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CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 12, 2019 @ 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:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Medicaid CHIP Community Development Lead Hazard Control Program –
2019 Community & Neighborhood Services
C. Water Main Repair Department of Public Works
D. 2019 User Fee Addition – Commercial Launch Ramp Permit Department
of Public Works
E. Municipal Vehicle Purchase DPW/Equipment
F. Water Service Line Replacements Department of Public Works
G. Sanford/Peck Traffic Signal Design Engineering
H. Muskegon Fire Department Equipment Request (Turnout Gear)
Public Safety
I. Short Term Vacation Rentals Public Safety
J. Approval of Several Neighborhood Enterprise Zone Certificates
Planning & Economic Development
K. Rezoning of 1021 Jefferson Street Planning & Economic Development
L. Restrictive Covenant for 350 Shoreline Drive Planning Department
M. Sale of City Owned Property to Damfino Development, LLC City
Page 1 of 2
Manager
N. Approval of Contract for Critical Dune Enforcement Planning &
Economic Development
O. Organizational Changes City Manager
P. Sale of City Owned Property Planning & Economic Development
□ PUBLIC HEARINGS:
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Sale of City Owned Lot at 1021 Jefferson Street Planning & Economic
Development
B. PILOT-Gencap 1021 Jefferson Limited Dividend Housing Association, LLC
Planning & Economic Development
□ 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 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
Page 2 of 2
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meetings
Date: February 7, 2019
Here is a quick outline of the items on our once again very full agenda(s):
WORK SESSION
1. We would like to discuss the proposed contract with Prism Science and Technology for
enforcement of our Critical Dune Ordinance. Representatives from Prism will be in
attendance to explain the process.
2. We would like to discuss the proposed development at 1021 Jefferson, our current
employee parking lot. Gencap 1021 Jefferson Limited Dividend Housing Association, LLC
will be presenting their plans for the mixed use development which focuses on affordable
housing. Gencap is requesting a payment in lieu of taxes for the project.
3. We would like to provide an opportunity for the Lakeside neighborhood to discuss funding
options for utility relocations along Lakeshore Drive. Our expectation is that a decision
can be made on whether to move forward with a special assessment to cover the costs.
4. We would like to discuss the sale of a small land-locked parcel to Damfino Development,
LLC for inclusion in their development, The Docks. A map showing the parcel size and
location is included in your packet.
5. We would like to share with you our proposal for converting Peck and Sanford to 2 way
streets. The limits of work are from Hackley in Muskegon Heights to Apple Avenue. We
are coordinating with Muskegon Heights and have their agreement to move forward.
6. We would like to develop topics of discussion for our upcoming joint meeting with the
Muskegon Public Schools Board. Your packet includes some items staff have been
considering.
7. We would like to discuss our Short Term Vacation Rental Ordinance and propose that you
adopt it at the regular meeting.
8. We would like to discuss recommendations to change staffing at the city. We are seeking
to expand our focus on economic development efforts. This change warrants a separation
of duties at the division level. In addition, we are proposing to on-board arena staff to
city government rather than use a staffing agency.
Memorandum – City Commission Meetings
February 7, 2019
REGULAR MEETING
1. Under the Consent Agenda, we are asking the Commission to consider the following:
a. Approval of meeting minutes from the most-recent City Commission meeting.
b. Authorization to hire contractors to monitor and abate lead within homes
approved under our Lead Safe Muskegon Program funded by the Michigan
Department of Health and Human Services.
c. Approval to enter into an agreement with Jackson-Merkey Contractors to repair
the water main in Roberts Street in the Ryerson Creek gully. City staff are unable
to complete the repair work due to the high water table in the area.
d. Approval to add user fees for commercial launch permits.
e. Approval to purchase a replacement trackless municipal vehicle due to fire
damage to our current vehicle. We are grateful that Matt Beerman, who was
driving the vehicle when it caught fire, was unharmed.
f. Approval to award a contract for the replacement of water service lines to the low
bidder, Goyette Mechanical. Funding for this work is covered by a grant from the
DEQ. We used an innovative bidding process for this project where we asked
bidders to vary the amount of work completed within a fixed budget.
g. Approval to enter into an agreement with Wade Trim to design traffic signal
upgrades for the conversion of Peck and Sanford to 2 way streets.
h. Approval to purchase turnout gear for the 13 new fire fighters.
i. Approve the Short Term Vacation Rental ordinance.
j. Approve Neighborhood Enterprise Zone certificates for several properties within
the Terrace Point Landing development. All local and state requirements have
been met by each applicant.
k. Approval to rezone the property at 1021 Jefferson Street (the city hall employee
parking lot) to Form Based Code, Neighborhood Core. The rezoning sets the stage
for the proposed mixed use development of affordable housing and supporting
commercial space.
Memorandum – City Commission Meetings
February 7, 2019
l. Authorization for the mayor and clerk to sign a restrictive covenant on 350
Shoreline Drive. The property currently serves as a parking lot for the Shoreline
Inn and the adjacent marina and dock. Environmental remediation of the
groundwater will continue.
m. Approval to sell a small landlocked parcel to Damfino Development LLC.
n. Approval of the contract with Prism Science and Technology and the associated
fee schedule for enforcement of our Critical Dune ordinance.
o. Approval of the staff recommended organizational changes.
p. Approval to sell the bike path parcel adjacent to the Hartshorn Village
development. The developer will relocate the bike path to the approximate
alignment of the current roadway to the launch ramp within the charter park, and
access to the launch ramp will be relocated to the west of Fricano’s.
2. Under the New Business, we are asking the Commission to consider the following:
a. We are seeking authorization to sell the city hall employee parking lot at 1021
Jefferson Street.
b. We are seeking approval of a Payment in Lieu of Taxes for the proposed
development at 1021 Jefferson Street. The Contract for Housing Exemption and
Professional Services Agreement will need to be signed by the mayor and clerk.
Let me know if you have any questions/comments/concerns
Date: February 5, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the January 22, 2019
Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JANUARY 22, 2019 @ 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, January 22, 2019. Pastor
Tim Cross, Living Word Church, 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 (arrived at
5:35 p.m.), Byron Turnquist, Debra Warren, Willie German, Jr., and Dan Rinsema-
Sybenga, City Manager Frank Peterson, City Attorney Brian Lieberman, and City
Clerk Ann Meisch.
Absent: Vice Mayor Eric Hood
HONORS AND AWARDS:
Public Safety Director, Jeff Lewis, presented Pastor Time Cross with a plaque to
show appreciation for the support that Pastor Cross and Living Word Church has
shown to the Muskegon Police Department.
2019-05 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the January 7, 2019
Worksession and January 8, 2019 Regular Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Adopt a Resolution Approving the Liquor License Application for Rake
Beer Project, LLC City Clerk
SUMMARY OF REQUEST: To adopt a resolution approving the request for a
Page 1 of 8
Liquor License for Rake Beer Project, LLC to be issued a Micro Brewer’s License
and Small Wine Maker’s License.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Adopt a resolution approving the request.
C. Citizen’s Police Review Board By-laws Amendment City Clerk
SUMMARY OF REQUEST: To amend the Citizen Police Review Board bylaws and
have the Minority Based organizations state:
The following organizations shall qualify as Minority Based Organizations pursuant
to Section II A (1) of the Citizen’s Police Review Board Policy:
1. Muskegon Urban League (inactive/no longer exists)
2. NAACP – Muskegon Chapter
3. Latinos Working for the Future (inactive/no longer exists)
4. Hispanic Community Services Coalition
5. Nation of Islam
6. Ad Hoc Committee for Equality and Justice (inactive/no longer exists)
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To amend the Citizen Police Review Board
bylaws as stated.
D. 2019 Dozer Rental for Beach Leveling Department of Public Works
SUMMARY OF REQUEST: Staff is requesting permission to enter into a rental
agreement with Contractors Rental Corporation out of Grand Rapids, Michigan
for a John Deere 850K WLT Dozer for leveling sand at Pere Marquette Beach.
FINANCIAL IMPACT: Estimated cost of the 2019 Dozer rental is $9,800 (which
includes $550 for delivery and pickup).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
E. Administrative Vehicle Replacement Department of Public
Works/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase two (2) Chevy Impalas from
Berger Chevrolet off of the Oakland County Contract. This will replace the two
oldest administrative vehicles currently being used. Cost to the City will be
$23,078.00 per vehicle.
Page 2 of 8
FINANCIAL IMPACT: $23,078.00 x 2, for a total price of $46,156.00.
BUDGET ACTION REQUIRED: None. This is the amount budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase two (2) Chevy
Impala’s from Berger Chevrolet.
F. SP 91820 Pere Marquette Park Recreational Improvements Department
of Public Works
SUMMARY OF REQUEST: To award contract (SP 91820) for park recreational
improvements of the Pere Marquette Park bath house and playground area,
along with alternates 1, 3, and 4.
Six contractors submitted bids for this as follows:
Tridonn Construction Co. $466,026.00
Patron Construction Inc $487,808.77
Muskegon Quality Builders, Inc $498,363.00
JKB Construction Inc $548,725.00
Griffith Builders Inc $558,337.00
TJM Services $640,073.20
FINANCIAL IMPACT: $466,026.00
BUDGET ACTION REQUIRED: None. Initially budgeted for $385,000.00 from the
CIP but will be adjusted in the next budget reforecast.
STAFF RECOMMENDATION: Award the project to the low bidder, Tridonn
Construction, Inc.
G. LC Walker Arena – HVAC Upgrades City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the proposal to
undertake significant upgrades to the HVAC system at the LC Walker Arena. The
Arena’s current steam boiler system is original to the building and is both
inefficient and unreliable. The upgrade will result in significant utility savings
annually. This improvement will be combined with recently approved
improvements to the roof and dehumidification system and staff will be
presenting Commissioners with financing options at the February Work Session.
The DDA has indicated initial support of $215,000 annually to assisting with the
annual debt payment associated with these improvements.
FINANCIAL IMPACT: $697,894
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the City Manager to accept the
proposal from Hurst Mechanical.
Motion by Commissioner Turnquist, second by Commissioner German, to
Page 3 of 8
approve the consent agenda as presented, except item G.
ROLL VOTE: Ayes: Gawron, Warren, German, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
2019-06 ITEMS REMOVED FROM CONSENT:
H. Management Agreement Between City of Muskegon and Parkland
Acquisition Two, LLC City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the management
agreement with Parkland Acquisitions Two. Parkland will be operating the
convention center on behalf of the City of Muskegon.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the agreement and authorize the
Mayor and Clerk to sign.
Parkland Acquisition Two, LLC owner, Jon Rooks, addressed the City Commission
regarding this item.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to approve the agreement and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Johnson, Gawron, Warren, German, Rinsema-Sybenga, and
Turnquist
Nays: None
MOTION PASSES
2019-07 PUBLIC HEARINGS:
A. Request to Establish an Obsolete Property District – 285 West Western
Avenue Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Parkland Muskegon, Inc, has requested the establishment of an
Obsolete Property District for their property at 285 W Western Avenue. The
establishment of the Obsolete Property District would allow them to apply for an
Obsolete Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the creation of
the district.
Page 4 of 8
PUBLIC HEARING COMMENCED:
John Rooks, 285 W. Western property owner explained the Obsolete Property
District.
Michael Haueisen, 903 Turner, encouraged commissioners to approve the
District and Certificate.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to close the public hearing and approve the creation of the district.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
Nays: None
MOTION PASSES
B. Request to Issue an Obsolete Property Certificate – Parkland Muskegon,
Inc – 285 West Western Avenue Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Parkland Muskegon, Inc. has requested the issuance of an Obsolete
Property Certificate for their property located at 285 W Western Avenue. Total
capital investment for this project is estimated to be $508,450 and tenants will
include a market and a credit union. The investment amount qualifies the
applicant for a 12-year abatement.
FINANCIAL IMPACT: If an Obsolete Property Certificate were issued, the
property taxes would be frozen at the pre-rehabilitated rate for the duration of
the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED:
No public comments were received.
Motion by Commissioner Warren, second by Commissioner German, to close
the public hearing and approve the Obsolete Property Rehabilitation Exemption
Certificate for 285 W. Western.
Motion by Commissioner Johnson, second by Commissioner Warren, to
amend the motion to have the certificate be for a duration of six years
rather than twelve years.
ROLL VOTE: Ayes: Johnson
Nays: German, Rinsema-Sybenga, Turnquist, Gawron, and
Warren
Page 5 of 8
MOTION FAILS
ROLL VOTE ON ORIGINAL MOTION: Ayes: Warren, German, Rinsema-Sybenga,
Turnquist, Gawron
Nays: Johnson
MOTION PASSES
2019-08 NEW BUSINESS:
A. Convention Center Construction Management Services – Preconstruction
Agreement City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the agreement with
Clark Construction Company to assist in the preconstruction phase of the
convention center development. It is important to bring the preferred
construction manager onto the project during the final design phases to help
ensure a quality project that can be completed on time and on budget. Staff
anticipates returning to the Commission in the coming weeks with the contract
to award the Construction Management Services contract to the same
contractor.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the agreement and authorize the Mayor
and Clerk to sign.
Jeff Salowitz, Clark Construction Company, explained the process and their role.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the agreement and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Warren, and
German
Nays: None
MOTION PASSES
B. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
157 Allen Avenue
1934 Hudson Street
1505 Sixth Street
1853 Sanford Street
2555 Morton Avenue
SUMMARY OF REQUEST: This is to request that the City Commission concur with
Page 6 of 8
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:
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to concur
with the Housing Board of Appeals decision to demolish 157 Allen, 1934 Hudson,
2555 Morton, and 1853 Sanford.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, German, and Rinsema-
Sybenga
Nays: None
MOTION PASSES
Motion by Commissioner German, second by Commissioner Warren, to concur
with the Housing Board of Appeals decision to demolish 1505 6th Street.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
Nays: Warren
MOTION PASSES
C. Amendment to the Medical Marihuana Facilities Licensing Overlay District
Planning & Economic Development
SUMMARY OF REQUEST: The property owner at 185 W. Laketon Avenue is
requesting to amend the Medical Marihuana Licensing Facilities Act (MMFLA)
Overlay District to include their property within the district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff does not recommend approval of the
amendment.
COMMITTEE RECOMMENDATION: At the January 10 Planning Commission
meeting, a motion was made to approve the amendment as presented. The
Planning Commission voted 6-2 against the motion.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
Page 7 of 8
to include the property at 185 W. Laketon Avenue into the Medical Marihuana
overlay district.
ROLL VOTE: Ayes: Rinsema-Sybenga, Johnson, and Warren
Nays: Turnquist, Gawron, and German
MOTION FAILS (NO ACTION)
ANY OTHER BUSINESS:
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 9:05 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 8 of 8
Commission Meeting Date: February 12, 2019
Date: February 5, 2019
To: Honorable Mayor and City Commission
From: Community and Neighborhood Services Department
RE: Medicaid CHIP Community Development Lead Hazard Control Program
-2019
SUMMARY OF REQUEST: Community and Neighborhood Services Department has budget
provisions to hire Abatement Contractors and a Lead Abatement Contractor team to monitor
the lead abatement projects for our Lead Safe Muskegon Program; funded by the Michigan
Department of Health and Human Services (MDHHS). A list of Lead Abatement Contractors
have expressed an interest in working with the city to serve an expected 25 households.
Below are the proposed Abatement Contractors enlisted for abatement work:
Tony Beattie Beattie Bros.
Curtis Holden Gray Space Construction
Viv Jaunais Great Lakes Builders
Francena DePung Nassau Construction
Chuck McCloud TK Construction
Joe Fehler Midwest Builders
Joe Ferrier 4 Star Builders
Vicki Luthy External Consultant
Catherine Phelps AAA Lead Inspections
FINANCIAL IMPACT: $ 880,005.00
BUDGET ACTION REQUIRED: NONE
STAFF RECOMMENDATION: Support the hiring of the proposed Abatement Contractors for the
Lead Safe Muskegon Program.
Date: 2/12/19
To: Honorable Mayor and City Commission
From: Department of Public Works
RE: Water Main Repair
SUMMARY OF REQUEST:
Authorize Staff to enter into an agreement with Jackson-Merkey
Contractors, the lowest responsible bidder, to perform water main repairs in
the Roberts Street ROW behind Steel School in the Ryerson Creek gully.
Due to the location and depth of the water main along with a high-water
table, our in-house work force is unable to perform the repair.
Two (2) contractors submitted bids for this project as follows:
Jackson-Merkey Contractors……………………………. $30,150
McCormick Sand………………………………………... $49,500
FINANCIAL IMPACT:
Total Cost $30,150.00
BUDGET ACTION REQUIRED:
None at this time. Funds will come from the water fund.
STAFF RECOMMENDATION:
To authorize Staff to enter into an agreement for water main repairs with
Jackson-Merkey Contractors.
AGENDA ITEM NO._____________
CITY COMMISSION MEETING ___________________
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: February 12, 2019
SUBJECT: 2019 User Fee Addition-Commercial Launch Permit
SUMMARY OF REQUEST:
Staff is requesting permission to add to the User Fee Schedule a Commercial Launch Ramp
Sticker and fee of $250.00 per permit plus $50.00 for each additional permit, per calendar year.
FINANCIAL IMPACT:
Revenue generated from fee.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Approve request.
COMMITTEE RECOMMENDATION:
Date: 2/12/2019
To: Honorable Mayor and City Commissioners
From: DPW/Equipment
RE: Municipal Vehicle Purchase
SUMMARY OF REQUEST:
The Equipment Division is requesting permission to purchase one (1) Trackless
Municipal Vehicle from Bell Equipment Co. from the Mi-Deal State Contract. Cost for
this item is $125,782.85 coming from the Equipment Division fund.
FINANCIAL IMPACT:
$125,782.85
BUDGET ACTION REQUIRED:
This purchase will be added into the Equipment Budget and reflected in the third quarter re-
forecast.
STAFF RECOMMENDATION:
Authorize staff to purchase one (1) Trackless Municipal Vehicle from Bell Equipment Co.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\021219\06a_2019Trackless.doc
Date: February 12th, 2019
To: Honorable Mayor and City Commissioners
From: Department of Public Works
RE: W-91838.1 Water Service Line Replacements
SUMMARY OF REQUEST:
To award contract (W-91838.1) for replacement of water service lines at various
locations within the city of Muskegon
Two (2) contractors submitted bids for this project as follows:
Goyette Mechanical...................................................... 21 Each
McCormick Sand .......................................................... 15 Each
Bids were selected based on a fixed budget and variable scope. Bidders were
instructed to bid based on how much work they could complete within a fixed budget
with the winning bid going to the company that could complete the most work.
FINANCIAL IMPACT:
$100,000.00
BUDGET ACTION REQUIRED:
None. Funded through grant revenue from MDEQ.
STAFF RECOMMENDATION:
Award the project to the low bidder, Goyette Mechanical.
Date: February 12th, 2019
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Sanford / Peck Traffic Signal Design
SUMMARY OF REQUEST:
Authorize staff to enter into an engineering services agreement with Wade Trim, Inc. to
complete engineering for traffic signal upgrades along Peck and Sanford Streets. The
upgrades would include modifications to the existing signals that would allow for the
eventual conversion of Peck and Sanford Street to 2-way traffic.
Requests for Proposals were solicited for this contract with three firms submitting
proposals. Proposals were reviewed by staff and the Wade Trim proposal is
recommended.
Wade Trim.................................................................... $21,000.00
Progressive AE ............................................................ $22,000.00
Prein & Newhof ............................................................ $104,000.00
FINANCIAL IMPACT:
$21,000.00
BUDGET ACTION REQUIRED:
None, this will be addressed during a future reforecasting.
STAFF RECOMMENDATION:
Authorize staff to enter into an engineering services agreement with Wade Trim.
Wade Trim, Inc.
