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CITY OF MUSKEGON
CITY COMMISSION MEETING
May 14, 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 PM, Tuesday, May 14, 2024.
Pastor Michael McGee from Spring Street Missionary Baptist 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, Jay Kilgo, Destinee Keener, and Katrina
Kochin (arrived at 5:45 p.m.), City Manager Jonathan Seyferth, City Attorney
John Schrier, and City Clerk Ann Marie Meisch.
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-43 CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve the minutes of the April 23, 2024, Special Commission Worksession
and the Regular Commission Meeting; and the April 30, 2024, Special
Commission Meeting.
STAFF RECOMMENDATION: To approve the minutes.
C. Updated Allocation Resolution to PM Restroom MNRTF Grant DPW- Parks
Staff requests adoption of the resolution regarding the Pere Marquette South
Restroom project and associated Michigan Natural Resources Trust Fund grant,
correcting the City's commitment from $300,000 to $400,000 as noted in the
approved grant agreement.
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On September 29, 2023, the DPW department brought a grant agreement and
resolution for approval to the commission meeting. During this meeting, the
commission voted to approve a grant agreement that included $400k in City
funds, with the DNR covering the additional $300k under the grant. The
resolution in the packet misstated that the City would contribute $300,000 in
match; this is a necessary clerical update to the resolution document correcting
the City's commitment to $400,000. This grant will provide us with an additional
bathroom, establish a plaza, and provide well-needed updates to the existing
Kite Shack building. It is noted that a budget amendment is not needed
because this will be moved to fiscal year 2024-25.
STAFF RECOMMENDATION: To adopt the resolution regarding the Pere
Marquette South Restroom project and associated Michigan Natural Resources
Trust Fund grant, correcting the City's commitment from $300,000 to $400,000 as
noted in the approved grant agreement.
E. Legal Representation for Tax Appeals for Property Tax Classification for
Marihuana Operations Finance
The City of Muskegon is requesting to spend an additional $10,000.00 for legal
fees with Hallahan & Associates, P.C. for Marihuana tax appeals at the State Tax
Commission and Michigan Tax Tribunal.
Parmenter Law which normally represents the City of Muskegon, recommends
that we use this law firm because of their expertise in these types of tax appeals.
This Law Firm has been hired by other municipalities across the State to
represent them for this unique property tax classification appeal. We thought it
would be in our best interest to use this law firm because they are familiar with
tax appeals from the Marihuana businesses.
Fees for service will be calculated at hourly rate of $215 for attorneys and an
hourly rate of $100 for law clerks and assistants. Previously, the Commission
capped our expenses at $10,000.00. I am requesting another $10,000.
STAFF RECOMMENDATION: Authorize the Finance Director to spend an
additional $10,000 with Hallahan & Associates, P.C. for Marihuana tax appeals
F. Equipment Purchase - Fleet Vehicle DPW- Equipment & Sanitation
Staff is requesting approval to purchase a Chevrolet Equinox fleet vehicle from
Berger Chevrolet under the MiDEAL contract. This vehicle will be a replacement
of an existing fleet vehicle, and the purchase is included in the Equipment Fund
budget for this fiscal year.
STAFF RECOMMENDATION: Authorize staff to proceed with the purchase of a
Chevrolet Equinox from Berger Chevrolet.
H. Amendment to the Zoning Ordinance - Outdoor Seating (SECOND
READING) Planning
Staff initiated request to amend Sections 2003.04 and 2308 of the zoning
ordinance to modify the regulations on outdoor seating. The Planning
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Commission unanimously recommended approval of the ordinance
amendment.
STAFF RECOMMENDATION: To approve the request to amend Sections 2003.04
and 2308 of the zoning ordinance to modify the regulations on outdoor seating
as proposed.
J. ATM for Muskegon Farmers Market City Clerk
Staff sought out RFP's for an ATM at the Muskegon Farmers Market and is
recommending Consumers Credit Union. Our current agreement with 5/3 Bank
is set to expire in June of this year. We received two responses. They were from
Baumtech out of Louisiana. They would charge $3.99 per transaction and give
the Farmers Market $1.00 for up to 500 transactions, $1.50 for up to 1000
transactions, and $2 for any transactions over 1001.
