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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 11, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
□ CITY MANAGER’S REPORT:
A. Procedural Correction City Manager/Clerk/Attorney
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Lakeshore Museum Loan Agreement Public Safety
C. D.D. MacGee’s Grill LLC Concession/Business Contract for City of
Muskegon Parks DPW
D. Approval of Building Contract for 1350 Eastwood Drive CNS
E. Amendment to the Zoning Ordinance – Signage Planning &
Economic Development – SECOND READING
F. Rezoning Request for Several Properties to R-2, Single Family Medium
Density Residential District Planning & Economic Development –
SECOND READING
G. Rezoning Request for Several Properties to R-3, Single Family High
Density Residential District Planning & Economic Development –
SECOND READING
□ PUBLIC HEARINGS:
A. Public Hearing for Brownfield Plan Amendment and Development and
Page 1 of 2
Reimbursement Agreement for Liberty Building (formerly Ameribank)
Redevelopment Project Planning & Economic Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Arena Lease – Rad Dad’s City Manager
B. Arena Rink Alterations City Manager
C. Authorization to Repair/Refurbish 1999 Olympia 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 MEISCH, 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.
Page 2 of 2
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: July 11, 2017
Here is a quick outline of the items on our agenda(s):
WORK SESSION
We have a group that would like to discuss the creation of a historic district to protect the
Chase Hackley Piano Factory Building.
REGULAR MEETING
1. Under the consent agenda, we are asking the Commission for approval of the following:
a. Last meeting’s minutes.
b. Approval of our annual agreement to loan a retired fire truck to the Lakeshore Museum
Center for their fire barn display.
c. Approval of a concession agreement at Pere Marquette Park for DD MacGee’s Grill.
They will be located south of the bath house.
d. Approval of the building contract for 1350 Eastwood Drive. This is a CNS home that we
plan to remodel and make available to an income-qualified homeowner. It’s in a great
location, and we think it will be easy to sell once finished!
e. Amendment to the zoning ordinance to allow for digital signs in the waterfront marine
areas. This is a second and final reading.
f. Rezoning of certain parcels to R-2 single family medium density as part of the smaller
lot zoning changes. This is a second and final reading.
g. Rezoning of certain parcels to R-3 single family high density as part of the smaller lot
zoning changes. This is a second and final reading.
2. Under Public Hearings
a. We will take public comments on proposed brownfield plan amendment to
include the Liberty Building (formerly known as Ameribank Building). Port City
has exercised the option to purchase and move forward with the development.
3. Under new business, we will be asking the Commission to approve the following:
a. Approval of the lease for Rad Dad’s Tacos and Tequila at the LC Walker Arena. Rad
Dad’s is leasing approximately 5,300 square feet of concourse space in the LC
Walker Arena. They have increased their square footage request to accommodate
a frozen yogurt business that will function seasonally as a walk-up frozen yogurt
window during the warm months and serve arena events year-round. The city
expects to expend approximately $350,000 on building improvements to
accommodate the two businesses.
b. Authorization to expend up to $30,000 to replace dasher boards at the LC Walker
Arena. The new dasher boards will be able to accommodate indoor soccer as arena
management seeks to host more soccer-related activities at the arena in the
coming year. The new dasher boards will increase revenue via Risers’ Games,
summer soccer leagues, all-star games, tournaments, and many other soccer-
specific events that we are considering.
c. Authorization to expend up to $35,000 to refurbish the city’s 1999 Olympia Ice
Resurfacing Unit. We do not have a backup unit, so it is imperative that the current
unit is functioning properly and consistently. We expect this investment to buy us
3-4 years. At that time, we would be requesting a new resurfacing unit and
converting this unit to act as the backup unit.
Let me know if you have any questions/comments/concerns
Date: July 5, 2017
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the Special Meeting held
Monday, June 26, 2017 and the Regular City Commission Meeting held
Tuesday, June 27, 2017.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
MINUTES
CITY OF MUSKEGON
SPECIAL CITY COMMISSION MEETING
Monday, June 26, 2017 - 5:30 p.m. @
Muskegon City Hall - 933 Terrace Street
Muskegon, MI 49440, Room 107
2017-49 (A)
The meeting was called to order at 5:30 p.m. on Monday, June 26, 2017 by Mayor Stephen J. Gawron.
ROLL CALL:
Present: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist, and Johnson
Absent: None
Collective Bargaining Agreement (Closed Session)
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to go into closed session to
discuss Collective Bargaining Agreement.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, and Johnson
Nays: None
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German, to come out of closed
session.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
Nays: None
Absent: Hood and Warren
MOTION PASSES
Open session resumes:
Proposed 2017-2018 Budget, cont.
Discussion regarding the proposed 2017-2018 budget took place and public comments were received.
There was an explanation of how the stacks at Sappi will be taken down. There was a correction to the
Commissioner’s Budget
Adjournment: The Special Meeting adjourned at 9:18 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 27, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, June 13, 2017. Pastor
Matt Sharpe, Evanston Avenue Baptist, opened the meeting with prayer, after
which the Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Commissioners Ken Johnson, Debra
Warren, Dan Rinsema-Sybenga, and Byron Turnquist, City Manager Franklin
Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent: Vice Mayor Eric Hood (arrived at 5:52 p.m.), Commissioner Willie
German, Jr. (arrived at 6:00 p.m.)
2017-50 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the June 12, 2017 Worksession
Meeting and the June 13, 2017 Regular City Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. One-Time or Occasional Users of Kitchen 242 – User Fee Change City
Clerk
SUMMARY OF REQUEST: Current fees for use of Kitchen 242 are $15 per hour with
a Security Deposit of $50. Staff is seeking City Commission approval to amend
the fee schedule for rental for one-time or occasional users to $25 per hour and
the Security Deposit to $100, effective July 1, 2017.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
Page 1 of 10
STAFF RECOMMENDATION: Approval of the change in fees for one-time or
occasional users effective July 1, 2017.
C. 2017-2018 Muskegon High School Community Officer Agreement
Public Safety
SUMMARY OF REQUEST: To approve the 2017-2018 Muskegon High School
Community Officer Agreement. This agreement provides Muskegon High School
with a Community Officer during the nine months school is in session.
FINANCIAL IMPACT: Muskegon Public Schools agrees to pay the City of
Muskegon $2,459.74 each month, from September 2017 through May 2018,
totaling $22,137.66.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the 2017-2018 Muskegon High School
Community Officer Agreement and authorize the Mayor to sign.
E. Amendment to the Zoning Ordinance – Signage Planning &
Economic Development
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2334 of the
zoning ordinance to amend the rules on electronic message board signs and to
allow them in B-1, Limited Business Districts and WM, Waterfront Marine Districts,
as well as at churches in all zoning districts and all businesses that have been
granted a special use permit in residential districts.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the ordinance amendment, with one member
absent.
~ SECOND READING REQUIRED ~
F. Rezoning Request for Several Properties to R-2, Single Family Medium
Density Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties from
R-1, Single Family Low Density Residential District to R-2, Single Family Medium
Density Residential District.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
Page 2 of 10
recommended approval of the request at their June 15 meeting, with one
member absent.
~ SECOND READING REQUIRED ~
G. Rezoning Request for Several Properties to R-3, Single Family High
Density Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties from
R-1, Single Family Low Density Residential District to R-3, Single Family High
Density Residential District.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their June 15 meeting, with one
member absent.
~ SECOND READING REQUIRED ~
H. 2017 CDBG/HOME Budget Recommendations Community and
Neighborhood Services
SUMMARY OF REQUEST: To accept the 2017 Budget recommendations from
Citizen’s District Council for CDBG/HOME Allocations.
FINANCIAL IMPACT: Budget will be published for release of funds request.
BUDGET ACTION REQUIRED: To finalize the budget for the CNS department
and direct staff to publish approved 2017 ACDBG/HOME Allocation and Budget
for Release of Funds and Environmental Review of Projects.
STAFF RECOMMENDATION: To accept and approve the recommended 2017
CDBG and HOME Budgets from Citizens District Council.
COMMITTEE RECOMMENDATION: The Citizens District Council has made their
recommendations.
I. ITEM REMOVED PER STAFF REQUEST
J. Set Public Hearing for Amendment to Brownfield Plan – Liberty Building
(Formerly Ameribank) Planning & Economic Development
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan Amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property which will be purchased by
Liberty Development, LLC, located at 880 First Street, in the Brownfield Plan.
Page 3 of 10
FINANCIAL IMPACT: Brownfield Tax Increment Financing will be used to
reimburse the developer and the City for “eligible expenses” incurred in
association with development of the Liberty project, which is approximately
$2,564,280. Liberty Development, LLC cost for the development of the property is
approximately $6.85 million in private investment, resulting in a substantial
increase in the local and school taxes generated by the property.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority
met on June 15, 2017 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to
approve the consent agenda as presented, minus items D.
ROLL VOTE: Ayes: Gawron, Warren, Rinsema-Sybenga, Turnquist, and Johnson
Nays: None
MOTION PASSES
2017-51ITEMS REMOVED FROM THE CONSENT AGENDA:
D. Space Fruit, LLC Concession for City of Muskegon Parks Department
of Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Bri Schott & Kelvin Pearson of Space Fruit LLC, at
Pere Marquette Park, located within the City of Muskegon, to sell various Fruit
Pearl items, as stated in their proposal, from a mobile concession trailer.
FINANCIAL IMPACT: Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into concession
agreement with Bri Schott & Kelvin Pearson of Space Fruit, LLC.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to authorize DPW staff to enter into concession agreement with Bri Schott & Kelvin
Pearson of Space Fruit, LLC
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
Nays: None
MOTION PASSES
Page 4 of 10
2017-52 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – Lakeside
Surfaces Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended,
Lakeside Surfaces, Inc, 2265 Black Creek Road, has requested the issuance of an
Industrial Facilities Tax Exemption Certificate (IFT). The total capital investment
will be $2,387,666 in real property and will create 26 new jobs in the City. They
are eligible for a 12-year abatement per the City’s IFT policy.
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 for a term of twelve (12) years for real property.
PUBLIC HEARING COMMENCED: No public comments were received
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and approve the resolution granting an Industrial
Facilities Exemption Certificate for a term of twelve years for real property for
Lakeside Services.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
Nays: None
MOTION PASSES
B. Request to Transfer Two Industrial Facilities Exemption Certificates to
KLO Acquisition, LLC Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, KLO
Acquisition, LLC, 1790 Sun Dolphin Drive, has requested the transfer of two
personal property Industrial Facilities Tax Exemption Certificates (IFT) from
Ameriform Acquisition, LLC. These would include Certificate numbers 2011-302
(set to expire at the end of 2019) and 2014-435 (set to expire at the end of 2023).
FINANCIAL IMPACT: The City will continue to capture the same amount of
property taxes generated by the original IFT.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting the transfer of
the IFT’s.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Warren, second by Commissioner Johnson, to close
the public hearing and approve the resolution granting transfer of the IFT’s to KLO
Acquisitions, LLC.
Page 5 of 10
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
Nays: None
MOTION PASSES
2017-53 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
533 Jackson Avenue
1440 Jiroch Street
1460 Hoyt Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days or infraction tickets may be issued. It is further requested that administration
be directed to obtain bids for the demolition of the structures and that the
Mayor and City Clerk be authorized and directed to execute contracts for
demolition with the lowest responsible bidder or staff may issue infraction tickets
to the owner, agent or responsible party if they do not demolish the structure.
FINANCIAL IMPACT: General Funds
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to concur with the Housing Board of Appeals notice and order to demolish 533
Jackson Avenue and 1440 Jiroch Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
Nays: None
MOTION PASSES
Motion by Commissioner Turnquist, second by Commissioner Johnson, to concur
with the Housing Board of Appeals notice and order to demolish 1460 Hoyt STreet
Avenue and 1440 Jiroch Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
Nays: None
MOTION PASSES
Page 6 of 10
B. Adoption of 2017-18 Proposed Budget Finance
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2017-18 which starts July 1, 2017. An
electronic version of the budget has been distributed to Commissioners.
Additionally, the budget is available for public inspection on the City’s website
and at the City Clerk’s Office or Hackley Public Library.
The proposed budget has been reviewed in detail with staff at the June 12th
Worksession. A public hearing on the budget was held at the regular
Commission meeting the following evening on June 13th. City ordinance requires
that the budget be adopted by the Commission on or before the second
Commission meeting in June.
FINANCIAL IMPACT: The budget is the City’s financial plan for the coming
fiscal year.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of the proposed budget for the fiscal
year 2017-18.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
C. Change Order to add Harris Street Resurfacing from Sherman to Sun
Dolphin to the Glenside, Sherman to Glen (H-1708) Engineering
SUMMARY OF REQUEST: Authorize staff to execute a change order with
McCormick Sand, Inc. adding the milling and resurfacing of Harris to the
Glenside project as per the proposal.
This request is contingent upon the approval of the proposed CIP projects in the
proposed 2017/2018 budget.
FINANCIAL IMPACT: Estimated cost for construction is $113,859.28
BUDGET ACTION REQUIRED: None at this time assuming the proposed
2017/2018 CIP is adopted.
STAFF RECOMMENDATION: Authorize staff to execute a change order with
McCormick Sand, Inc.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
authorize staff to execute a change order with McCormick Sand, Inc.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist,
and Johnson
Nays: None
MOTION PASSES
Page 7 of 10
D. Hartshorn Marina Engineering Study Department of Public Works
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Abonmarche consulting to provide the preliminary engineering
as per the proposal and as called for by the Michigan Department of Natural
Resources grant.
FINANCIAL IMPACT: $60,000 DOLLARS, State of Michigan match of $30,000
BUDGET ACTION REQUIRED: None if the proposed budget is approved.
STAFF RECOMMENDATION: Authorize staff to enter into an engineering
services agreement with Abonmarche.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to authorize
staff to enter into an engineering services agreement with Abonmarche.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
E. Adopt Michigan DNR Grant Resolution Department of Public Works
SUMMARY OF REQUEST: To adopt the resolution and authorize the Mayor and
Clerk to sign the agreement between the Michigan Department of Natural
Resources and the City of Muskegon.
FINANCIAL IMPACT: $30,000 is the city’s match.
BUDGET ACTION REQUIERD: None is necessary if the proposed budget for
2017/2018 is approved.
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the agreement.
Motion by Commissioner German, second by Commissioner Warren, to approve
the resolution and authorize the Mayor and Clerk to sign the agreement.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
F. Sewer Rate Adjustment Finance
SUMMARY OF REQUEST: In 2016 a resolution with a treatment rate for our
customers that is based on a multiplier of 1.49 times the rate the county bills the
city for wastewater was adopted. The 2017/18 budget calls for the multiplier to
be raised to 1.68 based on the recommendation of H. J. Umbaugh & Associates
to cover the costs of capital improvement needs of our aging infrastructure over
Page 8 of 10
the next ten years. Additionally the monthly sewer administration charge will
increase from $2.67 to $3.00.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time. The proposed rate change was
incorporated into the FY 2017-18 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION: Adoption of the fee adjustment resolution.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the fee adjustment regarding sewer rates.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
G. 2017 Sanitation Service Fee Finance
SUMMARY OF REQUEST: To adopt the resolution to begin charging a sanitation
service fee of $1.20 per month per residential utility bill. This charge will cover the
difference between what is currently being collected through property taxes
and what the City currently pays for residential sanitation.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time. The proposed rate change was
incorporated into the FY 2017-18 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION: Adopt the resolution.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to approve the
2017 Sanitation Service Fee Resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
and German
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
2017-54 CLOSED SESSION:
A. City Manager Evaluation
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to go into closed session for the City Manager’s Evaluation.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
Page 9 of 10
and Turnquist
Nays: None
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Turnquist,
to return to open session.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood.
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission meeting adjourned at 8:10 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
Page 10 of 10
AGENDA ITEM NO._____________
CITY COMMISSION MEETING ___________________
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 11, 2017
SUBJECT: D.D. MacGee’s Grill LLC Concession/Business Contract for City of Muskegon
Parks.
SUMMARY OF REQUEST:
Staff is asking permission to enter into a 1-year contractual agreement with Bryan Toth of D.D.
MacGee’s Grill LLC, at Pere Marquette Park, located within the City of Muskegon, to sell
various items, as stated in their proposal, from a mobile concession.
FINANCIAL IMPACT:
Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize DPW staff to enter into concession agreement with Bryan Toth of D.D. MacGee’s
Grill LLC.
COMMITTEE RECOMMENDATION:
Commission Meeting Date: July 11, 2017
Date: June 30, 2017
To : Honorable Mayor and City Commission
From: Community and Neighborhood Services Department
RE : Approval of Building Contract for 1350 Eastwood Drive
____________________________________________________________________________________________
SUMMARY OF REQUEST: To award the Building Contract for the rehabilitation of
1350 Eastwood Drive to Nassau Construction for the City of Muskegon’s
Homebuyers Program through CNS.
CNS received 2 bids as listed on the attached sheet; the cost estimate from our
spec writer was $79,000.
FINANCIAL IMPACT: The funding for this project has been secured with 2016
HOME Funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To award Nassau Construction the rehabilitation
contract for 1350 Eastwood Drive; in the amount of $ 95,500.00, for the Community
and Neighborhood Services Office.
COMMITTEE RECOMMENDATION: None required.
Community and
Neighborhood Services
MEMO City of Muskegon
933 Terrace
Second Floor
Muskegon, MI 49442
Ph: 231-724-6717
Fax: 231-726-2501
Date: June 28, 2017
To: Bidders regarding 1350 Eastwood Drive
From: Oneata Bailey, Director
Community and Neighborhood Services
City of Muskegon
Re: Bid Results
Community and Neighborhood Services received the following bid proposals:
CONTRACTOR Total Bid Price*
Nassau Construction LLC $95,500
TK Construction $109,825
*excludes Alternative Bids for Hardwood Floor Repair/Sprinkler Repair
The City of Muskegon reserves the right to accept or reject any and all bids. The City of
Muskegon is also not restricted to accept the lowest bid.
