City Commission Minutes 10-10-2023

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                                 City of Muskegon
                             City Commission Meeting
                                     Minutes


                            October 10, 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
                      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
      Mayor Johnson called the City Commission meeting to order at 5:30 p.m.
2.    Prayer
      Pastor Russell Damm from Oakcrest Church of God 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
5.    Honors, Awards, and Presentations
      5.a    Memorial for Hope Griffith

                                          1
           Mayor Johnson read and presented a Proclamation Honoring Hope Griffith
           to Hope's family. Hope Griffith was an employee of the City for over 25
           years and passed away unexpectedly on August 17, 2023. She had a
           wealth of knowledge, was extremely helpful, generous, and kind and will
           be sincerely missed by all.
     5.b   Recognition of Steve Hammond - Inspector of the Year
           Public Safety Director Tim Kozal and Deputy Public Safety Director Jay
           Paulson introduced award recipient Steve Hammond. He was nominated
           for the award by Deputy Director Paulson. Steve was awarded the
           Inspector of the Year Award from the Michigan Fire Inspectors Society in
           "Recognition of Outstanding Effort and Dedication to Bring About Fire
           Safety for Your Community and State".
6.   Public Comment on Agenda Items
     Public comments were received.
7.   Consent Agenda
     Action No. 2023-106
     Motion by: Commissioner St.Clair
     Second by: Commissioner Gorman
     To accept the consent agenda as presented, minus items 7B, 7C, 7D, 7F, 7L,
     7M, and 7N
     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 September 26, 2023 Regular Meeting.
           STAFF RECOMMENDATION: To approve the minutes.
     7.e   Samaritas Municipal Services Agreement - Development Services -
           417 E. Jackson
           City Staff has negotiated and reviewed a Payment in Lieu of Taxes
           agreement for commission consideration for an adaptive reuse project at
           Froebel School into affordable workforce housing apartments.

                                        2
      For several years staff have been attempting to find a partner that had
      interest and capacity in the adaptive reuse of the long-vacant Froebel
      School building. Since 2019, we have toured more than 10 entities
      through the school, and held a community meeting offering several touring
      opportunities for the public. Through these efforts we have developed
      interest from Samaritas for the potential installation of affordable housing
      units by application to the Michigan Statewide Housing Development
      Authority (MSHDA) Low Income Housing Tax Credit (LIHTC) Program. If
      awarded, then Samaritas proposes historical preservation and adaptive
      remodel of the school building into apartments for low to moderate income
      residents. The attached agreement establishes their Municipal Services
      Agreement at 3% of shelter rents.
      If approved by commission, Samaritas is also proposing a PILOT payment
      of 2% of net shelter rents, for a total annual payment of 5% of rents. The
      Municipal Services Agreement (MSA) stays completely with the city to
      defray costs of public service delivery to the site, while the PILOT payment
      is divided proportionally to the other taxing jurisdictions, similar to a
      traditional property tax payment.
      This item is connected to the Samaritas PILOT agenda item, as well as
      the sales agreement item for Froebel School.
      STAFF RECOMMENDATION: To approve the Municipal Services
      Agreement with Samaritas Affordable Living Froebel Limited Dividend
      Housing Association Limited Partnership and authorize the mayor and
      clerk to sign.
7.g   Spire Development, Allen Crossing Municipal Services Agreement -
      Development Services - 148 Allen Avenue
      City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
      Municipal Services agreement for commission consideration for a new
      construction 45 unit Senior workforce/family affordable housing complex at
      and around 148 Allen Avenue.
      Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
      rental units priced under $1,430 a month, staff has made overtures and
      established relationships with several new Low Income Housing Tax
      Credit (LIHTC) developers. Spire Development originally responded to our
      request for proposals at the former Catholic Charities site, and when they
      were not selected by commission for that project we immediately
      introduced them to the site owners of this subject property.