Consumers Credit Union was the second bidder. They have locations in the
Muskegon area and offer virtual services speaking to a live person. They have
been a sponsor of the Farmers Market on at least three occasions. They have
offered a staff member at the market during peak times to assist people to use
the ATM. They offer to host financial wellness education-themed days such as
"shopping on a Budget", "Buying your First Home", etc. They are committed to
holding drawings to their customers to give-away $50 Farmers Market gift
certificates.
STAFF RECOMMENDATION: Staff be authorized to sign an agreement with
Consumers Credit Union to place an ATM at the Muskegon Farmers Market.
K. Concur with CRC Recommendations to Accept Resignations and Make
Appointments City Clerk
To concur with the Community Relations Committee recommendations to
accept resignations and make appointments to various boards.
CRC recommendation to City Commission to accept resignations of:
Parks and Recreation Advisory Committee
Jequan Brown - Resident of Ward 2 - term expiring 01/31/2026
Anthony Olshansky - Resident of Ward 2 - term expiring 01/31/2027
Equal Opportunity Committee
Tonya Pell - Citizen At-Large - term expiring 01/31/2025
Lakeside Business Improvement District
Kathy Fearnley - Owner or Representative - term expiring 1/31/2026
CRC recommendation to City Commission to appoint/reappoint:
Citizen's Police Review Board
Deborah Sweet - Neighborhood Association Representative - term expiring
01/31/2026
Equal Opportunity Committee
Lisa Judge - Citizen At-Large - term expiring 01/31/2025
Kelly Gooden - Ward I - term expiring 01/31/2027
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District Library Board
Barbara VanFossen - Commission Appointment - term expiring 06/30/2028
Parks and Recreation Advisory Committee
Evelyn Hough - Resident of Ward 2 - term expiring 01/31/2027
Farmers Market Advisory Board
Cally Travis - Seasonal Artisan - term expiring 01/31/2025
Kristin Johnson - Seasonal Food Vendor - term expiring 01/31/2027
STAFF RECOMMENDATION: To accept resignations and make appointments to
various boards.
L. Sale of 12.87 acres at 2675 Olthoff Drive to Bluewater Industrial
Development, LLC Economic Development
Staff have been working with Bluewater Development to negotiate a purchase
agreement for a portion of our remaining acreage at the Port City Industrial
Park's former Westhore Correctional Facility site.
An existing company in the Port City Industrial Park is seeking space for a
needed expansion. Bluewater Industrial Development plans to construct a
215,000 square foot facility on the proposed sale site for the company, which
will allow the addition of 75-100 new full-time industrial jobs in the community.
Bluewater is in the process of finalizing a long-term lease with the company, and
has 60 days from execution of the sales agreement to do so. The Michigan
Economic Development Corporation is also involved with a commitment of
assistance, which must remain confidential at this time. Their assistance, as
always, is predicated on the city approving the maximum local tax abatement
which will come to you in a future meeting. The total project capital investment
with real property and equipment is $23,481,220. A particular point of interest in
the sales agreement is the subject of stormwater retention. In an effort to be
efficient with our remaining industrial space in the park, and to be good
environmental stewards, staff have negotiated with Bluewater to construct a
shared stormwater retention basin on city property immediately adjacent to the
sale site. We have roughly 30 acres remaining that can be developed for
industrial/commercial use, and we will require future users to connect to this
pond rather than constructing their own. This will provide a cost benefit for
future developments, and also create more usable space on their lots. At the
time of closing with the city, a future developer will reimburse Bluewater
Development for a proportional share of the initial pond construction based on
acreage. The city will contract with Bluewater to maintain the pond (mow
around it) until such time as another development connects to it, at which point
we will bid out mowing/maintenance or conduct it in-house through Public
Works.
STAFF RECOMMENDATION: Motion to approve the Purchase and Development
Agreement with Bluewater Industrial Development, LLC and to authorize the
Mayor and Clerk to sign.
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Motion by Commissioner German, second by Commissioner Keener, to adopt
the Consent Agenda as presented minus items B, D, G, and I.
