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City of Muskegon
City Commission Meeting
Agenda
June 27, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
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hearing impaired and audio tapes of printed materials being considered at the meeting, to individuals with
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Individuals with disabilities requiring auxiliary aids or services should contact the City of Muskegon by writing
or by calling the following: Ann Marie Meisch, MMC – City Clerk, 933 Terrace Street, Muskegon, MI 49440;
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Pages
1. Call To Order
2. Prayer
3. Pledge of Allegiance
4. Roll Call
5. Honors, Awards, and Presentations
6. Public Comment on Agenda Items
7. Consent Agenda
7.a Approval of Minutes - City Clerk 1
7.b Arena Concessions - Finance/Arena 17
7.c Rezoning of 1043 Washington Avenue - Planning 31
7.d Approval of contract for Mediation & Restorative Services - Planning 38
7.e MEDC RAP 1.0 Grant - Development Services 42
7.f MEDC RAP 2.0 Grant - Development Services 103
7.g End of Year Budget Amendment - Finance 114
7.h Real Estate Purchase Agreement for The Splash Pad - Downtown Muskegon 118
Development Center No. 2, Association and the City of Muskegon - Economic
Development
7.i Transfer of Obsolete Property Rehabilitation Exemption Certificate #3-016-0027 128
from P & G Holdings NY, LLC to the new owners, Shaw QOZB2, LLC - Economic
Development
7.j Contract Award - City Hall Boiler Replacement - Public Works 136
7.k Water and Sewer Systems Debt Service Fee - Public Works 139
7.l DWRF Lead Water Line Engineering - Public Works 144
7.m EGLE Brownfield Loan Application - City of Muskegon and the Meadows LLC - 149
Economic Development
7.n EGLE Brownfield Loan Application - Downtown Development Authority, 152
Parkland Properties of Michigan, 965 W. Western Ave., 920 & 930 Washington
Ave. - Economic Development
8. Public Hearings
8.a Brownfield Plan Amendment, 880 1st Street, 216 West Clay Avenue - Economic 155
Development
9. Unfinished Business
9.a Transmittal of 2023-24 Proposed Budget - Finance 163
10. New Business
10.a Distribution of Master Plan to Notice Group - Planning 169
11. Any Other Business
12. Public Comment on Non-Agenda items
13. Closed Session
14. Adjournment
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the May 23, 2023 Regular Commission Meeting.
Detailed Summary & Background:
Goal/Focus Area/Action Item Addressed:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the minutes.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
City of Muskegon
City Commission Meeting
Minutes
May 23, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rachel Gorman
Commissioner Rebecca St.Clair
Commissioner Eric Hood (left about 7:30 p.m.)
Vice Mayor Willie German, Jr.
Commissioner Michael Ramsey
Commissioner Teresa Emory
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
City Attorney John Schrier
Deputy City Clerk Kimberly Young
1. Call To Order
The Regular Meeting of the City of Muskegon was held at City Hall, 933 Terrace
Street, Muskegon, Michigan at 5:30 p.m. on Tuesday, May 23, 2023. Mayor
Johnson called the City Commission Meeting to order at 5:30 p.m.
2. Prayer
Pastor Tara Foreman, Bethany Christian Reformed Church, opened the meeting
with prayer.
3. Pledge of Allegiance
The Pledge of Allegiance to the Flag was recited by the Commission and the
public.
4. Roll Call
As recorded above
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5. Honors, Awards, and Presentations
5.a Muskegon Pride Center
Jeffery Pienela, President of Muskegon Pride Center, addressed the
commission regarding the upcoming Muskegon Pride Festival and
Muskegon Pride Parade.
5.b Seaway Run Presentation
Commissioner Ramsey shared information regarding the 2023 Seaway
Run. The Seaway Run is partnering with all area schools, providing
schools with a code and a champion. Students register at cost ($12) and
parents may register for $20. The fee includes the bib, medal, t-shirt.
Reach out to your school office or Seaway Run for the code for your
school.
6. Public Comment on Agenda Items
Public comments were received.
7. Consent Agenda
Action No. 2023-61
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To accept the consent agenda as presented, minus items 7b, 7e, and 7i.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair,
Commissioner Hood, Vice Mayor German, Commissioner Ramsey, and
Commissioner Emory
MOTION PASSES (7 to 0)
7.a Approval of Minutes - City Clerk
To approve the minutes of the April 25, 2023 Regular Commission
Meeting.
STAFF RECOMMENDATION: To approve the minutes.
7.c Environmental Contract - Public Safety
There were three bids for the City of Muskegon Environmental cleanup
and grass mowing contract. Earth Creations, Barry's Greenhouse, and
Preferred Lawn Care. Earth Creations came in as the lowest bidder.
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AMOUNT REQUESTED: $197,000 per fiscal year/3-year contract
AMOUNT BUDGETED: $197,000 per year 2023-2026 contract, with an
approximate increase of 10% per year.
FUND OR ACCOUNT: 101-387-494
STAFF RECOMMENDATION: To approve and award the Environmental
clean-up contract to Earth Creations for the upcoming June 5, 2023
through June 5, 2026 and allow the Director of Public Safety to sign the
contract.
7.d All Traffic Solution Contract Renewal - Public Safety
All Traffic Solutions contract is up for renewal as of September 30, 2023.
All Traffic Solutions is the company that we have purchased our digital
display traffic trailers (2). This contract will be for the continued upkeep of
technical support which allows the police department to program the
trailers from a desktop in the office, receive satellite signal. The traffic
trailers have been used in different area of the city to reduce speeding and
at Pere Marquette notifying of paid parking and speed. This amount for the
3-year contract is at a 20% savings to the City.
AMOUNT REQUESTED: $7,200 for a 3-year contract
AMOUNT BUDGETED: $7,200 for a 3-year contract
FUND OR ACCOUNT: 101-301-801
STAFF RECOMMENDATION: To approve the renewal of the 3-year
contract with All Traffic Solutions.
7.f Lumberjacks Renovations - Arena
Seeking approval to construct new team space at Trinity Health Arena. In
exchange, the Lumberjacks would like to add an additional renewal option
to Lumberjacks Shared Use Agreement.
All Traffic Solutions is the company that we have purchased our digital
display traffic trailers (2). This contract will be for the continued upkeep of
technical support which allows the police department to program the
trailers from a desktop in the office, receive satellite signal. The traffic
trailers have been used in different area of the city to reduce speeding and
at Pere Marquette notifying of paid parking and speed. This amount for the
3-year contract is at a 20% savings to the City.
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STAFF RECOMMENDATION: To approve continued exploration for the
addition and amendment and authorize the City Manager and Clerk to
sign.
7.g Parks & Recreation Advisory Committee Establishing Ordinance -
2nd Reading - Public Works
An ordinance to provide guidelines for the creation of a Parks &
Recreation Advisory Committee.
STAFF RECOMMENDATION: To adopt the Parks & Recreation Advisory
Committee ordinance as presented.
7.h Brownfield Development & Reimbursement Agreement, The
Meadows at Harbor 31 LLC, 170 Viridian Drive - Economic
Development
Staff is seeking approval of the Brownfield Development and
Reimbursement Agreement for the Meadows at Harbor 31 LLC and
approval of the resolution.
The Meadows at Harbor 31 is located on 2.5-acres along Muskegon Lake.
The proposed redevelopment activities will include a 21 two-story multi-
family duple style residential homes with surrounding grass lawn areas,
sidewalks and roadways creating a walkable community that provides
access to Muskegon Lake, greenspace areas in downtown Muskegon.
Sustainable development concepts are proposed throughout the project
including green building techniques and low-impact development and
stormwater management. The total costs for the eligible activities,
including contingencies and interest, are $1,961,135. The Brownfield TIF
Revenue will be used to reimburse the Developer for the Developer
Eligible Activities incurred and approved for the Project.
The Total private investment, not including property acquisition, is
approximately $7,000,000. Development is expected to begin this fall
through 2024.
The Development & Reimbursement Agreement outlines the procedures
for the City to reimburse the Developer for eligible expenses within the
Brownfield Plan. The Authority shall pay 100% of the available Brownfield
TIF Revenue to the Developer to reimburse the costs of Developer Eligible
Activities. The Developer will provide the BRA a request for payment of
eligible expenses. The BRA has 30 days to approve the request.
Payments are made on a semi-annual basis when incremental local taxes
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are captured and available. This agreement is to be approved by the
Brownfield Redevelopment Authority during a special meeting held on
May 23, 2023.
The Brownfield Plan Amendment was approved by the BRA on April 14,
2023 and the Commission on April 25, 2023.
STAFF RECOMMENDATION: To approve the Meadows at Harbor 31,
LLC Brownfield Development and Reimbursement Agreement and
authorize the Mayor and City Clerk to sign the agreement and resolution.
7.j Ordinance to Prohibit Illegal Entry into a Motor Vehicle - Public
Safety
Proposal of an ordinance to prohibit illegal entry into a motor vehicle.
Currently local and state law makes it unlawful for any person to enter a
motor vehicle and steal an item. To appropriately charge this offense,
intent needs to be proven that the defendant intended to steal when
entering, or they are caught with the item they removed from the vehicle.
There is no law that prohibits anyone from just entering another person’s
vehicle. In 2022 MUPD investigated 212 reports of larceny from a motor
vehicle. This proposed ordinance makes it illegal for someone to enter
another person’s vehicle. This will allow MUPD another tool during our
investigations.
STAFF RECOMMENDATION: To approve the proposed ordinance
making it illegal for someone to enter another person’s vehicle.
7.k Lakeshore Art Festival Grant - City Clerk
The City of Muskegon is in the process of pursuing a grant from the
Michigan Arts and Culture Council Grant (MACC) in the amount of
$25,000 to support the 2024 Lakeshore Art Festival. Grant funds will
support artists’ fees (performers and artists), art supplies for the interactive
art activities, and marketing efforts to attract a diverse audience. Per the
grant requirements, the funds will be matched 1:1 from the Festival budget
through sponsorship dollars.
STAFF RECOMMENDATION: To authorize staff to apply for the MACC
grant in the amount of $25,000
7.b City Manager DEI Certification - City Manager
Approval for the City Manager to enroll in Cornell University's Diversity,
Equity & Inclusion (DEI) online Certificate Program. As part of the City
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Manager’s employment agreement, there’s a requirement to complete a
DEI certificate program (time frame is unspecified). After some research
and talking with DEI practitioners, I am requesting approval to enroll in
Cornell University’s online DEI Certificate Program.
This program comes highly recommended and is well respected in the DEI
field. I have included an endorsement of the program from Muskegon
Community College’s Chief Diversity Officer, Ken James for your
reference. The program has rolling start dates. It is my objective to start
the program in June or July which should lead to completion by early fall
2023. Although this expense is within the City Manager’s authority,
Commission is being asked to approve this item as it was called out as a
requirement in the City Manager’s contract.
AMOUNT REQUESTED: $3,700
AMOUNT BUDGETED: N/A
FUND OR ACCOUNT: 101-172-861
STAFF RECOMMENDATION: To approve the enrollment of the City
Manager in Cornell University's Online DEI Certificate Program.
Action No. 2023-62(b)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the enrollment of the City Manager in Cornell University's
Online DEI Certificate Program.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
7.e Annual Action Plan Budget2023 - Community & Neighborhood
Services
The Annual Action Plan Budgets are presented to the Commission for
approval based on the Department of Housing and Urban Development
(HUD) appropriations for FY2023. The Community Planning and
Development (CPD) office funded programs are Community Development
Block Grand (CDBG) and HOME investment Partnerships (HOME) and
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the allocations total $1,226,786.00 for eligible programs administered by
the office of Community and Neighborhood Services. The budgets for
CDBG and HOME have been provided for review.
STAFF RECOMMENDATION: To approve the 2023 Annual Action Plan
Budgets for CDBG and HOME Programs.
Action No. 2023-62(e)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve the 2023 Annual Action Plan Budgets for CDBG and HOME
Programs.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
7.i FY24 DWRF Project Plan Updates - Department of Public Works
The City’s DWRF Project Plan on file with the state for future revolving
fund projects has been updated, and the City needs to receive comment
and adopt the plan by resolution.
The City has taken advantage of favorable rates and even some principal
forgiveness as a part of the state’s Revolving Loan Fund programs to
complete substantial utility improvement projects, such as the Sanford
Street project currently underway. In order to be eligible for these
programs, projects must be included in the City’s “Project Plan” that is on
file with the state department of EGLE. The specific projects proposed for
the program are not known at this time; this Project Plan is simply a list of
projects the City may propose for the program in the future. The list is
used by the state to perform preliminary environmental and other
clearance work so they are prepared for the projects if and when the City
proposes them.
Prein & Newhof has updated our Drinking Water Revolving Fund (DWRF)
Project Plan (the plan dedicated to drinking water projects) to show
potential projects over the next several years. Part of the updating
process includes holding a meeting where the public can comment on the
plan (satisfied by today’s meeting and the public comment periods within
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it), and a resolution by the Commission adopting the plan. The resolution
is attached.
An Executive Summary of the Project Plan is included. For the full version
(520 pages, 34MB), please visit: 2023-05-08 DWRF Project Plan -
Muskegon -DRAFT
STAFF RECOMMENDATION: To adopt the City's 2024 DWRF Project
Plan by resolution.
Action No. 2023-62(i)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To adopt the City's 2024 DWRF Project Plan by resolution.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
8. Public Hearings
8.a Request for an Industrial Facilities Exemption Certificate - Pacific
Floorcare, 2259 S. Sheridan Drive - Planning & Economic
Development
Pacific Floorcare has requested an Industrial Facilities Tax Exemption
Certificate. The company will be making an investment of $2,570,524 in
real property improvements and plans on creating up to 17 jobs as part of
the overall project, qualifying them for a 12-year abatement.
Pacific Floor Care is a manufacturing facility providing quality, and
innovative floor care equipment. Pacific Floorcare will begin construction
for an expansion this month. The expansion will add an additional 36,000
sq ft to the property on 2259 South Sheridan Drive. The new combined
building will be 72,000 sq ft of commercial office and manufacturing space.
The new facility will provide for additional rotational molding equipment
and new production lines in support of new product launches. The new
building will also include a 2,100 sq ft customer training
center. The total investment for this project is $2,570,524 in real property.
This project will create 17 new jobs, add additional space for lines,
warehousing, products and training.
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Staff Comments: There is an established Industrial Development District
on this site from July 26,1983 that encompasses the Port City Industrial
Park and is included in the agenda packet. The IFT committee reviewed
the applicant's project on May 9, 2023 and based on their findings and
calculations, the committee suggests approval of the attached resolution
for a term of 12 years for real property. The business has turned in all of
the necessary documents and application fee.
Contessa Alexander with the Development Services Department
presented information on the request for the Industrial Facilities Exemption
Certificate. Dwana Thompson, Equal Employment Opportunity Director,
provided information on the demographic information and reported that the
company does have an Affirmative Action Policy and EEO Policy. Bill
Fisher, President of Pacific Floor Care - Larry Hines, owner and Greg
Weiss, Vice President of Sales were in attendance. Mr. Fisher provided
information on the expansion of their business. Morgan Carrol, Greater
Muskegon Economic Development supports the project and encourages
the commission to support the request to approve the exemption.
STAFF RECOMMENDATION: To close the public hearing and approve
the resolution granting an Industrial Facilities Exemption Certificate for a
term of 12 years for real property to Pacific Floor Care.
PUBLIC HEARING COMMENCED:
Deborah Peabody, Nelson Neighborhood, not against exemption but has
questions about the demographics of the employees of the company.
Jake Eckholm, Development Services Director, pointed out that this
company meets the criteria put forth by our scoring policy for qualifying for
the exemption.
