20,485.00
NET OF CURRENT CHANGE ORDER: $120,000.00
REVISED CONTRACT PRICE: $479,395.10 41.45%
ENGINEERING DEPARTMENT CONTRACTOR APPROVAL CITY OF MUSKEGON APPROVAL
AUTHORIZED REPRESENTATIVE AND DATE AUTHORIZED REPRESENTATIVE AND DATE
PREPARED BY DATE PRINTED NAME AND TITLE PRINTED NAME AND TITLE
C:\Users\leo.evans\Desktop\West Shore CF Demo - Change Order #003 (2019-05-06) 5/6/2019 8:29 AM
Commission Meeting Date: May 14, 2019
Date: May 6, 2019
To: Honorable Mayor and City Commissioners
From: Finance
RE: Financing for Roof Replacement at L C Walker Arena
SUMMARY OF REQUEST: At the December 11, 2018 City Commission
meeting the Commission voted to accept the bid from Certified Building Solutions for
the roof replacement at the LC Walker Arena for $1,051,413. At this time we are
seeking authorization to enter into a lease agreement with Team Financial for the
roof replacement. The proposed terms are for a seven year lease at 4.57% interest
rate with the City purchasing the roof at the end of the lease for $1.
FINANCIAL IMPACT: Annual payments of $175,800.
BUDGET ACTION REQUIRED: This will be included in the 2019-2020 budget.
STAFF RECOMMENDATION: Authorize the staff to enter into a lease
agreement with Team Financial for the roof replacement.
Commission Meeting Date: May 14, 2019
Date: May 9, 2019
To: Honorable Mayor and City Commissioners
From: Finance
RE: Notice of Intent Resolution Sanitary Sewer
Revenue Bonds
SUMMARY OF REQUEST: A notice of Intent Resolution for Sanitary Sewer
System Bonds was approved at the March 12, 2019 meeting for $8.5 million. Based
on recent estimates of the cost of the project we believe it is necessary to request an
additional authorization for $3 million. This will bring the total amount of bonds issued
to finance the acquisition and construction of the project to shall not exceed $11
million.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the Notice of Intent Resolutions for an
additional $3 million Sanitary Sewer System Revenue Bonds bringing the total not to
exceed $11 million.
NOTICE OF INTENT RESOLUTION
SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 2019
(STATE REVOLVING FUND PROJECT)
___________________________________
CITY OF MUSKEGON
County of Muskegon, State of Michigan
___________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County of
Muskegon, State of Michigan, held on the 14th day of May, 2019, at 5:30 p.m., prevailing Eastern
Time.
PRESENT: Members _________________________________________________________
__________________________________________________________________
ABSENT: Members__________________________________________________________
The following preamble and resolution were offered by Member: __________________
and supported by Member: ____________________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
has determined that it is necessary for the public health, safety and welfare of the City to acquire,
construct, furnish and equip improvements to the Sanitary Sewer System of the City (the
“System”), including sewer system rehabilitation and replacement of existing sewer lines, together
with pump station improvements and all related appurtenances and attachments (the “Project”);
and
WHEREAS, the City has been advised by the Michigan Department of Environmental
Quality (“MDEQ”) that financial assistance to accomplish the acquisition and construction of all
or a portion of the Project is available through the State Revolving Fund (“SRF”) loan program
administered by the MDEQ and the Michigan Finance Authority; and
WHEREAS, the City has made application for participation in the SRF loan program; and
WHEREAS, a notice of intent to issue revenue bonds must be published before the issuance
of the Bonds in order to comply with the requirements of Section 33 of Act 94; and
WHEREAS, on March 24, 2019 the City published a notice of intent to issue bonds in in
an amount not to exceed Eight Million Five Hundred Thousand Dollars ($8,500,000) for the
Project (the “Prior Notice”); and
WHEREAS, based on revised estimates of the cost of the Project, the City now anticipates
that it will be necessary to issue bonds in excess of the amount described in the Prior Notice and
desires to publish a new notice for an additional authorization of bonds in an amount not to exceed
Three Million Dollars ($3,000,000) which notice shall provide additional borrowing authority for
the Project and shall be in addition to the principal amount of the bonds authorized by the Prior
Notice; and
WHEREAS, the total amount of bonds to be issued to finance the acquisition and
construction of the Project shall not exceed Eleven Million Five Hundred Thousand Dollars
($11,500,000); and
WHEREAS, the City intends at this time to state its intentions to be reimbursed from
proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to issuance
of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk is authorized and directed to publish a notice of intent to issue bonds
in the Muskegon Chronicle, a newspaper of general circulation in the City.
2. The notice of intent shall be published as a display advertisement not less than one
quarter (1/4) page in size in substantially the form attached to this resolution as Exhibit A.
3. The City Commission does hereby determine that the foregoing form of Notice of
Intent to Issue Bonds, and the manner of publication directed, is adequate notice to the electors of
the City and users of the System, and is the method best calculated to give them notice of the City’s
intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, and the right of
referendum of the electors with respect thereto, and that the provision of forty-five (45) days within
which to file a referendum petition is adequate to insure that the City’s electors may exercise their
legal rights of referendum, and the newspaper named for publication is hereby determined to reach
the largest number of persons to whom the notice is directed.
4. The City makes the following declarations for the purpose of complying with the
reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as
amended:
(a) As of the date hereof, the City reasonably expects to reimburse itself
for the expenditures described in (b) below with proceeds of debt to
be incurred by the City.
(b) The expenditures described in this paragraph (b) are for the costs of
acquiring the Project which were paid or will be paid subsequent to
sixty (60) days prior to the date hereof from the Sanitary Sewer
System funds of the City.
(c) The maximum principal amount of debt expected to be issued for
the Project, including issuance costs, is $11,500,000.
(d) A reimbursement allocation of the expenditures described in (b)
above with the proceeds of the borrowing described herein will
occur not later than 18 months after the later of (i) the date on which
the expenditure is paid, or (ii) the date the related Project are placed
in service or abandoned, but in no event more than three (3) years
after the original expenditure is paid. A reimbursement allocation
is an allocation in writing that evidences the City’s use of the
2
proceeds of the debt to be issued for the Project to reimburse the
City for a capital expenditure made pursuant to this resolution.
5. Miller, Canfield, Paddock and Stone, P.L.C. is hereby confirmed as Bond Counsel
to the City in connection with the issuance of the Bonds.
6. Robert W. Baird & Co., Inc. is hereby confirmed as the registered municipal advisor
to the City in connection with the issuance of the Bonds.
7. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution be and the same hereby are rescinded.
AYES: Members:_________________________________________________________
_________________________________________________________________
NAYS: Members:_________________________________________________________
RESOLUTION DECLARED ADOPTED.
__________________________________________
Ann Marie Meisch, MMC
City Clerk
I hereby certify that the attached is a true and complete copy of a resolution adopted by the City
Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a regular
meeting held on the 14th day of May, 2019, and that public notice of said meeting was given
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that
minutes of the meeting were kept and will be or have been made available as required by said Act.
__________________________________________
Ann Marie Meisch, MMC
City Clerk City Clerk
3
EXHIBIT A
NOTICE TO TAXPAYERS AND ELECTORS OF THE
CITY OF MUSKEGON AND TO USERS OF THE
CITY’S SANITARY SEWER SYSTEM
OF INTENT TO ISSUE REVENUE BONDS AND THE
RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Muskegon
County, Michigan, intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of
Michigan, 1933, as amended, in one or more series in a total amount not to exceed Three Million
Dollars ($3,000,000), for the purpose of paying all or part of the cost to acquire, construct, furnish
and equip improvements to the Sanitary Sewer System of the City (the “System”), including sewer
system rehabilitation and replacement of existing sewer lines, together with pump station
improvements and all related appurtenances and attachments (the “Project”). The City previously
published a notice of intent to issue bonds for the Project on March 24, 2019 in an amount not to
exceed Eight Million Five Hundred Thousand Dollars ($8,500,000) (the “Prior Notice”). This
principal amount of bonds to be issued and sold pursuant to this notice is in addition to the principal
amount of bonds to be issued and sold pursuant to the Prior Notice.
SOURCE OF PAYMENT OF REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS SHALL BE
PAYABLE from the revenues received by the City from the operations of the Sanitary Sewer
System except as provided below in the case of bonds sold to the Michigan Finance Authority in
connection with the State of Michigan’s State Revolving Fund program. The revenues will consist
of rates and charges billed to the users of the system, a schedule of which is presently on file in
the office of the City Clerk. The rates and charges may from time to time be revised to provide
sufficient revenues to provide for the expenses of operating and maintaining the system, to pay the
principal of and interest on the bonds and to pay other obligations of the system.
BOND DETAILS
THE REVENUE BONDS will be payable in annual installments not to exceed twenty (20)
in number and will bear interest at the rate or rates to be determined at public or private sale but in
no event to exceed such rates as may be permitted by law on the unpaid balance from time to time
remaining outstanding on said bonds.
ADDITIONAL SOURCES OF PAYMENTS FOR BONDS
SOLD TO MICHIGAN FINANCE AUTHORITY
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE FOR THE PAYMENT OF THE BONDS
MONEY RECEIVED OR TO BE RECEIVED BY THE CITY DERIVED FROM IMPOSITION
OF TAXES BY THE STATE AND RETURNED OR TO BE RETURNED TO THE CITY AS
PROVIDED BY LAW, except for money the use of which is prohibited for such purposes by the
State Constitution. The City may enter into an agreement providing for the payment of taxes,
which taxes are collected by the State and returned to the City as provided by law, to the Michigan
A-1
Finance Authority or a trustee, and such funds may be pledged for the payment of the revenue
bonds.
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE ITS LIMITED TAX FULL FAITH AND
CREDIT AS SECURITY FOR THE REVENUE BONDS, IN WHICH EVENT DEBT SERVICE
ON THE BONDS SHALL BE PAYABLE EITHER FROM REVENUES OF THE SYSTEM OR
FROM AD VALOREM TAXES THAT MAY BE LEVIED ON ALL TAXABLE PROPERTY
IN THE CITY, SUBJECT HOWEVER, TO CONSTITUTIONAL, STATUTORY AND
CHARTER TAX RATE LIMITATIONS.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS
UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10%
OF THE REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY CLERK
WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF SUCH
PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING
VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY VOTING
THEREON.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of
Michigan, 1933, as amended.
ADDITIONAL INFORMATION will be furnished at the office of the City Clerk upon
request.
Ann Marie Meisch, MMC
City Clerk, City of Muskegon
33598996.1\063684-00046
A-2
Commission Meeting Date: May 14, 2019
Date: May 7, 2019
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Public Hearing for Amendment to the Brownfield
Plan for DMDC Redevelopment Project- Former
Muskegon Mall
SUMMARY OF REQUEST: To hold a public hearing and approve the attached resolution
approving and adopting the amendment for the first amendment to the Brownfield Plan for
DMDC Redevelopment Project – Former Muskegon Mall. The amendment is intended to
identify additional eligible activities proposed for the eligible property owned by Sweetwater
Development, LLC (“Sweetwater”) that was previously included in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax increment Financing will be used to reimburse the
developer for “eligible expenses” incurred in association with development of The Leonard
building downtown, which is anticipated to be an $8.7 million investment.
“Eligible Expenses” would be reimbursed to Sweetwater starting in 2020. The estimated tax
capture and payment schedule is included as Attachment L-4 in the proposed Brownfield
Plan Amendment.
After all eligible costs incurred by the various parties are reimbursed, the BRA may, as the
capture term provides, continue to capture local taxes for five more years for deposit into a
Local Brownfield Revolving Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public hearing
for May 14, 2019 at their April 23, 2019 meeting. Since that time, a notice of the public
hearing has been sent to taxing jurisdictions. In addition, the Brownfield Redevelopment
Authority approved the Plan amendment on March 12, 2019 and further recommends that
the Muskegon City Commission approve the Plan amendment.
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
First Amendment to the Brownfield Plan for DMDC Redevelopment Project-
Former Muskegon Mall
Sweetwater Development, LLC
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of
Muskegon, County of Muskegon, Michigan (the "City"), held in the City Commission
Chambers, on the 14th day of May 2019, at 5:30 p.m., prevailing Eastern Time.
PRESENT: Members
__________________________________________________________________
__________________________________________________________________
ABSENT: Members
__________________________________________________________________
The following preamble and resolution were offered by Commissioner
_________________ and supported by Commissioner _________________:
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment to identify “eligible activities” for the Sweetwater Development,
LLC project; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the taxing jurisdictions levying taxes subject to capture to express
their views and recommendations regarding the Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 10 days has passed since the City Commission
provided notice of the proposed Brownfield Plan Amendment to the taxing units;
and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on May 14, 2019.
NOW, THEREFORE, BE IT RESOLVED:
1. That the Brownfield Plan Amendment constitutes a public purpose
under Act 381.
2. That the Brownfield Plan Amendment meets all the requirements of
Section 13(1) of Act 381.
3. That the proposed method of financing the costs of the eligible
activities, as identified in the Brownfield Plan and defined in Act 381, is
feasible and the Authority has the authority to arrange the financing.
4. That the costs of the eligible activities proposed in the Brownfield Plan
Amendment are reasonable and necessary to carry out the purposes
of Act 381.
5. That the amount of captured taxable value estimated to result from the
adoption of the Brownfield Plan Amendment is reasonable.
6. That the Brownfield Plan Amendment in the form presented is
approved and is effective immediately.
7. That all resolutions or parts of resolutions in conflict herewith shall be
and the same are hereby rescinded.
Be It Further Resolved that the Mayor and City Clerk are hereby
authorized to execute all documents necessary or appropriate to implement the
provisions of the Brownfield Plan Amendment.
AYES: Members
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
NAYS:
Members__________________________________________________________
__________________________________________________________________
RESOLUTION DECLARED ADOPTED.
_____________________________
Ann Meisch, City Clerk
_____________________________
Stephen J. Gawron, Mayor
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held on May 14, 2019, and that said
meeting was conducted and public notice of said meeting was given pursuant to
and in full compliance with the Open Meetings Act, being Act 267, Public Acts of
Michigan, 1976, as amended, and that the minutes of said meeting were kept and
will be or have been made available as required by said Act.
