City Commission Packet 07-23-2013

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                           JULY 23, 2013
     CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                AGENDA

    CALL TO ORDER:


    PRAYER:


    PLEDGE OF ALLEGIANCE:


    ROLL CALL:


    HONORS AND AWARDS:


    INTRODUCTIONS/PRESENTATION:


    CONSENT AGENDA:


      A. Approval of Minutes. CITY CLERK
      B. Human Resources Agreement. CITY MANAGER
      C. Special Event Request – Michigan Beach Polo.            PLANNING &
         ECONOMIC DEVELOPMENT
      D. Special Event Request – Catamaran Racing Association of Michigan.
         PLANNING & ECONOMIC DEVELOPMENT
      E. Vacation of Temple Street south of Delano Avenue.       PLANNING &
         ECONOMIC DEVELOPMENT
      F. Acceptance into the Redevelopment Ready Communities Program.
         PLANNING & ECONOMIC DEVELOPMENT
    PUBLIC HEARINGS:


    COMMUNICATIONS:


    CITY MANAGER’S REPORT:


    UNFINISHED BUSINESS:


    NEW BUSINESS:


      A. Fireworks Ordinance Amendment. PUBLIC SAFETY
      B. Special Event Request – Bassmasters Tournament Request to Sell Liquor.
         PLANNING & ECONOMIC DEVELOPMENT
        C. Agreements with Harris Hospitality for Pere Marquette Park.                                   CITY
           MANAGER
    ANY OTHER BUSINESS:


    PUBLIC PARTICIPATION:


    Reminder: Individuals who would like to address the City Commission shall do the following:

    Fill out a request to speak form attached to the agenda or located in the back of the room.

     Submit the form to the City Clerk.

    Be recognized by the Chair.

    Step forward to the microphone.

    State name and address.

    Limit of 3 minutes to address the Commission.

    (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)


    CLOSED SESSION:


    ADJOURNMENT:

ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Date:     July 23, 2013
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Cummings, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the July 8th
Commission Worksession Meeting, and the July 9th City Commission
Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                                       City of Muskegon
                                 City Commission Worksession
                                          July 8, 2013
                                  City Commission Chambers
                                            5:30 PM

                                          MINUTES

2013-56
Present: Commissioners Gawron, Spataro, Hood, German, Wierengo, Turnquist, and
Markowski.
Absent: None.

CATV Franchise Agreement.
The City’s 25-year cable TV franchise agreement with Comcast expires August 2, 2013.
Legislation adopted in 2007 generally takes franchise negotiations out of local community’s
control and, instead, requires the use of a “Uniform Video Local Franchise Agreement.”
Comcast recently (June 20th) submitted a Uniform Franchise Agreement for the City’s
consideration. The City has 15 business days to respond as to the completeness of Comcast’s
Uniform Franchise application and 30 business days in which to approve the application.

The City of Detroit previously challenged the Uniform Franchise in federal court and that court
has generally found in favor of Detroit. However, final resolution of the Detroit case is several
months away.

Our legal counsel on this matter advises that it is in the City of Muskegon’s interest to: 1) deny
the Uniform Franchise as initially submitted by Comcast and delegate authority to negotiate with
Comcast to the City Manager by adoption of the resolution and, 2) send the attached reply letter
to Comcast.

This item will be on the July 9, 2013 meeting for consideration by the City Commission.

Closed Session
Motion by Commissioner German, seconded by Commissioner Hood to go into closed
session to review applications for the City Manager position.

                                                                            ROLL CALL VOTE:

Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and Turnquist.
Nays: None.

                                                                            MOTION PASSES

Open Session
Motion by Vice Mayor Spataro, seconded by Commissioner Wierengo to go into open
session.

                                                                            ROLL CALL VOTE:

Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron, and Hood.
Nays: None.
                                                                 MOTION PASSES


Adjournment.
Motion by Commissioner Hood, seconded by Vice Mayor Spataro to adjourn at 7:18 p.m.

                                                                 MOTION PASSES




                                                    ____________________________
                                                     Ann Marie Cummings, MMC
                                                          City Clerk
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                          JULY 9, 2013
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                               MINUTES

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, July 9, 2013.
Mayor Gawron opened the meeting with a prayer from Rev. Diane Stark from
the Unity Church of Muskegon after which the Commission and public recited
the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Lea Markowski, Eric Hood, Willie German, Sue Wierengo, and
Byron Turnquist, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Cummings.
2013-57 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the June 25th City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
     B. “Development and Reimbursement Agreement” between the City of
        Muskegon Brownfield Redevelopment Authority (BRA) and Terrace
        Point Landing, LLC (Jon Rooks).    PLANNING & ECONOMIC
        DEVELOPMENT
SUMMARY OF REQUEST:         The DDA Plan Amendment and Brownfield
Redevelopment Plan Amendment and Resolution for Terrace Point Landing, LLC
have been approved by the BRA, DDA and City Commission. The last
document for approval is the “Development and Reimbursement Agreement”
(“Agreement”). The Agreement outlines the tax capture and reimbursement
process for the project.
FINANCIAL IMPACT: Future Brownfield Development (BRA) TIF capture will be

                                                                           1
directed to Mr. Rooks for reimbursement of loans he is securing for
redevelopment of the property.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To endorse the approval by the BRA for the
“Development and Reimbursement Agreement” between the City of Muskegon
BRA and Terrace Point Landing, LLC.
COMMITTEE RECOMMENDATION: The BRA met on June 26, 2013, and approved
the “Agreement”.
      C. Restrictive Covenant Declaration. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize the Mayor and Clerk to sign the declaration
of restrictive covenant at the public service building, 1350 E. Keating and
authorize Westshore Engineering to record said restriction.
FINANCIAL IMPACT: The cost of recording which is estimated to be less than
$200.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize the Mayor and Clerk to sign off on the
declaration as well as authorize Westshore Engineering to record the restriction if
approved.
      E. Consideration of Bids for Southern Avenue, Fifth to Sanford (H-1688).
         ENGINEERING
SUMMARY OF REQUEST: Award the reconstruction contract for Southern Avenue
from Fifth to Sanford to McCormick Sand out of Twin Lake since they were the
lowest responsible bidder with a total bid price of $236,732.
FINANCIAL IMPACT: The construction cost of $236,732 plus engineering.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to McCormick Sand.
      F. Intergovernmental     Agreement     for   Traffic   Signal   Maintenance.
         ENGINEERING
SUMMARY OF REQUEST: Endorse the Muskegon County Road Commission
(MCRC) selection of Windemuller Electric for the County-wide traffic signal
maintenance thru 2016. Windemuller was selected via public bids received by
MCRC.
FINANCIAL IMPACT: Based on the historical data over the last four years, it is
estimated that the cost will be about $40,000/year.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:           Endorse the contract between MCRC and


                                                                                 2
Windemuller Electric.
      G. Community Relations Committee. CITY CLERK
SUMMARY OF REQUEST: To accept the recommendations from the Community
Relations Committee made at the meeting held on July 8, 2013, as follows:
   1. Remove two Target Area Representative Positions from Community
      Neighborhood Services Board and re-adjust members where applicable.
   2. Accept resignation of Norman Cunningham from Civil Service Board.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Community Relations Committee
recommendations.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to adopt the
Consent Agenda as read except for item D.
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Wierengo, Turnquist, and
           Markowski
            Nays: None
MOTION PASSES
2013-58 ITEM REMOVED FROM THE CONSENT AGENDA:
      D. West Michigan Fossil Jewelry Business/Concession Contract for City of
         Muskegon Parks. PUBLIC WORKS
SUMMARY OF REQUEST: Staff is asking permission to enter into a one-year
contractual agreement with Kevin VanBrocklin of West Michigan Fossil Jewelry
at Pere Marquette Park, located within the City of Muskegon, to sell various
jewelry items as outlined in the proposal.
FINANCIAL IMPACT: Contract revenue will be 10% of gross receipts, per the
Business/Concession Contract.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into a one-year
Business/Concession Contract with Kevin VanBrocklin of West Michigan Fossil
Jewelry.
Motion by Commissioner Turnquist, second by Vice Mayor Spataro to approve
the concession contract for West Michigan Fossil Jewelry at Pere Marquette
Park.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
           Gawron


                                                                            3
            Nays: None
MOTION PASSES
2013-59 PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate – Northern
         Machine Tool. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended,
Northern Machine Tool, 761 Alberta Avenue, has requested the issuance of an
Industrial Facilities Exemption Certificate.   The total capital investment is
$1,150,000, which includes new personal property and real property
improvements. This request qualifies the company for a term of six years for
personal property and twelve years for real property.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate.
The Public Hearing opened to hear and consider any comments from the
public. Stephen Olson, President of Northern Machine Tool gave an overview of
future plans. No public comments were made.
Motion by Vice Mayor Spataro, second by Commissioner Markowski to close the
Public Hearing and approve the request for an Industrial Facilities Exemption
Certificate for $1,150,000 which includes new personal property for six years and
real property improvements for twelve years.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
           and Hood
            Nays: None
MOTION PASSES
2013-60 NEW BUSINESS:
      A. CATV Franchise Agreement. CITY MANAGER
SUMMARY OF REQUEST: The City’s 25-year cable TV franchise agreement with
Comcast expires August 2, 2013. Legislation adopted in 2007 generally takes
franchise negotiations out of local community’s control and, instead, requires
the use of a “Uniform Video Local Franchise Agreement”. Comcast recently
(June 20th) submitted a Uniform Franchise Agreement for the City’s
consideration. The City has 15 business days to respond as to the completeness
of Comcast’s Uniform Franchise application and 30 business days in which to
approve the application.