Action No. 2023-63(a)
Motion by: Commissioner Ramsey
Second by: Commissioner Gorman
To close the public hearing and approve the resolution granting an
Industrial Facilities Exemption Certificate for a term of 12 years for real
property to Pacific Floor Care.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
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MOTION PASSES (7 to 0)
8.b Brownfield Plan Amendment, 3rd Amendment, Adelaide Pointe
QOZB, LLC - Development Services
Approval for Brownfield Plan Amendment, 3rd Amendment for Adelaide
Pointe QOZB, LLC (Adelaide Pointe Project) and to consider the
resolution.
Adelaide Pointe QOZB, LLC has submitted a Brownfield Plan Amendment
(3rd Amendment) for the Adelaide Pointe Project – a 35-acre mixed use
waterfront development project including winter boat storage, marina
space, In/Out forklift boat storage, commercial/retail, and up to 400
housing units. Plans for this site has begun and will continue through Fall
2030 with a total investment of $92,000,000 (not including property
acquisition). The mixed-use waterfront development will create
approximately 100 new jobs (retail, office, restaurant, marina) and provide
contractor work for hundreds of temporary construction workers.
This amendment adds in the eligible environmental and non-
environmental activities and property boundaries (1100 West Western
Avenue) related to the construction of a Dry Rack storage building on the
eastern portion of the new redevelopment area. This caused an increase
in total investment by approximately $7,000,000 an increase in taxable
value by $2,800,000 and increase in environmental and non-
environmental activities equating to approximately $1,900,000. Future
amendments to this amended BPA may be pursued for phases four and
five of the development.
In addition to environmental activities, non-environmental activities will
include demolition, lead/asbestos abatement, site preparation and public
infrastructure improvements. TIF will be used to reimburse the Developer,
for the following eligible activities:
Pre-approved BEA, documentation of due care, asbestos/lead paint
survey, and additional due care assessment
Due care activities
Asbestos, lead paint, and mold abatement
Select building and site demolition
Site preparation
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Infrastructure improvements (public)
15% contingency
Brownfield Plan Amendment
Brownfield Plan Amendment Implementation
Interest
Staff Comments:
Adelaide Pointe Brownfield Plan Amendment Approval Dates:
Brownfield Plan Amendment- BRA approval on Oct. 12, 2021 and CC on
Oct 26, 2021
1st Amendment to the BPA- BRA approval on Dec. 13, 2022 and CC on
Dec. 13, 2023.
2nd Amendment to the BPA- BRA and CC approval on Mar. 14, 2023
3rd Amendment to the BPA- BRA approval on May 9, 2023.
STAFF RECOMMENDATION: To close the public hearing and approve
the resolution for the Brownfield Plan Amendment, 3rd Amendment for the
Adelaide Pointe Project authorizing the Mayor and City Clerk to sign.
Contessa Alexander, Development Analyst, presented information on the
request for the Amendment.
PUBLIC HEARING COMMENCED:
Jamie Cross, Nelson Neighborhood, frustrated that there is no plan for the
park/public space at Adelaide Pointe.
Diane Foster, Jackson Hill Neighborhood, wants to know if they're
planning to take money from the newly created Recreation Department -
who is paying for the park?
Deborah Peabody, Nelson Neighborhood, is any part of the $2 million
going to this?
Director Eckholm clarified some issues for the commission, he also
clarified that the park that is being referenced is not part of Adelaide
Pointe's private development, it is city property being improved by
Adelaide Pointe.
Action No. 2023-63(b)
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Motion by: Commissioner Ramsey
Second by: Commissioner Hood
To close the public hearing and approve the resolution for the Brownfield
Plan Amendment, 3rd Amendment for the Adelaide Pointe Project
authorizing the Mayor and City Clerk to sign.
Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
Ramsey, and Commissioner Emory
MOTION PASSES (7 to 0)
9. Unfinished Business
10. New Business
10.a 3rd Amendment, Brownfield Development & Reimbursement
Agreement, Adelaide Pointe QOBZ, LLC - Economic Development
Staff is seeking approval for the 3rd Amendment, Brownfield Development
& Reimbursement Agreement, for Adelaide Pointe QOZB, LLC (Adelaide
Pointe Project) and to consider the resolution.
Adelaide Pointe QOZB, LLC has submitted a Brownfield Plan Amendment
(3rd Amendment) for the Adelaide Pointe Project – a 35-acre mixed use
waterfront development project including winter boat storage, marina
space, In/Out forklift boat storage, commercial/retail, and up to 400
housing units. Plans for this site has begun and will continue through Fall
2030 with a total investment of $92,000,000 (not including property
acquisition). The mixed-use waterfront development will create
approximately 100 new jobs (retail, office, restaurant, marina) and provide
contractor work for hundreds of temporary construction workers.
Due to the addition of the eligible environmental and non-environmental
activities related to the construction of a Dry Rack storage building
mentioned in the 3rd Amendment to the Brownfield Plan Amendment, the
Brownfield Tiff will change, thus needing an updated Brownfield
Development and Reimbursement Agreement. This will cause a shift in
the Brownfield Tax Increment Funds. This agreement is contingent upon
the approval of the 3rd Amendment to the BPA for Adelaide Pointe.
The cost of Eligible Activities may be incurred by the City and APQ. The
total cost of the Eligible Activities in the Brownfield Plan Amendment,
12
including contingencies, is estimated to be $38 million dollars (the "Total
Eligible Brownfield TIF Costs").
The Development & Reimbursement Agreement outlines the procedures
for the City to reimburse the Developer for eligible expenses within the
Brownfield Plan. The Authority shall pay 100% of the available Brownfield
TIF Revenue to the Developer to reimburse the costs of Developer Eligible
Activities. The Developer will provide the BRA a request for payment of
eligible expenses. The BRA has 30 days to approve the request.
Payments are made on a semi-annual basis when incremental local taxes
are captured and available. This agreement is to be approved by the
Brownfield Redevelopment Authority during a special meeting held on
May 23, 2023.
The 1st Amendment to the DRA for APQ was approved by the BRA and
CC on Jan.10, 2023. The 2nd Amendment to the DRA was approved by
the BRA and CC on March 14, 2023.
STAFF RECOMMENDATION: To approve the Brownfield Development &
Reimbursement Agreement for Adelaide Pointe QOZB, LLC (Adelaide
Pointe Project) and authorize the Mayor and City Clerk to sign the
agreement and resolution.
Action No. 2023-64(a)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To approve the Brownfield Development & Reimbursement Agreement for
Adelaide Pointe QOZB, LLC (Adelaide Pointe Project) and authorize the
Mayor and City Clerk to sign the agreement and resolution.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
10.b Insurance Premium Refund - Non-Union Team Members - City
Manager
In January 2023 several of the City's unions notified management of a
miscalculation in the insurance premiums paid by staff. Upon investigation
13
it was determined that there was an error in contributions paid by union
employees (contributions were negotiated at 10%). An administrative
decision was made to adjust union team members back to 10%
contributions and repay union team members for their over payment.
At the April 11, 2023 meeting, the Commission also made the decision to
adjust non-union team members back to the 10% contributions. This item
is to discuss repayment of non-union employees for the amounts paid
over 10% going back to January 1, 2020.
As a reminder, starting in 2017 the City began using three different factors
to determine employee contributions to their insurance premiums (a
percent of actual monthly premiums and a percent of City Paid Benefits
(co-insurance & deductibles)). Prior to 2017 just insurance premiums were
used as a factor. This change was made because of cost increases in co-
insurance and deductibles.
Sometime after 2017 a calculation error occurred and team member’s
contributions increased above the 10% level. Technically, this is ok for
non-union team members as the Commission can set the non-union
insurance contributions at any rate it desires. However, traditionally, the
insurance contributions have been the same across all employment
classes. On April 11, 2023 the commission approved realigning non-union
team members’ insurance with union members.
The question before the Commission today is, should the City refund non-
union team members for the “overpayments” of health insurance
contributions for the same time period as we were required to do for union
team members? (Going back to Jan. 1, 2020.)
This cost will be about $90,400 in payments back to team members
(ranging from about $3,000 to $70 per team member).
STAFF RECOMMENDATION: To approve repaying non-union staff for
insurance premiums paid in excess of 10% going back to January 1, 2020.
Action No. 2023-64(b)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To approve repaying non-union staff for insurance premiums paid in
excess of 10% going back to January 1, 2020.
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Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
11. Any Other Business
12. Public Comment on Non-Agenda items
Public comments were received.
13. Closed Session
14. Adjournment
The City Commission meeting adjourned at 7:50 p.m.
Motion by: Vice Mayor German
Second by: Commissioner Emory
To adjourn.
MOTION PASSES
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Arena Concessions
Submitted By: Jake Laime Department: Arena
Brief Summary: Staff is seeking City Commission approval to negotiate a 3-year Agreement with
HCK Management to provide concession services at Trinity Health Arena.
Detailed Summary & Background: For several years, Trinity Health Arena has outsourced its
concessions to a 3rd party management team. The City of Muskegon is seeking a qualified team to
provide Concession Management duties including, but not limited to: tracking sales, labor and food
costs, hiring staff, cleaning concession, inventory, ordering supplies/goods, and working with arena
management to continue to provide and enhance a great customer experience.
It is important that arena management is able to control all food, beverage, and expenses
associated with concessions. An RFP was issued for concession management and HCK
Management was the only proposal submitted. HCK Management is qualified to provide this
service.
Goal/Focus Area/Action Item Addressed: Destination, Community and Quality of Life (Enhanced
Recreation and Services)
Amount Requested: $80,000 Amount Budgeted: $80,000
Fund(s) or Account(s): 254 Fund(s) or Account(s): 254
Recommended Motion: To award the proposal to manage concessions at Trinity Health Arena to
HCK Management for a 3 year term beginning 9/1/2023 and ending 9/1/2026, subject to
negotiation and a contract will be presented to the City Commission.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
REQUEST FOR PROPOSALS
PROJECT NAME: Concession RFP
DATE OF ISSUANCE: June 1, 2023
DATE PROPOSAL DUE: June 13, 2023
Submit to City Clerk’s Office
By 2:00 p.m.
933 Terrace Street
Muskegon, MI 49440
ISSUING OFFICE: Trinity Health Arena
c/o – Jake Laime
470 W. Western
Muskegon, MI 49441
231-246-8668
1
City of Muskegon – Trinity Health Arena
Request for Proposal (RFP)
CONCESSIONS IN TRINITY HEALTH ARENA: Concessions and/or Bar Services
1. PURPOSE OF REQUEST
The City of Muskegon (Trinity Health Arena) is seeking concession contractors to provide food, beverage
and/or bar services at Trinity Health Arena. This RFP represents a solicitation by the City of Muskegon and is
intended to encourage vendors to clearly show that they are qualified to provide food, beverage, and/or bar
services in a consistent and revenue positive manner for three (3) years. Each Bidder must clearly identify
their knowledge of concession operations, food safety practices, staffing services, customer relations, point
of sale, and demonstrate financial stability. Requirements and City of Muskegon (Trinity Health Arena) needs
are outlined in this RFP.
2. RFP SUBMITTAL AND SELECTION
Proposals must be submitted no later than Tuesday, June 13, 2023 at 2 pm. Late bids will not be accepted.
Mail or deliver your RFP Submittal to:
City of Muskegon - City Clerk
Concessions RFP
933 Terrace St.
Muskegon, MI 49440
RFP SELECTION
Proposals will be evaluated after receipt. Vendors/contractors will be contacted for questions, concerns, or
additional information and notified of selection.
3. GUIDELINES
Please note the following general requirements that apply to all RFP Submittals.
a. To be evaluated, an RFP Submittal must completely respond to each question in Paragragh 6 and 7
below.
b. The RFP Submittal must be signed by an official legally authorized to bind the organization by
including their signature on the Financial Page.
c. Provide all references and materials required by the RFP instructions.
d. If clarification is required, submit questions by email to [email protected].
◦ Please allow at least one business day for responses.
e. Mail or deliver your signed and completed RFP Submittal to the address under Submittal.
f. All RFP Submittals become the property of the City of Muskegon.
4. PROPOSED SITE and INFORMATION
a. Trinity Health Arena
470 W. Western Ave.
Muskegon, MI 49440
2
b. All applicants are encouraged to visit the site prior to submitting a proposal. Contracts are awarded
and are renewed at the discretion of the City of Muskegon. Contracts may also be terminated from
either party with (90) days written notice.
The successful bidder will be expected to abide by all City of Muskegon – Trinity Health Arena ordinances,
rules, business licensing, Public Health food service requirements, and TIPS Certification. The successful
bidder will also be expected to keep concessions/work area clean and provide daily and event-based clean-
up. The successful bidder will demonstrate the ability to provide an innovative, affordable, and full-service
concession menu/service.
c. Bidders are advised to determine specific Health Department requirements for the proposed
concession. It is the bidder's responsibility to verify that adequate water and electrical service is
available to support the equipment they intend to operate. Any modifications or improvements to
the concession areas shall be determined by the City of Muskegon. The successful bidder will make
suggestions and provide documentation on proposed improvements to the concession space.
d. The bidder understands and agrees that the City of Muskegon will only grant concessions by the
contract, and not lease. Concession contract(s) will only confer permission to occupy and use the
premises described for concession purposes. A successful bidder's expenditure of capital and/or
labor during use and occupancy will not confer any interest or estate on premises by virtue of said
use, occupancy and/or expenditure of money thereon. The City of Muskegon will only grant
successful bidders (“Contractors”) an individual, revocable, and non-transferable privilege of use in
the premises for the concession granted.
5. REQUIREMENTS AND FEES DUE FROM CONTRACTORS
If your proposal is accepted, the following will be due upon issuance of your concession
agreement.
a. City of Muskegon (Muskegon County) Business License: Please be advised that any approved vendor
will have all required business licensing and health department certifications.
b. Insurance: Contractor shall obtain and maintain policies of commercial general liability with
combined single limits of net less than $1,000,000 per occurrence, and $2,000,000 general
aggregate. A $2,000,000 products/completed operations aggregate is required for contractors that
prepare food. The insurance policy shall be written on an occurrence basis. The City shall be named
as an additional insured and a copy of the endorsement naming the City of Muskegon as an
additionally insured shall be attached to the Certificate of Insurance. Certificate of Insurance shall be
filed with the City of Muskegon prior to providing services.
c. Indemnification/Hold Harmless: The Contractor shall defend, indemnify, and hold the Public Entity,
its officers, officials, employees, and volunteers harmless from any and all claims, injuries, damages,
losses, or suits including attorney fees, arising out of or in connection with the performance of this
Agreement, except for injuries and damages caused by the sole negligence of the Public Entity. It is
further specifically and expressly understood that the indemnification provided herein constitutes
the Contractors waiver of immunity under Industrial Insurance solely for the purposes of this
indemnification. This waiver has been mutually negotiated by the parties. The provisions of this
section shall survive the expiration or termination of this Agreement.
d. Compliance with Laws/City codes: The Contractor shall comply with all applicable State, Federal and
City laws, ordinances, regulations, codes, and other City contracts.
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6. RFP EVALUATION AND SUBMISSION PROCESS
Qualified proposals will be reviewed and scored. Final recommendation and award are made by the
City Commission with recommendation from the Arena Manager.
The following criteria will be used to evaluate RFP Submittals:
a. Days and Hours of Operation:
How many days per week and during what hours do you intend to operate concession? What
date would you prefer to open and what date will you close?
b. Products/Services to be offered for sale:
What products/services do you intend to offer? What size(s)? What price(s)? What nutritional
snacks do you intend to offer? Please list all proposed items and unit prices. In addition, we will
assess each proposal regarding environmental sustainability and packaging that is recyclable.
c. Concession Experience/Business References:
Please list at least three (3) references that will support, document, or verify your performance in
providing concession services and/or operating a business. Include name, business name, address,
phone number, fax number and nature of your relationship.
d. Remuneration for the City:
What percentage of gross revenue will be paid to the City or from the City? Or, would you offer
a flat rate? If so, what is the proposed flat rate?