_____________________________
Ann Meisch, City Clerk
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
FIRST AMENDMENT TO THE BROWNFIELD
PLAN FOR DMDC REDEVELOPMENT
PROJECT -
FORMER MUSKEGON MALL
Original Plan Approved by the Board of the City of Muskegon Brownfield
Redevelopment Authority on February 23, 1998, with amendments approved
8/10/98;6/13/00; 4/15/03; 7/7/03; 4/20/04; 6/21/04; 9/8/04; 9/5/06; 2/23/07;
5/15/07; 11/12/07; 5/13/08; 6/24/08 and 4/9/13.
Original Plan Approved by the City Commission of the City of Muskegon on April
14, 1998, with amendments approved 8/11/98; 7/11/00; 5/27/03; 8/12/03;
5/25/04; 7/13/04; 7/27/04; 10/12/04; 10/24/06, 3/27/07; 6/12/07; 1/8/08; 5/13/08;
6/24/08 and 5/14/13
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
INDEX
I. INTRODUCTION
II. GENERAL PROVISIONS
A. Costs of the Brownfield Plan
B. Method for Financing Costs of Plan
C. Duration of the Brownfield Plan
D. Displacement/Relocation of Individuals on Eligible
Properties
E. Local Site Remediation Revolving Fund
III. SITE SPECIFIC PROVISIONS
A. Kirksey/Anaconda Property (Approved 4/14/98)
B. Dilesco Corporation Property (Approved 8/11/98)
C. Beacon Recycling (Approved 7/11/00)
D. Verplank Dock Company (Approved 5/27/03)
E. Gillespie Development Property (Approved 8/12/03)
F. Loft Properties, LLC Property (Approved 8/12/03)
G. Parmenter O'Toole Property (Approved 8/12/03)
H. "The WaterMark" Project (Approved 5/25/04)
I. Northern Machine Tool (Approved 7/13/04)
J. Terrace Lots Office Building (Approved 7/13/04)
K. Art Works Apartments (Approved 7/27/04)
L. Former Muskegon Mall (Approved 10/12/04)
M. Vida Nova at Edison Landing (Approved 10/10/06)
N. Western Ave. Properties LLC and Port City Development Services,
LLC (Approved 10/10/06)
O. Viridian Place at Edison Landing (Approved 10/24/06)
P. Hot Rod Harley (Approved 3/27/07)
Q. Sidock Building Project (Approved 6/12/07)
R. Heritage Square Town Homes (Approved 1/8/08)
S. Betten Auto Dealerships (Approved 5/13/08)
T. Parkland Muskegon Mixed Use Project (Approved 6/24/08)
U. Terrace Point Landing Redevelopment Project (Approved 5/14/13)
V. P&G Holdings NY, LLC (Approved 1/10/17)
City of Muskegon Brownfield Plan Amendment
December 2018
I. INTRODUCTION
In order to promote the revitalization of commercial, industrial, and residential
properties within the boundaries of the City of Muskegon (the "City"), the City
established the City of Muskegon Brownfield Redevelopment Authority (the
"Authority") pursuant to Act 381, Public Acts of Michigan, as amended ("Act 381"),
and a resolution adopted by the Muskegon City Commission on February 10, 1998.
Terms defined in Act 381 and applicable sections of the statute are noted in italics
throughout this document.
This Brownfield Plan ("Plan") was originally intended to address the redevelopment
of eligible properties within the City that are impacted by the presence of hazardous
substances in concentrations that exceed Michigan's Part 201 Generic Cleanup
Criteria ("facilities") or that have been determined to be Functionally Obsolete or
Blighted. By facilitating redevelopment of underutilized eligible properties, the Plan
is intended to promote economic growth for the benefit of the residents of the City
and all taxing units located within and benefited by the Authority.
The Plan is intended to be a living document, which can be amended as necessary
to achieve the purposes of Act 381. It is specifically anticipated that properties will
be continually added to the Plan as new projects are identified. The Plan contains
general provisions applicable to the Plan, as well as property-specific information
for each project. The applicable Sections of Act 381 are noted throughout the Plan
for reference purposes.
The Plan contains the information required by Section 13(2) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or
the Director of Planning and Economic Development.
II. GENERAL PROVISIONS
A. Costs of the Brownfield Plan (Section 13(2)(a))
Any site-specific costs of implementing the Plan are described in the site-specific
section of the Plan. Site-specific sources of funding may include tax increment
financing revenue generated from new development on eligible brownfield
properties, state and federal grant or loan funds, and/or private parties. Where
private parties finance the costs of eligible activities under the Plan, tax increment
revenues may be used to reimburse the private parties. The initial costs related
to preparation of the Plan were funded by the City's general fund. Subsequent
amendments to the Plan may be funded by the person requesting inclusion of a
project in the Plan, and if eligible, may be reimbursed through tax increment
financing.
The Authority intends to pay for administrative costs and all of the things necessary
or convenient to achieve the objectives and purposes of the Authority with fees
charged to applicants to be included in the Plan and any eligible tax increment
revenues collected pursuant to the Plan, in accordance with the provisions of Act
381, including, but not limited to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating the Plan, including legal fees, and
iii) costs for Plan implementation
Tax increment revenues that may be generated and captured by this Plan are
identified in the site-specific sections of this Plan.
B. Method for Financing Costs of Plan and Bonded Indebtedness (Section
13(2)(d) and (e))
The City or Authority may incur some debt on a site-specific basis. Please refer to
the site-specific section of the Plan for details on any debt to be incurred by the
City or Authority. When a property proposed for inclusion in the Plan is in an area
where tax increment financing is a viable option, the Authority intends to enter into
Development and Reimbursement Agreement with the property
owners/developers of properties included in the Plan to reimburse them for the
costs of eligible activities undertaken pursuant to the Plan. Financing arrangements
will be specified in the Development and Reimbursement Agreement, and also
identified in the site-specific section of the Plan.
C. Duration of the Brownfield Plan (Section 13(2)(f))
The Plan, as it applies to a specific eligible property, shall be effective up to five
(5) years after the year in which the total amount of any tax increment revenue
captured is equal to the total costs of eligible activities attributable to the specific
eligible property, or thirty (30) years from the date of first tax capture under the
Plan as it relates to an individual site, whichever is less. The total costs of eligible
activities include the cost of principal and interest on any note or obligation issued
by the Authority to pay for the costs of eligible activities, the reasonable costs of
a Work Plan, the actual costs of the Michigan Department of Environmental
Quality’s or Michigan Strategic Fund’s review of the work plan, and
implementation of the eligible activities.
D. Displacement/Relocation of Individuals on Eligible
Properties (Section 13(2)(i),(j)(k)(l))
At this time, eligible properties identified in the Plan do not contain residences, nor
are there any current plans or intentions by the City for identifying eligible
properties that will require the relocation of the residences. Therefore the
provisions of Section 13(2)(i-l) are not applicable at this time.
E. Local Brownfield Revolving Fund (Section 8; Section 13(5)(b))
Whenever the Plan includes a property for which taxes will be captured through
Tax Increment Financing (“TIF”) provided by Act 381, it is the Authority's intent to
establish a Local Brownfield Revolving Fund ("Fund"). The Fund will consist of tax
increment revenues that exceed the costs of eligible activities incurred on an
eligible property, as specified in Section 13(5) of Act 381. Section 13(5) authorizes
the capture of TIF from an eligible property for up to 5 years after the time that
capture is required for the purposes of reimbursing the costs of eligible activities
identified in the Plan. It is the intention of the Authority to continue to capture tax
increment revenues for up to 5 years after eligible activities are funded from those
properties identified for tax capture in the Plan, provided that the time frame
allowed by Act 381 for tax capture is sufficient to accommodate capture to
capitalize a Fund. The amount of school operating taxes captured for the Fund will
be limited to the amount of school operating taxes captured for eligible department
specific activities under the Plan. It may also include funds appropriated or
otherwise made available from public or private sources.
The Fund may be used to reimburse the Authority, the City, and private parties
for the costs of eligible activities at eligible properties and other costs as
permitted by Act 381. It may also be used for eligible activities on eligible
property for which there is no ability to capture tax increment revenues. The
establishment of the Fund will provide additional flexibility to the Authority in
facilitating redevelopment of brownfield properties by providing another source
of financing for necessary eligible activities.
III. SITE SPECIFIC PROVISIONS
L. FORMER MUSKEGON MALL – FIRST AMENDMENT
Eligibility and Project Description (Sec. 13(2)(h))
Mall Development
The Plan that added the original Mall Property (defined below) was originally
adopted in October 2004 to accommodate Downtown Muskegon Development
Corporation’s (“DMDC”) acquisition and development of the former Muskegon
Mall property in downtown Muskegon. A majority of the buildings on the 23-
acre site had been demolished (See Map included as Attachment L-1.). The
intent of the DMDC was to prepare the site for development and market the site
to developers to create a mixed use residential, commercial, and retail
development in the downtown.
Originally, the entire former Mall property was established as one parcel (the
"Mall Property") when the Plan was adopted. The legal description of the
Mall Property is included as Attachment L-2 and the eligible property included
all new taxable personal property.
The Mall Property is considered a "facility" pursuant to Part 201 of the Natural
Resources and Environmental Protection Act, and is therefore an eligible
property pursuant to Act 381. Soils samples collected by Environmental
Resources Management in June 2004 found concentrations of lead and
mercury that exceed the Part 201 generic residential cleanup criteria.
The Mall Property was marketed by DMDC as a multi-developer site. Lots
have been sold according to the needs of each developer under a
condominium structure. To assure continued beautification, appropriate
quality, and architectural integrity, restrictive covenants have been
implemented by the DMDC to assure that the project develops according to the
"Imagine Muskegon" plan. Overall guidelines for the development (i.e.: building
height, style, etc.) have been developed as part of each sales agreement.
The Mall Property is serviced by city water and sewer, and has appropriate
electric and natural gas service. Where appropriate, utilities have been
upgraded and improved. Where possible, electrical service and cable was
installed underground. As part of the original site development, a significant
amount of infrastructure work was completed in preparation for future
redevelopment. A majority of the work was completed using grant and loan
funds and the intent was to utilize TIF under the Plan to repay the loans.
The Mall Property was subject to a tax-free Renaissance Zone through
approximately 2012 and the intent was to begin capturing and reimbursing the
costs of eligible activities, including infrastructure improvements, demolition, site
preparation, and environmental response activities undertaken after the Plan was
approved.
The DMDC had originally estimated redevelopment would generate private
investment of $60 million and create approximately 225 jobs.
Sweetwater Development Project
The Plan is being amended for the purpose of supporting specific eligible
activities associated with a new project located within the boundaries of
the Mall Property in the heart of downtown. Sweetwater Development,
LLC (“Sweetwater”) is proposing to redevelop a portion of the vacant lot at
292 W. Western Avenue known as Unit 24 of the Downtown Muskegon
Development Center No.1 condominium plan consisting of approximately
0.32 acres located at the corner of W. Western Avenue and 2nd Street in
downtown Muskegon (the “Sweetwater Property”). Sweetwater is
proposing to construct a new six-story mixed use building that will contain
approximately 48,000 sf and include a mix of first floor retail, office and
residential space above approximately 8,000 sf of underground parking
that would provide an estimated twenty-eight (28) parking spaces (the
“Sweetwater Project”). The Sweetwater Project’s first floor retail space
would include an estimated two (2) units with approximately 7,200 sf and
two (2) stories of commercial office space above with approximately 7,300
sf on each floor. The Sweetwater Project’s remaining three (3) floors
would include six (6) units on each floor (18 total units) with a mix of one
and two bedroom units.
The Sweetwater Project will provide mixed use infill development along W.
Western Avenue in the heart of downtown Muskegon. Total capital
investment is estimated at approximately $8.7 million and it is currently
anticipated construction would begin in spring 2019 with eligible activities
completed within 12 months.
Eligible Activities, Financing, Cost of Plan (Sec. 13(2)(a), (b), (c) (g)
Mall Development
Eligible activities that have been conducted on the Property include department
specific activities, demolition, lead and asbestos abatement, infrastructure
improvements, site preparation, and brownfield plan and work plan preparation
and development. TIF has been and will be used to reimburse the City, DMDC,
and developers for the cost of eligible activities undertaken by those parties and
authorized pursuant to Act 381. No costs shall be reimbursed with school
operating tax increment revenues unless they are conducted pursuant to a work
plan approved by the Michigan Department of Environmental Quality or the
Michigan Strategic Fund, unless otherwise authorized by Act 381.
The following are eligible activities that have been and may be reimbursed
through Brownfield tax increment revenues:
1. Department Specific Activities: Activities necessary for developers to
undertake their environmental due diligence, and any necessary costs
related to Due Care obligations, including preparation of Due Care Plans
and implementation of Due Care Response Activities, are estimated at
$100,000. This amount is intended to accommodate the needs of the
several developers anticipated to be involved in the Mall Property
redevelopment and include Phase I, II and BEAs.
2. Demolition Activities, including Lead and Asbestos Abatement:
Demolition of most of the buildings on the Mall Property was completed
prior to original adoption of the Plan. However, subsequent developers
may require selective interior and exterior demolition of remaining
improvements on the Mall Property. Demolition costs were estimated
at $700,000.
3. Infrastructure Improvements: First, Second, Jefferson and Market
Streets were rededicated in a grid similar to the original street layout for
downtown Muskegon. DMDC sold the road and sidewalk right-of-ways
to the City to accommodate rededication of these streets. The City
then constructed the roads, sidewalks, streetscape, lighting and design.
The cost for the improvements were estimated at $1,000,000 and initial
costs were covered through a combination of grants and loans,
including a ULA Loan for $700,000 that TIF is being used to repay.
4. Site Preparation Activities: Surveys, borings, testing, staking, etc. costs
were estimated at $100,000.
In addition to the eligible activities listed above, the Authority intends to capture
tax increment revenues for the following costs, as applicable and available by
law:
Brownfield Redevelopment Authority Administrative Costs: Reasonable
and actual administrative and operating costs of the Authority from non-
school taxes would be captured. Up to $50,000/year will be captured
from the Mall Property for Administrative Costs of the Authority.