                                                                               4
The City of Detroit previously challenged the Uniform Franchise in federal court
and that court has generally found in favor of Detroit. However, final resolution
of the Detroit case is several months away.
Our legal counsel on this matter advises that it is in the City of Muskegon’s
interest to: 1) deny the Uniform Franchise as initially submitted by Comcast and
delegate authority to negotiate with Comcast to the City Manager by adoption
of the resolution and, 2) send the reply letter to Comcast.
FINANCIAL IMPACT: There is no immediate budgetary impact. The franchise fee
received by the City remains at 5%. Depending on the final outcome of
negotiations with Comcast and/or the Detroit litigation, the City may receive
additional benefits from the franchise renewal.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Adoption of the delegation resolution.
Motion by Commissioner Hood, second by Vice Mayor Spataro to adopt the
delegation resolution.
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and
           Spataro
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:00 p.m.


                                           Respectfully submitted,




                                           Ann Marie Cummings, MMC
                                           City Clerk




                                                                               5
                            AGENDA ITEM NO. ______________

                      CITY COMMISSION MEETING July 23, 2013



TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       July 12, 2013

RE:         Human Resources Agreement




SUMMARY OF REQUEST:
To renew the agreement with County of Muskegon to provide human resources services to
the city from July 1, 2013 through June 30, 2014.



FINANCIAL IMPACT:
$75,000 plus incidental costs.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the agreement and authorize the mayor and clerk to sign it.




COMMITTEE RECOMMENDATION:




pb\AGENDA\HUMAN RESOURCES AGREEMENT 071213
                   CITY COMMISSION MEETING DATE
                                July 23, 2013


Date:       July 16, 2013
To:         Honorable Mayor and City Commissioners
From:       Cathy Brubaker-Clarke, Director of Community
            & Economic Development
Re:         Special Event Request – Michigan Beach Polo
            Request to serve beer & wine during beach polo
            event at Pere Marquette Park (2nd year event)


SUMMARY OF REQUEST: The organizers of the Michigan Beach Polo event are
requesting to serve beer and wine during their beach polo match at Pere Marquette
Park on August 10, 2013. They are partnering with the Helen DeVos Children’s
Hospital Foundation. This is the event’s 2nd year.



FINANCIAL IMPACT:        None



BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION:           To approve the sale of beer and wine at Pere
Marquette Park on August 10, 2013 during the beach polo game.



COMMITTEE RECOMMENDATION:             N/A
                    CITY COMMISSION MEETING DATE
                                  July 23, 2013


Date:        July 16, 2013
To:          Honorable Mayor and City Commissioners
From:        Cathy Brubaker-Clarke, Director of Community
             & Economic Development
Re:          Special Event Request – Catamaran Racing
             Association of Michigan (CRAM)
             Request to hold a Catamaran sailing regatta with
             overnight camping at Pere Marquette Park (6th-year
             event)


SUMMARY OF REQUEST: CRAM is requesting permission to hold a Catamaran
sailing regatta at Pere Marquette Park, July 25 through 28, 2013. They would like to
use the City-owned parking lot across from the former Captain Jack’s restaurant for
overnight camping on July 25, 26, and 27, 2013. They expect less than 10 RVs in
the lot overnight, and they will provide a portable toilet for the campers’ use. This is
the event’s sixth year of operation and there have never been any problems with this
group. They have provided proof of liability insurance.


FINANCIAL IMPACT:          None


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION:               To approve overnight camping at Pere Marquette
Park for this event on July 25, 26, and 27, 2013.


COMMITTEE RECOMMENDATION:                N/A
                  Commission Meeting Date: July 23, 2013

Date:        July 17, 2013
To:          Honorable Mayor and City Commissioners
From:        Planning & Economic Development
RE:          Vacation of Temple St south of Delano Ave



SUMMARY OF REQUEST:

Staff is requesting to vacate the portion of Temple Street south of Delano Avenue.


FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends vacation of the street, with the condition that all utility easement
rights be retained.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended vacation of the street at their July meeting,
with the condition that all utility easement rights be retained.




7/17/2013                                                                        1
                                   CITY OF MUSKEGON

                                    RESOLUTION #2013-
                RESOLUTION TO VACATE A PORTION OF A PUBLIC STREET

WHEREAS, a petition has been received to vacate Temple Street south of Delano Avenue; and

WHEREAS, the Planning Commission held a public hearing on July 11, 2013 to consider the
petition and subsequently recommended the vacation; and

WHEREAS, due notice had been given of said hearing as well as the July 23, 2013 City
Commission meeting to consider the recommendation of the Planning Commission;

NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it advisable for the
public interest to vacate and discontinue Temple Street south of Delano Avenue; and

BE IT FURTHER RESOLVED that the City Commission does hereby declare the said portion of
street vacated and discontinued provided, however, that this action on the part of the City
Commission shall not operate so as to conflict with any fire access or the utility rights heretofore
acquired by the City or by any public service utility in the City of Muskegon, operating in, over
and upon said portion of street hereby vacated, and it is hereby expressly declared that any such
rights shall remain in full force and effect;

BE IT FURTHER RESOLVED that after any maintenance and repair by the City, the city shall
restore the disturbed area to the grade and paving in existence at the time of vacation. The City
shall not be responsible to replace special planting, landscaping, fences or any structure. No
structure shall be placed in the vacated street which, in the sole judgment of the City, will interfere
with the repair or maintenance of utilities in the easement, public or private.

Adopted this 23rd day of July, 2013.

        Ayes:

        Nays:

        Absent:

                                                 By:
                                                       Stephen Gawron, Mayor


                                                 Attest:
                                                           Ann Cummings, MMC, City Clerk
             CERTIFICATE (Vacation of Temple Street south of Delano Avenue)


I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular
meeting held on July 23, 2013.


                                                        ______________________________
                                                        Ann Cummings, MMC
                                                        Clerk, City of Muskegon
                                    CITY OF MUSKEGON
                                  PLANNING COMMISSION
                                 STAFF REPORT (EXCERPT)


Hearing, Case 2013-09: Staff initiated request to vacate the portion of Temple Street south of
Delano Avenue


BACKGROUND
The City of Muskegon has recently sold the vacant lot on Temple St in the Seaway Industrial
Park to Schultz Transportation. The company currently runs their business on the parcel of land
to the east of this vacant lot. They would like to combine the two lots so that they can operate
their business on one contiguous piece of property. In order to do so, Temple St, which separates
the two parcels, must be vacated. Although an easement was created for the establishment of
Temple St, the road was never created.



                     Temple St easement looking south from Delano Ave
                 Commission Meeting Date: July 23, 2013

Date:        July 17, 2013
To:          Honorable Mayor and City Commissioners
From:        Planning & Economic Development
RE:          Acceptance into the Redevelopment Ready Communities
             program



SUMMARY OF REQUEST:

The City of Muskegon has been selected to participate in the Michigan Economic
Development Corporation’s (MEDC) Redevelopment Ready Communities (RRC)
program. The program measures and then certifies communities that integrate
transparency, predictability and efficiency into their daily development practices.
The RRC is a formal recognition that a community has a vision for the future and
the fundamental practices on place to get there. Participation in the program could
potentially lead to grant and marketing opportunities.


FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends acceptance into the RRC program and for the Mayor to sign the
Memorandum of Understanding and resolution..

COMMITTEE RECOMMENDATION:

None.




7/17/2013                                                                       1
                                      Resolution No. _______


                                 MUSKEGON CITY COMMISSION

     A RESOLUTION AUTHORIZING THE CITY OF MUSKEGON TO APPROVE
          AND FULLY PARTICIPATE IN THE MICHIGAN ECONOMIC
       DEVELOPMENT CORPORATION (MEDC) REDEVELOPMENT READY
       COMMUNITIES PROGRAM AND APPROVE THE MEMORANDUM OF
                         UNDERSTANDING

WHEREAS, the Michigan Economic Development Corporation (MEDC), selected the
City of Muskegon as one of eight communities to participate in the Redevelopment
Ready Communities Program; and
WHEREAS, the expectation of the program is to complete a comprehensive review of the
City of Muskegon development processes as established by the City of Muskegon, to
make an improvements in transparency and effective communication; and
WHEREAS, the program includes evaluating the strong partnerships with the City
Committees related to development, including the Downtown Development Authority,
Economic Development Corporation, Planning Commission and the Historic District
Commission; and
NOW, THEREFORE, it is resolved as follows:
1.        The Muskegon City Council is willing to participate in the MEDC
          Redevelopment Ready Communities Program, which will involve interacting with
          the Downtown Development Authority, Economic Development Corporation,
          Planning Commission and Historic District Commission.
2.        This resolution shall take effect upon authorization by the Muskegon City
          Commission.
3.        All resolutions and parts of resolutions are, to the extent of any conflict with this
          resolution, rescinded.