7. PROPOSAL
Proposals should be prepared simply, providing straight forward concise descriptions of bidder's
capabilities to satisfy the requirements of the request. All proposals must include the following:
a. Legal name of Organization, firm, individual of those submitting RFP:
Include address of principal place of business; phone numbers; primary person to contact.
b. Business Experience:
How long has this organization been in business? Description of business. Number of
employees.
c. Concessions Proposal:
◦ In your proposal, please address the following:
1. Please give an example of menus and/or services you wish to provide
2. Please give an example of prices for the above items.
3. Please describe your food safety procedures.
4. Please describe your business in terms of efforts toward environmental sustainability.
5. Please describe your ability/accessibility to staff multiple employees per event.
d. Client References: (Please provide three)
Provide information about three similar clients for whom you currently or previously provided
catering services.
e. Business or Financial References:
Please provide three financial or business references. These could include financial institutions, suppliers,
insurance companies, clients, etc. Please do not use the same references for both Client References and
Business References.
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f. Compensation:
1. Please present detailed information on the firms proposed fee schedule for
specifications proposed and any variation for non-routine services, inclusive of Michigan
State sales tax and any other applicable governmental charges.
2. Please provide a statement outlining how the contractor will document and report
revenues and expenditure.
3. Please detail the percentage of gross sales or flat rate as proposed compensation.
4. Please provide specifics as to definitions of routine versus non-routine tasks, what is
fixed as opposed to variable, and how costs are adjusted according to classification.
5
Request for Proposal
from
HCK Management
Submission:
City Clerk’s Office
933 Terrace Street
Muskegon, Michigan 49440
Issuing Office:
Trinity Health Arena
Jake Laime
470 W. Western Ave
Muskegon, MI 49441
231.246.8668
TABLE OF CONTENTS
SECTION I – Qualifications and Experience – Cover Letter
I.0 Introduction / Cover Letter
I.1 Overview of career & qualifications
I.2 Group Qualifications
SECTION II – Proposed Program
2.0 Mission Statement
2.1 Proposed Vision
2.2 Days / Hours of Operation
2.3 Product and Services
2.4 Concessions Experience
2.5 Food Safety Procedures
2.6 Environmental Sustainability
2.7 Ability to Staff Multiple Employees
SECTION III – Compensation & References
3.0 Remuneration for the City
3.1 Client and Financial References
HCK 2023-2024 RFP to Trinity Health Arena page 1
City of Muskegon, Trinity Health Arena
Attn: Jake Laime
933 Terrace St.
Muskegon Mi. 49440
Andrew Harris
HCK Management
940 W. Western Ave.
Muskegon, Mi. 49441
231.578.2641
[email protected]
SECTION I – Qualifications and Experience – Cover Letter
1.0 Dear City of Muskegon,
Our group; HCK management, consisting of Andrew Harris, Jennifer
Harris Keaney and James Curtis are pleased to submit this proposal for
concessions management at the Trinity Health Arena. Collectively our group has
years of experience in the restaurant business and we are excited to be
considered for this opportunity again in the 2023-2024 season.
After having had the role in managing concessions last season and now
reading the current RFP, our group recognizes what the Arena is requesting and
strongly feel that we have and will continue to have a great partnership.
Attached is our full proposal package for your review. If you have any
questions or require more information please contact Andrew Harris at
231.578.2642. Again we appreciate your consideration.
Sincerely,
Andrew Harris
James Curtis
Jennifer Harris Keaney
HCK 2023-2024 RFP to Trinity Health Arena page 2
1.1 Overview of Career & Qualifications - Our group has maintained a strong
presence in the Muskegon area for many years. We bring experience and
knowledge of business ownership as well as restaurant development and
management. For the past year we have been commissioned by Trinity Health
Arena to manage concessions and believe that we have made improvements
both financially and professionally. Below you will find an overview of our careers
and the qualifications specifically relating to hospitality and concession
management.
1.2 Group Qualifications - As a group; we have the experience, knowledge and
capability to successfully manage Trinity Health Concessions. Listed below are
the bullet points of what our group has successfully accomplished and/or are
continuing to do currently in our field.
o Restaurant management
o Restaurant concept design
o Restaurant function and layout
o Restaurant build out and restaurant redesign
o Experience developing and managing mixed venue restaurants
o Food and beverage menu trends and implementation
o Inventories, ordering and costing
o Implement and maintain budgets
o Hire, staff and manage front of house and back of house employees at a
large scale
o Product knowledge
o ServSafe Certified
o Cicerone Certified
o TIPs Certified
o Strong knowledge of servicing both indoor and outdoor spaces
simultaneously
o Strong knowledge of working with seasonality shifts throughout the year
o Strive for exceptional customer service and quality product
o Concessions management for Trinity Health Arena 2022-2023
o Important focus on building and being a part of the community
Andrew, Jennifer and James bring over 20 years each of hospitality / restaurant
experience to the table. We love what we do and are equally passionate about it as
well. We desire to be a continuing part of the community and feel that providing a quality
management team to the Local Arena with great food and service is our way to
contribute to the success of downtown.
HCK 2023-2024 RFP to Trinity Health Arena page 3
SECTION II – Proposed Vision and Program
2.0 Mission Statement: Continually striving to conduct business that aims to
enhance the lives of everyone involved in it.
2.1 Proposed Vision - To continue to improve the Arena concession in every way.
Implementing fun local third party vendors, creating new menu items and
introducing portable bars and stocked coolers in the suites are a few examples of
what we have done to enhance the experience in the Arena.. Having managed
last season's concessions we were able to track sales, labor and food costs. We
know that we can utilize this information to grow profits at the Arena each
season.
2.2 Day / Hours of Operation - We want to capture as many sales as we possibly
can. We will follow the complete Jacks, Risers and Ironmen schedule and follow
the set time frame for service set out by the Arena. We also will continue to open
for the Reeths Puffer Games or any other activities that the Arena deems
suitable for concessions to be open.
2.3 Please see the attached menu at the end of this proposal.
Services -
● portable bars available to the Party Decks
● fully stocked coolers in the Suites
● fun and local third party vendors
● assistance with specialty nights (example: Craft beer night)
2.4 Experience - We ran the 2022 - 2023 concessions season successfully. We
have also opened, owned and operated small and large scale restaurants for the
past 20 years.
2.5 Food Safety Procedures - We supply our team with opening and closing lists
for before and after each event. We have active managers that make sure these
lists are complete. We have a chef that is ServSafe Certified and is ensuring that
his team is handling food safely. At the end of the season we worked with the
Arena to compile a detailed list for closing down each bar / concession area
cleanly and correctly. We were able to work with vendors to get pick up (refunds)
on unused products. On Jun 2, 2023 The health Department conducted an
inspection of all food areas in the Arena. A member of our team walked the
inspector through the property and answered any questions that came up. We
passed this inspection with NO violations. If you would like to see any lists or a
copy of the inspection please contact us.
HCK 2023-2024 RFP to Trinity Health Arena page 4
2.6 Environmental Sustainability -
● We continue to do our part by recycling, use of non styrofoam containers
and work on water conservation as much as possible.
2.7 Ability to Staff Multiple Employees - We have a very large full time and
seasonal staff base that we have acquired over our years in the business.
Staffing was not a problem in the 2022-23 Arena season and we do not
anticipate it being an issue going forward. Management is always available and
willing to step in if need be to cover labor.
SECTION III – Compensation and References
3.0 Remuneration for the City - A flat rate of $70,000 paid by Trinity Health Arena
to HCK Management LLC. Payments will be dispersed in increments of $5833.33
to HCK each month for twelve months.
If sales and reports are on course and tracking to reflect projected numbers
agreed upon, the City of Muskegon and Trinity Health Arena will make an
additional payment of $10,000 to HCK Management. This payment should be
made by the end of the City’s fiscal year, ending June 2024.
In addition to the above, any revenue to the City of Muskegon / Trinity Health
Arena exceeding $90,000 will lead to an additional monetary bonus to HCK
Management.
In conclusion, we truly love being a part of downtown and a part of Trinity Health
Arena. Thank you for reviewing our proposal. We appreciate your consideration
for Concessions at Trinity Health Arena
Sincerely,
Andrew Harris
James Curtis
Jennifer Harris Keaney
HCK 2023-2024 RFP to Trinity Health Arena page 5
3.1 Business References
● Tom Schultz
Owner, Tyler Sales Company Inc.
231.670.6394
● Shane Bybee
Gordon Food Service / Muskegon Sales Manager
616.566.8295
● Chad Doane
Co- founder and COO Pigeon Hill Brewing Co.
616.308.5675
3.2 Client References
● Andrea Rose
President of Business Operations Muskegon LumberJacks
231.730.3973
● Brad Hilleary
Owner Webb Chemical
231.343.2867
● Micheal and Julie Johnson
Owner Waterstone Insurance
231.578.4457
HCK 2023-2024 RFP to Trinity Health Arena page 6
MENUS - 2022-2023 pricing
HCK 2023-2024 RFP to Trinity Health Arena page 7
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date:June 27, 2023 Title:Rezoning of 1043
Washington Ave
Submitted By: Mike Franzak Department: Planning
Brief Summary:
Request to rezone the property at 1043 Washington Ave from R-2, Medium Density Single Family
Residential to Form Based Code, Neighborhood Edge, by FMA Rentals, LLC.
Detailed Summary & Background: The existing building has 5 residential units and a commercial
suite. The owner would like to convert the commercial suite to another residential unit. The FBC,
Neighborhood Edge designation would allow for all residential units or a commercial suite, so it
could be converted back to commercial again in the future as the market demands.
Goal/Focus Area/Action Item Addressed:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion:
To approve the request to rezone the property at 1043 Washington Ave from R-2 to Form Based
Code, Neighborhood Edge.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
PLANNING COMMISSION PACKET EXCERPT
June 15, 2023
Hearing, Case 2023-10: Request to rezone the property at 1043 Washington Ave from R-2 to FBC, NE,
by FMA Rentals, LLC.
SUMMARY
1. The property is zoned R-2, Single Family Medium Density Residential. However, it contains a
non-conforming, mixed-use building with five apartment units and one commercial unit.
2. The structure measures just under 5,000 sf and sits on a 9,812 sf lot.
3. The building is registered on the dangerous buildings list. The previous owner was not able to
make the necessary upgrades. The new owner was able to purchase the building and put money
into escrow to place the building under superintendent control in order to save it from demolition.
They are currently in the process of making the necessary upgrades.
4. The new owner would like to convert the commercial unit into another residential unit. A rezoning
to Form Based Code, Neighborhood Edge would make the existing building a legal, conforming
use and would also allow the conversion of the commercial unit into a residential unit. This
building could be considered either a “small multiplex” or “mixed-use” building as defined by the
form-based code.
5. Notice was sent to everyone within 300 feet of this property. At the time of this writing, staff had
not received any comments from the public.
1043 Washington Ave
Zoning Map
Aerial Map
Zoning ordinance excerpt (permitted building types in NE context area):
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO.
An ordinance to amend the zoning map of the City to provide for a zone change for 1043 Washington
Ave from R-2 to FBC-UR
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City of Muskegon is hereby amended to change the zoning for 1043 Washington Ave
from R-2 to FBC, NE.
CITY OF MUSKEGON REVISED PLAT OF 1903 N 110 FT OF LOTS 1 & 2 BLK 480
This ordinance adopted:
Ayes:
Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: __________________________
Ann Meisch, MMC
City Clerk
CERTIFICATE (Rezoning 1043 Washington Ave from R-2 to FBC, NE)
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 27th day of June, 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: ___________________, 2023 ________________________________
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 June 27, 2023, the City Commission of the City of Muskegon adopted an ordinance
amending the zoning map to provide for the change of zoning for 1043 Washington Ave from R-2 to FBC-UR:
CITY OF MUSKEGON REVISED PLAT OF 1903 N 110 FT OF LOTS 1 & 2 BLK 480
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 ____________________, 2023
By ___________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date:June 27, 2023 Title:Approval of contract for
Mediation & Restorative
Services
Submitted By: Mike Franzak Department: Planning
Brief Summary:
To approve the contract for Mediation & Restorative Services to provide education, outreach, and
prevention services to at risk youth.
Detailed Summary & Background:
At the April Work Session meeting, the Commission heard a proposal from Mediation &
Restorative Services to provide education, outreach, and prevention services to at risk youth. The
Commission decided to proceed with their services and asked staff to prepare a contract.
Services will include one-on-one accountability sessions, monthly group accountability panels,
educating neighborhood associations, monthly parent/child discussion groups, discuss youth
prevention efforts at local dispensaries, and coordination with the Muskegon Police Department
and the Coalition for a Drug Free Muskegon County.
Goal/Focus Area/Action Item Addressed:
Community Connection/Foster strong ties among government and community agencies/Increased
education and outreach
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion:
To approve the contract with Mediation & Restorative Services and authorize staff to sign.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 6-27-23 Title: MEDC RAP 1.0 Grant
Submitted By: Jake Eckholm Department: Dev Services
Brief Summary: Staff is requesting approval of the attached resolution and authorization to accept
and distribute a 2022 MEDC RAP 1.0 State Grant of $6,000,000, awarded on September 7, 2022,
to support two real estate rehabilitation projects – 880 First St LLC & Great Lakes Development
Investments, Inc. The city will enter into Subgrant Agreements to distribute $3,000,000 to 880 First
St, LLC and $3,000,000 to Great Lakes Development Investments, Inc. for projects costs incurred
as part of their respective redevelopment projects.
Detailed Summary & Background: The city applied for and received a 2022 MEDC Revitalization
and Placemaking (RAP) 1.0 grant in the amount of $6M in the Fall 2022 to support the 880 First St,
LLC & Great Lakes Development Investments, Inc, real estate rehabilitation projects.
The Revitalization and Placemaking Program (“RAP 1.0 Program”) was an incentive program that
deployed state funding to address the COVID-19 impacts and community revitalization needs in
communities to invest in projects that enable population and tax revenue growth through
rehabilitation of vacant and blighted buildings and historic structures, rehabilitation and
development of vacant properties, and development of permanent place-based infrastructure
associated with social zones and traditional downtowns, outdoor dining, and place-based public
spaces.
The city will enter into Subgrant Agreements to distribute $3,000,000 to 880 First St, LLC and
$3,000,000 to Great Lakes Development Investments, Inc. as they are two projects key to meeting
the ongoing housing needs of our community.
Goal/Focus Area/Action Item Addressed: Goal 2: Econ Dev, Housing, and Business > Increasing
variety of housing types
Amount Requested: 6,000,000 Amount Budgeted: $0
Fund(s) or Account(s): TBD Fund(s) or Account(s): TBD
Recommended Motion: I move to approve the resolution of support and authorize the Clerk to sign.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
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City of Muskegon
RESOLUTION OF SUPPORT to
ACCEPT & DISTRIBUTE 2022 MEDC RAP 1.0 STATE GRANT FUNDS
WHEREAS, City of Muskegon applied for and received a 2022 MEDC RAP 1.0 State Grant in the amount
of $6,000,000 on September 7, 2022 to support two real estate rehabilitation projects, 880 First St LLC
and Great Lakes Development Investments, Inc and,
WHEREAS, the purpose of the MEDC Revitalization and Placemaking Program (RAP) is promoting health
and safety and addressing impacts of impacted business by investing in capital expenditure projects that
result in neighborhood features, such as occupied buildings and active public spaces that promote
health and safety through revitalization and repurposing of vacant, underutilized, blighted, or historic
buildings and investment in place-based infrastructure and,
WHEREAS, City of Muskegon will enter into Subgrant Agreements to distribute $3,000,000 to 880 First
St, LLC and $3,000,000 to Great Lakes Development Investments, Inc. and,
WHEREAS, the two real estate rehabilitation projects are key to meeting the ongoing housing needs of
our community and,
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners hereby authorizes the
acceptance and distribution of 2022 MEDC RAP 1.0 State Grant funds, and further resolves to make
available $3,000,000 to 880 First St, LLC and $3,000,000 to Great Lakes Development Investments, Inc
for project costs, during the 2022-2023 fiscal year.