                                    3
      Per their request letter, Spire is seeking a Municipal Services Agreement
      of 3% of net shelter rents. This should equal roughly $10,000-$12,000 per
      year. Spire is also requesting a 6% PILOT, which is detailed in another
      agenda item in the packet.
      STAFF RECOMMENDATION: To approve the Municipal Services
      Agreement with Allen Crossing Affordable Living Froebel Limited Dividend
      Housing Association Limited Partnership and authorize the mayor and
      clerk to sign.
7.h   Spire Development, Amity Commons PILOT Agreement -
      Development Services - 159 Amity Avenue
      City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
      Municipal Services agreement for commission consideration for a new
      construction 50-unit workforce/family affordable housing complex at and
      around 159 Amity Avenue.
      Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
      rental units priced under $1,430 a month, staff has made overtures and
      established relationships with several new Low Income Housing Tax
      Credit (LIHTC) developers. Spire Development originally responded to our
      request for proposals at the former Catholic Charities site, and when they
      were not selected by commission for that project we immediately
      introduced them to the site owners of this subject property.
      Per their request letter, Spire is seeking a PILOT Agreement of 5% of net
      shelter rents. This should equal roughly $16,500-20,000 per year for all
      taxing jurisdictions to split. Spire is also requesting a 3% Municipal
      Services Charge, which is detailed in another agenda item in the packet.
      STAFF RECOMMENDATION: To approve the Contract for Housing
      Exemption with Amity Commons Limited Dividend Housing Association
      Limited Partnership and authorize the mayor and clerk to sign.
7.i   Spire Development, Amity Commons Municipal Services Agreement -
      Development Services - 159 Amity Avenue
      City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
      Municipal Services agreement for commission consideration for a new
      construction 50 unit workforce/family affordable housing complex at and
      around 159 Amity.
      Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
      rental units priced under $1,430 a month, staff has made overtures and

                                   4
      established relationships with several new Low Income Housing Tax
      Credit (LIHTC) developers. Spire Development originally responded to our
      request for proposals at the former Catholic Charities site, and when they
      were not selected by commission for that project we immediately
      introduced them to the site owners of this subject property.
      Per their request letter, Spire is seeking a Municipal Services Agreement
      of 3% of net shelter rents. This should equal roughly $10,000-$12,000 per
      year. Spire is also requesting a 5% PILOT, which is detailed in another
      agenda item in the packet.
      STAFF RECOMMENDATION: To approve the Municipal Services
      Agreement with Amity Commons Affordable Living Froebel Limited
      Dividend Housing Association Limited Partnership and authorize the
      mayor and clerk to sign.
7.j   Sale of 1530 Hoyt Street - City Manager's Office
      Staff is requesting approval of a purchase agreement for 1530 Hoyt
      Street. Create an environment that effectively attracts new
      residents and retains existing residents by filling existing employment
      gaps, attracting new and diverse businesses to the city, and expanding
      access to a variety of high-quality housing options in Muskegon.
      STAFF RECOMMENDATION: To approve the purchase agreement for
      1530 Hoyt Street.
7.k   Sale of 1647 Terrace Street - City Manager's Office
      Staff is requesting approval of a purchase agreement for 1647 Terrace
      Street. 1647 Terrace Street was constructed through the agreement with
      Dave Dusendang to construct infill housing with ARPA funding. The offer
      is over the full listing price with $10,000 in seller concessions.
      STAFF RECOMMENDATION: To approve the purchase agreement for
      1647 Terrace Street.
7.o   Amendment to Parks & Recreation Advisory Committee Sec. 58-62 -
      City Clerk
      To amend Sec. 58-62 of the Parks & Recreation Advisory Committee to
      reflect two Representative At-Large positions for a total of twelve
      members. To further amend the ordinance to reflect that the member
      appointed by and from the Commission will serve as chair and be a non-
      voting member.