Adopted this 23rd Day of July 2013.


Ayes:

Nays:

Absent:




7/17/13                                                                                           2
                                                    BY: __________________________________
                                                           Stephen Gawron, Mayor


                                               ATTEST: __________________________________
                                                          Ann Cummings, City Clerk




                                           CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on July 23,
2013.


                                                             ______________________________
                                                             Ann Cummings, City Clerk




7/17/13                                                                                                   3
                    Redevelopment Ready Communities®
                    Joint Memorandum of Understanding

This Memorandum of Understanding (“MOU”) by and between the Michigan
Economic Development Corporation (“MEDC”), 300 North Washington Square,
Lansing, Michigan and City of Muskegon (“Community”), 933 Terrace Street,
Muskegon, Michigan, jointly referred to as the “Parties” and individually as the
“Party” is effective as of August 26, 2013 (“Effective Date”).

The Community is interested in applying to the MEDC under the Redevelopment
Ready Communities® Program (“Program”) to become certified as a
Redevelopment Ready Community (“RRC”) and receive assistance from the Program
in promoting sites within the Community.

The MEDC is interested in evaluating the Community and making recommendations
for the Community to become certified as a RRC under the Program and help market
the Community to the public for redevelopment purposes.

Therefore, the above entities have come together in a strategic collaboration to
achieve the above stated goals. This collaboration is based on the following
understandings:

      Community Responsibilities

      1. Identifying a primary Program contact who will serve as the lead contact
         and provide overall technical support for all aspects of this project on
         behalf of the Community.
      2. Provide adequate staff personnel to attend trainings, perform research
         collection and assessment of current practices of the Community and to
         implement the recommendations of the MEDC after the evaluation.
      3. Within fifteen (15) days of this MOU, complete the Pre-Evaluation
         document and provide supporting information as required by the MEDC.
      4. Within sixty (60) days of the Certification Assessment Report of Findings
         presentation, provide a resolution adopted by the Community’s elected
         governing body that supports the Community’s intent to implement the
         MEDC identified recommendations if necessary to meet the Program best
         practices.
      5. Within one hundred eighty (180) days, complete implementation of
         MEDC identified recommendations, if necessary, to meet the Program
         best practices.
      6. Provide documentation that the Community meets the Program best
         practices as determined by the MEDC prior to being awarded
         certification.


      MEDC Responsibilities


                                       1
Execution Copy


        1. Provide general training on the Program.
        2. Provide general technical support to the primary Program contact of the
           Community in collecting the information necessary to complete the Pre-
           Evaluation document and implementation of the best practices.
        3. Evaluate the information from the Pre-Evaluation documents.
        4. If necessary, make recommendations of steps to meet the best practices
           as identified by the MEDC.
        5. Once the Program best practices are met, the MEDC will coordinate with
           the RRC Advisory Council to receive input in certifying the Community as
           a RRC.
        6. If certified as a RRC, assist the Community in marketing to the public up
           to three sites as redevelopment ready.
        7. Prepare a license agreement between the Community and the MEDC for
           Community’s use of the RRC logo.

This MOU sets forth the intent of the Parties only and does not, and is not intended
to, impose any binding obligations on the Parties nor shall it be the basis for any
legal claims or liabilities by or among the Parties. Any liability of the Parties,
whether in contract, tort or under any other legal or equitable theory, arising out of
or in connection with this MOU shall be explicitly excluded. Neither Party shall be
entitled to claim compensation for any expenses or losses incurred in bad faith if the
intention of this MOU cannot be reached entirely or in part.

This MOU constitutes the entire agreement between the Parties hereto. This MOU
may be modified, altered, revised, extended or renewed by mutual written consent
of all Parties, by the issuance of a written amendment, signed and dated by all the
Parties.

This MOU may be signed in multiple copies and in counterparts which, when taken
together, shall constitute the executed MOU. Faxed or scanned copies shall be
considered an original.

This MOU is effective until the three year anniversary of the date the Community is
certified as a RRC, unless terminated earlier. However, either Party may terminate
the MOU by providing notice in writing to the other Party thirty (30) days in
advance of the termination.

IN WITNESS WHEREOF, the Parties hereto have caused this MOU to be executed by
their respective authorized representatives.

________________________________________           ______________________
Stephen Gawron, Mayor                                              Date
City of Muskegon

________________________________________          ______________________
Jennifer Nelson, Chief of Staff & General Counsel                 Date
Michigan Economic Development Corporation


                                           2
Date: May 23, 2013
To: Honorable Mayor and City Commissioners
From: Public Safety Director, Jeffrey A. Lewis
RE: Fireworks Ordinance Amendment

SUMMARY OF REQUEST:

It is requested the City Commission approve the attached Ordinance Amendment which
provides for the regulation of the ignition, discharge and use of consumer fireworks, as
allowed under the Michigan Fireworks Safety Act.

The ordinance specifically limits the days and hours Consumer fireworks may be ignited,
discharged or used in the City. The ordinance prohibits the use of fireworks while under
the influence of alcohol or drugs. The Public Safety Office wants to ensure no person
shall recklessly endanger the life, health, safety, or well-being of any person by the
ignition, discharge, or use of consumer fireworks.


FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the Ordinance as presented.
                                      City of Muskegon
                                 Muskegon County, Michigan
                               Ordinance Amendment No. _____


THE CITY OF MUSKEGON HEREBY ORDAINS:

Chapter 54, Offenses and Miscellaneous Provisions, Code of Ordinances of the City of
Muskegon is amended to include the following new Article VIII concerning fireworks.

                                     Article VIII. Fireworks.

Sec. 54-301. Purpose of article.

The purpose of this article is to provide for the regulation of the ignition, discharge and use of
consumer fireworks, as allowed under the Michigan Fireworks Safety Act, MCL § 28.451
et.seq., as amended.

Sec. 54-302. Definitions.

“Act 256” means the Michigan Fireworks Safety Act, Act 256 of the Public Acts of Michigan of
2011, being MCL § 28.451, et. seq., as amended.

“Consumer fireworks” means that term as defined in Act 256.

“Firework” or “fireworks” means that term as defined in Act 256.

Sec. 54-303. Use of consumer fireworks prohibited.

Consumer fireworks may be ignited, discharged or used in the City only on the day proceeding,
the day of, or the day after a national holiday, except for between the hours of 1a.m. and 8 a.m.
when prohibited, as provided for in Act 256. No person shall ignite, discharge or use consumer
fireworks in the City on any other day of the year at any time.

Sec. 54-304.Safety.

No person shall recklessly endanger the life, health, safety, or well-being of any person by the
ignition, discharge, or use of consumer fireworks.

Sec. 54-305. Use of alcohol or controlled substances and fireworks prohibited.

No person shall discharge, ignite or use fireworks while under the influence of alcoholic liquor, a
controlled substance, or a combination of alcoholic liquor and a controlled substance, consistent
with Act 256.
Sec. 54-306. Penalty.

Any person violating the provisions of this Chapter shall be responsible for a civil infraction and
fined up to $500.00.

This ordinance adopted:


       Ayes: __________________________________________________________
       Nays: __________________________________________________________


Adoption Date: _________________________
Effective Date: _________________________
First Reading: _________________________
Second Reading: ________________________


                                      CITY OF MUSKEGON


                              By:     ______________________________
                                      Ann Cummings, MMC, Its Clerk
                                        CERTIFICATE

      The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the day of , 2013, at which meeting a quorum was present and remained
throughout, and that the original of said ordinance is on file in the records of the City of
Muskegon. I further certify that the meeting was conducted, and public notice was given,
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as
amended, and that minutes were kept and will be or have been made available as required
thereby.


DATED: , 2013


                                       _______________________________________
                                       Ann Cummings, MMC
                                       Clerk, City of Muskegon

Publish:     Notice of Adoption to be published once within ten (10) days of final adoption.
                                          CITY OF MUSKEGON
                                         NOTICE OF ADOPTION

TO: ALL PERSONS INTERESTED

      Please take notice that on ___________________, 2013, the City Commission of the City
of Muskegon adopted an amendment to Chapter 54, Offenses and Miscellaneous Provisions,
whereby Article VIII was added.

    1. Section 54-301 indicates the purpose of the ordinance is to regulate the ignition,
       discharge and use of consumer fireworks.

    2. Section 54-302 provides definitions of terms used within the ordinance, all of which are
       consistent with definitions within the Michigan Fireworks Safety Act, Act 256 of the
       Public Acts of Michigan of 2011, being MCL § 28.451, et. seq., as amended.

    3. Section 54-303 indicates that consumer fireworks may be ignited, discharged or used in
       the City only on the day proceeding, the day of, or the day after a national holiday, except
       for between the hours of 1a.m. and 8 a.m. when prohibited, and that no person shall
       ignite, discharge or use consumer fireworks in the City on any other day of the year at
       any time.

    4. Section 54-304 indicates that no person shall recklessly endanger the life, health, safety,
       or well-being of any person by the ignition, discharge, or use of consumer fireworks.