Ayes:
Nayes:
Absent:
Motion Approved.
I HEREBY CERTIFY, that the foregoing is a Resolution duly make and passed by Twenty-Seventh Day of
June at their regular meeting held on Tuesday, June 27th, 2023, at 5:30 p.m. in the City of Muskegon
Commission Chambers (933 Terrace Street, 49440), with a quorum present
________________________________ Dated: ________________________
Ann Marie Meisch, City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 6-27-23 Title: MEDC RAP 2.0 Grant
Submitted By: Jake Eckholm Department: Dev Services
Brief Summary: Staff is requesting approval of the attached resolution for inclusion with our
MEDC Revitalization and Placemaking (RAP) 2.0 grant application due June 30th, 2023 and
commit to funding a local match obligation of $250,000 for Hackley Park electrical upgrade project
costs in future fiscal years, if the project is selected.
Detailed Summary & Background:
In September 2022, the city was awarded $6M in grant funding as part of “Round 1” of the MEDC
RAP 1.0 program. MEDC is continuing the program into 2023 as RAP 2.0. The program would
provide access to grant funds for gap financing of place-based infrastructure development, real
estate rehabilitation and development, and public space improvements.
https://www.michiganbusiness.org/rap/2/
This tool provides access to real estate and place-based infrastructure development gap financing
in the form of grants of up to $5M per project for real estate rehabilitation and development, grants
of up to $1M for public space place-based infrastructure per project, and grants of up to $20M to
local or regional partners who develop a subgrant program.
The city’s grant application seeks $3.25M to fund the following projects:
$1M in place-based infrastructure/public space funding to support the redevelopment and
revitalization of the historic Hackley Square at 349 W. Webster Ave as well as Hackley Park. At
this time, commitment of the $250,000 local match is an unbudgeted cost and would be accounted
for in a future reforecast. A review of savings within the Public Works budget will serve to identify
the funds.
$2M for the rehabilitation of the vacant Catholic Charities of West Michigan building at 1095 Third
St. The City Commission approved a purchase agreement for the building and surrounding
parking. As of March 2023, the city is under contract with a new developer, West Urban Properties,
to construct a new mixed-use development.
Goal/Focus Area/Action Item Addressed: Goal 1: Destination Community & Quality of Life > Action
Item 2022-1.4 Proceed with events and activities; Goal 2: Econ Dev, Housing, and Business >
Increasing variety of housing types
Amount Requested: $3,250,000 Amount Budgeted: $0
Fund(s) or Account(s): 101-901-801-923XXX Fund(s) or Account(s): 101-901-801-923XXX
Recommended Motion: I move to approve the resolution and authorize the Clerk to sign and
commit to funding a local match obligation for Hackley Park electrical upgrade project costs in
future fiscal years if the project is selected.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
DATE: ISSUED FOR:
1-20-2022 100% OWNER REVIEW
CITY OF MUSKEGON
DEPARTMENT OF PUBLIC WORKS
MUSKEGON, MICHIGAN
HACKLEY PARK
LIGHTING & ELECTRICAL SYSTEM UPGRADE SHEET INDEX
E0 COVER SHEET
E1 DEMOLITION SITE PLAN
E2 ELECTRICAL SITE PLAN
E3 ELECTRICAL DETAILS
E4 ELECTRICAL ONE-LINE DIAGRAM
LIGHTING & ELECTRICAL SYSTEM UPGRADE
AND DETAILS
E5 SOUND SYSTEM DETAIL
HACKLEY PARK
MUSKEGON, MICHIGAN
RENNER RD.
WEBER RD.
KERN RD.
BAYS RD.
E RD.
NORTH
LAK
AR MUSKEGON
BE
ME
MO
RIA
LD
R. NORTH MUSKEGON
SC
EN
IC
DR
MUSKEGON LAKE
.
MUSKEGON
PROJECT LOCATION
350 W. WEBSTER AVE., MUSKEGON, MI 49440
E
AV AVE
ERN AY E
T L
ES
C AV
W W R
W S TE
EB
LOCATION MAP
3R
W
www.geotech-inc.com
D
4900 Cascade Road, S.E., Grand Rapids, Michigan 49546
W
ST
4T
MUSKEGON COUNTY - MUSKEGON MICHIGAN
NORTH
H
ST
eotech, Inc.
Engineered Systems
GEOTECH
PROFESSIONAL PERSON IN
RESPONSIBLE CHARGE OF
THE PROJECT
G
SHEETS
1- 10
616.949.3340
NAME OF LICENSEE
GHASSAN G. GHAREEB
NUMBER
6201045744
PROJECT #: 689-001
SHEET TITLE:
ELECTRICAL
COVER
SHEET
SHEET #:
UTILITY LOCATIONS ARE DERIVED FROM ACTUAL
E0
MEASUREMENTS OR AVAILABLE RECORDS. THEY
SHOULD NOT BE INTERPRETED TO BE EXACT
LOCATIONS NOR SHOULD IT BE ASSUMED THAT
THEY ARE THE ONLY UTILITIES IN THIS AREA.
Know what's below
Call before you dig.
DATE: ISSUED FOR:
1-20-2022 100% OWNER REVIEW
H
RT
GENERAL DEMOLITION NOTES:
NO
CLAY AVENUE
KEYED ELECTRICAL DEMOLITION NOTES:
MH
LIGHTING & ELECTRICAL SYSTEM UPGRADE
4TH STREET
SYMBOL LEGEND
HACKLEY PARK
HANDHOLE
MUSKEGON, MICHIGAN
3RD STREET
LIGHT POLE
S1 POWER POLE
DUPLEX RECEPTACLE(S)
3rd Street
Stage ELECTRICAL SERVICE CABINET
S
M MH
S1
MH
www.geotech-inc.com
4900 Cascade Road, S.E., Grand Rapids, Michigan 49546
eotech, Inc.Engineered Systems
MH
G
616.949.3340
WEBSTER AVENUE
PROJECT #: 689-001
SHEET TITLE:
ELECTRICAL
DEMOLITION
ELECTRICAL DEMOLITION PLAN
SITE PLAN
UTILITY LOCATIONS ARE DERIVED FROM ACTUAL
1 SHEET #:
E1
MEASUREMENTS OR AVAILABLE RECORDS. THEY
SHOULD NOT BE INTERPRETED TO BE EXACT
LOCATIONS NOR SHOULD IT BE ASSUMED THAT
THEY ARE THE ONLY UTILITIES IN THIS AREA.
Know what's below
Call before you dig.
DATE: ISSUED FOR:
GENERAL CONSTRUCTION NOTES:
1-20-2022 100% OWNER REVIEW
H
RT
NO
CLAY AVENUE
KEYED CONSTRUCTION NOTES:
WF WF WF WF WF WF WF WF WF WF WF WF WF WF WF WF WF WF WF WF
C C C WF
C C C C C C C C C C C C C C
C C C C C C C C
C
C
C C C
C C C
C
C C C
C
C C
H
H
C
WF
C C
C
C
C
C
C
C
C
C
WF
C
C
C
C
C C
C
C
C
C
C
C
C
WF
C
C
C
C
C
C
C
C
C MH
C
C
C C
WF
C
C
C C C C
C C C
C C C C
C
C
C
C
LIGHTING & ELECTRICAL SYSTEM UPGRADE
C
C C C
WF
C C C
C
C
C
C C
4TH STREET
C C
C
C
C C
WF
C
C C
C
C
HACKLEY PARK
WF WF
C
C WF
3RD STREET
WF
C
MUSKEGON, MICHIGAN
C
WF
W
F
F
W C
C
W
F
C
C
C
C C
F
C
W
WF
C
WF C
3rd Street
WF
WF C Stage
WF C C
C
WF C
C
C
WF C
C
SYMBOL LEGEND
WF C
WF
M MH
HANDHOLE OUTDOOR GROUND BOX
C
WITH QUADPLEX
C
RECEPTACLE (20A)
WF
LIGHT POLE
POWER POLE POWER PEDESTAL
C
C
DUPLEX RECEPTACLE
C
C M POWER METER
WF
C PROPOSED ROUTE FOR
ELECTRICAL SERVICE CABINET C
C ELECTRICAL CONDUIT
C
C C
C
C
C
WF PROPOSED WI-FI CONDUIT
WF
C C
C
C
C
C
C
C C
C
C
C
WF
C C C
C
C
C
C
C
C C MH
C C C C C C
www.geotech-inc.com
4900 Cascade Road, S.E., Grand Rapids, Michigan 49546
C
WF
C
C
C
C
C
C
C
C
C C C
C
eotech, Inc.
H
C
Engineered Systems
C
C
C
C
C
WF
C
C
C
C
C C
C C
H
C
C
C
H
C
C
C
C
C
C
C
C
MH
CC
C
C
F
C
C
W
C C C C
G
C C C C C C C C C C C
WF WF WF WF WF WF WF WF C C C C C C C C C C
WF WF WF WF WF WF WF WF WF WF
C
C
616.949.3340
C
C
WEBSTER AVENUE
PROJECT #: 689-001
C
C
SHEET TITLE:
ELECTRICAL
SITE PLAN
ELECTRICAL SITE PLAN
1 SHEET #:
E2
UTILITY LOCATIONS ARE DERIVED FROM ACTUAL
MEASUREMENTS OR AVAILABLE RECORDS. THEY
SHOULD NOT BE INTERPRETED TO BE EXACT
LOCATIONS NOR SHOULD IT BE ASSUMED THAT
DETAIL 'A'
2
THEY ARE THE ONLY UTILITIES IN THIS AREA.
Know what's below
Call before you dig.
DATE: ISSUED FOR:
1-20-2022 100% OWNER REVIEW
LIGHTING & ELECTRICAL SYSTEM UPGRADE
HACKLEY PARK
MUSKEGON, MICHIGAN
LIGHT BOLLARD BASE DETAIL (SB) RAISED STANCHION MOUNTED FIXTURE DETAL (SC & SD) HANDHOLE DETAIL
1 2 3
www.geotech-inc.com
4900 Cascade Road, S.E., Grand Rapids, Michigan 49546
eotech, Inc.Engineered Systems
G
616.949.3340
POWER PEDESTAL DETAIL
4
PROJECT #: 689-001
SHEET TITLE:
ELECTRICAL
DETAILS
SHEET #:
E3
UTILITY LOCATIONS ARE DERIVED FROM ACTUAL
MEASUREMENTS OR AVAILABLE RECORDS. THEY
SHOULD NOT BE INTERPRETED TO BE EXACT
LOCATIONS NOR SHOULD IT BE ASSUMED THAT
THEY ARE THE ONLY UTILITIES IN THIS AREA.
Know what's below
Call before you dig.
DATE: ISSUED FOR:
1-20-2022 100% OWNER REVIEW
3"C
3"C
INSIDE PANEL LAYOUT SIDE VIEW REAR VIEW INSIDE PANEL LAYOUT
LIGHTING & ELECTRICAL SYSTEM UPGRADE
PNL-B CABINET DETAIL
MAIN SERVICE CABINET DETAIL 2
1
HACKLEY PARK
MUSKEGON, MICHIGAN
GENERAL ELECTRICAL NOTES:
KEYED ELECTRICAL NOTES:
M PNL-A
www.geotech-inc.com
4900 Cascade Road, S.E., Grand Rapids, Michigan 49546
eotech, Inc.Engineered Systems
G
616.949.3340
PNL-B
PROJECT #: 689-001
PNL-MDP SHEET TITLE:
ELECTRICAL
ONE-LINE DIAGRAM
AND DETAILS
ELECTRICAL ONE-LINE DIAGRAM
3
SHEET #:
E4
240V/120V, 1Ø, 3 WIRE ELECTRICAL SYSTEM GROUNDING DETAIL
4
DATE: ISSUED FOR:
1-20-2022 100% OWNER REVIEW
H
RT
NO
QUANTITY DESCRIPTION
S1
SOUND SYSTEM GENERAL NOTES:
AQUA SEAL WIRE
AQ226BK1000, 1"C.
(TYP.)
KEYED CONSTRUCTION NOTES:
S1
SOUND SYSTEM ONE-LINE DIAGRAM
2
LIGHTING & ELECTRICAL SYSTEM UPGRADE
HACKLEY PARK
MUSKEGON, MICHIGAN
S1
3rd Street
Stage
S
M MH
www.geotech-inc.com
4900 Cascade Road, S.E., Grand Rapids, Michigan 49546
S1
eotech, Inc.Engineered Systems
G
616.949.3340
PROJECT #: 689-001
SHEET TITLE:
SOUND SYSTEM DETAIL
SOUND
1
SYSTEM DETAIL
SHEET #:
E5
UTILITY LOCATIONS ARE DERIVED FROM ACTUAL
MEASUREMENTS OR AVAILABLE RECORDS. THEY
SHOULD NOT BE INTERPRETED TO BE EXACT
LOCATIONS NOR SHOULD IT BE ASSUMED THAT
THEY ARE THE ONLY UTILITIES IN THIS AREA.
Know what's below
Call before you dig.
Hackley Park Electrical Upgrades
Cost Estimate & Financing Breakdown
1/24/2022
SE Electric Fee
Description Total Cost City Share
Electrical Service $144,397 $57,758.80 $57,758.80
Monument Lighting $29,149 $29,149.00
Statues Lighting $15,488 $15,488.00
Bollards Lighting $242,720 $121,360.00 $121,360.00
Power Pedestals - RV's $58,154 $58,154.00
In-Ground Receptacles-120V $37,230 $18,615.00 $18,615.00
Sound System $38,480
Wi-Fi Conduits $28,860 $28,860.00
Demo $5,000 $2,500.00 $2,500.00
Permits $5,000 $2,500.00 $2,500.00
Contingency $90,672 $36,268.80 $36,268.80
Total Budget Estimate $695,150 $312,500 $297,157
Time Available to Recoup Costs (Years) 25
Estimated Annual Special Events w/Electric 10
Estimated Annual Special Events w/Sound 10
Event Fee to Recoup Electric (No Interest) $1,188.63
Event Fee to Recoup Sound (No Interest) $341.98
SE Sound
System Fee
$28,879.40 Split 40/40/20
Split 50/50/0
Split 50/50/0
$38,480.00
Split 50/50/0
Split 50/50/0
$18,134.40 Split 40/40/20
$85,494
City of Muskegon
RESOLUTION OF SUPPORT & COMMITMENT OF MATCHING FUNDS to
2023 MEDC RAP 2.0 STATE GRANT APPLICATION
WHEREAS, City of Muskegon supports the submission of an application to the 2023 MEDC Revitalization
and Placemaking program (RAP) and,
WHEREAS, the purpose of the MEDC Revitalization and Placemaking Program (RAP) is promoting health
and safety and addressing impacts of impacted business by investing in capital expenditure projects that
result in neighborhood features, such as occupied buildings and active public spaces that promote
health and safety through revitalization and repurposing of vacant, underutilized, blighted, or historic
buildings and investment in place-based infrastructure and,
WHEREAS, the City of Muskegon is seeking $3,250,000 in available MEDC RAP 2.0 grant funding,
including $1M in place-based infrastructure/public space funding to support the redevelopment and
revitalization of the historic Hackley Square at 349 W. Webster Ave as well as Hackley Park; and $2M for
the rehabilitation of the vacant Catholic Charities of West Michigan building at 1095 Third St and,
WHEREAS, private developers are expected to provide approximate matching funds of $7,250,000 for
the Hackley Square project and $5,000,000 for the former Catholic Charities project, respectively.