2851 Charlevoix Drive SE, Suite 108 • Grand Rapids, MI 49546
616.956.3304 • www.wadetrim.com
December 13, 2018
City of Muskegon
1350 East Keating Avenue
Muskegon, MI 49442
Attention: Mr. Leo Evans, City Engineer
Re: Proposal for Traffic Signal Design Services for the Sanford Street and Peck Street
Two-Way Conversion Project, City of Muskegon
Dear Leo:
Thank you for the opportunity to propose on the traffic signal design services for the Sanford
Street and Peck Street Two-Way Conversion Project. Wade Trim has a well-established
Michigan Department of Transportation (MDOT)-prequalified traffic signal design team with
experience preparing traffic signal plans for two-way street conversion projects, as well as
experience previously designing signals at four of the six project locations. Following is a brief
description of our proposed Scope of Services, Schedule, and Fee.
Scope of Services
The design for this project entails the preparation of traffic signal modification plans at the six
intersections listed below to accommodate two-way traffic on Sanford Street and Peck Street.
1. Sanford Street at Apple Avenue (M-46)
2. Peck Street at Apple Avenue (M-46)
3. Sanford Street at Laketon Avenue
4. Peck Street at Laketon Avenue
5. Sanford Street at Hackley Avenue
6. Peck Street at Hackley Avenue
The traffic signals will be modified to accommodate two-way traffic along Sanford Street and
Peck Street, including adding and adjusting signal heads and adding vehicle detection as
needed, but will not include new poles or controllers. The signal design scope includes traffic
signal modifications only and does not include full traffic signal modernization. The signal
modifications will meet City of Muskegon and MDOT design standards. If full signal
modernization becomes required at any of the project locations based on MDOT or City of
Muskegon review, we will prepare a separate scope and fee for this additional effort.
Since the work scope assumes that all existing poles will be reused, our Scope of Services does
not include any geotechnical services for soil borings for steel strain pole foundations. Sidewalk
ramp design is also not included in the work scope.
The traffic signal modification plans will be developed using existing CAD files and base
drawings. Wade Trim has previously designed the signals at the first four project locations and
have these CAD files readily available. Collecting topographic survey is not included in our
Scope of Services. Per our email discussion, if survey is required at any of the project locations,
the City of Muskegon will collect the survey and provide it to the designer.
City of Muskegon
December 13, 2018
Page 2
The traffic signal modification plans for each intersection will include a removal plan, removal
cabling diagram, installation plan, installation cabling diagram, materials list, and updated span
and wattage calculations. The plan set will also include a legend sheet, notes sheet, and traffic
signal detail sheets, as well as special provisions for construction and an Engineer’s Estimate.
A set of preliminary plans will be provided to the City of Muskegon for review. The two traffic
signals along Apple Avenue (M-46) will require coordination with and review by MDOT. Per the
Request for Pricing (RFP), the City of Muskegon will lead the coordination effort with MDOT on
obtaining the Signal Layout Request and all permitting. All comments from the City of Muskegon
and MDOT will be incorporated into the final plan set.
Our Scope of Services does not include any traffic capacity analysis or the development of
updated timing plans. Based on our email discussion, the City of Muskegon will handle these
work items internally. If requested, these services may be provided by Wade Trim for an
additional fee.
During construction, we will review shop drawings, answer questions, and revise drawings as
needed. The City of Muskegon will complete the construction engineering and site inspection.
Schedule
Per the RFP, the preliminary signal modification plans are due by March 1, 2019 with final plans
due by May 1, 2019. We will work with the City to perform the design work and provide project
deliverables to meet these deadlines.
Fee
We estimate the cost to provide the traffic signal design services, as outlined in this proposal,
will be billed on an Hourly Basis for a Not to Exceed Fee of $21,000. Any requested additional
services not included in our work scope will be billed on an Hourly Basis in addition to our stated
Not to Exceed Fee.
We have enclosed our Short Form Professional Services Agreement. If this proposal meets
your approval, please return a signed and dated copy to our office. Our receipt of the executed
Agreement will serve as our Notice to Proceed.
If you have any questions or wish to make changes to the Scope of Services, please feel free to
contact us any time. We look forward to hearing from you.
Sincerely,
Wade Trim, Inc.
Jill N. Bosserd Aimée L. Giacherio, PE
Traffic Engineer / Project Manager Vice-President
JNB:ALG:jlb
AAA 8180.18N
20181213_EVANS-LTR.DOCX
Enclosure
COMMISSION MEETING DATE February 12, 2019
Date: February 1, 2019
To: Honorable Mayor and City Commissioners
From: Jeffrey Lewis, Director of Public Safety
RE: MUFD Equipment Request (turnout gear)
_______________________________________________________
SUMMARY OF REQUEST:
The Director of Public Safety requests that the Commission authorize the amount of
$34,051.42 for thirteen (13) sets of turnout gear for full-time firefighters in which have been in-
service since January 2019. The safety equipment is personalized to each firefighter and
will be issued when received. The cost of the turnout gear per set is $2,012.95 through
Phoenix Safety Outfitters.
FINANCIAL IMPACT:
n/a
BUDGET ACTION REQUIRED:
Equipment to impact the Fire General Fund
STAFF RECOMMENDATION:
Staff recommends approval of this purchase request.
1|P a g e
COMMISSION MEETING DATE February 12, 2019
Date: February 5, 2019
To: Honorable Mayor and City Commissioners
From: Jeffrey Lewis, Director of Public Safety
RE: Short Term Vacation Rentals
_______________________________________________________
SUMMARY OF REQUEST:
The Director of Public Safety requests that the Commission consider approving a stand-alone
ordinance “Short Term Vacation Rentals” regulation. The city has experienced an increase
in short term vacation rentals over the past couple of years. These specialty rental offerings
are not regulated in our current “Housing Rental” ordinance. The ordinance will address
applying and receiving a short term rental certificate and a safety inspection of the unit(s).
Certificate holders will be responsible for insuring tenants are aware and complies with
relevant city ordinances, with a focus on number of occupants, recreational fires, parking,
fireworks, noise, and trash to name a few noted problem areas that staff has experienced in
an attempt to regulate short term rentals. The requested ordinance will improve neighborhood
relations where short term rentals are now located, create a safer and peaceful environment
for short term tenants and residents.
FINANCIAL IMPACT:
Revenue generated will be put into a separate account to be used for expenses and
purchasing amenities for parks.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends approval of the short term vacation rentals ordinance.
1|P a g e
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 10, Article VI of the Code of Ordinances of the City of Muskegon,
Michigan, Section 353 is adopted to read as follows:
Sec. 10-353. Short Term Vacation Rentals.
(a) Purpose. This section, concerning the registration of short term vacation rentals in
the city, is enacted to protect the health, safety and welfare of persons in the city by
providing the city with the information necessary to ensure compliance with safety,
structure and fire laws, identify business activities and establishments which affect or
involve matters related to traffic, congestion, occupancy and density of occupancy,
the physical condition of places where persons are renting as short term vacation
rentals, and the enforcement of the law, including local, state and federal laws, rules
and regulations, applying to short term vacation rentals located in the city.
(b) Definitions. In addition to the definitions provided for in Section 10-281, the
following terms shall mean:
Business Activity shall mean the advertising for lease or rental of any structure for
a short term vacation rental.
Family shall mean
(1) An individual or group of two (2) or more persons related by blood, marriage,
or adoption, together with foster children and attendants of the principal
occupants who are domiciled together as a single housekeeping unit in a dwelling
unit; or
(2) A collective number of individuals domiciled together in one (1) dwelling
unit whose relationship is of a continuing, non-transient domestic character and
who are cooking and living as a single nonprofit housekeeping unit. This
definition shall not include any society, club, fraternity, sorority, association, half-
way house, lodge, coterie, organization, group of students, or other individuals
whose domestic relationship is of a transitory or seasonal nature, or is otherwise
1|Page
not intended to be of a permanent nature. Said definition shall not apply in
instances of group care centers or state licensed residential facilities as established
under P.A. 395 of 1976.
(3) Living arrangements which would otherwise comply with the description of a
family shall not constitute a family if the said arrangements have occurred as a
result of commercial or other advertising, or the offering of rooms for rent. Any
financial arrangement, except a true sharing of the expenses of all the facilities in
the single household unit shall be presumed to constitute renting a room or rooms
and to have resulted from the offering of rooms for rent or commercial or other
advertising. Where rooms have been rented, or persons live in the house in
response to commercial advertising or the offering of rooms for rent, the living
arrangement shall be presumed to constitute a rooming house and not a family. A
person claiming the status of family shall have the burden of proof of each of the
elements set forth in the relevant definitions of this ordinance.
Remuneration shall mean the act of paying or compensating a person for use of a
short term vacation rental.
Short term vacation rental means a commercial use which is subordinate to the
residential use of a dwelling unit, in which a tenant is allowed to lease the
dwelling unit or a portion of the dwelling unit for periods of less than one
calendar month but more than 24 hours in return for remuneration. The rental of
transitional houses operated by a charitable organization, group homes such as
nursing homes, and adult foster care homes, substance abuse rehabilitation clinics,
mental health facilities and other similar health care related facilities shall not be
considered short term vacation rentals.
Short term vacation rental unit means a dwelling unit used for at least one short
term rental within a calendar year.
(c) Requirements. No person shall operate or conduct, maintain or manage or advertise
for lease a short term vacation rental establishment without first obtaining a certificate
of short term vacation rental registration in the manner provided in this chapter and if
the owner has more than three short term vacation rental establishments a business
registration.
(d) Application procedure. An applicant for a certificate of short term vacation rental
registration shall make application to the Director of Public Safety or his designee on
a form prescribed by the Director of Public Safety or his designee, which shall
contain at least the following information:
(1) The full names, business addresses and residence addresses of the owners,
proprietors, officers and local addresses of all owners, proprietors and officers and
managers of the applicant's business; the names and addresses of each officer, if
2|Page
the applicant is a corporation; the names and addresses of all partners, if a
partnership; and the names and addresses of all members, if a limited liability
corporation.
(2) A list of all assumed, trade or firm names under which the registered applicant
intends to do business.
(3) The location of the short term vacation rental.
(4) The name, telephone number, address, e-mail address and cell phone number
for text messages of the person to notify in the event of an emergency.
(e) Terms. Each certificate of short term vacation rental registration issued pursuant to
this chapter shall be for a duration not to exceed one year and shall terminate on April 30,
following issuance thereof.
(f) Renewal. Any certificate of short term vacation rental registration issued under this
section must be renewed in the manner set forth in this article on or before April 30 of
each year of existence of the short term vacation rental. Applications for renewal of a
certificate of short term vacation rental registration shall be filed, considered and issued
in the same manner as an original application.
(g) Fees. The fee for a certificate of short term vacation rental registration and the fees
for annual renewals thereof shall be set from time to time by resolution of the city
commission. Registration fees not paid within 30 days of the due date will be subject to a
late fee of $15.00 per month for each month up to a maximum of six months, at which
time all fees and late fees are due. Municipal civil infraction violation may be issued
each day after May 31 until the registration is submitted and fees are paid.
The City may use the fee only for expenses relating to issuance of the certificate short
term vacation rental registration and the purchasing of amenities located in the City’s
parks likely to be used by tenants of short term vacation rentals. Any fees not expended
within the fiscal year from collection shall be held in a separate City account which may
only be used for amenities or located in the City’s parks likely to be used by tenants of
short term vacation rentals.
(h) Display. Any certificate of short term vacation rental registration issued pursuant to
this Section shall be prominently displayed in the business establishment on the back of
the front door or the back of the door at the main entrance.
(i) General conditions for issuance and continuing in effect.
(1) Compliance with other governmental requirements; preemption. No certificate
of short term vacation rental registration shall be issued or continued in effect for
any person who has failed to pay the Excise Tax on Business of Providing
Accommodations pursuant to MCL Section 141.861. The fact that a person has
3|Page
received a license or permit from the United States, the state, the county, or other
governmental entity for the short term vacation rental shall not exempt such
person from the requirements of this chapter.
(2) Compliance with all other laws. A holder of a certificate of short term
vacation rental registration must be in continuing compliance with all local,
county, state and federal laws relating to rental properties as a condition of
issuance or continued effect of a certificate of registration under this chapter.
(3) Conditions and activities on the premises. The holder of a certificate of short
term vacation rental registration shall maintain a clean, neat and orderly
establishment, take reasonable steps to provide security on the premises, and
prevent unlawful conduct thereon. The holder of the certificate of short term
vacation rental registration shall be responsible for insuring that everyone staying
at the short term rental unit is aware of and complies with all relevant city
ordinance, especially relating to recreational fires, parking, fireworks, noise and
trash.
(4) Payment of amounts owed city. All personal property taxes and outstanding
debts to the city, including, without limitation, fees for inspections or property
services, water or sewer bills, municipal civil infraction fines applicable to the
business or its premises, current special assessment installments, but not including
real property or income taxes, due at the time of issuance or renewal of a
certificate related to the business activity or establishment must be paid in full.
(5) Standards in chapter. Each holder of a certificate of short term vacation rental
registration shall comply with the requirements found in additional applicable
Sections of this Chapter.
(j) Additional conditions for issuance.
(1) Compliance with applicable codes and regulations. Any person applying for or
holding a certificate of short term vacation rental registration under this Section
shall demonstrate to authorized city personnel that the business establishment
registered under this chapter complies with all construction and fire and safety
codes of the city, all applicable health and safety laws, zoning laws and
environmental laws and regulations of the city, the county, the state, or the United
States, and including all provisions of this chapter. Further, affiant shall comply
with special conditions promulgated pursuant to Section 10-353(j)(2).
(2) Special conditions. In connection with the registrations pursuant to this
Section, regulations which are particularly adapted and appropriate to the business
activity or establishment so registered shall be promulgated by the city, approved
by the city commission, and attached to or printed upon the registration issued.
Such attachments and adoptions shall not be required for codes, ordinances and
other regulations of general applicability which are in effect from time to time in
4|Page
the city and which affect the registered business. These regulations shall be
uniform for all short term vacation rentals.
Campers, recreational vehicles, tents or any other temporary housing shall be
prohibited at a short term vacation rental, except the structure inspected and
permitted by the City. Non-compliance with this sub-section may result in a civil
infraction for the renter, owner and/or revocation of the certificate of short term
vacation rental registration.
(k) Inspections. Every business establishment registered shall afford authorized
personnel from the city full access to the premises for the purpose of inspection to
determine compliance with the registration which has been issued, for determination in
connection with the application for the issuance of the registration, and to determine
continuing compliance with all ordinances, codes and statutes applicable to the premises,
the business establishment or the business activity. In the case of a proposed revocation
or suspension, the holder of the registration shall afford reasonable opportunity for
inspection by the city.
(l) Denial, revocation, suspension and procedure for revocation or suspension. Holders
of a certificate of short term vacation rental registration may be denied, suspended, or
revoked by the Director of Public Safety and the business registration by the city clerk,
both of whom shall follow the procedures provided for in City Code Section 50-43.
2. This Ordinance is to become effective ten (10) days after adoption.
This ordinance adopted: February 12, 2019
Ayes:
Nays:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: ___________________
Ann Marie Meisch, MMC
City Clerk
5|Page
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 12th day of February,
2019, at which meeting a quorum was present and remained throughout, and that the
meeting was conducted and public notice was given pursuant to and in full compliance
with Act No. 267, Public Acts of Michigan of 1976, as amended, and that minutes were
kept and will be or have been made available as required thereby.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
6|Page
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon amended Chapter 10, Article VI, by adopting Section 10-353 of the
Muskegon City Code, summarized as follows:
INSERT SUMMARY
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
7|Page
Commission Meeting Date: February 5, 2019
Date: February 7, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Approval of Several Neighborhood Enterprise Zone Certificates
SUMMARY OF REQUEST:
Applications for Neighborhood Enterprise Zone (NEZ) certificates have been received
for homes at the Terrace Point Landing development. The applications are for the
following addresses: 302, 304, 306, 308, 310, 312, 320, 330, 332, 338, 340, 351, 353,
654, 672, 674, 679, 681, 688, and 690 Terrace Point. All applicants have met local and
state requirements for the issuance of the NEZ certificates.
FINANCIAL IMPACT:
Taxation will be applied as one-half of the previous year’s state average principal residence
millage rate to the value of the facility.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the NEZ certificates.
COMMITTEE RECOMMENDATION:
None
2/7/2019
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 302 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 304 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 306 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 308 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 310 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 312 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Jerel and Pamela Vanderwalle to construct a new home at 320 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Jerel and Pamela Vanderwalle be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 330 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 332 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 338 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 340 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 351 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Raymond and Belinda Stacey to construct a new home at 353 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Raymond and Belinda Stacey be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Scott Penhorwood to construct a new home at 654 Terrace Point in the Terrace
Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Scott Penhorwood be approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 672 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 674 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 679 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 681 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 688 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Resolution No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Terrace Point Landing, LLC to construct a new home at 690 Terrace Point in
the Terrace Point Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12)
years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be
approved.
Adopted this 12th day of February, 2019.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
2/6/2019
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on February 12, 2019.
By: ________________________
Ann Meisch
City Clerk
2/6/19
Commission Meeting Date: February 12, 2019
Date: February 7, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Rezoning of 1021 Jefferson Street
SUMMARY OF REQUEST:
Staff-initiated request to rezone the property at 1021 Jefferson St from Form Based Code,
Urban Residential to Form Based Code, Neighborhood Core.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff does recommends approval of the rezoning
COMMITTEE RECOMMENDATION:
The Planning Commission unanimously (6-0) recommended approval of the rezoning, with
three members absent.
1
Note: Notice was mailed to properties within 300 feet of this property 15 days before the public
hearing. Two phone calls were received from property owners on Jefferson St that wanted
more information, but had no opinion on the request. D. Gregerson (241 W Muskegon Ave)
attended the public hearing, he lives in the area and was concerned about the effect on the
neighborhood. He stated that other low-income developments in the area had struggled with
their tenants.
December 13, 2018 Planning Commission Packet Excerpt:
SUMMARY
1. The property is owned by the City and is currently being used as the employee
parking lot.
2. The property is currently zoned Form Based Code, Neighborhood Residential. This
zoning designation allows for single-family homes, duplexes, rowhomes and small
multi-plexes (3-6 units).
3. The City is in negotiations with a developer that would like to construct 73 units of
affordable apartments along with 5,000 sf of commercial space on the first floor. It
would also include 59 spaces of underground parking. This would require a
rezoning to Form Based Code, Neighborhood Core.
4. Please see the zoning ordinance excerpt for Form Based Code, Neighborhood Core.
1021 Jefferson St
2
Current Zoning of Area
Proposed Development Renderings
3
4
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 1021
Jefferson St from FBC, Urban Residential to FBC, Neighborhood Core.
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 1021
Jefferson St from FBC, Urban Residential to FBC, Neighborhood Core.
CITY OF MUSKEGON REVISED PLAT OF 1903 ALL OF BLOCK 355 EXC LOT 4 AND THE W 1/2 OF
LOT 3
This ordinance adopted:
Ayes:
Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: __________________________
Ann Meisch, MMC
City Clerk
5
CERTIFICATE (Rezoning 1021 Jefferson St from FBC, UR to FBC, NC)
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 12th day of February, 2019, 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: ___________________, 2019 ________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish Notice of Adoption to be published once within ten (10) days of final adoption.