    5. Section 54-305 indicates that no person shall discharge, ignite or use fireworks while
       under the influence of alcoholic liquor, a controlled substance, or a combination of
       alcoholic liquor and a controlled substance.

    6. Section 54-306 indicates that any person violating the provisions of this Chapter shall be
       responsible for a civil infraction and fined up to $500.00.

        Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business
hours.

         This ordinance amendment is effective ten (10) days from the date of this publication.


                                                               CITY OF MUSKEGON

Published: _________________, 2013                    By:      ______________________________
                                                               Ann Cummings, MMC, Its Clerk

------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
                        CITY COMMISSION MEETING DATE
                                July 23, 2013

Date:          July 15, 2013

To:            Honorable Mayor and City Commissioners

From:          Cathy Brubaker-Clarke, Director of Community &
               Economic Development

Re:            Special Event Request – Bassmasters Tournament
               Request to sell liquor

SUMMARY OF REQUEST: The Muskegon County Convention & Visitors Bureau and the
Muskegon Jaycees have filed a special event application for the 2013 Bassmasters Elite Series
Toyota All Stars (fishing) Tournament to be held in Muskegon September 26 – 29. In conjunction
with the tournament, there will be events taking place at Heritage Landing, including alcohol service.
The event applicants are requesting approval to sell liquor at the event and offer limited free
samples. Evan Williams is a main sponsor of the Bassmaster Elite Series, and will have a tent on
the grounds to promote their products. Part of their promotion is to provide free samples of their
whiskeys to patrons. The Jaycees will provide volunteers to man this tent and control the sampling
process. The Evan Williams samples will be poured using ½ ounce measured pourers, essentially
giving one “shot” per sample. In order to keep track of how many samples a patron has, their
wristband will be punched or otherwise marked, indicating to the volunteer servers that they are
eligible for any samples.
State law dictates that free samples of liquor can be provided under a special event license, with the
following requirements:
        1. Sample size cannot exceed ½ ounce.
        2. Patrons are allowed no more than two samples per day.
The Evan Williams booth would also like to offer mixed drinks for sale (liquor with cola or some other
mixer), with stoppers on the bottle measuring out 1-ounce or 1 ¼-ounce shots. They would like
patrons to be able to roam the entire liquor-controlled venue of Heritage Landing with the drinks, and
not be restricted to just the Evan Williams booth.


FINANCIAL IMPACT:             None


BUDGET ACTION REQUIRED:              None


STAFF RECOMMENDATION:



COMMITTEE RECOMMENDATION:                    N/A
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                                    AGENDA ITEM NO. ______________

                       CITY COMMISSION MEETING _____________________



TO:            Honorable Mayor and City Commissioners

FROM:          Bryon L. Mazade, City Manager

DATE:          July 18, 2013

RE:            Agreements with Harris Hospitality for Pere Marquette Park



SUMMARY OF REQUEST:
To approve a Development Agreement, Ground Lease and Option Agreement with Harris
Hospitality for the development of a portion of Pere Marquette Park.




FINANCIAL IMPACT:
$6,000 annual lease payments during initial term.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the request and authorize the mayor and clerk to execute the documents, subject to
city staff approval of each and every exhibit.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\Harris Hospitality, Agrmnts re PM Park 071813
                                OPTION AGREEMENT

       This Option is made on ______________, 2013 between the City of
Muskegon ("City") and 1601 Beach, LLC ("Harris") with reference to the following
facts:

                                      Background

     A.      City owns the property legally described on Exhibit A ("Leased
Premises"). City has leased the Premises to Harris pursuant to the terms of a written
Lease Agreement ("Lease").

     B.      City owns property legally described on Exhibit B adjacent to the
Leased Premises ("Option Property"). City desires to grant Harris an option to lease
the Option Premises according to the terms and conditions set forth below.

Therefore, for good and valuable consideration, the parties agree as follows:

     1.     Grant of Option. City grants Harris an option to lease the Option
Premises pursuant to the terms set forth in this Option Agreement.

       2.      Term of Option. The term of this Option shall commence on
___________________,2013 and shall continue until the sooner of (a) the
termination of the Lease between City and Harris dated ______________, (b) when
a majority interest of 1601 Beach LLC is no longer owned by Andrew Harris, Michelle
Harris, and Fred Scharmer, (c) transfer of the Lease between City and Harris dated
____________,2013 to another entity, except for a transfer to substantially the same
owners of 1601 Beach LLC, or (d) the execution of a lease to a third party of the
property after full compliance with the terms of this Agreement. After the termination
as provided above, the parties shall execute and acknowledge any documents
necessary to release the rights contained in this Agreement. In the event a portion,
but not all, of the City's property depicted in Exhibit B is leased to a third party after
full compliance with the terms of this Agreement, the rights under this Agreement
shall only terminate to the extent of the property leased and shall remain in full force
and effect with regard to the remainder of the property.




                                            1
      3.     Option. If at any time City desires to develop and lease all or a portion
of the property described in Optioned Premises, the City shall send to Harris a copy
of the request for proposals. Harris shall have the right for a period of 60 days to
propose a development substantially similar to what is requested and City and Harris
shall enter into mutually acceptable documents to evidence their agreement to
develop all or a portion of the Optioned Property. If Harris fails to notify the City within
the 60 day period, City may seek proposals from another party.

      If at any time City receives a bona fide written offer, which City intends to
accept, from any party to develop and lease all or a portion of the property described
in Optioned Premises, the City shall send to Harris a copy of the proposal. Harris
shall have the right for a period of 60 days to propose an alternate development,
which the City must consider, or accept in writing the terms of the proposed
development and lease on the terms that are the same or better than the terms
specified in a proposal. If Harris fails to notify the City within the 60 day period, City
may lease the property and permit development to another party.

      Nothing herein shall prevent Harris from presenting its own proposal for the
lease and development of all or a portion of the Optioned Premises during the term of
the Lease. The City is not obligated however to consider the proposal if it has no
desire to develop or lease the property identified in the proposal at that time.

     4       Default. If City enters into a lease in conflict with this Agreement, Harris
may, at its option, have a court of competent jurisdiction declare this Agreement
breached and order that the lease is void. This provision shall not be construed to
                                                                                               Comment [JKH1]: Why would the
prevent specific performance of this Agreement or of any of its terms by either party.
                                                                                               City be allowed to enter into any lease,
                                                                                               whether for more or less thn one year, in
        5.    No Restriction of Rights. This Agreement shall not restrict City's right         violation of the Option Agreement.
to grant utility easements or grant a license to permit vendors to locate on the
property depicted in Exhibit B from May 1 through September 30, so long as no
permanent structure is constructed or allowed in the depicted area, and as long as
the license to permit vendors is not in conflict with the terms of the Development
Agreement between the parties. This Agreement shall not restrict or prohibit a lease
of all or a portion of the area depicted in Exhibit B between City and Harris.

        6.     Notice. Any writings required under this Agreement shall be sent by
certified mail, postage prepaid, to the parties at the addresses set forth above. Either
party may change the name or address it has listed above by sending a certified
letter to that effect to the other party at the above address.

     7.     Consideration. The consideration for this Agreement is the mutual
exchange of the rights given in this Agreement.

      8.     Binding Effect. The provisions of this Agreement shall inure to the
benefit of and shall be binding on the parties and their heirs, legal representatives,
successors, and assigns.

                                             2
9.   Miscellaneous.

a.   Governing Law. This Agreement is executed in accordance with, shall
     be governed by, and construed and interpreted in accordance with the
     laws of the State of Michigan.

b.   Entire Agreement. This Agreement shall constitute the entire
     agreement, and shall supersede any other agreements, written or
     oral, that may have been made or entered into, by and between the
     parties with respect to the subject matter of this Agreement and shall
     not be modified or amended except in a subsequent writing signed by
     the party against whom enforcement is sought.

c.   Binding Effect. This Agreement shall be binding upon, and inure to
     the benefit of and be enforceable by, the parties and their respective
     legal representatives, permitted successors and assigns.

d.   Counterparts. This Agreement may be executed in two or more
     counterparts, each of which shall be deemed an original as against
     any party whose signature appears thereon, and all of which
     together shall constitute one and the same instrument. This
     Agreement shall become binding upon the parties when one or more
     counterparts, individually or taken together, shall bear the signatures
     of all parties.

e.   Non-Waiver. No waiver by any party of any provision of this
     Agreement shall constitute a waiver by such party of such provision on
     any other occasion or a waiver by such party of any other provision of
     this Agreement.

f.   Severability. Should any one or more of the provisions of this
     Agreement be determined to be invalid, unlawful or unenforceable in
     any respect, the validity, legality and enforceability of the remaining
     provisions of this Agreement shall not in any way be impaired or
     affected.

g.   Assignment or Delegation. Except as otherwise specifically set forth
     in this Agreement, Harris shall not assign all or any portion of their
     rights and obligations contained in this Agreement without the express
     prior written approval of Seller, which approval may be withheld in
     Seller's sole discretion. Harris shall be permitted to assign its rights
     under this Agreement to a legal entity controlled by one of both of
     Harriss.

h.   Survival of Representations and Warranties. The representations,
     warranties, covenants and agreements contained in this Agreement
     and in any instrument provided for in this Agreement shall survive the

                                  3
             closing date and continue in full force and effect after the
             consummation of this purchase and sale and continue until all liabilities
             of Harris have been fully satisfied.