We appreciate everyone’s interest in being a part of the City of Muskegon’s neighborhood
revitalization efforts. The selected bidder will be contacted in the next few days.
OB
Commission Meeting Date: July 11, 2017
Date: July 6, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Amendment to the Zoning Ordinance – Signage – SECOND
READING
SUMMARY OF REQUEST:
Staff-initiated request to amend Section 2334 of the zoning ordinance to amend the
rules on electronic message board signs and to allow them in B-1, Limited Business
Districts and WM, Waterfront Marine Districts, as well as at churches in all zoning
districts and all businesses that have been granted a special use permit in residential
districts.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION:
The Planning Commission unanimously recommended approval of the ordinance
amendment, with one member absent.
Staff Report (EXCERPT)
CITY OF MUSKEGON
PLANNING COMMISSION
REGULAR MEETING
Hearing, Case 2017-15: Staff-initiated request to amend Section 2334 of the zoning ordinance to amend the
rules on electronic message board signs and to allow them in B-1, Limited Business Districts and WM,
Waterfront Marine Districts, as well as at churches in all zoning districts and all business that have been
granted a special use permit in residential districts.
SUMMARY
1. The Mart Dock, located at 560 Mart St (zoned Waterfront Marine), would like to install an electronic
message board sign. However, these types of signs are prohibited in Waterfront Marine districts.
They are also prohibited in B-1, Limited Business districts and at churches and approved businesses
in residential zones.
2. Electronic message board signs have been allowed by the zoning ordinance for over 10 years and
staff has not received any major complaints on them.
3. Staff has had to deny some electronic message board sign requests for some businesses and churches
because of the current sign ordinance. Staff is requesting to allow these signs in more zoning districts
to allow these churches and businesses to effectively promote themselves. There currently are some
churches that are allowed to have electronic message board signs because they are located in business
districts. However, most churches are located in residential districts.
4. Where already allowed in the current ordinance, there is a provision that states “electronic message
boards shall be dimmed at dusk.” This allows staff to enforce on the brightness of any sign that may
possibly cause a nuisance to any residential uses at night. Staff has not had to enforce using this as of
yet, but it is good to have if a problem ever arises.
5. In addition to the electronic message board sign request, the Mart Dock also requested to have a 14’
tall sign. Signs in Waterfront Marine districts are only allowed to be a maximum of 8’ tall. Staff
feels that the ordinance is correct here for the most part, given that most Waterfront Marine districts
are located in Lakeside, and we should limit the height of pole signs in this area to avoid blight and
diminished lake views. However, an 8’ tall sign would be too small to notice for someone driving on
Shoreline Dr at 55 MPH. Staff recommends allowing taller signs in these districts as long as the
property has frontage on a highway.
Current Message Board Sign at Mart Dock
Electronic Message Boards Sign at Mount Zion Church (188 W Muskegon Ave). This property is
zoned Form Based Code, where these signs are allowed.
First Congregational Church (1201 Jefferson St). This property is zoned R-1, where electronic
message board signs are not allowed.
Various signs in Lakeside, where electronic message board signs are not allowed
This building was recently approved for a SUP to operate a restaurant in an R-1 district, where
electronic message boards are not allowed.
NEW LANGUAGE
Deletions are crossed out and additions are in bold.
6. Permitted signs in all residential and mobile home park districts:
a. Entranceway monument signs are permitted for residential developments of up to
twelve (12) square feet. One sign for each major public road frontage may be
provided. Signs shall not exceed eight feet in height.
b. Internally illuminated monument signs of up to thirty-two (32) square feet, not
exceeding eight (8) feet in height, and internally lit wall signs up to twenty-four (24)
feet for lawful institutional uses such as churches and schools. [amended 7/06]
c. Legal business uses in residential districts are permitted signage as allowed in the B-1
zoning district, except for those uses otherwise addressed in this section. [amended
4/02]
d. One (1) non-illuminated wall sign of up to eight (8) square feet for a home occupation.
[amended 12/01]
e. Changeable copy or message boards shall be part of a fixed, permanent sign and shall
have rigid letters. Electronic message boards are prohibited.
f. Electronic message boards shall be permitted for all churches and businesses
granted a special use permit to operate in a residential district, provided:
1) One electronic message board shall be permitted per premise.
2) Electronic message boards shall be dimmed at dusk.
3) Electronic message boards shall not be permitted for home businesses.
8. Permitted signs in the B-1, Waterfront Marine Zone, Open Space Conservation, Open Space
Recreation, and Lakefront Recreation:
a. Scope: Signs shall pertain exclusively to the business carried on within the building.
b. Lighting: Signs may be illuminated, but no flashing or moving illumination shall be permitted.
c. Number: One monument sign is permitted per property regardless of the number of
businesses there. Properties with frontage on Muskegon Lake are permitted an additional
monument or pole sign on the water frontage only.
d. Wall, Awning or Braquet Signs, Size: Signs shall not exceed ten (10) percent of the surface
area of the commercial portion of the front building and may be placed on any wall. In the
case where the building is over one hundred feet (100’) from the road, this allotment may be
15% of the front face of the storefront. In the case where the building is over 300 feet from
the road, this allotment may be 20% of the front face of the storefront. In the case where the
property has parallel frontage on at least one major street or corner frontage on at least one
major street, this allotment may be 15% of the front face of the storefront.
e. Wall, Awning or Braquet Signs, Placement: Signs shall be placed against the principal
building or on a canopy. Signs shall not project above the roof line or cornice. No wall sign
shall interrupt or conceal the architectural details of a building. A sign attached to a mansard
shall be considered a wall sign.
f. Changeable copy or message boards shall be part of a fixed, permanent sign and shall have
rigid letters. Electronic message boards are prohibited.
g. Electronic message boards, provided:
1) One electronic message board shall be permitted per premise.
2) Electronic message boards shall be dimmed at dusk.
h. Free-standing signs:
1) Setback: The leading edge of the sign must be out of the public right-of-way. Signs must
be a minimum of 10 feet from a neighboring sign.
2) Clear vision: Signs shall not obstruct clear vision requirements for motorists.
3) Area and height: Signs shall comply with the area requirements of Table II and shall not
exceed eight feet (8’) in height. However, any parcel with frontage on a highway shall
be allowed to follow the height restrictions of Table II.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend section 2334 of the zoning ordinance to modify the rules on electronic message
board signs and to allow them in B-1, Limited Business Districts and WM, Waterfront Marine
Districts, as well as at churches in all zoning districts and all business that have been granted a special
use permit in residential districts.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
NEW LANGUAGE
Deletions are crossed out and additions are in bold.
6. Permitted signs in all residential and mobile home park districts:
a. Entranceway monument signs are permitted for residential developments of up to
twelve (12) square feet. One sign for each major public road frontage may be
provided. Signs shall not exceed eight feet in height.
b. Internally illuminated monument signs of up to thirty-two (32) square feet, not
exceeding eight (8) feet in height, and internally lit wall signs up to twenty-four (24)
feet for lawful institutional uses such as churches and schools. [amended 7/06]
c. Legal business uses in residential districts are permitted signage as allowed in the B-1
zoning district, except for those uses otherwise addressed in this section. [amended
4/02]
d. One (1) non-illuminated wall sign of up to eight (8) square feet for a home occupation.
[amended 12/01]
e. Changeable copy or message boards shall be part of a fixed, permanent sign and shall
have rigid letters. Electronic message boards are prohibited.
f. Electronic message boards shall be permitted for all churches and businesses
granted a special use permit to operate in a residential district, provided:
4) One electronic message board shall be permitted per premise.
5) Electronic message boards shall be dimmed at dusk.
6) Electronic message boards shall not be permitted for home businesses.
8. Permitted signs in the B-1, Waterfront Marine Zone, Open Space Conservation, Open Space
Recreation, and Lakefront Recreation:
a. Scope: Signs shall pertain exclusively to the business carried on within the building.
b. Lighting: Signs may be illuminated, but no flashing or moving illumination shall be permitted.
c. Number: One monument sign is permitted per property regardless of the number of
businesses there. Properties with frontage on Muskegon Lake are permitted an additional
monument or pole sign on the water frontage only.
d. Wall, Awning or Braquet Signs, Size: Signs shall not exceed ten (10) percent of the surface
area of the commercial portion of the front building and may be placed on any wall. In the
case where the building is over one hundred feet (100’) from the road, this allotment may be
15% of the front face of the storefront. In the case where the building is over 300 feet from
the road, this allotment may be 20% of the front face of the storefront. In the case where the
property has parallel frontage on at least one major street or corner frontage on at least one
major street, this allotment may be 15% of the front face of the storefront.
e. Wall, Awning or Braquet Signs, Placement: Signs shall be placed against the principal
building or on a canopy. Signs shall not project above the roof line or cornice. No wall sign
shall interrupt or conceal the architectural details of a building. A sign attached to a mansard
shall be considered a wall sign.
f. Changeable copy or message boards shall be part of a fixed, permanent sign and shall have
rigid letters. Electronic message boards are prohibited.
g. Electronic message boards, provided:
1) One electronic message board shall be permitted per premise.
2) Electronic message boards shall be dimmed at dusk.
h. Free-standing signs:
1) Setback: The leading edge of the sign must be out of the public right-of-way. Signs must
be a minimum of 10 feet from a neighboring sign.
2) Clear vision: Signs shall not obstruct clear vision requirements for motorists.
3) Area and height: Signs shall comply with the area requirements of Table II and shall not
exceed eight feet (8’) in height. However, any parcel with frontage on a highway shall
be allowed to follow the height restrictions of Table II.
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City 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
11th day of July, 2017, 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 the
Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept
and will be or have been made available as required thereby.
DATED: ___________________, 2017. __________________________________________
Ann Meisch, 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
Please take notice that on July 11, 2017, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2334 of the zoning ordinance to amend the rules on electronic
message board signs and to allow them in B-1, Limited Business Districts and WM, Waterfront
Marine Districts, as well as at churches in all zoning districts and all business that have been
granted a special use permit in residential districts. 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 days from the date of this publication.
Published ____________________, 2017. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
12
Commission Meeting Date: July 11, 2017
Date: July 6, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Rezoning request for several properties to R-2, Single Family
Medium Density Residential District (SECOND READING)
SUMMARY OF REQUEST:
Staff initiated request to rezone several properties from R-1, Single Family Low Density
Residential District to R-2, Single Family Medium Density Residential District.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:
The Planning Commission unanimously recommended approval of the request at their June 15
meeting, with one member absent.
1
2
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO.
An ordinance to amend the zoning map of the City to provide for a zone change for several
properties to R-2, Single Family Medium Density Residential District.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City of Muskegon is hereby amended to change the zoning for several
properties (see map) to R-2, Single Family Medium Density Residential District.
This ordinance adopted:
Ayes:
Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: __________________________
Ann Meisch, MMC
City Clerk
3
CERTIFICATE
(Rezoning of several properties to R-2, Single Family Medium Density Residential District)
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 11th day of July, 2017, 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and
that minutes were kept and will be or have been made available as required thereby.
DATED: ___________________, 2017 ________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
4
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on July 11, 2017, the City Commission of the City of Muskegon adopted an
ordinance amending the zoning map to provide for the change of zoning for several properties (see
map) to R-2, Single Family Medium Density Residential District.
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 days from the date of this publication.
Published ____________________, 2017 CITY OF MUSKEGON
By ___________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
5
Commission Meeting Date: July 11, 2017
Date: July 6, 2017
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Rezoning request for several properties to R-3, Single Family High
Density Residential District – SECOND READING
SUMMARY OF REQUEST:
Staff initiated request to rezone several properties from R-1, Single Family Low Density
Residential District to R-3, Single Family High Density Residential District.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:
The Planning Commission unanimously recommended approval of the request at their June 15
meeting, with one member absent.
1
2
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO.
An ordinance to amend the zoning map of the City to provide for a zone change for several
properties to R-3, Single Family High Density Residential District.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City of Muskegon is hereby amended to change the zoning for several
properties (see map) to R-3, Single Family High Density Residential District.
This ordinance adopted:
Ayes:
Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: __________________________
Ann Meisch, MMC
City Clerk
3
CERTIFICATE
(Rezoning of several properties to R-3, Single Family High Density Residential District)
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 11th day of July, 2017, 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and
that minutes were kept and will be or have been made available as required thereby.
DATED: ___________________, 2017 ________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
4
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on July 11, 2017, the City Commission of the City of Muskegon adopted an
ordinance amending the zoning map to provide for the change of zoning for several properties (see
map) to R-3, Single Family High Density Residential District .
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 days from the date of this publication.
Published ____________________, 2017 CITY OF MUSKEGON
By ___________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
5
Commission Meeting Date: July 11, 2017
Date: July 5, 2017
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Public Hearing for Brownfield Plan Amendment
and Development and Reimbursement Agreement
for Liberty Building (formerly Ameribank)
Redevelopment Project
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution approving and adopting the
amendment to the Brownfield Plan and to approve the Development and Reimbursement Agreement. The
amendments are for property to be purchased by Liberty Development, LLC.
FINANCIAL IMPACT: Brownfield Tax Increment Financing will be used to reimburse the developer and the City for
“eligible expenses” incurred in association with development of the Liberty Building project. Liberty Development,
LLC cost for the development of the property is approximately $6.88 million in private investment, resulting in a
substantial increase in the local and school taxes generated by the property.
“Eligible Expenses” would be reimbursed starting in 2019. The estimated tax capture and payment schedule is
included as Table 2 in the proposed Brownfield Plan Amendment.
During the last five years of the plan (estimated to be 2043-2048), the BRA is authorized to capture local taxes for
five years for deposit into a Local Brownfield Revolving Fund.
The Development and Reimbursement Agreement provides the structure for the capture of taxes and the
reimbursement to Liberty Development, LLC and the City of Muskegon for eligible expenses.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold a public hearing for approval of the Brownfield Plan Amendment for the
Liberty Building Redevelopment Project and approve the attached resolution and authorize the Mayor and Clerk to
sign the resolution, and to approve the Development and Reimbursement Agreement between Liberty
Development, LLC, the City of Muskegon and the City of Muskegon Brownfield Redevelopment Authority.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public hearing for July 11, 2017 at
their June 27, 2017 meeting. Since that time, a notice of the public hearing has been sent to taxing jurisdictions. In
addition, the Brownfield Redevelopment Authority approved the Plan amendment and the Development and
Reimbursement Agreement on June 15, 2017 and recommends that the Muskegon City Commission approve the
Plan Amendment and Development and Reimbursement Agreement.
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT AND
DEVELOPMENT AND REIMBURSEMENT AGREEMENT
Liberty Building Redevelopment Project
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of
Muskegon, County of Muskegon, Michigan (the "City"), held in the City Commission
Chambers, on the 11th day of July 2017, at 5:30 p.m., prevailing Eastern Time.
PRESENT: Members
__________________________________________________________________
__________________________________________________________________
ABSENT: Members
__________________________________________________________________
The following preamble and resolution were offered by Commissioner
_________________ and supported by Commissioner _________________:
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a
Brownfield Plan Amendment to add the Liberty Building Redevelopment Project;
and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the Authority has forwarded the Development and
Reimbursement Agreement to the City Commission requesting its approval of the
Development and Reimbursement Agreement; and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the taxing jurisdictions levying taxes subject to capture to express
their views and recommendations regarding the Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 10 days has passed since the City Commission
provided notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on July 11, 2017.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. That the Brownfield Plan constitutes a public purpose under Act 381.
2. That the Brownfield Plan meets all the requirements of Section 13(1) of
Act 381.
3. That the proposed method of financing the costs of the eligible
activities, as identified in the Brownfield Plan and defined in Act 381, is feasible
and the Authority has the authority to arrange the financing.
4. That the costs of the eligible activities proposed in the Brownfield Plan
are reasonable and necessary to carry out the purposes of Act 381.
5. That the amount of captured taxable value estimated to result from the
adoption of the Brownfield Plan is reasonable.
6. That the Brownfield Plan in the form presented is approved and is
effective immediately.
7. That the Development and Reimbursement Agreement is approved
and is effective immediately.
8. That all resolutions or parts of resolutions in conflict herewith shall be
hereby rescinded.
Be It Further Resolved that the Mayor and City Clerk are hereby
authorized to execute all documents necessary or appropriate to implement the
provisions of the Brownfield Plan.
AYES: Members
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
NAYS:
Members__________________________________________________________
__________________________________________________________________
RESOLUTION DECLARED ADOPTED.
_____________________________
Ann Marie Meisch, City Clerk
_____________________________
Stephen J. Gawron, Mayor
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held on July 11, 2017, and that said
meeting was conducted and public notice of said meeting was given pursuant to
and in full compliance with the Open Meetings Act, being Act 267, Public Acts of
Michigan, 1976, as amended, and that the minutes of said meeting were kept and
will be or have been made available as required by said Act.
_____________________________
Ann Marie Meisch, City Clerk
DEVELOPMENT AND REIMBURSEMENT AGREEMENT
880 FIRST STREET, MUSKEGON
THIS DEVELOPMENT AND REIMBURSEMENT AGREEMENT (the
“Agreement”) is made as of June 15, 2017, between the CITY OF MUSKEGON, a Michigan
municipal corporation (the “City”), whose address is 933 Terrace Street, Muskegon, Michigan
49440, the CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY, a
Michigan public body corporate (the “Authority”), whose address is 933 Terrace Street,
Muskegon, Michigan 49440, the CITY OF MUSKEGON DOWNTOWN DEVELOPMENT
AUTHORITY (the “DDA”) whose address is 933 Terrace Street, Muskegon, Michigan 49440,
and LIBERTY DEVELOPMENT, LLC, a Michigan limited liability company, whose address
is 272 West Clay Avenue, Muskegon, Michigan, 49440 (together with its successors and assigns,
the “Property Owner”).
Recitals
A. Pursuant to the Brownfield Redevelopment Financing Act, Act 381 of the Public
Acts of Michigan of 1996 as amended (“Act 381”) the City adopted a Brownfield Plan
Amendment on June 15, 2017 (the “Brownfield Plan Amendment”) to add 0.57 acres of land at
880 First Street, City of Muskegon, Michigan which is legally described in the attached Exhibit
A (the “Property”);
B. The Property is included in the Brownfield Plan Amendment as an “eligible
property” because it is a “facility” as defined by Part 201 of the Natural Resources and
Environmental Protection Act (“Part 201”). The Property Owner is not a liable party, under Part
201, for remediation of any existing contamination on the Property.
C. The Property Owner will conduct Eligible Activities (as defined in Act 381) on
the Property in order to address environmental and other brownfield conditions and to position
the Property for redevelopment as a mixed use development, including residential, office, and
various commercial uses (the “Project”). In addition, the City plans to conduct certain Eligible
Activities (specifically infrastructure improvements) in support of the project on immediately
adjacent, publicly owned parcels and right-of-ways.
D. The Project will include department specific activities, demolition activities, lead
and asbestos abatement activities, site preparation activities, infrastructure improvements,
Brownfield Plan Amendment and work plan preparation, contingency, and interest, all as
described in the Brownfield Plan Amendment and eligible for reimbursement under Act 381.
The total amount of the Eligible Activities in the Brownfield Plan Amendment, including
contingency and interest, is $1,941,865 (the “Total Eligible Brownfield TIF Costs”).
E. The Eligible Activities will facilitate redevelopment of the Property which will
improve the environmental and aesthetic condition of the Property, increase employment within
the City, increase the tax base within the City, and otherwise enhance the economic vitality,
environmental health and quality of life in the City.
F. Act 381 permits the Authority to capture and use the school tax (where
applicable) and local property tax revenues (both real and personal property) generated from the
incremental increase in property value of a redeveloped brownfield site constituting an “eligible
property” under Act 381 (the “Brownfield TIF Revenue”) to pay or to reimburse the cost of
Eligible Activities conducted on the “eligible property”.
G. The Property is located within the City of Muskegon Downtown District; therefore,
the DDA has the authority to capture tax increment revenues generated by the levy of certain
taxes on the property pursuant to the City of Muskegon Downtown Development Authority
Development Plan and TIF Plan (the “DDA Plan”),
H. By signing this Agreement, the DDA agrees to forego any capture of Brownfield TIF
Revenue on the Property until all obligations described in the Brownfield Plan Amendment (the
“Plan”) are met. has
I. In accordance with Act 381, the parties desire to establish a procedure for using
the available Brownfield TIF Revenue generated from the Property to reimburse the Property
Owner and the City for completion of Eligible Activities on the Property in an amount not to
exceed the Total Eligible Brownfield TIF Costs.
NOW, THEREFORE, the parties agree as follows:
1. Interlocal Agreement.
a) Transfer and Use of Tax Increment Revenues. Only upon affirmative vote by
City of Muskegon approving the Plan, shall the tax increment revenues captured
by the DDA generated by the Property be transferred to the BRA to reimburse
approved Eligible Activities.
b) Limitation to Tax Increment Revenues from the Property. The DDA shall only
transfer to the BRA the tax increment revenues generated by the Property to
reimburse approved Eligible Activity costs identified in “Attachment C Table 1”
in the approved Plan and authorized by Act 381. Upon conclusion or dissolution
of the Plan, all tax increment revenues generated by the Property shall be captured
by the DDA as stated in the DDA Plan.
c) DDA Obligation subordinate to Existing Bonds. This DDA’s obligation to
transfer tax increment revenues to the Authority pursuant to this Agreement is
subordinate to and contingent upon, the ability of the DDA to capture sufficient
tax increment revenues from the other remaining property in its Downtown
District to pay its annual debt service obligations. In the event that the DDA does
not have sufficient funds from tax increment revenues to pay its annual debt
service obligations, then the DDA shall not be obligated to transfer tax increment
revenues from the Property to the Authority in that year and so long as a shortfall
exists.
d) Authority as Agent under this Agreement. The parties designate the Authority as
the agent to receive and disburse all tax increment revenues generated by the
2
Property until such time as all obligations of the approved Plan have been
satisfied.
e) Effective Date. The Agreement shall commence upon its approval by the
legislative bodies of the DDA and Authority and duly executed by their
authorized representatives and filed with the Muskegon County Clerk and
Secretary of State of the State of Michigan as required by Act 7.
f) Severability. To the extent that any provisions contained in this Agreement are
deemed unenforceable, to the extent possible, the remaining terms shall remain in
effect.
g) Term. The parties agree that the use of Brownfield TIF Revenue from the
Property to reimburse Eligible Activities, Authority administration fees, make
deposits to the State Revolving Fund and the Local Brownfield Revolving Fund
shall begin once tax increment revenues are collected from the eligible property,
which will occur after the official approval of the Plan by the Muskegon City
Council. This contract extends until all obligations under this contract are met.
2. Reimbursement Source. During the Term (defined below in paragraph 3), and except as set
forth in Paragraph 4 below, the Authority shall reimburse the Property Owner and City for the
cost of Eligible Activities conducted on the Property from the Brownfield TIF Revenue in
accordance with the Plan. The amount reimbursed to Property Owner and City for the Eligible
Activities shall not exceed the lesser of (a) the actual cost of Eligible Activities plus interest, or
(b) the Total Eligible Brownfield TIF Costs.
3. Capture of Taxes. The Authority shall capture Brownfield TIF Revenue from the Property
for the purposes described in Paragraph 5 below until the earlier the period authorized under
subsection (4) and (5) of Section 13 of Act 381 or 30 years (the “Term”). The capture of state
tax increment revenue is contingent upon the approval of an Act 381 Work Plan by the
Michigan Strategic Fund.
4. Reimbursement Process.
a) The Property Owner and City shall submit to the Authority a “Request for Cost
Reimbursement” of Eligible Activities paid for and consistent with the approved
Plan. The Request for Cost Reimbursement must include documentation
sufficient for the Authority to determine whether the costs incurred were for
Eligible Activities, including detailed construction draws or invoices and proof
of payment or lien waivers. Copies of all invoices for Eligible Activities must
note what Eligible Activities they support.
b) Within forty-five (45) days after receiving a Request for Cost Reimbursement,
the Authority shall either approve or deny the use of Brownfield TIF Revenue for
reimbursement. The Property Owner and City shall cooperate with the
Authority’s review by providing information and documentation to supplement
3
the Request for Cost Reimbursement which may be reasonably requested by the
Authority during its review period. Reimbursement will be made as Brownfield
TIF Revenue is available. Brownfield TIF Revenue will be first be used to pay
the Authority’s Administrative Fee (annually calculated as 10% of state and local
tax increment revenue capture) and second to reimburse Eligible Activities. The
Property Owner and City will be reimbursed proportionately under the following
ratio: 90% of available Brownfield TIF Revenue will be used to reimburse the
Property Owner and 10% of available Brownfield TIF Revenue will be used to
reimburse the City. If a partial payment is made by the Authority because of
insufficient Brownfield TIF Revenue, the Authority shall make additional
payments toward the remaining amount within thirty (30) days of its receipt of
additional Brownfield TIF Revenue from the Property until all amounts approved
have been fully paid or the end of the Term, whichever occurs first. The
Authority is not required to reimburse Eligible Activities costs from any source
other than the Property’s Brownfield TIF Revenues. If the Authority determines
that the requested costs are deemed ineligible for reimbursement, the Authority
shall give notification in writing of its reasons for rejection within the forty-five
(45) day time period for review.
c) Interest at the rate of five percent (5%) per annum shall accrue from and after
the date of approval of the first Request for Cost Reimbursement by the
Authority until the entire amount due is reimbursed by the Authority under this
Agreement
d) The Authority will capture tax increment revenues for a period not to exceed 5
years after the Eligible Activities have been reimbursed for deposit into the
Authority’s Local Brownfield Revolving Fund (LBRF).
5. Adjustments.
a) Property Owner agrees to waive any appeal of any tax assessment or
reassessment of the Property provided, however, that this waiver shall not be
binding on any person or entity who acquires title to all or any portion of the
Property after the date of this Agreement.
b) If, due to an appeal of any tax assessment or reassessment of any portion of the
Property, or for any other reason the Authority is required to reimburse any
Brownfield TIF Revenue previously paid to any tax levying unit of government,
the Authority may deduct the amount of any such reimbursement, including
interest and penalties, from any amounts due and owing the Property Owner or
City. If all amounts due the Property Owner and City under this Agreement have
been fully paid or the Authority is no longer obligated to make any further
payments to the Property Owner and City, the Authority shall invoice the
Property Owner and City for the amount of such reimbursement and the Property
Owner and City shall pay the Authority such invoiced amount within forty-five
(45) days of the receipt of the invoice.
4
7. Legislative Authorization. This Agreement is governed by and subject to the
restrictions set forth in Act 381. If there is legislation enacted in the future that alters or affects
the amount of Brownfield TIF Revenue subject to capture, eligible property, or Eligible
Activities, then the parties’ rights and obligations under this Agreement shall be modified
accordingly as required by law, or by agreement of the parties.
8. Notices. All notices shall be given by registered or certified mail addressed to the
parties at their respective addresses as shown above. Any notice to the City shall be directed to
its City Clerk. Any party may change the address by written notice sent by registered or
certified mail to the other party.
9. Assignment. This Agreement and the rights and obligations under this Agreement
shall not be assigned or otherwise transferred by any party without the consent of the other
party, which shall not be unreasonably withheld, provided, however, the Property Owner may
assign its interest in this Agreement to an affiliate without the prior written consent of the
Authority, provided that any such assignee shall acknowledge to the Authority in writing on or
prior to the effective date of such assignment its obligations upon assignment under this
Agreement, and provided, further, that the Property Owner may make a collateral assignment
of the Brownfield TIF Revenue for project financing purposes. As used in this paragraph,
“affiliate” means any corporation, company, partnership, limited liability company, trust, sole
proprietorship or other entity or individual which (a) is owned or controlled by such the
Property Owner, (b) owns or controls the Property Owner or (c) is under common ownership or
control with the Property Owner. This Agreement shall be binding upon any successors or
permitted assigns of the parties.
10. Entire Agreement. This Agreement supersedes all agreements previously made
between the parties relating to the subject matter. There are no other understandings or
agreements between them.
11. Non-Waiver. No delay or failure by any party to exercise any right under this
Agreement, and no partial or single exercise of that right, constitutes a waiver of that or any
other right, unless otherwise expressly provided herein.
12. Headings. Headings in this Agreement are for convenience only and shall not be
used to interpret or construe its provisions.
13. Governing Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of Michigan.
14. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original but all of which together shall constitute one and the
same instrument.
5
15. Binding Effect. The provisions of this Agreement shall be binding upon and inure
to the benefit of all the parties and their respective heirs, legal representatives, successors and
assigns.
16. Electronic Signatures. Executed counterparts of this Agreement delivered by fax
or other electronic means shall be considered originals for all purposes.
(Signatures appear on the following page)
6
WHEREFORE, this Agreement has been executed as of the date first written above.
LIBERTY DEVELOPMENT, LLC
By:
Its: ________________________________
PROPERTY OWNER
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
By:
Its: ________________________________
AUTHORITY
CITY OF MUSKEGON DOWNTOWN
DEVELOPMENT AUTHORITY
By:
Its: ________________________________
DDA
CITY OF MUSKEGON
By: ______________________________________
Its: ________________________________
CITY
(Signature Page to Development and Reimbursement Agreement – 880 First Street)
2
EXHIBIT A
IDENTIFICATION OF PROPERTY
Property in the City of Muskegon, County of Muskegon, State of Michigan, to wit:
Property Address: 880 First Street, City of Muskegon, Muskegon County, Michigan
Property I.D. No.: 61-24-205-310-0012-00
CITY OF MUSKEGON REVISED PLAT 1903 LOTS 12-15 BLOCK 310 & the westerly 10’ of
lot 16 of block 310.
Exhibit A-1
MJ_DMS 26936130v9
MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
AMENDMENT
880 1st Street, Muskegon, Michigan 49440
PREPARED FOR Muskegon Brownf eld Redevelopment Authority
933 Terrace Street
Muskegon, Michigan 49440
Contact Person: Mike Franzak
Email: [email protected]
Phone: (231) 724-6982
PREPARED BY AKT Peerless
25 Ionia Avenue
Grand Rapids, Michigan 49503
Contact Person: Dan Wells
Email: [email protected]
Phone: (616) 608-0229
PROJECT # 12237F
REVISION DATE June 14, 2017
BRA APPROVAL
CITY APPROVAL
Table of Contents
1.0 INTRODUCTION ........................................................................................................................... 4
2.0 GENERAL PROVISIONS ................................................................................................................. 4
2.1 DESCRIPTION OF ELIGIBLE PROPERTY (SECTION 13 (L)(H) ...................................................... 5
2.2 BASIS OF ELIGIBILITY (SECTION 13 (1)(H) , SECTION 2 (M)), SECTION 2(R)............................. 5
2.3 SUMMARY OF ELIGIBLE ACTIVITIES AND DESCRIPTION OF COSTS (SECTION 13 (1)(A),(B)) ... 5
2.4 ESTIMATE OF CAPTURED TAXABLE VALUE AND TAX INCREMENT REVENUES (SECTION
13(1)(C)); IMPACT OF TAX INCREMENT FINANCING ON TAXING JURISDICTIONS (SECTION
13(1)(G), SECTION 2(EE)) ........................................................................................................ 7
2.5 PLAN OF FINANCING (SECTION 13(1)(D)); MAXIMUM AMOUNT OF INDEBTEDNESS
(SECTION 13(1)(E)) .................................................................................................................. 8
2.6 DURATION OF BROWNFIELD PLAN (SECTION 13(1)(F)) .......................................................... 8
2.7 EFFECTIVE DATE OF INCLUSION IN BROWNFIELD PLAN ......................................................... 8
2.8 DISPLACEMENT/RELOCATION OF INDIVIDUALS ON ELIGIBLE PROPERTY (SECTION 13(1)(I-L))
................................................................................................................................................ 8
2.9 LOCAL SITE REMEDIATION REVOLVING FUND (“LSRRF”) (SECTION 8, SECTION 13(1)(M)) ..... 9
2.10 OTHER INFORMATION............................................................................................................. 9
ATTACHMENTS
A. achment A ...................................................................................................... Site Maps and Photographs
Figure 1 – Scaled Property Loca on Map
Figure 2 – Eligible Property Boundary Map
A achment B ...................................................................................................................... Legal Descrip on
A achment C ........................................................................................................................................ Tables
Table 1 – Eligible Ac vi es
Table 2 – Tax Increment Revenue Es mates
Table 3 – Reimbursement Alloca on Schedule
I
PROJECT SUMMARY
PROJECT NAME Liberty Building - Redevelopment and Reuse of
Proper es Located at 880 1st Street, Muskegon,
Michigan
DEVELOPER Liberty Development, LLC
272 West Clay Avenue PO Box 732
Muskegon, Michigan 49440
Gary Post
(231) 578-2033
ELIGIBLE PROPERTY LOCATION The Eligible Property is located at 880 1st Street,
Muskegon, Michigan. Parcel ID Number 61-24-205-310-
0012-00.
TYPE OF ELIGIBLE PROPERTY Facility
SUBJECT PROJECT The Liberty Building Redevelopment Project (Project)
DESCRIPTION consists of the redevelopment of the subject property,
which is located at 880 1st Street in the City of
Muskegon. This Project will include the rehabilita on of
the exis ng 54,122-square foot, 5-story commercial
building. The building will be rehabilitated to
accommodate f rst f oor retail tenants, second and third
f oor commercial office tenants, and fourth and f h
f oor residen al condominiums. The redevelopment
plans also include the incorpora on of underground
parking. This Project will ul mately put the
underu lized property back to produc ve use and
return it to the City’s tax rolls.
The Project is seeking approval of Tax Increment
Financing (TIF). Rehabilita on and construc on are
expected to begin in late winter of 2017.
ELIGIBLE ACTIVITIES Department Specif c Ac vi es, Demoli on, Lead and
Asbestos Survey and Abatement, Site Prepara on,
Infrastructure Improvements, and Prepara on of a
Brownf eld Plan and Act 381 Work Plan.
DEVELOPER’S REIMBURSABLE $ 1,161,853 (Est. Eligible Ac vi es & Con ngency)
COSTS $ 780,011 (Interest)
$ 1,941,864
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 1
REVISION DATE: JUNE 14, 2017
MAXIMUM DURATION OF 30 years
CAPTURE
ESTIMATED TOTAL CAPITAL
INVESTMENT $6.85 million
INITIAL TAXABLE VALUE $0 (City Owned)
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 2
REVISION DATE: JUNE 14, 2017
LIST OF ACRONYMS AND DEFINITIONS
BEA Baseline Environmental Assessment (Michigan process
to provide new property owners and/or operators with
exemp ons from environmental liability)
BFP OR PLAN Brownf eld Plan
DEVELOPER Liberty Development, LLC
ELIGIBLE PROPERTY Property for which eligible ac vi es are iden f ed under
a Brownf eld Plan, referred to herein as “the subject
property”.
ESA Environmental Site Assessment
LBRF Local Brownf eld Revolving Fund
MBRA Muskegon Brownf eld Redevelopment Authority
MDEQ Michigan Department of Environmental Quality
MEDC Michigan Economic Development Corpora on
MSF Michigan Strategic Fund
PHASE I ESA An environmental historical review and site inspec on
(no soil and/or groundwater sampling and analysis)
PHASE II ESA Environmental subsurface inves ga on (includes soil,
soil gas, and/or groundwater sampling and analysis)
RCC Residen al Cleanup Criteria
SUBJECT PROPERTY The Eligible Property, located at 880 1st Street,
northeast of the intersec on of 1st Street and W. Clay
Street, in Muskegon, Michigan. It comprises one parcel.
TIF Tax Increment Financing (TIF describes the process of
using TIR—i.e., TIF is the use of TIR to provide f nancial
support to a project)
TIR Tax Increment Revenue (new property tax revenue,
usually due to redevelopment and improvement that is
generated by a property a er approval of a Brownf eld
Plan)
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 3
REVISION DATE: JUNE 14, 2017
BROWNFIELD PLAN
880 1st Street, Muskegon, Michigan 49440
1.0 Introduction
The City of Muskegon, Michigan (the “City”), established the Muskegon Brownf eld Plan on April 14,
1998, pursuant to Michigan Public Act 381 of 1996, as amended (“Act 381”). The primary purpose of Act
381 is to encourage the redevelopment of eligible property by providing economic incen ves through
tax increment f nancing for certain eligible ac vi es.
The main purpose of this Brownf eld Plan is to promote the redevelopment of and investment in certain
“Brownf eld” proper es within the City. Inclusion of subject property within Brownf eld plans will
facilitate f nancing of environmental response and other eligible ac vi es at eligible proper es, and will
also provide tax incen ves to eligible taxpayers willing to invest in revitaliza on of eligible sites,
commonly referred to as “Brownf elds.” By facilita ng redevelopment of Brownf eld proper es,
Brownf eld plans are intended to promote economic growth for the benef t of the residents of the City
and all taxing units located within and benef ted by the Authority.
The iden f ca on or designa on of a developer or proposed use for the Eligible Property that is the
subject of this Brownf eld Plan (the “subject property”) shall not be integral to the effec veness or
validity of this Brownf eld Plan. This Brownf eld Plan is intended to apply to the subject property
iden f ed in this Brownf eld Plan and, if tax increment revenues are proposed to be captured from that
subject property, to iden fy and authorize the eligible ac vi es to be funded by such tax increment
revenues. Any change in the proposed developer or proposed use of the subject property shall not
necessitate an amendment to this Brownf eld Plan, affect the applica on of this Brownf eld Plan to the
subject property, or impair the rights available to the Authority under this Brownf eld Plan.
This Brownf eld Plan is intended to be a living document, which may be modif ed or amended in
accordance with the requirements of Act 381, as necessary to achieve the purposes of Act 381. The
applicable sec ons of Act 381 are noted throughout the Brownf eld Plan for reference purposes.
This Brownf eld Plan contains informa on required by Sec on 13(1) of Act 381.
The Liberty Building (Project) consists of the redevelopment of the exis ng 54,122-square foot, 5-story
commercial building. The building will be rehabilitated to accommodate f rst f oor retail tenants, second
and third f oor commercial office tenants, and fourth and f h f oor residen al condominiums. This
Project will ul mately put an underu lized property back to produc ve use, increase urban density and
will return the property to the City’s tax rolls.
The Project is seeking approval of Tax Increment Financing (TIF). Rehabilita on and construc on are
expected to begin in late winter of 2017.
2.0 General Provisions
The following sec ons detail informa on required by Act 381.
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 4
REVISION DATE: JUNE 14, 2017
2.1 Description of Eligible Property (Section 13 (l)(h)
The Eligible Property (“subject property”) is located at 880 1st Street, in the southeast ¼ of Sec on 19
(Township 10 North /Range 16 West) in Muskegon, Michigan. The subject property is situated northeast
of the intersec on of 1st Street and W. Clay Street. The subject property consists of a 0.46-acre parcel.
The subject property is located in an area of Muskegon (“City”) that is characterized by commercial and
residen al proper es and vacant lots. The subject property is located within the City’s Business
Improvement District and Downtown Development District.
The following table describes the subject property. See A achment A, Figure 2 – Eligible Property
Boundary Map.
Eligible Property Informa on
Tax Iden fica on Basis of Brownfield Approximate
Address
Number Eligibility Acreage
880 1st Street 61-24-205-310-0012-00 Facility 0.46
The subject property is within the Mainstreet Form-Based Code zoning district (FBC-MS). It currently
contains a 5-story vacant commercial building (the former Ameribank building). Exterior por ons of the
subject property include landscaped areas.
A achment A includes site maps of the Eligible Property, refer to: Figure 1, Scaled Property Loca on Map
and Figure 2, Eligible Property Boundary Map (which includes lot dimensions). The legal descrip on of
the parcel included in the Eligible Property is presented in A achment B.
The parcel and all tangible real and personal property located thereon will comprise the Eligible
Property, which is referred to herein as the “subject property.”
2.2 Basis of Eligibility (Section 13 (1)(h) , Section 2 (m)), Section 2(r)
The subject property is considered “Eligible Property” as def ned by Act 381, Sec on 2 because: (a) the
subject property was previously u lized as commercial property; (b) it is located within the City of
Muskegon, a qualif ed local governmental unit, or “Core Community” under Act 381; and (c) the subject
property has been determined to be a “facility.”
The subject property most recently operated as a bank. The parcel was acquired by the City of Muskegon
through voluntary purchase in December 2015.
According to previous environmental inves ga ons conducted on the property, polynuclear aroma c
hydrocarbons (PNAs) (e.g., benzo(a)pyrene and dibenzo(a,h)anthracene) have been iden f ed in soil on
the property at concentra ons exceeding Michigan Department of Environmental Quality (MDEQ) Direct
Contact Cleanup Criteria.
2.3 Summary of Eligible Activities and Description of Costs (Section 13 (1)(a),(b))
The “eligible ac vi es” that are intended to be carried out at the subject property are considered
“eligible ac vi es” as def ned by Sec 2 of Act 381, because they include department specif c ac vi es,
demoli on, lead and asbestos survey and abatement, site prepara on, infrastructure improvements, and
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 5
REVISION DATE: JUNE 14, 2017
the prepara on of Brownf eld and Act 381 work plans (including cost tracking and reimbursement
request prepara on) (see Table 1).
A summary of the eligible ac vi es and the es mated cost of each eligible ac vity intended to be paid
for with Tax Increment Revenues from the subject property are shown in the table below
Es mated Cost of Reimbursable Eligible Ac vi es
Description of Eligible Activity Estimated Cost*
1. Department Specific Activities $ 9,500
2. Demolition $ 356,000
3. Lead and Asbestos Activities $ 93,500
4. Site Preparation $ 68,388
5. Infrastructure Improvements $ 450,310
Total Environmental and Non-Environmental Eligible Activities $ 977,698
6. 15% Contingency on Eligible Activities $ 146,655
7. Brownfield Plan & Act 381 WP Preparation Activities $ 37,500
Total Eligible Activities Cost with 15% Contingency $ 1,161,853
8. BRA Administration Fee $ 242,078
9. State Revolving Fund $ 124,845
10. Local Brownfield Revolving Fund (LBRF)** $ 255,492
11. Interest (calculated at 5%, simple)*** $ 780,011
Total Eligible Costs for Reimbursement $ 2,564,280
*Estimated costs are subject to approval by MSF. Any costs not approved by the MSF may become local only costs
paid out of captured tax increment revenues from locally levied millages (to the extent available).
**LBRF deposits will be made in accordance with Act 381.
***Interest is calculated annually at 5% simple interest on unreimbursed eligible activities, in accordance with
MBRA policy.
A detailed breakout of the eligible ac vi es and the es mated cost of each eligible ac vity intended to
be paid for with Tax Increment Revenues from the subject property is shown in A achment C, Table 1.
It is currently an cipated that construc on will begin in summer 2017 and be completed by spring 2018.
The Developer desires to be reimbursed for the costs of eligible ac vi es. Tax increment revenue
generated by the subject property will be captured by the Authority and used to reimburse the cost of
the eligible ac vi es completed on the subject property a er approval of this Brownf eld Plan and an
associated Reimbursement Agreement.
The costs listed in the table above are es mated costs and may increase or decrease depending on the
nature and extent of environmental contamina on and other unknown condi ons encountered on the
subject property. The actual cost of those eligible ac vi es encompassed by this Brownf eld Plan that
will qualify for reimbursement from tax increment revenues of the Authority from the subject property
shall be governed by the terms of a Reimbursement Agreement with the Authority (the “Reimbursement
Agreement”). No costs of eligible ac vi es will be qualif ed for reimbursement except to the extent
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 6
REVISION DATE: JUNE 14, 2017
permi ed in accordance with the terms and condi ons of the Reimbursement Agreement and/or the
Development Agreement.
In accordance with this Brownf eld Plan, and the associated Reimbursement Agreement, the amount
advanced by the Developer will be repaid by the Authority with interest at the rate set at 5% simple
interest, solely from the tax increment revenues realized from the Eligible Property. Payments will be
made to the full extent incremental property tax revenues are or become available for such purpose
under the Act. Based on the projected cost of eligible ac vi es, interest reimbursement in this
Brownf eld Plan is es mated at $780,011. However, if the actual cost of eligible ac vi es turns out to be
lower than the above es mates, interest reimbursement may be lower, subject to the 5% simple interest
calcula on.
Tax increment revenues will f rst be used to pay or reimburse administra ve expenses described in the
table above. The amount of school tax revenues, which will be used to reimburse the costs of
implemen ng eligible ac vi es at this site, will be limited to the cost of eligible ac vi es approved by
the MSF, with the interest rate provided above. In the event that the use of school tax revenues to
reimburse specif c eligible ac vi es is not approved by the MSF, these specif c ac vi es will be
reimbursed with local-only TIF (to the extent available).
2.4 Estimate of Captured Taxable Value and Tax Increment Revenues (Section 13(1)(c)); Impact of
Tax Increment Financing On Taxing Jurisdictions (Section 13(1)(g), Section 2(ee))
This Brownf eld Plan an cipates the capture of tax increment revenues to reimburse the Developer for
the costs of eligible ac vi es under this Brownf eld Plan in accordance with the Reimbursement
Agreement. A table of es mated tax increment revenues to be captured is a ached to this Brownf eld
Plan as A achment C, Table 2. Tax increment revenue capture is expected to begin in 2019.
The subject property is located within the City of Muskegon’s Downtown Development District, managed
by the Downtown Development Authority (DDA). The DDA has the authority to capture all tax increment
revenues other than the state educa on tax and local or intermediate school district taxes. However, it is
an cipated that an interlocal agreement will be executed between the DDA and the MBRA to allow all of
the DDA’s incremental revenue to be captured by the MBRA and used for the purposes described in this
plan.
The total es mated cost of the eligible ac vi es and other costs (including administra ve fees,
con ngency, interest and state and local brownf eld revolving fund deposits) to be reimbursed through
the capture of tax increment revenue is projected to be $2,564,280. The es mated effec ve ini al
taxable value for this Brownf eld Plan is $0, and is based on land and real property tax only. The ini al
taxable value of $0 is set in 2017, the year in which the eligible property was included in this plan.
Redevelopment of the subject property is expected to ini ally generate incremental taxable value in
2019 with the f rst signif cant increase in taxable value of approximately $1,668,311 beginning in 2019.
It is es mated that the Authority will capture the 2019 through 2048 tax increment revenues to
reimburse the cost of the eligible ac vi es, reimburse interest, make deposits to the State Brownf eld
Redevelopment Fund and LBRF and pay Authority administra ve fees. An es mated schedule of tax
increment revenue reimbursement is provided as A achment C, Table 3.
The captured incremental taxable value and associated tax increment revenue will be based on the
actual increased taxable value from all taxable improvements on the subject property and the actual
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 7
REVISION DATE: JUNE 14, 2017
millage rates levied by the various taxing jurisdic ons during each year of the plan, as shown in
A achment C, Tables 2 and 3. The actual tax increment captured will be based on taxable value set
through the property assessment process by the local unit of government and equalized by the County
and the millage rates set each year by the taxing jurisdic ons.
2.5 Plan of Financing (Section 13(1)(d)); Maximum Amount of Indebtedness (Section 13(1)(e))
Eligible ac vi es are to be f nanced by the Developer. The Authority will reimburse the Developer for the
cost of approved eligible ac vi es, but only from tax increment revenues generated from the subject
property as available, and subject to the Reimbursement Agreement and Development Agreement.
All reimbursements authorized under this Brownf eld Plan shall be governed by the Reimbursement
Agreement. The Authority shall not incur any note or bonded indebtedness to f nance the purposes of
this Brownf eld Plan. The inclusion of eligible ac vi es and es mates of costs to be reimbursed in this
Brownf eld Plan is intended to: (1) authorize the Authority to fund such reimbursements; and (2) provide
the DDA with relevant informa on necessary to form and execute an interlocal agreement to fund such
reimbursements. The inclusion of eligible ac vi es and es mates of costs to be reimbursed in this
Brownf eld Plan does not obligate the Authority to fund any reimbursement or to enter into the
Reimbursement Agreement providing for the reimbursement of any costs for which tax increment
revenues may be captured under this Brownf eld Plan, or which are permi ed to be reimbursed under
this Brownf eld Plan. The amount and source of any tax increment revenues that will be used for
purposes authorized by this Brownf eld Plan, and the terms and condi ons for such use and upon any
reimbursement of the expenses permi ed by the Brownf eld Plan, will be provided solely under the
Reimbursement Agreement contemplated by this Brownf eld Plan.
2.6 Duration of Brownfield Plan (Section 13(1)(f))
Current tax capture projec ons indicate the tax increment capture will con nue for 30 years. In no event
shall the dura on of the Brownf eld Plan exceed 35 years following the date of the resolu on approving
the Brownf eld Plan, nor shall the dura on of the tax capture exceed the lesser of the period authorized
under subsec on (4) and (5) of Sec on 13 of Act 381 or 30 years. Further, in no event shall the beginning
date of the capture of tax increment revenues be later than f ve years a er the date of the resolu on
approving the Brownf eld Plan.
2.7 Effective Date of Inclusion in Brownfield Plan
The subject property will become a part of this Brownf eld Plan on the date this Brownf eld Plan is
approved by the City of Muskegon. The date of tax capture shall commence during the year construc on
begins or the immediate following year—as increment revenue becomes available— but the beginning
date of tax capture shall not exceed f ve years beyond the date of the governing body resolu on
approving the Brownf eld Plan amendment.
2.8 Displacement/Relocation of Individuals on Eligible Property (Section 13(1)(i-l))
There are no persons or businesses residing on the Eligible Property, and no occupied residences will be
acquired or cleared; therefore there will be no displacement or reloca on of persons or businesses
under this Brownf eld Plan.
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REVISION DATE: JUNE 14, 2017
2.9 Local Brownfield Revolving Fund (“LBRF”) (Section 8, Section 13(1)(m))
The Authority has established a Local Brownf eld Revolving Fund (LBRF). The Authority will capture
incremental local and state school taxes to fund the LBRF, to the extent allowed by law. The rate and
schedule of incremental tax capture for the LBRF will be determined on a case-by-case basis.
Considera ons may include, but not be limited to the following: total capture dura on, total annual
capture, project economic factors, level of exis ng LBRF funding, projected need for LBRF funds, and
amount of school tax capture available in accordance with Act 381.
The amount of tax increment revenue authorized for capture and deposit in the LBRF is es mated at
$255,492.
2.10 Other Information
The tax capture breakdown of tax increment revenues an cipated to become available for use in this
Brownf eld Plan is summarized below.
There are 53.3479 non-homestead mills available for capture, with school millage equaling 24.0000 mills
(45%) and local millage equaling 29.3479 mills (55%). Approximately 35% of the project will include
homestead residen al property, which impacts the propor on of school and local tax capture. There are
35.3479 homestead mills available for capture, with school millage equaling 6.000 mills (17%) and local
millage equaling 29.3479 (83%). The Project is also an cipa ng approval of an Obsolete Property
Rehabilita on Act (OPRA) tax abatement which would abate 100% of local taxes for up to 12 years and
50% of state taxes for up to 6 years. The requested tax capture for environmental and non-
environmental eligible ac vi es breaks down as follows:
Tax Capture
Eligible Activities, Interest,
State to Local Tax Capture Contingency
MSF School tax capture (44.51%) $864,324
MSF Local tax capture (55.49%) $1,077,541
Local-Only tax capture $0
Total $1,941,865
BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI Page 9
REVISION DATE: JUNE 14, 2017
A achments
A achment A
Site Maps and Photographs
MUSKEGON EAST QUADRANGLE
MICHIGAN - MASKEGON COUNTY
7.5 MINUTE SERIES (TOPOGRAPHIC)
1 0 1 MILE
1000 0 1000 2000 3000 4000 5000 6000 7000 FEET
1 0 1 KILOMETER
MICHIGAN
QUADRANGLE LOCATION
IMAGE TAKEN FROM 1972U.S.G.S. TOPOGRAPHIC MAP
PHOTOREVISED 1980
SCALED PROPERTY LOCATION MAP DRAWN BY: ARR
DATE: 04/04/2017
880 1ST STREET
www.aktpeerless.com MUSKEGON, MICHIGAN FIGURE 1
PROJECT NUMBER: 12337F-2-25
W. WESTERN AVENUE
142.2'
PUBLIC ALLEY
1ST STREET
140.5' 140.5'
88
01
ST
ST
RE
ET
142.2'
W. CLAY AVENUE
LEGEND
= PROPERTY LINE
DRAWN BY: OGO
ELIGIBLE PROPERTY BOUNDARY MAP
DATE: 04/04/2017
880 1ST STREET
MUSKEGON, MICHIGAN 0 30 60
PROJECT NUMBER: 12337F-2-25 SCALE: 1" = 60'
www.aktpeerless.com
FIGURE 2
A achment B
Legal Descrip on(s)
CITY OF MUSKEGON REVISED PLAT 1903 LOTS 12-15 BLOCK 310 & the westerly 10’ of lot 16 of block
310.
A achment C
Tables
Table 1. Eligible Activities
Liberty Building
880 1st Street
Muskegon, MI
AKT Peerless Project No. 12337
As of June 12, 2017
ELIGIBLE ACTIVITIES COST SUMMARY
Estimated
Cost of
Eligible Activity
Department Specific Activities $ 9,500
Demolition $ 356,000
Lead and Asbestos Activities $ 93,500
Site Preparation Activities $ 68,388
Eligible Infrastructure Improvement Activities $ 450,310
TOTAL NON-ENVIRONMENTAL ELIGIBLE ACTIVITIES $ 968,198
Total Environmental and Non-Environmental Eligible Activities $ 977,698
15% Contingency on Eligible Activities $ 146,655
Brownfield Plan & Act 381 WP Preparation Activities $ 37,500
Total Eligible Activities Cost with 15% Contingency $ 1,161,853
Interest (calculated at 5%, simple) $ 780,011
Total Eligible Activities Cost, with Contingency & Interest $ 1,941,865
BRA Administration Fee $ 242,078
State Revolving Fund $ 124,845
Local Brownfield Revolving Fund (LBRF) $ 255,492
Total Eligible Costs for Reimbursement $ 2,564,280
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Table 2. Tax Increment Revenue Estimates
Liberty Building
880 1st Street
Muskegon, MI
AKT Peerless Project No. 12337b
As of June 12, 2017
Estimated TV Increase rate: 1.01
Plan Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Calendar Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Initial Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Post-Dev TV (Developer Estimated) Estimated New TV $ 1,668,311 $ 1,684,994 $ 1,701,844 $ 1,718,862 $ 1,736,051 $ 1,753,411 $ 1,770,945 $ 1,788,655 $ 1,806,541 $ 1,824,607 $ 1,842,853 $ 1,861,281 $ 1,879,894 $ 1,898,693
Estimated New TV (Residential Only) $ 583,909 $ 589,748 $ 595,645 $ 601,602 $ 607,618 $ 613,694 $ 619,831 $ 626,029 $ 632,289 $ 638,612 $ 644,998 $ 651,448 $ 657,963 $ 664,543
Estimated New TV (Land Only) $ 57,500 $ 58,075 $ 58,656 $ 59,242 $ 59,835 $ 60,433 $ 61,037 $ 61,648 $ 62,264 $ 62,887 $ 63,516 $ 64,151 $ 64,792 $ 65,440
Incremental Difference (New TV - Initial TV) $ 1,668,311 $ 1,684,994 $ 1,701,844 $ 1,718,862 $ 1,736,051 $ 1,753,411 $ 1,770,945 $ 1,788,655 $ 1,806,541 $ 1,824,607 $ 1,842,853 $ 1,861,281 $ 1,879,894 $ 1,898,693
School Capture Millage Rate $ 0.35
State Education Tax (SET) 6.0000 Incremental $ 6,929 $ 6,998 $ 7,068 $ 7,139 $ 7,211 $ 7,283 $ 10,626 $ 10,732 $ 10,839 $ 10,948 $ 11,057 $ 11,168 $ 11,279 $ 11,392
School Operating Tax 18.0000 Incremental $ 10,277 $ 10,380 $ 10,484 $ 10,589 $ 10,694 $ 10,801 $ 20,720 $ 20,927 $ 21,137 $ 21,348 $ 21,561 $ 21,777 $ 21,995 $ 22,215
School Total 24.0000 $ 17,206 $ 17,378 $ 17,552 $ 17,728 $ 17,905 $ 18,084 $ 31,346 $ 31,659 $ 31,976 $ 32,296 $ 32,618 $ 32,945 $ 33,274 $ 33,607
`
Abatement Value (school) - OPRA $ 12,323 $ 12,446 $ 12,571 $ 12,696 $ 12,823 $ 12,951
Abatement Value (school taxes) $ 12,323 $ 12,446 $ 12,571 $ 12,696 $ 12,823 $ 12,951 $ - $ - $ - $ - $ - $ - $ - $ -
Local Capture Millage Rate
County Museum 0.3221 Incremental $ 335 $ 338 $ 342 $ 345 $ 349 $ 352 $ 356 $ 359 $ 363 $ 367 $ 370 $ 374 $ 606 $ 612
County Veterans 0.0752 Incremental $ 78 $ 79 $ 80 $ 81 $ 81 $ 82 $ 83 $ 84 $ 85 $ 86 $ 86 $ 87 $ 141 $ 143
Senior Cit Svc 0.5000 Incremental $ 520 $ 525 $ 531 $ 536 $ 541 $ 547 $ 552 $ 558 $ 563 $ 569 $ 575 $ 580 $ 940 $ 949
Central Dispatch 0.3000 Incremental $ 312 $ 315 $ 318 $ 322 $ 325 $ 328 $ 331 $ 335 $ 338 $ 341 $ 345 $ 348 $ 564 $ 570
Comm College 2.2037 Incremental $ 2,293 $ 2,316 $ 2,339 $ 2,362 $ 2,386 $ 2,410 $ 2,434 $ 2,458 $ 2,483 $ 2,508 $ 2,533 $ 2,558 $ 4,143 $ 4,184
M.A.I.S.D 4.7580 Incremental $ 4,950 $ 5,000 $ 5,050 $ 5,100 $ 5,151 $ 5,203 $ 5,255 $ 5,308 $ 5,361 $ 5,414 $ 5,468 $ 5,523 $ 8,945 $ 9,034
City Op 10.0905 Incremental $ 10,499 $ 10,604 $ 10,710 $ 10,817 $ 10,925 $ 11,034 $ 11,145 $ 11,256 $ 11,369 $ 11,482 $ 11,597 $ 11,713 $ 18,969 $ 19,159
City Sanitation 3.0000 Incremental $ 3,121 $ 3,153 $ 3,184 $ 3,216 $ 3,248 $ 3,281 $ 3,313 $ 3,347 $ 3,380 $ 3,414 $ 3,448 $ 3,482 $ 5,640 $ 5,696
Hackley Library 2.4000 Incremental $ 2,497 $ 2,522 $ 2,547 $ 2,573 $ 2,598 $ 2,624 $ 2,651 $ 2,677 $ 2,704 $ 2,731 $ 2,758 $ 2,786 $ 4,512 $ 4,557
County Operating 5.6984 Incremental $ 5,929 $ 5,988 $ 6,048 $ 6,109 $ 6,170 $ 6,231 $ 6,294 $ 6,357 $ 6,420 $ 6,484 $ 6,549 $ 6,615 $ 10,712 $ 10,820
Local Total 29.3479 $ 30,535 $ 30,840 $ 31,149 $ 31,460 $ 31,775 $ 32,093 $ 32,413 $ 32,738 $ 33,065 $ 33,396 $ 33,730 $ 34,067 $ 55,171 $ 55,723
Abatement Value (local) - OPRA $ 15,069 $ 15,219 $ 15,372 $ 15,525 $ 15,681 $ 15,837 $ 15,996 $ 16,156 $ 16,317 $ 16,480 $ 16,645 $ 16,812
Abatement Value (local taxes) $ 15,069 $ 15,219 $ 15,372 $ 15,525 $ 15,681 $ 15,837 $ 15,996 $ 16,156 $ 16,317 $ 16,480 $ 16,645 $ 16,812 $ - $ -
Non-Capturable Millages Millage Rate
Comm College Dbt 0.3400 Tax Jurisd. $ 218 $ 220 $ 222 $ 225 $ 227 $ 229 $ 231 $ 234 $ 236 $ 239 $ 241 $ 243 $ 639 $ 646
Hackley Debt 0.4962 Tax Jurisd. $ 318 $ 321 $ 325 $ 328 $ 331 $ 335 $ 338 $ 341 $ 345 $ 348 $ 352 $ 355 $ 933 $ 942
MPS Debt -1995 4.1600 Tax Jurisd. $ 2,668 $ 2,695 $ 2,722 $ 2,749 $ 2,777 $ 2,804 $ 2,832 $ 2,861 $ 2,889 $ 2,918 $ 2,947 $ 2,977 $ 7,820 $ 7,899
MPS Debt -2009 2.1900 Tax Jurisd. $ 1,405 $ 1,419 $ 1,433 $ 1,447 $ 1,462 $ 1,476 $ 1,491 $ 1,506 $ 1,521 $ 1,536 $ 1,552 $ 1,567 $ 4,117 $ 4,158
MPS Sinking 1.0000 Tax Jurisd. $ 641 $ 648 $ 654 $ 661 $ 667 $ 674 $ 681 $ 688 $ 695 $ 701 $ 709 $ 716 $ 1,880 $ 1,899
Total Non-Capturable Taxes 8.1862 $ 5,251 $ 5,303 $ 5,356 $ 5,410 $ 5,464 $ 5,519 $ 5,574 $ 5,629 $ 5,686 $ 5,743 $ 5,800 $ 5,858 $ 15,389 $ 15,543
Abatement Value (non-capt) - OPRA $ 8,406 $ 8,490 $ 8,575 $ 8,661 $ 8,748 $ 8,835 $ 8,924 $ 9,013 $ 9,103 $ 9,194 $ 9,286 $ 9,379
Abatement Value (non-capturable) taxes) $ 8,406 $ 8,490 $ 8,575 $ 8,661 $ 8,748 $ 8,835 $ 8,924 $ 9,013 $ 9,103 $ 9,194 $ 9,286 $ 9,379 $ - $ -
Total Annual OPRA Abatement Value $ 35,798 $ 36,156 $ 36,517 $ 36,883 $ 37,251 $ 37,624 $ 24,919 $ 25,169 $ 25,420 $ 25,674 $ 25,931 $ 26,190 $ - $ -
Total Accumulated OPRA Abatement Value $ 35,798 $ 71,954 $ 108,471 $ 145,354 $ 182,606 $ 220,230 $ 245,149 $ 270,317 $ 295,738 $ 321,412 $ 347,343 $ 373,534 $ 373,534 $ 373,534
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Table 2. Tax Increment Revenue Estimates
Liberty Building
880 1st Street
Muskegon, MI
AKT Peerless Project No. 12337b
As of June 12, 2017
Estimated TV Increase rate:
Plan Year 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Calendar Year 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Initial Taxable Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Post-Dev TV (Developer Estimated) Estimated New TV $ 1,917,680 $ 1,936,857 $ 1,956,225 $ 1,975,788 $ 1,995,545 $ 2,015,501 $ 2,035,656 $ 2,056,012 $ 2,076,573 $ 2,097,338 $ 2,118,312 $ 2,139,495 $ 2,160,890 $ 2,182,499 $ 2,204,324 $ 2,226,367
Estimated New TV (Residential Only) $ 671,188 $ 677,900 $ 684,679 $ 691,526 $ 698,441 $ 705,425 $ 712,480 $ 719,604 $ 726,800 $ 734,068 $ 741,409 $ 748,823 $ 756,311 $ 763,875 $ 771,513 $ 779,228
Estimated New TV (Land Only) $ 66,095 $ 66,756 $ 67,423 $ 68,098 $ 68,778 $ 69,466 $ 70,161 $ 70,863 $ 71,571 $ 72,287 $ 73,010 $ 73,740 $ 74,477 $ 75,222 $ 75,974 $ 76,734
Incremental Difference (New TV - Initial TV) $ 1,917,680 $ 1,936,857 $ 1,956,225 $ 1,975,788 $ 1,995,545 $ 2,015,501 $ 2,035,656 $ 2,056,012 $ 2,076,573 $ 2,097,338 $ 2,118,312 $ 2,139,495 $ 2,160,890 $ 2,182,499 $ 2,204,324 $ 2,226,367
School Capture Millage Rate
State Education Tax (SET) 6.0000 Incremental $ 11,506 $ 11,621 $ 11,737 $ 11,855 $ 11,973 $ 12,093 $ 12,214 $ 12,336 $ 12,459 $ 12,584 $ 12,710 $ 12,837 $ 12,965 $ 13,095 $ 13,226 $ 13,358
School Operating Tax 18.0000 Incremental $ 22,437 $ 22,661 $ 22,888 $ 23,117 $ 23,348 $ 23,581 $ 23,817 $ 24,055 $ 24,296 $ 24,539 $ 24,784 $ 25,032 $ 25,282 $ 25,535 $ 25,791 $ 26,048
School Total 24.0000 $ 33,943 $ 34,282 $ 34,625 $ 34,971 $ 35,321 $ 35,674 $ 36,031 $ 36,391 $ 36,755 $ 37,123 $ 37,494 $ 37,869 $ 38,248 $ 38,630 $ 39,017 $ 39,407
Abatement Value (school) - OPRA
Abatement Value (school taxes) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Local Capture Millage Rate
County Museum 0.3221 Incremental $ 618 $ 624 $ 630 $ 636 $ 643 $ 649 $ 656 $ 662 $ 669 $ 676 $ 682 $ 689 $ 696 $ 703 $ 710 $ 717
County Veterans 0.0752 Incremental $ 144 $ 146 $ 147 $ 149 $ 150 $ 152 $ 153 $ 155 $ 156 $ 158 $ 159 $ 161 $ 162 $ 164 $ 166 $ 167
Senior Cit Svc 0.5000 Incremental $ 959 $ 968 $ 978 $ 988 $ 998 $ 1,008 $ 1,018 $ 1,028 $ 1,038 $ 1,049 $ 1,059 $ 1,070 $ 1,080 $ 1,091 $ 1,102 $ 1,113
Central Dispatch 0.3000 Incremental $ 575 $ 581 $ 587 $ 593 $ 599 $ 605 $ 611 $ 617 $ 623 $ 629 $ 635 $ 642 $ 648 $ 655 $ 661 $ 668
Comm College 2.2037 Incremental $ 4,226 $ 4,268 $ 4,311 $ 4,354 $ 4,398 $ 4,442 $ 4,486 $ 4,531 $ 4,576 $ 4,622 $ 4,668 $ 4,715 $ 4,762 $ 4,810 $ 4,858 $ 4,906
M.A.I.S.D 4.7580 Incremental $ 9,124 $ 9,216 $ 9,308 $ 9,401 $ 9,495 $ 9,590 $ 9,686 $ 9,783 $ 9,880 $ 9,979 $ 10,079 $ 10,180 $ 10,282 $ 10,384 $ 10,488 $ 10,593
City Op 10.0905 Incremental $ 19,350 $ 19,544 $ 19,739 $ 19,937 $ 20,136 $ 20,337 $ 20,541 $ 20,746 $ 20,954 $ 21,163 $ 21,375 $ 21,589 $ 21,804 $ 22,023 $ 22,243 $ 22,465
City Sanitation 3.0000 Incremental $ 5,753 $ 5,811 $ 5,869 $ 5,927 $ 5,987 $ 6,047 $ 6,107 $ 6,168 $ 6,230 $ 6,292 $ 6,355 $ 6,418 $ 6,483 $ 6,547 $ 6,613 $ 6,679
Hackley Library 2.4000 Incremental $ 4,602 $ 4,648 $ 4,695 $ 4,742 $ 4,789 $ 4,837 $ 4,886 $ 4,934 $ 4,984 $ 5,034 $ 5,084 $ 5,135 $ 5,186 $ 5,238 $ 5,290 $ 5,343
County Operating 5.6984 Incremental $ 10,928 $ 11,037 $ 11,147 $ 11,259 $ 11,371 $ 11,485 $ 11,600 $ 11,716 $ 11,833 $ 11,951 $ 12,071 $ 12,192 $ 12,314 $ 12,437 $ 12,561 $ 12,687
Local Total 29.3479 $ 56,280 $ 56,843 $ 57,411 $ 57,985 $ 58,565 $ 59,151 $ 59,742 $ 60,340 $ 60,943 $ 61,552 $ 62,168 $ 62,790 $ 63,418 $ 64,052 $ 64,692 $ 65,339
Abatement Value (local) - OPRA
Abatement Value (local taxes) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Non-Capturable Millages Millage Rate
Comm College Dbt 0.3400 Tax Jurisd. $ 652 $ 659 $ 665 $ 672 $ 678 $ 685 $ 692 $ 699 $ 706 $ 713 $ 720 $ 727 $ 735 $ 742 $ 749 $ 757
Hackley Debt 0.4962 Tax Jurisd. $ 952 $ 961 $ 971 $ 980 $ 990 $ 1,000 $ 1,010 $ 1,020 $ 1,030 $ 1,041 $ 1,051 $ 1,062 $ 1,072 $ 1,083 $ 1,094 $ 1,105
MPS Debt -1995 4.1600 Tax Jurisd. $ 7,978 $ 8,057 $ 8,138 $ 8,219 $ 8,301 $ 8,384 $ 8,468 $ 8,553 $ 8,639 $ 8,725 $ 8,812 $ 8,900 $ 8,989 $ 9,079 $ 9,170 $ 9,262
MPS Debt -2009 2.1900 Tax Jurisd. $ 4,200 $ 4,242 $ 4,284 $ 4,327 $ 4,370 $ 4,414 $ 4,458 $ 4,503 $ 4,548 $ 4,593 $ 4,639 $ 4,685 $ 4,732 $ 4,780 $ 4,827 $ 4,876
MPS Sinking 1.0000 Tax Jurisd. $ 1,918 $ 1,937 $ 1,956 $ 1,976 $ 1,996 $ 2,016 $ 2,036 $ 2,056 $ 2,077 $ 2,097 $ 2,118 $ 2,139 $ 2,161 $ 2,182 $ 2,204 $ 2,226
Total Non-Capturable Taxes 8.1862 $ 15,699 $ 15,855 $ 16,014 $ 16,174 $ 16,336 $ 16,499 $ 16,664 $ 16,831 $ 16,999 $ 17,169 $ 17,341 $ 17,514 $ 17,689 $ 17,866 $ 18,045 $ 18,225
Abatement Value (non-capt) - OPRA
Abatement Value (non-capturable) taxes) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Annual OPRA Abatement Value $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Accumulated OPRA Abatement Value $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534 $ 373,534
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Table 3. Reimbursement Allocation Schedule
Liberty Building
880 1st Street
Muskegon, MI
AKT Peerless Project No. 12337
As of June 12, 2017
Developer
School & Local Local-Only
Projected Proportionality
Taxes Taxes Total
Reimbursement
State 46.0% $ 824,790 $ 824,790 Estimated Total Years of
Local 54.0% $ 824,912 $ - $ 824,912 Plan: 30
TOTAL $ 1,649,702 $ - $ 1,649,702
MDEQ 0.9% $ 18,260
MSF 99.1% $ 1,923,605
*It is projected that insufficient revenue will be produced to fully reimburse the developer. Projected Shortfall: $292,163
Plan Year 1 2 3 4 5 6 7 8 9 10
Total State Incremental Revenue $ 17,206 $ 17,378 $ 17,552 $ 17,728 $ 17,905 $ 18,084 $ 31,346 $ 31,659 $ 31,976 $ 32,296
City Reimbursement $ 1,721 $ 1,738 $ 1,755 $ 1,773 $ 1,790 $ 1,808 $ 3,135 $ 3,166 $ 3,198 $ 3,230
State Brownfield Revolving Fund (3 mills of SET) $ 1,732 $ 1,750 $ 1,767 $ 1,785 $ 3,605 $ 3,641 $ 5,313 $ 5,366 $ 5,420 $ 5,474
State TIR Available for Reimbursement $ 13,753 $ 15,629 $ 15,785 $ 15,943 $ 14,300 $ 14,443 $ 26,033 $ 26,293 $ 26,556 $ 26,822
Total Local Incremental Revenue $ 30,535 $ 30,840 $ 31,149 $ 31,460 $ 31,775 $ 32,093 $ 32,413 $ 32,738 $ 33,065 $ 33,396
BRA Administrative Fee $ 4,774 $ 4,822 $ 4,870 $ 4,919 $ 4,968 $ 5,018 $ 6,376 $ 6,440 $ 6,504 $ 6,569
City Reimbursement $ 3,053 $ 3,084 $ 3,115 $ 3,146 $ 3,177 $ 3,209 $ 3,241 $ 3,274 $ 3,306 $ 3,340
Local TIR Available for Reimbursement $ 22,707 $ 22,934 $ 23,164 $ 23,395 $ 23,629 $ 23,866 $ 22,796 $ 23,024 $ 23,254 $ 23,487
Total State & Local TIR Available $ 36,461 $ 38,563 $ 38,949 $ 39,338 $ 37,929 $ 38,308 $ 48,829 $ 49,317 $ 49,811 $ 50,309
Beginning
DEVELOPER Balance
DEVELOPER Reimbursement Balance $ 1,941,865 $ 1,905,404 $ 1,866,841 $ 1,827,892 $ 1,788,554 $ 1,750,625 $ 1,712,316 $ 1,663,487 $ 1,614,170 $ 1,564,359 $ 1,514,051
STATE Reimbursement Balance $ 892,983 $ 879,229 $ 863,601 $ 847,816 $ 831,873 $ 817,573 $ 803,130 $ 777,097 $ 750,804 $ 724,248 $ 697,426
Eligible Activities Reimbursement $ 534,288 $ 13,753 $ 15,629 $ 15,785 $ 15,943 $ 14,300 $ 14,443 $ 26,033 $ 26,293 $ 26,556 $ 26,822
Environmental Eligible Activities $ 5,024 $ 129 $ 147 $ 148 $ 150 $ 134 $ 136 $ 245 $ 247 $ 250 $ 252
Non-Environmental Eligible Activities $ 529,264 $ 13,624 $ 15,482 $ 15,637 $ 15,793 $ 14,165 $ 14,307 $ 25,788 $ 26,046 $ 26,306 $ 26,570
Interest Reimbursement $ 358,695 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Environmental Portion $ 3,373 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Non-Environmental Portion $ 355,322 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total STATE TIR Reimbursement $ 13,753 $ 15,629 $ 15,785 $ 15,943 $ 14,300 $ 14,443 $ 26,033 $ 26,293 $ 26,556 $ 26,822
LOCAL Reimbursement Balance $ 1,048,882 $ 1,026,175 $ 1,003,240 $ 980,077 $ 956,681 $ 933,052 $ 909,186 $ 886,390 $ 863,366 $ 840,111 $ 816,624
Eligible Activities Reimbursement $ 627,565 $ 22,707 $ 22,934 $ 23,164 $ 23,395 $ 23,629 $ 23,866 $ 22,796 $ 23,024 $ 23,254 $ 23,487
Documentation of Due Care $ 5,901 $ 214 $ 216 $ 218 $ 220 $ 222 $ 224 $ 214 $ 216 $ 219 $ 221
Non-Environmental Eligible Activities $ 621,664 $ 22,494 $ 22,719 $ 22,946 $ 23,175 $ 23,407 $ 23,641 $ 22,582 $ 22,808 $ 23,036 $ 23,266
Interest Reimbursement $ 421,317 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Environmental Portion $ 3,962 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Non-Environmental Portion $ 417,355 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total LOCAL TIR Reimbursement $ 22,707 $ 22,934 $ 23,164 $ 23,395 $ 23,629 $ 23,866 $ 22,796 $ 23,024 $ 23,254 $ 23,487
Total Annual Developer Reimbursement $ 36,461 $ 38,563 $ 38,949 $ 39,338 $ 37,929 $ 38,308 $ 48,829 $ 49,317 $ 49,811 $ 50,309
LOCAL SITE REMEDIATION FUND LSRRF Year 0 0 0 0 0 0 0 0 0 0
LSRRF Deposits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
STATE $ 8,397 $ - $ - $ - $ - $ - $ - $ - $ - $ -
LOCAL no maximum $ - $ - $ - $ - $ - $ - $ - $ - $ -
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Table 3. Reimbursement Allocation Schedule
Liberty Building
880 1st Street
Muskegon, MI
AKT Peerless Project No. 12337
As of June 12, 2017
Estimated Capture
Administrative Fees $ 242,078
State Revolving Fund $ 124,845
Local Revolving Fund $ 255,492
$ 23,529,412
End of OPRA End of NEZ
11 12 13 14 15 16 17 18 19 20
Total State Incremental Revenue $ 32,618 $ 32,945 $ 33,274 $ 33,607 $ 33,943 $ 34,282 $ 34,625 $ 34,971 $ 35,321 $ 35,674
City Reimbursement $ 3,262 $ 3,294 $ 3,327 $ 3,361 $ 3,394 $ 3,428 $ 3,463 $ 3,497 $ 3,532 $ 3,567
State Brownfield Revolving Fund (3 mills of SE $ 5,529 $ 5,584 $ 5,640 $ 5,696 $ 5,753 $ 5,811 $ 5,869 $ 5,927 $ 5,987 $ 6,047
State TIR Available for Reimbursement $ 27,090 $ 27,361 $ 27,634 $ 27,911 $ 28,190 $ 28,472 $ 28,757 $ 29,044 $ 29,335 $ 29,628
Total Local Incremental Revenue $ 33,730 $ 34,067 $ 55,171 $ 55,723 $ 56,280 $ 56,843 $ 57,411 $ 57,985 $ 58,565 $ 59,151
BRA Administrative Fee $ 6,635 $ 6,701 $ 8,845 $ 8,933 $ 9,022 $ 9,113 $ 9,204 $ 9,296 $ 9,389 $ 9,483
City Reimbursement $ 3,373 $ 3,407 $ 5,517 $ 5,572 $ 5,628 $ 5,684 $ 5,741 $ 5,799 $ 5,857 $ 5,915
Local TIR Available for Reimbursement $ 23,722 $ 23,959 $ 40,809 $ 41,217 $ 41,630 $ 42,046 $ 42,466 $ 42,891 $ 43,320 $ 43,753
Total State & Local TIR Available $ 50,812 $ 51,320 $ 68,444 $ 69,128 $ 69,820 $ 70,518 $ 71,223 $ 71,935 $ 72,654 $ 73,381
DEVELOPER
DEVELOPER Reimbursement Balance $ 1,463,239 $ 1,411,919 $ 1,343,475 $ 1,274,347 $ 1,204,528 $ 1,134,010 $ 1,062,787 $ 990,852 $ 918,198 $ 844,817
STATE Reimbursement Balance $ 670,336 $ 642,976 $ 615,341 $ 587,430 $ 559,240 $ 530,769 $ 502,012 $ 472,968 $ 443,634 $ 414,006
Eligible Activities Reimbursement $ 27,090 $ 27,361 $ 27,634 $ 27,911 $ 28,190 $ 28,472 $ 28,757 $ 29,044 $ 29,335 $ 29,628
Environmental Eligible Activities $ 255 $ 257 $ 260 $ 262 $ 265 $ 268 $ 270 $ 273 $ 276 $ 279
Non-Environmental Eligible Activities $ 26,835 $ 27,104 $ 27,375 $ 27,648 $ 27,925 $ 28,204 $ 28,486 $ 28,771 $ 29,059 $ 29,349
Interest Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Environmental Portion $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Non-Environmental Portion $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total STATE TIR Reimbursement $ 27,090 $ 27,361 $ 27,634 $ 27,911 $ 28,190 $ 28,472 $ 28,757 $ 29,044 $ 29,335 $ 29,628
LOCAL Reimbursement Balance $ 792,903 $ 768,944 $ 728,134 $ 686,917 $ 645,287 $ 603,241 $ 560,775 $ 517,884 $ 474,564 $ 430,811
Eligible Activities Reimbursement $ 23,722 $ 23,959 $ 40,809 $ 41,217 $ 41,630 $ - $ - $ - $ - $ -
Documentation of Due Care $ 223 $ 225 $ 384 $ 388 $ 391 $ - $ - $ - $ - $ -
Non-Environmental Eligible Activities $ 23,499 $ 23,734 $ 40,426 $ 40,830 $ 41,238 $ - $ - $ - $ - $ -
Interest Reimbursement $ - $ - $ - $ - $ - $ 42,046 $ 42,466 $ 42,891 $ 43,320 $ 43,753
Environmental Portion $ - $ - $ - $ - $ - $ 395 $ 399 $ 403 $ 407 $ 411
Non-Environmental Portion $ - $ - $ - $ - $ - $ 41,651 $ 42,067 $ 42,488 $ 42,913 $ 43,342
Total LOCAL TIR Reimbursement $ 23,722 $ 23,959 $ 40,809 $ 41,217 $ 41,630 $ 42,046 $ 42,466 $ 42,891 $ 43,320 $ 43,753
Total Annual Developer Reimbursement $ 50,812 $ 51,320 $ 68,444 $ 69,128 $ 69,820 $ 70,518 $ 71,223 $ 71,935 $ 72,654 $ 73,381
LOCAL SITE REMEDIATION FUND 0 0 0 0 0 0 0 0 0 0
LSRRF Deposits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
STATE $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
LOCAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
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Table 3. Reimbursement Allocation Schedule
Liberty Building
880 1st Street
Muskegon, MI
AKT Peerless Project No. 12337
As of June 12, 2017
End Plan
21 22 23 24 25 26 27 28 29 30
Total State Incremental Revenue $ 36,031 $ 36,391 $ 36,755 $ 37,123 $ 37,494 $ 37,869 $ 38,248 $ 38,630 $ 39,017 $ 39,407
City Reimbursement $ 3,603 $ 3,639 $ 3,676 $ 3,712 $ 3,749 $ 3,787 $ 3,825 $ 3,863 $ 3,902 $ 3,941
State Brownfield Revolving Fund (3 mills of SE $ 6,107 $ 6,168 $ 6,230 $ 6,292 $ 6,355 $ - $ - $ - $ - $ -
State TIR Available for Reimbursement $ 29,924 $ 30,223 $ 30,526 $ 30,831 $ 31,139 $ 37,869 $ 38,248 $ 38,630 $ 39,017 $ 39,407
Total Local Incremental Revenue $ 59,742 $ 60,340 $ 60,943 $ 61,552 $ 62,168 $ 62,790 $ 63,418 $ 64,052 $ 64,692 $ 65,339
BRA Administrative Fee $ 9,577 $ 9,673 $ 9,770 $ 9,868 $ 9,966 $ 10,066 $ 10,167 $ 10,268 $ 10,371 $ 10,475
City Reimbursement $ 5,974 $ 6,034 $ 6,094 $ 6,155 $ 6,217 $ 6,279 $ 6,342 $ 6,405 $ 6,469 $ 6,534
Local TIR Available for Reimbursement $ 44,191 $ 44,633 $ 45,079 $ 45,530 $ 45,985 $ 46,445 $ 46,909 $ 47,378 $ 47,852 $ 48,331
Total State & Local TIR Available $ 74,115 $ 74,856 $ 75,605 $ 76,361 $ 77,124 $ 84,314 $ 85,157 $ 86,009 $ 86,869 $ 87,737
DEVELOPER
DEVELOPER Reimbursement Balance $ 770,702 $ 695,846 $ 620,241 $ 543,881 $ 485,333 $ 447,464 $ 409,216 $ 370,586 $ 331,569 $ 292,163
STATE Reimbursement Balance $ 384,082 $ 353,858 $ 323,333 $ 292,502 $ 261,362 $ 223,493 $ 185,246 $ 146,615 $ 107,599 $ 68,192
Eligible Activities Reimbursement $ 29,924 $ 25,387 $ - $ - $ - $ - $ - $ - $ - $ -
Environmental Eligible Activities $ 281 $ 239 $ - $ - $ - $ - $ - $ - $ - $ -
Non-Environmental Eligible Activities $ 29,643 $ 25,148 $ - $ - $ - $ - $ - $ - $ - $ -
Interest Reimbursement $ - $ 4,837 $ 30,526 $ 30,831 $ 31,139 $ 37,869 $ 38,248 $ 38,630 $ 39,017 $ 39,407
Environmental Portion $ - $ 45 $ 287 $ 290 $ 293 $ 356 $ 360 $ 363 $ 367 $ 371
Non-Environmental Portion $ - $ 4,791 $ 30,239 $ 30,541 $ 30,846 $ 37,513 $ 37,888 $ 38,267 $ 38,650 $ 39,036
Total STATE TIR Reimbursement $ 29,924 $ 30,223 $ 30,526 $ 30,831 $ 31,139 $ 37,869 $ 38,248 $ 38,630 $ 39,017 $ 39,407
LOCAL Reimbursement Balance $ 386,620 $ 341,988 $ 296,909 $ 251,379 $ 223,970 $ 223,970 $ 223,970 $ 223,970 $ 223,970 $ 223,970
Eligible Activities Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Documentation of Due Care $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Non-Environmental Eligible Activities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Interest Reimbursement $ 44,191 $ 44,633 $ 45,079 $ 45,530 $ 27,409 $ - $ - $ - $ - $ -
Environmental Portion $ 416 $ 420 $ 424 $ 428 $ 258 $ - $ - $ - $ - $ -
Non-Environmental Portion $ 43,775 $ 44,213 $ 44,655 $ 45,102 $ 27,151 $ - $ - $ - $ - $ -
Total LOCAL TIR Reimbursement $ 44,191 $ 44,633 $ 45,079 $ 45,530 $ 27,409 $ - $ - $ - $ - $ -
Total Annual Developer Reimbursement $ 74,115 $ 74,856 $ 75,605 $ 76,361 $ 58,548 $ 37,869 $ 38,248 $ 38,630 $ 39,017 $ 39,407
LOCAL SITE REMEDIATION FUND 0 0 0 0 0 0 0 0 0 0
LSRRF Deposits $ - $ - $ - $ - $ 18,576 $ 46,445 $ 46,909 $ 47,378 $ 47,852 $ 48,331
STATE $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
LOCAL $ - $ - $ - $ - $ 18,576 $ 46,445 $ 46,909 $ 47,378 $ 47,852 $ 48,331
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AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: July 11, 2017
RE: Arena Lease – Rad Dad’s
SUMMARY OF REQUEST:
City Staff has been working with a group of local business owners interested in creating a restaurant
and bar to service the LC Walker Arena and also provide more daily food/beverage options to the
downtown community. Rad Dad’s Taco and Tequila Bar is originally proposed to lease
approximately 3,500 square feet of concourse space in the arena and 500 square feet of outdoor
space to provide outdoor dining space at the corner of Western Avenue and 4th Street. The group is
now proposing to lease approximately 5,300 square feet. The owners would like to open by
September 1, 2017.
FINANCIAL IMPACT:
Build-out costs are expected to be less than $350,000. If build out costs are at $350,000, the tenant’s
initial lease rate will be $12.50/sf ($66,250 annually for both interior and outdoor space. In the event
that costs fall below or exceed $350,000, any amount over or under $350,000 will be added to or
subtracted from the tenant’s lease rate as follows: for every dollar of variance, the tenant’s annual rent
will increase/decrease by 12.5 cents per year. Regardless of savings, rent will be no less than $53,000
annually.
BUDGET ACTION REQUIRED:
$350,000 Capital Improvement is expected; a budget adjustment will be included as part of the 1st
quarter budget reforecast, with the proceeds coming from the Public Improvement Fund.
STAFF RECOMMENDATION:
To approve the request and authorize the City Manager to sign the lease.
COMMITTEE RECOMMENDATION:
None.
LEASE
This lease (“Lease”), is made effective as of _________________, 2017 (Effective
Date”) by and between the City of Muskegon, a Michigan municipal corporation, 933 Terrace
Street, Muskegon, MI 49440 (“Landlord”), and Rad Dad’s, L.L.C., a Michigan limited liability
company, of 470 W. Western Ave., Muskegon, MI 49440 (“Tenant” or “Rad Dad”).
BACKGROUND
A. The Muskegon County Building Authority is the owner of the L.C. Walker Arena
and Conference Center located at 470 West Western Avenue, Muskegon, Michigan 49440
(“Arena”), and leases the premises to the County of Muskegon. The County subleases the Arena
to the City, by which the City is responsible for operation, maintenance and improvements for
the Arena.