                                   5
      On Friday, October 22, 2023 the Community Relations Committee held a
      special meeting to discuss and make initial appointments to the recently
      established Parks & Recreation Advisory Committee. The Committee’s
      discussion led to the necessity to amend the ordinance to include two At-
      large members instead of one At-Large Member and to clarify that the
      member appointed by and from the Commission will serve as chair and be
      a non-voting member.
      STAFF RECOMMENDATION: To approve the amendment to Sec. 58-62
      of the Parks & Recreation Advisory Committee Ordinance.
7.p   Parks & Rec Advisory Committee - Member Representing Muskegon
      Public Schools
      To replace the appointment of the Member Representing Muskegon
      Public Schools made on 9/22/23 and affirmed on 10/10/23 and to appoint
      Lynnette Marks, President of the Muskegon Public School Board to this
      position. Muskegon Public School Administration provided feedback on
      the appointment to this position and would like to have the School Board
      President appointed to represent the School District on this board.
      STAFF RECOMMENDATION: To replace the previous appointment and
      to appoint Lynnette Marks as member representing Muskegon Public
      Schools on the Parks and Recreation Advisory Committee.
7.b   LIHWAP (Low Income Household Water Assistance Program)
      Agreement Extension - Treasurer
      Staff is requesting approval to extend our current contract with Mid
      Michigan Community Action Agency to participate in the Low Income
      Household Water Assistance Program.
      In December of 2021, we entered into a contract with Mid Michigan
      Community Action Agency (MMCAA) to participate in the Low Income
      Household Water Assistance Program (LIHWAP). The program consisted
      of funds made available by the State of Michigan, to be distributed to
      eligible low-income households, to pay water and sewer arrearages in
      order to avoid discontinuance of water service due to non-payment during
      the COVID emergency. Those funds were anticipated to be available
      through September 30, 2023; thus, the original contract ended on that
      date.
      It has been determined that there are still funds available, so MMCAA has
      provided us with a contract extension through 3/31/2024. Unfortunately,


                                   6
      we did not receive notice or a copy of this contract extension until
      9/28/2023, and it needed to be signed prior to 9/30/2023 in order to avoid
      a lapse in LIHWAP benefits for our residents. Due to the urgent need to
      protect this benefit for our residents, our Deputy City Manager has signed
      the contract, and we are bringing this item to the Commission today to get
      your approval for that extension.
      STAFF RECOMMENDATION: To approve the extension of our contract
      with Mid Michigan Community Action Agency in order to continue to
      receive funds through the Low Income Household Water Assistance
      Program through 3/31/2024.
      Action No. 2023-107(b)
      Motion by: Commissioner Ramsey
      Second by: Commissioner Gorman
      To approve the extension of our contract with Mid Michigan Community
      Action Agency in order to continue to receive funds through the Low
      Income Household Water Assistance Program through 3/31/2024.
      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.c   Final Approval of the Flock LPR Deployment - Public Safety
      Staff is requesting final approval for the purchase and deployment of the
      FLOCK license plate reader system.
      On May 8th. Chief Kozal and Capt. Bahorski presented to the commission
      during a work session. The request was to move forward with the
      implementation of a 10-camera FLOCK license plate reader system. That
      request was supported by the Commission and funding was added to the
      budget. The Public Safety Department is prepared to enter into a 2-year
      agreement with FLOCK to deploy the system.
      AMOUNT REQUESTED: $72,000
      FUND OR ACCOUNT: 101-301-977
      STAFF RECOMMENDATION: To approve the purchase and deployment
      of the Flock camera system.


                                    7
      Action No. 2023-107(c)
      Motion by: Commissioner Emory
      Second by: Vice Mayor German
      To approve the purchase and deployment of the Flock camera system.
      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.d   Samaritas Payment in Lieu of Taxes (PILOT Agreement) -
      Development Services
      City Staff has negotiated and reviewed a Payment in Lieu of Taxes
      agreement for commission consideration for an adaptive reuse project at
      Froebel School into affordable workforce housing apartments.
      For several years staff have been attempting to find a partner that had
      interest and capacity in the adaptive reuse of the long-vacant Froebel
      School building. Since 2019, we have toured more than 10 entities
      through the school, and held a community meeting offering several touring
      opportunities for the public. Through these efforts we have developed
      interest from Samaritas for the potential installation of affordable housing
      units by application to the Michigan Statewide Housing Development
      Authority (MSHDA) Low Income Housing Tax Credit (LIHTC) Program. If
      awarded, then Samaritas proposes historical preservation and adaptive
      remodel of the school building into apartments for low to moderate income
      residents. The attached agreement establishes their payment in lieu of
      taxes as 2% of net shelter rents. Note that this is the lowest proposed
      PILOT of our proposed MSHDA submissions. This is due to the facts
      that we are the owners of this facility and will incur significant costs
      to demolish or otherwise redevelop the site, and that Samaritas is a
      non-profit housing developer with limited capacity to finance and
      construct facilities compared with for-profit housing development
      firms.
      If approved by commission, Samaritas is also proposing a Municipal
      Services Agreement of 3% of net shelter rents, for a total annual payment
      of 5% of rents. The Municipal Services Agreement (MSA) stays
      completely with the city to defray costs of public service delivery to the