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners hereby authorizes the
submission of an MEDC RAP 2.0 application for $3,700,000 to be expended by the end of 2026, per the
federal American Rescue Plan Act of 2021, and further resolves to make available a local match
obligation of $250,000 for Hackley Park from the city’s General Fund.
Ayes:
Nayes:
Absent:
Motion Approved.
I HEREBY CERTIFY, that the foregoing is a Resolution duly make and passed by Twenty-Seventh Day of
June at their regular meeting held on Tuesday, June 27th, 2023, at 5:30 p.m. in the City of Muskegon
Commission Chambers (933 Terrace Street, 49440), with a quorum present
________________________________ Dated: ________________________
Ann Marie Meisch, City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: End of Year Budget Amendment
Submitted By: Kenneth D. Grant Department: Finance
Brief Summary: At this time staff is asking for approval of the End of Year Budget Amendment for
FY2022-23 budget year.
Detailed Summary & Background: Staff has prepared the End of Year Budget Amendment for the
22-23 budget year. A memo outlining some of changes and highlights is attached
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the End of Year Budget Amendment as presented.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
Memo
To: City Commissioners
From: Finance Director
Date: 6/21/2023
Re: FY2022-23 4th Quarter Budget Reforecast
Highlights of 4th Quarter Budget Reforecast:
101 General Fund
Revenues:
101-000-438 Income Tax collections have been better than projected for the 4th Quarter. We can
increase revenue from $10,750,000 to 11,000,000
101-000-482 Electric Permits revenue should go up to $210,000 from $195,000
101-000-483 Plumbing Permits revenue should be changed to $112,000 from $105,000
101-000-484 Heating Permits revenue should be changed to $157,000 from $146,000
101-000-486 Rental Property revenue should be changed to $427,000 from $400,000
101-000-696-004963 Loan Proceeds revenue is recorded for the Fire Truck loan for $761,603
101-000-684-004800 Misc.& Sundry revenue should be changed to $142,000 from $100,000.
Expenditures Amendments
City Commission Dept 101- Increase expenditures by $12,000 due to MML expenditures
City Promotions & Public Relations Dept 103- Increase expenditures by $38,000 due expenses
created by the new Community Relations positions.
Finance Department Dept 202- Increase expenditures by $8,000 due to 8% payroll for nonunion
personnel
Income Tax Dept 205- Increase expenditures by $41,000 mainly due to postage increases, salary
increases and insurance payout for both Union and Non-Union.
Page 1
City Clerk Dept 215- Increase expenditures by$56,000 mainly due to postage increases, salary
increases and insurance payout for both Union and Non-Union.
City Treasurer Dept 253- Increase expenditures by $41,000 mainly due to postage increases,
salary increases and insurance payout for both Union and Non-Union.
City Assessor Dept 257 Increase expenditures by $12,000 due to some unexpected tax appeal
fees.
Insurance Services 272 – Increase expenditures by $195,000 due lawsuits and insurance claims.
MMRA requires a that members have a minimum self-insured retention amount.
Police Dept 301- Increase expenditures by $291,000 due to payroll and overtime.
Fire Dept 336 - Increase expenditures by $85,000 due to payroll and overtime.
Building Dept 387- Increase expenditures by $610,000 because most of the permit fees are up
significantly and Safebuilt gets a of the revenue generated from permits.
Central Fire Station 340 – Increase expenditures by $10,000 due utility costs.
Community Event Support Dept 446 - Increase expenditures by $10,000 to cover landscaping,
snow plowing, and miscellaneous fees. These costs should be offset by additional revenues.
Planning Dept 701-Increase expenditures by $105,000 off the expense for the Marihuana Social
Equity and Education programs, to cover the city’s participation in the countywide broadband
study, additional site prep for the infill housing, and other miscellaneous items.
Forestry Dept 771- Increase expenditures by 10,000 due contractual services costs and supplies.
Capital Projects 901- Increase expenditures by $761,603 for the purchase of the new fire truck.
These costs were previously approved by Commission and we required to add this asset to our
books.
Debt Service 906- Increase expenditures by $1,300 due Agent Fees and Interest adjustments.
Transfer 999- Additional $102,000 to the Arena
234 Pigeon Hill Brownfield
Revenues:
Tax collections need to be bumped up by $840
Expenditures Amendments
Expenditures need to match the increase in revenue by the same amount of $840
237 Terrace Point Brownfield
Revenues:
Property Tax values and Tax Capture exceed original projects by $97,000.00
Page 2
Expenditures Amendments
Expenditures need to match the increase in revenue by the same amount of 97,000
252 Farmers Market
Revenues:
Increase revenues by $43,000 this includes reimbursement from the DDA
Expenditures Amendments
Increase expenditures by $60,000 ($30,000 for contractual and misc. services and $30,000 for an
ice maker and cameras.
This year the Farmer’s Market did require any funds from the General Fund.
254 Arena
Expenditures Amendments
Increase expenditures by $102,00 due to payroll increases and contractual services.
445 Public Improvement
Expenditures Amendments
Increase expenditures by $100,000 to cover unexpected project costs on capital projects.
482 STATE GRANTS
Expenditures Amendments
Increase expenditures by $4,750,000 for ARPA Expenditures.
643 ENGINEERING SERVICES
Expenditures Amendments
Increase expenditures by $25,000 due to salary rate increases.
Page 3
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Real Estate Purchase
Agreement for The Splash
Pad- Downtown Muskegon
Development Center No. 2,
Association and The City of
Muskegon
Submitted By: Contessa Alexander Department: Economic
Development
Brief Summary:
A Real Estate Purchase Agreement has been submitted between The Downtown Muskegon
Development Center No. 2, Association (the “Seller”) and The City of Muskegon (the “Buyer”) for
the purchase of Unit 10 (the “Property”) referred to as the Western Avenue Splash Pad.
Detailed Summary & Background:
A survey plan was created by Gower Professional Surveying, P.C. that is included in the agenda
packet. This survey conveys the Downtown Muskegon Development Center No. 2 boundaries, the
Muskegon County condominium plan No. 162. This area encompasses ten units between Terrace,
Morris, First, and Clay. The Property is commonly known as the Western Avenue Splash Pad and
is 8066 sq. ft.
This purchase agreement was created in order for Unit 10 to be eliminated from the Downtown
Muskegon Development Center No. 2 boundaries, and to be purchased by the City of Muskegon.
As described in the Purchased Agreement:
The Seller shall convey the Property to the Buyer free and clear of all liens and
encumbrances. Seller is also responsible for all real estate taxes and assessments that
have been billed prior to the effective date.
Moving forward the Buyer will be held accountable for all responsibilities, including repairs
and maintenance after effective date.
All fixtures and equipment are included at no additional costs.
Both parties agree that the property is to be sold as is.
If either party does not perform the terms and conditions of this agreement within 10 days
following receipt of written notice from either Seller or Buyer, the Seller or Buyer can elect
to terminate this Agreement by written notice and neither party shall have further
obligations under this Agreement.
Closing costs to be paid by Seller include the following: recording the deed, the premium
for the owner’s policy of title insurance, any inspection fees, closing fees charged by the
Title Company, all other costs and fees, including attorney fees, it incurred in connection
with this transaction including, the preparation of this Agreement, and any related closing
documents.
All parties shall deliver the Warranty Deed and all other documents that are required by this
Agreement.
Goal/Focus Area/Action Item Addressed: Retain youth within the city.
Amount Requested: $1,188.75 Amount Budgeted: N/A
Fund(s) or Account(s): Planning Fund(s) or Account(s): N/A
Recommended Motion: To approve the Real Estate Purchase Agreement made between
Downtown Muskegon Development Center No. 2, Association and The City of Muskegon for the
purchase of Unit 10 (the “Property”) referred to as the Western Avenue Splash Pad authorizing the
Deputy City Manager to sign.
Approvals: Guest(s) Invited / Presenting
Immediate Division Head Information Technology
Yes
Other Division Heads Communication
Legal Review No
For City Clerk Use Only:
Commission Action:
REAL ESTATE PURCHASE AGREEMENT
This Purchase Agreement is made by and between Downtown Muskegon Development
Center No. 2, Association., a Michigan nonprofit corporation, of 601 Terrace Street, Muskegon,
Michigan 49440 (“Seller”), and The City of Muskegon, a Michigan municipal corporation, of 933
Terrace Street, Muskegon, Michigan 49440 (“Buyer”). The parties agree as follows:
1. Sale of Property. Seller agrees to sell, and Buyer agrees to purchase, the real
estate located in the City of Muskegon, County of Muskegon, State of Michigan, and legally
described on the attached Exhibit A, together with all improvements, fixtures, and appurtenances
associated with that real estate, but subject to all easements, matters, and building and use
restrictions apparent or of record, zoning ordinances, and the Permitted Exceptions (the “Property”).
2. Consideration. In consideration of Buyer assuming responsibility all repairs and
maintenance of the Property, Seller shall convey the Property to the Buyer free and clear of all liens
and encumbrances, except for those liens and encumbrances that are specifically assumed by the
Buyer.
3. Title Insurance. At Buyer’s expense, Buyer will obtain at Closing an owner’s policy
of title insurance for the Premises for the minimum amount of value permitted by the title company,
subject to standard exceptions. Within 30 days following the Effective Date, Buyer will order a
commitment for an owner’s policy of title insurance from Transnation Title Agency, of 570 Seminole
Road, Muskegon, Michigan 49444 (the “Title Company”). If the title commitment discloses any
exception, restriction, easement, or other matter that is objectionable to Buyer in Buyer’s sole
discretion, Buyer may raise a title objection by delivering notice of the objection to Seller in writing
within 10 days after receipt of the title commitment. If Buyer does not notify Seller of any issues with
title within such 10-day period, Buyer will be deemed to accept, and waive any objections to, any
matters, encumbrances, restrictions, or exceptions set forth in the title commitment. If Buyer raises
a title objection, Seller will notify Buyer within 10 days of receipt of Buyer’s objection as to whether
Seller will elect to cure the objection(s). If Seller elects to cure the objection(s), Seller shall take
action to remove the exception or the encumbrance from the chain of title, in order to remove it from
the commitment and the policy. If Seller does not elect to cure the objection(s), Buyer will have 5
days within which to elect either of the following as Buyer’s sole remedy: (i) proceed with the
purchase and acquire the Premises subject to the defects or objections to title and the Permitted
Exceptions (as defined below), or (ii) terminate this Agreement by written notice to Seller within such
5-day period, in which case neither party shall have any further obligations under this Agreement
except as provided herein. The term “Permitted Exceptions” means any matters, encumbrances,
encroachments, and exceptions revealed on the title commitment, matters apparent or of record, or
defects, encroachments, or variations revealed by the title commitment that Buyer (x) initially
accepts in Buyer’s discretion, (y) does not identify or object to as a defect, or (z) initially raises as a
defect or objection but later accepts by proceeding to Closing.
4. Condominium Subdivision Plan. Prior to Closing, the Seller shall cause the
current Condominium Subdivision Plan to be modified to eliminate the existing general common area
and replace it with new Unit 10. Upon completion of the Revised Condominium Subdivision Plan, the
Seller shall execute and record with the Muskegon County Register of Deeds, the First Amendment
to the Master Deed according to which the Revised Condominium Subdivision Plan will replace the
current plan. The proposed revised site plan is attached as Exhibit B.
5. Property Taxes and Assessments; Utilities. Seller shall be responsible for any
real estate taxes and assessments that have been billed prior to the Effective Date. Buyer shall be
responsible for all taxes and assessments, real estate, ad valorem, person, or otherwise, that
become due and payable after the Effective Date.
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6. Fixtures and Equipment. All fixtures and equipment located in the Property as of
the date of Closing are included in this sale at no additional cost to Buyer. All such fixtures and
equipment included in the sale are being sold “AS-IS”.
7. Inspections by Buyer.
a. General Inspections. Buyer acknowledges and agrees that Buyer has had
the opportunity to conduct all inspections, investigations, and due diligence with regard to the
Property and any improvements thereon prior to its execution of this Agreement, including,
without limitation, inspections of the soil and groundwater; all structures; and electrical
systems at the Property and inspections and due diligence related to the environmental
condition of the Property. Buyer is satisfied with the results of its inspections, investigations,
and due diligence, and Buyer waives Buyer’s right and opportunity to any further inspections
of the Property.
b. Intentionally Omitted.
c. Condition of Property. Seller and Buyer acknowledge and agree the
Property and any improvements thereon are being sold and delivered “As Is” and “Where Is”
in its present condition. Except as specifically set forth in this Agreement, Seller has not
made, does not make, and specifically disclaims any and all representations, warranties, or
covenants of any kind or character whatsoever, whether implied or express, oral or written,
as to or with respect to (i) the value, nature, quality, or condition of the Property and any
systems or improvements thereon, including without limitation, soil conditions, any
environmental or soil conditions, condition of drinking water, condition of water, sewer, and
other utility connections, or the condition or existence of any well and septic systems on the
Property; (ii) the suitability of the Property and any systems or improvements thereon for any
of Buyer’s uses; (iii) the compliance of or by the Property and any systems or improvements
thereon with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or
fitness for a particular purpose of the Property; (v) existence in, on, under, or over the
Property of any hazardous substances, or (vi) any other matter with respect to the Property
and any systems, fixtures, or improvements thereon.
d. Future Repairs and Maintenance. Buyer shall be solely responsible for all
future repairs and maintenance for the Property, including the Splash Pad.
8. Possession. Possession of the Property will be delivered to Buyer on the Closing
Date.
9. Risk of Loss and Condemnation. Seller shall bear the risk of loss from casualty,
condemnation, or other cause until Closing.
10. Default. If Buyer for any reason does not perform the terms and conditions of this
Agreement and does not cure such default within 10 days following receipt of written notice of the
same from Seller, then Seller may elect to terminate this Agreement by written notice to Buyer and
neither party shall have any further obligations under this Agreement. If Seller for any reason does
not perform the terms and conditions of this Agreement and does not cure such default within 10
days following receipt of written notice from Buyer, then Buyer may terminate this Agreement and
neither party shall have any further obligations under this Agreement.
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11. Real Estate Commission. Seller and Buyer represent and warrant to each other
that neither party has dealt with any brokers or finders in connection with the transaction
contemplated by this Agreement. Each party shall, defend, and hold harmless the other party from
and against any claim, loss, damage, liability, cost and expense (including without limitation
reasonable attorney fees and expenses) resulting from any breach or alleged breach of its
representations contained in this Paragraph. The obligations set forth in this Section shall survive
any termination of this Agreement.
12. Closing. The closing of the transaction contemplated by this Agreement (the
“Closing”) shall take place at a location mutually agreeable to the parties, within 10 days following
Buyer delivering notice to Seller that it is ready to close, but in no event later than June 30, 2023 (the
“Closing Date”). The Closing Date may be extended upon the agreement of both parties.
13. Closing Costs. The following costs associated with this Agreement and the Closing
shall be paid by Seller at Closing as follows: recording the deed; (ii) the premium for the owner’s
policy of title insurance; (iii) any inspection fees; (v) closing fees charged by the Title Company; (vi)
all other costs and fees, including attorney fees, it incurred in connection with this transaction
including, the preparation of this Agreement, and any related closing documents.
14. Closing Deliveries. At Closing, (i) the parties shall execute and deliver the
Warranty Deed; (ii) Buyer shall execute and deliver any other documents required by this Agreement
or reasonably requested by Seller or the Title Company to carry out the intentions of this Agreement;
and (iii) Seller shall deliver any other documents required by this Agreement or reasonably
requested by Buyer or the Title Company to carry out the intentions of this Agreement.