Financing Costs: The Authority intends to capture tax increment revenue to
pay for interest on the eligible expenses incurred. Interest is calculated at
5%, compounded annually, with payback beginning in 2013.
Local Brownfield Revolving Fund: The Authority intends to capture local
tax increment revenue for up to five years after all eligible activities plus
interest are reimbursed, for deposit into the Fund. The amount of school
operating taxes captured for the Fund will be limited to the amount of
school operating taxes captured for MDEQ eligible activities under the
Plan. There will be no use of the Fund to finance the redevelopment.
Subject to the priority of capture outlined below for the Sweetwater Project, an
estimate of the yearly captured taxable value and tax increment revenues for
from the Mall Property and Sweetwater Property are shown in the tax capture
table included as Attachment L-4. This table also shows the estimate of the
impact of tax increment financing on the revenues of all taxing jurisdictions
affected by this tax capture. The Mall Property and Sweetwater Property are
located within the City’s Downtown Development Authority (“DDA”) tax increment
financing boundary and it is expected that the Authority will formalize a pass-
through agreement with the DDA to ensure full brownfield capture by the
Authority for the purpose of reimbursing eligible activities under the Plan.
Sweetwater Development Project
It is intended that the amended Plan shall provide priority for reimbursement of
eligible activities conducted on the Sweetwater Property for the Sweetwater
Project, including department specific activities (i.e. Phase I and II Environmental
Site Assessment), site preparation, and infrastructure improvements. TIF
revenues generated from the Sweetwater Project will first be used to reimburse
the Sweetwater Project developer for the cost of eligible activities undertaken by
the developer on the Sweetwater Property. Following full reimbursement of the
Sweetwater Project eligible activities, TIF generated by the Sweetwater Property
may be used for any other purpose allowable under Act 381 and the Plan.
The following are eligible activities that may be reimbursed through TIF
revenues:
1. Department Specific Activities: Phase I and II Environmental Site
Assessments have been completed prior to acquisition of the Sweetwater
Property at a cost of up to $20,000.
2. Site Preparation: Site preparation activities including temporary fencing,
temporary security, temporary erosion control, grading and land balancing,
sheet piling and excavation for underground parking are estimated at
$80,000.
3. Infrastructure Improvements: Infrastructure improvements made in
connection with the Sweetwater Project include the construction of an
underground parking structure that will provide approximately eighteen (18)
spaces with another ten (10) above and road repairs/improvements in the
public ROW and are estimated at $833,000.
4. Contingency: A 15% contingency is included to cover unexpected cost
overruns encountered during rehabilitation is estimated at $136,950.
5. Brownfield Plan and/or Work Plan Preparation and Implementation: The
costs incurred to prepare, develop and implement this amended Plan
amendment and an Act 381 Work Plan are estimated at $30,000.
Financing (Section 13(2)(d)
Financing to pay for infrastructure costs for the original Mall Property
redevelopment came from a variety of grants and loans. It was intended TIF
would be used to cover the cost of eligible activities not covered by the grant
funds and to repay any outstanding loans used to pay for the infrastructure.
Remaining eligible activities funded by private developers would be reimbursed
under the amended Plan as-needed in order to foster redevelopment of the
downtown. A Development and Reimbursement Agreement will be negotiated
with any developer incurring eligible activities to provide for reimbursement
through TIF.
Effective Date of Inclusion in Brownfield Plan
The Mall Property was originally added to the Plan on October
12, 2004 with available capture commencing in 2013. It is
intended the duration of the Plan capture is the lesser of full
reimbursement of eligible activities or 30 years with capture
beginning no later than the availability of capture or 2009,
whichever comes first.
ATTACHMENT L-1
SITE MAP
Mall Property
DOWNTOWN REDEVELOPMENT
HOOKER DE JONG
O DOWNTOWN MUSKEGON PEVELPPMENr CORP
n. ,
10. MIC-ON Isfa.3,4
alchiletIS C=engineers
Sweetwater Property
ATTACHMENT L-2
LEGAL DESCRIPTION
CITY OF MUSKEGON
REVISED PLAT OF 1903
MUSKEGON MALL PROPERTY
THAT PART OF
BLK 309, BLK 310, ELK 311,
BLK 312, BLK 559, ELK 560,
BLK 561, BLK 564,
AND BLK 565 DESC AS
ENTIRE BLK 309
LYING WLY OF WLY LINE TERRACE ST AS RELOCATED
(WIN LINE OF TERRACE ST RELOCATED DESC AT END OF DESC)
INCLUDING E/W AND N/S ALLEYS VACATED IN SD BLK
ALSO ELK 310 LOTS 1 TO 11 INCLUSIVE
AND NLY 1/2 OF VAC E/W ALLEY ADJ THERE TO
AND LOT 18 AND SLY 1/2 OF E/W ALLEY ADJ THERE TO SD BLK 310
ALSO ENTIRE ELK 311 EXC E/W ALLEY IN SD BLK
ALSO ENTIRE BLK 312 INCLUDING ALL VAC ALLEYS TN SD BLK
ALSO LOTS 7 TO 16 INCLUSIVE BLK 559
LYING SLY OF MORRIS ST AND WLY OF TERRACE ST AS RELOCATED
(SEE DESCRIPTION OF MORRIS/TERRACE BELOW)
ALSO ENTIRE ELK 560 INCLUDING VAC ALLEY IN SD BLK
ALSO LOTS 3 TO 15 BLK 561 LYING SELY OF SELY LINE MORRIS ST
AND SELY 1/2 OF VAC 18 FT ALLEY THAT RUNS SW TO NE IN SD BLK 561
ALSO LOTS I AND 2 AND LOT 7 AND LOTS 8 TO 13 INCLUSIVE BLK 564
ALSO LOTS 1 TO 18 INCLUSIVE ELK 565
AND ENTIRE VAC ALLEY ADJ TO LOTS 3 TO 15 INCLUSIVE SD BLK 565
ALSO INCL ENTIRE VAC WESTERN AVE
ELY OF 3RD ST AND WLY OF TERRACE ST AS RELOCATED
ALSO INCL VAC JEFFERSON ST N OF CLAY AVE
ALSO INCL VAC JEFFERSON ST N OF WESTERN AVE
AND S OF MORRIS AVE
ALSO INCL VAC MARKET ST WLY OF TERRACT ST (RELOCATED) AND ELY
OF A LINE DESC AS BEG AT SE COR LOT 2 ELK 561
TH SELY ALD E LINE SD LOT 2 IF EXTENDED 33 FT
TH SWLY ALG C/L OF MARKET ST
TO INTERSECTION WITH WESTERN AVE FOR POE OF SD LINE
ALSO INCL SWLY 1/2 OF VAC 1ST ST
ADJ TO LOTS 13 14 AND ALLEY IN BLK 311
ALSO INCL ENTIRE VAC FIRST STREET
LYING N OF NLY ALLEY SD BLK 311
AND S OF A LINE DESC AS
COM AT NE COR LOT 13 BLK 564
TH NE ALONG EXTENTION OF N LINE SD LOT 13 10 FT M/L
TH S 86D OOM 005 E 5.66 FT
TH S 41D 33M 00S E 43.1 FT
TH S 86D OOM 005 E 17.9 FT
' .Ju1.14. 2004 12:31V11 MUSP‘blIN Lynn
THN 49D 00M 00S E 199.83 FT TO POE OF SD LINE
ALSO TNCL THAT PART OF 2ND ST
LYING SLY OF SLY LINE OF ALLEY IN ELK 565
IF EXTENDED ELY TO NW COR LOT 8 BLK 564
ALSO INCL THAT PART OF SWLY 1/2 OF 2ND ST
AD1 TO LOT 18 BLK 565 AND LOTS BLK 564
(RELOCATED LINES OF MORRIS AVENUE AND TERRACE ST IS AS FOLLOWS:
COM AT SW COR LOT 19 ELK 309
THNELY ALG N LINE CLAY AVE 338.40 FT FOR POB
OF WLY LINE TERRACE ST
'MN 34D OIM 00S W 190.25 FT
TH NWLY ALO SWLY LINE TERRACE ST
ON ARC OF 482.50 ET RAD CURVE TO LEFT 221.25 FT
(LONG CHORD BEARS N 50D 40M W 219.27 FT)
THN 63D 48M W ALO SWLY LINE TERRACE ST 284.90 FT
TH N 63D 48M W ALO SWLY LINE TERRACE ST 211.80 FT
TI! WLY ALG ARC OF 82 FT RAD CURVE TO LEFT128.47 FT
(LONG CHORD BEARING S 71D 19M W 115.73 FT
TO My LINE MORRIS AVE)
AND POE OF WLY LINE TERRACE ST RELOCATED
ATTACHMENT L-3
SUMMARY OF ELIGIBLE ACTIVITIES
FORMER MUSKEGON MALL
1
Eligible Activities Costs
Mall Cost Sweetwater Cost
BEA and Due Care Activities $100,000 $20,000
MDEQ Eligible Activities Total Cost $100,000 $20,000
Demolition $700,000 $0
Site Preparation $100,000
Temporary Construction Fencing $5,000
Temporary Erosion Control $5,000
Temporary Security/Shoring of Utilities $15,000
Excavation for underground parking,
Land Balancing and Grading $55,000
Site Preparation Sub-Total $100,000 $80,000
Infrastructure Improvements $1,000,000
Parking Structure (Private)
A/E $48,616
Sheet piling $35,000
Concrete $460,134
Plumbing $25,000
Metals $25,000
Waterproofing $75,000
Doors/Openings $12,000
Parking Equipment $17,500
Fire Protection $35,000
HVAC $60,000
Electrical $24,750
Improvements in Right of Way (Public)
Sidewalks 833 @ $6 $5,000
Curb and Gutter 250LF @ $20 $5,000
Concrete Paving Repair $5,000
Infrastructure Improvements Sub- $1,000,000 $833,000
Total
Total Eligible Activities $1,900,000 $933,000
Contingency (15%) $139,950
Brownfield/Work Plan Preparation
and Development $30,000
Total Eligible Activities $1,900,000 $1,102,950
*Interest on Mall costs will be reimbursed with Interest up to
$5%.
ATTACHMENT L-4
TAX CAPTURE ESTIMATES
FORMER MUSKEGON MALL
Tax Increment Revenue Capture Estimates
Former Muskegon Mall
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
1.50%
Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Calendar Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ - $ - $ - $ - $ 3,200,391 $ 3,442,850 $ 3,117,735 $ 3,187,686 $ 3,106,755 $ 3,153,356 $ 3,200,657 $ 3,248,667 $ 3,297,397 $ 3,346,857
Incremental Difference (New TV - Base TV) $ - $ - $ - $ - $ 3,200,391 $ 3,442,850 $ 3,117,735 $ 3,187,686 $ 3,106,755 $ 3,153,356 $ 3,200,657 $ 3,248,667 $ 3,297,397 $ 3,346,857
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ - $ - $ - $ - $ 9,601 $ 15,493 $ 18,706 $ 19,126 $ 18,640 $ 18,920 $ 19,204 $ 19,492 $ 19,784 $ 20,081
School Operating Tax 18.0000 $ - $ - $ - $ - $ 26,408 $ 43,014 $ 51,338 $ 52,825 $ 52,865 $ 56,760 $ 57,612 $ 58,476 $ 59,353 $ 60,243
School Total 24.0000 $ - $ - $ - $ - $ 36,009 $ 58,507 $ 70,044 $ 71,951 $ 71,505 $ 75,681 $ 76,816 $ 77,968 $ 79,138 $ 80,325
Local Capture Millage Rate
City Operating 10.0869 $ - $ - $ - $ 15,340 $ 26,048 $ 31,449 $ 32,165 $ 31,350 $ 31,808 $ 32,285 $ 32,769 $ 33,261 $ 33,759
County Operating 5.6984 $ - $ - $ - $ - $ 9,119 $ 14,714 $ 17,766 $ 18,165 $ 17,703 $ 17,969 $ 18,239 $ 18,512 $ 18,790 $ 19,072
City Sanitation 3.0000 $ - $ - $ - $ - $ 4,000 $ 7,746 $ 9,353 $ 9,563 $ 9,320 $ 9,460 $ 9,602 $ 9,746 $ 9,892 $ 10,041
County Museum 0.3221 $ - $ - $ - $ - $ 515 $ 832 $ 1,004 $ 1,027 $ 1,001 $ 1,016 $ 1,031 $ 1,046 $ 1,062 $ 1,078
Senior Services 0.4998 $ - $ - $ - $ - $ - $ - $ - $ 1,594 $ 1,553 $ 1,576 $ 1,600 $ 1,624 $ 1,648 $ 1,673
County Veterans 0.0752 $ - $ - $ - $ - $ 120 $ 194 $ 234 $ 240 $ 233 $ 237 $ 241 $ 244 $ 248 $ 252
County Qual Life 0.2400 $ - $ - $ - $ - $ 960 $ 895 $ 749 $ - $ - $ - $ - $ - $ - $ -
Central Dispatch 0.3000 $ - $ - $ - $ - $ 480 $ 775 $ 936 $ 956 $ 932 $ 946 $ 960 $ 975 $ 989 $ 1,004
Comm College 2.2037 $ - $ - $ - $ - $ 3,526 $ 5,690 $ 6,871 $ 7,025 $ 6,846 $ 6,949 $ 7,053 $ 7,159 $ 7,266 $ 7,375
MAISD 4.7580 $ - $ - $ - $ - $ 6,013 $ 9,704 $ 11,716 $ 11,980 $ 11,675 $ 15,004 $ 15,229 $ 15,457 $ 15,689 $ 15,924
Hackley Library 2.4000 $ - $ - $ - $ - $ 3,840 $ 6,197 $ 7,482 $ 7,651 $ 7,456 $ 7,568 $ 7,682 $ 7,797 $ 7,914 $ 8,032
Local Total 29.5841 $ - $ - $ - $ - $ 43,913 $ 72,795 $ 87,560 $ 90,366 $ 88,069 $ 92,532 $ 93,920 $ 95,329 $ 96,759 $ 98,211
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ - $ - $ - $ - $ - $ 878 $ 1,060 $ 1,084 $ 1,057 $ 1,072 $ 1,088 $ 1,105 $ 1,121 $ 1,138
Hackley Debt 0.5611 $ - $ - $ - $ - $ - $ - $ 1,750 $ 1,581 $ 1,553 $ 1,769 $ 1,796 $ 1,823 $ 1,850 $ 1,878
MPS Debt - 1995 4.7000 $ - $ - $ - $ - $ - $ - $ 14,653 $ 14,982 $ 14,602 $ 14,821 $ 15,043 $ 15,269 $ 15,498 $ 15,730
MPS Debt - 2009 2.1000 $ - $ - $ - $ - $ - $ - $ 6,547 $ 6,694 $ 6,524 $ 6,622 $ 6,721 $ 6,822 $ 6,925 $ 7,028
Total Non-Capturable Taxes 7.7011 $ - $ - $ - $ - $ - $ 878 $ 24,011 $ 24,341 $ 23,736 $ 24,284 $ 24,649 $ 25,018 $ 25,394 $ 25,774
Total Tax Increment Revenue (TIR) Available for Capture $ - $ - $ - $ - $ 79,922 $ 131,302 $ 157,604 $ 162,317 $ 159,574 $ 168,213 $ 170,736 $ 173,297 $ 175,897 $ 178,535
Footnotes:
Ren Zone expired and first year of available capture was 2013.