                                    8
      site, while the PILOT payment is divided proportionally to the other taxing
      jurisdictions, similar to a traditional property tax payment.
      This item is connected to the Samaritas MSA agenda item, as well as the
      sales agreement item for Froebel School.
      STAFF RECOMMENDATION: To approve the Contract for Housing
      Exemption with Samaritas Affordable Living Froebel Limited Dividend
      Housing Association Limited Partnership and authorize the mayor and
      clerk to sign.
      Action No. 2023-107(d)
      Motion by: Vice Mayor German
      Second by: Commissioner St.Clair
      To approve the Contract for Housing Exemption with Samaritas Affordable
      Living Froebel Limited Dividend Housing Association Limited Partnership
      and authorize the mayor and 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)


7.f   Spire Development, Allen Crossing PILOT Agreement - Development
      Services - 148 Allen Avenue
      City Staff has negotiated and reviewed a Payment in Lieu of Taxes and
      Municipal Services agreement for commission consideration for a new
      construction 45 unit Senior workforce/family affordable housing complex at
      and around 148 Allen Avenue.
      Pursuant to our 5 Year Housing Needs Assessments call for over 1,000
      rental units priced under $1,430 a month, staff has made overtures and
      established relationships with several new Low Income Housing Tax
      Credit (LIHTC) developers. Spire Development originally responded to our
      request for proposals at the former Catholic Charities site, and when they
      were not selected by commission for that project we immediately
      introduced them to the site owners of this subject property.
      Per their request letter, Spire is seeking a PILOT Agreement of 6% of net
      shelter rents. This should equal roughly $20,000-24,000 per year for all



                                    9
      taxing jurisdictions to split. Spire is also requesting a 3% Municipal
      Services Charge, which is detailed in another agenda item in the packet.
      STAFF RECOMMENDATION: To approve the Contract for Housing
      Exemption with Allen Crossing Limited Dividend Housing Association
      Limited Partnership and authorize the mayor and clerk to sign.
      Action No. 2023-107(f)
      Motion by: Vice Mayor German
      Second by: Commissioner Emory
      To approve the Contract for Housing Exemption with Allen Crossing
      Limited Dividend Housing Association Limited Partnership and authorize
      the mayor and 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)


7.l   Arena Solar Exemption Certificate Transfer - DPW
      Staff requests approval of the attached resolution, supporting the transfer
      of the PA 328 Exemption Certificate for the Arena Solar Project from New
      Energy Equity to Sunwealth LLC.
      In 2019 the Commission approved a Power Purchase Agreement (PPA)
      with New Energy Equity (NEE) to place solar on the arena roof. After the
      pause due to COVID restrictions, New Energy Equity was not interested in
      continuing the project, so a new agreement was secured with Sunwealth
      LLC and approved by this Commission earlier this year.
      As a part of the previous negotiation a Public Act 328 Personal Property
      Tax Exemption Certificate was obtained for the project, however it was
      issued with the system owner named as New Energy Equity. In order to
      allow the DDA (which would have received the taxes) to transfer the
      certificate into Sunwealth LLC’s name, the City must pass a resolution
      supporting the transfer.
      The attached resolution indicates the City’s support for the transfer, and
      will allow Sunwealth LLC to make formal application to the DDA for the


                                    10
      transfer. This is an important component of the financial benefits to the
      City, since the tax exemption is a part of the calculations that allow the
      City to pay a reduced rate for the solar energy compared to grid energy.
      STAFF RECOMMENDATION: To approve the resolution supporting the
      transfer of the PA 328 Exemption Certificate for the Arena Solar Project
      from New Energy Equity to Sunwealth LLC
      Action No. 2023-107(L)
      Motion by: Commissioner St.Clair
      Second by: Vice Mayor German
      To approve the resolution supporting the transfer of the PA 328 Exemption
      Certificate for the Arena Solar Project from New Energy Equity to
      Sunwealth LLC
      Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
      St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
      Emory
      Absent (1): Commissioner Ramsey
                                                       MOTION PASSES (6 to 0)