Notice. All notices, approvals, consents and other communications required under this Agreement
shall be in writing and shall be delivered in one of the following manners: (a) personal delivery; (b)
sent by fax or email; (c) when sent by a nationally-recognized receipted overnight delivery service
with delivery fees prepaid; or (d) sent by United States first-class, registered, or certified mail,
postage prepaid. The notice shall be effective immediately upon personal delivery or upon
transmission of the fax or email; one day after depositing with a nationally recognized overnight
delivery service; and, 3 days after sending by first class, registered, or certified mail. Notices shall be
sent to the parties as follows:
To Seller: Downtown Muskegon Development Company No. 2 Association
Attn: Contessa Alexander
990 Terrace Street
Muskegon, MI 49440
Email: [email protected]
To Buyer: The City of Muskegon
990 Terrace Street
Muskegon, MI 49442
Attn: LeighAnn Mikesell
Email: [email protected]
Copies of Notices for either party shall be delivered to:
w/ copy to : Parmenter Law
Attn: Christopher L. Kelly
601 Terrace St., Suite 200
Muskegon, MI 49440
Email: [email protected]
3
15. Preparation by Intermediary. Seller and Buyer each acknowledge and agree that
this Agreement and all documents to be executed in connection with the closing of the transaction
were prepared by Parmenter Law as an intermediary between Seller and Buyer only; that Parmenter
Law has represented, and continues to represent, both Seller and Buyer with regard to personal and
business matters; that Parmenter Law has fully disclosed and discussed the prior representations
and the conflict with both parties; that conflicts may exist or arise between the individual interests of
Seller and Buyer and that legal counsel is prohibited from representing parties where a legal conflict
exists; that Seller and Buyer have each been advised to seek (and have had an adequate
opportunity to seek) advice from independent legal counsel with respect to their respective rights,
this transaction, and the execution of this Agreement and documents referenced herein; and that
both Seller and Buyer hereby waive the conflict and affirmatively consent to the intermediary
representation of both parties by Parmenter Law.
16. General Provisions.
a. Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of the state of Michigan. The parties agree that for purposes of
any dispute in connection with this Agreement, the Oceana County Circuit Court shall have
exclusive personal and subject matter jurisdiction and that Oceana County is the exclusive
venue.
b. Entire Agreement. This Agreement constitutes the entire agreement of the
parties and supersedes any other agreements, written or oral, that may have been made by
and between the parties with respect to the subject matter of this Agreement. All
contemporaneous or prior negotiations and representations have been merged into this
Agreement.
c. Amendment. This Agreement shall not be modified or amended except in a
subsequent writing signed by all parties.
d. Binding Effect. This Agreement shall be binding upon and enforceable by
the parties and their respective legal representatives, permitted successors, and assigns.
e. Counterparts; Fax or Electronic Signatures. This Agreement may be
executed in counterparts, and each set of duly delivered identical counterparts which
includes all signatories, shall be deemed to be one original document. Electronic or fax
copies of the signed Agreement shall constitute a valid, enforceable agreement.
f. Full Execution. This Agreement requires the signature of all parties. Until
fully executed, on a single copy or in counterparts, this Agreement is of no binding force or
effect and if not fully executed, this Agreement is void. This Agreement shall become
effective on the date when signed by all of the parties as shown below (“Effective Date”).
g. Non-Waiver. No waiver by any party of any provision of this Agreement
shall constitute a waiver by such party of any other provision of this Agreement.
h. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions of this Agreement shall not in any way be impaired
or affected.
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i. No Reliance. Each party acknowledges that it has had full opportunity to
consult with legal and financial advisors as it has been deemed necessary or advisable in
connection with its decision to knowingly enter into this Agreement. Neither party has
executed this Agreement in reliance on any representations, warranties, or statements made
by the other party other than those expressly set forth in this Agreement.
j. Assignment or Delegation. Except as otherwise specifically set forth in this
Agreement, neither party shall assign all or any portion of its rights and obligations contained
in this Agreement without the express or prior written approval of the other party, in which
approval may be withheld in the other party's sole discretion.
Seller – Buyer –
Downtown Muskegon Development The City of Muskegon
Center No. 2 Association
____________________________________ _____________________________________
Name: Contessa Alexander Name: LeighAnn Mikesell
Title: President Title: Deputy City Manager
Date: ____________________ Date: _____________________
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Exhibit A
Legal Description
The following described premises are situated in the City of Muskegon, County of Muskegon, State
of Michigan:
That part of Replat No. 1, Downtown Muskegon Development Center No. 2, recorded as Muskegon
County condominium plan No. 162, City of Muskegon, Muskegon County, Michigan, described as:
Beginning at the intersection of the North right of way line of Western Avenue, a 100 foot wide public
roadway and the Easterly right of way line of First Street, a 66 foot wide public roadway, said point
also being South 51º46’18” West, 146.08 feet and South 51º,46’17” West, 167.15 feet from the most
Easterly corner of Unit 9 of said Replat; thence N 51º, 46’, 17” East 167.15 feet along said North
right of way line; thence North 38º, 13’, 21” West, 46.92 feet; thence North 83º, 22’, 58” West, 2.23
feet to the Southerly right of way line of Market Street; thence South 51º, 37’, 02” West, 165.50 feet
along said Southerly right of way line to said Easterly right of way line of First Street; thence South
38º, 08’, 23” East, 48.05 feet along said Easterly right of way line to the Point of Beginning,
containing 0.185 acres of land.
To be conveyed as:
Unit 10 of Downtown Muskegon Development Center No. 2, a Site Condominium, according
to the Master Deed recorded June 9, 2006 in Liber 3703, Page 106, as amended in Liber
_____, Page _____ in the office of Muskegon County Register of Deeds, and designated as
Muskegon County Condominium Subdivision Plan No. 162, as amended.
Commonly known as: Western Avenue Splash Pad
EXHIBIT B
Proposed Revised Site Plan
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Transfer of Obsolete
Property Rehabilitation
Exemption Certificate # 3-16-
0027 from P&G Holdings NY,
LLC to the new owners,
Shaw QOZB 2, LLC
Submitted By: Contessa Alexander Department: Economic
Development
Brief Summary:
Shaw QOZB 2, LLC has requested an Obsolete Property Rehabilitation Exemption Certificate
transfer for the property 920 Washington Avenue.
Detailed Summary & Background:
On July 12, 2016, the City Commission approved an Obsolete Property Certificate to P&G
Holdings NY, LLC for 920 Washington Ave. State issued this certificate on 12/13/2016.
Shaw QOZB 2, LLC has purchased the property for redevelopment that will result in adaptive
reuse of nearly 630,000 square feet of dilapidated former industrial space into a lively mixed-use
development. The project is projected to result in over $120 million in tax capture over 20 years
between property taxes and new income taxes.
The previous owner (P&G Holdings NY, LLC) had an OPRA parcel on the property and needs to
be transferred over to the new owner.
Goal/Focus Area/Action Item Addressed:
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: I move to approve the adoption of the following resolution approving the
transfer of the Obsolete Property Rehabilitation Exemption Certificate # 3-16-0027 from P&G
Holdings NY, LLC to Shaw QOZB 2, LLC authorizing the Mayor and City Clerk to sign the attached
resolution.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON MUSKEGON
COUNTY, MICHIGAN RESOLUTION
NO.
A resolution transferring and Obsolete Property Rehabilitation Exemption Certificate
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
1. On July 12, 2016, the City Commission approved an Obsolete Property Rehabilitation Exemption
Certificate application as filed by P&G Holdings NYC LLC; and
2. The approval of Obsolete Property Rehabilitation Certificate #3-16-0027 was given by the State Tax
Commission on December 13, 2016, for the project at 920 Washington; and
3. The Property has been sold to Shaw QOZB 2 LLC; and
4. The previous owner had an OPRA parcel on the property that needs to be transferred to the new owner;
therefore
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
1. That the transfer of Obsolete Property Rehabilitation Exemption Certificate #3-16-0027 from P&G
Holdings NYC LLC to Shaw Walker QOZB 2 LLC is approved; and
2. That the Economic Development Department shall provide notice of the assignment to the State Tax
Commission.
This resolution passed.
Ayes
Nays
CITY OF MUSKEGON
By
Ken Johnson
Mayor
Attest ___________________________
Ann Meisch Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission, held on June 27, 2023.
The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act
146 of the Public Acts of 2000.
CITY OF MUSKEGON
By
Ann Meisch
Clerk
PLANNING DEPARTMENT
CITY OF MUSKEGON
receipt 12006463
933 TERRACE STREET
MUSKEGON, MI 49440
05/23/23
Cashier: WENDY.WEBSTER
Received Of: SHAW QOZB
SHAW QOZB1
TAX ABATEMENT
The sum of: 1,000.00
18 TAX ABATEMENT APP FEES 1,000.00
Total 1,000.00
TENDERED: CHECK 000523 1,000.00
Signed:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 13, 2023 Title: Contract Award – City Hall Boiler Replacement
Submitted By: Dan VanderHeide Department: Public Works
Brief Summary: Staff is requesting authorization to enter into a contact with Hurst Mechanical, in
the amount of $534,964 for the replacement of the boiler(s) and related equipment at City Hall.
Detailed Summary: Bids were solicited for the replacement of the boiler at City Hall after a design
was completed by Rhodes Engineering. Hurst Mechanical was the only bid received, however the
bid is in line with the engineer’s estimate and Hurst has performed quality work for the City in the
past. Furthermore, the tight timeframe to complete the project before cold weather returns has led
staff to recommend award to Hurst on the basis of timing, quality and a reasonable price.
Hurst’s bid is attached. They recommend adding $17,500 in asbestos abatement costs, which staff
agrees with, and staff has also requested a performance bond for an additional $5,000 cost to ensure
the work is done properly and timely.
This work is budgeted in FY24 (up for adoption this evening), but again due to the tight timeframe
before cold weather staff requests approval tonight to avoid losing the two weeks until the 7/10
meeting.
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure.
Amount Requested: $534,964 Amount Budgeted: $600,000 (FY24 Budget)
Fund(s) or Account(s): 101-265 (City Hall Maint.) Fund(s) or Account(s): 101-265 (FY24 Budget)
Recommended Motion:
I move to authorize staff to enter into a contact with Hurst Mechanical. in the amount of $534,964 for the
replacement of the boiler(s) and related equipment at City Hall.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
,
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Water & Sewer Systems Debt Service Fee
Submitted By: Dan VanderHeide Department: DPW
Brief Summary:
Staff requests authorization to institute a debt service fee for both the water and sewer systems, to
appear monthly on each water bill to cover the debt payments by each system in the prior fiscal year.
Detailed Summary & Background:
On March 13, 2023 staff presented a synopsis of the water system finances including that the water
system is expected to be in debt to other City funds by about $2,000,000 at the close of the 22-23
fiscal year. This is due to increasing costs of treatment and capital-intensive repairs to the system.
Staff presented different funding options, with consensus settling on a “debt service fee.” This
would institute a fee on each water bill, the total of which would reimburse the system for the
amount of debt paid in the prior fiscal year (for example, the fee proposed at this time will
reimburse the system for the debt paid in the fiscal year ending June 30, 2022). Each year, staff
will make an accounting of the amount of debt paid be each of the systems and will present
adjustments to the fee for consideration by the Commission. This will more directly tie the projects
the City performs to the amount of the water bill, and will allow the fee to be reduced as certain
bonds or other debts fall off of the system books.
The fee will be distributed on a meter equivalency basis, meaning a typical residential account will
pay the fee at a rate of “one,” while commercial and industrial accounts will pay the fee at a
potentially higher rate depending on the size of their water meter. Irrigation accounts will not pay
the fee, assuming they are tied to a domestic water account at the same address. Attached is a
breakdown of the meter equivalency calculations using factors from the American Water Works
Association (AWWA).
The water system paid $1,206,318.45 in debt payments for the fiscal year ending June 30, 2022,
and the sewer system paid $473,493.59 for the same period. Using the attached chart, we
anticipate the fee will be $6.09 per month for a residential account on the water system, and $2.39
per month for a residential account on the sewer system.
City Code states that the City Commission sets the water and sewer rates by resolution. The
attached resolution will institute the fee and establish it at the rates described herein. The fee will
need to be established by a similar resolution each year around this time to adjust the fee for the
actual amount of debt incurred each year as described above.
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): 590 & 591 (Water & Sewer) Fund(s) or Account(s): 590 & 591 (Water & Sewer)
Recommended Motion: I move approval of the included resolution establishing the Fiscal Year
2023-24 Debt Service Fees for the water and sewer system.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
AWWA Factor with Water Fee Sewer Fee Number of Water Debt Sewer Debt
Capacity 3/4" By Meter by Meter Metered Service Fee Service Fee
Meter Size (GPM) Equivalent Size Size Accounts Collected Collected
Unknown 1.00 $ 6.08 $ 2.39 229 $ 16,707.84 $ 6,567.72 Assumed 3/4" or less
5/8 inch 20 1.00 $ 6.08 $ 2.39 10,109 $ 737,552.64 $289,926.12 Tied to 3/4" for Calculation
3/4 inch 30 1.00 $ 6.08 $ 2.39 1,872 $ 136,581.12 $ 53,688.96
1 inch 50 1.67 $ 10.13 $ 3.98 289 $ 35,142.40 $ 13,814.20
1-1/2 inch 100 3.33 $ 20.27 $ 7.97 185 $ 44,992.00 $ 17,686.00 Includes 6 1-1/4" Meters
2 inch 160 5.33 $ 32.43 $ 12.75 217 $ 84,439.04 $ 33,192.32
3 inch 300 10.00 $ 60.80 $ 23.90 45 $ 32,832.00 $ 12,906.00
4 inch 500 16.67 $ 101.33 $ 39.83 47 $ 57,152.00 $ 22,466.00
6 inch 1,000 33.33 $ 202.67 $ 79.67 19 $ 46,208.00 $ 18,164.00
8 inch 1,600 53.33 $ 324.27 $ 127.47 1 $ 3,891.20 $ 1,529.60
10 inch 2,300 76.67 $ 466.13 $ 183.23 0 $ - $ -
12 inch 4,300 143.33 $ 871.47 $ 342.57 1 $ 10,457.60 $ 4,110.80 Includes all sizes above 12"
13,014 $1,205,955.84 $474,051.72
CITY OF MUSKEGON
RESOLUTION NO.
At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 27, 2023.
RECITALS
A review of the rates for sewer service has been accomplished by the city's staff, recommendations received, and
the City Commission has determined that the following rate changes are justified. Accordingly, this resolution is
made for the purpose of maintaining the financial viability of the city's sewer system.
THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:
1. Effective June 30, 2023, to rescind City of Muskegon Resolution No. 2020-53(F), which was adopted July 28,
2020.
2. Charges for residential sewer service shall remain unchanged at a multiplier 1.90 of the rate the county bills
the city for wastewater treatment effective July 1, 2020, with future rates to be adjusted as the county charges
are adjusted. The monthly sewer administration charge shall remain unchanged at $3.00.
3. Charges for commercial/industrial sewer service shall continue to be billed at a rate of 1.25 times (1.25x) the
city rate for residential sewer service. The monthly sewer administration charge shall remain unchanged to $3.00.
4. Charges for all non-metered residential sewer customers will be calculated based on an assumed usage rate
of 12 hundred cu. ft. per month.
5. Unless there is a separate agreement specifying a different billing method, non-resident users of the city sewer
system will be billed at a rate that is double (2x) the city rate for that class of user.
6. The monthly debt service fee is hereby established as $2.39 effective July 1, 2023, charged on a ¾-inch
residential meter equivalency basis as described by the American Water Works Association (AWWA).
The above changes to be effective as noted above.
This resolution adopted.