The parties have executed this Agreement the day and year first above written.




City of Muskegon                               1601 Beach, LLC

By:___________________________                 By:________________________

Title:__________________________               By:________________________

Date:__________________________                Date:_______________________




                                          4
              Exhibit A
Legal Description of Leased Premises




                 5
              Exhibit B
Legal Description of Option Premises




                 6
                                    GROUND LEASE

      THIS LEASE made this ____ day of __________, 2013, by and between City of
Muskegon ("City"), a Michigan municipal corporation, and 1601 Beach, LLC, a
Michigan limited liability company ("Harris"), in consideration of the mutual covenants
and promises herein contained and for other valuable consideration.

                                     WITNESSETH:

1.     PREMISES LEASED.          The City leases to Harris, and Harris leases from the
City, pursuant to the terms and conditions set forth in this Lease, for the premises
located at 1601 Beach Street, Muskegon, Michigan and the parking area immediately
across the street (“Premises”) as more specifically described and identified in Exhibit A
attached hereto.

2.   TERM. The term of this Lease shall be for a period of five (5) years,
commencing on _________________, 2013 ("commencement date").

Provided Harris is not in default under any of the terms and provisions of this Lease at
the time of renewal, the City grants to Harris the option to renew this Lease for
continuous terms of 5 years. Each option can only be exercised at the completion of
the preceding term. The First Renewal Term and each succeeding Renewal Term (if
any) shall be based upon all the terms and conditions contained in this Lease, Each of
the foregoing options to renew shall be considered to have automatically been renewed
unless Harris gives written notice to City no later than twelve (12) months prior to the
expiration of the original Term of the Lease, or each succeeding Renewal Term as the
case may be, of its intention not to exercise the option.

3.    RENTAL: Harris agrees to pay to City at its office or to such other person or
persons or at such other place as City shall designate in writing, as rental for the said
premises as follows:

        (a) During the initial 5 year term, the sum of Six Thousand and 00/100
($6,000.00) per year, payable as follows: 1/3 by July 1, 1/3 by August 1, and the final
1/3 by September 1.
(b) At the beginning of each successive 5 year option term, the rent shall be increased
10%.
        (c) Rental and all other charges hereunder shall promptly be paid without prior
demand therefore and without deductions or set-offs for any reason whatsoever, and
Harris shall be charged a late fee of ten (10%) percent of the unpaid balance or One
Hundred and No/100 ($100.00) Dollars, whichever is greater, for any payment that is
received ten (10) days past the due date.

4.     USE OF PREMISES. Harris shall use and occupy the Premises for the purposes
outlined in its Proposal for Site Development, which is attached as Exhibit B. The
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specific uses are subject to City’s ordinances. This paragraph contemplates that Harris
will comply with all laws, local ordinances, and lawful police and health regulations
applicable to the use of the Premises, or permit anything to be done on the Premises
tending to create a nuisance or disturbance. The City acknowledges that Harris will
own and operate a restaurant and event center businesses on the Premises, with live
music, and, so long as the operation complies with City ordinances, and that conduct
does not constitute a nuisance or disturbance.

Subject to fire damage or other casualty loss, Harris is required to fully operate the said
restaurant business on the premises continuously (daily, except for conditions not in the
control of Harris) during the period from Memorial Day through Labor Day of each year
of every term. In addition to other events of default, failure to substantially comply with
the operation of the business during that period shall be a material default and the City
shall have the rights as set forth in paragraph 16 below. “Substantial compliance” shall
be defined as be open from noon to 8:00 p.m. on 80% of the days between Memorial
Day and Labor Day.

5.      UTILITIES. Harris shall procure and shall pay the cost when due of all utilities
rendered or furnished to the leased premises during the term of this Lease, including
electricity, gas, water and sewerage charges.

City shall grant any reasonable requests, in the City’s sole discretion, to execute any
easements, rights of way, and licenses over the Premises required by any public or
quasi public utility company with respect to the construction, operation and use of the
Premises.

6.     SIGNS. The cost of installing, maintaining, changing and removing any signs
upon the leased premises shall be borne by Harris. Harris shall obtain City's written
approval, which shall not be unreasonably withheld, as to design, location and the
manner of installation prior to placing any sign whatsoever upon the leased premises.
The City acknowledges Harris has the right to install signs in the parking lot of the
leased premises, subject to the other terms and conditions in this paragraph. Any signs
shall comply with all requirements of appropriate governmental authority and all
necessary permits or licenses required in connection therewith shall be obtained by
Harris at Harris's sole cost and expense. Harris shall maintain all signs in good
condition and repair at all times during the term of this Lease. Upon vacating the leased
premises, Harris shall remove all signs and repair any damage caused by such
removal.

7.    ALTERATIONS. Harris hereby accepts the Premises in “AS IS” CONDITION
WITH ALL FAULTS. City grants its permission, as the landlord as opposed to its
governmental authority, to Harris to demolish or renovate the existing building on the
Premises. City’s permission is subject to the prior approval of a Development
Agreement between the parties which will include the construction of another building
on the Premises, prior issuance of permits by the City, and evidence of financial ability
by Harris to complete the construction.
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Harris shall have the right, at its own cost and expense, subject to necessary City
permits, to make structural changes and alterations to the interior of any building without
City approval, and to place or install within the building such fixtures, partitions,
equipment and trade fixtures, together with any additional painting or minor alterations
which Harris may find necessary and deem desirable. The building and all fixtures,
partitions, equipment, trade fixtures, alterations or changes installed by Harris shall be
and remain owned by Harris.

At the expiration of the Lease, Harris shall have 30 days to remove the buildings and all
furniture, fixtures and equipment. At the expiration of the 30 days, if the buildings or any
furniture, fixtures and equipment is remaining on the property, ownership shall pass to
the City. Harris shall execute any and all documents requested by the City to effectuate
the transfer of ownership. Any damage to the leased premises caused by the removal
of the building or damage to the building caused by the removal of furniture, fixtures and
equipment shall be repaired by Harris at the sole cost and expense of Harris. Should
Harris fail to do so, City may perform the necessary work to return leased premises to
said condition, and Harris shall reimburse City therefore.

8.     MAINTENANCE AND REPAIR. Harris shall be solely responsible for repair,
maintenance, and snow and sand removal of the parking lot. Notwithstanding the
above, the City agrees that as part of its annual spring beach cleanup, it will remove the
accumulated sand from the parking lot with its equipment and personnel, at no cost to
Harris. Additionally, the City agrees to fill in any cracks in the parking lot as needed. The
City will provide the equipment and personnel and Harris will pay for the materials.

If the City intends to repave Beach Street, it agrees to replace the parking lot on the
leased premises according to the following terms and conditions. The City will provide
the labor and equipment to replace the parking lot, but Harris will pay for the materials.

Harris agrees to maintain the exterior of the new building in good repair. Harris shall
keep the sidewalks, entrances and parking lot free from rubbish, ice, and snow. In the
event Harris fails to make any of the repairs which it is obligated to make, after having
been given 60 days written notice by the City to Harris, City shall be entitled to enter the
Premises and make or cause the same to be made, and the amount or amounts
expended by it for such repairs shall be due and payable by Harris to City as additional
rent.



9.     INSURANCE.

      9.1 HOLD HARMLESS. To the fullest extent permitted by law, Harris agrees to
defend, pay on behalf of, indemnify, and hold harmless the City, its elected and
appointed officials, employees, volunteers, and others working on behalf of the City
against any and all claims, demands, suits, or loss, including all costs connected
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therewith, and for any damages which may be asserted, claimed or recovered against
or from the City, its elected and appointed officials, employees, volunteers, or others
working on behalf of the City, arising out of or is any way connected or associated with
this contract. The obligation to defend and hold harmless extends to City's employees,
agents, subcontractors, assigns and successors.

      9.2 INSURANCE REQUIREMENT. All coverages shall be with insurance
companies licensed and admitted to do business in the State of Michigan and Best
Rated A VIII. All coverage shall be with insurance carriers acceptable to City.

              9.2.1 Workers' Compensation Insurance. Harris shall procure and
       maintain during the life of this contract, Workers' Compensation Insurance,
       including Employers Liability Coverage, in accordance with all applicable Statutes
       of the State of Michigan.

              9.2.2 Vehicle Liability Insurance. Harris shall procure and maintain
       during the term of this Agreement, Vehicle Liability Insurance in accordance with
       applicable statutes of the State of Michigan.

               9.2.3 Commercial General Liability Insurance. Harris shall procure
       and maintain during the life of this contract, commercial general Liability
       Insurance on an "Occurrence Basis" with limits of liability not less than
       $1,000,000 per occurrence and/or aggregate combined single limit, Personal
       Injury, Bodily Injury and Property Damage. Coverage shall include the following
       extensions: (A) Contractual Liability; (B) Products and Completed Operations;
       (C) Independent Contractors Coverage; (D) Broad Form General Liability
       Extensions or equivalent; (E) Deletion of all explosion, Collapse and
       Underground (SCU) exclusions, if applicable.