Past capture shown through 2017 with inflation at 1.5% thereafter
April 2017
Tax Increment Revenue Capture Estimates
Former Muskegon Mall
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
Plan Year 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Calendar Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ 3,397,060 $ 3,448,016 $ 3,499,736 $ 3,552,233 $ 3,605,516 $ 3,659,599 $ 3,714,493 $ 3,770,210 $ 3,826,763 $ 3,884,165 $ 3,942,427 $ 4,001,564 $ 4,061,587 $ 4,122,511
Incremental Difference (New TV - Base TV) $ 3,397,060 $ 3,448,016 $ 3,499,736 $ 3,552,233 $ 3,605,516 $ 3,659,599 $ 3,714,493 $ 3,770,210 $ 3,826,763 $ 3,884,165 $ 3,942,427 $ 4,001,564 $ 4,061,587 $ 4,122,511
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ 20,382 $ 20,688 $ 20,998 $ 21,313 $ 21,633 $ 21,958 $ 22,287 $ 22,621 $ 22,961 $ 23,305 $ 23,655 $ 24,009 $ 24,370 $ 24,735
School Operating Tax 18.0000 $ 61,147 $ 62,064 $ 62,995 $ 63,940 $ 64,899 $ 65,873 $ 66,861 $ 67,864 $ 68,882 $ 69,915 $ 70,964 $ 72,028 $ 73,109 $ 74,205
School Total 24.0000 $ 81,529 $ 82,752 $ 83,994 $ 85,254 $ 86,532 $ 87,830 $ 89,148 $ 90,485 $ 91,842 $ 93,220 $ 94,618 $ 96,038 $ 97,478 $ 98,940
Local Capture Millage Rate
City Operating 10.0869 $ 34,266 $ 34,780 $ 35,301 $ 35,831 $ 36,368 $ 36,914 $ 37,468 $ 38,030 $ 38,600 $ 39,179 $ 39,767 $ 40,363 $ 40,969 $ 41,583
County Operating 5.6984 $ 19,358 $ 19,648 $ 19,943 $ 20,242 $ 20,546 $ 20,854 $ 21,167 $ 21,484 $ 21,806 $ 22,134 $ 22,466 $ 22,803 $ 23,145 $ 23,492
City Sanitation 3.0000 $ 10,191 $ 10,344 $ 10,499 $ 10,657 $ 10,817 $ 10,979 $ 11,143 $ 11,311 $ 11,480 $ 11,652 $ 11,827 $ 12,005 $ 12,185 $ 12,368
County Museum 0.3221 $ 1,094 $ 1,111 $ 1,127 $ 1,144 $ 1,161 $ 1,179 $ 1,196 $ 1,214 $ 1,233 $ 1,251 $ 1,270 $ 1,289 $ 1,308 $ 1,328
Senior Services 0.4998 $ 1,698 $ 1,723 $ 1,749 $ 1,775 $ 1,802 $ 1,829 $ 1,857 $ 1,884 $ 1,913 $ 1,941 $ 1,970 $ 2,000 $ 2,030 $ 2,060
County Veterans 0.0752 $ 255 $ 259 $ 263 $ 267 $ 271 $ 275 $ 279 $ 284 $ 288 $ 292 $ 296 $ 301 $ 305 $ 310
County Qual Life 0.2400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Central Dispatch 0.3000 $ 1,019 $ 1,034 $ 1,050 $ 1,066 $ 1,082 $ 1,098 $ 1,114 $ 1,131 $ 1,148 $ 1,165 $ 1,183 $ 1,200 $ 1,218 $ 1,237
Comm College 2.2037 $ 7,486 $ 7,598 $ 7,712 $ 7,828 $ 7,945 $ 8,065 $ 8,186 $ 8,308 $ 8,433 $ 8,560 $ 8,688 $ 8,818 $ 8,951 $ 9,085
MAISD 4.7580 $ 16,163 $ 16,406 $ 16,652 $ 16,902 $ 17,155 $ 17,412 $ 17,674 $ 17,939 $ 18,208 $ 18,481 $ 18,758 $ 19,039 $ 19,325 $ 19,615
Hackley Library 2.4000 $ 8,153 $ 8,275 $ 8,399 $ 8,525 $ 8,653 $ 8,783 $ 8,915 $ 9,049 $ 9,184 $ 9,322 $ 9,462 $ 9,604 $ 9,748 $ 9,894
Local Total 29.5841 $ 99,684 $ 101,179 $ 102,697 $ 104,237 $ 105,801 $ 107,388 $ 108,998 $ 110,633 $ 112,293 $ 113,977 $ 115,687 $ 117,422 $ 119,184 $ 120,971
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ 1,155 $ 1,172 $ 1,190 $ 1,208 $ 1,226 $ 1,244 $ 1,263 $ 1,282 $ 1,301 $ 1,321 $ 1,340 $ 1,361 $ 1,381 $ 1,402
Hackley Debt 0.5611 $ 1,906 $ 1,935 $ 1,964 $ 1,993 $ 2,023 $ 2,053 $ 2,084 $ 2,115 $ 2,147 $ 2,179 $ 2,212 $ 2,245 $ 2,279 $ 2,313
MPS Debt - 1995 4.7000 $ 15,966 $ 16,206 $ 16,449 $ 16,695 $ 16,946 $ 17,200 $ 17,458 $ 17,720 $ 17,986 $ 18,256 $ 18,529 $ 18,807 $ 19,089 $ 19,376
MPS Debt - 2009 2.1000 $ 7,134 $ 7,241 $ 7,349 $ 7,460 $ 7,572 $ 7,685 $ 7,800 $ 7,917 $ 8,036 $ 8,157 $ 8,279 $ 8,403 $ 8,529 $ 8,657
Total Non-Capturable Taxes 7.7011 $ 26,161 $ 26,554 $ 26,952 $ 27,356 $ 27,766 $ 28,183 $ 28,606 $ 29,035 $ 29,470 $ 29,912 $ 30,361 $ 30,816 $ 31,279 $ 31,748
Total Tax Increment Revenue (TIR) Available for Capture $ 181,213 $ 183,931 $ 186,690 $ 189,491 $ 192,333 $ 195,218 $ 198,146 $ 201,118 $ 204,135 $ 207,197 $ 210,305 $ 213,460 $ 216,662 $ 219,912
Footnotes:
Ren Zone expired and first year of available capture was 2013.
Past capture shown through 2017 with inflation at 1.5% thereafter
April 2017
Tax Increment Revenue Capture Estimates
Former Muskegon Mall
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
Plan Year 29 30 TOTAL
Calendar Year 2037 2038
Base Taxable Value $ - $ - $ -
Estimated New TV $ 4,184,349 $ 4,247,114 $ 4,247,114
Incremental Difference (New TV - Base TV) $ 4,184,349 $ 4,247,114 $ 4,247,114
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ 25,106 $ 25,483 $ 544,552
School Operating Tax 18.0000 $ 75,318 $ 76,448 $ 1,615,407
School Total 24.0000 $ 100,424 $ 101,931 $ 2,159,959
Local Capture Millage Rate
City Operating 10.0869 $ 42,207 $ 42,840 $ 914,700
County Operating 5.6984 $ 23,844 $ 24,202 $ 517,180
City Sanitation 3.0000 $ 12,553 $ 12,741 $ 271,475
County Museum 0.3221 $ 1,348 $ 1,368 $ 29,234
Senior Services 0.4998 $ 2,091 $ 2,123 $ 41,714
County Veterans 0.0752 $ 315 $ 319 $ 6,824
County Qual Life 0.2400 $ - $ - $ 2,604
Central Dispatch 0.3000 $ 1,255 $ 1,274 $ 27,228
Comm College 2.2037 $ 9,221 $ 9,359 $ 200,005
MAISD 4.7580 $ 19,909 $ 20,208 $ 418,236
Hackley Library 2.4000 $ 10,042 $ 10,193 $ 217,820
Local Total 29.5841 $ 122,786 $ 124,628 $ 2,647,019
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ 1,423 $ 1,444 $ 30,315
Hackley Debt 0.5611 $ 2,348 $ 2,383 $ 48,181
MPS Debt - 1995 4.7000 $ 19,666 $ 19,961 $ 406,909
MPS Debt - 2009 2.1000 $ 8,787 $ 8,919 $ 181,811
Total Non-Capturable Taxes 7.7011 $ 32,224 $ 32,707 $ 667,216
Total Tax Increment Revenue (TIR) Available for Capture $ 223,210 $ 226,558 $ 4,806,978
Footnotes:
Ren Zone expired and first year of available capture was 2013.
Past capture shown through 2017 with inflation at 1.5% thereafter
April 2017
Tax Increment Revenue Capture Estimates
Sweetwater Development
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
1.50% Commercial Rehab Abatement
Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Calendar Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ - $ 50,000 $ 1,724,098 $ 1,749,959 $ 1,776,209 $ 1,802,852 $ 1,829,895 $ 1,857,343 $ 1,885,203 $ 1,913,481 $ 1,942,184 $ 1,971,316 $ 2,000,886 $ 2,030,899
Incremental Difference (New TV - Base TV) $ - $ 50,000 $ 1,724,098 $ 1,749,959 $ 1,776,209 $ 1,802,852 $ 1,829,895 $ 1,857,343 $ 1,885,203 $ 1,913,481 $ 1,942,184 $ 1,971,316 $ 2,000,886 $ 2,030,899
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ - $ - $ 10,345 $ 10,500 $ 10,657 $ 10,817 $ 10,979 $ 11,144 $ 11,311 $ 11,481 $ 11,653 $ 11,828 $ 12,005 $ 12,185
School Operating Tax 18.0000 $ - $ - $ 31,034 $ 31,499 $ 31,972 $ 32,451 $ 32,938 $ 33,432 $ 33,934 $ 34,443 $ 34,959 $ 35,484 $ 36,016 $ 36,556
School Total 24.0000 $ - $ - $ 41,378 $ 41,999 $ 42,629 $ 43,268 $ 43,917 $ 44,576 $ 45,245 $ 45,924 $ 46,612 $ 47,312 $ 48,021 $ 48,742
Local Capture Millage Rate
City Operating 10.0869 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 20,183 $ 20,485
County Operating 5.6984 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 11,402 $ 11,573
City Sanitation 3.0000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,003 $ 6,093
County Museum 0.3221 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 644 $ 654
Senior Services 0.4998 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,000 $ 1,015
County Veterans 0.0752 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150 $ 153
County Qual Life 0.2400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 480 $ 487
Central Dispatch 0.3000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 600 $ 609
Comm College 2.2037 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,409 $ 4,475
MAISD 4.7580 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,520 $ 9,663
Hackley Library 2.4000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,802 $ 4,874
Local Total 29.5841 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 59,194 $ 60,082
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 680 $ 691
Hackley Debt 0.5611 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,123 $ 1,140
MPS Debt - 1995 4.7000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,404 $ 9,545
MPS Debt - 2009 2.1000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,202 $ 4,265
Total Non-Capturable Taxes 7.7011 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 15,409 $ 15,640
Total Tax Increment Revenue (TIR) Available for Capture $ - $ - $ 41,378 $ 41,999 $ 42,629 $ 43,268 $ 43,917 $ 44,576 $ 45,245 $ 45,924 $ 46,612 $ 47,312 $ 107,216 $ 108,824
Footnotes:
Sweetwater Property only with projected TV and 1.5% inflation thereafter
Assumes millage rates remain the same
Assumes 10yr Commercial Rehab Act abatement on the new building.
