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CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
Monday, January 11, 2016
5:30 p.m.
City Commission Chambers
AGENDA
1. 285 West Western Update
2. B.I.D.
3. LED sign at Farmer’s Market
4. Any Other Business
5. Adjournment
CRC will meet immediately following the Worksession meeting.
AGENDA ITEM NO. ______________
CITY COMMISSION MEETING ________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: January 12, 2016
RE: 285 West Western Preconstruction Expenses
SUMMARY OF REQUEST:
As part of the potential redevelopment of 285 West Western Ave, the City of Muskegon will be
required to submit a new/updated application to the Michigan Economic Development
Corporation. To accomplish this, a number of items need to be completed, including updated
architectural drawings, updated cost estimates, and updated project proformas. Further, there
are a number of safety and security improvements needed at the vacant building, including
boarding broken windows and addressing roof drainage issues. City staff is requesting
permission to expend up to $45,000 in pre-construction expenses at 285 West Western to
prepare the MEDC application, bid the project, and address a number of pressing security and
safety items.
FINANCIAL IMPACT:
Up to $45,000
BUDGET ACTION REQUIRED:
This change will be reflected in the Second Quarter Budget Status Report.
STAFF RECOMMENDATION:
To authorize staff to expend up to $45,000 in pre-construction expenses related to the
redevelopment of 285 West Western.
COMMITTEE
RECOMMENDATION: None.
Commission Meeting Date: January 12, 2016
Date: December 16, 2015
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: BID Special Assessment- Resolution Confirming
Special Assessment Roll
SUMMARY OF REQUEST: The City Commission approved the creation of a BID
special assessment district at the November 24, 2015 meeting and the Special
Assessment Roll is now ready to be confirmed. The assessments will go towards
various downtown expenditures, including snow removal on sidewalks, spring/fall
cleanup and landscaping, holiday decorating, banners & directional signs,
marketing/advertising and art. The BID assessment includes both a “Class A” and a
“Class B” district (see attached list). Since the November 24 Commission meeting,
the maximum amount to be assessed for Class B properties is $750, rather than the
$3,000 that is the maximum assessed for Class A properties.
FINANCIAL IMPACT: The total estimated cost of services within the BID is
$128,467.36 of which approximately 90% ($115,942.02) will be paid by the special
assessment to property owners, with the remaining cost being paid by the City.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached resolution approving the
confirmation of the special assessment roll and authorize the Mayor and Clerk to
sign.
CITY OF MUSKEGON
Resolution No. ______
Resolution Confirming Special Assessment Roll
For DOWNTOWN MUSKEGON BUSINESS IMPROVEMENT DISTRICT (BID)
Properties Assessed: See Exhibit A attached to this resolution
RECITALS:
1. The City Commission determined to create a special assessment district covering the
properties set forth in Exhibit A attached to this resolution on November 24, 2015, at the
first hearing.
2. The City has reviewed the special assessment roll which purports to levy a special
assessment in the said district levying on “Class A” Properties, as defined in the BID
Bylaws, shall be assessed an annual assessment of $0.08/sf with no assessment to exceed
$3,000 and “Class B” Properties, as defined in the BID Bylaws, shall be assessed an
annual assessment of $0.02/sf with no assessment to exceed $750.
3. The City Commission has heard all objections to the roll filed before or at the hearing.
THEREFORE, BE IT RESOLVED:
1. That the special assessment roll submitted by the Board of Assessors is hereby approved.
2. That the assessments levied will be billed in January 2016 and those assessments not paid
by October 2016 will be placed on the Winter 2016 tax bill.
3. The Clerk is directed to endorse the certificate of this confirmation resolution and the
Mayor may endorse or attach his warrant bearing the date of this resolution which is
the date of confirmation.
This resolution adopted.
Ayes ___________________________________________________________________
______________________________________________________________________________
Nays ___________________________________________________________________
______________________________________________________________________________
CITY OF MUSKEGON
By _________________________________
Ann Marie Meisch, Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on January 12,
2016. The meeting was properly held and noticed pursuant to the Open Meetings Act of the
State of Michigan, Act 267 of the Public acts of 1976.
Further I hereby certify that the special assessment roll referred to in the above resolution
was confirmed on the date being January 16, 2016.
