City Commission Worksession Minutes 08-08-2022

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                                CITY OF MUSKEGON
                          CITY COMMISSION WORKSESSION

                                Monday, August 8, 2022
                                       5:30 p.m.
                              City Commission Chambers
                        933 Terrace Street, Muskegon, MI 49440



Present: Mayor Johnson, Vice Mayor German, Commissioners Gorman, St.Clair, and

Absent: Commissioners Hood and Ramsey

Farmers Market Presentation
Ann Meisch, City Clerk, presented information about the Muskegon Farmer’s Market.
The presentation included information about staffing, advantages of the Muskegon
Farmers Market, Seasonal and Daily vendors, multiple programs like SNAP/EBT –
Senior POP, Kids POP, Flea Market, Winter Market, Event Rentals, City Events,
Kitchen 242, Challenges at the Market, and future goals. The presentation will be made
available on the City’s website.

Update on City’s ARPA Allocation
Peter Wills, Director of Strategic Initiatives, provided a staff update on the City’s
allocation of American Rescue Plan Act (ARPA) funds.

Staff previously provided an update to the Commission on the use of ARPA funds at
a Special Meeting on February 28, 2022. Since that time, staff continues to meet to
strategize on the use and implementation of the ARPA funds to realize the highest
long term gain for our community. Staff is also targeting and evaluating federal grant
opportunities that continue to be released throughout the year as part of the
Infrastructure Investment and Jobs Act (IIJA) implementation process.
Staff intends to provide a review of the funding allocations and commitments made
thus far. We will also work with the Commission to develop options for handling the
remaining funds and engaging with our neighbors.
Periodic engagement also continues with the National League of Cities (NLC) as
part of our participation in their ARPA Grant Navigator program to explore additional
opportunities for federal funding.
Table 1.
                          Status of Committed ARPA Funds
Project                 Purpose                Committed     Status
Infill Housing – West   Infill Housing         $4.275M       Sub-recipient Agreement
Urban Properties                                             signed
Infill Housing – LRS    Infill Housing         $750,000      Current staff consultation
Enterprises                                                  with LRS
Infill Housing –        Infill Housing         $250,000      Full Award expended
General Fund            GF FY22                $900,000      Budgeted
General Fund            GF FY23                $650,000      Budgeted
Water/Sewer             Houston Ave project    $800,000      Budgeted
Trinity Health          Restrooms, ADA         $750,000      Budgeted
Arena/Thayer Ave        improvements, etc
Trinity Health Arena    FY22 Budget            $675,000      Budgeted
Convention Center       Outstanding project    $2.5M         Budgeted
CSXT Purchase           Removal of rail line   $2.0M         $185,480.54 expended
Agreement                                                    per Agreement
Boys & Girls Club       Fundraising            $1.0M         Full Award expended
Muskegon Museum         Fundraising            $1.0M         Full Award expended
of Art                  campaign
Frauenthal Center       Utility relocation     $1.0M         Full Award expended
                        Subtotal               $16,550,000
                        ARPA Balance           $6,331,894

   •   23% - percentage of funding currently committed to infill housing initiative
   •   13% - percentage of funding currently committed to local non-profit agencies
Table 2. - projects included within the permitted Standard Allowance “umbrella”
intended to replace up to $10M of lost public sector revenue.
   Commitment of Funds to replace lost public
        sector revenue, up to $10M (Standard
Infill Housing            $5.275M
Convention Center         $2.5M
General Fund FY22         $900,000
General Fund FY23         $650,000
Trinity Health Arena      $675,000
Total                     $10,000,000

Parks Donation Policy
Staff has prepared the draft policy to administer donation requests received for the
City Parks Department. The draft policy is meant to provide guidance and
consistency for those wishing to make a donation to the City Parks system and the
staff charged with reviewing requests and coordinating for installation. The most
common donations are benches, but can also include options for trees, plaques, etc.
The policy also sets a precedent in place for pre-existing donations in that they will not
be maintained at city expense in perpetuity.

Staff is seeking input on the draft policy with the hopes of refining the policy and
bringing it back for formal approval by the Commission at a later date.

Discussion took place regarding the draft Policy and this item will appear on the
agenda for approval at a later date.

ARP Infill Housing Working Cash Fund Request
Jake Eckholm, Economic Development Director, presented information to Commission
regarding the ARP Infill Housing Working Cash Fund Request.

Staff is requesting authorization to issue an inter-fund loan from the General Fund (101)
to the Public Improvement Fund (404) of one million dollars ($1,000,000) to ensure
working capital on hand for the ARP Infill Housing Program being implemented by
Briggs Builders and West Urban Properties.

We are working diligently on infilling owner occupied housing in the community
through the five million dollar commitment from the City Commission from American
Rescue Plan Act funds. Mr. Briggs is working with the City to secure additional
financing through the Community Foundation in order to infill 6 total homes in
Jackson Hill, and Mr. Dusendang has a working total of 34-36 units depending on
pricing that will primarily be placed in McLaughlin and Nelson. 18 are currently in the
permitted stage at various levels of completion, and therein lies the issue. The
structure of the agreements for both developers indicates that the city make them
whole for their half of the investment in each house 45 days after Certificate of
Occupancy is issued, or at time of sale. With the rate of building that is necessary to
keep various subcontractors engaged during this very difficult labor market, it is
likely that we will run into cash on hand issues in the ARP program wherein all of our
money is “tied up in inventory.”
Staff is requesting that the General Fund, which currently has a fund reserve of 9.6
million dollars, make a temporary interfund loan to the Property Improvement Fund of 1
million dollars, which is enough to fully implement 4 builds at the contracted prices. This
should be enough cushion to keep our building partners and their contractors working
consistently through project implementation. The structure would require that all city
proceeds from sale are booked into the Public Improvement Fund, and that the full 1
million dollars is returned to the General Fund in a lump sum transfer at the culmination
of both ARP infill housing projects.

Discussion of this information took place and this item will be on the regular meeting
agenda on August 9, 2022 for consideration.

Public Comment – Public comment was received

Adjournment: The City Commission Worksession Meeting adjourned at 7:03 p.m.

                                                 Respectfully Submitted,

                                                 Ann Marie Meisch, MMC – City Clerk

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