City Commission Minutes 06-11-2024

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
              June 11, 2024 @ 5:30 PM
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
                                MINUTES

CALL TO ORDER
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, June 11, 2024.
Pastor E. J. Wood, from All Shores Wesleyan Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.

ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners
Willie German, Jr., Rachel Gorman, Katrina Kochin, Jay Kilgo, and Destinee
Keener, City Manager Jonathan Seyferth, City Attorney John Schrier, and City
Clerk Ann Marie Meisch.

2024-53 HONORS, AWARDS, AND PRESENTATIONS

   A. ILA-Inclusive Leadership Academy Recognition Employee Relations
Dwana Thompson introduced the participants from the 2024 ILA Inclusive
Leadership Academy Class. Commission thanked the participants for finding
ways to serve our community.

PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.

2024-54 CONSENT AGENDA

   A. Approval of Minutes City Clerk
To approve minutes of the May 28, 2024, City Commission Meeting.



                                 Page 1 of 8
STAFF RECOMMENDATION: To approve the minutes.

    B. Sale of 1095 Third Street - ITEM REMOVED PER STAFF REQUEST Economic
       Development
    D. Sale of 892 Orchard Planning
Staff is seeking authorization to sell the City-owned vacant lot at 892 Orchard to
Mark Payne. Mark Payne would like to purchase the City-owned buildable lot at
892 Orchard for $3,000 (75% of the True Cash Value of $4,000) plus half of the
closing costs and the fee to register the deed. The buyer will be constructing
one single-family home on the property.
STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the
sale of 892 Orchard, as described in the purchase agreement, and to have the
Mayor and Clerk sign both the purchase agreement and the deed.

    I.   Contract for Planning/Architectural Services with SEH Planning
The Development Services Division will be contracting with a consulting firm to
create a Corridor Improvement Plan for Apple Ave. Staff issued a Request for
Proposal (RFP) for the project and received four responses. SEH provided the
lowest bid and they are a local firm that located their offices on Webster Ave in
2023.
STAFF RECOMMENDATION: To approve the contract with SEH.

    L. Gaming License Request from HUG MKG (Help Us Give Muskegon) City
       Clerk
HUG MKG is requesting a resolution recognizing them as a non-profit
organization operating in the City for the purpose of obtaining a Gaming
License. They have been recognized as a 501(c)(3) organization by the State.
STAFF RECOMMENDATION: To approve the resolution.

    M. Complete Streets Policy Manager's Office
Staff requests approval of a new Complete Streets Policy. Staff from the
Planning, Public Works, and Engineering Departments have developed a
Complete Streets Policy in an effort to further our goal to improve quality of life
and economic vitality for our residents, workers, and visitors. The Complete
Streets Policy will enhance mobility, improve safety, expand transportation
access/choice, and build a healthy community. Benefits include reducing
vehicle miles traveled and increasing transportation by walking, bicycling, and
public transportation which help address a wide variety of challenges including
pollution, climate change, traffic congestion, social isolation, obesity, and
physical inactivity.



                                   Page 2 of 8
STAFF RECOMMENDATION: To approve the Complete Streets Policy.

Motion by Commissioner German, second by Vice Mayor St.Clair, to approve
the Consent Agenda minus items C, E, F, G, H, J, and K.
ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and
           Kilgo
           Nays: None
MOTION PASSES
2024-55 ITEMS REMOVED FROM THE CONSENT AGENDA

    C. Rezoning of Properties on Beach St, Indiana Ave, Ohio Ave, Simpson
       Ave, and Nelson St from R-1 to R-2. (SECOND READING) Planning
Staff initiated request to rezone the following properties from R-1, Low Density
Single-Family Residential to R-2, Medium Density Single Family Residential: 1510,
1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616,
1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach
Street; 3660 Indiana Avenue; 1360,1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516,
1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600,
1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666,
1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691
Simpson Avenue. Staff has received several calls over the past year from
property owners in this area that had some concerns about their R-1 zoning
designation. Many properties within this focus area are considered “legally non-
conforming” because their lots do not meet the minimum lot size requirements
(minimum of 50 feet of street frontage and 6,000 sf total). Some property owners
were having difficulties with financing options since they would not be able to
rebuild after a disaster without a variance from the Zoning Board of Appeals. A
couple property owners were inquiring about splitting their large lots, only to find
that they were just short on the amount of land needed for two lots.
This would not allow more housing types (duplexes, etc), it only modifies the size
of a buildable lot. A focus group was held in March with the property owners.
The Planning Commission unanimously recommended approval of the rezoning
at their May meeting.
STAFF RECOMMENDATION: To approve the rezonings as listed in the packet.

Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the
rezonings as listed in the packet.
ROLL VOTE: Ayes: Keener, Gorman, St.Clair, and Johnson
           Nays: Kilgo, German, and Kochin
MOTION PASSES


                                   Page 3 of 8
    E. Road Construction Contract Award to Anlaan for New and Second
       Streets DPW- Engineering
Staff is requesting authorization to approve a contract with Anlaan Corporation
in the amount of $1,145,853.25 for road reconstruction work on New Street;
Evanston to Calvin; and 2nd Street; Houston to Muskegon. Bids were solicited for
a construction project to reconstruct New Street; Evanston to Calvin; and 2nd;
Houston to Muskegon. Anlaan Corp provided the low bid. Bids came in under
budget. Project is budgeted for in FY24-25.
STAFF RECOMMENDATION: Move to authorize staff to enter into a contract with
Anlaan Corporation for the amount of $1,145,853.25 for the reconstruction of
New Street and 2nd Street according to the construction plans and approve
change orders up to 10 percent of the contract award.

Motion by Commissioner Gorman, second by Vice Mayor St.Clair to authorize
staff to enter into a contract with Anlaan Corporation for the amount of
$1,145,853.25 for the reconstruction of New Street and 2nd Street according to
the construction plans and approve change orders up to 10 percent of the
contract award.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and
           St.Clair
           Nays: None
MOTION PASSES
    F. Annual Action Plan Budget 2024 Community & Neighborhood Services
The budgets for both CDBG and HOME funds are for your review and consent.
The Annual Action Plan Budgets are presented to the Commission for approval
based on the Department of Housing and Urban Development (HUD)
appropriations for FY2024. The Community Planning and Development (CPD)
office-funded programs are Community Development Block Grant (CDBG) and
HOME investment Partnerships (HOME) and the allocations total $1,136,877.00
for eligible programs administered by the office of Community and
Neighborhood Services.
STAFF RECOMMENDATION: To approve the 2024 Annual Action Plan Budgets for
CDBG and HOME Programs.

Motion by Commissioner Keener, second by Commissioner Kochin, to approve
the 2024 Annual Action Plan Budgets for CDBG and HOME Programs.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, Gorman, and Kochin
           Nays: German
MOTION PASSES



                                  Page 4 of 8
    G. Contract for Mediation & Restorative Services Planning
Over the past 13 months, the City has been contracting with Mediation &
Restorative Services for youth counseling on underage vaping and cannabis
consumption. The program is paid for with funding from the Muskegon Social
Equity Program. The current contract expires at the end of June and the
organization is requesting $40,000 for an additional 12 months. The previous
contract was for $47,000 over 13 months.
STAFF RECOMMENDATION: To approve the contract with Mediation &
Restorative Services.

Motion by Vice Mayor St.Clair, second by Commissioner German, to approve
the contract with Mediation & Restorative Services.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
           Gorman
           Nays: None
MOTION PASSES
    H. Contract for Expungement Clinics with G.U.N.S. Planning
The City partnered with G.U.N.S last year to hold a series of expungement
clinics. These clinics were well attended and staff wishes to partner with them
again for an additional three clinics over the next year. The organization is
requesting increased funding this year to cover the costs of follow-up services,
surveys and for staff compensation (last year volunteers spent hours pulling
iChats, making folders, registering people, making phone calls, and other
monitoring duties associated with expungement clinics and wrap around
services). These clinics are funded by the Muskegon Social Equity Program.
STAFF RECOMMENDATION: To approve contract with G.U.N.S.

Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to approve the
contract with G.U.N.S.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and
           German
           Nays: None
MOTION PASSES
    J. Termination of Existing Purchase Agreement & Revised Agreement for the
       Sale of Lots to EB2 Development Limited Liability Company (Green Rabbit
       Home Builders) Planning
Staff is seeking the termination of the PA for Green Rabbit Home Builders to
purchase City-owned vacant lots at 553, 558, 579, 601, 608, & 621 Jackson and
505 Alva, approved 5/28/24 due to clerical errors. Staff is also seeking



                                   Page 5 of 8
authorization to sell the same City-owned vacant lots to EB2 Development
Limited Liability Company d/b/a Green Rabbit Home Builders. The Purchase
Agreement, approved by Commission on 5/28/24, contained errors and
omissions in Exhibit A about the eventual combination and split of these lots.
Also, Green Rabbit Home Builders must be listed as EB2 Development Limited
Liability Company d/b/a Green Rabbit Home Builders. This Purchase Agreement
has been re-submitted with corrections made.
STAFF RECOMMENDATION: Rescind the authority for the Mayor and Clerk to sign
the May 28, 2024, Purchase and Development Agreement and authorization for
the Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621
Jackson and 505 Alva and now authorize the Code Coordinator to complete
the sale of 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva, as described in
the revised purchase agreement, and to have the Mayor and Clerk sign both
the purchase agreement and the deed.

Motion by Commissioner German, second by Vice Mayor St.Clair, to Rescind
the authority for the Mayor and Clerk to sign the May 28, 2024, Purchase and
Development Agreement and authorization for the Code Coordinator to
complete the sale of 553, 558, 579, 601, 608, & 621 Jackson and 505 Alva and
now authorize the Code Coordinator to complete the sale of 553, 558, 579, 601,
608, & 621 Jackson and 505 Alva, as described in the revised purchase
agreement, and to have the Mayor and Clerk sign both the purchase
agreement and the deed.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and
           Keener
           Nays: None
MOTION PASSES
    K. Sales Agreement for Nelson House Planning
Staff is submitting the formal Purchase Agreement for the previously approved
project to relocate the Nelson House. The Muskegon Public Schools Board
considered this sales agreement to formally convey the house to the City at
their June 4th regular meeting. The target date to move the house to the city-
owned lot at 382 West Muskegon Avenue is July 9th, with a rain date of July
10th.
STAFF RECOMMENDATION: Motion to approve the Purchase Agreement as
presented and to authorize the Mayor and Clerk to sign.

Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve
the Purchase Agreement as presented and to authorize the Mayor and Clerk to
sign.
ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and


                                  Page 6 of 8
             Kilgo
             Nays: None
MOTION PASSES
2024-56 PUBLIC HEARINGS

    A. Request for an Industrial Facilities Exemption Certificate - Forming
       Technologies, LLC - 2675 Olthoff Drive Economic Development
Forming Technologies, LLC has requested an Industrial Facilities Tax Exemption
Certificate. The company will be making an investment of $16,000,000 in real
property improvements and plans on creating up to 72 jobs over four years as
part of the overall project, qualifying them for a 12-year abatement. Forming
Technologies, LLC (Form Tech) is a manufacturing facility, founded in November
2004, providing customized pallets, lids, and shipping products using a
thermoforming process.

In partnership with Bluewater Industrial Development, LLC, Form Tech will begin
construction of a new facility starting September 2024. The new 195,000 sq. ft
building will house the plastic extrusion and thermoforming business and its
associated offices. The total real property investment is $16,000,000. This project
will create 72 more jobs over the next four years.

Staff Comments:
There is an established Industrial Development District on this site since 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 29, 2024, 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 company has
turned in all the necessary documents.
STAFF RECOMMENDATION: I move 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 Forming Technologies, LLC and to authorize the Mayor
and Clerk to sign.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard in favor of the exemption from Marla Schneider,
President CEO, Greater Muskegon Economic Development.

Motion by Commissioner Keener, second by Commissioner Kilgo, 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 Forming



                                    Page 7 of 8
Technologies, LLC and to authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and
           Johnson
           Nays: None
MOTION PASSES
    B. Transmittal of the 2024-25 Proposed Budget Finance
At this time, staff is transmitting to the City Commission the proposed budget for
fiscal year 2024-25 which starts July 1, 2024. 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 May
23, 2024, Worksession. A public hearing on the budget was held at the regular
Commission meeting on June 11, 2024. City ordinance requires that the budget
be adopted by the Commission on or before the second Commission meeting
in June.
STAFF RECOMMENDATION: To approve the proposed budget for the 2024-25
fiscal year.
The Public Hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner Kilgo, second by Commissioner Keener, to close the
Public Hearing and approve the proposed budget for the 2024-25 fiscal year.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and
           Kochin
           Nays: None
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.

ADJOURNMENT
The City Commission meeting adjourned at 8:23 p.m.


                                       Respectfully Submitted,



                                       Ann Marie Meisch, MMC City Clerk




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