7.m   City Hall Seagull Control System - DPW (Building Maintenance)
      Staff requests approval to enter into a contract with Seagull Control
      Systems of City Island, NY for a post-and-wire seagull control system in
      the amount of $27,880.
      City Hall has become an annual nesting ground for seagulls, with
      detrimental effects to the building and surrounding area. The seagulls get
      very territorial during nesting season and have been known to dive at
      employees and visitors in an attempt to drive them away. Once hatched
      the young seagulls are a protected species, so the key is to prevent the
      nesting behavior in the first place.
      Staff solicited proposals and recommends Seagull Control Systems from
      City Island, New York based on their proposal being the lowest cost post-
      and-wire system. Great Lakes Nuisance Animal Control is a local option,
      however they did not respond to our request for a proposal and staff
      understands the post-and-wire system to be more effective for our issues
      than the netting system GLNAC would use.



                                    11
         1. Seagull Control Systems (City Island, NY): $27,880
         2. Aviaway Bird Control Systems (Wall Township, NJ): $36,500
      Portions of the City Hall roof are planned for replacement in FY24-25,
      however this system will be able to be reinstalled after that process with
      minimal new parts. The effort would be paid for with funds budgeted for
      the boiler replacement project, which had bids come in under budget.
      AMOUNT REQUESTED: $27,800
      FUND OR ACCOUNT: 445 (Public Improvement)
      STAFF RECOMMENDATION: To authorize staff to enter into a contract
      with Seagull Control Systems of City Island, NY for a post-and-wire
      seagull control system in the amount of $27,880.
      Action No. 2023-107(m)
      Motion by: Commissioner Emory
      Second by: Commissioner St.Clair
      To authorize staff to enter into a contract with Seagull Control Systems of
      City Island, NY for a post-and-wire seagull control system in the amount of
      $27,880.
      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.n   Fireworks Agreement - Parks & Recreation
      Staff is requesting authorization to enter into an agreement with
      Pyrotecnico Fireworks for $40,000 for the annual fireworks show in
      downtown Muskegon, and approval of the fireworks display permit for
      Pyrotecnico contingent upon inspection of the fireworks and approval of
      the insurance.
      The annual Fireworks contract of $40,000 will be scheduled for July 4th,
      2024. The agreement is of the standard form with Pyrotecnico that the
      City has entered into for the past several years.
      AMOUNT REQUESTED: $40,000
      FUND OR ACCOUNT: 101 (General)

                                    12
           STAFF RECOMMENDATION: To authorize staff to enter into an
           agreement with Pyrotecnico Fireworks for $40,000 for the annual fireworks
           show in downtown Muskegon, and approval of the fireworks display permit
           for Pyrotecnico contingent upon inspection of the fireworks and approval
           of the insurance.
           Action No. 2023-107(n)
           Motion by: Commissioner Ramsey
           Second by: Commissioner St.Clair
           To authorize staff to enter into an agreement with Pyrotecnico Fireworks
           for $40,000 for the annual fireworks show in downtown Muskegon, and
           approval of the fireworks display permit for Pyrotecnico contingent upon
           inspection of the fireworks and approval of the insurance.
           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   Establishment of an Industrial Development District - Beacon
           Recycling, 1241 East Keating - Economic Development
           Beacon Recycling has requested the establishment of an Industrial
           Development District at 1241 East Keating in order to further their
           expansion plans in the City of Muskegon.
           On September 8, 2023, city staff received a letter from Beacon Recycling
           to request the establishment of an Industrial Development District. Beacon
           is pursuing an expansion project that will involve the purchase of a new
           shredder machine to support its existing metal recycling business and the
           creation of a new materials services division to support the re-use of
           certain metals. This project has a total capitol investment of $17,500,000
           and the creation of up to 36 new jobs. If the district is passed, Beacon will
           seek a PA 198 tax abatement to support its development in the City of
           Muskegon.
           STAFF RECOMMENDATION: To approve the resolution establishing an
           Industrial Development District at 1241 East Keating and authorize the
           City Mayor and Clerk to sign.