April 2017
Tax Increment Revenue Capture Estimates
Sweetwater Development
Muskegon, Michigan
December 6, 2018
Estimated Taxable Value (TV) Increase Rate:
Plan Year 15 16 17 18 19 20 21 TOTAL
Calendar Year 2032 2033 2034 2035 2036 2037 2038
Base Taxable Value $ - $ - $ - $ - $ - $ - $ - $ -
Estimated New TV $ 2,061,363 $ 2,092,283 $ 2,123,668 $ 2,155,523 $ 2,187,855 $ 2,220,673 $ 2,253,983 $ 2,253,983
Incremental Difference (New TV - Base TV) $ 2,061,363 $ 2,092,283 $ 2,123,668 $ 2,155,523 $ 2,187,855 $ 2,220,673 $ 2,253,983 $ 2,253,983
School Capture Millage Rate
State Education Tax (SET) 6.0000 $ 12,368 $ 12,554 $ 12,742 $ 12,933 $ 13,127 $ 13,324 $ 13,524 $ 225,478
School Operating Tax 18.0000 $ 37,105 $ 37,661 $ 38,226 $ 38,799 $ 39,381 $ 39,972 $ 40,572 $ 676,434
School Total 24.0000 $ 49,473 $ 50,215 $ 50,968 $ 51,733 $ 52,509 $ 53,296 $ 54,096 $ 901,912
Local Capture Millage Rate
City Operating 10.0869 $ 20,793 $ 21,105 $ 21,421 $ 21,743 $ 22,069 $ 22,400 $ 22,736 $ 192,933
County Operating 5.6984 $ 11,746 $ 11,923 $ 12,102 $ 12,283 $ 12,467 $ 12,654 $ 12,844 $ 108,994
City Sanitation 3.0000 $ 6,184 $ 6,277 $ 6,371 $ 6,467 $ 6,564 $ 6,662 $ 6,762 $ 57,381
County Museum 0.3221 $ 664 $ 674 $ 684 $ 694 $ 705 $ 715 $ 726 $ 6,161
Senior Services 0.4998 $ 1,030 $ 1,046 $ 1,061 $ 1,077 $ 1,093 $ 1,110 $ 1,127 $ 9,560
County Veterans 0.0752 $ 155 $ 157 $ 160 $ 162 $ 165 $ 167 $ 169 $ 1,438
County Qual Life 0.2400 $ 495 $ 502 $ 510 $ 517 $ 525 $ 533 $ 541 $ 4,591
Central Dispatch 0.3000 $ 618 $ 628 $ 637 $ 647 $ 656 $ 666 $ 676 $ 5,738
Comm College 2.2037 $ 4,543 $ 4,611 $ 4,680 $ 4,750 $ 4,821 $ 4,894 $ 4,967 $ 42,150
MAISD 4.7580 $ 9,808 $ 9,955 $ 10,104 $ 10,256 $ 10,410 $ 10,566 $ 10,724 $ 91,007
Hackley Library 2.4000 $ 4,947 $ 5,021 $ 5,097 $ 5,173 $ 5,251 $ 5,330 $ 5,410 $ 45,905
Local Total 29.5841 $ 60,984 $ 61,898 $ 62,827 $ 63,769 $ 64,726 $ 65,697 $ 66,682 $ 565,859
Non-Capturable Millages Millage Rate
Comm College Debt 0.3400 $ 701 $ 711 $ 722 $ 733 $ 744 $ 755 $ 766 $ 6,503
Hackley Debt 0.5611 $ 1,157 $ 1,174 $ 1,192 $ 1,209 $ 1,228 $ 1,246 $ 1,265 $ 10,732
MPS Debt - 1995 4.7000 $ 9,688 $ 9,834 $ 9,981 $ 10,131 $ 10,283 $ 10,437 $ 10,594 $ 89,898
MPS Debt - 2009 2.1000 $ 4,329 $ 4,394 $ 4,460 $ 4,527 $ 4,594 $ 4,663 $ 4,733 $ 40,167
Total Non-Capturable Taxes 7.7011 $ 15,875 $ 16,113 $ 16,355 $ 16,600 $ 16,849 $ 17,102 $ 17,358 $ 147,300
Total Tax Increment Revenue (TIR) Available for Capture $ 110,456 $ 112,113 $ 113,795 $ 115,502 $ 117,234 $ 118,993 $ 120,778 $ 1,467,771
Footnotes:
Sweetwater Property only with projected TV and 1.5% inflation thereafter
Assumes millage rates remain the same
Assumes 10yr Commercial Rehab Act abatement on the new building.
April 2017
Tax Increment Financing Reimbursement Table
Muskegon Mall Project
Muskegon, Michigan
December 6, 2018
Developer
Maximum School & Local Local-Only
Reimbursement Proportionality Taxes Taxes Total Estimated Capture
State 52.2% $ 2,434,600 $ 2,434,600 Estimated Total Administrative Fees
Local 47.8% $ 2,231,028 $ 2,231,028 Years of Plan: 35 State Revolving Fund
TOTAL $ 4,665,628 LSRRF
MDEQ $ 123,000 0 $ 123,000
MSF $ 2,879,950 $ - $ 2,879,950
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total State Incremental Revenue $ - $ - $ - $ - $ 36,009 $ 58,507 $ 70,044 $ 71,951 $ 71,505 $ 75,681 $ 76,816 $ 119,346
State Brownfield Revolving Fund (50% of SET) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State TIR Available for Reimbursement $ - $ - $ - $ - $ 36,009 $ 58,507 $ 70,044 $ 71,951 $ 71,505 $ 75,681 $ 76,816 $ 119,346
Total Local Incremental Revenue $ - $ - $ - $ - $ 43,913 $ 72,795 $ 87,560 $ 90,366 $ 88,069 $ 92,532 $ 93,920 $ 95,329
BRA Administrative Fee $ - $ - $ - $ - $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000)
Local TIR Available for Reimbursement $ - $ - $ - $ - $ 33,913 $ 62,795 $ 77,560 $ 80,366 $ 78,069 $ 82,532 $ 83,920 $ 85,329
Total State & Local TIR Available $ - $ - $ - $ - $ 69,922 $ 121,302 $ 147,604 $ 152,317 $ 149,574 $ 158,213 $ 160,736 $ 204,676
Beginning
DEVELOPER Balance
DEVELOPER Reimbursement Balance $ 3,002,950 $ 3,002,950 $ 3,002,950 $ 3,092,950 $ 3,187,450 $ 3,286,675 $ 3,317,695 $ 3,296,753 $ 3,247,679 $ 3,191,751 $ 3,136,445 $ 3,069,872 $ 2,997,900
MSF Non-Environmental Costs - City $ 1,800,000 $ 1,800,000 $ 1,800,000 $ 1,890,000 $ 1,984,500 $ 2,083,725 $ 2,119,779 $ 2,107,572 $ 2,069,125 $ 2,024,163 $ 1,979,627 $ 1,924,445 $ 1,864,046
State Tax Reimbursement $ - $ - $ - $ - $ 33,416 $ 54,294 $ 65,001 $ 66,771 $ 66,357 $ 70,232 $ 71,285 $ 72,354
Local Tax Reimbursement $ - $ - $ - $ - $ 31,471 $ 58,274 $ 71,976 $ 74,580 $ 72,448 $ 76,590 $ 77,878 $ 79,185
Total MSF Reimbursement Balance $ 1,800,000 $ 1,800,000 $ 1,890,000 $ 1,984,500 $ 2,018,837 $ 2,007,211 $ 1,970,595 $ 1,927,775 $ 1,885,359 $ 1,832,805 $ 1,775,282 $ 1,712,506
Interest (5%) $ 90,000 $ 94,500 $ 99,225 $ 100,942 $ 100,361 $ 98,530 $ 96,389 $ 94,268 $ 91,640 $ 88,764 $ 85,625
MSF Non-Environmental Costs - Sweetwater $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950
State Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 40,509
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total MSF Reimbursement Balance $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,079,950 $ 1,039,441
MDEQ Environmental Costs - City $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 94,966 $ 86,232 $ 75,604 $ 64,638 $ 53,868 $ 42,477 $ 30,904
State Tax Reimbursement $ 0.02 $ - $ - $ - $ - $ 2,593 $ 4,213 $ 5,043 $ 5,180 $ 5,148 $ 5,449 $ 5,531 $ 5,614
Local Tax Reimbursement $ - $ - $ - $ - $ 2,442 $ 4,521 $ 5,584 $ 5,786 $ 5,621 $ 5,942 $ 6,042 $ 6,144
Total MDEQ Reimbursement Balance $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 94,966 $ 86,232 $ 75,604 $ 64,638 $ 53,868 $ 42,477 $ 30,904 $ 19,146
MDEQ Environmental Costs - Sweetwater $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000
State Tax Reimbursement $ 0.02 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 869
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total MDEQ Reimbursement Balance $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 22,131
Local Only Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Local Only Reimbursement Balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Annual Developer Reimbursement $ - $ - $ - $ - $ 69,922 $ 121,302 $ 147,604 $ 152,317 $ 149,574 $ 158,213 $ 160,736 $ 204,676
LOCAL SITE REMEDIATION FUND
LSRRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total LSRRF Capture
* Up to five years of capture for LSRRF Deposits after eligible activities are reimbursed. May be taken from DEQ & Local TIR only.
Footnotes:
(1) Assumes taxable value increases based on proposed build out, plus 1.5% annual increases for
inflation thereafter.
(2) Assumes Millage Rates remain constant.
(3) 10yr Commercial Rehab Act Abatement
Assumes Reimbursement on Mall and Sweetwater are separate from one another
April 2017
Tax Increment Financing Reimbursement Table
Muskegon Mall Project
Muskegon, Michigan
December 6, 2018
$ 6,274,749
$ 260,000
$ -
$ 704,080
Commercial Rehab Abatement - Sweetwater Development
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Total State Incremental Revenue $ 121,137 $ 122,954 $ 124,798 $ 126,670 $ 128,570 $ 130,498 $ 132,456 $ 134,443 $ 136,459 $ 138,506 $ 140,584 $ 142,693 $ 144,833 $ 147,006 $ 149,211 $ 151,449 $ 153,721 $ 156,026
State Brownfield Revolving Fund (50% of SET) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State TIR Available for Reimbursement $ 121,137 $ 122,954 $ 124,798 $ 126,670 $ 128,570 $ 130,498 $ 132,456 $ 134,443 $ 136,459 $ 138,506 $ 140,584 $ 142,693 $ 144,833 $ 147,006 $ 149,211 $ 151,449 $ 153,721 $ 156,026
Total Local Incremental Revenue $ 96,759 $ 98,211 $ 99,684 $ 101,179 $ 102,697 $ 104,237 $ 105,801 $ 107,388 $ 108,998 $ 169,828 $ 172,375 $ 174,961 $ 177,585 $ 180,249 $ 182,953 $ 185,697 $ 188,483 $ 191,310
BRA Administrative Fee $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000) $ (10,000)
Local TIR Available for Reimbursement $ 86,759 $ 88,211 $ 89,684 $ 91,179 $ 92,697 $ 94,237 $ 95,801 $ 97,388 $ 98,998 $ 159,828 $ 162,375 $ 164,961 $ 167,585 $ 170,249 $ 172,953 $ 175,697 $ 178,483 $ 181,310
Total State & Local TIR Available $ 207,896 $ 211,164 $ 214,482 $ 217,849 $ 221,267 $ 224,736 $ 228,257 $ 231,830 $ 235,458 $ 298,334 $ 302,959 $ 307,654 $ 312,418 $ 317,255 $ 322,163 $ 327,146 $ 332,203 $ 337,336
DEVELOPER
DEVELOPER Reimbursement Balance $ 2,878,850 $ 2,753,163 $ 2,620,252 $ 2,479,375 $ 2,330,115 $ 2,172,031 $ 2,004,664 $ 1,827,527 $ 1,640,111 $ 1,441,882 $ 1,173,081 $ 891,426 $ 596,281 $ 286,982 $ 107,685 $ - $ - $ -
MSF Non-Environmental Costs - City $ 1,798,132 $ 1,726,389 $ 1,643,308 $ 1,545,700 $ 1,440,357 $ 1,326,850 $ 1,204,727 $ 1,073,514 $ 932,711 $ 781,793 $ 620,208 $ 447,376 $ 262,688 $ 65,502 $ - $ - $ - $ -
State Tax Reimbursement $ 73,440 $ 76,889 $ 81,529 $ 82,752 $ 83,994 $ 85,254 $ 86,532 $ 87,830 $ 89,148 $ 90,485 $ 91,842 $ 93,220 $ 94,618 $ 30,941 $ - $ - $ - $ -
Local Tax Reimbursement $ 80,512 $ 84,444 $ 89,684 $ 91,179 $ 92,697 $ 94,237 $ 95,801 $ 97,388 $ 98,998 $ 100,633 $ 102,293 $ 103,977 $ 105,687 $ 34,561 $ - $ - $ -
Total MSF Reimbursement Balance $ 1,644,180 $ 1,565,055 $ 1,472,095 $ 1,371,769 $ 1,263,667 $ 1,147,359 $ 1,022,394 $ 888,296 $ 744,565 $ 590,674 $ 426,073 $ 250,179 $ 62,383 $ - $ - $ - $ - $ -
Interest (5%) $ 82,209 $ 78,253 $ 73,605 $ 68,588 $ 63,183 $ 57,368 $ 51,120 $ 44,415 $ 37,228 $ 29,534 $ 21,304 $ 12,509 $ 3,119 $ - $ - $ - $ - $ -
MSF Non-Environmental Costs - Sweetwater $ 1,039,441 $ 998,324 $ 956,590 $ 914,230 $ 871,235 $ 827,595 $ 783,300 $ 738,341 $ 692,707 $ 646,389 $ 541,425 $ 434,886 $ 326,750 $ 216,991 $ 105,586 $ - $ - $ -
State Tax Reimbursement $ 41,117 $ 41,734 $ 42,360 $ 42,995 $ 43,640 $ 44,295 $ 44,959 $ 45,634 $ 46,318 $ 47,013 $ 47,718 $ 48,434 $ 49,160 $ 49,898 $ 47,291 $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 57,951 $ 58,821 $ 59,703 $ 60,598 $ 61,507 $ 58,295 $ - $ -
Total MSF Reimbursement Balance $ 998,324 $ 956,590 $ 914,230 $ 871,235 $ 827,595 $ 783,300 $ 738,341 $ 692,707 $ 646,389 $ 541,425 $ 434,886 $ 326,750 $ 216,991 $ 105,586 $ - $ - $ - $ -
MDEQ Environmental Costs - City $ 19,146 $ 7,202 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
State Tax Reimbursement $ 5,698 $ 3,436 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Reimbursement $ 6,247 $ 3,766 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total MDEQ Reimbursement Balance $ 7,202 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
MDEQ Environmental Costs - Sweetwater $ 22,131 $ 21,249 $ 20,354 $ 19,445 $ 18,523 $ 17,587 $ 16,637 $ 15,672 $ 14,693 $ 13,700 $ 11,448 $ 9,163 $ 6,844 $ 4,489 $ 2,099 $ - $ - $ -
State Tax Reimbursement $ 882 $ 895 $ 909 $ 922 $ 936 $ 950 $ 964 $ 979 $ 994 $ 1,008 $ 1,024 $ 1,039 $ 1,055 $ 1,070 $ 940 $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,243 $ 1,262 $ 1,281 $ 1,300 $ 1,319 $ 1,159 $ - $ - $ -
Total MDEQ Reimbursement Balance $ 21,249 $ 20,354 $ 19,445 $ 18,523 $ 17,587 $ 16,637 $ 15,672 $ 14,693 $ 13,700 $ 11,448 $ 9,163 $ 6,844 $ 4,489 $ 2,099 $ - $ - $ - $ -
Local Only Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Tax Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Local Only Reimbursement Balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Annual Developer Reimbursement $ 207,896 $ 211,164 $ 214,482 $ 217,849 $ 221,267 $ 224,736 $ 228,257 $ 231,830 $ 235,458 $ 298,334 $ 302,959 $ 307,654 $ 312,418 $ 179,297 $ 107,685 $ - $ - $ -
LOCAL SITE REMEDIATION FUND
LSRRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 168,590 $ 175,697 $ 178,483 $ 181,310
State Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 55,091 $ - $ - $ -
Local Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 113,499 $ 175,697 $ 178,483 $ 181,310
Total LSRRF Capture
* Up to five years of capture for LSRRF Deposi
Footnotes:
(1) Assumes taxable value increases based
inflation thereafter.