YEAS:
NAYS:
CITY OF MUSKEGON
By:
Ann Marie Meisch, MMC, City Clerk
STATE OF MICHIGAN COUNTY OF MUSKEGON
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 23rd day of June, 2020 and that the minutes of the
meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was
given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976.
CITY OF MUSKEGON
RESOLUTION NO.
At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 27, 2023.
RECITALS
A review of the rates for water service has been accomplished by the city's staff, recommendations received, and
the City Commission has determined that the following rate changes are justified. Accordingly, this resolution is
made for the purpose of maintaining the financial viability of the city's water system.
THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:
1. Effective June 30, 2023, to rescind City of Muskegon Resolution No. 2018-53(F), which was adopted June 26,
2018
2. Charges for residential water service shall remain unchanged at $2.06 per hundred cubic feet.
3. The lead service line replacement fee shall remain unchanged at $5.00 per month per account.
4. The monthly debt service fee is hereby established as $6.08 effective July 1, 2023, charged on a ¾-inch
residential meter equivalency basis as described by the American Water Works Association (AWWA).
The above changes to be effective as noted above.
This resolution adopted.
YEAS:
NAYS:
CITY OF MUSKEGON
By:
Ann Marie Meisch, MMC, City Clerk
STATE OF MICHIGAN COUNTY OF MUSKEGON
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 23rd day of June, 2020 and that the minutes of the
meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was
given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976.
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: DWRF Lead Water Line Engineering
Submitted By: Dan VanderHeide Department: DPW
Brief Summary: Staff requests approval to enter into a contract with Prein & Newhof, Inc. for
engineering services related to lead service line replacements under the DWRF program.
Detailed Summary & Background: At the meeting on October 25, 2022, Commission authorized
engineering services for several projects related to the FY23 DWRF & CWSRF program through
the state. That authorization included approval for work in the Glenside Neighborhood, for the
reconstruction of Wilcox, Thompson and Edgewater streets in the Bluffton neighborhood, for the
reconstruction of Morton Avenue from Lincoln to Denmark in Lakeside, for repairs to the Harbour
Towne and Edgewater lift stations also in Bluffton, and for the replacement of approximately 500
lead service lines in the City. The authorization included $1,319,600 in funds from the FY23, FY24
and FY25 budgets.
Prein & Newhof and DPW have recently discovered that while that item included the lead service
line work in the description of the cover sheet, it did not include an actual proposal for that work –
meaning the cost of the work was not included. Upon further review, a proposal by Prein &
Newhof was found from January of this year in the amount of $296,400. Only the design portion of
the proposal ($38,000) is funded by City funds-on-hand; the much larger construction engineering
portion goes into the bond and qualifies for the principal forgiveness and other program benefits.
This work is critical to both our lead service line replacement efforts (required by state regulations
and in the best interests of our residents and water system regardless), as well as to the DWRF
program we have benefitted from lately. In fact, two weeks from now DPW staff will return with the
final details of this program. Current information from EGLE indicates we expect to receive 75%
forgiveness on the drinking water portion of the loan this year, potentially worth over $6,900,000 in
grant and aid.
This year is the final year of three-year program whereby Prein & Newhof was selected as one of
two firms to perform the City’s state revolving fund work. Based on that process, Commission’s
prior support of this engineering work being awarded to Prein & Newhof, and the critical nature of
this work that will lead, in part, to a substantial award of grant and aid from the state, staff requests
this additional cost be awarded to Prein & Newhof.
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure.
Amount Requested: $296,000 (Total) Amount Budgeted: $150,000 is budgeted in
$ 38,000 (Design/Cash) FY24 for all DWRF and CWSRF engineering
fees. Only the $38,000 design portion counts
$258,400 (Construction/Bond) again this; the remainder will be bonded.
Fund(s) or Account(s): 591 (Water Fund) Fund(s) or Account(s): 591 (Water Fund)
Recommended Motion: Authorize staff to modify the existing professional services agreement with
Prein & Newhof for additional services related to the FY23 DWRF lead service line replacements.
Approvals: Legal Review Guest(s) Invited / Presenting
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
For City Clerk Use Only:
Commission Action:
January 18, 2023
Mr. Dan VanderHeide, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442
Re: Proposal for Professional Engineering Services for Drinking Water Revolving Fund (DWRF)
2023 Implementation for Lead Service Line Replacements
Dear Mr. VanderHeide:
We are submitting this proposal to provide professional engineering services to assist you with the
FY 2023 Lead Service Line replacement project. This project will be funded through the DWRF loan
and grant you will be receiving through the Michigan Department of Environmental, Great Lakes,
and Energy (EGLE). It is our understanding that City is intending to contract out approximately 400
water service replacements and that you would like engineering design, bidding and construction
phase services for this work.
We have developed the following scope of services assuming that the construction will be completed
over a three-year period to provide optimal contractor availability, flexibility and the best pricing
opportunities. We propose the following scope of services:
Design Phase
• Develop priority list for lead service line replacements in conjunction with City staff
• Prepare maps showing replacement areas
• Review locations in the field with City staff, if needed
• Prepare/update project technical specifications including specific DWRF requirements
• Prepare bidding and contract documents needed to meet City of Muskegon and
EGLE/DWRF requirements
• Complete environmental and SHPO review as required by EGLE
• Review draft documents with EGLE staff and prepare final documents based on comments
• Assist City with communication with residents
• Assist City with Part I, II and III DWRF Application forms
Bidding Assistance
• Assist with advertising project to potential bidders
• Answer questions during bidding and issue addenda if needed
• Attend pre-bid meeting and prepare minutes
• Review and tabulate bids
• Review contractor references, if needed
• Prepare Notice of Award documentation to City and EGLE for project award
4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com
R:\PRP - Proposal Preparation\City of Muskegon\2022-09-Lead Service Lines FY23 DWRF\prp 2023-01-18 LSL replacement.doc
Mr. Dan VanderHeide, P.E.
January 18, 2023
Page 2
• Assist with finalizing and distributing signed contracts
• Prepare Notice to Proceed
Construction Phase
• Schedule and attend preconstruction meeting and prepare minutes
• Track and review submittals
• Assist with resident communications
• Provide construction observation services – We have assumed up to 300 hours of field
observation per year, 15 hours per week over 20 weeks per year.
• Schedule and attend periodic progress meetings (up to 3 per year) and prepare minutes for
each
• Project administration - Respond to RFIs, prepare payment applications and change orders –
assumes 5 hours per week during the construction period noted above
• Assist with DWRF administration submittals
• Prepare punch lists and close out documents
• Complete service record drawings and update GIS following completion – includes city
completed replacements
Fee
Based on the scope of work described above, we propose to complete the work for a not to exceed cost of
$296,400 based on the assumptions and scope described above. Our hourly rates are adjusted each
January. We propose to work on a time and expense basis. If the contractor does work in a shorter time
than assumed, then our assumed hours will be less. Once the construction contracts are awarded and a
construction schedule is provided, we will review the hours allocated for the construction phase services
with you to determine whether adjustments need to be made.
If this proposal is acceptable to you, we will prepare a Professional Services Agreement for you.
We look forward to working with you and your staff on this project. Should you have any questions,
please contact us.
Sincerely,
Prein&Newhof
Barbara E. Marczak, P.E. Jason M. Washler, P.E.
Enclosures: Estimated work effort/fee
R:\PRP - Proposal Preparation\City of Muskegon\2022-09-Lead Service Lines FY23 DWRF\prp 2023-01-18 LSL replacement.doc
Professional Hours Worksheet
City of Muskegon DWRF - FY 23 Lead Service
Line Replacements
Sen. PM II PM Sen Eng II Sen Eng CADD/GIS Observer Office Tech Expense
Staff Member Mileage Total Cost
Marczak MH Staff Staff Staff TBD Van Kuik Item Cost
Design
Kick-off Meeting 3 3 3 20 $1,500
Environmental Review 10 10 Rare Species and SHPO
$3,000 $6,200
Water Service Research 5 20 10 $5,200
Lead Service Line Priority List 2 2 20 10 $5,100
Lead Service Specifications 4 15 $3,100
Review Meeting (1) 2 2 4 20 $1,300
Bidding Documents 5 10 10 Prints $500 $4,400
Cost Estimates 1 5 $1,000
QA/QC 2 2 $700
Part I, II, and III DWRF Applications 20 2 $4,000
Design Subtotals 39 56 47 20 20 0 0 $3,500 40 $32,500
Bid Phase
Advertise and Issue Bid Package 2 1 $400
Prebid Meeting/Minutes/Bidder Questions 2 2 5 $1,400
Addenda 1 4 1 $800
Attend Bid Opening 2 2 20 $700
Review Bids/Recommend Award 2 2 4 2 $1,400
Notice to Proceed / Contract Documents 2 2 Prints $300 $800
Bid Phase Subtotals 6 9 15 0 0 0 6 $300 20 $5,500
Construction Engineering Services
Preconstruction Meetings and Minutes 2 4 4 60 $1,600
Track and Review Submittals 10 60 $9,700
LSL Observation Year 1 (20 weeks @ 15 hr/week) 300 Prints/Misc $200 1,000 $33,300
LSL Observation Year 2 (20 weeks @ 15 hr/week) 300 Prints/Misc $200 2,000 $33,900
LSL Observation Year 3 (20 weeks @ 15 hr/week) 300 Prints/Misc $200 2,000 $33,900
Project Administration/DWRF Assistance (30 months) 15 60 180 $36,600
Respond to RFIs 5 20 $3,500
Change Orders (10) 10 20 $4,300
Pay Apps (20) 20 60 21 $13,200
Progress Meetings/Minutes (assume 3 per year) 10 18 30 50 $8,800
Punch List Visits/Follow up (5) 6 20 20 100 $5,900
Record Plans/GIS update/Closeout 2 10 10 80 40 $20,000
Rate Adjustment over 4 years $53,700
Construction Engineering Subtotals 29 143 0 404 80 960 21 $600 5,210 $258,400
Project Grand Total 74 208 62 424 100 960 27 0 4,400 5,270 $296,400
Page 1 of 1
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: EGLE Brownfield Loan
Application- City of Muskegon
and The Meadows LLC
Submitted By: Contessa Alexander Department: Economic
Development
Brief Summary: The City of Muskegon has been invited to submit an EGLE Brownfield Loan
Application with The Meadows LLC as the Developer.
Fishbeck (the consultant) has submitted a proposal on behalf of the City of Muskegon for a $1M loan.
The pre-vetting process for the EGLE Loan has been completed and The City of Muskegon is invited to
apply for this project with The Meadows LLC as the developer.
Detailed Summary & Background:
The Harbor 31 project (as a whole redevelopment) is a planned mixed-use development on
approximately 25 acres of Muskegon Lake waterfront in downtown Muskegon. Proposed uses include
a hotel, 33-single and multifamily residential units, a two-story office building, 48 rental townhomes,
two four-story buildings with grade level retail and apartments above, a 100-unit waterfront
apartment building, a marina, and an in/out boat service sales and rental operation. For these uses to
safely occur, significant due care measures are required to mitigate environmental concerns. Vapor
barriers and venting systems are necessary beneath proposed site structures to prevent potential
intrusion of harmful vapors. The cost to implement due care is significant and poses a threat to project
completion. Brownfield funding will be used to complete due care activities for The Meadows and The
Commons so that the development can be safely completed. The Meadows currently owns the
property where The Commons are located. Eventually The Commons will split from The Meadows and
form a separate LLC and Brownfield Plan.
Staff Comments:
The focus areas for this loan include the projects below:
170 Viridian Drive (The Meadows)- This parcel includes the development of 22 residential
rental townhomes known as the Meadows at Harbor 31. Additional analytical testing is
estimated at $25,000 for this parcel and includes the collection of soil, groundwater and/or soil
gas samples across this parcel to determine if vapor mitigation is necessary at this parcel.
630 & 633 Terrace Street (The Commons East and West)- These parcels are located along the
eastern and western sides of the
entrance drive to the Harbor 31 Redevelopment. These parcels will each have a mixed-use
building, approximately 30,000 square feet in size. Therefore, approximately 60,000 square
feet of vapor mitigation is necessary on these parcels. It is anticipated that each building will
need a below slab vapor barrier and/or active mitigation. The projected cost for vapor
mitigation system construction is approximately $8/sq foot, equating to an estimated
$480,000.
Total costs are expected to be $116,233,000. This includes assessment/investigation,
demolition, abatement, due care activities, response activities, non-environmental public
structure, Non-Environmental Site Preparation, Contingency (up to 15% of grant/loan),
Administration (up to 3% of grant/loan), EGLE Project Sign (grant/loan requirement), Grant
Closeout Report (grant/loan requirement), Capital Investment (whole site), and State of
Michigan Budget Appropriation.
The applicant for the EGLE Brownfield Loan is the City of Muskegon. The applicant project contact will
be Contessa Alexander. The applicant signing authority will be Jonathan Seyferth. The project
consultant is Kirk Perschbacher, Fishbeck. The project contact will be responsible for the day to day
operations, working closely with the entire team. This person will work with the project consultant to
send in quarterly invoices to EGLE for reimbursement. The applicant signing authority will legally sign
off on all documents on behalf of The City of Muskegon. The proper vetting for this Loan has been
completed and The City of Muskegon is invited to apply.
The following documents will be required with the application:
• A resolution adopted by the city, verifying that the city is willing to accept the loan
• A Development / Reimbursement Agreement
Goal/Focus Area/Action Item Addressed:
DESTINATION COMMUNITY & QUALITY OF LIFE, ECONOMIC DEVELOPMENT, HOUSING,
AND BUSINESS
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: I move to approve the attached resolution for the City of Muskegon to apply
for the EGLE Brownfield Loan application with The Meadows LLC as the Developer and authorize the
Mayor and Clerk to sign.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
City of Muskegon
RESOLUTION OF SUPPORT to
APPLY FOR A LOAN TO BE USED AT
The Meadows and The Commons- Harbor 31 Redevelopment
WHEREAS, City of Muskegon will apply for a Michigan Department of Environment, Great Lakes, and
Energy (EGLE) Brownfield Redevelopment Loan in the amount of $1,000,000, to support real estate
rehabilitation project at The Meadows and The Commons, The Meadows LLC; and
WHEREAS, the purpose of the EGLE Brownfield Loan is to provides grants and loans to communities
through its Brownfield Redevelopment Grant and Loan program to encourage reuse of brownfield
properties by funding environmental response activities; and
WHEREAS, City of Muskegon will enter into a Loan Agreement with EGLE to borrow $1,000,000 to The
Meadows LLC; and
WHEREAS, the real estate rehabilitation projects are key to meeting the ongoing housing needs of our
community; and
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners hereby authorizes the
application of a loan in the amount of $1,000,000 to be used at The Meadows and The Commons.
Ayes:
Nayes:
Absent:
Motion Approved.
I HEREBY CERTIFY, that the foregoing is a Resolution duly make and passed by Twenty-Seventh Day of
June at their regular meeting held on Tuesday, June 27th, 2023, at 5:30 p.m. in the City of Muskegon
Commission Chambers (933 Terrace Street, 49440), with a quorum present
________________________________ Dated: ________________________
Ken Johnson, Mayor
________________________________ Dated: ________________________
Ann Marie Meisch, City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: EGLE Brownfield Loan
Application- Downtown
Development Authority,
Parkland Properties of
Michigan, 965 W. Western
Ave., 920 & 930 Washington
Ave.
Submitted By: Contessa Alexander Department: Economic
Development
Brief Summary: The Downtown Development Association (DDA) has been invited to submit an
EGLE Brownfield Loan Application with Parkland Properties of Michigan as the Developer for 965
W. Western Ave., 920 & 930 Washington Ave (Shaw Walker Project).
Environmental Resource Group (the consultant) submitted a proposal on behalf of the DDA for a $1M
loan. The pre-vetting process for the EGLE Loan has been completed and the DDA is invited to apply
for this project with Parkland Properties of Michigan as the developer.
Detailed Summary & Background:
There are considerable costs related to the environmental activities for the former Shaw Walker
Furniture property. The developer is seeking $1,000,000 from the EGLE Brownfield Redevelopment
Program ($1M loan). These funds will offset some of the environmental costs for the activities that are
described below.
Vapor mitigation systems for the existing building
Vapor mitigation system performance monitoring and reporting
Asbestos and hazardous materials abatement
Consultant oversight and reporting
Proposed schedule for eligible activities:
The project is expected to begin in the fall of 2023 with vapor system pilot testing and the start
of asbestos / hazardous materials abatement.
The project will result in adaptive reuse of nearly 630,000 square feet of dilapidated former industrial
space into a lively mixed-use development. The project is projected to result in over $120 million in
tax capture over 20 years between property taxes and new income taxes.
Staff Comments:
The applicant for the EGLE Brownfield Loan/ Grant is the City of Muskegon Downtown Development
Authority. The applicant project contact will be Peter Wills. The applicant signing authority will be
Jonathan Seyferth. The project consultant is Jackie Freiberg, Environmental Resources Group.
The project contact will be responsible for the day to day operations, working closely with the entire
team. This person will work with the project consultant to send in quarterly invoices to EGLE for
reimbursement.
The applicant signing authority will legally sign off on all documents on behalf of the DDA.
The proper vetting for this Loan has been completed and the DDA is invited to apply. The following
documents will be required with the application:
• A resolution adopted by the city, verifying that the city is willing to accept the loan
• A Development Agreement is underway.
Goal/Focus Area/Action Item Addressed:
DESTINATION COMMUNITY & QUALITY OF LIFE, ECONOMIC DEVELOPMENT, HOUSING,
AND BUSINESS
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: I move to approve the attached resolution for the DDA to apply for the EGLE
Brownfield Loan application with Parkland Properties of Michigan as the Developer and authorize the
Mayor and Clerk to sign.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
City of Muskegon
RESOLUTION OF SUPPORT to
APPLY FOR A LOAN TO BE USED AT
965 W. WESTERN AVE., 920 & 930 WASHINGTON AVE. -Parkland Properties of Michigan
WHEREAS, Downtown Development Authority will apply for a Michigan Department of Environment,
Great Lakes, and Energy (EGLE) Brownfield Redevelopment Loan in the amount of $1,000,000, to
support real estate rehabilitation project at 965 W. WESTERN AVE., 920 & 930 WASHINGTON AVE,
Parkland Properties of Michigan; and
WHEREAS, the purpose of the EGLE Brownfield Loan is to provides grants and loans to communities
through its Brownfield Redevelopment Grant and Loan program to encourage reuse of brownfield
properties by funding environmental response activities; and
WHEREAS, Downtown Development Authority will enter into a Loan Agreement with EGLE to borrow
$1,000,000 to 965 W. WESTERN AVE., 920 & 930 WASHINGTON AVE; and
WHEREAS, the real estate rehabilitation projects are key to meeting the ongoing housing needs of our
community; and
NOW, THEREFORE LET IT BE RESOLVED, that Muskegon City Commissioners hereby authorizes the
application of a loan in the amount of $1,000,000 to be used at 965 W. WESTERN AVE., 920 & 930
WASHINGTON AVE.
Ayes:
Nayes:
Absent:
Motion Approved.
I HEREBY CERTIFY, that the foregoing is a Resolution duly make and passed by Twenty-Seventh Day of
June at their regular meeting held on Tuesday, June 27th, 2023, at 5:30 p.m. in the City of Muskegon
Commission Chambers (933 Terrace Street, 49440), with a quorum present
________________________________ Dated: ________________________
Ken Johnson, Mayor
________________________________ Dated: ________________________
Ann Marie Meisch, City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Public Hearing-
Brownfield Plan Amendment,
880 1st St., 216 West Clay
Ave.
Submitted By: Contessa Alexander Department: Economic
Development
Brief Summary: 880 First Street, LLC has submitted a Brownfield Plan Amendment for the 880 1st
Street Rehabilitation & New Construction Project- a mixed- use redevelopment project located at
880 1st St., and 216 West Clay Ave.
Detailed Summary & Background:
880 1st Street Rehabilitation & New Construction Project is a mixed- use redevelopment project
with a total capital investment of $28.8 million. The projects eligible property is approximately 0.49
acres that consists of one parcel and a small portion of another adjacent (880 1st St. and 216 W.
Clay Avenue. The property is considered an eligible facility as defined by Act 381.
The total number of new jobs is 109, which includes construction and support staff, managerial and
administrative employees. There will be 1,384 rentable square feet commercial business space
containing a retail/service provider, 7,700 rentable square feet multi-purpose/co-working and event
space, and 57 multifamily residential apartments offering attainable workforce housing (units
between 80% and 120% of the AMI according to current MSHDA affordability guidelines). Vertical
construction is scheduled to begin in the Spring 2024 and anticipated to be completed by Summer
2026. The total estimated plan capture for eligible activities is for 35 years, 2025-2059.
After the project is completed the total new taxes received by taxing units is $2,366.873, total
captured by the BRA is $6,201,788, and total new taxes is $8,568,661.
During the 35 years tax capture period, the total tax capture is $13,481,830 which includes local
taxes (to be reimbursed to the developer for eligible activities) of $5,225,029, state school taxes (to
be reimbursed to the developer for eligible activities) at $6,935,640, State of Michigan Brownfield
Redevelopment Fund (MBRF) (Maximum of 25-Year period for tax capture) of $274,220, BRA
Local Brownfield Revolving Fund of $872,283, and the Brownfield Redevelopment Authority (BRA)
Administration of $174,658.
Eligible activities will include EGLE eligible activities such as assessments, due care planning, and
due care activities. MSF non-environment activities eligible activities include demolition,
lead/asbestos activities, infrastructure improvements, and site preparation activities. The plan
includes a 15% contingency for environmental and non- environmental activities and 5% in
interest.
The Brownfield Redevelopment Authority approved the Brownfield Plan on June 13th, 2023.
Goal/Focus Area/Action Item Addressed:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: I move to close the Public Hearing and approve the resolution for the
Brownfield Plan Amendment for the 880 1st Street Rehabilitation & New Construction Project
authorizing the City Clerk and City Mayor to sign.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
RESOLUTION APPROVING BROWNFIELD PLAN AMENDMENT
880 1st Street LLC, (880 1st St, 216 W. Clay Ave.)
City of Muskegon
County of Muskegon, Michigan
Minutes of a regular meeting of the Board of the City of Muskegon, County of Muskegon,
Michigan (the "City"), held in the City Commission Chambers on the 27 day of June, 2023 at 5:30
p.m., prevailing Eastern Time.
PRESENT:
ABSENT:
The following preamble and resolution were offered by ________ and supported by
__________ .
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; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment, to the City
Commission requesting its approval of the Brownfield Plan Amendment; 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
July 27, 2021.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
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:
NAYS:
RESOLUTION DECLARED ADOPTED.
_______________________
Ken Johnson, Mayor
Ann Marie Meisch, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution
-2-
adopted by the Board of the City of Muskegon Brownfield Redevelopment Authority, County
of Muskegon, State of Michigan, at a regular meeting held on June 27th, 2023, 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,
and that the minutes of said meeting were kept and will be or have been made available as
required by said Act.
_____________________________
Ann Marie Meisch, City Clerk
-3-
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 27, 2023 Title: Transmittal
of 2023-24
Proposed Budget
Submitted By: Kenneth D. Grant Department:
Finance
Brief Summary:
Detailed Summary & Background: Summary: At this time staff is transmitting to the City
Commission the proposed budget for fiscal year 2023-24 which starts July 1, 2023. Both
hardcopy and electronic versions of the budget have been distributed to Commissioners.
Additionally, the budget is available for inspection on the City’s website and at the City Clerk’s
office. The proposed budget was reviewed in detail with staff at the June 12, 2023 work session.
A public hearing on the budget was held at the regular Commission meeting on June 13, 2024.
City ordinance requires that the budget be adopted by the Commission on or before the second
Commission meeting in June.
The budget can be viewed at this link.
Goal/Focus Area/Action Item Addressed: Sustainability in financial practices
Amount Requested: Amount
Budgeted:
Fund(s) or Account(s): Fund(s) or
Account(s):
Recommended Motion: Approval of the proposed budget for fiscal year 2023-24
Approvals: Get approval from division head at a minimum prior to Guest(s) Invited /
sending to the Clerk. Presenting
Immediate Division Head Information Technology
Other Division Heads Communication Yes
Legal Review No
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
RESOLUTION OF APPROPRIATION
2023-24 BUDGET
WHEREAS, the City Manager has submitted a proposed Budget for 2023-24 in accordance
with City Ordinance and Michigan Public Act 621 of 1978 known as the "Uniform Budgeting and
Accounting Act"; and,
WHEREAS, the 2023-24 proposed Budget has been reviewed by the City Commission
following a public hearing for which due notice was given; NOW, THEREFORE, BE IT RESOLVED
that the Budget for the City of Muskegon for the fiscal year beginning July 1, 2023 is hereby
determined and adopted as follows:
GENERAL FUND
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
101-101 City Commission $147,376
101-103 City Promotions & Public Relations $182,223
101-266 City Attorney $420,000
101-172 City Manager $714,619
101-252 Support to Outside Agencies $574,426
101-215 City Clerk & Elections $836,450
101-269 Employee Relations $325,164
101-202 Finance Administration $752,641
101-203 Pension Administration $2,857,808
101-205 Income Tax Administration $485,142
101-257 Assessing Services $430,000
101-288 Information Systems Administration $699,693
101-253 City Treasurer $729.654
101-272 Insurance Premiums $810,000
101-906 Debt Retirement $1,081,004
101-999 Transfers to Other Funds $1,430,000
101-301 Police $11,498,377
101-336 Fire $4,412,794
101-387 Building Code Inspections and Enforcement $2,406,083
101-265 City Hall Maintenance $474,279
101-446 Community Event Support/Downtown BID $172,871
101-448 Streetlighting $310,000
101-521 Sanitation $2,570,612
101-550 Stormwater Management $24,250
101-567 Cemeteries Maintenance $598,103
101-772 Parking Operations $432,617
101-773 Social District $46,528
101-751 Recreation $340,419
101-770 Parks Maintenance $2,633,060
101-757 McGraft Park Maintenance $117,651
101-771 Forestry $28,000
101-701 Planning, Zoning and Economic Development $554,263
Major Capital Improvements
101-901 $582,700
Grand Total General Fund Appropriations $38,688,306
OTHER BUDGETED FUNDS
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
202,204 Major Streets and State Trunklines 3,785,937
203 Local Streets 2,078,392
BE IT FURTHER RESOLVED that the revenues and other financing sources (including use of
prior year balances) for Fiscal Year 2023-24 are estimated as follows:
GENERAL FUND
FUND/ACTIVITY NAME AMOUNT
Taxes $ 18,592,474
State Revenues 6,649,318
Fees 5,166,675
All Building Permits 1,456,000
Beach Parking 800,000
Public Safety Revenue 586,600
Operating Transfers In 430,000
Indirect Costs 1,748,335
Fund Balance Drawdown 990,501
Other Revenue 3,258,904
Total General Fund Revenue $39,678,807
OTHER BUDGETED FUNDS
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
202,204 Major Streets and State Trunklines 5,060,000
203 Local Streets 1,907,500
BE IT FURTHER RESOLVED that the operating expense projections for the following non-budget
funds are hereby approved:
FUND
ACTIVITY
NUMBER FUND/ACTIVITY NAME AMOUNT
305 TIFA Debt Service $50,000
394 Downtown Development Authority Debt 635,802
250 Local Finance Development Authority Debt 108,824
235 Brownfield Redevelopment Authority (Betten) 7,300
237 Brownfield Redevelopment Authority (Former Mall) 255,685
298 Brownfield Redevelopment Authority (Terrace Point) 375,300
252 Farmers Market & Kitchen 242 453,286
254 Trinity Health Arena 2,222,898
404 Public Improvement Fund 2,449,000
482 State Grants Fund 1,500,000
590 Sewer 10,738,972
591 Water 12,797,624
594 Marina/Launch Ramp 617,022
661 Equipment 4,110,420
642 Public Service Building 2,316,058
643 Engineering Services Fund 795,108
677 General Insurance Fund 3,253,694
BE IT FURTHER RESOLVED, that there is hereby appropriated for said fiscal year the several
amounts set forth above which, pursuant to the "Uniform Budget and Accounting Act", define the
City of Muskegon's appropriation centers, and
BE IT FURTHER RESOLVED, that the City Manager is hereby empowered to transfer
appropriations within appropriation centers, and
BE IT FURTHER RESOLVED, that there is hereby levied a general tax as herein fixed on each
dollar of taxable valuation for the purposes herein outlined, said levy to be applied on all taxable
real and personal property in the City of Muskegon as set forth in the assessment roll dated May
2023:
PURPOSE MILLAGE (MILLS)
General Operating 9.7880
Sanitation Service 2.9364
Promotion .0674
Total 12.7918
At a meeting of the City Commission of the City of Muskegon, on the _____ Day of June , the
foregoing resolution was moved for adoption by__________________. Commissioner
___________________ supported the motion.
Resolution declared adopted.
_________________________________ __________________________________
Mayor City Clerk
Fund Balance
Indrect Cost 3%
Alloications Property Taxes
4% 17%
Transfers In Other
1% 8%
Beach Parking Public Safety Revenue
2% 1%
All Building Permites
4%
Fees
Income Taxes
13%
28%
State Revenues Marijuana Taxes
17% 2%
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date:June 27, 2023 Title:Distribution of Master
Plan to Notice Group
Submitted By: Mike Franzak Department: Planning
Brief Summary:
The Planning Commission has prepared the proposed master plan update and is submitting it to
the City Commission for distribution to the notice group for a 63-day review.
Detailed Summary & Background:
The notice group includes the planning commissions of all contiguous local units of government,
the Muskegon County Board of Commissioners, each public utility company, railroad company,
and public transportation company in the City, and any other governmental entity that has
requested to be notified.
The plan can be viewed at this link.
Goal/Focus Area/Action Item Addressed:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion:
To approve distribution of the proposed master plan to the notice group for a 63-day review period.
Approvals: Get approval from division head at a minimum prior Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head Information Technology Yes
Other Division Heads Communication No
Legal Review
For City Clerk Use Only:
Commission Action:
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING DISTRIBUTION OF PROPOSED MASTER PLAN
WHEREAS, the Michigan Planning Enabling Act (MPEA) authorizes the Planning Commission to
prepare a Master Plan for the use, development and preservation of all lands in the City, and
WHEREAS, the MPEA authorizes the Planning Commission to update a Master Plan, and
WHEREAS, the Planning Commission prepared a proposed Master Plan update and submitted
the plan to the City Commission for review and comment, and
WHEREAS, on June 27, 2023, the City Commission received and reviewed the proposed Master
Plan prepared by the Planning Commission and authorized distribution of the Master Plan to the Notice
Group entities identified in the MPEA, and
WHEREAS, the Notice Group will have 63 days to review the proposed Master Plan amendments
and make comments to City staff, and
WHEREAS, after the 63-day notice period, a public hearing will be held to adopt the Master Plan
update; and
NOW THEREFORE BE IT RESOLVED AS FOLLOWS:
The City Commission approves the distribution of the Master Plan amendments to the Notice Group
for a 63-day review period.
Adopted this 27th Day of June 2022.
Ayes:
Nays:
Absent:
BY: __________________________________
Ken Johnson
Mayor
ATTEST: __________________________________
Ann Meisch
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on June 27, 2023.
______________________________
Ann Meisch
Clerk