                                         13
      Development Analyst Contessa Alexander provided an overview of the
      request from Beacon Recycling.
      PUBLIC HEARING COMMENCED: No Public Comments were received.
      Action No. 2023-108(a)
      Motion by: Commissioner Ramsey
      Second by: Commissioner St.Clair
      To approve the resolution establishing an Industrial Development District
      at 1241 East Keating and authorize the City Mayor and 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)


8.b   Lakeside BID Special Assessment Tax Roll Approval - Economic
      Development
      A public hearing has been scheduled to receive comment on a proposed
      Lakeside Business Improvement District special assessment roll for 2024-
      2026.
      The Muskegon City Commission approved a three-year renewal of the
      Lakeside BID at its September 12, 2023 meeting, including the district and
      special assessment rate. The special assessment roll includes 41 parcels
      and annually would generate $22,457.44 for the BID at a 20% reduction
      than the previous 3 years. There were no parcels that have objected to
      this renewal. The three-year BID budget would focus downtown work on
      seasonal landscaping, winter sidewalk snow removal, holiday decorations
      and marketing and events. The City Commission created a Board of
      Assessors that includes Commissioners Teresa Emory and Michael
      Ramsey, who will certify the special assessment roll. After hearing public
      comment, the attached resolution would confirm the BID’s special
      assessment roll for three years.
      STAFF RECOMMENDATION: To close the public hearing and approve
      the resolution to confirm the Lakeside Business Improvement District
      special assessment roll for the winter tax bills for 2024-2026 and authorize
      the Mayor and Clerk sign.



                                   14
             Development Analyst Contessa Alexander provided an overview of the
             request to confirm the special assessment.
             PUBLIC HEARING COMMENCED:
             A letter was distributed to commission from Mr. Edward Bodman, 1603
             Nelson Street - opposed to Short Term Rental Business being included in
             being assessed as a business in the Lakeside BID District.
             Mark Flermoen, Chair of the Lakeside BID District spoke about the
             benefits to the business of being a part of the Lakeside Business
             Improvement District.
             Action No. 2023-108(b)
             Motion by: Commissioner Ramsey
             Second by: Commissioner St.Clair
             To close the public hearing and approve the resolution to confirm the
             Lakeside Business Improvement District special assessment roll for the
             winter tax bills for 2024-2026 and authorize the Mayor and Clerk 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   City ARPA Community Grant - Pioneer Resources, Inc. - Manager's
             Office
             * A Conflict of Interest Letter was signed by Commissioner Rachel
             Gorman related to this item. The Conflict of Interest statement was posted
             to the City's website and City's Facebook page on August 10, 2023.
             https://muskegon-mi.gov/notice-of-conflict-of-interest/
             To approve the City ARPA Community Grant proposal received from
             Pioneer Resources, Inc.
             As part of the City’s ARPA Community Grant program, a proposal from
             Pioneer Resources, Inc. was received and included within the initial slate
             of 22 projects recommended for approval by the Commission. It was

                                           15
     tentatively removed from the formal motion by the Commission at the
     August 7th Regular Meeting pending completion of conflict of interest
     documentation.
     Current City Commissioner Rachel Gorman is a former employee of
     Pioneer Resources, Inc. Ms. Gorman was not involved in Pioneer's
     decision to apply, involved in discussions with either City staff or Pioneer
     staff concerning this project or involved in the discussion or decision by
     the City Commission concerning Pioneer's grant proposal.
     Staff has sent notice to the U.S. Department of Treasury that the city has
     followed the requirements for a waiver of the conflict of interest pursuant
     to the City Charter and state law. We are requesting their concurrence
     with the City’s decision and waive any conflict.
     STAFF RECOMMENDATION: To approve the City ARPA Community
     Grant proposal received from Pioneer Resources, Inc., subject to
     receiving acknowledgement from the U.S. Department of Treasury that
     they concur with the City’s decision and waive any conflict.
     Action No. 2023-109(a)
     Motion by: Commissioner Ramsey
     Second by: Commissioner St.Clair
     To approve the City ARPA Community Grant proposal received from
     Pioneer Resources, Inc., subject to receiving acknowledgement from the
     U.S. Department of Treasury that they concur with the City’s decision and
     waive any conflict.
     Ayes: (5): Mayor Johnson, Commissioner St.Clair, Commissioner Hood,
     Commissioner Ramsey, and Commissioner Emory
     Nays: (1): Vice Mayor German
     Conflict (1): Commissioner Gorman
                                                         MOTION FAILS (5 to 1)