6
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on February 12, 2019, the City Commission of the City of Muskegon
adopted an ordinance amending the zoning map to provide for the change of zoning for 1021
Jefferson St from FBC, UR to FBC, NC:
CITY OF MUSKEGON REVISED PLAT OF 1903 ALL OF BLOCK 355 EXC LOT 4 AND THE W
1/2 OF LOT 3
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 ____________________, 2019 CITY OF MUSKEGON
By ___________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
7
Date: 2/12/2019
To: Honorable Mayor and City Commissioners
From: Planning Department
RE: Restrictive Covenant for 350 Shoreline Drive
SUMMARY OF REQUEST:
Authorize the mayor and clerk to sign the restrictive covenant for nonresidential
remedial action for the city owned property located at 350 Shoreline Drive. Various
contaminants remain within the soil and groundwater on site, and this restrictive
covenant is necessary to document those hazardous substances and direct any future
land owners with regard to preventing unacceptable exposure. DTE will continue to
operate a groundwater extraction system to treat groundwater on site.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize the mayor and clerk to sign the restrictive covenant.
DECLARATION OF RESTRICTIVE COVENANT FOR A RESTRICTED NONRESIDENTIAL
REMEDIAL ACTION
MDEQ Reference No.: RC-RRD-201-040-18
This Declaration of Restrictive Covenant (“Restrictive Covenant”) has been recorded with the Muskegon
County Register of Deeds for the purpose of protecting public health, safety, and welfare, and the environment
by prohibiting or restricting activities that could result in unacceptable exposure to environmental
contamination present at the Property that is located on a portion of 350 Shoreline Drive, Muskegon, Michigan,
portion of Property Tax ID Number 61-24-205-563-0010-00, owned by the City of Muskegon and legally
described in Exhibit 1 attached hereto (“Property”). Exhibit 1 also includes a survey of the Property.
The Property is associated with MichCon/Lakey Foundry Facility (Site ID 61000027) for which response
activitites were conducted pursuant to Part 201, Environmental Remediation, of the Natural Resources and
Environmental Protection Act, 1994 PA 451, as amended (NREPA), MCL 324.20101 et seq. The Property
described contains hazardous substances in excess of the concentrations developed as the unrestricted
residential criteria under Section 20120a(1)(a) or (17) of the NREPA.
Michigan Consolidated Gas Company (MichCon) (now DTE Gas Company (DTE Gas)) has submitted a No
Further Action (NFA) Report to the Michigan Department of Environmental Quality (MDEQ) that includes
nonresidential land use-based cleanup criteria as defined and set forth in Section 20120a, of Part 201 of the
Natural Resources and Environmental Protection Act (NREPA), 1994 PA 451, as amended, MCL 324.20101 et
seq., for the environmental remediation associated with the Property.
The restrictions contained in this Restrictive Covenant, recorded pursuant to Section 20121(2) of the NREPA,
are based upon information available at the time the response activities were implemented. Failure of the
response activities to achieve and maintain the criteria, exposure controls, and any requirements specified by the
response activities; future changes in the environmental condition of the Property or changes in the cleanup
criteria as defined in the NREPA; the discovery of environmental conditions at the Property that were not
accounted for during implementation of the response activities; or use of the Property in a manner inconsistent
with the restrictions described herein, may result in this Restrictive Covenant not being protective of public
health, safety, and welfare, and the environment.
Summary of Response Activities and Environmental Contamination
Soil and/or groundwater at the Property are contaminated primarily with benzene, ethylbenzene, xylenes, 1,2,4-
trimethylbenzene (TMB), 1,3,5-TMB, acenaphthene, benzo(a)pyrene, bis-2-ethylhexylphthalate, dibenzofuran,
fluoranthene, fluorene, 2-methylnaphthalene, naphthalene, phenanthrene and pyrene along with a few metals
and cyanide from historical industrial operations. Prior to the recording of this Restrictive Covenant, response
1
activities have been undertaken to install a one foot or thicker soil cover over the Property to remove the direct
contact pathway for soil to the elevations shown in Exhibit 2. In addition, a groundwater extraction system and
slurry wall were installed and will continue to be operated to hydraulically control affected groundwater. Some
hazardous substances remain present on the Property that require controls in the form of groundwater use
restrictions and soil management restrictions to prevent unacceptable exposure.
Residual Dense Non-aqueous Phase Liquid (DNAPL), related to historic foundry operations were properly
characterized and assessed, and will remain in place at the Property. The DNAPL exists below the ground
surface at a depth of approximately 20 to 30 feet below ground surface and is located within the southwest
central portion of the Property approximately where shown on Exhibit 3. The restrictions provided for in this
Restrictive Covenant serve to prevent unacceptable exposure to hazardous substances for the entire Property as
a result of the conditions created by the presence of the DNAPL, soil and/or groundwater contaminant
concentrations that exceed the unrestricted nonresidential criteria under Section 20120a(1)(a) of the NREPA.
Definitions
As used herein, the term “Owner” shall mean at any given time the then current title holder of the Property.
All other terms used in this document which are defined in Part 3, Definitions, of the NREPA; Part 201 of the
NREPA; or the Part 201 Administrative Rules, Michigan Administrative Code, 2013 AACS R 299.1 – R
299.50, shall have the same meaning in this document as in Parts 3 and 201 of the NREPA and the Part 201
Administrative Rules, as of the date of filing of this Restrictive Covenant.
NOW, THEREFORE, the City of Muskegon, of 933 Terrace Street, Muskegon, Michigan 49440, pursuant to
Section 20120a of NREPA, hereby imposes the following restrictions on the Property:
1. The uses of the Property are restricted to any of the following: (1) use that is consistent with the
assumptions and basis of the nonresidential cleanup criteria established pursuant to Section 20120a; (2) uses
consistent with other criteria subsequently established pursuant to Section 20120a; (3) uses determined to be
acceptable according to paragraphs 3(A)(i) and 3(A)(ii) of this restrictive covenant; or, (4) other use as
approved by the MDEQ.
Specifically, the prohibited residential land uses include, but are not limited to, homes and surrounding yards,
condominiums, and apartments where people live and sleep for significant periods of time. Cleanup criteria and
associated land use descriptions are located in the Government Documents section of the State of Michigan
Library.
2. Activities at the Property that may interfere with the remedial action, operation and maintenance,
monitoring, or other measures necessary to assure the effectiveness and integrity of the remedial action
described in the NFA Report are prohibited. The Soil Cover, required by the NFA Report and previously
placed on the Property, comprises a one foot or thicker exposure barrier to prevent direct contact with affected
subsurface soils, as defined in the NFA Report, and is to be inspected and maintained by DTE Gas as provided
in the NFA Report. DTE Gas has a June 27, 1994 agreement with the City of Muskegon to inspect and
maintain the Soil Cover through at least 2024. A figure that depicts the elevation of the top of the one foot or
thicker Soil Cover to be maintained at the Property is provided in Exhibit 2.
2
3. Activities at the Property that may result in unacceptable exposures or that could result in the release of
a hazardous substance which was contained as part of the remedial action are prohibited.
3(A). The subsurface soils and groundwater beneath the Soil Cover on the Property contain hazardous
substances, including volatile, semi-volatile, and heavy metal compounds, at concentrations that present a
potential threat to public health if exposure occurs.
3(A)(i). With respect to the future use(s) of the Property, the owner shall conduct an appropriate
evaluation of the potential risks from exposure to contaminants identified within this Restrictive Covenant as
present in the subsurface soils and groundwater, if those uses would result in exposure, in order to assure that
unacceptable exposure to contaminants does not occur. The evaluation shall be consistent with Section 20120a
of Part 201 of NREPA. Appropriate control measures that are identified to be necessary to prevent
unacceptable exposure shall be incorporated into the construction plans and implemented.
3(A)(ii).Construction of buildings in areas that are above the as built elevations of the Soil Cover are
allowed. Structures on the Property that are intended for occupancy do require vapor intrusion evaluation prior
to construction, even if they are entirely above the elevation of the Soil Cover. Construction of foundations,
utilities, and related structural components of buildings on the Property, and subsequent maintenance thereof,
may penetrate the approved Soil Cover into areas of existing contaminated soil so long as such activity does not
interfere with the implementation of hydraulic control as defined within the NFA Report and repair to the Soil
Cover is completed in a timely fashion consistent with its current construction, and so long as any utility
manhole or sump used in connection with such structural component is located outside of any building
structure. The elevations to be used as reference points for construction, to be completed in compliance with
this section, are those established by the as-built drawings for the Soil Cover that are on file with MDEQ and
the City of Muskegon Engineering Department and provided in Exhibit 2. A health and safety plan shall be
developed for persons involved in subsurface construction and maintenance activities to assure protection of
workers pursuant to all applicable worker safety laws.
3(B). All contaminated surface and subsurface soils found on the Property must be managed in
accordance with the requirements of Section 20120c of NREPA and other applicable state and federal laws.
3(C). Any use of groundwater beneath the Property is prohibited, except for the purposes of
environmental assessment, monitoring and remediation. Short-term dewatering for construction purposes is
permitted provided the dewatering, including management and disposal of the groundwater, is conducted in
accordance with all applicable local, state, and federal laws and regulations and does not cause or result in a
new release, exacerbation of existing contamination, or any other violation of local, state, and federal
environmental laws and regulations.
4. Conveyance of Property Interest - Owner shall notify MDEQ and DTE Gas of the Owner’s intent to
convey any interest in the Property, no less than fourteen (14) days prior to consummating the conveyance.
Notice to the MDEQ will not be required for leasing of space unless breaching of the Soil Cover or construction
of an occupiable space may occur by the tenant. A conveyance of title, an easement, or other interest in the
Property shall not be consummated by the Owner without adequate and complete provision for compliance with
the terms and conditions of this Restrictive Covenant.
3
5. Access - The Owner hereby grants to the MDEQ and its designated representatives the right to enter the
Property at reasonable times for the purpose of determining and monitoring compliance with the NFA Report,
including the right to take samples, inspect the operation of the remedial action measures and inspect records.
DTE Gas and its designated representatives reserve the right to enter the Property at reasonable times and on
reasonable notice to maintain the Soil Cover and conduct monitoring pursuant to the NFA Report.
DTE Gas retains, for itself and its designated representatives, the right to enter the Property at reasonable times
and on reasonable notice to implement response activities pursuant to the NFA Report.
6. Enforcement - The State of Michigan, through the MDEQ and DTE Gas may enforce the restrictions set
forth in this Restrictive Covenant by legal action in a court of appropriate jurisdiction.
The restrictions shall run with the Property and shall be binding upon all owners, successors, lessees or assigns
and their authorized agents, employees, or persons acting upon their direction and control, and shall continue
until the MDEQ or its successor approves modifications or rescission of this Restrictive Covenant.
7. Severability - If any provision of this Restrictive Covenant is held to be invalid by any court of
competent jurisdiction, the invalidity of such provision shall not affect the validity of any other provisions
hereof. All such other provisions shall continue unimpaired in full force and effect.
4
The undersigned persons executing this Restrictive Covenant on behalf of the City of Muskegon represent and
certify that they are duly authorized and have been empowered to execute and deliver this Restrictive Covenant.
IN WITNESS WHEREOF, the City of Muskegon has caused this Restrictive Covenant to be executed on this
________ day of ____________, 2019.
Signed in the presence of: CITY OF MUSKEGON
By
By
STATE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instrument was acknowledged before me on _______________, 2019, by
___________________ and __________________ of the City of Muskegon, pursuant to the authority of the
Muskegon City Commission.
Drafted by and when
recorded return to:
Vincent E. Buening
TRC Environmental Corporation
1540 Eisenhower Place
Ann Arbor, MI 48108
5
EXHIBIT 1
Legal Description of the Property
TERRACE
POINT DRIVE
IVE
DR
INE
EL
OR
N
O
SH
R
T
H
SCALE: 1" = 200'
FIELD SURVEY BY: SUPERVISION BY: Prepared By:
DRAWN BY: CHECKED BY:
MOORE BRUGGINK, INC.
Consulting Engineers
2020 Monroe Avenue N.W.
DATE: PROJECT NO.: Grand Rapids, Michigan 49505-6298
Phone: (616) 363-9801 Web: www.mbce.com
EXHIBIT 2
Elevation of Top of The One Foot or Thicker Soil Cover to be Maintained on Lot 10
8.5x11 --- USER: DStehle --- ATTACHED XREF'S: --- ATTACHED IMAGES:
Version: 2017-10-21
DRAWING NAME: J:\_TRC\DTE\Lakey Foundry\305066\0000\ 305066.0000.EXH02.dwg --- PLOT DATE: September 27, 2018 - 9:09AM --- LAYOUT: EXHIBIT 2
582 585
LEGEND
587
586 58
580
8
588
7
9
58
58
58
6
58
5
6
58
835
590
584 582
8
58
58
591
587
587 59
6
592
580
595
7
578
593
588
594
5 581
594
586
9
58
589 0
57
59
586
58
58 593
7
7
1
59
58 59CITY OF
2
6
58
MUSKEGON
6
58
593
592
PROPERTY
8
Lot 10
2
59
593
58
585
9
59
3
585
592
58
6
59
593
593
59
0
3
592
58
8 58 5 94
9 9 0 5
2
5
59
59
59
6
585 58
6
59 593 5
58 589 1 5 95
7 59 92 59
594
58
58 0 4
587
6
8
57
4
58
58
0
58
6 586
2
58
58
5
57 5
5
7 75
59 90 58587
2 59 9
1
0 100
588 86
58
5
5
57
7
4
APPROXIMATE SCALE IN FEET
593
PROJECT: DRAWN BY: D.STEHLE
DTE GAS COMPANY
CHECKED BY: V.BUENING
FORMER LAKEY FOUNDRY PART 201 FACILITY
MUSKEGON, MICHIGAN APPROVED BY: -
DATE: SEPTEMBER 2018
TITLE:
1540 Eisenhower Place PROJ. NO.: 305066.0000
Ann Arbor, MI 48108 ELEVATION OF TOP OF THE ONE FOOT OR THICKER SOIL COVER FILE: 305066.0000.EXH02.dwg
Phone: 734.971.7080 TO BE MAINTAINED ON LOT 10
www.trcsolutions.com EXHIBIT 2
EXHIBIT 3
Extent of Dense Non-Aqueous Phase Liquid
8.5x11 --- USER: DStehle --- ATTACHED XREF'S: bmc062508-Updated 2013-01dwg --- ATTACHED IMAGES: Gep 2013-09; Gep 2013-09 2; Google 2013-08-22;
DRAWING NAME: J:\_TRC\DTE\Lakey Foundry\305066\0000\ 305066.0000.EXH02-03.dwg --- PLOT DATE: September 26, 2018 - 11:46AM --- LAYOUT: EXH 03 Ext of DNAPL below WT
Version: 2017-10-21
CB #5 FORMER GATE 4
ELECTRICAL SWITCH BOX (CONNECTS TO
ELECTRICAL CABLE GOING TOWARD BACK
OF SHORELINE INN HOTEL) LEGEND SURVEY NOTES
CB #3
MH-6 SHORELINE INN
CB #1
1. BASE MAP DEVELOPED FROM SITE PLAN PREPARED BY MOORE
HOTEL
PROPERTY LINES
MH-7
MH-2 MH-4
MH-8
MH-17
R.O.W. & BRUGGINK, INC., PROJECT NO.: 023038.
CB #1
SANITARY SEWER 2. DRAWING NO. 023038.DWG, DATED 05-30-2001.1.HORIZONATAL
ABANDONED
STORM SEWER TOPOGRAPHICAL INFORMATION IS SHOWN IN U.S SURVEY FEET,
VAULT
IN THE STATE PLANE COORDINATE SYSTEM RELATIVE TO THE
FORMER GATE 3
4' x 4' WELLHEAD VAULT
GAS MAIN
NORTH AMERICAN DATUM OF 1983 (NAD 83).
1" HDPE SDR 11 PIPE MIN. 4 ft.
BELOW GRADE
CB #9
CB #10
WATER MAIN
6' x 6' METERING VAULT
CLEAN OUT
CITY OF MUSKEGON CB #25
MH-26
CB #28
MH-27
ELECTRIC CABLE (UNDERGROUND) 3. VERTICAL INFORMATION IS IN U.S SURVEY FEET, RELATIVE TO
PROPERTY
ELECTRICAL AND
CONTROL PULL BOXES
LOT 10 PHONE CABLE (UNDERGROUND) NATIONAL GEODETIC VERTICAL DATUM OF 1929 (NGVD 29).
3" HDPE SDR 11 PIPE MIN. 4 ft.
BELOW GRADE FENCE
4. GROUNDWATER EXTRACTION SYSTEM UNDERGROUND PIPING,
4' x 4' WELLHEAD VAULT SHEET PILE WALL UNDERGROUND ELECTRICAL, DISCHARGE MANHOLE, EXISTING
1" HDPE SDR 11 PIPE
HYDRANT (HYD) MH-18, AND ANCILLARY STRUCTURES WERE SURVEYED BY
MIN. 4 ft. BELOW GRADE
CB #14
DRIESENGA & ASSOCIATES, INC. AS AN AS-BUILT SURVEY
6' x 6' METERING VAULT
CB #12
WATER VALVE (WV)
DATED 06-25-1008, PROJECT NO. 0810105.5A.
ELECTRICAL AND
CLEAN OUT
FORMER GATE 2 CONTROL PULL BOXES
WEST MICHIGAN DOCK
AND CATCH BASIN (CB)
MARKET PROPERTY
LOT 9 CB #13 LIGHT POLE (LP)
YARD LIGHT (YL)
PHONE RISER (PR)
4" HDPE SDR 11 PIPE
MIN. 4 ft. BELOW GRADE
MH-17 SANITARY OR STORM SEWER MANHOLE LOCATION AND NUMBER
AS-BUILT SLURRY WALL (FUNNEL) AND GATE SEALS
IVE
DR
)
AY
HYDRAULIC CONTROL PIEZOMETER / MONITORING WELLS
F-W
-O
INT
CLEAN OUT
HT
MMUSKEGON
u s k e g o n L LAKE
ake
RIG
PO
FORMER FULL SCREENED OXYGEN TRANSFER TREATMENT WELL LOCATION
GROUNDWATER EXTRACTION
IC
BL
SYSTEM UNDERGROUND
PU
DISCHARGE PIPING
IDE
ABANDONED FULL SCREENED OXYGEN TRANSFER TREATMENT WELL LOCATION
'W
E
AC
86
ELECTRICAL AND
(AN
RR
CONTROL PULL BOXES
TE
ABANDONED HYDRAULIC CONTROL PIEZOMETER LOCATION AND NUMBER
FORMER
GATE 1
4" HDPE SDR 11 PIPE
MIN. 4 ft. BELOW GRADE HYDRAULIC CONTROL PIEZOMETER LOCATION AND NUMBER
FUNNEL CAPTURE WELLS
FORMER
ABANDONED IN PLACE FORMER ISOC SYSTEM VAULT
TRUCK WASH
480 VOLT, 3-PHASE UNDERGROUND ELECTRICAL
SERVICE CABLE AND SPARE (EMPTY) CONDUIT
GROUNDWATER EXTRACTION SYSTEM H-20 RATED VAULT
CB #15 GROUNDWATER EXTRACTION SYSTEM DISCHARGE PIPING (UNDERGROUND)
CB 8" RECOVERY WELL
SITE ACCESS
MANHOLE
PULL BOXES
EIV
DR
VERIZON SERVICE PEDESTAL
MH-24
CB #24
TRANSFORMER AND CONCRETE PAD
CLEANOUT
APPROXIMATE EXTENT OF DENSE NON-AQUEOUS PHASE LIQUID (DNAPL)
INE
EVERGREEN SHRUB SCREEN,
ARBORVITAE
EL
ELECTRICAL AND
BELOW THE WATER TABLE ABOUT 20 TO 30 FEET BELOW GROUND SURFACE.
OR
CONTROL PULL BOXES UTILITY PEDISTAL
SH
CONTROL PANEL & HOUSING
CLEAN OUT WITH 6' x 6' CONCRETE PAD
AN
"S
42
AREAS OF RESIDUAL DNAPL MAY EXIST ON THE SITE.
4 ft. DIA. CONCRETE DISCHARGE /
SEPARATOR MANHOLE
AN
MH-30 "S 12-INCH DIAMETER PVC
42
PIPE SCH 80
CB #20
MH-18
EXISTING CITY OF MUSKEGON
CB #19 SAN
12
12"
SANITARY SEWER MANHOLE MH-18
"S
AN
MH-21
MH-22
CB
PROJECT: DRAWN BY: D.STEHLE
DTE GAS COMPANY
CHECKED BY: V.BUENING
FORMER LAKEY FOUNDRY PART 201 FACILITY
MUSKEGON, MICHIGAN APPROVED BY: -
DATE: SEPTEMBER 2018
0 160 TITLE:
1540 Eisenhower Place APPROXIMATE EXTENT OF PROJ. NO.: 305066.0000
Ann Arbor, MI 48108
DENSE AQUEOUS PHASE LIQUID FILE: 305066.0000.EXH02-03.dwg
APPROXIMATE SCALE IN FEET Phone: 734.971.7080
www.trcsolutions.com BELOW THE WATER TABLE EXHIBIT 3
EXHIBIT 4
CONSENT OF EASEMENT HOLDERS
As evidenced below by my signature, I agree and consent to the recording of the land use and
resource use restrictions specified in this Restrictive Covenant and hereby agree that my property
interest shall be subject to, and subordinate to, the terms of the Restrictive Covenant.
Parkland Acquisition, LLC
940 Monroe NW, Suite 155
Grand Rapids, MI 49503
By: _________________________________
Signature
Name: _________________________________
Print or Type Name
Its: __________________________________
Title
STATE OF [enter the state where the document is signed]
COUNTY OF [enter the county where the document is signed]
___ ___
________________________________________
Notary Public Signature
___ ___
Date: 2/12/2019
To: Honorable Mayor and City Commissioners
From: City Manager
RE: Sale of City Owned Property to Damfino Development, LLC
SUMMARY OF REQUEST:
Sell a city owned parcel, 1490 Edgewater Street, to Damfino Development, LLC for a
purchase price of $15,000. Closing to be scheduled at the earliest convenience for both
parties, and closing costs to be paid by Damfino Development, LLC. The parcel is
landlocked between the Harbour Towne Marina and vacant land currently owned by
Damfino Development, LLC. The parcel became isolated when land was conveyed for
the Harbour Towne Marina.
FINANCIAL IMPACT:
$15,000 in revenue
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Sell the landlocked parcel to Damfino Development, LLC for $15,000.
List of Exhibits
EXHIBIT A - Location of Triangle Parcel
EXHIBIT B – Deed from Central Land Company to City of Muskegon
EXHIBIT C – Deed from City of Muskego to C.A.R. Development
EXHIBIT D - Muskego to C.A.R. Development shown on survey
EXHIBIT E – Deed from C.A.R. Development to Harbour Towne Limited Partnership A
EXHIBIT F – Title Search
EXHIBIT G – Survey depicting all relevant borders.
560 Mart St. Muskegon, MI 49440
P: (231) 722-6691 F: (231) 726-6636
EXHIBIT A
420
HARBOUR TOWNE MARINA CON
DOMINIUM
4'
23
T
POIN
W
VIE
40'
NA 555'±
ED
GE
W
AT
38
E
5.
R
5'
ST
RE
ET
67
PIG 3
EON
KEY
MAR
INA
33
7'
(L
AK
.
E
CT
ST
LL
)
HI
O N
PIGE
11
6'
274.4'
MANHATTAN AVENUE
50'
270
345.4'
135'
EDGEWATER
CT.
425 741 127.8'
NE
BAR
OW
RT
150'
DOCK
O U SAND CT.
ND
RB M
HA INIU
SA
2002.88'
350'
DOM BRIGHTON AVENUE
50'
N
EDG
CO 300'
EWA
TER
CLE
250'
CIR
STR
201
EET
E
HARBOUR TOWN
300'
50'
WINDWARD AVENUE
CE
250'
NT
RA
250'
761
LL
T
AN
EAS
VA CO
250'
D
C.
50'
ARLINGTON AVENUE
DE 'S #
60'
WE
350'
156.5'
Y ST
1
50' PARK PLACE (VAC.)
194.0'
50 736
5 60.35'
1188.06'
50'
50'
100'
NE
LSO
30'
2
TREET
NS
735
TR
562
EE
RS
.33
T
'
WATE
400'
61-24-205-735-0001-00
1490 EDGEWATER ST
45.9
RT
EDGE
OU
2'
NC 497
DLAW
O
WO
488.74'
LAKE MICHIGAN PARK 726
4'±
U E
EN
129.6
'±
460
AV
OX
X AV 0
LC
16-0
WI
E
830.0'±
1
3474 5-001-00
725
213.6 3.24'
WILCO
450.0'±
380.0'±
4-50
ED
34
727
BEA
WILCOX AV
'
61-2
E NU
GE
E E
C
61-24-205-727-0008-00
NU
3400 WILCOX AVE
WA
H ST
VE
61-24-205-727-0005-00
'
0.2
XA
3460 WILCOX AVE
69 .8'±
TE
.4 603 O
30
3'
ILC
REE
'
40
RS
W 725
4
TR
(VA17.9' 417.9 726
T
CH
'
CA
2.2
3'
EE
'
ER
TE 80.1
108
26
D)
T
RY
.1'
733 69
.3 .1'
ST
' 105
'
66
728
R
61-24-205-733-0001-00
EE
1875 WATERWORKS RD 38
WA
.4
LA '
724
T
KE
NUL
SH 47
732 OR
TS
RD
5.
2'
7'
7.
E
723
29
TR
KS
DR 729
IV
OR
EE
E UE 722
W
EN
T
PL AV
ER
UM ON
PS
AT
ST OM
W
RE TH
ET
ED
721
G
EW
T
AT
3
UR
1 78
E
ET
R
730
CO
RE
ST
9
71
ER
ST
R
Ê
Path: O:\GIS\Projects\AERIAL TEMPLATE_PORTRAIT_18x24.mxd
Map Features
PARCELS OF INTEREST
CITY OF MUSKEGON 0 100 200 300 400 500
PARCELS
Feet
PARCEL TAX MAPPING W/ CRITICAL DUNE AREAS 1 inch = 125 feet Muskegon County Equalization
(1:1,500) Mapping & GIS
2014 AERIAL PHOTOGRAPHY PLAT BOUNDARY 173 E. Apple Avenue, Suite 201
This map is intended for use as a taxation parcel map Muskegon, MI 49442
SAND PRODUCTS CORPORATION PARCELS ROAD ROW only. Features contained on this map are for Phone: (231) 724-6386
reference and no claim to accuracy is intended. Fax: (231) 724-1129
198.14' PARCEL DIMENSIONS For exact feature location and identification, parties
http://www.muskegoncountygis.com
should consult a licensed professional surveyor.
Page Printed Date: 8/26/2016
EXHIBIT B
llU
'..I•
:.Jlj) P.\G£ c.n..;
,"'I ,.
WI f I BI 8 IT Ht•
That the Hid party ot the first part, tor uld in comideratioa
or the 11a or one l>oll■r (tl.OO) and other nh•ble oauideratione, to it 1n
buui paid by the to.id party of the Hoond part, the reoeipt whereof h hereby
oontoaaed &lld aok:Dowledged, dooa by theae presete, grant, ti.z-gain, 1ell,
sie , relu■e u.d r�rner QUIT OWM unto tho •ld party of the eeccmd pe.rt,
and to it• a111i;;n1, for...-er, all tboee certain pieoe■ or paroel1 or l•nd
situftted in the City or Muangcm, County or Mu1kebou, and st.ate or W1oh\i:;9n,
la1own and deooribed •• tollo••• to-wit,
YlkST, al l the tollawi.� deaoribed pleoea or parcelo
or land 11t uate and beinr, in n:LSu,
R••11ed Plat ot tt\e City or W1Pkegoa, adopted
A.pril 9 • 1903.
All oJ' Block 1t1T«1 (7) • .i,,,
deeori bed u that pi.rt of Bloor. -••n hunrlrttd
and tht. rty-n1r.e ( 739) of the J!nised Pb t of the
t;1ty or lluolrogon, lldopted April 9 1 l!IOJ,' bow11fod
lorttwrly ISld Er•� terly by tho wu.akcbu.r L•k•
Channel, Southl'lr ly by tho 1-ortt, line .., f ·:;ate r
Streat, 'i\rsterly by tho Y/eisterly Une of lh111c-h
Avenue., f!-7.tf'ndnd to i!w.l.:u{;011 Lalct1 ChNw.el.
Loli three (:5), fo1r (4), !'ive
(o) a.11d Lo';r. eight (ll) to rowrtu11 (U), both
1.nolushe, of !!look Eight {B). Aho lmOMl anrl
dcecriberl •• LotG thrl'le (3), fuur (t), fiwe
(b) and Lots l!.i�)lt (6) to fourteen (14), both
inclulive, ot Block 76?. of tho: R•Tiaec Pbt of
t:hr City of Mu1lce&Ofl, adopted April 9, 1903.
Lotc. orie (1), nine (9), and ten
(10), of Bl.ook ten (lo), Alav mown and �eaoribf'd
1111 Le':.• one (l), n1.ne (9), encl ten (lo), of Bloclc
i •'""11 IHir,d r<',1 end 1'1.fty-four ( 7 �,i) ol' thA Hc>Th�d
i'lr," �r tnc �it;; l'f ll.uskq�i·n, 11,loptt-d April 9, l!l03o
All or Block ele-.on (11). �lee
:.:nuwn ann desoribed •11 all of Bloc.I: sove11 hundn,d
a11d fU'ty-fiw (765) ot the Rc-wir;fld Pbt of the
L:ity of liuelrflgon, edouted April 9 1 190�.
Lots one (l) to aeTen (7), both
rnclus:i.vti, of Block twel'ye (12). Al•o lalown and
described u Lota one (l) to ,.,..en (7), bl1th
inolwshc, of Block' 10Ten hundred N.ft:.••sil't (7b6)
of the Herlaed Plr.t of tht• .;1 ty of 11u1lcetaia,
todopted April 9, 1903,
Lot one (1) or Block thirteen (13),
Alno lal01ffi •ru:I de1cribed ea Lot oue (l} of Blook
aewen hUDctred fifty-eewen (757) or the ReYised Plnt
of the l.:itl' of Muelcu,;on, adopted April 9, 190:�.
Lot! .. (1) to fift (5), lkJth
inaludn, or Blook rourieen (U). lho mown
11Dd deeoribed .. Lot one (1) of Block Hftll hundred
and forty•four (744) of the rmeed Plat of the �ity
of Mu1kegun 1 adopted A.prll 9, 1903.
IICoM1>, all tha tollo111nc •••o ribed plea•• or peroel1
or land ,1tatc md belmg in Cbn&.LAHD CCID'UJ 'h
3UIDIV1Hlmy• • Bl11arged and Corrected Plat or the Village
ot Laketon1 Southerly by tht laet md west qu.rter
llne of Seotion tw.nty-eii;ht (28), fo11S11hip Teti (10)
North, ln, also beJ.r,a the Sou, h line
or �ck 1,2, Rn1aed Plat or the c1t, or Muskegon. 552.�6 teat, to
the Polnt or Beginn1-.g.
-·
Said pal'oel contain• 21.66 acrea and 1a •ubJ.ect to Riparian R1ght111.
Bearings brtaed rrom· 'l'l"anaverae.Meroator ProJeot1on, r.antral Zone.
·Sald deac�iption being part or Block 7-2, Block-743, Bloek 7-0•
Reviaad Plat ot C1t1 or Muakegon, and also 1nalu41ng Lot 1, Block
7-6, Revised Plat or c1t1 or Muskegon.
- .-.JOAS .. .. c;.:t fl¢ a M4M -- :J a..
t'"' £,A _Qli£;t;+ __G.4).4£&$UZJtt-W, ;: :ail?.·
EXHIBIT D
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EXHIBIT E
;. • .i
. -; �- -:c
·- ., . '
·,
. ···-.-:< q.< Cl�;I- to, Gr•tee, krl,our roaa Lti,.it•d Partnu.bip A, a H1cb1Sa
·.•.,• - -· < '-::·uattta l',HtlieQldp� . ._..·addru• -1-··aU0ltudd._ Dr., llor.tll Nuabgaa.,
·
..: . . ' :. : N:lcldpa 49445. _ t:1-· folloirtag: ducdlied 1¢elif... ni..� j,u tbe City of
· '. ,' · : Nua.,_.., C@Dtt of •---•
. ; ,.- ' ... :.t
m
State Of lllc:hls••· to""Wit:
.
'.. . '·. - ' -� .•
·
· . ··;: _.. �
•. legimtna _ :· at _ tbe . llort-..t: con.er · of Plat -Of _ Msevater
SulNUna:l-.. : City · of ltu8Ma•, ltuakqon . Cou.ty, . : Michf.san •
.. ftCOrdecl 1D. Libe� '• · Pace 82- of nat1, - JICa, ·allO bovn u tbe
11ortbeu.t coraet- of Block 740 of t:be aeriaed Plat. of tbe City of
NiMlkegoa.· · · · ·- ·
. . . ·,
eecou• _
.
· · Tlleace · South 89 de�ee• 37 •cu 27 Vht • _parallel
with lforthUae of-said Plat of !dpwater, 105.. 00 feet;
'l'bence South 01 degree S2 ldrnate• 29 aeCOGda lfut, paralllel
With-the We•t Uoe _of apll _Plat of U,water (alao Wag tbe lat
line of Block 740. reviaad Plat of tbe City of....bgoa., 130.00
�Ht; ·, ·
• . : ·- ,
tbenc:e North 88 degreu 07 ldaute• 3lac:oDdaWut, 574.00
feet;
Tbeace Korth 57 clqreu 52 llinutu 07 Ncoada Wat, 191.39
feet;
Thence South 89 degr... 31 ldlwtea %1 MCOIMla WQt, parallel
Tbance Horth 00
feet; -
•are-•
with Nortb l:lne of •aid P1at of Edgewater, 210.00 feet;
2:t -.imatu 33 MCOD.d• t 215.00 v..
Tbaa.ce Horth 30 de,reea 04 aimatea 06 ..colUla W..t. aloag
extended Eut line of Hid Block 747, .55.00 feet; . · ·-
'thence Borth S3 dqnea 52 aimtea 59 Ncoad• But, aloq tbe
exteaded Sou.th liDe of Block 746, llfflaN Plat of tbe Cit)' of
lfualcegoa, 97.15 feet. to tbe Sollthwut Cffael' of Lot 1 uid Block �
j
�all, ! c<�=�
W.Sm
746, or.c::�
a� -
Tbence lfortb 29 degreea 46 aiautu OS NCODd■ Wut• aloDS West
N ...,..,
liue of ufd toe 1. Block 746, 126.46 feet, . to _ tbe Nortbnat co r"l 0
�t
..,
corner of Aid Lot 1, Bloc� 746; O:J:�
'tbes,.ce llorth 60 de&r•• 22 IWlUte• 50 MCOad8 But· aloq tbe �Oc:: c-,
'"",,.c:,
i
Nortlllille of aaicl Block 746. 241.42 feet to tlle Hortbeut Cf'raer :n�i:
of Mid Bl.oc.k 746; ¥. cc,-
("';I .
,ao-
,..
_Tbence Soutb 30 clegreea . 04 aiswtu 54 Mcoacl■ lut, · aloog But w c;,=
l:lne of aaid Block 746, 0.50 feet; · s:
Tbelice Bortb 60 degree■ 22 'lltAutM SO eecoada But• parallel
with tbe North lia� of Block 746• 158.86_ feet. · tbe followiag
calla lying vitbill Jlock 742 aDd 743 of the
Cit, of Muakegon.
lnia•-
-Plat of tbe
.
· 'lbn.ce Sou.th _-. 01 clep-ee 52 ld.autee 29 MCODdl V•t, parallel
with the V..t 11.- of Plat . - of Bdga&tel', 162�18 feet;
1.i r-· .
;'1-·---1�c.lill!..
t - .....'-"-".. --.i."-"'
I��
l
.
�-· • .
�c_:'',".' : ,·.�:�:. \C.
;;:<::�·/;;·.>:: .: �
;:/.',:._,;::.:,''";nth �i1:_ll �l .' �- 52 �tu, 2t; ·�co�• Baat, parall-1 .;.:· _ .. ... ·.
tM Wat. U• .o'f 11:ai of Jldfl!Watar, 60.00 f•t; . · · : · ·. · · _ ·: ,
. .
�- ':;· /·:.:;·.;· ,>.:·• =·: c,. fteaca Scnatb•.88' 4qnes 07.alntu 31 Mend ■ But 42.00 feet;.
:� ..:.<:./.;_:.::·�:'.·,:.YT\'·:" !liacie· llortli 01 aeane 52 a11lat•• : 29 . aecollft. But parallel
\.1_:::'··L\: ". ''.;·}:':·: vltll'Cla V.t UM ·of· Plat of..,...._., 158.50 feet; , -
, ...;:_::_ [::-.//·�, ,'. > . · · ..... South ·Ii ··� 07 al1l11t.S. 31 .. HeOUI Ba•t, 614.00
· · ·-·:--
::.:::··f�\t�/-:��:{·{,� �<"·.\ -.t a · {.. ;--:·.. · _ _ -�., .,· .:., -·-·.- · _._:_ ......�,· ·.--· · ·,·.: · · · .�: · ._ - ..
/.�:�·:� . .-·V:: :·_:·.·.. >.::;,, in.ace Solltb �1 deitee 52_ atnotff -29 --•· Waat, - parallel
:<< -': . .'_.,_··- ··-'-
· F:,, .::;,:t·-;. · ·:.: wl"tb the Veat lt• of ?lat of ldae,,ater SalldiYtaioa, 469.,.50 feet;
:_.-:.. :. ·_ ·.
.- _,_,>· · Tbenc;e Sortb .89 dep•• 37 -.C.. 27
line
••end•. ·iut, . par.allel
-.r••
·. wttll 't1- l(orth of Plat of ldgeirat.er SuWlvtaion 317.30 feet;
·,.:,.__ ':'�... : , ./ .· .. 'tbuce •rch 42 5.5 ata.,tea 40 NC:Oad• But 72.44 feet
r.o ·. l'oillt �.•; .. ' ·., '..
.
.. ' t· . • . .
eo.oo
<.
• - ' , •
Thnce liortb 42 dagr... Sl ailUa.tea 40 aecond• But
le••• feet.
i·-:.< ·. _,:_ .-,· • •.··, -. ·
:. · ... · . aore or to· tbe •bDJ"eU.ne of llalcegoaa LakeJ
. .-. laco•nc:bg at _Poi.at "A•, thence South 47 dagree1 04 lliautee
· · ··.. .- ·· _-. ·
··
: . 20 NCOllda . But · on • __.ruae a10QI ahore of Haa1kegon
1.alce,
' ...· : ..
: 140.00 fMt 'to
Poillt •1• J · · · · . · ·
.
· •n· �r lea••
· .. . 'fllaee llarth 42 depea 55 aiaut•• 40 secoDCI• But 60 feet,
to 1horeliae of Mu■lcegori Lake:
bco•cnclq at lout •a•, tben� South 42 degreH 5S allwt11•
· .... . 40 HCOll4a lfest 174.10 feet;
,i,
:
!baace
South 89 degree■ 37 minute• 27 Hcoad1 Weat, along
llortll. liu of Hid Plat of Edgewater Subdiviaion, al.o beins the
· Sol&th line . of Blodt· 742, leviaed Plat of tbe City of Muekegon •
. 552.�6 feet• to tbe Point of Besinniq.
&aid parcel c:oau.tu 20.12 ecru and 1a eu.bject to ltipariaa
U,bta. · h•r:t.aa• _ hued froa TraaaverH Mercator Projection
Central Zone.
laid de•c�ipt:loo. being part of Block 742. Block 743, Block 740.
·1av1.Nd Plat of the CitJ of Mun:ego11, aacl al80 iilcludia, Lot 1 1
Block 746, lniNd Plat of City of Muategon.
. for the COll91derat1on of tba •• of $35,000.00 Dollars
\ .
SW>Ject to tbe following eueaeot• and burdeu which ah.all run with the
lead _de■crlbecl herein:
.....
tM
{';J
00
,, c.r,
m
00
·,� :J·:.�::;, . .; .· ·:�.;:�.� :-.,.•� •·. . ·. . · . �: · ::•'.�'('. ef,.:;:'..:·J�<,,·,,,'.:.,,i•·llfRJ�W��
�-l:'",}..-!.·••5\\'::,��: ,.' .,,
(':-�,_:';,�� :�·-'·.+ P•1_■;•,. /; • .. ·�·•Y;·· ·a •
���;!�ir�b;ff i(J, \ ½ :
42$5,.G£835--,-,.,.\i•.•;' ·.·
l V � '. � ? (;:t;: � ·
u11<1,111tr.a �• lif.,-ka�..,;=.•. ���··-•,.>-!x,; :; ---_t;.-:.:,;��·•fc::•..,_. · .. :: :�·-· •• _.-, '··, ·.:·
,-
-,
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.
·
·-:
· · <>-:/:."�-- cn■1ud•i-�.�-,'Wicla · :I.I: .._ to_pzv9� utilitie• to ·.ul7. --
-
- �•:
·:<.·t-\: ·
p o
rojacta·'. l' pro,-�tUI CODtJpoa#
· •
to t11ia_pro,-q-'·41•Rr1Nd. hHeiu. ,··
· =
-
- -:-. .•.. :._.
i
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·-.-.,._ ·.' (· <>.·•,-.· 2. la11Mat !!!:!!!fl! ChanDel ad lfaua auta of Bal'lNMlr.TowN lfartu
..
�. .� •�• .-� _: . ·,. · .· ;_•.;._�; ;;l'��----"'r.:•:>·'..
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."r.;.· • ;._,',•-:--�� ;...
· .-.�,. . -�•.• ... ;:.\� �,, ., �_."'I. ··;···
·
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•, '\�--···:· .- · ... , .. :,,\:�::·_.i,;.··.:__ .i.,:, /:':/•\<:;·.--·.: .. . .
cm
. . : ,. '.' _.:,/; __ �--
, • :; ,- ·.\.'lid• p,perty u
·W111 -.-..,.. to Oraute• f• ppoae of devl19p1ag
...,·,.·_:.:-a con.._lnta p�ject ·co· a..
kDDlnl u Bu'1out -�.--.11u1aa COnd-..1••
, , -:_: Gr•tor I retatu a •••••1111t, -for ttaelf __. ita- an..-
., 1-th i,ttor aac1
- ·_ fucun, oni'• tbrovch an· -�cuwa,- - .,, • _ •.
&arliour .__ TovM __ Narha
..• ,· c,-.,t,netn:1-aa 'lddcla ilaJ' ·• �t.Zll&\-S osi tbe properc, eona,ed beretA. ,
. �-�Rt�;,.; +fa�.... �,.;;·�
• "' !:. ,_, ..!:.·•,.•.-•.-,-.,!• .-\_•�-<-�•.:-:•, •-:-:.•••••::•••=�• •• " , .\:.:•�••••••��.••�•=·•,'�
,
..
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�or �
c.� to @•ct�•.. , • ,. ,,· ·.· '._, ·-. '• ·'.. , . . •·-. •� '. , : - • ••• "•, ,_. � ••
'•, .,._. ·:... •• • ',,'::, •>
Gr.anhr, ntdail an · eu •• nt • : for it..U an4 lta ualpa I in that
·portion of tbe·.,roperty 41u"1Nd &NYe vblcb1- tl9'ecn.W • follows
:• • ' '• • J '.i • ;_ '.,i• O .,, ,-
•
�
•
I " ''
~ •• • .•• .:,,:;�•" •"
' Lyi-a within S.c:tiOa 28, TlOI. U·7W. of �the·. City' of Muabpa,
llukeaon CouatyI Mida1..; bae'by deKriW; .. I< - ,-: , ·
_ :_::· ·. ' . .. .. .
Li.._,
'
· · Begbmlog · · ·a� -�• tbe · teort ;t . co� of ' Plat of lcJgevater
Su'bclivi■ioa, -�tf of ....... teeorW in l,, Page 82. of
Plata, 1111-..oa Couac,- lacoru; ?;, :, · < · ·:'· ' .,.
rlwlM:e Sout� 89 dear... 37 mau� 27 Nconda Wut, 105.00 feet,
·, . •:! ' :• .... -.
DleGce llorth 01 -,r.. 52 •:Swtea 29 ..... INt. 40.00 feet,
1buce Borth 89 � 37 ■tnut.e• ,27 ..a.ab But., .7,.82 feet,
_ · ftenee llort� 42 •sr-- ld•tea 40 ·NCOIIU r.ut, 128.60 feet, s,
: '.TJlaa.1:9 · South 47 .... 04 ldimtu 20 But:,
··
oa � ••ader •coaa
liae a1oag ■bore of ....... Lib, 10.00 &et,
ftaace 8outh42 clqnu.55atm&tu40 •c:o.Sa·W..t, 174.10.fnt,
� Solltll 89 -,r... 37· lliSUlta 27 MCODda Wut,·. -aloa,_ Nortll
·
. � · of llat of·Bdgevatc, 552.46_ f•t, to l'oi1lt .of·leg11Ul1a,.
Sat.cl ea_,.t. - uy· lie, \INCi b1 Orator; or ita ...1gu for -, purpoae
_'
. illcludiag OQe of iDgreu a4 iato lalrea, ·. evDMla _ ad other -.r•••
aartDQ Wllich 118)' · be coutnctecl upon property vhicb b contiguoua to
._ ,· the propert1 co11veyed. herein. 'Ilda ••.._.... •hall penait Gr.antor or it•
, • uaipa to u:cavatAli. die �perq ccwer.S by- tbia ••• nn�,- at 1ta ova
· �peue, to pro\dde a vatenaJ 11ito auc:h lakea, cbaasiel.• or uriua.
· ... , ..
. . . .· • .
i$., ·-�'.:.�:-.: . ;.�·(:_,�._·.: ·'lliia·:•u••n•• ·�e: ·f�tli'-.U.��1'!1·:'L• J',�·-s;...,_ _, . ._ .ect : :.
•
.•• i.• ·,·
>
•·
: ; �; ; ,; :
i/%-.�\\�:,;::_>;,..:/'. �- .-��. ·or ·tea:-�,•• fen:·��-•�· t.eke_ :place oa one . .
coat_.·..,.
$ ' ,.' - - •·
[��·����:: -�t-:\\:/:,·•-�.-eeia;�·-� �:�·
f··-,.�:!-�w:-·.·; :-:..•:. ·hiUyiiaally or ......
,..,.
;'�·•ft?
·• ad 1'1dcb -.· .
�j�\�:{1�i���.,��;;�:2'.i;{�" f,:;f
■ccomit. fe atasift,... of· t1le
1
r:: J-<•>:,'.5.',;>::'.,'.··•,,; . •,• ·fte propay
t
OODV•- -� . .-ii , ..... tbe . follovlac burdau
ft��;t�:�:; ;i[i;.��·�:::ut.�:2:�:
�-·'}·::;��.,:.:, · :_<-'.; 1JIMler the · t..- ··of tlla fur� .Ap'cnmx--: dat:M Ma, 10, 1983, entered
[,}·�:.::- :; \._-':\: -llito lletwaea Crailtor ad·-•• ·ctcy of · -...... Klcbf.ia. for the
�/-./:-:t :•i.,c:_:--.:\;-,...par.... of: pro,erty., : a portioa of. wld.cll 1a ·tlaat, vbich 1• CODftyed
!,:j;' ::- .;-'._:':: /:)_.· \ ·-•ntA,.
t:lle foner :la r..utnd to coutruct ... -...
·
Lot and Boat uua
· _
V:':: _''.· . -:'.:-'e ·Llluacla, vllich b deplc:aid OD · the Bxld•it 2 : to tbe .Mid �chue
�,-··():>·:_:_;; :,,·.'.). ... itaat, .. ParldQa Lot ....... loat Laoch. Alon, wit\ the
:::>-,.·.; :/>' .:.' > coutnctioo of . Niel Partiq Lot ad �t Laulach ruo• the burden of
C\-__:\::.·-�:>. ':.:: '.:,
_· --:."=\:t=
�11t•io:«ag tbe 1W aad_ ■A::lq it opeS!atioul mul open to public uae at
._:.\,:, � .. ,:-·��::_. naouble dw acl Oil u..or&able tena■ •.
t.- r: . , \: : - :·_ . ·- ·" - . . . .. . ,._ : .
. . ..
'."-.·/'.;_·.:.�•:,, ·._,_,) In adcU.Uoa.. f.D tbe evnt cbt aaU farldq tot and Boat Lat.:ach ara not
t' ,Y/ ·/:. > .:' · ·. � -1at.d-■cl aacl ude &'tail.able to tba ,public. at nuouble ti.au · aod on
� : · - . > ·;· :. · ·' _... . nuouble te:ru t'be- ·City of Mukegon •hall be grated an eaatllNK of
(;\_._ .'.:: .., .'. DINN aacl epe9• to &lld froa •dd Parkbg Lot a aad tbe Boat Launch
�'.;'. _.: ._· i ,· > · :-. ad · they •bdl lane tbe rtcbt to operate aDd u1Atai11 tbe Parking tot I
; >.'-. ' -_". .._ , ·.
: ail4 � Laadt alMl retain all of tbe nnu ad cbargea obtained
�(). �:;� } >.·�·:_. ·:�bJ·_ :: . ''._-:· ·.-_i ·. .
.
!/.� , -: :. > :. 'Iha ••n · of thaN chatiu, o'bligattou ad condition• ■ball. pua
r·,. . , : :· · .>: With tlle 1aad CODY-,U
t/3_--:·\ ':.·:\: .�,f:Rt•rat.
0
• •• : . •
llereia, to �atee ad its ar.igu and tlUCceHora
· :· -; · _- • ... · · ·
_ .
(.:: /:;;_· \-. · : ·.·· lfaillcawce (2) of ·tuM:91 t.ot A and Clt7 OWDed Parkin& l.ot
:r:' · -. '. �- . • Coatipou to Par@iii lot �• _.
· :.·· :"._;.__ : 1Jia4a-r· t1ae uru of tbe hrc:bue Aar....t, dated Kay 10, 1983, entered
(_ .. . · · ·. ·. -.,_ illto betnea · _Grator, ucl tbe City of Muategon. Mlcbigao, fff tbe
•. . ; · · ·: . : ,-rclllue o,f property, & portion ·of which ta that whicb ie coaveyed
\. � .: . ·. _. .nm.
the fonier 111 required to coutnct a Parkins Lot A, a portiOQ
c· : · ·_. _.: ·.,. of vllich ta loc:at:ed on City ovaed· prope�ty ad tbe wole of vldch i•
.
·:: · , - .· _: · _. depf.c:� os, tile lx1af.b1t 2 to tbe Mid purcbUe agreeMat H Parldq Lot
t... _..- · · ,' ,-
:-·. · · . A with the ,Ol'tioll located OD C1C, oVMCl property beiag delillUted.
A1oq "1tb tbe coutnctioo of Aid Parkia, Lot A ruu tbe burdao of
�: - ... '... · :"" pr..."1q, npalrillg ··• ·-1&ate:ha:ID1 tba ..... botb that portion
.. ,, ··.: .. , , ..· _... located Oil properc, CODflyed bareia ud Oil Cle, Proper ty•
•·. •• '
-r
• • , • • • • • • i. "
·. • .
, . , _. In · the · neot · tN City •hall Nll any of the propercy retained by tbe
.
{ ,. - · · · .... vbidl propert7 1a Was developed by Crantor or iu ...1gu. a
:
: PMDt u aP,rovecl by tbe City of
,ll-,..
.... _·. .:: -· part of it• Urbaa,Plan.., IJD1t J>nelo , .•. ••
. !, .. - '•
.
.
. ' .. '.
-
,
. .. :· ·: :._·; •'
.
•
. .. ··-" :·: '
.. ....: �. ... ·, �·
. _...
.:'.
.
... .
. . ·,_
.•.; ...
__
, -. • ,\ _
. :. � .... .
;· !. :. .- ".• .•. ,•· < • ,. •· .
..• • ···•.,./'.'/.-.= . ;•�•,.•·...... •-:!
;.•-�--�-<,·.�::•·.··-:,_...._.,·.•- .,;:,.�. .··._·::.::·\,:\'>"�<·�-.;:, -�'..:�-�--. . ...
. :·_ . ..
·
... ,
ta,aara,_ ···1(1>)• ':·7(c) • •\ 1(d) oi. tbe·leal.· latata l'urcwa Api-nt: . ·
·'··:.:<�-,.- ,:·:·_
. •_...., 10, 1913, •tend SD� h� Cra11to�. C.A.J. · Dffelo,-mt •.
!<< � ,·:··:.,:/ls�.
t. i'.·< •'·
a4 ·ti.. Clty of ·•� for tile purcbaN of p,percy, 1fb.icb.
; . . . . : . '·:._' ': .....-c u OIi tu.· With the ClHk for tbe ctt;y of Nulcepa, Nuasoa
•'...:,. ·· · .>C:, ,':) '. .
i, Ba11• · a .··. porU.GO d · vld.cb :la · coa:we,-
bere.tn·, · are herel,y
:.
•. ::·· -<· ;'- �coqao1:ate4 1-y nfenace· � for tbe purpo• of fmtbu ·· de■crtption
.,:C ·. ·�--
. . ·.<: -�·-.,__,·-. · : · ·
.. .: :� . ' ·< .� ·_. clarUi.catioJI of ti.. nrmo lllpo■- ou tbe er_.t.. aacl it• a11p■
m auccuaora to. u�rat� : . . . .· ,· : , , .· · . . · _. . ·. i . .. · '. "":
�
·
. . ·: : .. _._., . . .:
' .-
a, of
_·•••.-·
.
,.
..,.. ,,.
_. __.Mt.-v__. _ -, 1984.
-� ,
. : .. , ' bated thb ____,,__ .
..
... . •' !
.·a,
���-·
·A�M:,�:
...
etar,
.... ..t
.. S'UD.01 MICUGO _'.: )
•.•·.·)
comm or NUSIIOOI '. >
· ·,·:, , -.;.
!be foregotq in.ttnaeae 111U aclmovlectged bef9rt • tlda 18th
daJ of · . NY · · · · . · · • 1984, 1>J' tic;bard •• Andert• aad Willia a..
\�
' . St.at:oa-, l,.'runnt and Secretary, reapectively, of C.A.a. Developant•
lac.� • ltlcb:lpn Corporadon, oo behalf of the Mid corporaUou.
··•. · ...• ·• •·
· . . ·i.
.
•. · .... ·· .�.,,...,_,,
'lotary Pu1t11c
Jlaaugoo eou.it,.,. IUchlsao
11y eo... Bxittrei: · �MUABY 25, 1W
Whall leeorded
Be:tun 'l'o:
Sud Subnqumt
Tax 1111a To:
19ftecl by:
��� Law Officu
£re•• Orator P.O. �- 1146
H&aakegota, Kl 49443
---- ---- ----
. - . . .
Tu·Parcel I lecordf.Dg 'Jee · · levenue Steapa
EXHIBIT F
TITLE SEARCH SUMMARY
ISSUED BY
Transnation Title Agency of Michigan Lakeshore Division
IDENTIFICATION DATA
(FOR REFERENCE ONLY)
FILE NO.: 252579WMS
PROPERTY ADDRESS: 1490 EDGEWATER STREET, MUSKEGON, MI 49441
"TRIANGLE" DESCRIPTION, MUSKEGON, MI
"CHANNEL EASEMENT", MUSKEGON, MI
TRANSNATION TITLE AGENCY OF MICHIGAN LAKESHORE DIVISION (THE “ COMPANY") HAS
ISSUED THE ATTACHED TITLE SEARCH SUMMARY FOR MCSHANE & BOWIE, P.L.C. (THE
“APPLICANT"). THE ATTACHED TITLE SEARCH SUMMARY MAY NOT BE RELIED UPON BY ANY
OTHER PARTY NOR MAY IT BE RELIED UPON FOR ANY OTHER PURPOSE.
THIS TITLE SEARCH SUMMARY IS LIMITED IN SCOPE AND IS NOT A GUARANTEE OF TITLE
OR OWNERSHIP, AN ABSTRACT OF TITLE, TITLE OPINION, PRELIMINARY TITLE REPORT,
TITLE REPORT, COMMITMENT TO ISSUE TITLE INSURANCE, OR A TITLE POLICY, AND
SHOULD NOT BE RELIED UPON AS SUCH. THIS TITLE SEARCH SUMMARY DOES NOT
PROVIDE OR OFFER ANY TITLE INSURANCE, LIABILITY COVERAGE OR ERRORS AND
OMISSIONS COVERAGE. THIS TITLE SEARCH SUMMARY IS NOT TO BE RELIED UPON AS A
REPRESENTATION OF THE STATUS OF TITLE TO THE PROPERTY.
AS PART OF THE CONSIDERATION FOR THE ISSUANCE OF THIS TITLE SEARCH SUMMARY,
APPLICANT AGREES, TO THE FULLEST EXTENT PERMITTED BY LAW, TO LIMIT THE LIABILITY
OF THE COMPANY, FOR ANY AND ALL CLAIMS, LIABILITIES, CAUSES OF ACTION, LOSSES,
COSTS, DAMAGES AND EXPENSES OF ANY NATURE WHATSOEVER, INCLUDING ATTORNEY’ S
FEES, HOWEVER ALLEGED OR ARISING INCLUDING BUT NOT LIMITED TO THOSE ARISING
FROM BREACH OF CONTRACT, NEGLIGENCE, THE COMPANY'S OWN FAULT AND/OR
NEGLIGENCE, ERRORS, OMISSIONS, STRICT LIABILITY, BREACH OF WARRANTY, EQUITY,
THE COMMON LAW, STATUTE, OR ANY OTHER THEORY OF RECOVERY, OR FROM ANY
PERSON'S USE, MISUSE, OR INABILITY TO USE THIS TITLE SEARCH SUMMARY OR ANY OF
THE MATERIALS CONTAINED THEREIN OR PRODUCED, SO THAT IN NO EVENT SHALL THE
TOTAL AGGREGATE LIABILITY OF THE COMPANY EXCEED THE COMPANY ’ S TOTAL FEE FOR
THIS TITLE SEARCH SUMMARY.
TITLE SEARCH SUMMARY
SCHEDULE A
IDENTIFICATION DATA:
(For Reference Only)
File No.: 252579WMS
Applicant: McShane & Bowie, P.L.C.
Property Address: 1490 Edgewater Street, Muskegon, MI 49441
"Triangle" description, Muskegon, MI
"Channel Easement", Muskegon, MI
1. Effective Date: September 12, 2018 at 08:00 am
2. Title to the estate or interest in the land is at the Effective Date vested in:
City of Muskegon, a municipal corporation of the State of Michigan
3. The land referred to in this Title Search Summary is described as follows:
Located in the City of Muskegon, County of Muskegon, State of Michigan,
SEE ATTACHED EXHIBIT "A"
Schedule A 2 of 6
Title Search Summary
Issued by Transnation Title Agency of Michigan Lakeshore Division
File No.: 252579WMS
Exhibit "A"
Part of Section 28, Town 10 North, Range 17 West, City of Muskegon, Muskegon County, Michigan, more
particular described as: Commencing at the Northwest corner of the Plat of Edgewater Subdivision,
Muskegon County, recorded in Liber 3, Page 82 of Plats; thence South 89 degrees 29 minutes 03 seconds
East 522.46 feet along the North line of said plat to the point of beginning; thence North 43 degrees 49
minutes 09 seconds East 253.30 feet along the Southeasterly line of and area described in Quit Claim
Deed, Liber 1285, Page 894; thence South 28 degrees 34 minutes 30 seconds East 210.94 feet along an
intermediate traverse line to a point on the extension of the North line of said subdivision; thence North 89
degrees 29 minutes 03 seconds West 276.29 feet along said North line and its extension to the point of
beginning, including all land between the intermediate traverse line and Muskegon Lake bounded by the
extension of the described Northerly and Southerly lines.
File No.: 252579WMS
SCHEDULE B – SECTION I
This Title Search Summary and items listed herein are issued for informational
purposes only and are not to be relied upon as a representation of the status of title
or an offer of any title insurance, coverage or policy. Should evidence of title
and/or encumbrances be desired, an application for title insurance should be
placed with the Company.
Schedule B I 4 of 6
Title Search Summary
Issued by Transnation Title Agency of Michigan Lakeshore Division
File No.: 252579WMS
SCHEDULE B – SECTION II
MATTERS CONCERNING THE PROPERTY
NOTE: Any covenant, condition, restriction or limitation contained in any document referred
to herein based on race, color, religion, age, sex, handicap, familial status, or national origin,
is omitted unless and only to the extent that the covenant, condition, restriction or limitation
is not in violation of state or federal law.
1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first
appearing in the public records or attaching subsequent to the Effective Date.
2. Rights or claims of parties in possession not shown by the Public Records.
3. Any encroachment, encumbrance, violation, variation, or adverse circumstance
affecting the Title that would be disclosed by an accurate and complete survey of the
Land.
4. Easements or claims of easements not shown by the Public Records and existing
water, mineral, oil and exploration rights.
5. Any lien, or right to a lien, for services, labor, or material, heretofore or hereafter
furnished, imposed by law and not shown by Public Records.
6. Any and all oil, gas, mineral, mining rights and/or reservations thereof.
7. Taxes or special assessments which are not shown as existing liens by the Public
Records.
8. Taxes and assessments which become due and payable or which become a lien
against the property subsequent to the interest insured and deferred and/or
installment payments of said taxes and assessments. The Company assumes no
liability for tax increases occasioned by uncapping and adjustment of the taxable
value, retroactive revaluation, changes in the land usage or loss of any principal
residence exemption status for the insured premises.
9. Any provisions contained in any instruments of record which provisions pertain to the
transfer of divisions under Section 109(3) of the Subdivision Control Act of 1967, as
amended.
10. Rights of the public and of any governmental unit in any part of the land taken, used
or deeded for street, road or highway purposes.
11. Rights, if any, of the United States government, the State of Michigan, any other
governmental entity, riparian owners, the public or private persons existing in or with
respect to the present and past bed, banks, bottomland and waters of Muskegon
Lake.
12. Terms, conditions and provisions which are recited in Quit Claim Deed recorded in
Liber 360, Page 98.
13. Loss or damage sustained as a result of subject property or a portion thereof, not
being assessed for taxes.
Schedule B II 5 of 6
Title Search Summary
Issued by Transnation Title Agency of Michigan Lakeshore Division
File No.: 252579WMS
JT
Schedule B II 6 of 6
Title Search Summary
Issued by Transnation Title Agency of Michigan Lakeshore Division
835610_Topo
maxg 112618
SKETCH OF DESCRIPTION EXHIBIT G 1 OF 1
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SCALE IN FEET
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NORTHWEST CORNER N89 °29'03"W 276.29'
PLAT OF EDGEWATER
SUBDIVISION
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This page is only a part of a 2016 ALTA Commitment for Title Insurance issued by Fidelity National Title Insurance Company. This Commitment
is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I –Requirements;
and Schedule B, Part II –Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.
27C165B ALTA Commitment for Title Insurance 8/1/16
Copyright American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA
members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.
Commission Meeting Date: February 12, 2019
Date: February 7, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Sale of the City-owned lot at 1021 Jefferson St
SUMMARY OF REQUEST:
Staff initiated request to sell the lot at 1021 Jefferson St. After presenting the
development proposal to the City Commission in November of 2018, staff executed a
Letter of Intent to sell the property to General Capital Acquisitions, LLC for $455,000.
FINANCIAL IMPACT:
Funds received from the sale will go into the general fund.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the “Offer to Purchase.”
COMMITTEE RECOMMENDATION:
None
2/7/2019
OFFER TO PURCHASE
THIS OFFER TO PURCHASE ("Offer") is made and entered into as of this 12th day of
February, 2019 ("Effective Date"), by and between General Capital Acquisitions, LLC, a
Wisconsin limited liability company and/or its assignee ("Buyer") and the City Of Muskegon
("Seller").
RECITALS
A. Seller currently holds title to that certain real property commonly known
as 1021 Jefferson Street, located in the City of Muskegon, State of Michigan, identified as Parcel
Number 61-24-205-355-0001-00, and legally described as on Exhibit A attached hereto (the
"Property"). The term "Property" shall further include, without limitation, all of the following:
all land identified herein (whether by address, tax parcel, property name or other description) as
all or part of the Property; all buildings, parking, fixtures, improvements and easements located
on or appurtenant to such land; and, all licenses, permits, plans, specifications and all other
rights, title and interest appurtenant and otherwise relating to any and all such property.
B. Buyer desires to purchase the Property from Seller, and Seller desires to
sell the Property to Buyer, upon the terms and conditions hereinafter set forth.
In consideration of the mutual covenants and promises of the parties, Seller and Buyer
hereby agree as follows:
AGREEMENT
1. Purchase Price. The purchase price ("Purchase Price") for the Property shall be
Four Hundred Fifty-Five Thousand and No/100 Dollars ($455,000.00), and shall be payable,
subject to pro-rations, deferrals and credits as provided in this Offer, at Closing (as hereinafter
defined) by delivery of a certified or cashier’s check or by wire transfer. Within two (2) business
days from the execution and delivery of this Offer by Buyer and Seller, Buyer shall deposit with
the Title Company (defined below) in a joint order escrow pursuant to the Title Company's usual
and customary escrow instructions, the sum of Twenty Thousand and No/100 Dollars
($20,000.00) (“Earnest Money”). The Earnest Money may be invested by Title Company (at
Buyer's option) in an interest bearing account with all interest accruing thereon paid to Buyer and
applied toward the Purchase Price at Closing. Buyer shall pay all fees and costs related to the
Earnest Money joint order escrow account. Except as otherwise set forth herein, the Earnest
Money shall become non-refundable, but remain applicable to the Purchase Price, after the
expiration of all Contingency Periods (as defined below).
2. Contingencies.
Buyer's obligations to conclude this transaction are contingent upon the following
(each a "Contingency" and collectively, the "Contingencies"):
A. Survey. On or before November 30, 2019 ("Survey Period"), Buyer
obtaining, at its expense, an up to date ALTA survey of the Property in form and
substance satisfactory to Buyer, prepared by a registered land surveyor and
40668785v2
certified to Buyer and such others as Buyer may reasonably request, which survey
shall show all exceptions noted on the Commitment (defined below) called for in
Section 4 below and which shall be sufficient to delete all standard survey
exceptions from the Commitment ("Survey").
B. Documentation Approval. On or before November 30, 2019 ("Document
Approval Period"), Buyer reviewing and approving, in its sole discretion, copies
of any and all documentation provided pursuant to Section 5 below.
C. Required Approvals. On or before November 30, 2019 ("Approvals
Period"), Buyer obtaining, at its expense, approvals from any federal, state or
municipal governmental department or agency as is necessary or desirable for the
contemplated transaction to occur and to allow Buyer to use the Property as
contemplated herein (collectively, "Approvals"), and reviewing and verifying, in
its sole discretion, that the Property is fully compliant with all relevant
governmental rules, regulations and restrictions governing Buyer’s proposed use
of the Property as multifamily housing. Seller shall reasonably cooperate with
Buyer in connection with the procurement of the Approvals at no material cost to
Seller. Provided Buyer makes timely application for all Approvals, and in good
faith pursues all Approvals, Buyer shall have the right to extend the Approvals
Period for up to an additional thirty (30) days by written notice to Seller prior to
the end of the initial Approvals Period.
D. Environmental. On or before November 30, 2019 ("Environmental
Period"), Buyer obtaining written environmental assessments and/or evaluations
of the Property (including Phase I and Phase II studies) from an environmental
consultant of Buyer's choice, confirming that (i) the Property complies with all
Environmental Laws, as defined in Section 13 below; (ii) there are no liabilities
(contingent or otherwise) affecting the Property arising under and Environmental
Laws; (iii) there are no underground or aboveground storage tanks, associated
pipes or equipment located on or at the Property; and (iv) there are no Hazardous
Substances, as defined in Section 13 below, on, under, at, in or migrating to or
from the Property.
E. Title Review & Insurance. On or before November 30, 2019
("Title Review Period"), Buyer reviewing and approving, in its sole discretion,
any and all easements, restrictive covenants, restrictions, land use regulations or
other encumbrances affecting the Property. Also, Buyer determining that the
Survey and Commitment called for in this Section 2 and Section 4 below are
acceptable in Buyer’s sole discretion. For purposes of this Offer, the term
“Permitted Exceptions” shall mean only those title and survey exceptions
reflected on the Commitment and the Survey either: (i) to which Buyer does not
object in writing prior to the expiration of the time period set forth herein; or (ii)
which Buyer accepts pursuant to Section 4(c) below, but in any case expressly
excluding all liens and similar type encumbrances of a definite or ascertainable
amount, including but not limited to mortgages, tax liens, mechanics’ liens and
judgment liens (collectively, "Liens").
2
40668785v2
F. Additional Inspection. On or before November 30, 2019 ("Due Diligence
Period"), Buyer performing, at its expense, such inspections and other
investigations and testing deemed appropriate by Buyer, including but not limited
to appraisals, wetland and floodplain surveys, soil, pests and any investigations
required to develop both architectural and engineering plans, and investigations
into regulatory, title, lease, tenant, operations, insurance premiums and other
matters deemed relevant by Buyer, which collectively indicate to the sole
satisfaction of Buyer that the Property is in good condition and repair and that
there are no material defects or deficiencies in any part thereof, and that the
Property is otherwise acceptable to Buyer in Buyer's sole discretion.
G. Financing.
(i) On or before November 30, 2019 ("Financing Period"),
Buyer obtaining (x) a written commitment from a lender to provide
mortgage financing for Buyer’s acquisition and development of the
Property, (y) a written commitment for low income housing tax credits
("LIHTC") for Buyer’s acquisition and development of the Property, (z)
written commitments for additional subsidies for Buyer’s acquisition and
development of the Property, all upon terms and in amounts that are
acceptable in Buyer’s sole discretion (collectively, the "Financing").
Provided Buyer is in good faith pursuing such Financing, Buyer shall have
the right to extend the Financing Period for up to an additional thirty (30)
days by written notice to Seller prior to the end of the initial Financing
Period.
(ii) Buyer intends to submit an application (the "Application")
to the Michigan State Housing Development Authority (“MSHDA”) for
2019 9% LIHTC by the deadline established by MSHDA for its Spring
2019 funding round (the "Spring Application Date"), which is anticipated
to be April 1, 2019. If Buyer does not submit such Application by the
Spring Application Date this Offer shall automatically terminate, the
Earnest Money together with all interest thereon, if any, shall be
immediately returned to Buyer and all rights, duties and obligations of the
parties under this Offer shall thereafter cease and be of no further force or
effect (except with respect to the provisions hereof which expressly
survive the termination of this Offer).
(iii) Buyer agrees to keep Seller updated as to the submittal of
the Application and award (if applicable) of LIHTC. If Buyer submits an
Application by the Spring Application Date, but is not awarded LIHTC by
MSHDA, Buyer shall have the opportunity to submit a second Application
for 2019 9% LIHTC by the deadline established by MSHDA for its fall
2019 funding round (the "Fall Application Date"), which is anticipated to
be October 1, 2019. If Buyer submits such second Application prior to the
Fall Application Date, the Contingency Periods and Closing Date shall
automatically be extended by seven (7) calendar months.
3
40668785v2
The Survey Period, Document Approval Period, Approvals Period, Environmental
Period, Title Review Period, Due Diligence Period and Financing Period are collectively referred
to herein as the "Contingency Periods".
3. Contingency Period.
(a) If Buyer does not notify Seller within the applicable Contingency Periods
(as may be extended) set forth above that the Contingencies set forth above have been satisfied
or waived by Buyer, this Offer shall automatically terminate, and all Earnest Money shall be
returned to Buyer, and all rights, duties and obligations of the parties under this Offer shall
thereafter cease and be of no further force or effect (except with respect to the provisions hereof
which expressly survive the termination of this Offer). Buyer and Seller agree that Buyer shall
not be required to attempt to satisfy all the Contingencies or to do so simultaneously, but may
instead attempt satisfaction of the Contingencies in any sequential order established by Buyer. If
at any point Buyer in good faith concludes it will not be able to complete the transaction, it will
promptly give Seller written notice thereof and terminate this Offer.
4. Title Insurance.
(a) Seller shall, within twenty (20) days of the Effective Date, obtain and
deliver to Buyer a title insurance commitment ("Commitment") from Cinnaire Title Services,
1118 S. Washington Avenue, Lansing, Michigan, Attn: Steve Smith ([email protected]) (the
"Title Company") to issue an owner's policy of title insurance in the amount of the Purchase
Price, naming Buyer as the insured. Such Commitment shall show fee simple title to the
Property in Seller and shall be accompanied by copies of all exceptions noted in the
Commitment or of record. Seller shall require the Commitment to obligate the Title Company to
issue a policy that will guarantee Buyer's title to be in the condition required under this Section 4
and Section 7 below (without standard exceptions) as of the Closing Date (as hereinafter defined)
and shall require that the Commitment include a gap endorsement, zoning endorsement,
contiguity endorsement, access endorsement and any other endorsements reasonably requested
by Buyer; the cost of the title insurance premium, including the gap endorsement, shall be the
responsibility of Seller, and the cost of all other endorsements, and the costs related to any
lender's policy, shall be the responsibility of Buyer.
(b) If the Commitment or Survey discloses matters or exceptions that are not
acceptable to Buyer, in Buyer's sole discretion, Buyer shall deliver written notice of such
objections to Seller prior to the expiration of the Title Review Period (the "Objection Notice").
Except as set forth herein, if Buyer fails to deliver the Objection Notice during the Title Review
Period, then Buyer shall be deemed to have accepted all matters of record as of the effective date
of the Commitment, and all such matters shall be deemed "Permitted Exceptions", except as set
forth herein. Following receipt of the Objection Notice, Seller may remedy, or agree to remedy
prior to Closing, Buyer’s title objections to the satisfaction of Buyer and the Title Company by
delivering a notice to that effect (the "Objection Response") within five (5) business days after
Seller's receipt of the Objection Notice ("Seller's Title Response Period"). Notwithstanding
anything to the contrary herein, Permitted Exceptions shall not include any Liens. Seller shall be
required to cure or remove all Liens (by payment, bond deposit or indemnity acceptable to the
Title Company and Buyer) at or before Closing.
4
40668785v2
(c) If Seller does not timely deliver an Objection Response indicating that it
will cure or remedy all of the title objections set forth in the Objection Notice, then Buyer, at its
election, shall have the right either to: (a) proceed to Closing, in which case Buyer shall accept
title to the Property subject to the objections that Seller has not agreed to cure or remedy (and
such matters shall be deemed Permitted Exceptions, except for any Liens), with the right to
deduct Liens from the Purchase Price paid at Closing; or (b) terminate this Offer by delivery of
written notice to Seller, in which event the Earnest Money shall be immediately returned to
Buyer and all rights, duties and obligations of the parties under this Offer shall thereafter cease
and be of no further force or effect (except with respect to the provisions hereof which expressly
survive the termination of this Offer). In addition, if Seller delivers an Objection Response but
subsequently fails (despite the exercise of commercially reasonable good faith efforts) to cure or
remedy all of the title objections that it had obligated itself to do so in the Objection Response,
then Buyer, at its election, shall have the right either to: (a) proceed to Closing, in which case
Buyer shall accept title to the Property subject to the objections that Seller has failed to cure or
remedy (and such matters shall be deemed Permitted Exceptions, except for any Liens) with the
right to deduct Liens from the Purchase Price paid at Closing; or (b) treat such failure by Seller
as a default under this Offer.
(d) At any time prior to the Closing, Buyer shall have the right to object to
any title matter appearing for the first time on a title commitment that is updated subsequent to
the Commitment (the "Updated Title Commitment"). All such Updated Title Commitment
objections shall be handled in the same manner as the objections described above, and, if
reasonably required by Seller in order to effect a cure of any title objection that Seller is required
or agrees to cure hereunder, the Closing Date shall be extended accordingly for a period not to
exceed five (5) days beyond the Closing Date, to enable Seller to cure such title objection.
5. Document Production. Seller shall, (a) within twenty (20) days of the Effective
Date, provide Buyer with copies of and/or full access to all documents, including but not limited
to, all leases, agreements, reports, environmental information, title documentation, notices and
correspondence pertaining to the Property and (b) within five (5) days of the Effective Date,
provide Buyer with copies of and/or full access to all plans, specifications and surveys pertaining
to the property (the documents in (a) and (b) are collectively referred to herein as, "Due
Diligence Documents"). For every day that Seller is late delivering any documentation required
pursuant to this Section 5, an additional day shall be added to all of the Contingency Periods set
forth in Section 2 of this Offer.
6. Access and Cooperation. Buyer and its employees, officers, agents, engineers,
surveyors, appraisers, lenders, attorneys, consultants, contractors and other representatives, at
any time after the Effective Date, shall have the right to enter the Property to conduct
inspections, studies and investigations of the Property, including the right to take and remove
reasonable test samples and to undertake all Contingencies set forth in Section 2, upon at least
one days' prior notice to Seller. Seller shall cooperate with Buyer in Buyer's exercise of its rights
hereunder. Buyer shall indemnify, defend and hold Seller harmless from any and all claims,
losses, damages (excluding punitive, speculative or consequential damages), costs (including
reasonable and actual attorneys’ and other professionals’ fees, expenses, and disbursements) and
liabilities which may arise due to actions taken by Buyer and its employees, agents and
contractors on the Property prior to the Closing, including surveys, tests, investigations and the
5
40668785v2
like; provided, however, that Buyer will not be responsible for indemnifying Seller or from the
mere discovery of any pre-existing adverse condition on the Property (environmental or
otherwise). Additionally, Seller shall cooperate with Buyer in applying for and obtaining any
licenses, permits or approvals, that are necessary or desirable for Buyer’s redevelopment of the
Property, including signing applications for such approvals and permits, provided, Seller shall
not incur any costs as a result of such cooperation.
7. Condition of Title. Seller shall, at Closing, convey fee simple title in the Property
to Buyer by good and sufficient warranty deed, free and clear of all liens and encumbrances
except the Permitted Exceptions and general real estate taxes levied in the year of Closing (the
"Deed").
8. Default.
(a) If Buyer is in default under this Offer and such default is not cured within
five (5) days following written notice thereof from Seller, then Seller may, as its sole and
exclusive remedy, terminate this Offer and retain the Earnest Money as liquidated damages.
Upon any such termination, neither party shall have any further rights or obligations regarding
this Offer other than those that expressly survive such termination. Seller has agreed to this
liquidated damage provision because of the difficulty of ascertaining Seller's actual damages
given the uncertainties of the real estate market, the fact that Seller retains ownership of the
Property, fluctuating property values, and differences of opinion with respect to such matters.
Seller waives the right to assert the defense of lack of mutuality in any action for specific
performance instituted by Buyer.
(b) If Seller defaults in the performance of any of its obligations under this
Offer and fails to cure such default within five (5) days following written notice thereof from
Buyer (provided, that the foregoing five (5) day cure right shall not apply to a failure by Seller to
deliver the documents and instruments required to be delivered by Seller at Closing, it being
agreed that Seller shall not be entitled to notice or an opportunity to cure any such failure by
Seller), Buyer may (i) terminate this Offer, in which event the Earnest Money shall be returned
immediately to Buyer, Seller shall reimburse Buyer for all costs incurred by Buyer in negotiating
this Offer and all due diligence performed with respect to the Property, including interest
thereon, or (ii) Buyer may seek any remedies available at law or in equity, including the remedy
of specific performance (and, in such event, Seller agrees to indemnify Buyer for all of Buyer's
costs and expenses, including without limitation reasonable attorneys’ fees and court costs,
incurred in such action). If Buyer seeks, but is not awarded, the remedy of specific performance,
Buyer may then proceed under subsection (i) herein.
(c) The foregoing limitations of remedies and liquidated damages provisions
shall not apply to a breach of any of the representations and warranties of Seller set forth in this
Offer, the indemnity obligations of either party under the provisions of this Offer, or defaults by
either party under the closing documents.
The provisions of this Section shall survive the termination of this Offer.
6
40668785v2
9. Binding Contract. The parties hereto acknowledge that Buyer will expend
material sums of money in reliance on Seller's obligations under this Offer, in connection with
negotiating and executing the Offer, conducting the inspections contemplated by this Offer, and
preparing for Closing, and that Buyer would not have entered into this Offer without the
availability of a the Contingency Periods. In consideration of the foregoing, and the provision of
a One Hundred Dollars ($100.00) nonrefundable deposit (the "Independent Consideration"), the
parties agree that adequate consideration exists so that Buyer's rights to terminate this Offer do
not render this Offer illusory. Seller and Buyer each waive any and all rights to challenge the
enforceability of this Offer on the basis that any of the conditions or contingencies set forth
herein are at Seller's or Buyer's sole discretion or that any of the agreements contained herein are
illusory. If either party challenges the enforceability of this Offer in a manner that is inconsistent
with the foregoing waiver, such party shall pay the other party's costs and expenses (including
reasonable attorneys' fees) in enforcing this Offer. The Independent Consideration is in addition
to and independent of any other consideration or payment provided for in this Offer and shall be
retained by Seller notwithstanding: (a) the exercise of Buyer's rights to terminate the Offer,
and/or (b) any other provision of this Offer. The Independent Consideration shall be applied to
the Purchase Price if this transaction closes.
10. Closing. This transaction is to be closed (the "Closing") at the Title Company, or
at such other location agreed to by Seller and Buyer, within ninety (90) days from the expiration
of the last Contingency Period to expire, or on such earlier date as Buyer may elect by giving
Seller at least ten business (10) days prior written notice thereof, or at such other time as may be
agreed to by Buyer and Seller ("Closing Date"). Seller shall provide Buyer with copies of all
closing documents not less than ten (10) days prior to the Closing Date. Seller shall deliver
possession of the Property to Buyer on the Closing Date.
(a) At Closing, Seller shall deliver all of the following to Buyer or the Title
Company, all of which shall be fully-executed by Seller, where required:
(i) The Deed;
(ii) Customary seller’s affidavit, ALTA statement, gap indemnity and
such other affidavits of Seller or other documents as may be
reasonably required by the Title Company in order to record the
Deed and issue the Title Insurance Policy (defined below);
(iii) Any required real estate transfer declarations and stamps, and
Seller shall pay the amount of any state, county and local transfer
taxes;
(iv) A non-foreign affidavit ("FIRPTA" affidavit);
(v) Satisfactory evidence of Seller's authority (including, without
limitation, evidence of the authority of all persons executing any
documents on behalf of Seller) to enter into this Offer, sell the
Property to Buyer and perform Seller's other obligations under this
Offer;
7
40668785v2
(vi) A signed pro forma or signed mark-up of the Commitment (the
"Title Insurance Policy") issued by the Title Company in the
amount of the Purchase Price pursuant to the Commitment and
subject only to Permitted Exceptions, and including such
endorsements as requested by Buyer;
(vii) A closing statement setting for the Purchase Price and the
adjustments and prorations set forth herein (the "Closing
Statement");
(viii) Pay-off letters with respect to all mortgages of record;
(ix) A statement certifying that all of the representations and warranties
of Seller contained herein are true and correct as of the Closing
Date;
(x) Intentionally Deleted; and
(xi) Such other documents as may be reasonably required by Buyer or
the Title Company.
(b) At Closing, Buyer shall deliver all of the following to Seller or The Title
Company, all of which shall be fully-executed by Buyer, where required:
(i) The balance of the Purchase Price, plus or minus prorations, credits
and other adjustments, by wire transfer or otherwise in immediately available funds;
(ii) A counter-part to the Closing Statement; and
(iii) Such other documents as may be reasonably required by the Title
Company in order to record the Deed and issue the Title Insurance Policy.
11. Pro-rations/Credits. The following items shall be calculated by Buyer and Seller
and prorated or credited at Closing as follows:
Net general real estate taxes for the year of Closing shall be prorated as of
the Closing Date, inclusive of said date, on the basis of the net general real estate taxes
for the year of Closing, if known, otherwise on the net general real estate taxes for the
preceding year. Seller shall pay prior to the Closing Date all general real estate taxes
attributable to any time period prior to the year of Closing. General and special
assessments for any work on or relating to the Property commenced, assessed, accrued or
levied prior to the Closing Date shall be paid by Seller at or prior to Closing.
All other expenses for utilities and other operating items related to the
Property shall be prorated as of the Closing Date.
At the Closing, Seller shall pay for the Commitment and the gap
endorsement, special assessment letters (if any) and any transfer taxes for the transaction.
8
40668785v2
Buyer shall pay for the cost to record the Deed. The parties shall split the cost of the
Title Company's closing fee.
12. Operation/Closing Conditions.
(a) From the date of this Offer through the Closing Date, Seller shall: (a)
maintain the Property in a manner consistent with the condition of the Property at the time of the
Effective Date and shall pay all bills and discharge all obligations arising by reason of Seller’s
ownership, operation and management of the Property, as they become due; (b) not, without
obtaining the prior written consent of Buyer, enter into any leases, easements or other
agreements with respect to the Property which will extend in force beyond the Closing and
purport to bind Buyer or the Property or will not be fully performed by Seller prior to the
Closing; (c) advise Buyer promptly of any litigation, arbitration or administrative hearing before
any court or governmental agency concerning or affecting the Property or this Offer; (d) upon
receipt of notice thereof, notify Buyer promptly of any violation or potential violation of any
applicable law, enactment, statute, code, ordinance, rule, regulation, judgment, decree, writ,
injunction, franchise, permit, certificate, license, authorization, agreement, or other direction or
requirement of any federal, state, county, municipal or other governmental department, entity,
authority, commission, board, bureau, court, agency or any instrumentality of any of them now
existing or hereafter enacted, adopted, promulgated, entered, or issued applicable to the Seller or
the Property ("Government Requirement"); (e) not take, or omit to take, any action that would
have the effect of violating any of the representations, warranties, covenants and agreements of
Seller contained in this Offer; and (f) prior to Closing, at Seller's sole cost: (i) remove all debris
from the Property, (ii) remove from the Property all personal property, and (iii) leave any and all
buildings and other structures in "broom clean" condition. Buyer shall have the right to
terminate this Offer and receive a return of the Earnest Money upon receipt of any notice of a
violation of a Governmental Requirement, whether from Seller or otherwise. The provisions of
this Section shall survive Closing.
(b) This Offer and Buyer's obligation to close are subject to the following
additional express conditions precedent. Buyer shall have the right to terminate this Offer and
receive a return of the Earnest Money if the following conditions precedent are not satisfied prior
to closing. Notwithstanding anything to the contrary which may be contained herein, each of the
following conditions is intended for the exclusive protection and benefit of Buyer (and may be
waived by Buyer):
(i) The continued validity of each and all of the representations,
warranties and covenants of Seller contained in this Offer in all
material respects, as of the Closing Date;
(ii) Seller shall have performed, observed and complied with all of the
covenants, agreements and conditions required by this Offer to be
performed, observed and complied with by Seller prior to or as of
the Closing; and
(iii) No proceeding by any governmental body or other person shall
have been instituted or threatened which seeks to enjoin, restrain or
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40668785v2
prohibit, or which questions the validity or legality of the
transaction contemplated hereby or which otherwise seeks to affect
or could affect the transactions contemplated hereby.
13. Warranties and Representations.
(a) Seller hereby represents and warrants to Buyer the following (subject to
Seller’s actual knowledge, where indicated below (“Seller’s Knowledge”)):
Authority/Litigation. Seller has full power and authority to execute this
Offer and convey the Property to Buyer. The execution, delivery and performance by
Seller of this Offer will not constitute or cause a default or breach of any agreement on
the part of Seller. Seller has no knowledge of any claim, demand, damage, action or
cause of action of any person, entity or governmental agency or instrumentality affecting
the Property or Seller. No petition in bankruptcy (voluntary or otherwise), assignment
for the benefit of creditors, or petition seeking reorganization or arrangement or other
action under federal or state bankruptcy law is pending against Seller, and Seller has not
made an assignment for the benefit of creditors or admitted in writing its inability to pay
its debts as they mature.
Compliance with Laws. The Property is not in violation of any
Environmental Laws, as defined below.
Underground Tanks. There are no underground storage tanks or wells
presently located on the Property nor, to Seller's Knowledge, have there ever been any
located on the Property.
Environmental. To Seller’s Knowledge, there are no Hazardous
Substances (as hereafter defined) on, under or at the Property including, without
limitation, in the groundwater. No Hazardous Substances have been treated, recycled or
disposed of (intentionally or unintentionally) on, under or at the Property. There have
been no activities on the Property which would subject Buyer or any subsequent owner of
the Property to damages, penalties, injunctive relief or cleanup costs under any
Environmental Laws or common law theory of liability. No property adjacent to the
Property has ever been used for the treatment, recycling or disposal (intentional or
unintentional) of Hazardous Substances nor has there been a release or threatened release
of any Hazardous Substances from such adjacent property. The term “Environmental
Laws” shall mean all federal, state and local laws including statutes, regulations and other
governmental restrictions and requirements relating to the discharge of air pollutants,
water pollutants or process wastewater or the disposal of solid or hazardous waste or
otherwise relating to the environment or hazardous substances or employee health and
safety including, but not limited to, the Federal Solid Waste Disposal Act, the Federal
Clean Air Act, the Federal Clean Water Act, the Federal Resource Conservation and
Recovery Act of 1976, the Federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Occupational Safety and Health Act of 1970
(all as the same may have been amended), regulations of the Environmental Protection
Agency, and regulations of any state department of natural resources or state
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40668785v2
environmental protection agency now or at any time hereafter in effect. The term
“Hazardous Substances” shall mean all hazardous and toxic substances, wastes and
materials; any pollutants or contaminants (including, without limitation, petroleum
products, asbestos and raw materials which include hazardous constituents); and any
other similar substances or materials which are regulated under Environmental Laws.
Other Government Actions. Seller has no notice or knowledge of any
violation of any law or zoning or environmental regulation and no notice from any
governmental body or other person has been served upon Seller or upon the Property
claiming violation of any such law or regulation.
Documents. All documentation delivered by Seller pursuant to this Offer
is true, correct and complete in all material respects. To Seller’s Knowledge, the Due
Diligence Documents provided by Seller have not been amended or altered, are true,
accurate and complete, and are all Diligence Documents in Seller's possession or control.
Special Assessments and Deferred Charges. Seller has no notice or
knowledge of any existing special assessments, deferred water or sewer charges or
special charges pertaining to the Property, nor any planned, contemplated or commenced
public improvements which may result in special assessments or special charges
pertaining to the Property.
Leases. There are no leases, landlord/tenant relationships or written or
oral agreements regarding the use of the Property by a third person or party or otherwise
affecting the Property.
Foreign Person. Seller is not a "foreign person", "foreign corporation",
"foreign trust" or "foreign estate", as those terms are defined in The Internal Revenue
Code of 1986, as amended ("Code") Section 1445.
Property. There are no pending requests, applications, or proceedings to
alter or restrict the zoning or other use restrictions applicable to the Property. Seller is
not aware of and has received no notice of any eminent domain condemnation,
environmental, zoning or other land use regulation proceedings which affects or will
affect the Property.
OFAC. Seller is not, and will not become, a person or entity with whom
United States persons or entities are restricted from doing business under regulations of
the Office of Foreign Asset Control ("OFAC") of the Department of the Treasury
(including those named on OFAC's Specially Designated and Blocked Persons list), or
under any statute, executive order (including the September 24, 2002, Executive Order
("Executive Order") blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit or Support Terrorism) or other governmental action and is
not and will not engage in any dealing or transaction or be otherwise associated with such
persons or entities. This Offer may be terminated by Buyer if Seller is determined to be a
blocked person within the meaning of the Executive Order and the Earnest Money shall
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40668785v2
be returned to Buyer.
(b) Buyer hereby represents and warrants to Seller the following:
Authority. Neither the execution of this Offer by Buyer nor the
performance of its obligations hereunder, will violate its organizational documents or
constitute a breach or violation or any agreement, law, regulation or order applicable to
Buyer. Buyer is in good standing in the state of its organization.
OFAC. Buyer is not, and will not become, a person or entity with whom
United States persons or entities are restricted from doing business under regulations of
OFAC of the Department of the Treasury (including those named on OFAC's Specially
Designated and Blocked Persons list), or under any statute, executive order (including the
Executive Order blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit or Support Terrorism) or other governmental action and is
not and will not engage in any dealing or transaction or be otherwise associated with such
persons or entities. This Offer may be terminated by Seller if Buyer is determined to be a
blocked person within the meaning of the Executive Order and the Earnest Money shall
be immediately returned to Buyer.
(c) Each party (in such context an “Indemnitor”) shall indemnify, defend and
hold the other and such other’s officers, members, managers, directors, employees,
agents, successors, assigns and grantees (in such context, collectively the “Indemnitees”)
harmless from and against all liability, loss, costs, damages, claims and expenses
(including reasonable attorneys' fees) arising out of or in connection with the breach by
the Indemnitor of any of its warranties, covenants and representations set forth herein, all
of which shall survive the Closing for a period of twenty-four (24) months and be
deemed to have been remade upon the Closing.
14. Indemnification. Expect as specifically provided otherwise in this Offer, Seller
shall indemnify and hold Buyer harmless from and against any and all loss, cost, damages, injury
or expense arising out of or in any way related to claims for injury to or death of persons,
damage to property or contract liabilities associated with the ownership or operation of the
Property or the business conducted thereon, arising out of events or transactions occurring on or
before the Closing Date or caused by Seller, its agents, contractors or employees, but not as to
any liabilities caused by Buyer, its agents contractors or employees.
15. Notices. Any notice or election required or permitted to be given or served
hereunder shall be in writing and be delivered either in person or sent by (i) United States
certified or registered mail, postage prepaid, return receipt requested; (ii) courier service;
(iii) telecopy transmission or (iv) email. Any such notice, if mailed as provided herein, shall be
deemed to have been mailed, rendered, given or served on the date mailed and shall be deemed
to have been received on the expiration of two business days after mailing. Any such notice, if
sent by overnight courier, shall be deemed to have been mailed, rendered, given or served on the
deposited with such courier and shall be deemed to have been received on the following business
day. Any notice or communication personally delivered or delivered via telecopy or email shall
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be deemed to have been given or served upon the party to whom delivered immediately upon
delivery thereof.
All notices shall be in writing and shall be served on the parties at the following
addresses:
If to Buyer: General Capital Acquisitions, LLC
Attn: Joshua Hafron
6938 N. Santa Monica Blvd.
Fox Point, WI 53217
Fax No. 414 228 3700
[email protected]
with copy to: David Weiss
6938 N. Santa Monica Blvd.
Fox Point, WI 53217
Fax No. 414 228 3700
[email protected]
If to Seller: ___________________________
___________________________
___________________________
___________________________
with a copy to: ___________________________
___________________________
___________________________
___________________________
The above addresses and facsimile numbers and emails may be changed by notice
to the other party; provided that no notice of a change shall be effective until actual receipt of
such notice. Notice by any party may be given by such party or its counsel to the other party or
such other party’s counsel.
16. Brokerage Commissions. Seller represents and warrants that it has not dealt with
any agent, broker or other person in connection with the transaction contemplated by this Offer.
Buyer represents and warrants that it has not dealt with any agent, broker, finder or other person
in connection with the transaction contemplated by this Offer. Each party hereby indemnifies
and agrees to hold the other harmless against and from the claims and demands of anyone who
claims a commission, fee, or similar payment by, through, or under the indemnifying party. The
provisions of this Section shall survive Closing.
17. Miscellaneous.
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(a) This Offer shall inure to the benefit of and be binding upon the
parties hereto and their respective heirs, personal representatives, successors and assigns.
Buyer may assign its rights under this Offer without the prior written consent of Seller
upon written notice to Seller.
(b) The laws of the state of Michigan shall govern the validity,
construction, enforcement and interpretation of this Offer.
(c) No provision of this Offer shall be construed in favor of, or
against, any particular party by reason of any presumption with respect to the drafting of
this Offer; both parties having fully participated in the negotiation of this instrument,
hereby agree that this Offer shall not be subject to the principle that a contract would be
construed against the party which drafted the same.
(d) On the Closing Date, or thereafter if necessary, each party shall,
without cost or expense to the other party, obtain and deliver to or cause to be executed
and delivered to the other party, such further instruments of transfer and conveyance as
may reasonably be requested, and take such other action as a party may reasonably
request to carry out more effectively the transactions contemplated herein.
(e) In the event any portion of the Property is condemned or taken by
eminent domain or conveyed by deed in lieu thereof, or if any condemnation proceeding
is commenced against all or any portion of the Property prior to Closing (collectively, a
"Condemnation"), Seller shall give written notice of such Condemnation to Buyer
promptly after Seller receives notice of such Condemnation, and Buyer may elect to
terminate this Offer by written notice thereof to the Seller within fifteen (15) business
days after Buyer is notified of the Condemnation. Upon termination of this Offer, the
Earnest Money shall be returned to Buyer and all rights, duties and obligations of the
parties under this Offer shall thereafter cease and be of no further force or effect (except
with respect to the provisions hereof which expressly survive the termination of this
Offer). If Buyer does not terminate this Offer as aforesaid, then both parties shall
proceed to close the transaction contemplated herein pursuant to the terms hereof, in
which event (i) Buyer shall receive all condemnation proceeds with respect to such
Condemnation, (ii) Seller shall deliver to Buyer at the Closing any proceeds received by
Seller from such Condemnation and assign to Buyer its interest in and to any such
proceeds which Seller has not yet received, and (iii) there shall be no reduction in the
Purchase Price.
(f) In the event that the Property or any portion thereof shall be
damaged or destroyed by fire or other casualty prior to Closing ("Casualty"), Seller shall
give written notice of such Casualty to Buyer promptly after Seller receives notice of
such Casualty, and Buyer may terminate this Offer by written notice thereof to the Seller
within fifteen (15) business days after Buyer is notified of the Casualty. Upon
termination of this Offer, the Earnest Money shall be returned to Buyer and all rights,
duties and obligations of the parties under this Offer shall thereafter cease and be of no
further force or effect (except with respect to the provisions hereof which expressly
survive the termination of this Offer). If Buyer does not terminate this Offer as aforesaid,
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then both parties shall proceed to close the transaction contemplated herein pursuant to
the terms hereof, in which event (i) Buyer shall have the right to receive insurance
proceeds with respect to such Casualty with respect to the Property, (ii) Seller shall
deliver to Buyer at the Closing any insurance proceeds received by Seller attributable to
the Buyer from such Casualty (except for proceeds previously used to repair the Property
to the extent that immediate repairs are reasonably necessary) and assign to Buyer all of
Seller’s right, title and interest in and to any claims which Seller may have under the
insurance policies covering the Property, (iii) Buyer shall receive a credit against the
Purchase Price at Closing for any applicable insurance deductible under the insurance
policy or policies, and (iv) the Purchase Price shall be reduced by an amount equal to the
positive difference between (x) the total costs and expenses to repair all damage arising
from such Casualty, and (y) the total insurance proceeds delivered or assigned to Buyer
as aforesaid under such insurance policies with respect to such Casualty.
(g) If it shall be necessary for either Buyer or Seller to employ an
attorney to enforce its rights pursuant to this Offer, the non-prevailing party shall
reimburse the prevailing party for its actual reasonable attorneys’ fees, and actual
reasonable legal costs and expenses.
(h) This Offer may be signed in counterparts, each of which upon
execution and delivery as prescribed, shall be deemed an original for all purposes.
Photocopies, facsimile transmissions or other such reproductions of this Offer, including
such reproductions of the signatures of the parties hereto, shall be deemed to be the
equivalent of originals.
(i) This Offer shall be null and void unless a copy signed and accepted
by Seller is returned to Buyer, at the address set forth below for notices, on or before
December 31, 2018.
(j) Seller shall not market, solicit, negotiate or otherwise engage with
other potential buyer(s) while this Offer is effective.
(k) Seller and Buyer shall not disclose the terms and conditions
contained in this Offer and shall keep the same confidential, provided that Seller and
Buyer may disclose the terms and conditions of this Offer (i) as required by law, (ii) to
consummate the terms of this Offer, or any financing relating thereto, (iii) to Buyer's or
Seller’s lenders, attorneys, consultants, investors and accountants, or (iv) to Buyer's
prospective purchasers, partners or equity holders.
(l) If the date for Closing or performance of an obligation falls on a
Saturday, Sunday or federal holiday, the date shall be deferred until the next business
day.
(m) Except as otherwise provided herein, no delay or omission to
exercise any right or power accruing upon any default, omission, or failure of
performance hereunder shall impair any right or power or shall be construed to be a
waiver thereof, but any such right and power may be exercised from time to time and as
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40668785v2
often as may be deemed expedient. No waiver, amendment, release, or modification of
this Offer shall be established by conduct, custom, or course of dealing.
(n) This Offer contains the entire agreement of the parties with respect
to the sale and purchase of the Property. All previous and contemporaneous negotiations,
understandings and agreements between the parties hereto, with respect to the transaction
set forth herein, are merged in this instrument, which alone fully and completely
expresses the parties' rights and obligations. No amendments, modifications or changes
shall be binding upon a party unless set forth in a duly executed document.
[Signatures on the following page]
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IN WITNESS WHEREOF, the Buyer has caused this Offer to be executed this 12th day
of February, 2018.
BUYER:
GENERAL CAPITAL ACQUISITIONS, LLC
By: ____________________________________
Name: _________________________________
Its_____________________________________
SELLER:
CITY OF MUSKEGON
By: ____________________________________
Name: _________________________________
Its_____________________________________
Accepted this 12th day of February, 2019.
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EXHIBIT A
Legal Description
[To be attached upon receipt of title insurance commitment]
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40668785v2
Commission Meeting Date: February 12, 2019
Date: February 7, 2019
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: PILOT - Gencap 1021 Jefferson Limited Dividend Housing
Association, LLC
SUMMARY OF REQUEST:
Gencap 1021 Jefferson Limited Dividend Housing Association, LLC is proposing an
affordable housing development at 1021 Jefferson St and is requesting a Payment in Lieu of
Taxes (PILOT) for the project. The development will include 73 residential units and 2,300
sf of commercial space. There will be 55 one-bedroom units and 18 two-bedroom units.
Ten units will be at 30% AMI, nine units will be at 40% AMI, 11 units will be low-income
disability units, 14 units will be at 60% AMI and 29 units will be at 80% AMI. A service
charge of 4% will be imposed, as well as a municipal services fee of 2%.
FINANCIAL IMPACT:
Although the PILOT for the project will be less than the taxes captured for a similar market-
rate project, the situation with this particular property is that the contribution towards the City
will be greater to the City with the development under a PILOT than it is as a vacant lot. In
addition, taxes would apply to the commercial square footage within the building.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached “Contract for Housing Exemption” and “Professional Services
Agreement.”
COMMITTEE RECOMMENDATION:
None
2/7/2019
MUNICIPAL SERVICES AGREEMENT
THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on this
___ day of January, 2019 between GENCAP 1021 JEFFERSON LIMITED DIVIDEND
HOUSING ASSOCIATION, LLC, a Wisconsin limited liability company, with an office at 6938
N Santa Monica Blvd, Fox Point, WI 53217, and its successors and/or assigns (the “Developer”)
and the CITY OF MUSKEGON, 933 Terrace Street, Muskegon, MI 49440 (the “City”) is made
pursuant to the following terms:
RECITALS
A. Developer has acquired an option to purchase a site in the City of Muskegon known
as 1021 Jefferson Street Apartments for the construction of a proposed low-income housing project
(the “Project”).
B. The parties recognize that due to the high concentration of persons residing
at the Project that the City will be providing a higher level and greater amount of Municipal
Services (as defined in this Agreement) to the Project.
C. The City, through its Police and Fire Departments and otherwise, provides
Municipal Services within the City. The Project will have special needs for these types of
Municipal Services and Developer acknowledges that such needs may be greater than
typically situated residential developments.
D. The Developer desires to guarantee that certain Municipal Services will be provided
to the Project during the term that the Payment in Lieu of Tax (hereinafter referred to as the
“Contract for Housing Exemption”) Ordinance for this Project is in place, such Municipal Services
to include, but not be limited to:
1. Emergency services, including police and fire services specifically administered
through the City, and, on public streets and sidewalks, maintenance, repair, snow removal,
and street lighting; also to include other matters as the City deems necessary;
2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;
3. Said municipal services shall be provided in the customary way and in accordance
with all laws, rules and regulations of the United States of America, State of Michigan,
County of Muskegon and City of Muskegon or other applicable jurisdictions or bodies.
(All of the above collectively referred to as “Municipal Services”)
4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.
AGREEMENT
The parties agree as follows:
1. Provision of Services. The City will provide the Municipal Services.
2. Payment. The Developer shall pay a service charge on or before July 1, of each
year during the time the CONTRACT FOR HOUSING EXEMPTION is in effect. (“Municipal
Services Fee”). The Municipal Service Fee shall be two (2%) percent of gross rent potential
annually starting during the calendar year that a unit in the Project is placed in service. The first
year shall be pro-rated based on that portion of the City’s fiscal year (July 1 – June 30) that any
unit is ready to be placed in service.
3. Term. Payment for Municipal Services shall commence during the calendar year
the CONTRACT FOR HOUSING EXEMPTION Ordinance becomes effective and continue for
as long as the CONTRACT FOR HOUSING EXEMPTION is in effect.
4. Audit. Developer shall submit, upon request, a copy of the annual audit of the
Project prepared by independent CPA’s along with the payment of the service charge.
5. Exclusive Benefit. The obligations of the Developer hereunder are imposed
solely and exclusively for the benefit of the City and no other person or entity shall have the
standing to enforce such obligations or be deemed to be beneficiaries of such obligations.
6. Remedies. The Developer agrees that if it does not perform its obligations under
this Agreement the City is entitled to pursue any and all remedies legal or equitable that it is entitled
to under Michigan law. The Developer agrees to be liable for all costs of collection including
reasonable attorney's fees and costs incurred by the City in the enforcement of the terms of this
Agreement.
7. Assignment. Upon the written consent of the City, the Developer may transfer or
assign its rights and obligations under this Agreement to a buyer (“Transferee”) of the Project.
The Transferee must agree to assume the Developer’s obligations under this Agreement and the
Development Agreement which has been executed by the Developer with the City. Upon
assignment and assumption of this Agreement by the Transferee (or an affiliate, as provided
below), the Developer shall be relieved of any further liabilities or obligations accruing under this
Agreement or the Development Agreement. Notwithstanding the foregoing, the Developer may
assign this Agreement, without the written consent of the City, to an affiliate of Developer
(provided that such affiliate agrees to assume the Developer's obligations hereunder and provided
that the Developer and assignee give prior notice of the assignment to the City with evidence that
the assignee has agreed to assume the obligations of the Developer).
8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.
9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:
If to Developer:
GENCAP 1021 JEFFERSON LIMITED DIVIDEND HOUSING ASSOCIATION, LLC
Attn: Joshua Hafron
6938 N. Santa Monica Blvd.
Fox Point, WI 53217
with a copy to:
David Weiss
6938 N. Santa Monica Blvd.
Fox Point, WI 53217
If to the City:
City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440
Every notice must be in writing and sent by one of the following methods:
a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;
b. Certified or registered mail, postage prepaid, return receipt requested, in which case
delivery shall be deemed to occur the day it is officially recorded by the U.S. Postal Service
that is has delivered it to the intended recipient; or
c. Next day delivery by a recognized private delivery service such as Federal Express,
providing proof of mailing and delivery comparable to certified or registered mail, return
receipt requested, in which case delivery shall be deemed to occur upon delivery as
recorded by the delivery service.
Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.
10. No Waiver. No delay, omission, or failure of the City to act under this Agreement
or to insist upon strict compliance with any term and condition of this Agreement, and no custom
or practice of the parties at variance with the terms and conditions of this Agreement shall
constitute a wavier of City’s right to demand exact compliance with this Agreement. No waiver
of any right or remedy of City shall be construed as a bar to or a waiver of any such right or
remedy on any future occasion.
11. Headings. The headings in this Agreement have only been inserted for
convenience and shall not affect the meaning or interpretation of this Agreement. No heading
shall have any legal significance of any nature whatsoever.
12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.
13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all of the parties to this Agreement.
14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.
15. Complete Agreement. This Agreement contains the entire agreement between
the parties and supersedes all prior oral or written representations, negotiations and agreement on
the subject matter stated herein.
{Signatures on next page}
Municipal Services Agreement
Signature Page
IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.
City of Muskegon
Dated: January ___, 2019 By:_______________________
Steve Gawron, Mayor
Dated: January ___, 2019 By: ______________________
Ann Meisch, City Clerk
GENCAP 1021 JEFFERSON LIMITED
DIVIDEND HOUSING ASSOCIATION, LLC,
a Michigan limited liability company
Dated: January ___, 2019 By: GenCap 1021 Jefferson MM, LLC, a
Wisconsin limited liability company, its Sole
Member
By: General Capital Group, Inc, a Wisconsin
corporation, its Manager
By: _____________________
David Weiss, CEO
CITY OF MUSKEGON
CONTRACT FOR HOUSING EXEMPTION
This Agreement between GENCAP 1021 JEFFERSON LIMITED DIVIDEND
HOUSING ASSOCIATION, LLC, a Michigan limited liability company (the “Developer”) and
CITY OF MUSKEGON, 933 Terrace Street, Muskegon, Michigan (the “City”) is made pursuant
to the following terms:
RECITALS
A. The City has adopted Chapter 82, Article II “Taxation” of the City Code of
Ordinances, providing for tax exemption (the “Ordinance and provide for a service charge in lieu
of taxes for a housing project for low income persons and families to be financed with an Federally-
aided Mortgage Loan or an advance or grant from the Authority pursuant to the provisions of the
State Housing Development Authority Act of 1966 (1966 PA 346, as amended; MCL 125.1401,
et seq) (the "Act");
B. It is acknowledged that it is a proper public purpose of the State of Michigan and
its political subdivisions to provide housing for its low-income senior persons and families and to
encourage the development of such housing by providing for a service charge in lieu of property
taxes in accordance with the Act. The City is authorized by this Act to establish or charge the
service charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation
under this Act at any amount it chooses, not to exceed the taxes that would be paid but for this Act.
It is further acknowledged that such housing for low income persons and families is a public
necessity, and as the City will be benefited and improved by such housing, the encouragement of
the same by providing real estate tax exemption for such housing is a valid public purpose. It is
further acknowledged that the continuance of the provisions of this Ordinance for tax exemption
and the service charge in lieu of all ad valorem taxes during the period contemplated in this
Ordinance are essential to the determination of economic feasibility of the housing projects that is
constructed with financing extended in reliance on such tax exemption.
The City acknowledges that the Sponsor (as defined below) has offered, subject to
receipt of an allocation of Low Income Housing Tax Credits and/or receipt of a Mortgage Loan
from the Michigan State Housing Development Authority, to construct/acquire and rehabilitate,
own and operate a housing project identified as 1021 Jefferson Street Apartments on certain
property located at 1021 Jefferson Street in the City (the “Project”) to serve low income persons
and families, and that the Sponsor has offered to pay the City on account of this housing project
an annual service charge for public services in lieu of all ad valorem property taxes.
C. Developer has acquired an option to purchase a site in the City of Muskegon (1021
Jefferson Street) for the construction of a proposed low-income housing project (for the elderly)
as defined in City Section 82-46 of the Ordinance.
D. Developer and an affiliate of Developer, to be formed, have or will enter into an
agreement to form a limited dividend housing association limited liability company to function as
owner of the proposed low-income housing Project. The owning entity to be formed will be
identified as GenCap1021 Jefferson Limited Dividend Housing Association, LLC.
E. The City encourages construction and financing of the said low-income housing
project which is identified by the working name of 1021 Jefferson Street .
F. To further enable and encourage the construction of the housing project, Developer
and the City enter into this Agreement.
G. The legal description of the Project is set forth in Exhibit A attached to this
Agreement.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Definitions.
1.1 “Authority” means the Michigan State Housing Development Authority.
1.2. “Annual Shelter Rent” means the total collections during an agreed annual
period from or paid on behalf of all occupants of a housing project representing rent or
occupancy charges, exclusive of Utilities.
1.3. “Contract Rents” means the total Contract Rents (as defined by the U.S.
Department of Housing and Urban Development in regulations promulgated pursuant to
Section 8 of the U.S. Housing Act of 1937, as amended) received in connection with the
operation of a housing project during an agreed annual period, exclusive of Utilities.
1.4. “Low Income Persons and Families” means persons and families eligible to
move into a housing project.
1.5 “Low Income Housing Tax Credits” means credits allocated under Section
42 of the Internal Revenue Code (“LIHTC”)
1.6. “Mortgage Loan” means a Federally-Aided Mortgage or loan or grant made
or to be made by the Authority to the Sponsor for the construction and/or permanent
financing of the housing project, and secured by a mortgage on the housing project.
1.7. “Sponsor” means General Capital Development, LLC and any entity that
receives or assumes a Mortgage Loan.
1.8. “Utilities” means charges for gas, electric, water, sanitary sewer and other
utilities furnished to the occupants that are paid by the housing project.
2. Grant of Exemption. As contemplated and pursuant to Act 346 of the Public Acts
of 1966, as amended, the State Housing Development Authority (the “Act”), the City hereby grants
an exemption from all ad valorem property taxes attributable to the buildings which consist of
rental units offered to eligible low income senior persons and families as defined by the Authority.
3. Term of Exemption. This exemption shall continue for the period of time the
housing units remain subject to income and rent restrictions pursuant to Section 42 of Internal
Revenue Service Codes of 1986, as amended (IRS Codes), or the Authority Regulatory Agreement
not to exceed 25years. The City agrees to be contractually bound by this Agreement to honor the
exemption status of the proposed project as provided herein and in this Agreement for the entire
period during which the Project is financed by the Authority or receives low income housing tax
credits under Section 42 of the IRS Codes, provided that the said Mortgage Loan or a loan
originally financed by the low income housing tax credits continues outstanding as more
particularly set forth in Section 82-50(3)of the Ordinance, not to exceed 25 years.
4. Responsibilities of the Developer. The Developer agrees to perform the following:
4.1 The Developer shall pay the service charge and payment in lieu of all ad
valorem taxes on or before July 1, of each year during the time the exemption is in effect.
The service charge shall equal four percent (4%) of the rents charged for the total of all
units in the exempt housing project, whether the units are occupied or not and whether or
not the rents are paid.
4.2 The Developer agrees to file all information required by the Ordinance and
further to meet its obligations to the Authority in connection with the Authority’s
administration of the low income housing tax credit program.
4.3 In lieu of the requirement to submit a statement of annual shelter rents
and/or contract rents within 30 days after December 31, as required by the Ordinance,
Developer shall submit an annual audit by April 1st. If not timely filed, and 30 days after
notice to Developer of said delinquency, a penalty of 1.25% of the service charge shall be
imposed. This penalty shall be collectible in the same manner provided in Section 82-54
of the Ordinance.
5. Interpretation of Financing. The City agrees that the use of low income housing
tax credits constitutes financing of the loan by the Authority in fulfillment of the requirements of
Section 82-50(3) of the Ordinance.
6. Contractual Effect of Ordinance. Notwithstanding the provisions of section
15(a)(5) of the Act to the contrary, a contract between the City and the Sponsor with the Authority
as third party beneficiary under the contract, to provide tax exemption and accept payments in lieu
of taxes, as previously described, is effectuated by enactment of this Ordinance.
7. Payment of Service Charge. The annual service charge in lieu of taxes as
determined under this Ordinance shall be payable in the same manner as general property taxes
are payable to the City and distributed to the several units levying the general property tax in the
same proportion as prevailed with the general property tax in the previous calendar year. The
annual payment for each operating year shall be paid on or before April 1st of the following year.
Collection procedures shall be in accordance with the provisions of the General Property Tax Act
(1893 PA 206, as amended; MCL 211.1, et seq).
8. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 3,
the service charge to be paid each year in lieu of taxes for the part of the housing project that is tax
exempt but which is occupied by other than low income persons or families shall be equal to the
full amount of the taxes which would be paid on that portion of the housing project if the housing
project were not tax exempt.
9. Counterparts. This Agreement may be executed in several counterparts and an
executed copy hereof may be relied upon as an original.
10. Binding and Benefit. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, administrators, personal representatives, successors
and assigns.
11. Effective Date. The effective date of this Agreement is the date that Developer or
its assignee completes construction and receives a temporary or permanent certificate of
occupancy from the City for the Property.
12. Severability. The various sections and provisions of this Agreement shall be
deemed to be severable, and should any section or provision of this Agreement be declared by any
court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the
validity of this Agreement as a whole or any section or provision of this Agreement, other than the
section or provision so declared to be unconstitutional or invalid.
13. Inconsistent Ordinances. All ordinances or parts of ordinances inconsistent or in
conflict with the provisions of this Agreement are of no effect to the extent of such inconsistency
or conflict.
14. Choice of Law; Venue. This Agreement is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with the laws of the State of Michigan.
The parties agree that for purposes of any dispute in connection with this Agreement, the
Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and
venue.
IN WITNESS WHEREOF, the parties have signed this Agreement on the following page,
on the dates indicated.
City of Muskegon
Dated: ___________________, 2015 By: _________________________
Steve Gawron, Mayor
Dated: ___________________, 2015 By: _________________________
Ann Meisch, Clerk
GENCAP 1021 JEFFERSON
LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED
PARTNERSHIP, LLC
By: GenCap 1021 Jefferson MM,
LLC, a Wisconsin limited liability
company, its Sole Member
Dated: ___________________, 2015 By: General Capital Group, Inc, a
Wisconsin corporation, its Manager
By: _________________________
David Weiss, CEO
EXHIBIT A
LEGAL DESCRIPTION
CITY OF MUSKEGON REVISED PLAT OF 1903 ALL OF BLOCK 355 EXC LOT 4 AND THE
W 1/2 OF LOT 3