              9.2.4 Additional Insured. Commercial General Liability Insurance, as
       described above, shall include an endorsement stating the following shall be
       "Additional Insureds": The City, all elected and appointed officials, all employees
       and volunteers, all boards, commissions and/or authorities and board members,
       including employees and volunteers thereof. The endorsement adding the City
       as additional insured shall read exactly as follows: "The City of Muskegon is
       hereby added as an additional insured…"

             9.2.5 Cancellation Notice. Workers' Compensation Insurance and
       Commercial General Liability Insurance, as described above, shall include an
       endorsement stating the following: "It is understood and agreed that Thirty (30)
       days Advance Written Notice of Cancellation, Non-Renewal, Reduction and/or
       Material Change shall be sent to: CITY OF MUSKEGON CITY MANAGER."

               9.2.6 Proof of Insurance Coverage.            Harris shall provide the City
       certificates and policies endorsing the City as additional insured as listed below:

C:\DOCUMENTS AND SETTINGS\POTTER\LOCAL SETTINGS\TEMPORARY INTERNET FILES\OLK8\IU0601-
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                   i.    Two (2) copies of Certificate of Insurance for Workers'
              Compensation Insurance, if applicable;

                   ii.     Two (2) copies of Certificate of Insurance for Commercial
              General Liability Insurance;

                    iii.    If so requested, Certified Copies of all policies mentioned
              above will be furnished.

               9.2.7 Harris shall deliver renewal certificates and/or policies to City at
       least ten (10) days prior to the expiration date.

10.    DAMAGE BY FIRE OR OTHER CASUALTY. Prior to construction of a new
building, if the building is damaged or destroyed by fire or other cause, rent shall not be
abated.

Once a new building is constructed, if all or any portion of the building is damaged or
destroyed by fire or other casualty, Harris shall restore the same as nearly as possible
to its condition and character immediately prior to such damage or destruction and my
use all available proceeds of insurance for such purpose. All insurance proceeds in
excess of those used in the restoration shall be the property of Harris. Notwithstanding
the foregoing, Harris shall not be obligated to restore the building and shall have the
right to terminate this Lease within sixty (60) days after the date of damage if (a) the
building shall be substantially damaged by fire or other casualty or cause, or (b) the cost
of the repairs, restoration or reconstruction would exceed 25% of the replacement value
of the building. If Harris elects to terminate this Lease as provided in this Section, all
insurance proceeds received in connection with the fire or other casualty shall to the
extent received be paid to Harris. In such event, Harris shall demolish and remove all
debris and restore the Premises, as nearly as possible, to its condition immediately prior
to the construction of the building.


11. ENCUMBRANCE OF HARRIS’ LEASHOLD INTEREST. Harris may encumber
by mortgage or other proper instrument its leasehold interest together with all buildings
and improvements owned by Harris, as security for any indebtedness of Harris;
provided, however, that the fee simple interest of City shall be unaffected and
unencumbered by any such security, instrument, or mortgage. The execution of any
such mortgage or other instrument shall not be held as a violation of any of the terms or
conditions of this Lease. The foreclosure any such mortgage, or other instrument, or
any sale thereunder, either by judicial proceedings or by virtue of any power reserved in
such mortgagee or conveyance by Harris as a holder of such indebtedness, or the
exercising of any right, power, or privilege reserved in any mortgage or other instrument
shall be held as a violation of any of the terms or conditions of this Lease. No such
encumbrance, foreclosure, conveyance, or exercise of right shall relieve Harris from its
liability under this Lease. City’s interest in the land may not be subordinated or
encumbered in any way.
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12.    REAL ESTATE TAXES. Harris shall during the term of this Lease, pay Real
Estate Tax Expense prior to the “due date”, which shall include all real estate taxes and
assessments both general and special imposed by federal, state or local governmental
authority, or any other taxing authority having jurisdiction over the premises, against the
land, buildings and all other improvements.

Harris shall have the right to appeal or contest any tax if it should desire to do so. Any
cost or expense, or any penalties, that may be incurred as a result of any such appeal
or contest of the amount of the assessed valuation shall be borne by Harris.

13.   PERSONAL PROPERTY TAXES. Harris shall pay all taxes levied against its
personal property located within the leased premises during the term of this Lease, with
such payment to be made prior to the “due date”.

14.    EMINENT DOMAIN. If a part of the leased premises shall be taken by any public
authority under the power of eminent domain, then the term of this Lease shall cease on
the part so taken from the date possession of that part so taken. In the event that all
the leased premises amounting to twenty-five (25%) percent or more of the square foot
of the Premises is taken, or the building is rendered unsuitable for the use permitted
under this Lease, Harris shall have the right either to cancel this Lease and declare the
same null and void or to continue in possession of the remainder of the leased premises
under the terms herein provided, except that the rental shall be reduced in proportion to
the amount of the premises taken.

Harris shall be entitled to the award made for any taking, condemnation or conveyance
to the extent used by Harris for repairs or renovations under this Section. Otherwise,
the City shall be entitled to the entire award for the land and Harris shall be entitled to
the entire award as to the building (after all necessary demolition and removal of debris
which shall be paid from such award).


15.    RESTRICTION AGAINST ASSIGNMENT AND SUBLETTING. Harris shall not
assign or in any manner transfer this Lease or any estate, interest or benefit therein, or
sublet said premises or any parts thereof or permit the use of same or any part thereof
by anyone other than Harris, without the prior written consent of City, which consent
shall not be unreasonably withheld. Consent by City to any assignment or transfer of
interest under this Lease or subletting of said leased premises or any part thereof shall
be limited to the instance stated in such written consent and shall not constitute a
release, waiver or consent to any other assignment, transfer of interest, or subletting.

16.    EVENTS OF DEFAULT; RIGHTS OF CITY UPON DEFAULT. In the event
Harris shall fail to make payment of the rental or any other item required of Harris within
ten (10) days after the due date of same, or if Harris fails to cure its breach of a non-
payment covenant within thirty (30) days after receipt of written notice of breach from
City, Harris shall be in default provided however, that if such default is of a nature that it
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cannot be reasonably cured within such thirty (30) day period, then Harris shall have
such time as it reasonably required to sure such default, provided that Harris promptly
commences to cure such default and diligently pursues such cure to completion In
addition, Harris shall be in default if it abandons the leased premises, becomes
insolvent, makes an assignment for the benefits of its creditors, has a receiver or trustee
appointed for its property as a result of its insolvency of threatened insolvency, or is
subject to a levy of execution or attachment or other taking of its property, assets or
leasehold interest in the leased premises by process of law or otherwise in satisfaction
of any judgment or claim. In the event of default that is not cured, City may, at its option,
terminate this lease and all the rights of Harris hereunder and thereupon City shall have
the right to enter the leased premises and remove all persons and property there from,
or City may, without terminating this lease, enter into leased premises as the agent of
the Harris and re-let the leased premises with or without any furniture, fixtures, or
property of Harris or make any repairs, changes, alterations, or additions in or to said
leased premises that may be necessary or convenient, all for the account of Harris. In
addition to the past due rentals and charges, Harris hereby agrees to pay interest on the
past due sum in the amount of eighteen percent (18%) per annum, plus all reasonable
attorneys’ fees and expenses and court cost and expenses, including interest, incurred
by City in the process of eviction of collections.

17. EVENTS OF DEFAULT; RIGHTS OF HARRIS UPON DEFAULT. In the event
City fails to cure its breach of a covenant within thirty (30) days after receipt of written
notice of breach from Harris, City shall be in default. In the event of default that is not
cured, Harris may terminate this lease. This remedy shall not be considered exclusive
of any other remedy, but the same shall be cumulative and shall be in addition to every
other remedy existing at law or in equity.

18.    COVENANT OF TITLE AND QUIET POSSESSION, City covenants that it has
the right to make this lease for the term aforesaid and that it will put Harris into
possession of the leased premises for the full term of this lease. City warrants that
Harris, upon making the payments and performing and keeping the other covenants and
agreements of this Lease on its part to be kept and performed, shall have quiet and
peaceful possession of the leased premises during the term of this Lease and any
extension thereof.

19.    RIGHT TO EXAMINE PREMISES. Harris agrees to allow City, its agents and
representatives, free access to the leased premises during reasonable hours for the
purpose of examining same; and during the period of three (3) months previous to the
expiration of the term of this Lease or during the period of three (3) months prior to any
renewal hereof, to exhibit same to prospective tenants.

20.     HOLDING OVER. It is hereby agreed that in the event of Harris holding over
after the termination of this Lease, thereafter the tenancy shall be from month to month
in the absence of a written agreement to the contrary, and Harris shall pay to City a
daily occupancy charge equal to five (5%) percent of the monthly rental under
Paragraph 3 (plus all other charges payable by Harris under this Lease) for each day
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from the expiration or termination of this Lease until the date demised premises are
delivered to City in the condition required herein, and City's right to damages for such
illegal occupancy still survive.