ROLL VOTE: Ayes: Keener, German, Gorman, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
2024-44 ITEMS REMOVED FROM THE CONSENT AGENDA
B. Public Art Policy Planning
Staff-initiated request to approve the public art policy to set the regulations on
short-term placement of art, long-term placement of publicly-owned art, and
street art. The Downtown Art Committee has reviewed the policy and have
given their support for adoption. Legal counsel has written an opinion regarding
the placement of religious and political art pieces.
STAFF RECOMMENDATION: To approve the public art policy as proposed.
Motion by Vice Mayor St.Clair, second by Commissioner German, to approve
the public art policy as proposed with one addition that permanent placement
of public art be approved by the Commission.
ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, St.Clair, and Johnson
Nays: None
MOTION PASSED
D. Parks & Recreation Fee Schedule DPW- Parks
The Parks & Recreation Department is proposing participation fees for programs
that will be running prior to the annual fee schedule update. The Parks &
Recreation Department is proposing participation fees for new programs. Many
of these programs will take place before the annual update to our City of
Muskegon fee schedule. They are listed below with some supporting details.
• Open Skate Entry: $5.00 - Ice skating at Trinity Health Arena
• Open Skate Skate Rental: $ 3.00 - Rental of skates during open ice skating
• Drop-in sports: $3.00 - Sports such as pickelball that are staffed and have
overhead costs.
• Youth Sports: Resident $40/resident $55/non-resident
• Specialty Summer Camp: Up to $65/resident $85/non-resident - Some
camps may come with a certification, extra equipment or have an
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additional fee for a subcontracted instructor.
This would be the maximum fee to charge for these programs, many of which
will be much lower than the listed price. Financial assistance will be available
through the park programs.
STAFF RECOMMENDATION: Authorize the approval of the Parks & Recreation
2024 fee schedule.
Motion by Commissioner German, second by Vice Mayor St.Clair, to authorize
the approval of the Parks & Recreation 2024 fee schedule.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and
St.Clair
Nays: None
MOTION PASSES
G. Rezoning of Properties at Oak Ave / Riley St (SECOND READING)
Planning
Request to rezone the following properties from MC, Medical Care to Form
Based Code, Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811,
1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828,
1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24-661-
000-0033-00). The Planning Commission unanimously voted to recommend
approval of the rezoning request.
STAFF RECOMMENDATION: To approve the request to rezone the properties.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
request to rezone the following properties from MC, Medical Care to Form
Based Code, Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811,
1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828,
1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24-
661-000-0033-00).
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and
Kochin
Nays: None
MOTION PASSES
I. Taste & LAF Transition to LAB Events DPW- Parks
LAB Events has requested the transition of ownership of both Taste of Muskegon
and Lakeshore Art Festival from the City of Muskegon Parks & Recreation
Department. They have put together a proposal that will keep these popular
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events as a staple of Muskegon as well as make improvements.
Taste of Muskegon is entering its 18th year. Prior to becoming a City Event in
2018, the festival was part of the Downtown Muskegon Now group. Taste of
Muskegon is a 2-day food and beverage festival taking place in and around
Hackley Park. Around 30 Muskegon-area restaurants and food vendors line
streets where they sell sample-sized portions of their menu items for patrons to
"taste" in hopes of drawing people into their businesses regularly. Expenses are
between $90,000-$100,000 a year and revenues have generally been around
$140,000-$150,000. Taste of Muskegon does not pay any of its committee
members.
Lakeshore Art Festival - LAF was officially established in 2013 by the Chamber of
Commerce and handed over to the City of Muskegon in 2021; however, a
version of the festival called Muskegon Art in the Park has existed since 1961.
Prior to being with the Chamber of Commerce, LAF was ran by Summer
Celebration. There are over 250 craft and fine art exhibitors that line the streets
of downtown and within Hackley Park as well as food vendors, street performers,
& interactive public art. Expenses range from $130,000-$160,000 and revenues
are in the range $145,000-$170,000 with an approximately yearly net profit of
$5,000-$7,000. LAF pays its committee members (differing amounts based on
position).
When the City started running the events, they ran out of the Clerk's office
where the 1-2 Event Planners were housed at the time. Both events moved with
the Event Planners to Parks & Recreation in 2023 when they transferred
departments. Neither events budget or expenses reflects either of the Event
Planner's time/salaries that were put into planning them. The Event Planners
spend over 50% of their working hours planning these events. A transition would
be a drastic improvement in capacity for the Parks & Recreation department to
provide programs for the community.