10.b PRO Housing Grant Leverage Funds - Economic Development/CNS
     The Development Services Division is seeking a firm commitment of $2
     million in Public Improvement funds to be used a match/leverage for the
     Pathways to Removing Obstacles to Housing (PRO Housing) Grant. The
     City is seeking $10 million in grant funds through this program that is a


                                   16
unique extension of the Community Development Block Grant (CDBG)
program from the US Department of Housing and Urban Development.
The Pro Housing Grant is intended to identify and remove obstacles to the
production and preservation of affordable housing such as: gaps in
resources available for development, deteriorating infrastructure,
challenges to preserving existing housing stock, and many more. The City
is requesting $10 million for the following eligible activities that will benefit
only those residents at or below 80% of area median income:

   •   $3.5 million to establish a Housing Preservation Fund
       o $1.5 million for rental rehabilitation
       o $2 million for owner-occupied housing

   •   $6 million to finance the construction or rehabilitation of
       affordable housing
       o $1 million for acquisition/rehabilitation/resale projects and
         nonprofit capacity building
       o $5 million for construction of new units

   •   $500,000 for homebuyer down payment assistance
Committed leverage funds would allow the application to have an
additional 4 points awarded when being considered and ranked for this
opportunity. It will serve as proof of the city’s investment in affordable
housing and maximize the use of the grant funds.
AMOUNT REQUESTED: $2 million commitment of public improvement
funds
FUND OR ACCOUNT: Public Improvement
STAFF RECOMMENDATION: To approve the commitment of $2 million in
Public Improvement funds as leverage for the PRO Housing Grant.
Action No. 2023-109(b)
Motion by: Commissioner Ramsey
Second by: Commissioner Hood
To approve the commitment of $2 million in Public Improvement funds as
leverage for the PRO Housing Grant.




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             Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
             Ramsey, and Commissioner Emory
                                                          MOTION PASSES (7 to 0)


      10.c   Parks & Rec Advisory Committee - Chair Appointment
             Pursuant to the Parks & Recreation Advisory Committee Ordinance the
             composition of the board shall include one member of the City
             Commission to be selected by and from the City Commission that will
             serve as board chair and be a non-voting member.
             STAFF RECOMMENDATION: To appoint a member of the City
             Commission to serve on the Parks & Recreation Advisory Committee as
             chair to the committee, as a non-voting member.
             Action No. 2023-109(c)
             Motion by: Commissioner St.Clair
             Second by: Commissioner Emory
             To appoint, Mayor Ken Johnson, a member of the City Commission to
             serve on the Parks & Recreation Advisory Committee as chair to the
             committee, as a non-voting member, term expiring January 31, 2025.
             Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
             Ramsey, and Commissioner Emory
                                                          MOTION PASSES (7 to 0)


11.   Any Other Business
      Remarks were made by Commissioners Ramsey and St. Clair, Vice Mayor
      German, and Mayor Johnson. There was some discussion regarding liens placed
      on CDBG funded home repairs.
12.   Public Comment on Non-Agenda items
      Public comments were received.
13.   Closed Session
      13.a   City Manager's Evaluation



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            Action No. 2023-110(a)
            Motion by: Commissioner St.Clair
            Second by: Commissioner Ramsey
            To go into closed session to review the city managers evaluation.
            Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
            St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
            Ramsey, and Commissioner Emory
                                                           MOTION PASSES (7 to 0)


            Amendment:
            Motion by: Commissioner St.Clair
            Second by: Commissioner Ramsey
            To come out of closed session and adjourn.
                                                                   MOTION PASSES


14.   Adjournment
      The City Commission meeting adjourned at 9:00 p.m.



                                                       _________________________
                                                              Respectfully Submitted,
                                                 Ann Marie Meisch, MMC - City Clerk




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