21.    PROPER NOTICES. All notices required or permitted under this Lease shall be
deemed to be properly served if sent by registered mail to the last address previously
furnished by the parties hereto. Until hereafter changed by notice in writing, notices
shall be sent to City at City Manager, City of Muskegon, 933 Terrace, Muskegon,
Michigan, and to Harris at 950 West Norton, Muskegon, Michigan 49441.

22.    WAIVER. The failure of City to insist upon strict performance of any of the
covenants or conditions of this Lease or to exercise any option herein conferred in any
of one or more instances, shall not be construed as a waiver or relinquishment of any
such covenants, conditions or options, but the same shall be and remain in full force
and effect. The subsequent acceptance of rent hereunder by City shall not be deemed
to be a waiver of any preceding breach by Harris of any term, covenant or condition of
this Lease, other than the failure of Harris to pay the particular rental so accepted,
regardless of City's knowledge of such preceding breach at the time of acceptance of
such rent. No covenant, term or condition of this Lease shall be deemed to have been
waived by City, unless such waiver is in writing by City.

23.    ENTIRE AGREEMENT. This Lease and the exhibits and addenda, if any,
attached hereto and forming a part hereof, set forth all the covenants, promises,
agreements, conditions and understandings between City and Harris concerning the
lease of the Premises and there are no covenants, promises, agreements, conditions or
understandings, either oral or written, between City and Harris other than is set forth
herein. Except as herein otherwise provided, no subsequent alteration, amendment,
change or addition to this Lease shall be binding upon City or Harris unless reduced to
writing and signed by the parties hereto.

24.    PERSONAL PROPERTY, MERCHANDISE, FURNITURE AND FIXTURES. Any
and all personal property, merchandise, furniture or fixtures placed in or moved upon
the leased premises by Harris shall be at the sole risk of Harris. City shall not be liable
for damages to a newly constructed building, furniture, fixtures or equipment.

25.    PARTIAL INVALIDITY. If any term, covenant or condition of this Lease or the
application thereof to any person or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Lease or the application of such term, covenant or
condition to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant or condition of
this Lease shall be valid and be enforced to the fullest extent permitted by law.

26.    HAZARDOUS SUBSTANCES. Harris shall not cause or permit any Hazardous
Substance to be used, stored, generated, or disposed of on or in the Premises by
Harris, Harris's agents, employees, contractors, or invitees. If Hazardous Substances
are used, stored, generated, or disposed of on or in the Premises, or if the Premises
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become contaminated in any manner for which Harris is legally liable, Harris shall
indemnify and hold harmless the City from any and all claims, damages, fines,
judgments, penalties, costs, liabilities, or losses (including, without limitation, a decrease
in value of the premises, damages caused by loss or restriction of rentable or usable
space, or any damages caused by adverse impact on marketing of the space, and any
and all sums paid for settlement of claims, attorneys' fees, consultant and expert fees)
arising during or after the Lease term, and as a result of that contamination by Harris.

27.    TITLE III. Notwithstanding any other provision of this Lease, the parties hereby
agree that the premises may be subject to the terms and conditions of the Americans
with Disabilities Act of 1990 (hereinafter the "ADA"). The parties further agree and
acknowledge that it shall be the sole responsibility of Harris to comply with any and all
provisions of the ADA, and such compliance may be required to operate the demised
premises. Harris further agrees to indemnify and hold the City harmless against any
claims which may arise out of Harris's failure to comply with the ADA. Such
indemnification shall include, but not necessarily be limited to reasonable attorney's
fees, court costs and judgments as a result of said claims.

28.    RECORDING OF MEMORANDUM. Upon the execution hereof, City and Harris
shall execute and cause to be recorded with the Muskegon County Register of Deeds a
memorandum hereof in form reasonably acceptable to City. All recording charges and
any stamp or similar tax shall be paid by Harris. Upon the expiration or earlier
termination of this Lease, City and Harris shall cooperate to execute a recordable
termination of same.


      IN WITNESS WHEREOF, the parties hereto have caused this Lease to be
signed in their respective names by their respective officers and sealed with their
respective seals the day and year first above written.


LESSOR: City of Muskegon                          LESSEE: 1601 Beach, LLC

By:___________________________                    By:________________________

Title:__________________________                  By:________________________

Date:__________________________                   Date:_______________________




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                                       EXHIBIT A

                         PROPERTY DESCRIPTION OR MAP




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                                       EXHIBIT B

                                 SITE DEVELOPMENT




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                                            DEVELOPMENT AGREEMENT

      This Development Agreement is made as of __________ ____, 2013, between the CITY
OF MUSKEGON, a Michigan municipal corporation (the "City"), and 1601 Beach, LLC, a
Michigan limited liability company, whose business address is 950 W. Norton, Muskegon,
Michigan 49440 ("HARRIS").


                                                             RECITALS

       A.      City owns property commonly referred to as Pere Marquette Beach and the Ovals,
which is located between Beach Street and the edge of Lake Michigan and depicted in the aerial
map attached as Exhibit A.

        B.     City’s interest in the property located at Pere Marquette Beach and the Ovals is
subject to a number of restrictions, including being prohibited from selling the property.

        C.      Harris is interested in leasing a portion of Pere Marquette Park (“Leased
Property”) depicted in the aerial map attached as Exhibit B and more specifically provided in the
legal description attached as Exhibit C.

       D.      Harris’ plan is to demolish the existing building on the leased property and
construct a variety of buildings depicted in the site plan attached as Exhibit D.

        E.     Harris desires a Right of First Refusal concerning adjacent property depicted in
the aerial map attached as Exhibit E. City is willing to grant a Right of First Refusal, subject to
conditions as provided in the attached Right of First Refusal attached as Exhibit F.


                                               TERMS AND CONDITIONS

        Therefore, in exchange for the consideration in and referred to by this Agreement, the
parties agree as follows:

          1.   HARRIS OBLIGATIONS PRIOR TO EXECUTION OF THE PROPOSED
          LEASE.

          1.1        Survey.

          Upon execution of this Development Agreement, Harris shall order and pay for a survey.
          The survey shall include the property subject to the Lease attached as Exhibit G and the
          property subject to the Right of First Refusal attached as Exhibit F.




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          1.2        Financing Improvements on Leased Property.

          Harris agrees to provide the accepted bid to construct the improvements shown on the site
          plan attached as Exhibit D. Harris shall provide to the City Manager, under a promise of
          confidentiality if possible, a commitment letter from a financial institution or other
          verifiable proof of financial ability to make the improvements. The acceptability of proof
          of financial ability is solely within the purview of the City Manager.

          1.3        Planning Commission Approval.

          Harris shall submit to City an application for a site plan and special use permit if
          necessary in City’s sole discretion for review by the City of Muskegon Planning
          Commission and pay such fee as is required. The special use permit and site plan review
          shall include the proposed restaurant, banquet facility and yogurt stand. The special use
          permit and site plan review shall be limited to the proposed improvements for the
          property subject to the Lease.

          1.4        State Approval.

          City and Harris acknowledge that the property subject to the proposed Lease and the
          property subject to a proposed Option is located between an area which may be a
          protected critical dune and the shores of Lake Michigan. The parties acknowledge that
          there may be State of Michigan regulations, including but not limited to Rules and
          Regulations administered by the Department of Natural Resources and Department of
          Environmental Quality. Harris shall obtain written confirmation from appropriate State
          Agencies that the development contemplated in Exhibit D will be permitted by the State
          of Michigan and provide such written confirmation to the City.

          1.5        Liquor License.

          Harris shall acquire one or more Class C liquor licenses, or other liquor license(s),
          necessary to serve beer, wine, and alcoholic beverages on site. The liquor license(s) must
          be applicable to both the restaurant and banquet hall. In addition to the Class C liquor
          licenses, Harris may obtain an SDM liquor license.

          1.6.       Tax Abatement.

          Harris may, but is not obligated to seek tax abatement improvements shown on the site
          plan attached as Exhibit D. If a tax abatement is sought, City shall process the request in
          its normal course of business, including payment of any fees, but is not obligated to grant
          any tax abatement.

          1.7        Environmental Testing.

          Harris shall have the right to complete whatever inspections it deems necessary to
          determine if the property is polluted or contaminated.


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          2.         CITY OBLIGATIONS PRIOR TO EXECUTION OF THE PROPOSED
                     LEASE.

          2.1        Title Insurance.

          City shall order and pay for a Title Insurance Commitment, back to the point that the City
          took title and any other covenants, restrictions and provisions, including for the property
          subject to the proposed Lease and the property subject to the proposed Right of First
          Refusal. City’s obligation to order the Commitment is subject to Harris providing the
          legal description of the property.

          2.2        Zoning Classification.

          City warrants that the property subject to the proposed Lease and the proposed Right of
          First Refusal is zoned OSR Open Space Recreation District. Permitted Uses, either by
          right or Special Land Use Permit are those specified in attached Exhibit H. City warrants
          that it shall not alter the Zoning classification or modify the Principal Uses Permitted or
          Special Land Uses Permitted after execution of this Development Agreement and prior to
          the execution of the proposed Lease.