(2) Assumes Millage Rates remain constan
(3) 10yr Commercial Rehab Act Abatemen
Assumes Reimbursement on Mall and Sweetwa
April 2017
Tax Increment Financing Reimbursement Table
Muskegon Mall Project
Muskegon, Michigan
December 6, 2018
TOTAL
Total State Incremental Revenue $ 3,061,871
State Brownfield Revolving Fund (50% of SET) $ -
State TIR Available for Reimbursement $ 3,061,871
Total Local Incremental Revenue $ 3,212,878
BRA Administrative Fee $ (260,000)
Local TIR Available for Reimbursement $ 2,952,878
Total State & Local TIR Available $ -
DEVELOPER
DEVELOPER Reimbursement Balance
MSF Non-Environmental Costs - City $ -
State Tax Reimbursement $ 1,648,185
Local Tax Reimbursement $ 1,814,493
Total MSF Reimbursement Balance $ -
Interest (5%)
MSF Non-Environmental Costs - Sweetwater $ -
State Tax Reimbursement $ 723,075
Local Tax Reimbursement $ 356,875
Total MSF Reimbursement Balance $ -
MDEQ Environmental Costs - City $ -
State Tax Reimbursement $ 47,904
Local Tax Reimbursement $ 52,096
Total MDEQ Reimbursement Balance $ -
MDEQ Environmental Costs - Sweetwater $ -
State Tax Reimbursement $ 15,436
Local Tax Reimbursement $ 7,564
Total MDEQ Reimbursement Balance $ -
Local Only Costs $ -
Local Tax Reimbursement $ -
Total Local Only Reimbursement Balance $ -
Total Annual Developer Reimbursement $ -
LOCAL SITE REMEDIATION FUND
LSRRF Deposits * $ 704,080
State Tax Capture $ 55,091
Local Tax Capture $ 648,989
Total LSRRF Capture
* Up to five years of capture for LSRRF Deposi
Footnotes:
(1) Assumes taxable value increases based
inflation thereafter.
(2) Assumes Millage Rates remain constan
(3) 10yr Commercial Rehab Act Abatemen
Assumes Reimbursement on Mall and Sweetwa
April 2017
Commission Meeting Date: May 14, 2019
Date: May 8, 2019
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Public Hearing for Amendment to Brownfield
Plan- City of Muskegon (Developer)
SUMMARY OF REQUEST: To hold a public hearing and approve the attached resolution
approving and adopting the amendment for the Brownfield Plan. The amendments are for
the inclusion of properties owned by the City of Muskegon LLC in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax increment Financing will be used to reimburse the
developer for “eligible expenses” incurred in association with development of 48 residential
units in the Nelson Neighborhood.
“Eligible Expenses” would be reimbursed starting in 2020. The estimated tax capture and
payment schedule is included as Attachment B in the proposed Brownfield Plan Amendment.
After all eligible costs incurred by the various parties are reimbursed (estimated to be in
2032), the BRA is authorized to continue to capture local taxes for five more years for deposit
into a Local Site Remediation Revolving Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public hearing
for May 14, 2019 at their April 23, 2019 meeting. Since that time, a notice of the public
hearing has been sent to taxing jurisdictions. In addition, the Brownfield Redevelopment
Authority approved the Plan amendment on April 9, 2019 and further recommends that the
Muskegon City Commission approve the Plan amendment.
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
City of Muskegon (Developer)
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of
Muskegon, County of Muskegon, Michigan (the "City"), held in the City Commission
Chambers, on the 14th day of May 2019, at 5:30 p.m., prevailing Eastern Time.
PRESENT: Members
__________________________________________________________________
__________________________________________________________________
ABSENT: Members
__________________________________________________________________
The following preamble and resolution were offered by Commissioner
_________________ and supported by Commissioner _________________:
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment to add The City of Muskegon (developer), and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the taxing jurisdictions levying taxes subject to capture to express
their views and recommendations regarding the Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 10 days has passed since the City Commission
provided notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on May 14, 2019.
NOW, THEREFORE, BE IT RESOLVED:
1. That the Brownfield Plan constitutes a public purpose under Act 381.
2. That the Brownfield Plan meets all the requirements of Section 13(1) of
Act 381.
3. That the proposed method of financing the costs of the eligible
activities, as identified in the Brownfield Plan and defined in Act 381, is feasible
and the Authority has the authority to arrange the financing.
4. That the costs of the eligible activities proposed in the Brownfield Plan
are reasonable and necessary to carry out the purposes of Act 381.
5. That the amount of captured taxable value estimated to result from the
adoption of the Brownfield Plan is reasonable.
6. That the Brownfield Plan in the form presented is approved and is
effective immediately.
7. That all resolutions or parts of resolutions in conflict herewith shall be
and the same are hereby rescinded.
Be It Further Resolved that the Mayor and City Clerk are hereby
authorized to execute all documents necessary or appropriate to implement the
provisions of the Brownfield Plan.
AYES: Members
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
NAYS:
Members__________________________________________________________
__________________________________________________________________
RESOLUTION DECLARED ADOPTED.
_____________________________
Ann Meisch, City Clerk
_____________________________
Stephen J. Gawron, Mayor
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held on May 14, 2019, and that said
meeting was conducted and public notice of said meeting was given pursuant to
and in full compliance with the Open Meetings Act, being Act 267, Public Acts of
Michigan, 1976, as amended, and that the minutes of said meeting were kept and
will be or have been made available as required by said Act.
_____________________________
Ann Meisch, City Clerk
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
AUTHORITY
BROWNFIELD PLAN AMENDMENT
NELSON NEIGHBORHOOD INFILL HOUSING
PROJECT
April 9, 2019
Prepared For The City of Muskegon Brownfield
Redevelopment Authority
Prepared By City of Muskegon Staff
PROJECT NAME
Nelson Neighborhood Infill Housing Project
DEVELOPER
City of Muskegon, a qualified unit of local government, as defined by Public Act 381 of 1996, as
amended
ELIGIBLE PROPERTY LOCATION
There are 28 Eligible Properties for this project, most of which are not adjacent to one another. Please
refer to the “Eligible Property Information Chart” and the “Eligible Property Map (Attachment A)” on the
following pages.
TYPE OF ELIGIBLE PROPERTY
Blighted
SUBJECT PROJECT DESCRIPTION
The project consists of 28 vacant parcels in the Nelson Neighborhood. A majority of the homes will be
single family, detached homes on small lots. However, multi-family homes will be constructed on lots
that allow for them by zoning
ELIGIBLE ACTIVITIES
Seller Concessions, Preparation of Brownfield Plan
DEVELOPER’S REIMBURSABLE
COSTS
$848,000
MAXIMUM DURATION OF
CAPTURE
30 years
ESTIMATED TOTAL CAPITAL
INVESTMENT
$9,000,000
INITIAL TAXABLE
VALUE
$0 (City Owned)
1. Introduction
The City of Muskegon, Michigan (the “City”), established the Muskegon Brownfield
Redevelopment Authority (the “Authority”) on July 4, 1997, pursuant to Michigan Public Act
381 of 1996, as amended (“Act 381”). The primary purpose of Act 381 is to encourage the
redevelopment of eligible property by providing economic incentives through tax increment
financing for certain eligible activities.
The main purpose of this Brownfield Plan is to promote the redevelopment of and investment
in certain “Brownfield” properties within the City. Inclusion of the subject properties within
this Plan will facilitate the development of infill housing at eligible properties. By facilitating
redevelopment of underutilized properties, the Plan is intended to promote economic
growth for the benefit of the residents of the City and all taxing units located within and
benefited by the Authority.
This Plan is intended to be a living document, which can be amended as necessary to achieve
the purposes of Act 381. It is specifically anticipated that properties will be continually added
to the Plan as new projects are identified. The Plan contains general provisions applicable to
the Plan, as well as property-specific information for each project. The applicable Sections of
Act 381 are noted throughout the Plan for reference purposes.
This Brownfield Plan contains the information required by Section 13(1) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or the
Planning Director.
2. General Provisions
A. Costs of the Brownfield Plan (Section 13(1)(a))
Any site-specific costs of implementing this Plan are described in the site-specific section of
the Plan. Site-specific sources of funding may include tax increment financing revenue
generated from new development on eligible brownfield properties, state and federal grant
or loan funds, and/or private parties. Where private parties finance the costs of eligible
activities under the Plan, tax increment revenues may be used to reimburse the private
parties. The initial costs related to preparation of the Brownfield Plan were funded by the
City’s general fund. Subsequent amendments to the Plan may be funded by the person
requesting inclusion of a project in the Plan, and if eligible, may be reimbursed through tax
increment financing.
The Authority intends to pay for administrative costs and all of the things necessary or
convenient to achieve the objectives and purposes of the Authority with fees charged to
applicants to be included in the Plan, and any eligible tax increment revenues collected
pursuant to the Plan, in accordance with the provisions of Act 381, including, but not limited
to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating this Plan, and
iii) costs for Plan implementation
Tax increment revenues that may be generated and captured by this Plan are identified in the
site-specific sections of this Plan.
B. Method for Financing Costs of Plan (Section 13(1)(d) and (e))
The City or Brownfield Authority may incur some debt on a site-specific basis. Please refer to
the site-specific section of this Plan for details on any debt to be incurred by the City or
Authority. When a property proposed for inclusion in the Plan is in an area where tax
increment financing is a viable option, the Authority intends to enter into Development
Agreements with the property owners/developers of properties included in the Plan to
reimburse them for the costs of eligible activities undertaken pursuant to this Plan. Financing
arrangements will be specified in a Development and Reimbursement Agreement, and also
identified in the Site Specific section of the Plan.
C. Duration of the Brownfield Plan (Section 13(1)(f))
The duration of this Plan is expected to be 19 years. It is estimated that all of the homes
associated with the Project (defined below) will be completed in 2020 and it is estimated that
it could take 14 years to recapture eligible costs through tax increment revenues. In addition,
once all activity costs are reimbursed, funds may be captured for the local site remediation
revolving fund, if available. Therefore, the duration of capture for the Project (defined below)
will begin no later than 2020 and will continue until such time that all the eligible activities
undertaken in this Plan are reimbursed, but in no event will the Plan exceed the maximum
duration provided for in (MCLA 125.2663(1)(22)). The total costs of eligible activities include
the cost of principal and interest on any note or obligation issued by the Authority to pay for
the costs of eligible activities, the cost of principal and interest otherwise incurred to pay for
eligible activities, the reasonable costs of a work plan or remedial action plan and the costs
of preparation of Brownfield Plans and amendments.
D. Displacement/Relocation of Individuals on Eligible Properties (Section 13(1)(i),(j)(k)(l)
At this time, eligible properties identified in this Plan do not contain existing residences,
therefore the provisions of Section 13(1)(i-l) are not applicable at this time.
E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m))
Whenever this Plan includes a property for which taxes will be captured through the tax
increment financing authority provided by Act 381, it is the Authority's intent to establish and
fund a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of tax increment
revenues that exceed the costs of eligible activities incurred on an eligible property, as
specified in Section 13(5) of Act 381. Section 13(5) authorizes the capture of tax increment
revenue from an eligible property for up to 5 years after the time that capture is required for
the purposes of paying the costs of eligible activities identified in the Plan. It is the intention
of the Authority to continue to capture tax increment revenues for 5 years after eligible
activities are funded from those properties identified for tax capture in the Plan, provided
that the time frame allowed by Act 381 for tax capture is sufficient to accommodate capture
to capitalize a Fund. The amount of school operating taxes captured for the Revolving Fund
will be limited to the amount of school operating taxes captured for eligible environmental
response activities under this Plan. It may also include funds appropriated or otherwise made
available from public or private sources.
The Revolving Fund may be used to reimburse the Authority, the City, and private parties for
the costs of eligible activities at eligible properties and other costs as permitted by Act 381.
It may also be used for eligible activities on an eligible property for which there is no ability
to capture tax increment revenues. The establishment of this Revolving Fund will provide
additional flexibility to the Authority in facilitating redevelopment of brownfield properties
by providing another source of financing for necessary eligible activities.