The LAB team has requested $25,000 (total of $50,000) for seed money for each
of these events for year 1 investments. This request is due to the high level of
standard both events have and to build up the infrastructure for these events to
maintain and continue at this level. The request is only for the first year and not
an ongoing funding source.
STAFF RECOMMENDATION: Authorize staff to transition Taste of Muskegon and
Lakeshore Art Festival to LAB Events.
Motion by Commissioner German, second by Vice Mayor St.Clair, to authorize
staff to transition Taste of Muskegon and Lakeshore Art Festival to LAB Events.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
Gorman
Page 7 of 12
Nays: None
MOTION PASSES
2024-45 PUBLIC HEARINGS
A. Request to Establish a Commercial Rehabilitation District, West Urban
Properties, 1095 Third St. Economic Development
Staff is requesting consideration for the establishment of a Commercial
Rehabilitation District (PA 210) to support further development at 1095 Third
Street by West Urban Properties. Last year, West Urban Properties was granted
an option to redevelop a city-owned property into a mixed-use apartment
project with attached townhomes on Houston Street. City staff have been
actively collaborating with them on securing a grant to conduct environmental
due diligence, finalizing a purchase and development agreement, and
exploring appropriate tax incentives to support the financial viability of the
project. We are now nearing the finalization of the project terms and are
requesting the commission's consideration in establishing a PA 210 District to
further facilitate this development.
STAFF RECOMMENDATION: To close the Public Hearing.
The Public Hearing was opened to hear and consider any comments from the
public. Public comments were received from Veania Coleman.
Motion by Commissioner Kilgo, second by Commissioner German, to close the
Public Hearing.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and
German
Nays: None
MOTION PASSES
B. Establishment of a Property Assessed Clean Energy (PACE) Program
Planning
The property assessed clean energy (PACE) model is a mechanism for financing
energy efficiency and renewable energy improvements on private property.
PACE programs allow a property owner to finance the up-front cost of energy
or other eligible improvements on a property and then pay the costs back over
time through a voluntary assessment. PACE assessments are attached to the
property rather than an individual and are available for residential and
commercial developments.
In order to participate in PACE funding, the City must create a PACE district and
select an administrator to facilitate projects. At the April 23 meeting, this
Commission approved a resolution to release the draft PACE Program Report to
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the public. Very minimal staff involvement is necessary once the PACE program
is established by the Commission and there is no cost to the City to participate.
STAFF RECOMMENDATION: To approve the resolution establishing a Property
Assessed Clean Energy (PACE) program and to select Lean & Green Michigan
as program administrator.
The Public Hearing was opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to close the
Public Hearing and approve the resolution establishing a Property Assessed
Clean Energy (PACE) program and to select Lean & Green Michigan as
program administrator.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and
Keener
Nays: None
MOTION PASSES
2024-46 NEW BUSINESS
A. Request to Establish a Commercial Rehabilitation District, West Urban
Properties, 1095 Third St. Economic Development
Staff is requesting consideration for the establishment of a Commercial
Rehabilitation District (PA 210) to support further development at 1095 Third
Street by West Urban Properties. Last year, West Urban Properties was granted
an option to redevelop a city-owned property into a mixed-use apartment
project with attached townhomes on Houston Street. City staff have been
actively collaborating with them on securing a grant to conduct environmental
due diligence, finalizing a purchase and development agreement, and
exploring appropriate tax incentives to support the financial viability of the
project.
We are now nearing the finalization of the project terms and are requesting the
commission's consideration in establishing a PA 210 District to further facilitate
this development.
STAFF RECOMMENDATION: Approve the establishment of a Commercial
Rehabilitation District at 1095 Third St.
Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the
establishment of a Commercial Rehabilitation District at 1095 Third St.
ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and
Kilgo
Page 9 of 12
Nays: None
MOTION PASSES
B. Brownfield Development & Reimbursement Agreement, Trilogy Real
Estate Muskegon, LLC, and the City of Muskegon, 60 Viridian Drive.