          2.3        Property Ownership.

          City represents and Harris acknowledges that the property subject to the proposed Lease
          and the proposed Right of First Refusal have been designated as a “Charter Park”, which
          may not be sold, transferred, mortgage or conveyed by the City except with the approval
          of a majority of the electors voting at an election held in the City.

          2.4        Access to Property.

          Harris shall be provided non-exclusive access to the proposed property. Harris
          acknowledges that others presently have access to and use the property. Harris, in its
          exercise of reviewing the proposed land and undertaking its necessary due diligence,
          shall minimizes the disruption of others use. Harris, or its agents, shall take no action
          which could result in injury to other users of the property.


          3.         GROUND LEASE.

          3.1     Upon satisfaction of Harris’ obligations in Paragraph 1, Harris and City desire to
          enter into a multi-year Ground Lease, a copy of which is attached as Exhibit G.




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          3.2        Phased Development.

          HARRIS and City acknowledge that the Improvements contemplated in the Site Plan
          attached as Exhibit D may not be able to be constructed simultaneously. The
          Improvements will be completed in the following order: the proposed restaurant, then the
          banquet facility, then the yogurt stand. Harris reserves the right to construct all the
          Improvements simultaneously.

          The construction of the planned improvements by Harris shall be phased as follows:

          3.2.1      The initial phase shall be the demolition/renovation of the existing building and
                     then the construction of the proposed restaurant. Harris shall have 30 days from
                     approval of the site plan to submit construction drawings for the restaurant. Harris
                     shall complete the restaurant within the time periods set forth in the City’s
                     ordinances for approval of site plans.

          3.2.2      If not constructed simultaneously with the proposed restaurant, the banquet
                     facility and yogurt stand shall be completed within the time periods set forth in
                     the City’s ordinances for approval of site plans.


          Completion shall be defined as issuance of an unconditional Certificate of Compliance.


          3.3        Other Vendors.

          Pursuant to License Agreements, City has granted to various entities the right to sell
          products in the City, including at Pere Marquette Beach and the Ovals. The Licenses are
          effective from January 1, 2013 through December 31, 2013. Harris’ execution of the
          proposed Lease does not affect the previously issued Licenses. To the extent that City
          has already authorized a location for a vendor, the Lease does not affect that License and
          Harris agrees not to interfere with such. A list of vendors and locations are attached as
          Exhibit I. City commits that, for other than special events, any future License to sell food
          or drink products shall be limited to areas which are not subject to the proposed Lease or
          Option.


          3.4        Limited Access.

          As part of the site plan review process, City and Harris shall mutually agree as to what
          facilities will have limited access, (i.e., the use of restroom facilities in the restaurant may
          be limited to restaurant customers, etc). Such agreement may be added to the Lease at
          the request of either party.




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          4.         OPTION AGREEMENT

          4.1        Possible Future Development.

          Except as limited by Paragraph 3.3, Harris and City acknowledge that the development
          contemplated in the Site plan attached as Exhibit D may spur a desire by private entities
          to develop the area surrounding the area to be leased by Harris pursuant to Exhibit G.
          City is unwilling to commit at this point to lease any additional property to Harris or any
          other party for development. City is willing to provide limited assurances that Harris
          may be able to expand its development under the terms and conditions set forth in a
          separate Option Agreement.



          5.         ENVIRONMENTAL COMPLIANCE AND OBLIGATIONS.

          5.1        Compliance with Environmental Regulations. Harris shall fully comply with all
                     statutes, regulations, or other applicable requirements imposed by any federal,
                     state, or municipal agency with respect to the environmental condition of the
                     Property and/or with respect to any activities or operations that Harris may
                     conduct upon the Property (hereinafter referred to as "Environmental
                     Requirements"). Harris shall not cause, permit or suffer the existence or
                     commission by Harris, its agents, employees, contractors or invitees, or by any
                     other person of any violation of any Environmental Requirements upon, about or
                     beneath the Property or any portion thereof.

          5.2        Hazardous Material; Environmental Liens. Harris shall not cause, permit or
                     suffer any "hazardous material" or "hazardous substance" (as defined by
                     applicable Federal or State statutes or regulations) to be brought upon, treated,
                     kept, stored, disposed of, discharged, released, produced, manufactured,
                     generated, refined, or used upon, about, or beneath the Property or any portion
                     thereof by Harris, its agents, employees, contractors, tenants or invitees, or any
                     other person without the prior written consent of City.

          5.3        Obligation to Remediate. Harris shall, upon demand of City, and at its sole cost
                     and expense, promptly take all actions to remediate the environmental condition
                     of the Property which may be required by any federal, state or local governmental
                     agency or political subdivision which remediation is necessitated from, or
                     attributable to, (i) the presence upon, about, or beneath the Property of any
                     "hazardous material" or "hazardous substances" or (ii) any violation of
                     Environmental Requirements, if such presence or violation is caused by the
                     activities or operations conducted by Harris upon the Property. Harris agrees to
                     allow entry upon the Property by City, or agents, contractors or employees of City
                     for purposes of conducting environmental audits and/or other tests for the purpose
                     of determining the impact of Harris's presence and/or activities or operations upon
                     or with respect to the Property upon the environmental condition thereof. In the


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                     event that HARRIS performs any such environmental audit and/or test on its own
                     behalf, it shall promptly provide to City full and complete copies of any results
                     and/or reports that are generated in connection with the above activities.


    6.  TERMINATION OR EXTENSION OF THIS DEVELOPMENT
AGREEMENT.

          City and Harris agree that if Paragraph 1 is not satisfied and the proposed Lease is not
          executed by October 1, 2013, the parties shall review the status of the contingencies set
          forth in Paragraph 1 to determine if Harris has been diligently working toward satisfying
          those contingencies. The parties acknowledge one or more of the contingencies require
          approval by governmental bodies that Harris has no control over. If Harris is in good faith
          working toward satisfaction of the contingencies, the termination date of this
          Development Agreement shall be extended until such time as all governmental agencies
          have issued its respective opinions on the issues being presented by Harris. If Harris is
          not diligently working toward satisfaction of the contingencies, this Development
          Agreement shall become null and void, along with the proposed Option Agreement.


          7.     INTERPRETATION. This is the entire agreement, including attachments,
          between the parties as to its subject. It shall not be amended or modified except in
          writing signed by the parties. It shall not be affected by any course of dealing and the
          waiver of any breach shall not constitute a waiver of any subsequent breach of the same
          or any other provision. This Agreement shall be interpreted and construed in accordance
          with Michigan law and the parties agree to jurisdiction and venue within the courts for
          the County of Muskegon.

          8.         BINDING. This Agreement and the rights and obligations under this Agreement
                     are not assignable and not transferable without the consent of the other parties. It
                     shall, however, be binding upon any successors or permitted assigns of the
                     parties. Harris and City have negotiated together to reach the terms of this
                     Development Agreement, have participated in the drafting of this Agreement,
                     acknowledge that this product is a joint effort of both parties.

        9.     WAIVER. One or more waivers by any party of any covenant or condition of
this Agreement shall not be construed as a waiver of a subsequent breach of the same or of any
other covenant or condition. The consent or approval given by any party with respect to any act
by the other party requiring such consent or approval shall not be deemed to waive or render
unnecessary further consent or approval of any subsequent similar act by such party.

        10.    NOTICE. Any notice provided for herein or given pursuant to this Agreement,
shall be deemed in compliance herewith if in writing and sent by United States certified or
registered mail, postage prepaid, return receipt requested, or by personal delivery to the parties as
follows:



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                     To Muskegon:

                     CITY OF MUSKEGON
                     933 Terrace, P.O. Box 536
                     Muskegon, MI 49443-0536
                     Attn: City Manager


                     To HARRIS:

                     1601 BEACH, LLC
                     950 W. Norton
                     Muskegon, MI 49441

       11.     COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall constitute an original and all of which shall constitute one and
the same Agreement.



          WHEREFORE, this Agreement has been executed as of the date first written above.

CITY OF MUSKEGON

By:___________________________
  Stephen Gawron, Mayor


Attest:

______________________________
Ann Marie Cummings, City Clerk


1601 Beach, LLC
By:___________________________
   ___________________, Its _________




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                                                             EXHIBIT A

                         AERIAL OF PERE MARQUETTE BEACH AND OVALS




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                                                             EXHIBIT B


                     AERIAL OF PROPERTY SUBJECT TO PROPOSED LEASE




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                                                             EXHIBIT C

         LEGAL DESCRIPTION OF PROPERTY SUBJECT TO PROPOSED LEASE
                         (To be Provided after execution)




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                                                             EXHIBIT D

                                             CONCEPTUAL SITE LAYOUT




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                                                             EXHIBIT E

              AERIAL FO PROPERTY SUBJECT TO RIGHT OF FIRST REFUSAL




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                                                             EXHIBIT F

                                               RIGHT OF FIRST REFUSAL




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                                                             EXHIBIT G

                                                      PROPOSED LEASE




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                                                             EXHIBIT H

                  CITY OF MUSKEGON ZONING ORDINANCE, ARTICLE XVII




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                                                             EXHIBIT I

            LIST OF APPROVED VENDORS AT PERE MARQUETTE AND OVALS




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