3. Site Specific Provisions
A. Eligibility and Project Description (Sec. 13(1)(h))
The eligible properties comprising the Nelson Neighborhood Infill Housing Project included in
this Plan is approximately 4.29 acres of vacant spread across 28 parcels in the Nelson
Neighborhood Muskegon, Michigan (See Attachment A). The parcel numbers/legal
description of the eligible properties are:
1246 5th St
Parcel #24-205-378-0006-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 46 FT LOT 6 BLK 378
1252 5th St
Parcel #24-205-378-0006-10
CITY OF MUSKEGON REVISED PLAT OF 1903 NLY 44 FT OF SLY 86 FT LOT 6 BLK 378
1245 5th St
Parcel #24-205-377-0001-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 EX SELY 79.5 FT TH'OF & E 1/2 OF LOT 2 EX SELY
79.5 FT TH'OF BLK 377
1261 5th St
Parcel #24-205-377-0011-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/4 LOT 11 & N 1/2 OF N 1/2 LOT 12 BLK 377
1342 6th St
Parcel #24-205-388-0006-20
CITY OF MUSKEGON REVISED PLAT OF 1903 SELY 44 FT OF SWLY 26 FT LOT 5 & SELY 44 FT OF LOT 6
BLK 388
1349 6th St
Parcel #24-205-389-0012-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 12 BLK 389
1352 6th St
Parcel #24-205-388-0007-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 7 BLK 388
1411 6th St
Parcel #24-205-390-0011-20
CITYOF MUSKEGON REVISED PLAT OF 1903 LOT 11 BLK 390 EXC W 92 FT TH'OF
1387 7th St
Parcel #24-205-375-0005-00
CITY OF MUSKEGON REVISED PLAT OF 1903 SELY 74 FT LOT 5 & N 30 FT LOT 8 BLK 375
395 Houston Ave
Parcel #205-369-0004-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 4 BLK 369
248 Mason Ave
Parcel #24-205-387-0007-00
CITY OF MUSKEGON REVISED PLAT OF 1903 N 1/2 LOT 7 & W 26.7 FT OF S 1/2 LOT 7 BLK 387
275 Mason Ave
Parcel #24-205-391-0003-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 3 BLK 391
346 Mason Ave
Parcel #24-205-389-0009-00
CITY OF MUSKEGON REVISED PLAT OF 1903 W 30 FT LOT 9 BLK 389
352 Mason Ave
Parcel #24-205-389-0008-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 8 BLK 389
219 Merrill Ave
Parcel # 24-205-386-0012-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 12 BLK 386
271 Merrill Ave
Parcel #24-205-387-0005-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 5 BLK 387
388 Merrill Ave
Parcel #24-205-376-0007-20
CITY OF MUSKEGON REVISED PLAT OF 1903 ELY 66 FT OF WLY 132 FT LOT 7 EXC NLY 20 FT BLK 376
235 Monroe Ave
Parcel #24-205-379-0003-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 28 FT LOT 3 BLK 379
239 Monroe Ave
Parcel #24-205-379-0003-00
CITY OF MUSKEGON REVISED PLAT OF 1903 BLK 379 W 38 FT LOT 3
240 Monroe Ave
Parcel #24-205-367-0010-00
CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 10 BLK 367
250 Monroe Ave
Parcel #24-205-367-0009-00
CITY OF MUSKEGON REVISED PLAT OF 1903 W 1/2 LOT 9 BLK 367
254 Monroe Ave
Parcel #24-205-367-0008-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 40 FT LOT 8 BLK 367
398 Monroe Ave
Parcel #24-205-370-0011-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 27 FT OF LOT 11 BLK 370
1392 Park St
Parcel #24-205-375-0003-20
CITY OF MUSKEGON REVISED PLAT OF 1903 PART LOTS 3-4 & 11 BLK 375 COM ON S LN LOT 11 40 FT
E OF SW COR TH E 84 FT TH NLY 26 FT TH NWLY TO A PT 48.5 FT N OF S LN LOT 11 TH W 62.4 FT TH S
48.5 FT TO BEG
382 W Muskegon Ave
Parcel #24-205-336-0008-00
CITY OF MUSKEGON REVISED PLAT OF 1903 SLY 24.75 FT LOT 9 & NLY 55 FT LOT 8 BLK 336
487 W Muskegon Ave
Parcel #24-205-370-0011-10
CITY OF MUSKEGON REVISED PLAT OF 1903 E 27 FT OF LOT 11 BLK 370
420 Washington Ave
Parcel #24-205-375-0010-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 10 BLK 375
459 Washington Ave
Parcel #24-205-408-0002-00
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 &3 BLK 408
The 28 subject properties are all zoned for residential housing. Twenty-two of the subject
properties are zoned for single family residential. Ten of those lots can be split, resulting in a
total of 34 parcels for single family homes. Six of the subject properties are zoned for multi-
family housing. This will allow for an additional 14 housing units (11 rowhomes and one
triplex). The project will result in a total of 48 housing units with an estimated investment of
over $9,000,000.
The chart below depicts a listing of eligible properties and the basis for their eligibility.
Eligible Property Information Chart
Address Tax Identification Basis of Brownfield Approximate Zoning
Number Eligibility Acreage
1246 5th St 24-205-378-0006-00 Seller Concessions 0.07 R-3
1252 5th St 24-205-378-0006-10 Seller Concessions 0.07 R-3
1245 5th St 24-205-377-0001-00 Seller Concessions 0.12 R-3
1261 5th St 24-205-377-0011-00 Seller Concessions 0.1 R-3
1342 6th St 24-205-388-0006-20 Seller Concessions 0.09 R-3
1349 6th St (2 lots) 24-205-389-0012-00 Seller Concessions 0.19 R-3
1352 6th St (2 lots) 24-205-388-0007-00 Seller Concessions 0.2 R-3
1411 6th St 24-205-390-0011-20 Seller Concessions 0.1 R-3
1387 7th St (2 lots) 24-205-375-0005-00 Seller Concessions 0.22 R-3
395 Houston Ave (2 lots) 24-205-369-0004-00 Seller Concessions 0.21 R-3
248 Mason Ave 24-205-387-0007-00 Seller Concessions 0.14 R-3
275 Mason Ave (2 lots) 24-205-391-0003-00 Seller Concessions 0.18 R-3
346 Mason Ave (2 lots) 24-205-389-0009-00 Seller Concessions 0.09 R-3
352 Mason Ave 24-205-389-0008-00 Seller Concessions 0.2 R-3
219 Merrill Ave 24-205-386-0012-00 Seller Concessions 0.12 R-3
271 Merrill Ave (2 lots) 24-205-387-0005-00 Seller Concessions 0.19 R-3
388 Merrill Ave (2 lots) 24-205-376-0007-20 Seller Concessions 0.2 R-3
235 Monroe Ave 24-205-379-0003-10 Seller Concessions 0.09 FBC, UR
239 Monroe Ave 24-205-379-0003-00 Seller Concessions 0.11 FBC, UR
240 Monroe Ave 24-205-367-0010-00 Seller Concessions 0.11 FBC, UR
250 Monroe Ave 24-205-367-0009-00 Seller Concessions 0.2 FBC, UR
254 Monroe Ave 24-205-367-0008-10 Seller Concessions 0.06 FBC, UR
398 Monroe Ave 24-205-370-0011-10 Seller Concessions 0.08 R-3
1392 Park St 24-205-375-0003-20 Seller Concessions 0.07 R-3
382 W Muskegon Ave 24-205-336-0008-00 Seller Concessions 0.24 R-1
487 W Muskegon Ave 24-205-347-0004-00 Seller Concessions 0.19 FBC, UR
420 Washington Ave (2 Seller Concessions 0.19 R-3
24-205-375-0010-00
lots)
459 Washington Ave (4 Seller Concessions 0.46 R-3
24-205-408-0002-00
lots)
Eligible Activities, Financing, Cost of Plan (Sec. 13(1) (a) (b) (c) (d) (g))
Eligible activities include seller concessions and Brownfield Plan preparation and development
(see chart below).
Eligible Activities Chart
Eligible Activity Cost
Seller Concessions $720,000
Brownfield Plan Preparation and Development $20,000
Sub-total $720,000
Contingency (15%) $108,000
Total Eligible Activities to be paid under this $848,000
Plan
The eligible activities described above will occur on the Property and are further described as
follows:
1. Seller Concessions: If the sale of a home results in a loss to the developer, the difference
between the cost of construction and the sale price is considered a seller concession. For
this Plan, it is anticipated that each home may result in the loss of $15,000 per unit (48
units total).
2. Brownfield Plan Preparation and Development: Costs incurred to prepare and develop
this brownfield plan, as required per Act 381 of 1996, as amended.
It is intended that the above eligible activities will be reimbursed with interest at 5%. An estimate
of the captured taxable value and tax increment revenues, which includes the impact on the
taxing jurisdictions, is included as Attachment B.
Effective Date if Inclusion in the Brownfield Plan
The Nelson Neighborhood Infill Housing Project was added to this Plan on __________, 2019 and
will be amended accordingly upon adoption of this Plan Amendment.
Attachment A
Eligible Property Map
BR 31 NB
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SB
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31
BR
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ST 382
EB
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MONROE
240
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254 235
239
MERRILL
395
487 219
1246
1252
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388 275
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1349
MORRALL
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JEFFERSON
346 M
1392 1387 352
CA
420
1411
WASHINGTON
8TH
459
OOSTERBAAN
GRAND
GRAND
GLADE
SOUTHERN
BR 31 SB
5TH
MESSLER
FOREST
GLADE
GLADE
DALE DALE
JEFFERSON
PARK
DALE
324
6TH
LARCH
NELSON SCATTERED SITE BROWNFIELD
ELIGIBLE PROPERTIES
NEIGHBORHOOD BOUNDARY LAKETON
Attachment B
Expenses to be Interest Owed Amount Paid in Total Amt
Yearly Reimbursed after per Year on Current Year Paid for
Taxable Capture Total Current Year Remaining for Eligible Eligible
Value Amount Captured Capture Balance Expenses Expenses
Year 0 (2019) 0 0 0 $848,000
Year 1 $3,360,000 $95,247 $95,247 $795,153 $42,400.00 $52,847.00 $52,847.00
Year 2 $3,360,000 $95,247 $190,494 $739,664 $39,757.65 $55,489.35 $108,336.35
Year 3 $3,360,000 $95,247 $285,741 $681,400 $36,983.18 $58,263.82 $166,600.17
Year 4 $3,360,000 $95,247 $380,988 $620,223 $34,069.99 $61,177.01 $227,777.18
Year 5 $3,360,000 $95,247 $476,235 $555,987 $31,011.14 $64,235.86 $292,013.03
Year 6 $3,360,000 $95,247 $571,482 $488,539 $27,799.35 $67,447.65 $359,460.69
Year 7 $3,360,000 $95,247 $666,729 $417,719 $24,426.97 $70,820.03 $430,280.72
Year 8 $3,360,000 $95,247 $761,976 $343,358 $20,885.96 $74,361.04 $504,641.76
Year 9 $3,360,000 $95,247 $857,223 $265,279 $17,167.91 $78,079.09 $582,720.84
Year 10 $3,360,000 $95,247 $952,470 $183,296 $13,263.96 $81,983.04 $664,703.89
Year 11 $3,360,000 $95,247 $1,047,717 $97,214 $9,164.81 $86,082.19 $750,786.08
Year 12 $3,360,000 $95,247 $1,142,964 $6,828 $4,860.70 $90,386.30 $841,172.39
Year 13 $3,360,000 $95,247 $1,238,211 -$88,078 $341.38 $94,905.62 $936,078.00
Year 14 $3,360,000 $95,247 $1,333,458 -$187,729 -$4,403.90 $99,650.90 $1,035,728.90
Year 15 $3,360,000 $95,247 $1,428,705 -$292,362 -$9,386.45 $104,633.45 $1,140,362.35
Year 16 $3,360,000 $95,247 $1,523,952 -$402,227 -$14,618.12 $109,865.12 $1,250,227.47
Year 17 $3,360,000 $95,247 $1,619,199 -$517,586 -$20,111.37 $115,358.37 $1,365,585.84
Year 18 $3,360,000 $95,247 $1,714,446 -$638,712 -$25,879.29 $121,126.29 $1,486,712.13
Year 19 $3,360,000 $95,247 $1,809,693 -$765,895 -$31,935.61 $127,182.61 $1,613,894.74
Year 20 $3,360,000 $95,247 $1,904,940 -$899,436 -$38,294.74 $133,541.74 $1,747,436.48
Year 21 $3,360,000 $95,247 $2,000,187 -$1,039,655 -$44,971.82 $140,218.82 $1,887,655.30
Year 22 $3,360,000 $95,247 $2,095,434 -$1,186,885 -$51,982.77 $147,229.77 $2,034,885.07
Year 23 $3,360,000 $95,247 $2,190,681 -$1,341,476 -$59,344.25 $154,591.25 $2,189,476.32
Year 24 $3,360,000 $95,247 $2,285,928 -$1,503,797 -$67,073.82 $162,320.82 $2,351,797.13
Year 25 $3,360,000 $95,247 $2,381,175 -$1,674,234 -$75,189.86 $170,436.86 $2,522,233.99
Year 26 $3,360,000 $95,247 $2,476,422 -$1,853,193 -$83,711.70 $178,958.70 $2,701,192.69
Year 27 $3,360,000 $95,247 $2,571,669 -$2,041,099 -$92,659.63 $187,906.63 $2,889,099.33
Year 28 $3,360,000 $95,247 $2,666,916 -$2,238,401 -$102,054.97 $197,301.97 $3,086,401.29
Year 29 $3,360,000 $95,247 $2,762,163 -$2,445,568 -$111,920.06 $207,167.06 $3,293,568.36
Year 30 $3,360,000 $95,247 $2,857,410 -$2,663,094 -$122,278.42 $217,525.42 $3,511,093.77
Assumptions:
* Taxable value of each house is $70,000 every year, no inflation
* 48 houses are built and complete at the end of year 0
Commission Meeting Date: May 14, 2019
Date: April 29, 2019
To: Honorable Mayor and City Commissioners
From: Jeffrey Lewis, Director of Public Safety
RE: Fireworks Ordinance Update (Sec. 30-303 & 30-308)
_______________________________________________________
SUMMARY OF REQUEST:
The Director of Public Safety requests that the Commission consider approving an update to
our local fireworks ordinance. The State of Michigan has amended the state law effective
December 28, 2018 as it relates to fireworks use and also providing civil fines for violations.
It significantly shortens the days and times that fireworks can be discharged within the City of
Muskegon. The penalty for discharging fireworks will be a civil infraction carrying a fine of
$1,000.00 for the first offense with $500.00 of the fine collected shall be remitted to the City of
Muskegon Police Department as provided for in MCL.28.457 (3)
FINANCIAL IMPACT:
Revenue generated will be put into a separate account as prescribed above.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the Use of consumer fireworks prohibited ordinance.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 30, Article V of the Code of Ordinances of the City of Muskegon,
Michigan, Sections 303 and 308 are amended to read as follows:
Sec. 30-303. Use of consumer fireworks prohibited.
It shall be unlawful for any person to ignite, discharge, and use consumer
fireworks except on the following days after 11:00 a.m.:
(1) December 31 until 1:00 a.m. on January 1;
(2) The Saturday and Sunday immediately preceding Memorial Day until 11:45
p.m. on each of those days;
(3) June 29 to July 4 until 11:45 p.m. on each of those days;
(4) July 5, if that date is a Friday or Saturday, until 11:45 p.m.; and
(5) The Saturday and Sunday immediately preceding Labor Day until 11:45 p.m.
on each of those days.
Sec. 30-308. Penalty.
(1) A violation of Section 30-303 shall result in a civil fine of $1,000 for each
violation and no other fine or sanction as provided for in MCL 28.457(3). The
first $500.00 of the fine collected under this section shall be remitted to the City
of Muskegon Police Department as provided for in MCL 28.457(3).
(2) Except as provided in Section 30-308(1), a violation of Article V of this Chapter
shall be responsible for a municipal civil infraction. Fines and penalties stated
within Public Act 256 of 2011 (MCL 28.541, et. seq.) may be imposed.
2. This Ordinance is to become effective ten (10) days after adoption.
Ayes:
Nays:
First Reading:
Second Reading:
CERTIFICATE
The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2019, at which meeting a quorum was present and remained
throughout, and 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.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon amended Chapter 30, Article V, Sections 30-303 and 30-308 of the
Muskegon City Code, summarized as follows:
1. Section 30-303 is amended to prohibit the lighting, discharging and use of
consumer fireworks, excluding certain hours on or near holidays.
2. Section 30-308 establishes the civil fine for violating Section 30-303,
including the allocation of the civil fine, and a municipal civil infraction for
other offenses in Article V of Chapter 30 of the Muskegon City Code.
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
MICHIGAN FIREWORKS SAFETY ACT (EXCERPT)
Act 256 of 2011
28.457 Local ordinances.
Sec. 7. (1) Except as provided in this act, a local unit of government shall not enact or enforce an
ordinance, code, or regulation pertaining to or in any manner regulating the sale, display, storage,
transportation, or distribution of fireworks regulated under this act.
(2) A local unit of government may enact an ordinance regulating the ignition, discharge, and use of
consumer fireworks, including, but not limited to, an ordinance prescribing the hours of the day or night
during which a person may ignite, discharge, or use consumer fireworks. If a local unit of government enacts
an ordinance under this subsection, the ordinance shall not regulate the ignition, discharge, or use of consumer
fireworks on the following days after 11 a.m.:
(a) December 31 until 1 a.m. on January 1.
(b) The Saturday and Sunday immediately preceding Memorial Day until 11:45 p.m. on each of those
days.
(c) June 29 to July 4 until 11:45 p.m. on each of those days.
(d) July 5, if that date is a Friday or Saturday, until 11:45 p.m.
(e) The Saturday and Sunday immediately preceding Labor Day until 11:45 p.m. on each of those days.
(3) An ordinance under subsection (2) shall impose a civil fine of $1,000.00 for each violation of the
ordinance and no other fine or sanction. The ordinance must provide for the remittance of $500.00 of the fine
collected under the ordinance to the local law enforcement agency responsible for enforcing the ordinance.
(4) Beginning August 1, 2019, a local unit of government with a population of 100,000 or more or a local
unit of government located in a county with a population of 750,000 or more may enact or enforce an
ordinance that regulates the use of a temporary structure. An ordinance established under this subsection may
include, but is not limited to, a restriction on the number of permits issued for a temporary structure,
regulation of the distance required between 2 or more temporary structures, or a zoning ordinance that
regulates the use of a temporary structure. An ordinance established under this subsection may not prohibit
the temporary storage, transportation, or distribution of fireworks by a consumer fireworks certificate holder
at a retail location that is a permanent building or structure. As used in this subsection, "temporary structure"
means a movable structure that is used in the sale, display, storage, transportation, or distribution of fireworks,
including, but not limited to, a tent or a stand.
History: 2011, Act 256, Eff. Jan. 1, 2012;Am. 2013, Act 65, Imd. Eff. June 19, 2013;Am. 2018, Act 635, Imd. Eff. Dec. 28,
2018.
Rendered Thursday, April 25, 2019 Page 1 Michigan Compiled Laws Complete Through PA 2 of 2019
Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov
COMMISSION MEETING DATE May 14, 2019
Date: April 29, 2019
To: Honorable Mayor and City Commissioners
From: Jeffrey Lewis, Director of Public Safety
RE: Prohibition of Sale and the Consumption of Marihuana in
Public Places (Sec 58-4)
_______________________________________________________
SUMMARY OF REQUEST:
The Director of Public Safety requests that the Commission consider approving the prohibition
of sale and consumption of marijuana in public places.
• A public place is considered any places owned, occupied, or managed by the City of
Muskegon
• The penalty is a civil infraction as prescribed by MCL.333.27965.
• This ordinance does not supersede rights and obligations with the respect to the
transfer or consumption of marihuana on private property to the extent authorized by
the person who owns, occupies, or operates such property and with respect to the use
of marihuana for medicinal purpose.
FINANCIAL IMPACT:
Revenue generated will be put into a separate account.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the prohibition of sale and consumption of marijuana in public
places.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 58, Article I of the Code of Ordinances of the City of Muskegon,
Michigan, Sections 58-4 is adopted to read as follows:
Sec. 58-4. – Prohibition of Sale and Consumption of Marihuana in Public
Places.
(a) In conformance with the Michigan Regulation and Taxation of Marihuana
Act, the sale or consumption of marihuana in any form and the sale or display
of marihuana accessories, as defined by the Michigan Regulation and
Taxation of Marihuana Act, is prohibited in any public places owned,
occupied, or managed by the City of Muskegon.
(b) Any person who violates any of the provisions of this section shall be
responsible for a civil fine as prescribed by MCL 333.27965.
(c) This section does not supersede rights and obligations with respect to the
transfer and consumption of marihuana on private property to the extent
authorized by the person who owns, occupies or operates such property, as
provided and authorized by the Michigan Regulation and Taxation of
Marihuana Act, and does not supersede rights and obligations with respect to
the use of marihuana for medicinal purposes as provided by any law of the
State of Michigan allowing for or regulating marihuana for medical use.
2. This Ordinance is to become effective ten (10) days after adoption.
Ayes:
Nays:
First Reading:
Second Reading:
CERTIFICATE
The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2019, at which meeting a quorum was present and remained
throughout, and 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.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon adopted Chapter 58, Article I, Section 58-4 of the Muskegon City
Code, summarized as follows:
1. Section 58-4 is adopted to prohibit the sale or consumption of marihuana in
any form and the sale or display of marihuana in public places owned,
occupied or managed by the City of Muskegon and to set penalties as
provided by MCL 333. 27965.
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT (EXCERPT)
Initiated Law 1 of 2018
333.27965 Violations; penalties.
Sec. 15. A person who commits any of the following acts, and is not otherwise authorized by this act to
conduct such activities, may be punished only as provided in this section and is not subject to any other form
of punishment or disqualification, unless the person consents to another disposition authorized by law:
1. Except for a person who engaged in conduct described in sections 4(1)(a), 4(1)(b), 4(1)(c), 4(1)(d),
4(1)(g), or 4(1)(h), a person who possesses not more than the amount of marihuana allowed by section 5,
cultivates not more than the amount of marihuana allowed by section 5, delivers without receiving any
remuneration to a person who is at least 21 years of age not more than the amount of marihuana allowed by
section 5, or possesses with intent to deliver not more than the amount of marihuana allowed by section 5, is
responsible for a civil infraction and may be punished by a fine of not more than $100 and forfeiture of the
marihuana.
2. Except for a person who engaged in conduct described in section 4, a person who possesses not more
than twice the amount of marihuana allowed by section 5, cultivates not more than twice the amount of
marihuana allowed by section 5, delivers without receiving any remuneration to a person who is at least 21
years of age not more than twice the amount of marihuana allowed by section 5, or possesses with intent to
deliver not more than twice the amount of marihuana allowed by section 5:
(a) for a first violation, is responsible for a civil infraction and may be punished by a fine of not more than
$500 and forfeiture of the marihuana;
(b) for a second violation, is responsible for a civil infraction and may be punished by a fine of not more
than $1,000 and forfeiture of the marihuana;
(c) for a third or subsequent violation, is guilty of a misdemeanor and may be punished by a fine of not
more than $2,000 and forfeiture of the marihuana.
3. Except for a person who engaged in conduct described by section 4(1)(a), 4(1)(d), or 4(1)(g), a person
under 21 years of age who possesses not more than 2.5 ounces of marihuana or who cultivates not more than
12 marihuana plants:
(a) for a first violation, is responsible for a civil infraction and may be punished as follows:
(1) if the person is less than 18 years of age, by a fine of not more than $100 or community service,
forfeiture of the marihuana, and completion of 4 hours of drug education or counseling; or
(2) if the person is at least 18 years of age, by a fine of not more than $100 and forfeiture of the marihuana.
(b) for a second violation, is responsible for a civil infraction and may be punished as follows:
(1) if the person is less than 18 years of age, by a fine of not more than $500 or community service,
forfeiture of the marihuana, and completion of 8 hours of drug education or counseling; or
(2) if the person is at least 18 years of age, by a fine of not more than $500 and forfeiture of the marihuana.
4. Except for a person who engaged in conduct described in section 4, a person who possesses more than
twice the amount of marihuana allowed by section 5, cultivates more than twice the amount of marihuana
allowed by section 5, or delivers without receiving any remuneration to a person who is at least 21 years of
age more than twice the amount of marihuana allowed by section 5, shall be responsible for a misdemeanor,
but shall not be subject to imprisonment unless the violation was habitual, willful, and for a commercial
purpose or the violation involved violence.
History: 2018, Initiated Law 1, Eff. Dec. 6, 2018.
Compiler's note: This new act was proposed by initiative petition pursuant to Const. 1963, art 2, section 9. The proposed language
was certified to the legislature on April 26, 2018 with the 40-day consideration period lapsing on June 5, 2018. The initiative petition was
submitted to the voters as proposal 18-1 at the November 6, 2018 general election where it was approved 2,356,422 for and 1,859,675
against.
Rendered Thursday, April 25, 2019 Page 1 Michigan Compiled Laws Complete Through PA 2 of 2019
Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov
Commission Meeting Date: May 14, 2018
Date: May 7, 2019
To: Honorable Mayor and City Commission
From: Community and Neighborhood Services Department (CNS)
RE: 2019 CDBG/HOME Budget Recommendations
______________________________________________________________
SUMMARY OF REQUEST: To approve the 2019 Budget recommendations
for CDBG/HOME Allocations.
FINANCIAL IMPACT: Budget will be published for release of funds request.
BUDGET ACTION REQUIRED: To finalize the budget for the CNS
department and direct staff to publish approved 2019 CDBG/HOME Allocation
and Budget for Release of Funds and Environmental Review of Projects.
STAFF RECOMMENDATION: To approve the 2019 CDBG and HOME
Budgets.
COMMITTEE RECOMMENDATION: The Citizens District Council has made
their recommendations. (See attached spreadsheet)
CDBG Organization/Agency Activity CNS-Staff Proposed 2019 CDC Proposed 2019
COM - Finance Youth Opportunities/Summer Internships $ 20,000.00 $ 20,000.00
COM - CNS CDBG Admin ** $ 197,690.20 $ 197,690.20
COM - CNS Priority Home Repair $ 100,000.00 $ 125,000.00
COM - CNS Services Delivery $ 65,000.00 $ 65,000.00
COM - CNS Residential Façade Program $ 50,000.00 $ 50,000.00
COM - Finance Fire Station Bond Repayment $ 254,166.66 $ 254,166.66
COM - Inspections Dangerous Bldgs - Demolition $ 25,000.00 $ 25,000.00
COM - Inspections Dangerous Bldgs - Board-Ups $ - $ -
COM - Leisure Services Youth Recreation* $ 100,000.00 $ 100,000.00
COM - Planning Code Enforcement Staff $ - $ -
COM - Engineering Smith Ryerson Park
COM - Engineering Neighborhood Beautification - 3rd St Sidewalks
COM - Planning Economic Development $ 10,000.00 $ -
COM - CNS Youth Center $ 111,594.14 $ 86,594.14
COM - Engineering Sidewalks - ADA $ 10,000.00 $ 20,000.00
COM - DPW Skate Park $ 30,000.00 $ 20,000.00
COM - ?** Construction of ADA Enhancements-Convention Center $ 10,000.00
**not vetted, recommended by the CDC $ 973,451.00 $ 973,451.00
HOME Organization/Agency Activity CNS-Staff Proposed 2019 CDC Proposed 2019
CHDO Allocation Housing Affordable Units**** $ 50,222.70 $ 50,222.70
CHDO Administration Administration $ - $ -
COM - CNS HOME Administration*** $ 33,481.80 $ 33,481.80
COM - CNS Rental Rehab $ 20,000.00 $ 20,000.00
COM - CNS HOME Rehab Construction * $ 110,000.00 $ 110,000.00
COM - CNS HOME Infill $ 121,113.50 $ 121,113.50
$ 334,818.00 $ 334,818.00
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: May 8, 2019
RE: Purchase Agreement – Former Farmers Market Site
SUMMARY OF REQUEST:
City staff is seeking permission to amend the purchase agreement with Core Development, as follows:
1. Acquisition of the former farmers market site for $150,000
2. Closing on the parcels must take place on or before June 15, 2019
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To authorize the city manager execute a purchase agreement with the approved terms for city-owned
properties comprising the former farmers market site: 731 Yuba Street, 205 East Muskegon Ave, 287
East Muskegon Ave, and 225 Eastern Ave.
COMMITTEE RECOMMENDATION: