City Commission Minutes 07-11-2017

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JULY 11, 2017 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440


                                MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, July 11, 2017.
Commissioner Willie German opened the meeting with prayer, after which the
Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:  Mayor Stephen J. Gawron, Commissioners Ken Johnson, Debra
Warren, Dan Rinsema-Sybenga, Byron Turnquist, and Willie German, Jr., City
Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann
Meisch.
Absent:    Vice Mayor Eric Hood
2017- 56   CITY MANAGER’S REPORT:
     A. Procedural Correction       City Manager, City Clerk, City Attorney
SUMMARY OF REQUEST: At the meeting held on June 27, 2017 there was an
affirmation roll call but no motion made to approve the 2017-18 budget.
STAFF RECOMMENDATION:        To make a motion to approve the 2017-18
Proposed Budget.
Motion by Commissioner German, second by Commissioner Warren, to approve
the 2017-18 Proposed Budget.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Warren, and
           German
           Nays: None
MOTION PASSES
2017-57    CONSENT AGENDA:
     A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the Special Meeting held

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Monday, June 26, 2017 and the Regular City Commission Meeting held Tuesday,
June 27, 2017.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
      B. Lakeshore Museum Loan Agreement               Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the Lakeshore Museum Center Loan
Agreement relating to the 1923 American LaFrance Fire Truck with attached
equipment. Currently, the LaFrance is on display at the Fire House Museum (Clay
Avenue). Part of this agreement includes for the museum to try to get the fire
truck in working condition, at their own expense, as their budget allows.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of this loan
agreement.
      C. D.D. MacGee’s Grill LLC Concession/Business Contract for City of
         Muskegon Parks        DPW
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Bryan Toth of D.D. MacGee’s Grill LLC, at Pere
Marquette Park, located within the City of Muskegon, to sell various items, as
stated in their proposal, from a mobile concession.
FINANCIAL IMPACT:        Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:         Authorize DPW staff to enter into concession
agreement with Bryan Toth of D.D. MacGee’s Grill, LLC.
      D. Approval of Building Contract for 1350 Eastwood Drive         CNS
SUMMARY OF REQUEST: To award the Building Contract for the rehabilitation of
1350 Eastwood Drive to Nassau Construction for the City of Muskegon’s
Homebuyers Program through CNS.
CNS received 2 bids, the cost estimate from our spec writer was $79,000
FINANCIAL IMPACT:        The funding for this project has been secured with 2016
HOME funds
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:         To award Nassau Construction the rehabilitation
contract for 1350 Eastwood Drive in the amount of $95,500, for the Community

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and Neighborhood Services Office.
      E. Amendment to the Zoning Ordinance – Signage           Planning &
         Economic Development – SECOND READING
SUMMARY OF REQUEST: Staff initiated request to amend Section 2334 of the
zoning ordinance to amend the rules on electronic message board signs and to
allow them in B-1, Limited Business Districts and WM, Waterfront Marine Districts,
as well as at churches in all zoning districts and all businesses that have been
granted a special use permit in residential districts.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the zoning ordinance amendment.
      F. Rezoning Request for Several Properties to R-2, Single Family Medium
         Density Residential District Planning & Economic Development –
         SECOND READING
SUMMARY OF REQUEST: Staff initiated request to rezone several properties from
R-1, Single Family Low Density Residential District to R-2, Single Family Medium
Density Residential District.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their June 15 meeting, with one
member absent.
      G. Rezoning Request for Several Properties to R-3, Single Family High
         Density Residential District Planning & Economic Development –
         SECOND READING
SUMMARY OF REQUEST: Staff initiated request to rezone several properties from
R-1, Single Family Low Density Residential District to R-3, Single Family High
Density Residential District.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their June 15 meeting, with one
member absent.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Turnquist,

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to approve the consent agenda as presented.
ROLL VOTE:    Ayes: Turnquist, Johnson, Gawron, Warren, German, and Rinsema-
              Sybenga
             Nays: None
MOTION PASSES
2017-58   PUBLIC HEARINGS:
      A. Public Hearing for Brownfield Plan Amendment and Development and
         Reimbursement Agreement for Liberty Building (formerly Ameribank)
         Redevelopment Project        Planning & Economic Development
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting the amendment to the Brownfield Plan and to
approve the Development and Reimbursement Agreement. The amendments
are for property to be purchased by Liberty Development, LLC.
FINANCIAL IMPACT:           Brownfield Tax Increment Financing will be used to
reimburse the developer and the City for “eligible expenses” incurred in
association with development of the Liberty Building Project. Liberty
Development, LLC cost for the development of the property is approximately
$6.88 million in private investment, resulting in a substantial increase in the local
and school taxes generated by the property.
“Eligible Expenses” would be reimbursed starting in 2019. The estimated tax
capture and payment schedule is included as Table 2 in the proposed
Brownfield Plan Amendment.
During the last five years of the plan (estimated to be 2043-2048), the BRA is
authorized to capture local taxes for five years for deposit into a Local
Brownfield Revolving Fund
The Development and Reimbursement Agreement provides the structure for the
capture of taxes and the reimbursement to Liberty Development, LLC and the
City of Muskegon for eligible expenses.
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:         To hold a public hearing for approval of the
Brownfield Plan Amendment for the Liberty Building Redevelopment Project and
approve the resolution and authorize the Mayor and Clerk to sign the resolution,
and to approve the Development and Reimbursement Agreement between
Liberty Development, LLC, the City of Muskegon and the City of Muskegon
Brownfield Redevelopment Authority.
COMMITTEE RECOMMENDATION:              The Muskegon City Commission set the
public hearing for July 11, 2017 at their June 27, 2017 meeting. Since that time, a
notice of the public hearing has been sent to taxing jurisdictions. In addition, the

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Brownfield Redevelopment Authority approved the Plan Amendment and the
Development and Reimbursement Agreement on June 15, 2017 and
recommends that the Muskegon city Commission approve the Plan
Amendment and Development and Reimbursement Agreement.
PUBLIC HEARING COMMENCED:             Gary Post, Developer, addressed the
commission.
Motion by Commissioner Johnson, second by Commissioner Warren, to close
the public hearing and approve the Brownfield Amendment Plan for the Liberty
Building Redevelopment Project and approve the resolution and authorize the
Mayor and Clerk to sign the resolution, and to approve the Development and
Reimbursement Agreement between Liberty Development, LLC, the City of
Muskegon, and the City of Muskegon Brownfield Redevelopment Authority.
ROLL VOTE: Ayes: Johnson, Gawron, Warren, German, Rinsema-Sybenga, and
           Turnquist
            Nays: None
MOTION PASSES
2017-59     NEW BUSINESS:
      A. Arena Lease – Rad Dad’s      City Manager
SUMMARY OF REQUEST: City Staff has been working with a group of local
business owners interested in creating a restaurant and bar to service the LC
Walker Arena and also provide more daily food/beverage options to the
downtown community. Rad Dad’s Taco and Tequila Bar is originally proposed to
lease approximately 3,500 square feet of concourse space in the arena and 500
square feet of outdoor space to provide outdoor dining space at the corner of
Western Avenue and 4th Street. The group is now proposing to lease
approximately 5,300 square feet. The owners would like to open by September
1, 2017.
FINANCIAL IMPACT:         Build-out costs are expected to be less than $350,000. If
build out costs are at $350,000, the tenant’s initial lease rate will be $12.50/sf
($66,250 annually for both interior and outdoor space. In the event that costs fall
below or exceed $350,000, any amount over or under $350,000, will be added to
or subtracted from the tenant’s lease rate as follows: for every dollar of
variance, the tenant’s annual rent will increase/decrease by 12.5 cents per
year. Regardless of savings, rent will be no less than $53,000 annually.
BUDGET ACTION REQUIRED:        $350,000 Capital Improvement is expected; a
budget adjustment will be included as part of the 1st quarter budget reforecast,
with the proceeds coming from the Public Improvement Fund.
STAFF RECOMMENDATION:          To approve the request and authorize the city
Manager to sign the lease.

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Motion by Commissioner Johnson, second by Commissioner German, to
approve approve the request and authorize the City Manager to sign the lease.
ROLL VOTE: Ayes: Gawron, Warren, German, Rinsema-Sybenga, Turnquist, and
           Johnson
            Nays: None
MOTION PASSES
      B. Arena Rink Alterations       City Manager
SUMMARY OF REQUEST: There are a number of repairs needed to the dasher
boards at the LC Walker Arena. Rather than simply repairing and replacing the
boards, arena management is proposing to upgrade the dasher boards behind
both goalie areas to accommodate indoor soccer goals. The new boards will
allow for an imbedded 14x18 soccer goal. These goals will accommodate the
Muskegon Risers indoor soccer club, as well as a number of exhibition games
planned in 2017 – 18. The goals will also make it possible to add indoor soccer
tournaments and leagues during the hockey offseason.
FINANCIAL IMPACT:         The new dasherboards are provided and installed by
Rink Systems at a cost of $24,250. The concrete work will be provided by RW
Concrete Sawing, Inc. at a cost of $4,155. Additional costs may arise as arena
staff explores seating options for the area directly adjacent to the soccer goals.
BUDGET ACTION REQUIRED:        A budget adjustment will be included as part of
the 1st quarter budget reforecast, with the proceeds coming from the Public

Improvement Fund.
STAFF RECOMMENDATION:           To approve the request and authorize the
installation of the new dasher board system at a cost not to exceed $30,000.
Motion by Commissioner German, second by Commissioner Warren, to approve
the request and authorize the installation of the new dasher board system at a
cost not to exceed $30,000.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
      C. Authorization to Repair/Refurbish 1999 Olympia        City Manager
SUMMARY OF REQUEST: The City owns and operates a 1999 Olympia Ice
Resurfacing machine (often referred to as a Zamboni). The Olympia has
required significant repairs over the past three hockey seasons, and almost in
the inability to finish a Lumberjack’s playoff game earlier this year. A
replacement Olympia would likely cost between $75,000 and $125,000,
depending on the age of the unit. Staff is seeking permission to send the current

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Olympia to be refurbished. The cost of the project is dependent upon the
components that are ultimately replaced. Arena management expect this cost
to be between $30,000 and $35,000, as a number of major components have
already been replaced in the past year.
FINANCIAL IMPACT:        Not to exceed $35,000
BUDGET ACTION REQUIRED:        A budget adjustment will be included as part of
the 1st quarter budget reforecast, with the proceeds coming from the Arena

Fund.
STAFF RECOMMENDATION:          To approve the request and authorize the
refurbishing of the 1999 Olympia at a cost not to exceed $35,000.
Motion by Commissioner German, second by Commissioner Warren, to approve
the request and authorize the refurbishing of the 1999 Olympia at a cost not to
exceed $35,000.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron
            Nays: None
MOTION PASSES


   ADJOURNMENT: The City Commission meeting adjourned at 6:27 p.m.


                                           Respectfully Submitted,




                                           Ann Marie Meisch, MMC, City Clerk




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