Economic Development
City staff is requesting consideration of the amended Brownfield Development
and Reimbursement Agreement between Trilogy Real Estate Muskegon, LLC
and the City of Muskegon and to consider the resolution.
The 5-acre property was formerly the site of the Continental Motors industrial
facility, featuring a 63,000 square foot, multi-story, 118-unit senior living building
with surrounding asphalt parking areas, concrete walkways, and landscaping.
Construction has been completed, and the building will open to residents this
year.
Now that construction has finished, the Developer can begin requesting
reimbursement from the Brownfield Redevelopment Authority (BRA). To initiate
this process, an Assignment and Assumption of the Brownfield Plan Agreement
will be considered at the May 14, 2024 BRA meeting, along with the
Development & Reimbursement Agreement. This request involves Ryerson Creek
Land Co., LLC assigning its right, title, and interest in the TIF Agreement to Trilogy
Real Estate Muskegon, LLC.
The Development & Reimbursement Agreement presented today has been
updated to reflect this change in assignment, pending BRA approval of the
Assignment and Assumption of the Brownfield Plan.
STAFF RECOMMENDATION: Approve the Brownfield Development and
Reimbursement Agreement between Trilogy Real Estate Muskegon LLC, and the
City of Muskegon and authorize the Mayor and City Clerk to sign.
Motion by Vice Mayor St.Clair, second by Commissioner German, to approve
the Brownfield Development and Reimbursement Agreement between Trilogy
Real Estate Muskegon LLC, and the City of Muskegon and authorize the Mayor
and City Clerk to sign.
ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and
Johnson
Nays: None
MOTION PASSES
C. 3rd Quarter Budget Reforecast Finance
At this time staff is asking for approval of the 3rd Quarter Budget Reforecast for
Page 10 of 12
the FY2023-24 budget year.
STAFF RECOMMENDATION: To approve the 3rd Quarter FY2023-24 Budget
Reforecast as presented.
Motion by Commissioner Kochin, second by Commissioner Keener, to approve
the 3rd Quarter FY2023-24 Budget Reforecast as presented.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and
St.Clair
Nays: None
MOTION PASSES
D. Resolution Supporting the Great Lakes and St. Lawrence Cities Initiative's
Creation of a Mayors Commission on Economic Transformation
Manager's Office
Resolution on transforming the Great Lakes and St. Lawrence River Basin into a
thriving blue-green economic corridor while safeguarding our freshwater
resources. The Great Lakes and St. Lawrence Cities Initiative, of which the City of
Muskegon has recently become a member, is convening in Montreal, Quebec
for its May 15-17, 2024, annual conference. At which times, the Cities Initiative
and its membership of mayors from across the Great Lakes and St. Lawrence
River Basin will be launching the Mayors Commission on Economic
Transformation to promote sustainable, resilient, and inclusive economic
development basin-wide and appropriate freshwater stewardship for the
benefit of current and future generations. While the Mayor will not be in
attendance at this year’s annual conference, with the Commission’s support,
the Mayor anticipates participating with other Basin communities in developing
an Action Plan for the Great Lakes and St. Lawrence Economic Transformation,
2025-2035, which will be released at the Cities Initiative’s 2025 annual
conference in Milwaukee, Wisconsin.
STAFF RECOMMENDATION: Adopt the resolution as presented.
Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to adopt the
resolution as presented.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and
Kochin
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
Commission discussed flying the Juneteenth Flag. The Flag Policy will be
discussed at the May 28th Commission Meeting or the June 10th Worksession.
Commission requested an update on the Arbor Community Grants, and
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announced the Park Planning Engagements.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments were received.
2024-47 CLOSED SESSION
A. Attorney/Client Privileged Information Manager's Office
Motion by Vice Mayor St.Clair, second by Commissioner Keener to go into
Closed Session to consider material exempt from discussion and disclosure by
State or Federal statute being an attorney/client communication.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and
St.Clair
Nays: None
MOTION PASSES
Motion by Vice Mayor St.Clair, second by Commissioner Kochin to go into
Open Session
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and
Gorman
Nays: None
MOTION PASSES
ADJOURNMENT
The City Commission meeting adjourned at 9:28 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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