B. City presently has a sub-lease with WC Hockey, LLC (“WC Hockey”) for use of
the ice rink and locker room facilities in the Arena. The City has a management agreement with
Two T’s, LLC (“Two T’s”) for overall management duties related to the Arena. Within 90 days
of the execution of this Sublease, the City will amend all sub-leases for the Arena that are in
place to exclude operation of any concessions at the Arena. It is the intention of the Parties that
Rad Dad will be the sole provider of concessions at the Arena.
C. In addition to operating the concessions at the Arena, Rad Dad will operate a full
service restaurant in the Arena. The parties will cooperate to add Rad Dad as a co-licensee to the
liquor license currently held by the City for the Arena (Class C License No. 1962-2015 issued by
the Michigan Liquor Control Commission (“Liquor License”)).
AGREEMENT
1. Description of Premises and Leased Premises. In consideration of the rents and
covenants to be paid, performed and observed by Tenant, Landlord leases to Tenant and Tenant
accepts from Landlord 5,800 square feet of space as depicted on the drawing attached as Exhibit
A (“Leased Premises”) in what is commonly known as the LC Walker Arena, including the
Annex located at 470 W. Western Ave., Muskegon, MI 49440 as legally described on Exhibit B
and consisting of 59,847 square feet (“Premises”). The parties shall work together cooperatively
with respect to the design of the Leased Premises, which may result in a change to Exhibit A
[JJ1]and the number of square feet being leased.
2. Term. The initial term of this lease shall be for 3 years, with four 3 year options,
which may be exercised by Tenant providing Landlord with written notice of such not less than
ninety (90) days from the expiration of the application term or option. The term shall commence
on either the date the Tenant is approved as a co-licensee to the Liquor License, or the Delivery
Date (as defined herein) whichever last occurs. Each renewal period shall be on the same terms
and conditions as this Lease. CPI increase for each term.
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3. Rent
a. Base Rent. For the first year of the lease, the Tenant shall pay to
Landlord a maximum annual rent of $12.50 per square foot of rentable lease space as
shown on Exhibit A, which shall be adjusted by decreasing the annual rent by 12.5 cents
for every dollar that Tenant does not spend of the $350,000 committed by the Landlord
for development of the leased space. Provided, however, the annual rent shall not be less
than $10.00 per square foot of the rentable lease space. The rent shall be payable in equal
monthly installments (the “Rent”) in advance on the 1st day of each month of the term.
The Rent shall be payable at the above office of Landlord without abatement, deduction
or setoff. After the first year the Rent shall be increased each June 1st by the increase in
CPI over the Base Index. The Base Index is the value published immediately prior to the
lease commencement date.
b. Additional Rent. Tenant shall also pay to Landlord as “Additional Rent,”
on demand, an amount equal to its “Pro-Rata Share” (which for purposes of this Lease
shall be a fraction, the numerator of which is the square footage of the Leased[JJ2]
Premises and the denominator of which is the total square footage of the Premises) of all
expenses actually incurred by Landlord for (a) CAM (as defined below) expenses
incurred by Landlord; (b) commonly used dumpsters; and, (c) garbage service. Tenant
shall pay a monthly amount equal to Landlord’s reasonable estimate of these annual
costs, and which Tenant shall pay in advance, on the first day of each month during the
Term.
Not less often than once every 12 months, Landlord shall provide to Tenant a statement
of costs, and with the statement a reconciliation of the monthly estimate of Tenant’s Pro-
Rata Share as appropriate, with any excess or deficiency being applied or added to
Tenant’s next installment of Additional Rent. All other sums that Tenant is required to
pay under the terms of this Lease shall also be paid as Additional Rent. Tenant shall be
entitled on reasonable advance written notice to Landlord, and at Tenant’s cost, to inspect
Landlord’s books and records as they may relate to the statements submitted by Landlord
to Tenant for Additional Rent.
c. Property Taxes. Tenant shall also pay before delinquent, all real estate
taxes for the Leased Premises as billed from time to time by the Landlord, and personal
property taxes for personal property used therein.
4. Common Areas. So long as Tenant is not in default under this Lease, Tenant, its
agents, employees, customers, and invitees, shall have the use, in common with all others to
whom the Landlord has granted or may later grant rights to use them, of the sidewalks, parking
areas, and drives designated by Landlord, as these shall exist from time to time, for the Premises
(“Common Areas”). During the Term Landlord, Landlord’s agents or permitted third parties
shall perform all necessary maintenance (“CAM”) to the Common Areas (including, without
limitation, general cleaning, snow removal, grass cutting, parking lot cleanup, repairs of exterior
light fixtures, and light bulb replacement).
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5. Utilities. The Leased Premises shall be separately metered for gas, electricity,
water and sewer. Tenant shall pay all charges for gas, electricity, water, power, telephone cable
television and internet service used, rendered or supplied upon or in connection with the Leased
Premises, and shall indemnify the Landlord against any liability or damages on such account.
Tenant will have no responsibility to pay for utilities outside of the Leased Premises, provided all
of Tenants exterior signage shall be wired through meter serving the Leased Premises.
6. Right of Landlord to Lease. The Landlord covenants and warrants that it is in
lawful possession and control of said Leased Premises, and has the authority to enter into this
lease agreement.
7. Quiet Enjoyment. Landlord covenants that Tenant, on payment of all the
aforesaid installments and performing all the covenants aforesaid, shall and may peacefully and
quietly have, hold and enjoy the said Leased Premises for the term hereof. Landlord agrees that
there are no restrictions applicable to the Leased Premises which affect and limit the right of
Tenant to exercise any of the rights granted to Tenant by this lease. Landlord agrees that it will
not grant any easements on the Leased Premises, or create any restrictions thereto, during the
term of the lease without the prior consent of Tenant.
8. Use of Premises. Tenant is granted the right during the term of this lease, or any
renewals hereof, to occupy and use the Leased Premises for operating a bar and restaurant. .
9. Tenant's Acceptance of Leased Premises As Is. Landlord shall deliver the
Leased Premises with “Landlord’s Work,” as defined herein, completed (“Delivery Date”). If
Tenant takes possession of the Leased Premises, Tenant shall be deemed to accept the same in its
then “AS IS, WHERE IS” condition, subject to Landlord’s obligation to complete any so-called
punchlist items and repair any defects in construction. Tenant acknowledges that Landlord shall
not be required to make any renovations or improvements to the Leased Premises except for
Landlord’s Work as defined in this Lease. Landlord shall construct the Leased Premises in
accordance with the blueprints attached Exhibit C (“Landlord’s Work”). Tenant shall not be
liable for any cost or expense incurred by Landlord in completing Landlord’s Work, all of which
shall be Landlord’s obligation. Tenant waives any warranties, express or implied, of fitness,
liability, and usefulness for Tenant’s particular purpose or otherwise, except to the extent
specifically set forth in Exhibit C hereto.
Landlord covenants to deliver to Tenant possession of the Leased Premises with
Landlord’s Work complete and all regulatory approvals and sign-offs received by the Delivery
Date but not later than 120 days from the date of the Agreement to Proceed as defined in the
Development Agreement (“Development Agreement”) among Landlord, Tenant and the City of
Muskegon of even date (“Delivery Date Deadline”). If for any reason Landlord is unable to
deliver possession of the Leased Premises by the Delivery Date Deadline, Landlord, prior to the
Delivery Date Deadline, shall provide written notice to Tenant of the date on which Landlord
anticipates delivery to Tenant of the Leased Premises (the “Late Delivery Date”), which date
shall be no later than Sixty Days (60) after the Delivery Date Deadline. If Landlord does not
deliver the Leased Premises to Tenant in accordance with the Lease by the Late Delivery Date,
then Tenant shall have the right to terminate this Lease (“Delivery Termination Right”) without
3
penalty upon the Thirtieth (30th) day following the date on which Tenant provides written notice
(“Delivery Termination Notice”) to Landlord of Tenant’s intent to exercise its Delivery
Termination Right (“Effective Termination Date”), which notice must be given, if at all, anytime
during the period commencing on the day following the Late Delivery Date and continuing until
the Thirtieth (30th) day following the Late Delivery Date (provided, however, that Tenant may
not terminate the Lease, even if Tenant has provided Delivery Termination Notice, if Landlord
has delivered the Leased Premises to Tenant in accordance with this Lease prior to the Effective
Termination Date). Upon such termination on the Effective Termination Date, neither party
shall have any further obligation or liability to the other relating to this Lease.
10. Maintenance. Tenant shall, at its own expense, make all necessary repairs and
replacements within the Leased Premises, including pipes, heating system, plumbing system,
window glass, fixtures and all other appliances belonging thereto, all equipment used in
connection with the Leased Premises, and the sidewalks, curbs and vaults adjoining or
appurtenant to the Leased Premises. Such repairs and replacements ordinary as well as
extraordinary and structural and non-structural, shall be made promptly, when necessary. All
repairs and replacements shall be in quality and class at least equal to the original work. On
default of Tenant in making necessary repairs or replacements, Landlord may, but shall not be
required to make such repairs and replacements for Tenant's account, and the expenses thereof
shall constitute and be collectible as Additional Rent. Landlord shall be solely responsible for all
necessary repairs and maintenance of the Premises except for the Leased Premises.
11. Alterations or Improvements. Except as provided in the Development Plan,
Tenant shall not make any alterations, additions, or improvements to the Premises except with
the written consent of Landlord. Any alteration, addition or improvement made by the Tenant
after such consent shall have been given, and any fixtures installed as part thereof, shall at the
Landlord's option become the property of the Landlord upon the expiration or other sooner
termination of this lease, provided, however, that Landlord shall have the right to require Tenant
to remove such fixtures, additions or improvements at the Tenant's cost upon such termination of
this lease provided that in the event of any such removal, Tenant shall make all repairs
necessitated by such removal so as to leave the premises in like condition as when taken except
for ordinary wear and tear.
12. Public Orders and Zoning. Tenant shall, at its own expense, make all
alterations, improvements, or repairs in the Leased Premises that may be ordered by public
authorities, or required by changes in or additions to state and local zoning ordinances.
13. Mechanical Failures. Landlord shall not be liable for any damage to persons or
property on account of the stoppage or failure of operation of any part of the mechanical plant of
the building, or heating, air conditioning, plumbing or electrical facilities, whether for necessary
or desirable repairs or improvements thereof, or occasioned by accident or other cause. All
personal property in the Leased Premises shall be at the risk of Tenant only, and Landlord shall
not be liable for any loss of or damage to said personal property, to said premises or to Tenant
arising from the bursting, stoppage or leaking of water, gas, sewer or steampipes, the stoppage or
failure of operation of any part of the mechanical plant of the building, or heating, air
4
conditioning, plumbing or electrical facilities, or from any acts or neglect of co-tenants or other
occupants of the building, or any other persons.
14. Security. Landlord shall not be liable for any injury to the person or property of
the Tenant or any other persons caused by the criminal acts of third persons occurring at the
Leased Premises.
15. Insurance.
(a) Tenant shall, at its own expense, maintain policies of fire and extended
coverage insurance on the Leased Premises and on all of its trade fixtures, furnishings and
equipment in an amount equal to the full insurable value of such property. At the request of
Landlord at any time, Tenant shall furnish Landlord evidence that such insurance is in force.
(b) Tenant shall, at its own expense, provide and keep in force general public
liability insurance protecting Tenant and Landlord against all claims for damages to person or
property or for loss of life or of property occurring upon, in, or about the Leased Premises, the
streets, gutters, sidewalks, curbs, or vaults adjacent thereto, to such limits as Landlord may
reasonably, from time to time, require in respect to injuries to any one person, in respect to any
one accident or disaster or incident of negligence, and in respect to property damage. Limits of
$1,000,000 in respect to injuries to any one person, $1,000,000 in respect to any one accident or
disaster or incident of negligence and $1,000,000 in respect to property damage are deemed
reasonable as of the date hereof.
(c) Tenant shall, at its own expense, provide and keep in force such other
insurance against other insurable hazards in such amounts as may from time to time be required
by Landlord, provided that such insurable hazards are commonly insured against with respect to
similar premises, due regard being given to the height and type of construction, location, use and
occupancy.
(d) Landlord shall obtain insurance on the Premises in amounts and with such
terms that are commercially reasonable for a building of similar size and with similar uses.
16. Compliance with Laws. Tenant, under penalty of forfeiture and damages, agrees
to promptly comply with all requirements of law and with all ordinances, regulations or orders of
any state, municipal or other public authority affecting all or any part of the Leased Premises and
with all requirements of the Board of Fire Underwriters or similar body and of any liability
insurance company insuring the Landlord against liability for accidents in or connected with all
or any part of the Leased Premises, and Tenant further agrees to save Landlord harmless from
any and all penalties, fines or liabilities that may result from Tenant's failure to so comply.
17. Destruction of Building. In the event the Premises or Leased Premises shall be
partially or totally destroyed by fire or other casualty insured under the insurance carried by
Landlord, as to become partially or totally untenantable, the damage to the Premises and Leased
Premises shall be promptly repaired by Landlord, unless Landlord shall elect not to rebuild as
provided below. The obligation of Landlord to reconstruct the Leased Premises shall be limited
5
to the City’s obligations under the Development Plan. All other reconstruction within the Leased
Premises shall be the sole responsibility of Tenant. In no event shall Landlord be required to
repair or replace Tenant’s trade fixtures, furnishings or equipment.
If any such fire or other casualty shall occur within eighteen (18) months of the end the term of
this Lease or any renewal term, Landlord or Tenant may, at its option, terminate this Lease with
written notice to the other party within thirty days of the destruction.
18. Risk of Loss. During the term of this lease, and any extension or renewal thereof,
the risk of loss with respect to all risks insurable under a fire and extended coverage insurance
policy meeting the requirements of the laws of the State of Michigan, together with the risk of
loss with respect to all uninsurable losses to the premises which are subject to the control or
prevention by Tenant, shall rest upon Tenant. (The parties agree that for purposes of interpreting
the foregoing provision, an example of an uninsurable loss which shall be the responsibility of
Tenant would be Tenant's failure, as possessor of the premises, to detect a malfunction in the
heating system during the winter, resulting in the freezing and bursting of water pipes in the
premises. If the freezing and bursting of the water pipes and consequent damage flowing
therefrom is not covered by the insurance required to be maintained by Tenant, all such damages
resulting therefrom are the responsibility of and must be paid for by Tenant.)
19. Subrogation. Tenant, its officers, agents or employees shall not be liable for
damage to the Leased Premises or for interruption of rent resulting from any of the perils covered
by fire and extended coverage insurance, or which would be covered if such insurance were in
force, and Landlord agrees not to sue for such damage and that every applicable policy of
insurance will contain or be endorsed with the standard waiver of subrogation clause. Landlord
shall not be liable for damage to the property or business of Tenant in or on the Leased Premises
resulting from any of the perils covered if such insurance were in force, and Tenant agrees not to
sue for such damage and that every applicable policy of insurance will contain or be endorsed
with the standard waiver of subrogation clause.
20. Liens and Encumbrances. Tenant covenants that Tenant will not create or
permit to be created or to remain, and will promptly discharge, at Tenant's sole cost and expense,
any lien, encumbrance or charge upon the Leased Premises or any part thereof, or upon Tenant's
leasehold interest therein, which lien, encumbrance or charge arises out of the use or occupancy
of the Leased Premises by Tenant or by reason of any labor or materials furnished or claimed to
have been furnished to Tenant or by reason of any construction, alteration, addition, repair or
demolition of any part of the Leased Premises. The existence of any construction, mechanic's,
laborer's, materialman's, supplier's or vendor's lien, or any right in respect thereof, shall not
constitute a violation of this paragraph, if payment is not yet due upon the contract or for the
goods or services in respect of which any such lien has arisen or where there is a good faith
dispute relating thereto, provided that in such event Tenant shall promptly prosecute an action to
resolve the validity of the lien. Nothing in this lease contained shall be construed as constituting
the consent or request of Landlord, expressed or implied, to any contractor, subcontractor,
laborer, materialman or vendor to or for the performance of any labor or construction, alteration,
addition, repair or demolition of or to the Leased Premises or any part thereof. Notice is hereby
given that Landlord will not be liable for any labor, services or materials furnished or to be
furnished to Tenant, or to anyone holding the Leased Premises or any part thereof through or
6
under Tenant, and that no mechanic's or other liens for any such labor or materials shall attach to
the interest of Landlord in and to the Leased Premises.
21. Assignment or Subletting. Tenant shall not sublease, assign, mortgage, or
encumber this lease without the prior written consent of the Landlord in each instance, which
consent shall not be unreasonably withheld. If this lease is assigned, or if the Leased Premises or
any part thereof is sublet, or occupied by anybody other than the Tenant, the Landlord may, after
default by the Tenant, collect rent from the assignee, subtenant, or occupant and apply the net
amount collected to the rent herein reserved. No such assignment, subletting, occupancy or
collection shall be deemed a waiver of this covenant, or the acceptance of the assignee as tenant,
or a release of the Tenant from the further performance by the Tenant of the covenants in this
lease. The consent by the Landlord to an assignment shall not be construed to relieve the Tenant
from obtaining the consent in writing of the Landlord to any further assignment.
22. Eminent Domain. If the Leased Premises are taken by a public authority under
power of eminent domain, Tenant shall be entitled to a pro rata refund of any rent paid in
advance. Landlord and Tenant, in any condemnation proceedings, shall each be entitled to
recover their own damages, provided that Tenant agrees to cooperate with Landlord in
Landlord's attempt to recover damages in any such condemnation proceedings and to furnish any
and all information that Landlord may request in such attempt and provided further that Landlord
agrees to cooperate with Tenant in Tenant's attempt to recover damages in any such
condemnation proceedings and to furnish any and all information that Tenant may request in
such attempt.
23. Default and Repossession. If the Leased Premises shall be deserted or vacated,
or if proceedings are commenced against the Tenant in any court under a bankruptcy act or for
the appointment of a trustee or receiver of the Tenant's property either before or after the
commencement of the lease term, or if there shall be a default in the payment of rent or any part
thereof for more than five days after written notice of such default by the Landlord, or if there
shall be default in the performance of any other covenant, agreement, condition, rule or
regulation herein contained or hereafter established on the part of the Tenant for more than
twenty days after written notice of such default by the Landlord, this lease (if the Landlord so
elects) shall thereupon become null and void, and the Landlord shall have the right to reenter or
repossess the Leased Premises, either by force, summary proceedings, surrender, or otherwise,
and dispossess and remove therefrom the Tenant, or other occupants thereof, and their effects,
without being liable to any prosecution therefor. In such case, the Landlord may, at its option,
relet the Leased Premises or any part thereof, as the agent of the Tenant, and the Tenant shall pay
the Landlord the difference between the rent hereby reserved and agreed to be paid by the Tenant
for the portion of the term remaining at the time of reentry or repossession and the amount, if
any, received or to be received under such reletting for such portion of the term. The Tenant
hereby expressly waives the service of notice of intention to reenter or of instituting legal
proceedings to that end. Tenant agrees to pay all expenses and damages incurred by Landlord as
a result of Tenant's default, including Landlord's attorney fees.
24. Curing of Tenant's Default. If Tenant shall fail to perform any of its obligations
hereunder, Landlord may, if it so elects, and after five (5) days prior notice to Tenant, cure such
7
default at Tenant's expense, and Tenant agrees to reimburse Landlord (as Additional Rent) for all
costs and expenses incurred as a result thereof upon demand.
25. Right to Show the Premises. Tenant agrees that ninety (90) days prior to the
expiration of the term of this lease, or any extension hereof, Landlord may display in and about
the Leased Premises “For Rent” or “For Sale” signs and may have reasonable access to the
Leased Premises for the purpose of exhibiting same to prospective tenants.
26. Surrender. Tenant shall quit and surrender the premises at the expiration of the
lease term, in as good a state and condition as the premises were at the commencement of the
term, reasonable use and wear thereof excepted.
27. Holding Over. It is agreed that any holding over by the Tenant upon expiration
of the term of this lease or any extension hereof, shall operate as an extension of this lease from
month to month only.
28. Notices. Any notice required to be given in writing under the provisions of this
lease shall be deemed to be delivered if given personally to the party entitled to such notice or if
deposited in the U.S. mail and addressed with the business address of the party entitled to such
notice with postage thereon fully prepaid.
29. Waiver. One or more waivers of any covenant or condition by Landlord shall not
be construed as a waiver of a subsequent breach of the same covenant or condition.
30. Laws of Michigan to Govern. This lease agreement shall be interpreted under
the laws of the State of Michigan.
31. Binding upon Successors and Assigns. This lease shall be binding upon the
parties hereto and their respective heirs, administrators, personal representatives, successors and
assigns.
32. Concessions Agreement. This Lease is contingent upon Landlord and Tenant
executing a concessions agreement within 90 days of the execution of this Lease. In the event
the concessions agreement is terminated, this Lease shall be terminable by either party with
notice to the other. In the event this Lease is terminated, the concessions agreement shall be
terminable by either party with notice to the other.
33. Liquor License. In the event the Michigan Liquor Control Commission
(“MLCC”) requires the owner of the Liquor License to take any action, or refrain from any
action, Tenant shall immediately take steps to satisfy the MLCC, and keep the Liquor License in
compliance. Tenant shall indemnify Landlord for any fine or violation issued by the MLCC. In
the event the MLCC disapproves of Tenant’s use of the Liquor License in any way, Tenant shall
immediately cease such use, or Landlord may terminate this Lease.
{Signatures appear on the following 2 pages.}
8
LANDLORD –
City of Muskegon,
a Michigan municipal corporation
By: ________________________________
Name:
Title:
Date: ____________, 2017
9
TENANT–
Rad Dad’s, LLC,
a Michigan limited liability company
By: ________________________________
Name:
Title:
Date: ____________, 2017
10
EXHIBIT A
Leased Premises
EXHIBIT B
Premises
The part of Lot 1, Block 567 of the Revised Plat of 1903 of the City of Muskegon, Muskegon
County, Michigan, described as follows: Commencing at the Southwesterly corner of said Block
567; thence North 50°55'50" East along the Northwesterly line of Western Avenue 175.29 feet
for POINT OF BEGINNING; thence North 39°01'35" West 172.00 feet to the Northwesterly line
of Thayer Avenue; thence South 50°55'50" West along said Northwesterly line 116.00 feet to the
Northeasterly line of Fifth Street; thence North 39°01'35" West along said Northeasterly line
188.65 feet to the Southeasterly right of way line of Shoreline Drive; thence Northeasterly along
said Southeasterly line on the arc of a 5187.69 foot curve to the right a distance of 159.20 feet
(the central angle of said curve is 1°45'30" and the long chord bears North 39°09'22" East 159.20
feet); thence continuing Northeasterly along said Southeasterly line on the arc of a 1107.00 foot
radius curve to the left a distance of 198.97 feet (the central angle of said curve is 10°17'54" and
the long chord bears North 34°53'10" East 198.70 feet) to the Southwesterly line of Fourth
Street; thence Southeasterly along said Southwesterly line on the arc of a 619.21 foot curve to
the right a distance of 5.65 feet (the central angle of said curve is 00°31'20" and the long chord
bears South 58°52'07" East 5.65 feet); thence South 59°07'47" East along said Southwesterly line
128.42 feet; thence continuing Southeasterly along Southwesterly line of the arc of a 138.77 foot
radius curve to the right a distance of 119.33 feet (the central angle of said curve is 49°16'12"
and the long chord bears South 34°29'41" East 115.69 feet); thence South 09°51'35" East
along said Southwesterly line 4.10 feet; thence Southeasterly along said Southwesterly line on
the arc of a 186.93 foot curve to the left a distance of 49.53 feet (the central angle of said curve is
15°10'50" and the long chord bears South 17°27'00" East 49.38 feet); thence South 25°02'25"
East along said Southwesterly line 48.60 feet; thence Southeasterly along said Southwesterly line
on the arc of a 423.00 foot curve to the left a distance of 103.39 feet (the central angle of said
curve is 14°00'15" and the long chord bears South 32°02'32" East 103.13 feet); thence South
39°02'40" East along said Southwesterly line 7.81 feet to the Northwesterly line of Western
Avenue; thence South 50°55'50" West along said Northwesterly line 223.25 feet to Point of
Beginning.
EXHIBIT C
Blueprints
To be prepared and attached at a later date.
EXI S TI N G C O N C O UR SE PLA N
SHOR
W WESTERN AVE
ELINE
DRIVE
MAIN ENTRY
TOILET ROOM
KITCHEN
CONCESSION
CIRCULATION 4TH STREET
PROPOSED
RAD DAD’S FOOTPRINT
PROPOSED
OUTDOOR SPACE
10 RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
1. BLACK ANODIZED ALUMINUM AND GLASS 4. TASTING ROOM-LIGHT GRIND EXISTING FLOOR, EXPOSED 8. BLACKENED STEEL EXPANDED MESH IN STEEL FRAME 12. FRONT BAR- BLACK STAINED CONCRETE TOP,
ENTRY DOOR MEDIUM STILES, 3’-0”W X 7’-4”H CONC. CEILING, CORRUGATED METAL WALL PANEL SOUTH MOUNTED ON DECK 48” HIGH 90’ LONG CEMENT BD FRONT WITH STEEL FOOT REST/BASE
WALL AND LED ACCENT LIGHTING AND 18” HIGH GLASS
2. DARK GREY COMPOSITE DECKING (TREX) ON NON-COMB 9. BLACKENED STEEL HANDRAIL. 2”X 2” SQUARE TUBING ON SNEEZE GUARD
FRAMING. 10” HIGH ABOVE CONCOURSE WITH BLACKENED 5. CUSTOM STEEL AND GLASS DOORS IN 9’-4”H X 16’-0” L POSTS 5’-0” O.C. MOUNTED TO DECK
STEEL EDGE PLATE AND DECORATIVE LED LIGHTING BELOW. OPENING. 13. SS FOOD PREP COUNTER, 3’X10’ PASS THRU
10. TACO ASSEMBLY HALL- CLEAN AND POLISH EXISTING OPENING IN BACK WALL
3. BLACKENED STEEL EXPANDED MESH IN STEEL FRAME. 6. OPTION A-FOLDING “HANGAR” STYLE DOOR WITH GLASS TERRAZZO FLOOR. CORRUGATED METAL WALL PANEL
FROM DECK TO UNDERSIDE OF ROOF ~10’-0”H X 12’-0” LONG. OPTION B-GLASS AND ALUMINUM OH SECTIONAL DOOR. SOUTH AND EAST WALL, “POLAROID” LED CHANDELIER
14. SS BACK COUNTER, EXPANDED METAL MESH
LIQOUR DISPLAY SHELVING WITH ACCENT LIGHTS
GLASS VESTIBULE BEHIND AT ENTRY. 9’-4”H X 16’-0” L FRONT BAR- BLACK STAINED CONCRETE TOP, CEMENT
11. 15. EXHAUST HOOD AND FAN COORDINATE WITH
7. EXISTING BRICK VENEER WALL. CLEAN AND POINT AS BD FRONT WITH STEEL FOOT REST/BASE AND LED
NECESSARY ACCENT LIGHTING FOOD SERVICE EQUIPMENT
16. OFFICE - PAINTED GYP WALLS EXISTING CEILNG,
GLASS DOOR AND SIDE LIGHT
21. 17. WALK-IN COOLER/FREEZER
1. 1. 1.
5'-6"
18. TOILET ROOMS - EXISTING CONC FLOOR LIGHT
POLISH, PORCELAIN TILE AT WET WALLS,
3. THE DECK PROVIDE EXAUST
7.
2. 19. STEEL AND EXPANDED METAL GATE
8.
EXISTING 20. “LIVE WALL” CILANTRO GARDEN ON EXISTING
CONCOURSE WALL
MAINTAIN 10’
"
9. 7'
-6 CLEAR WIDTH 21. TAPE WALL MOSAIC - ART INSTALLATION FO
4. MULTICOLORED CASSETTE TAPES
7. 6. 5.
TASTING TACO ASSEMBLY HALL
10'-5"
ROOM
8.
10.
7'-7 1/2"
INTERIOR AREA = 4,300 S.F.
4,289.133 sf
1. 2'-6" 17'-0" 17'-0" 5'-0" 22'-5" 19.
ARENA
16'-5 1/2"
ENTRY
11. 11. 12.
BAR BAR BARCADE
PLATING
8'-10"
9'-2"
14. 14. 13. 13'-9"
OFF. M W
15.
8'-5"
6'-0" 13'-3" 7'-3 1/2" 6'-11 1/2"
20. KITCHEN 16. 17. 18. 18.
11'-9"
41'-3"
4'-8"
FLOOR PLAN
13
SCALE: 1/8”= 1’-0”
RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
C O UN C O UR SE EX TER IO R
8 RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
5'-6"
THE DECK
6"
7'-
TASTING TACO ASSEMBLY HALL
10'-5"
ROOM
7'-7 1/2"
INTERIOR AREA = 4,300 S.F.
4,289.133 sf
2'-6" 17'-0" 17'-0" 5'-0" 22'-5"
ARENA
16'-5 1/2"
ENTRY
BAR BAR BARCADE
PLATING
8'-10"
9'-2"
13'-9"
OFF. M W
8'-5"
6'-0" 13'-3" 7'-3 1/2" 6'-11 1/2"
KITCHEN
EXTERIOR DEVELOPMENT OPTION 2- AWNING
11'-9"
41'-3"
4'-8"
KEY PLAN AWNNG ROOF PITCHED TO EXISTING ROOF
“LIVEWALL” CILANTRO VERTICAL GARDEN
VERTICAL STRETCHED FABRIC BY AWNING EXISTING METAL WALL PAINTED
MANUFACTURER
PRINTED GRAPHIC LOGO ON FABRIC
PAINTED STEEL FRAMING BY AWNING
MANUFACTURER
SUNKEN CONCRETE PATIO WITH ROLLED RAMP
EDGES AND GALVANIZED PIPE HANDRAIL
16 RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
ENTRY DEVELOPMENT
5'-6"
EXISTING BRICK VENEER WALL.
THE DECK
7'-
6"
CLEAN AND POINT AS NECESSARY
TASTING TACO ASSEMBLY HALL
TAPE WALL MOSAIC - ART INSTALLATION FOR
10'-5"
ROOM
MULTICOLORED CASSETTE TAPES
7'-7 1/2"
INTERIOR AREA = 4,300 S.F.
4,289.133 sf
2'-6" 17'-0" 17'-0" 5'-0" 22'-5"
ARENA
16'-5 1/2"
ENTRY
BLACK ANODIZED ALUMINUM AND GLASS
BAR BAR BARCADE
PLATING
8'-10"
9'-2"
13'-9"
OFF. M W
ENTRY DOOR MEDIUM STILES, 3’-0”W X 7’-4”H
8'-5"
6'-0" 13'-3" 7'-3 1/2" 6'-11 1/2"
11'-9" KITCHEN
41'-3"
BLACKENED STEEL EXPANDED MESH IN STEEL FRAME.
4'-8"
FROM DECK TO UNDERSIDE OF ROOF ~10’-0”H X 12’-0” LONG.
KEY PLAN GLASS VESTIBULE BEHIND AT ENTRY.
DARK GREY COMPOSITE DECKING (TREX)
ON NON-COMB FRAMING. 10” HIGH ABOVE
CONCOURSE WITH BLACKENED STEEL EDGE
PLATE AND DECORATIVE LED LIGHTING BELOW.
BLACKENED STEEL HANDRAIL. 2”X 2” SQUARE
TUBING ON POSTS 5’-0” O.C. MOUNTED TO DECK
CORRUGATED METAL WALL PANEL ON EXISTING
CMU WALL
OPTION A-FOLDING “HANGAR” STYLE DOOR WITH
GLASS OPTION B-GLASS AND ALUMINUM OH
SECTIONAL DOOR.
9’-4”H X 16’-0” L
17 RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
TACO ASSEMBLY HALL- CLEAN AND POLISH EXISTING TACO ASSEMBLY HALL DEVELOPMENT
5'-6"
THE DECK
TERRAZZO FLOOR. CORRUGATED METAL WALL PANEL
SOUTH AND EAST WALL, “POLAROID” LED CHANDELIER
6"
7'-
BLACK ANODIZED ALUMINUM AND GLASS
TASTING TACO ASSEMBLY HALL
10'-5"
ROOM
ENTRY DOOR MEDIUM STILES, 3’-0”W X 7’-4”H
7'-7 1/2"
INTERIOR AREA = 4,300 S.F.
4,289.133 sf
2'-6" 17'-0" 17'-0" 5'-0" 22'-5"
ARENA
CUSTOM STEEL AND GLASS DOORS IN 9’-4”H X 16’-0” L
16'-5 1/2"
ENTRY
OPENING.
BAR BAR BARCADE
PLATING
8'-10"
9'-2"
13'-9"
OFF. M W
8'-5"
6'-0" 13'-3" 7'-3 1/2" 6'-11 1/2"
BLACKENED STEEL EXPANDED MESH IN STEEL FRAME
11'-9" KITCHEN
41'-3"
4'-8"
MOUNTED ON DECK 48” HIGH 90’ LONG
KEY PLAN DARK GREY COMPOSITE DECKING (TREX)
CORRUGATED METAL WALL PANEL ON EXISTING ON NON-COMB FRAMING. 10” HIGH ABOVE
CMU WALL CONCOURSE WITH BLACKENED STEEL EDGE
PLATE AND DECORATIVE LED LIGHTING BELOW.
FRONT BAR- BLACK STAINED CONCRETE TOP,
CEMENT BD FRONT WITH STEEL FOOT REST/
BASE AND LED ACCENT LIGHTING
SS BACK COUNTER, EXPANDED METAL MESH
LIQOUR DISPLAY SHELVING WITH ACCENT LIGHTS
SS FOOD PREP COUNTER, 3’X10’ PASS THRU
OPENING IN BACK WALL
FRONT BAR- BLACK STAINED CONCRETE TOP,
CEMENT BD FRONT WITH STEEL FOOT REST/BASE
AND LED ACCENT LIGHTING AND 18” HIGH GLASS
SNEEZE GUARD
EXISTING
CONCOURSE
NOT IN SCOPE
19 RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
21 RAD DAD’S | TACOS & TEQUILA 0 6 . 01. 2 017 |
AGENDA ITEM NO. _______________
CITY COMMISSION MEETING __________________________
TO: Honorable Mayor and City Commissioners
FROM: Frank Peterson, City Manager
DATE: July 11, 2017
RE: Authorization to repair/Refurbish 1999 Olympia
SUMMARY OF REQUEST:
The City owns and operates a 1999 Olympia Ice Resurfacing Machine (often referred to as a
Zamboni). The Olympia has required significant repairs over the past three hockey seasons, and
almost resulted in the inability to finish a Lumberjack’s playoff game earlier this year. A replacement
Olympia would likely cost between $75,000 and $125,000, depending on the age of the unit. Staff is
seeking permission to send the current Olympia to be refurbished. The cost of the project is
dependent upon the components that are ultimately replaced. Arena management expect this cost
to be between $30,000 and $35,000, as a number of major components have already been replaced
in the past year.
FINANCIAL IMPACT:
Not to exceed $35,000.
BUDGET ACTION REQUIRED:
A budget adjustment will be included as part of the 1st quarter budget reforecast, with the proceeds
coming from the Arena Fund.
STAFF RECOMMENDATION:
To approve the request and authorize the installation of the new dasher board system at a cost not to
exceed $35,000.
COMMITTEE RECOMMENDATION:
None.