CITY OF MUSKEGON
By _________________________________
Ann Marie Meisch, Clerk
Exhibit A
Properties Assessed
PROMISSORY NOTE
$45,000 Muskegon, Michigan
_____________, 2016
FOR VALUE RECEIVED, the undersigned (the “Maker”) promises to pay to the order of
City of Muskegon (the “Holder”), at 933 Terrace Street, Muskegon, Michigan 49443, or at such
other place as directed in writing by the Holder, the principal sum of Forty Five Thousand Dollars
($45,000), together without interest, except that interest shall accrue from the date of this
Promissory Note if payment is not made as provided below at the rate of three percent (3%) per
annum on the unpaid principal balance remaining due from time to time. No provision of this
Note shall require or be construed to require a payment or permit or be construed to permit the
collection of interest in violation of law. If any excessive interest in violation of law is adjudicated
to be provided herein, the provisions of this paragraph shall govern and the Maker shall not be
obligated to pay the amount of such interest to the extent that it is in violation of the law. Instead,
interest shall be the maximum allowed by law and this Note shall be deemed to be automatically
modified in accordance with the terms of this paragraph. If it is adjudicated that any fee or other
charge provided for herein are interest, it is agreed that to the extent of such adjudication, such
interest shall be considered as interest for the life of the Note, commencing on the date of the Note
and extending to the due date of the Note or any extension of such due date.
This Note shall be payable as follows: $15,000 on June 30, 2016, $15,000 on January 30,
2017 and $15,000 on June 30, 2017, provided, however, that the entire balance of principal and
interest shall be payable on or before June 30, 2017.
The Maker may prepay without penalty all or any portion of the principal at any time. Any
prepayment shall not eliminate the obligation of the Maker to pay all subsequent installments on
their normal due dates. All payments of any nature shall be applied first to accrued interest and
the balance to principal.
This Note is given in conjunction with the establishment of the Business Improvement
District, an entity of the City of Muskegon and in anticipation of monies being received through a
special assessment being levied by the City of Muskegon. The loan will allow the Business
Improvement District to begin providing services prior to receipt of monies from property owners
in the Business Improvement District.
Upon any default for a failure to make any payment when due, the Holder shall provide
fifteen (15) days’ written notice to the Maker of such default. If any such default remains uncured
at the end of such notice period following receipt of such written notice by the Maker as described
above, the Holder may declare the entire remaining balance of principal and interest to be
immediately due and payable. No delay by the Holder in exercising any right hereunder shall be
considered a waiver of such right.
O:\CLERK\COMMON\WORD\AGENDA ITEMS FOR NEXT MEETING\2016\011216\14D_KB7029-CITY LOAN TO BID -
PROMISSORY.DOCX
The Maker and every endorser or guarantor hereunder (i) waive protest, presentment,
demand for payment and notice of dishonor; (ii) agree that any extension of the time for any
payment, reduction of any payments, acceptance by the Holder of a renewal note, or release or
nonenforcement of any security, whether with or without notice, shall not release or off-set the
obligations of the Maker or any guarantor or endorser.
In the event either party exercises its rights, remedies, or defenses hereunder in order to
collect or attempt to collect the principal and interest due under this Note or to enforce its rights
under any provision of this Note, or to defend against such an action, the non-prevailing party shall
pay to the prevailing party on demand all reasonable expenses, including attorney fees and legal
expenses, paid or incurred by the prevailing party with regard to such action.
CITY OF MUSKEGON BUSINESS
IMPROVEMENT DISTRICT
By:_______________________________________
Its:_______________________________________
-2-
Date: January 12, 2016
To: Honorable Mayor and City Commissioners
From: Engineering
RE: LED Sign @ the Farmers Market
SUMMARY OF REQUEST:
Authorize staff to enter into an agreement with Allsigns LLC out of Muskegon to
purchase & install an LED digital sign at the farmers Market using a 16mm lighting
system to enhance visibility for a cost of $29,550.00.
Allsigns is being recommended as a result of the attached bid tabulation.
FINANCIAL IMPACT:
Cost of purchase & installation of $29,550.
BUDGET ACTION REQUIRED:
None at this time, however, future budget reforecasts might have to be revised to
account for this expense.
STAFF RECOMMENDATION:
Authorize staff to enter into an agreement with Allsigns LLC.
COMMITTEE RECOMMENDATION: