City Commission Packet 01-24-2012

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  CITY OF MUSKEGON
   CITY COMMISSION MEETING
                   JANUARY 24, 2012
 CITY COMMISSION CHAMBERS @ 5:30 P.M.
                           AGENDA

CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
  A. Approval of Minutes. CITY CLERK
  B. North Bank Trail Acquisition Funding Request – Resolution of Support.
     CITY MANAGER
  C. PILOT Request – Bayview Towers – Ordinance.            PLANNING &
     ECONOMIC DEVELOPMENT
  D. PILOT Request – Bayview Towers – Agreement.            PLANNING &
     ECONOMIC DEVELOPMENT
  E. Municipal Vehicle Purchase. PUBLIC WORKS
PUBLIC HEARINGS:
  A. Issuance of a Commercial Rehabilitation Certificate – Lake Welding
     Supply. PLANNING & ECONOMIC DEVELOPMENT
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
  A. Advance Refunding of 2002 LDFA Bonds. FINANCE
  B. Concurrence with the Housing Board of Appeals Notice and Order to
     Demolish the Following: PUBLIC SAFETY
            1467 Terrace Street (Area 11)
            2226 Continental Street
            167 Mason Avenue – Home and Garage (Area 10)
       C. Ward and Precinct Redistricting. CITY CLERK
       D. Use of Explosives for Demolition on Former Sappi Property.                                    CITY
          MANAGER
   ANY OTHER BUSINESS:
   PUBLIC PARTICIPATION:
   Reminder: Individuals who would like to address the City Commission shall do the following:
   Fill out a request to speak form attached to the agenda or located in the back of the room.
    Submit the form to the City Clerk.
   Be recognized by the Chair.
   Step forward to the microphone.
   State name and address.
   Limit of 3 minutes to address the Commission.
   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

   CLOSED SESSION:
   ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD: dial 7-1-1 and request a representative to dial (231) 724-6705.
Date:      January 24, 2012
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Cummings, City Clerk
RE:        Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the January 3rd
Organizational Meeting, the January 9th Worksession Meeting and the
January 10th City Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                            CITY OF MUSKEGON
                        ORGANIZATIONAL MEETING
                        TUESDAY, JANUARY 3, 2012
                       CITY COMMISSION CHAMBERS
                           CITY HALL – 5:30 P.M.

                                     MINUTES
The meeting was called to order by Mayor Warmington at 5:30 p.m. Also present were
Commissioners Turnquist, Hood, Spataro, German, and Gawron, City Manager Bryon
Mazade, and City Clerk Ann Marie Cummings.
Commissioner Wierengo was absent.

The meeting opened with prayer given by Bob Kuhn, followed by the Pledge of
Allegiance.

2012-01

A. Oath of Office Ceremony. Honorable Harold F. Closz III, Chief Judge, 60th District
   Court gave the oath of office to Commissioner Willie German, Jr., Eric Hood,
   Lawrence Spataro, and Byron Turnquist.

B. Election of Vice-Mayor.
   Motion by Commissioner Spataro, second by Commissioner Turnquist to elect
   Steven J. Gawron as Vice Mayor.

   ROLL VOTE:      Ayes: Warmington, Hood, Spataro, German, Gawron, and
                   Turnquist
                   Nays: None
   MOTION PASSES
C. Setting Commission Meetings: 5:30 p.m. – 2nd and 4th Tuesdays each month.
D. Setting Worksession Meetings: 5:30 p.m. – Mondays preceding the 2nd Tuesday
   each month.
   Motion by Vice Mayor Gawron, second by Commissioner Spataro to set the
   City Commission Meetings for 5:30 p.m. the 2nd and 4th Tuesdays of each
   month and the Worksession Meeting for 5:30 p.m. the Mondays preceding the
   2nd Tuesday of each month.
   ROLL VOTE:      Ayes: Hood, Spataro, German, Gawron, Turnquist, and
                   Warmington
                   Nays: None
   MOTION PASSES
E. Appointment of City Manager: Bryon L. Mazade.
   Motion by Commissioner Turnquist, second by Commissioner German to
   appoint Bryon L. Mazade as City Manager.
   ROLL VOTE:      Ayes: Spataro, German, Gawron, Turnquist, Warmington, and
                   Hood
                   Nays: None
   MOTION PASSES
F. Appointment of City Clerk: Ann M. Cummings.
G. Appointment of City Treasurer: Derrick Smith.
H. Appointment of City Auditor: Timothy Paul.
I. Appointment of City Assessor and Deputy Assessors:
      County Equalization Director Donna VanderVries
      Deputy Director Dan VanderKooi
   Motion by Commissioner Spataro, second by Vice Mayor Gawron to appoint
   Ann M. Cummings as City Clerk; Derrick Smith as City Treasurer; Timothy
   Paul as City Auditor; and Donna VanderVries and Dan VanderKooi as City
   Assessor and Deputy Assessor.
   ROLL VOTE:      Ayes: German, Gawron, Turnquist, Warmington, Hood, and
                   Spataro
                   Nays: None
   MOTION PASSES
J. Designation of City Fund Depositories.
      Fifth Third Bank (Main Depository)
      Huntington Bank
      Comerica Bank
      PNC Bank
      Flagstar Bank (CDARS)
   Motion by Vice Mayor Gawron, second by Commissioner Spataro to designate
   the City fund depositories as enumerated.
   ROLL VOTE:      Ayes: Gawron, Turnquist, Warmington, Hood, Spataro, and
                   German
                   Nays: None
   MOTION PASSES
K. Designation of Firm to Act as Legal Counsel: Parmenter-O’Toole.
   Motion by Commissioner Spataro, second by Vice Mayor Gawron to designate
   Parmenter-O’Toole to act as legal counsel for the City of Muskegon.
   ROLL VOTE:       Ayes: Turnquist, Warmington, Hood, Spataro, German, and
                    Gawron
                    Nays: None
   MOTION PASSES
L. New Business: City Manager Bryon Mazade introduced our new Public Safety
   Director Jeffrey Lewis. Mayor Warmington acknowledged County Clerk Nancy
   Waters, County Commissioners Anthony Longmire, Rillastine Wilkins, and Scott
   Plummer who were also in attendance.
   Naming Turnabout at Western and Third.
   Motion by Commissioner Spataro, second by Vice Mayor Gawron to name the
   roundabout at Western and Third as Patricia B. Johnson Circle.
   ROLL VOTE:       Ayes: Warmington, Hood, Spataro, German, Gawron, and
                    Turnquist
                    Nays: None
   MOTION PASSES
Meeting adjourned at 6:03 p.m.

Respectfully submitted,



Ann Marie Cummings, MMC
City Clerk
                                       City of Muskegon
                                 City Commission Worksession
                                        January 9, 2012
                                  City Commission Chambers
                                            5:30 PM

                                           MINUTES

2012-2
Present: Commissioners Warmington, Gawron, Turnquist, Wierengo, German, Spataro, and
Hood.
Absent: None.

Bayview Tower PILOT.
Carl Skrzynski and Rick Rick Pennings are in the process of purchasing the Bayview Towers.
The property currently has a PILOT, which was approved in 1980, as well as Section 8 status for
their 200 elderly designated units. The PILOT arrangement approved by City Commission in
1980 was in effect prior to the current City ordinance and would last as long as the MSHDA
mortgage was in effect, not to exceed fifty years (under the current ordinance, new exemptions
run for a period of up to 25 years). Therefore, if the current mortgage remained in effect, the
PILOT agreement would also remain in effect up until 2030.

Under the current arrangement, Bayview makes an Annual Shelter Rent/Payment in Lieu of
Taxes payment of about $34,000 each year. “Annual Shelter Rent” is defined as the total
collections during an agreed annual period from all occupants of a housing project representing
rents or occupancy charges, exclusive of any charges for gas, electricity heat or other utilities
furnished to the occupants. The Payment in Lieu of Taxes is calculated as 10% of the Annual
Shelter Rent.

Under the current arrangement, Bayview also makes a City Service Charge payment of about
$57,000 each year. The City Service Charge is calculated as 3% of “contract rents”. Therefore,
the total annual payment made by Bayview is approximately $91,000.

Based on the estimated assessed value from the County Equalization Department, without the
property tax exemption, the projected annual property taxes for Bayview Towers would be
approximately $282,900.

Mr. Skrznski is requesting a 41 year exemption period for a PILOT to be approved for his
development. In addition to the PILOT “Contract for Housing Exemption”, the City
Commission must also approve amendments to the current ordinance to allow for the type of
financing proposed by the developer and the number of years for final maturity of the mortgage.

The City Commission will consider this request at their Commission meeting that will be held on
Tuesday, January 24, 2012.

Telephone System.
Jim Maurer, Information Technology Director, informed the Commission that he has been in
negotiations with Central Dispatch to utilize a new telephone system through their fiber-optic
lines. The cost will be approximately $150,000 but it is expected that the City will save
$1,000,000 within 10 years.
This item will be placed on the Commission meeting Tuesday, January 10, 2012 for their
consideration.

City Commission Goal Setting.
The annual Goal Setting meeting was set for Friday, January 20, 2012. (Later it was revised to
January 27, 2012).

Rental Registration/Inspections.
City Manager, Bryon Mazade, suggested that the Rental Registration/Inspections policy be re-
evaluated by staff for unusual situations that have bee brought to his attention.

Staff will re-evaluate the current policy and provide a recommendation to the City Commission
for their consideration.

Adjournment.
Motion by Commissioner Hood, seconded by Vice Mayor Gawron to adjourn at 7:12 p.m.

                                                                          MOTION PASSES



                                                           ________________________
                                                            Ann Marie Cummings, MMC
                                                                 City Clerk
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                    JANUARY 10, 2012
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                MINUTES

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, January 10, 2012.
Mayor Warmington opened the meeting with a prayer from Vice Mayor Gawron
after which the Commission and public recited the Pledge of Allegiance to the
Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Lawrence Spataro, Willie German, Sue Wierengo, Byron Turnquist,
and Eric Hood, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Cummings.
2012-03 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the December 12, 2011,
Worksession Meeting and the December 13, 2011, City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
     B. Control System Annual Software Update/Support. WATER FILTRATION
SUMMARY OF REQUEST: Renewal of the annual customer support for Filtration
Plant operating system with Wonderware North.
FINANCIAL IMPACT: One time cost of $10,597 for 2012.
BUDGET ACTION REQUIRED: None, this item is budgeted.
STAFF RECOMMENDATION: Staff requests authorization to renew the annual
customer support agreement at a budgeted cost of $10,597 for 2012.
     C. S.E.I.U. Unit 1 – Clerical Contract. CITY MANAGER
SUMMARY OF REQUEST:       To approve the negotiated tentative agreement


                                      1
with the S.E.I.U. Unit 1 (Clerical Union).
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the tentative agreement and authorize
the Mayor and Clerk to sign the contract.
      D. S.E.I.U. Unit 2 – DPW Contract. CITY MANAGER
SUMMARY OF REQUEST: To approve the negotiated tentative agreement with
the S.E.I.U. Unit 2 (DPW Union).
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the tentative agreement and authorize
the Mayor and Clerk to sign the contract.
      E. Agreement – Digital Spectrum Enterprises (DSE). CITY CLERK
SUMMARY OF REQUEST: Since May 2005 the City has contracted with Digital
Spectrum Enterprises (DSE) for management of the City’s government access
channel. In exchange for these management rights DSE broadcasts City
Commission meetings at no direct cost to the City. The current agreement with
DSE dates from December 2008 through November 2011.
Proposed is a three-year agreement renewal with DSE. Terms of the agreement
are the same as before.
FINANCIAL IMPACT: This contract entails no direct cost to the City. The City
benefits by having City Commission meetings broadcast at no cost.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of a three-year contract with DSE for
management of the government access channel.
      F. Appointments to Various Boards and Committees. CITY CLERK
SUMMARY OF REQUEST: To approve the appointments as recommended at the
January 9th Community Relations Committee Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the appointments.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the Consent Agenda as presented.
ROLL VOTE: Ayes: German, Gawron, Wierengo, Turnquist, Warmington, Hood,
           and Spataro

                                             2
           Nays: None
MOTION PASSES
2012-04 NEW BUSINESS:
     A. Amendment to the Zoning Ordinance – Allow Second                Hand
        Merchandise in B-2. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Section 1100 of Article
XI of the zoning ordinance to allow second hand merchandise stores as a
principal use permitted in B-2, Convenience and Comparison Business Districts.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their December 15th meeting by a 6 to 1 margin.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the amendment to the zoning ordinance to allow second hand merchandise in
the B-2 district.
ROLL VOTE: Ayes: Gawron, Wierengo, Turnquist, Warmington, Hood, Spataro,
           and German
           Nays: None
MOTION PASSES
     B. Amendment to the Zoning Ordinance – Remove Special Land Uses in
        B-2. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Section 1101 of Article
XI of the zoning ordinance to remove second hand merchandise stores, vintage
shops and antique shops as special land uses permitted in B-2, Convenience
and Comparison Business Districts. This would be necessary if the previous
request is approved.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their December 15th meeting by a 6 to 1 margin.
Motion by Commissioner Spataro, second by Commissioner Wierengo to amend
the zoning ordinance to remove special land uses in section B-2.
ROLL VOTE: Ayes: Wierengo, Turnquist, Warmington, Hood, Spataro, German,


                                      3
               and Gawron
            Nays: None
MOTION PASSES
      C. Telephone System. INFORMATION TECHNOLOGY
SUMMARY OF REQUEST: The City has been collaborating with Muskegon Central
Dispatch, along with other municipalities, to upgrade our municipal telephone
service. The agreement will allow the City to utilize Central Dispatch’s internet
telephone gateway, saving the City a significant amount of money. The new
technology will have many capabilities well beyond our current phone system.
The project, including network upgrade and enhancements, is estimated to cost
$150,000. Projections indicate that the new system will pay for itself within 15 to
25 months by lowering our monthly phone costs from $10,000 to $1,700. The City
could save as much as $1,000,000 within the next ten years with the upgraded
equipment.
FINANCIAL IMPACT: $90,000 is included in the 2011-2012 budget for this project.
Central Dispatch has offered 0% financing over five years which will keep our
FY12 costs well under budget.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposal to upgrade the phone and
network infrastructure for a cost not to exceed $150,000.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the proposal to upgrade the phone network infrastructure for a cost not to
exceed $150,000.
ROLL VOTE: Ayes: Turnquist, Warmington, Hood, Spataro, German, Gawron, and
           Wierengo
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 5:49 p.m.


                                            Respectfully submitted,




                                            Ann Marie Cummings, MMC
                                               City Clerk

                                        4
                            AGENDA ITEM NO. ______________

                      CITY COMMISSION MEETING January 24, 2012



TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       January 12, 2012

RE:         North Bank Trail Acquisition Funding Request - Resolution of Support



SUMMARY OF REQUEST:
To adopt a resolution in support of an application from Crockery Township to the Michigan
Natural Resources Trust Fund for acquisition funds for Phase 2 of the North Bank Trail.



FINANCIAL IMPACT:
None.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the attached resolution.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\RESOLUTION SUPPORT CRKRY TWP NORTH BANK TRL 01212
             RESOLUTION OF APPROVAL TO SUPPORT THE MICHIGAN NATURAL
           RESOURCES TRUST FUND APPLICATION FOR ACQUISTIION OF PROPERTY
             FOR PHASE 2 OF THE NORTH BANK TRAIL IN CROCKERY TOWNSHIP

                                     MUSKEGON CITY COMMISSION
                                          Resolution No. _____________

WHEREAS, the City of Muskegon desires to promote healthy and active lifestyles.

WHEREAS, the City of Muskegon is interested in supporting multi-modal transportation alternatives.

WHEREAS, the City of Muskegon desires to offer safe routes to schools.

WHEREAS, the City of Muskegon desires to offer recreational opportunities to persons with disabilities.

WHEREAS, the City of Muskegon desires to provide an affordable recreation element accessible to all
age groups of the community.

WHEREAS, the City of Muskegon desires to connect and extend Phase 1 of the North Bank Trail to the
Musketawa Trail east of Coopersville.

WHEREAS, the City of Muskegon desires to develop a regional trail system that connects to other regional
trail systems in the area.

WHEREAS, the City of Muskegon desires to promote economic development through tourism activity.

WHEREAS, the City of Muskegon supports preserving historical structures related to former railroad
transportation.

Now, therefore, be it resolved that the City of Muskegon supports the concept of continuous collaboration
for trail maintenance and improvement.

Now, therefore, be it resolved that the City of Muskegon supports the Crockery Township application to
the Michigan Natural Resources Trust Fund for acquisition funds for Phase 2 of the North Bank Trail.

Adopted this 24th day of January, 2012.

Ayes:
Nays:
Abstentions:

                                                BY: ______________________________________
                                                    Stephen J. Warmington, Mayor


                                           ATTEST: ______________________________________
                                                   Ann Marie Cummings, Clerk


                                                  CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on January 24, 2012.


                                                     ______________________________________
                                                     Ann Marie Cummings, Clerk
          Commission Meeting Date: January 24, 2012




Date:        January 17, 2012
To:          Honorable Mayor & City Commission
From:        Planning & Economic Development Department
RE:          PILOT Request- Bayview Towers


SUMMARY OF REQUEST: Carl Skrzynski is Vice President of American Community
Developers, Inc., which has purchased Bayview Towers in Muskegon. There is
currently a PILOT for Bayview Towers which was approved in January 1980. Mr.
Skrzynski intends to keep the existing Section 8 status of the housing development
and is requesting an extension of the PILOT from the City. Since an alternative form
of financing is being sought for this project, not currently included in the PILOT
Ordinance, an amendment is necessary to the Ordinance. In addition, the owner is
requesting the PILOT for a maximum of 40 years and the current Ordinance only
allows for 25 years.

FINANCIAL IMPACT: The Ordinance amendment would allow for a greater number
of years, which would increase the number of years that the City would not receive
full taxes for the property.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: If the City Commission agrees that the PILOT is
necessary for this property, staff recommends that the attached Ordinance
amendment be approved and the Clerk be authorized to sign the necessary
documents.
                            CITY OF MUSKEGON
                        MUSKEGON COUNTY, MICHIGAN
                            ORDINANCE NO. ____



THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:


1. Chapter 82, Article II of the Code of Ordinances of the City of Muskegon, Michigan,
Sections 82-46, 82-50, 82-51 and 82-52 are amended to read as follows:

       Sec. 82-46. Definitions.

               The following words, terms and phrases when used in this division, shall
       have the meanings ascribed to them in this section, except where the context
       clearly indicates a different meaning:

              Authority means the state housing development authority.

                Contract rents means all rents in the housing project expected either
       directly from a tenant or by subsidy, vendor payments or paid by a government or
       other assisting entity on behalf of a tenant to the owner or owner’s designee or
       agent of a housing project. Contract rents include the rental amounts to be
       currently charged for units in the housing project, whether a unit is vacant or not,
       and whether or not the rent is actually paid. Contract rents also include the rentals
       to be paid for additional facilities by tenants, such as carports or garages, and
       further include miscellaneous income, such as income from vending machines or
       laundry equipment. The portion of additional facility rents and miscellaneous
       income to be attributed to contract rents shall be determined by reference to the
       floor plan of the facility which includes and clearly exhibits the housing project
       (therefore the exempt portion of the facility), and the portion of contract rents
       shall be determined by the ratio of the housing project square footage to the entire
       square footage of the facility. The term “contract rents” does not include charges
       for utilities.

               Elderly persons means persons determined by Authority Guidelines,
       Rules, and practices to have attained the age and have the status to constitute them
       as elderly persons.

              Housing project means a residential facility consisting of rental units
       offered to the following persons; it does not mean the portion of any facility
       which is not so occupied:

              (1) Elderly persons as defined in this section.



                                                                                          1
        (2) Low income persons and families as defined by the authority.

      HUD means The United States Department of Housing and Urban
Development.

       Low income persons and families means all low income persons and
families included in the definitions found at section 15a(7) of Public Act No. 346
of 1966 (MCL 125.1415a(7)).

       Mortgage loan means a loan made by the authority or insured by HUD to
the sponsor for the construction and/or permanent financing of a housing project.

        Service charge means the same as payment in lieu of taxes.

       Sponsor means a developer of a housing project. The term “sponsor”
includes an applicant for exemption under this division.

       Utilities means public water, public sanitary sewer, gas or electric service.
The term “utilities” does not include cable or other television services, telephone
or communication utilities or solid waste services.

Sec. 82-50. Housing Projects Eligible.

        The following housing projects shall be eligible for the exemption in the
city:

        (1) Housing projects receiving direct mortgage loans from or insured by
            HUD or the authority for at least 70 percent of the total construction or
            rehabilitation costs of the housing project.

        (2) Housing projects where at least 70 percent of the total construction or
            rehabilitation costs of the housing project come from the proceeds of a
            grant or advance of funds from the authority.

        (3) Housing projects in which at least 70 percent of the total construction
            or rehabilitation costs of the housing project are funded by the net
            proceeds from an authority-aided mortgage loan, but only where the
            authority aid consists of the allocation of tax credits from the authority
            to the applicant for the exemption.

        (4) Housing projects which satisfy all of the following criteria: 1) the
            Project had previously received a project based Section 8 contract
            which is scheduled to expire within one year, 2) the City determines
            that the HAP Contract renewal is in the best interest of the City and
            the residents of Project; 3) the project had previously received tax
            exemption and a PILOT from the city, 4) within two years after the



                                                                                     2
            contract with the city pursuant to the terms hereof, the project
            receives a MSHDA financing commitment, a HUD insured financing
            commitment or a reservation of low income housing tax credits; and
            5) renovations commence within 12 months after receipt of a
            MSHDA financing commitment, a HUD insured financing
            commitment or a reservation of low income housing tax credits.


Sec. 82-51. Payment in lieu of taxes; amount; standards for determination.

        The payments in lieu of taxes to be made by housing projects exempt from
ad valorem taxes under this division are hereby established by the city pursuant to
section 15a of Public Act No. 346 of 1966 (MCL 125.1415a), without regard to
the amounts otherwise set forth in such section of this act. The service charge to
be paid in lieu of taxes by any housing project exempt under this division shall be
determined as follows:

       (1) Amount. Except as provided in 82-51(2)(h), the service charge shall
           be in an amount no less than four percent nor more than 20 percent of
           the contract 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. In no event shall the service charge exceed the
           ad valorem real property taxes which would be paid for the housing
           project if it were not exempt.

       (2) Standards for determining the amount of the payment in lieu of taxes.
           In determining the amount of service charge (not less than the
           minimum) which will be paid the city for a housing project exempt
           under this division the following standards shall guide the city. All
           criteria which apply shall be considered to arrive at the service
           charge:

            a. In the event the housing project or a substantial part thereof is
               located in a rehabilitated structure, for that portion of the project
               found in the rehabilitated structure the city shall establish a lower
               service charge.

            b. In the event the housing project is located in an area of the city
                which is part of a tax increment district and removes taxable
                property from the tax roll, the city shall establish a higher service
                charge.

            c. The city shall consider the number of exempt units as compared to
               nonexempt units which are attached or contiguous to the housing
               project, but which are developed simultaneously with it by the
               same developer. To the extent that nonexempt units, including



                                                                                        3
             units calling for market rents, are included in the development, the
             city shall consider lowering the rate of the service charge on the
             exempt units.

          d. In the event the housing project is proximate to nonsubsidized and
             nonexempt housing which is not part of any project for which the
             developer of the exempt housing project is responsible, the city
             shall establish a higher service charge.

          e. In the event the housing project is eligible for other property tax
             abatements or reductions of any kind, or municipal benefits not
             generally available to residential properties, the city shall establish
             a higher service charge.

          f. In the event the housing project results in an increase in the need
             for public services such as water or sewer extensions, public
             transportation services, additional snow plowing, police and fire
             services, or increased school populations, the city shall establish a
             higher service charge.

          g. In the event the city determines that the housing project will result
             in significantly increased traffic generation or street or highway
             safety problems, the city shall establish a higher service charge.

          h. For a project which meets the criteria of Section 82-50(4) of this
             Ordinance, the service charge may be continued in the amount the
             City had previously determined.

      (3) Property or unit becoming ineligible. In the event any residential unit
          is found to be occupied by persons who are not eligible to occupy
          exempt units under this division, the service charge for that unit,
          prorated, shall equal the general property taxes which would be
          payable (prorata) for that unit. In the event the city determines that
          more than 50 percent of the units in the housing project are occupied
          by such ineligible persons, then the entire housing project shall be
          immediately liable for a service charge in an amount equal to the
          ad valorem property taxes which would otherwise be charged by tax
          bills normally issuing in the year of the city’s determination.




Sec. 82-52. Term of exemption.




                                                                                     4
                Except as provided in (5) below, the exemption term shall begin on the tax
        day of the year in which a final certificate of compliance or occupancy is issued
        by the city, therefore affecting the taxes due in the following year, and shall
        terminate on the happening of any of the following:

                 (1) Refinancing of the authority-aided, or authority or HUD mortgage
                     loan, except to convert from a construction to an end loan.

                 (2) Any violation or default under this division.

                 (3) The day falling 25 years after the effective date of the contract for the
                     exemption required by this division, or the period determined by the
                     contract, whichever is shorter.

                 (4) For exemptions applicable to projects aimed at redeveloping existing
                     multi-family residential housing projects, which receive Michigan
                     State Housing Development Authority approval between October 1,
                     2002 and December 1, 2002, the day falling 35 years after the effective
                     date of the contract for the exemption required by this division, or the
                     period determined by the contract, whichever is shorter.

                 (5) For projects which satisfy the criteria of section 82-50(4) of this
                     Ordinance, the tax exemption shall begin upon acquisition of the
                     Project by the sponsor and shall extend until the final maturity of the
                     Authority-aided or federally-aided mortgage, whichever is longer, but
                     not to exceed 40 years from the closing. If the criteria of Sections 82-
                     50(4) are not met the tax exemption and PILOT shall terminate as
                     provided in the Contract and the sponsor shall be responsible for any
                     other remedies agreed to between the City and sponsor.

2.      This Ordinance is to become effective ten (10) days after adoption.


Ayes:

Nays:

First Reading:

Second Reading:




                                                                                                 5
                                    CERTIFICATE

        The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2012, 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:_______________________, 2012


                                    ________________________________
                                           Ann Marie Cummings, MMC
                                                City Clerk


Publish:      Notice of Adoption to be published once within ten (10) days of final
adoption.




                                                                                          6
          Commission Meeting Date: January 24, 2012




Date:        January 17, 2012
To:          Honorable Mayor & City Commission
From:        Planning & Economic Development Department
RE:          PILOT Request- Bayview Towers


SUMMARY OF REQUEST: Carl Skrzynski is Vice President of American Community
Developers, Inc., which has purchased Bayview Towers in Muskegon. There is
currently a PILOT for Bayview Towers which was approved in January 1980. Mr.
Skrzynski intends to keep the existing Section 8 status of the housing development
and is seeking Low Income Housing Tax Credits through MSHDA. He is requesting
an extension of the PILOT from the City (Contract attached).

FINANCIAL IMPACT: With the current PILOT, the owner of Bayview Towers pays
approximately $91,000 a year (Shelter Rent Payment of $34,000 and City Service
Charge Payment of $57,000). If this property were to return to traditional property
taxes, the owner would pay approximately $282,902 for a year (see attachment).
Therefore, there is a difference of approximately $191,902 a year.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: If the City Commission is favorable to continuing the
PILOT for this property, staff recommends that the attached Contract be approved
and the Mayor and Clerk be authorized to sign the necessary documents.
                            CITY OF MUSKEGON
                      CONTRACT FOR HOUSING EXEMPTION

       This agreement between, Bayview Partners Limited Dividend Housing
Association L.L.C., a Michigan limited liability company, 20250 Harper Avenue, Detroit,
Michigan 48225 (referred to as “Developer”) and CITY OF MUSKEGON, 933 Terrace
Street, Muskegon, MI (“City”) is made pursuant to the following terms:

Recitals:

       A.    Developer acquired on January 3, 2012 and plans to rehabilitate a low
             income housing project in the City of Muskegon as defined in City
             Ordinance 2-6(e)(3), (the “Project”).

       B.    The Project has previously been financed by a federal Section 8 project-
             based contract (“HAP Contract”) which is scheduled to expire at the end of
             2012.

       C.    The City and the residents will benefit from continuation of the HAP
             Contract and renovation of the Project by a new owner.

       D.    The Developer (or an affiliated entity) plans to apply for Low Income
             Housing Tax Credits through the MSHDA competitive process and for
             HUD insured financing in 2012.

       E.    Developer has been formed as a limited dividend housing association
             limited liability company to function as owner of the Project. In order to
             access acquisition credits under the Low Income Housing Tax Credit
             program, a transfer of ownership will be needed.

       F.    The City encourages rehabilitation and financing of the Project which is
             currently identified by the working name of Bayview Tower.

       G.    To further enable and encourage the acquisition and rehabilitation of the
             Project, Developer and the City enter into this agreement.

       H.    The preliminary legal description of the Project is set forth in Exhibit A
             attached to this agreement.

       THEREFORE, the parties agree as follows:

       1.    Grant of Exemption. As contemplated and pursuant to Act 346 of the
Public Acts of 1966, the State Housing Development Act (the “Act”), the City hereby
grants an exemption from all property taxes attributable to the portion of the building
which consists of rental units offered to Elderly/Handicapped/Disabled persons and
Elderly/Handicapped/Disabled families of low and moderate income as defined by the



                                                                                     1
Michigan State Housing Development Authority (the “Authority”) or the US Department
of Housing and Urban Development (“HUD”).

       2.    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 the Internal Revenue Service Code of 1986 or the Authority or HUD Regulatory
Agreement, not to exceed 40 years from and after the first day of the tax year following
the year in which the housing project is acquired. The City agrees to be contractually
bound by this agreement to honor the exemption status of the proposed project as
provided therein and in this agreement for the entire period during which the Project is
financed by a loan made by the Authority or a loan that is a federally-aided mortgage
under the Act or receives low income housing tax credits under Section 42 of the
Internal Revenue Code of 1986, as amended, provided that the said loan continues to
be outstanding and not in default as more particularly set forth in Section 2-6 of the
Ordinance, not to exceed 40 years and provided the Developer satisfies the
requirements of Section 3.1 below.

        Should the Developer fail to satisfy the requirements of Section 3.1 below, City
may terminate this Contract and, upon termination, Developer agrees that it owes to the
taxing jurisdiction and shall pay to the City the difference between the amount that
would have been paid in taxes if this Contract were not executed and the amount
actually paid pursuant to Section 3.2 below for calendar years 2013 and following
absent some later modifications by the City of its requirements. Such an amount shall
be a lien on the property.

       3.          Responsibilities of the Developer. The Developer agrees to perform the
following:

             3.1       Within two calendar years following the Effective Date of this
                       Agreement, the Developer and/or a Related Developer, as described
                       hereinafter, shall obtain a reservation of low income housing tax
                       credits, or an Authority loan commitment or a HUD-insured loan
                       commitment. Renovations must commence within 12 months after
                       the low income housing tax credit reservation or the Authority or HUD
                       insured loan commitment is obtained and must be completed within
                       18 months after they commence.

             3.2       The Developer shall pay the service charge and payment in lieu of
                       taxes using the same manner and method for calculating such as the
                       previous Owner paid, with Developer’s payment being made in a
                       timely manner (on or before July 1 of each year during the time the
                       exemption is in effect). For said purposes, the Developer recognizes
                       and will abide by all of the collection provisions of the Ordinance,
                       including without limitation, the acceptance of the lien provisions
                       status of the payment in lieu of taxes in the event of default as set
                       forth in 2-6(h), (i), and (j) of the Ordinance. The service charge shall



                                                                                             2
                 equal three (3%) percent of the contract 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.

      3.3        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.          Term. This agreement shall continue in effect for the entire period of
            eligibility for the exemption as set forth in the Ordinance. The City
            considers itself bound by this agreement for the entire term hereof.

5.          Interpretation of Financing. The City agrees that the financing of the
            Project by the use of tax credits constitutes financing of the loan by the
            Authority and that financing of the Project by use of a HUD insured loan
            means financing by a federally-aided loan, in fulfillment of the
            requirements of Section 2-6(e)(3) of the Ordinance.

6.          Third Party Beneficiary. This agreement shall benefit the Developer, a
            related Developer in the event of a transfer to a new owner related to the
            Developer, the Authority, and/or HUD, or such other mortgagee as may
            have financed the Project which may enforce this agreement, both as its
            interest may appear, and on behalf of the Developer and its successors
            and assigns. No other party is a beneficiary under this agreement.

7.          Counterparts. This agreement may be executed in several counterparts
            and an executed copy hereof may be relied upon as an original.

8.          Binding and Benefit. This agreement shall be binding upon the parties
            hereto and their respective heirs, administrators, personal representatives,
            successors and assigns.

9.          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.

10.         Effective Date. The effective date of this agreement is _____________.




                                                                                      3
                  IN WITNESS WHEREOF, the parties have signed this agreement on the
        dates indicated below.


                                                                CITY OF MUSKEGON


        Dated: ______________                           By: _______________________________
                                                                  Stephen J. Warmington, Mayor



        Dated: ______________                           By: _______________________________
                                                                   Ann Marie Cummings, Clerk



                                                                DEVELOPER:


                                                        Bayview Partners Limited Dividend Housing
                                                        Association, L.L.C., a Michigan limited liability
                                                        company

                                                        By: American Community Developers Inc.,
                                                             a Michigan corporation
                                                        Its: Managing Member


        Dated: ______________                           By: _________________________________
                                                                      Gerald A. Krueger, President




I:\KLG\American Communities\Bayview Tower\CITY OF MUSKEGON CONTRACT FOR HOUSING EXEMPTION.doc




                                                                                                       4
Date:      1/24/2012
To:        Honorable Mayor and City Commission
From:      DPW
RE:        MUNICIPAL VEHICLE PURCHASE




SUMMARY OF REQUEST: Authorize staff to purchase new municipal vehicle
and snow blower From Fredrickson Equipment who was the lowest
responsible bidder. See bid tabulation. This machine will replace unit #50233.


FINANCIAL IMPACT: $95,740.00


BUDGET ACTION REQUIRED: None. This price is within what the Equipment
division has budgeted.


STAFF RECOMMENDATION: Authorize staff to purchase new municipal
vehicle and snow blower from Fredrickson Equipment.
Date:      01/18/12

                      2012 Municiple Vehicle                                Name of Bidder          Name of bidder       Name of Bidder
Requisition:


                                                             Vendor      Fredrickson Equip.        Southeastern Eqip. Bell Equipment
                                                             Telephone   (616)949-2385             (517)694-0471      (866)597-0716
                                                             Location    Wyoming,Mi                Holt,Mi            Lake Orion,Mi
                                                             Quoted by   Todd Fredrickson          Rod House            Wayne Demchinski




          Quantity Description                                                   Price                   Price                Price

          One(1)      2012 Municiple vehicle                                          $88,500.00          $90,262.00            $98,860.00

                      2012 51" Snow Blower                                             $7,240.00            $7,271.00            $7,270.00




                      TOTAL BID                                                       $95,740.00          $97,533.00           $106,130.00

                                                                         Lowest bid                       $95,740.00
                      Joe Buckingham, Equipment Supervisor
Bid Requested by:
Date: January 24, 2012
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Advance Refunding of 2002 LDFA Bonds


SUMMARY OF REQUEST: In 2002 the LDFA issued bonds in the amount of
$4,725,000 to finance construction of the MAREC building. Repayment of the bonds
was to come from tax increment revenues generated by anticipated development on
the Smart Zone site. The City’s full faith and credit was pledged and the Community
Foundation for Muskegon County also pledged an annual contribution of up to
$75,000 (through 2016) to be used in the event tax increment revenues fell short.

The bonds were intentionally structured with no/low principal payments during the
first ten years to provide time for development and tax increments to grow.
Unfortunately, this has not occurred to the extent hoped for. In recent years, the City
has contributed $100,000 annually and the full $75,000 CFFMC pledge has been
needed to meet debt service requirements. Starting with FY 2012-13, the City’s
annual contribution will at least double and remain at high levels until significant,
taxable development occurs.

The bonds were issued with a ten year call provision and 2012 is the first opportunity
to exercise this call. Fortunately, refunding the bonds under current market
conditions makes economic sense (see table on next page and full refunding
analysis include in packet).

FINANCIAL IMPACT: Refunding the LDFA bonds is expected to save $361,045
over the remaining life (about $25,000/year). Present value savings are estimated at
$304,165, or about 7% of the outstanding bond principal.

BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the advance refunding of LDFA
bonds.

COMMITTEE RECOMMENDATION: The LDFA Board will review and act on
the proposed refunding at their January 19th meeting.
z Page 2
                                                             Resolution Pledging Limited Tax Full Faith and Credit in Support of
                                                               Local Development Finance Authority of the City of Muskegon
                                                                      Local Development Refunding Bonds, Series 2012
                                                                              (Limited Tax General Obligation)

                                                                                        City of Muskegon
                                                                              County of Muskegon, State of Michigan


                                                    Minutes of a regular meeting of the City Commission the City of Muskegon, County of
                                              Muskegon, State of Michigan, held on the 24th day of January, 2012.

                                              PRESENT:       Members _______________________________________________________________

                                              ___________________________________________________________________________________

                                              ABSENT:        Members _______________________________________________________________

                                                     The following preamble and resolution were offered by Member ____________________ and
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.




                                              supported by Member ____________________:

                                                     WHEREAS, the Local Development Finance Authority of the City of Muskegon, County of
                                              Muskegon, State of Michigan (the “Authority”) has previously issued its Local Development Bonds,
                                              Series 2002 (Limited Tax General Obligation), dated November 1, 2002 (the “Prior Bonds”) for the
                                              purpose of paying part of the cost to acquire, construct, furnish and equip the Technology Center for
                                              Grand Valley State University in the Authority’s Muskegon Lakeshore SmartZone District; and

                                                     WHEREAS, Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”), and Act 281, Public
                                              Acts of Michigan, 1996, as amended (“Act 281”), permit the Authority to refund on a current or
                                              advance basis all or part of the outstanding securities of the Authority; and

                                                     WHEREAS, the Authority proposes to issue its Local Development Refunding Bonds, Series
                                              2012 (Limited Tax General Obligation) in the principal amount of not to exceed Four Million Seven
                                              Hundred Fifty Thousand Dollars ($4,750,000), (the "Bonds") to pay the costs of refunding all or a
                                              portion of the Prior Bonds to achieve debt service savings; and

                                                     WHEREAS, the Authority has adopted a resolution authorizing the issuance of the Bonds in
                                              accordance with the provisions of Act 281 and Act 34; and

                                                      WHEREAS, pursuant to Section 14(2) of Act 281, the City had previously pledged its limited
                                              tax full faith and credit as additional security for the payment of the Prior Bonds and it is necessary to
                                              confirm that pledge as additional security for the Bonds.

                                                     NOW, THEREFORE, BE IT RESOLVED THAT:

                                                      1.     Limited Tax Pledge. The City hereby irrevocably pledges its limited tax full faith and
                                              credit and resources to the payment of the Bonds to be issued in the principal amount of not to exceed
                                              Four Million Seven Hundred Fifty Thousand Dollars ($4,750,000). If at any time the Debt Retirement
                                              Fund for the Bonds (as that Fund is established by the Authority) is insufficient to pay the principal of
                                              and interest on the Bonds as the same become due, the City upon notification by the Authority’s
                                              Treasurer, shall as a first budget obligation advance from its available funds a sufficient amount to pay
                                              said principal and interest, or in the event of insufficiency of the City’s general funds, levy ad valorem
                                              taxes on all taxable property within the boundaries of the City in an amount sufficient to pay said
                                              principal and interest, providing such tax levy shall be within applicable constitutional, statutory and
                                              charter tax rate limitations.

                                                      2.      Tax Covenant; Qualified Tax Exempt Obligations. The City hereby covenants to take all
                                              action within its control to the extent permitted by law necessary to maintain the exclusion of the interest
                                              on the Bonds from gross income for federal income tax purposes under the Internal Revenue Code of
                                              1986, as amended (the “Code”), including but not limited to, actions relating to the rebate of arbitrage
                                              earnings and the expenditure and investment of proceeds of the Bonds and moneys deemed to be
                                              proceeds of the Bonds. The Bonds are hereby authorized to be designated as “qualified tax exempt
                                              obligations” for the purpose of deduction of interest expense by financial institutions pursuant to the
                                              Code.
                                                      3.      Authorization for Further Actions. The City Manager and Finance Director and other
                                              officers, agents and employees of the City are each authorized and directed to take all other actions
                                              necessary or advisable, and to make such other filings, applications or request for waivers with the
MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.




                                              Michigan Department of Treasury or with other parties, to enable the sale and delivery of the Bonds.

                                                     4.      Conflict; Rescission. All resolutions and parts of resolutions insofar as they conflict with
                                              the provisions of this resolution be and the same hereby are rescinded.

                                              RESOLUTION DECLARED ADOPTED.


                                              AYES: _________________________________________________________________________

                                                         _________________________________________________________________________

                                              NAYS: __________________________________________________________________________



                                                                                                   ______________________________
                                                                                                   City Clerk


                                                      I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the City
                                              Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a regular meeting
                                              held on January 24, 2012, and that said meeting was conducted and public notice of said meeting was
                                              given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of
                                              Michigan, 1976, and that the minutes of said meeting were kept and will be or have been made available
                                              as required by said Act.

                                                                                                   ______________________________
                                                                                                   City Clerk
                                              19,764,958.1\063684-00040



                                                                                                  -2-
                                                         TABLE OF CONTENTS

                                        Local Development Finance Authority of the City of Muskegon
                                              Local Development Refunding Bonds, Series 2012
                                                     (Limited Tax General Obligation)
                                                      Refunding of 2002 LDFA Bonds

            Report                                                                                    Page

            Sources and Uses of Funds      ............................                                1

            Bond Pricing    ..................................                                         2

            Bond Summary Statistics     .............................                                  3

            Bond Debt Service     ................................                                     4

            Savings    ....................................                                            5

            Summary of Refunding Results      ...........................                              6

            Prior Bond Debt Service     .............................                                  7

            Summary of Bonds Refunded         ...........................                              8

            Unrefunded Bond Debt Service       ..........................                              9

            Escrow Descriptions    ...............................                                    10

            Escrow Cost     ..................................                                        11

            Escrow Cash Flow      ................................                                    12

            Escrow Sufficiency     ...............................                                    13

            Escrow Statistics     ................................                                    14

            Proof of Composite Escrow Yield    ..........................                             15




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.
                                                    SOURCES AND USES OF FUNDS

                                        Local Development Finance Authority of the City of Muskegon
                                              Local Development Refunding Bonds, Series 2012
                                                     (Limited Tax General Obligation)
                                                      Refunding of 2002 LDFA Bonds

                                                Dated Date              03/01/2012
                                                Delivery Date           03/01/2012


                                Sources:

                                Bond Proceeds:
                                    Par Amount                                        4,365,000.00

                                Other Sources of Funds:
                                    Prior Debt Service Fund                              61,149.17

                                                                                      4,426,149.17


                                Uses:

                                Refunding Escrow Deposits:
                                    Cash Deposit                                              0.76
                                    SLGS Purchases                                    4,326,457.00
                                                                                      4,326,457.76

                                Delivery Date Expenses:
                                     Cost of Issuance                                    53,750.00
                                     Underwriter's Discount                              43,650.00
                                                                                         97,400.00

                                Other Uses of Funds:
                                    Rounding Amount                                       2,291.41

                                                                                      4,426,149.17




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                 Page 1
                                                           BOND PRICING

                                      Local Development Finance Authority of the City of Muskegon
                                            Local Development Refunding Bonds, Series 2012
                                                   (Limited Tax General Obligation)
                                                    Refunding of 2002 LDFA Bonds

                                           Maturity
                 Bond Component             Date              Amount          Rate       Yield        Price

                 Serial Bonds Due 2025:
                                          11/01/2013          295,000      1.300%      1.300%       100.000
                                          11/01/2014          355,000      1.500%      1.500%       100.000
                                          11/01/2015          370,000      1.700%      1.700%       100.000
                                          11/01/2016          380,000      1.900%      1.900%       100.000
                                          11/01/2017          385,000      2.050%      2.050%       100.000
                                          11/01/2018          400,000      2.200%      2.200%       100.000
                                          11/01/2019          410,000      2.400%      2.400%       100.000
                                          11/01/2020          410,000      2.600%      2.600%       100.000
                                          11/01/2021          255,000      2.800%      2.800%       100.000
                                          11/01/2022          260,000      3.000%      3.000%       100.000
                                          11/01/2023          270,000      3.150%      3.150%       100.000
                                          11/01/2024          280,000      3.350%      3.350%       100.000
                                          11/01/2025          295,000      3.550%      3.550%       100.000

                                                            4,365,000


                               Dated Date                               03/01/2012
                               Delivery Date                            03/01/2012
                               First Coupon                             11/01/2012

                               Par Amount                            4,365,000.00
                               Original Issue Discount

                               Production                            4,365,000.00    100.000000%
                               Underwriter's Discount                  -43,650.00     -1.000000%

                               Purchase Price                        4,321,350.00     99.000000%
                               Accrued Interest

                               Net Proceeds                          4,321,350.00




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                         Page 2
                                                      BOND SUMMARY STATISTICS

                                       Local Development Finance Authority of the City of Muskegon
                                             Local Development Refunding Bonds, Series 2012
                                                    (Limited Tax General Obligation)
                                                     Refunding of 2002 LDFA Bonds

                                  Dated Date                                            03/01/2012
                                  Delivery Date                                         03/01/2012
                                  Last Maturity                                         11/01/2025

                                  Arbitrage Yield                                       2.660561%
                                  True Interest Cost (TIC)                              2.814070%
                                  Net Interest Cost (NIC)                               2.822937%
                                  All-In TIC                                            3.006038%
                                  Average Coupon                                        2.686871%

                                  Average Life (years)                                         7.349
                                  Duration of Issue (years)                                    6.627

                                  Par Amount                                          4,365,000.00
                                  Bond Proceeds                                       4,365,000.00
                                  Total Interest                                        861,948.33
                                  Net Interest                                          905,598.33
                                  Total Debt Service                                  5,226,948.33
                                  Maximum Annual Debt Service                           473,797.50
                                  Average Annual Debt Service                           382,459.63

                                  Underwriter's Fees (per $1000)
                                   Average Takedown
                                   Other Fee                                             10.000000

                                  Total Underwriter's Discount                           10.000000

                                  Bid Price                                              99.000000


                                                                Par                  Average        Average          PV of 1 bp
         Bond Component                                       Value          Price   Coupon            Life             change

         Serial Bonds Due 2025                       4,365,000.00       100.000      2.687%            7.349           2,812.40

                                                     4,365,000.00                                      7.349           2,812.40


                                                                                           All-In                 Arbitrage
                                                                      TIC                   TIC                      Yield

             Par Value                                        4,365,000.00           4,365,000.00              4,365,000.00
              + Accrued Interest
              + Premium (Discount)
              - Underwriter's Discount                          -43,650.00             -43,650.00
              - Cost of Issuance Expense                                               -53,750.00
              - Other Amounts

             Target Value                                     4,321,350.00           4,267,600.00              4,365,000.00

             Target Date                                       03/01/2012             03/01/2012                03/01/2012
             Yield                                             2.814070%              3.006038%                 2.660561%



Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                                             Page 3
                                                            BOND DEBT SERVICE

                                        Local Development Finance Authority of the City of Muskegon
                                              Local Development Refunding Bonds, Series 2012
                                                     (Limited Tax General Obligation)
                                                      Refunding of 2002 LDFA Bonds

                             Period
                             Ending             Principal        Coupon           Interest     Debt Service

                           11/01/2012                                           68,773.33        68,773.33
                           11/01/2013            295,000         1.300%        103,160.00       398,160.00
                           11/01/2014            355,000         1.500%         99,325.00       454,325.00
                           11/01/2015            370,000         1.700%         94,000.00       464,000.00
                           11/01/2016            380,000         1.900%         87,710.00       467,710.00
                           11/01/2017            385,000         2.050%         80,490.00       465,490.00
                           11/01/2018            400,000         2.200%         72,597.50       472,597.50
                           11/01/2019            410,000         2.400%         63,797.50       473,797.50
                           11/01/2020            410,000         2.600%         53,957.50       463,957.50
                           11/01/2021            255,000         2.800%         43,297.50       298,297.50
                           11/01/2022            260,000         3.000%         36,157.50       296,157.50
                           11/01/2023            270,000         3.150%         28,357.50       298,357.50
                           11/01/2024            280,000         3.350%         19,852.50       299,852.50
                           11/01/2025            295,000         3.550%         10,472.50       305,472.50

                                               4,365,000                       861,948.33      5,226,948.33




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                         Page 4
                                                                  SAVINGS

                                      Local Development Finance Authority of the City of Muskegon
                                            Local Development Refunding Bonds, Series 2012
                                                   (Limited Tax General Obligation)
                                                    Refunding of 2002 LDFA Bonds

                                                                                                              Present Value
                                   Prior          Prior            Prior       Refunding                      to 03/01/2012
              Date          Debt Service       Receipts   Net Cash Flow      Debt Service         Savings    @ 3.0060384%

           11/01/2012        183,447.50      61,149.17        122,298.33       68,773.33         53,525.00        52,618.01
           11/01/2013        423,447.50                       423,447.50      398,160.00         25,287.50        24,634.86
           11/01/2014        479,087.50                       479,087.50      454,325.00         24,762.50        23,387.50
           11/01/2015        486,735.00                       486,735.00      464,000.00         22,735.00        20,835.27
           11/01/2016        488,572.50                       488,572.50      467,710.00         20,862.50        18,548.75
           11/01/2017        489,462.50                       489,462.50      465,490.00         23,972.50        20,585.99
           11/01/2018        494,375.00                       494,375.00      472,597.50         21,777.50        18,137.46
           11/01/2019        498,062.50                       498,062.50      473,797.50         24,265.00        19,538.25
           11/01/2020        485,485.00                       485,485.00      463,957.50         21,527.50        16,805.26
           11/01/2021        322,085.00                       322,085.00      298,297.50         23,787.50        17,961.41
           11/01/2022        320,355.00                       320,355.00      296,157.50         24,197.50        17,706.57
           11/01/2023        323,165.00                       323,165.00      298,357.50         24,807.50        17,593.45
           11/01/2024        324,585.00                       324,585.00      299,852.50         24,732.50        16,998.74
           11/01/2025        330,277.50                       330,277.50      305,472.50         24,805.00        16,522.64

                           5,649,142.50      61,149.17      5,587,993.33     5,226,948.33    361,045.00          301,874.16


                                                           Savings Summary


                                  PV of savings from cash flow                      301,874.16
                                  Plus: Refunding funds on hand                       2,291.41

                                  Net PV Savings                                    304,165.57




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                                         Page 5
                                                SUMMARY OF REFUNDING RESULTS

                                       Local Development Finance Authority of the City of Muskegon
                                             Local Development Refunding Bonds, Series 2012
                                                    (Limited Tax General Obligation)
                                                     Refunding of 2002 LDFA Bonds


                         Dated Date                                                          03/01/2012
                         Delivery Date                                                       03/01/2012
                         Arbitrage yield                                                     2.660561%
                         Escrow yield                                                        0.070348%

                         Bond Par Amount                                                   4,365,000.00
                         True Interest Cost                                                  2.814070%
                         Net Interest Cost                                                   2.822937%
                         All-In TIC                                                          3.006038%
                         Average Coupon                                                      2.686871%
                         Average Life                                                             7.349

                         Par amount of refunded bonds                                      4,145,000.00
                         Average coupon of refunded bonds                                    4.566675%
                         Average life of refunded bonds                                           7.623

                         PV of prior debt to 03/01/2012 @ 3.006038%                        4,630,623.33
                         Net PV Savings                                                      304,165.57
                         Percentage savings of refunded bonds                                7.338132%
                         Percentage savings of refunding bonds                               6.968283%




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                     Page 6
                                                      PRIOR BOND DEBT SERVICE

                                        Local Development Finance Authority of the City of Muskegon
                                              Local Development Refunding Bonds, Series 2012
                                                     (Limited Tax General Obligation)
                                                      Refunding of 2002 LDFA Bonds

                             Period
                             Ending             Principal       Coupon            Interest     Debt Service

                           11/01/2012                                          183,447.50       183,447.50
                           11/01/2013            240,000         3.900%        183,447.50       423,447.50
                           11/01/2014            305,000         4.050%        174,087.50       479,087.50
                           11/01/2015            325,000         4.050%        161,735.00       486,735.00
                           11/01/2016            340,000         4.150%        148,572.50       488,572.50
                           11/01/2017            355,000         4.250%        134,462.50       489,462.50
                           11/01/2018            375,000         4.350%        119,375.00       494,375.00
                           11/01/2019            395,000         4.450%        103,062.50       498,062.50
                           11/01/2020            400,000         4.600%         85,485.00       485,485.00
                           11/01/2021            255,000         4.600%         67,085.00       322,085.00
                           11/01/2022            265,000         4.600%         55,355.00       320,355.00
                           11/01/2023            280,000         4.850%         43,165.00       323,165.00
                           11/01/2024            295,000         4.850%         29,585.00       324,585.00
                           11/01/2025            315,000         4.850%         15,277.50       330,277.50

                                               4,145,000                     1,504,142.50      5,649,142.50




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                         Page 7
                                                   SUMMARY OF BONDS REFUNDED

                                      Local Development Finance Authority of the City of Muskegon
                                            Local Development Refunding Bonds, Series 2012
                                                   (Limited Tax General Obligation)
                                                    Refunding of 2002 LDFA Bonds

                                        Maturity          Interest               Par       Call          Call
                       Bond              Date                Rate             Amount       Date         Price

                Lcoal Development Bonds, Series 2002 (Limited Tax General Obligation):
                       BOND25         11/01/2013         3.900%           240,000.00     11/01/2012   100.000
                                      11/01/2014         4.050%           305,000.00     11/01/2012   100.000
                                      11/01/2015         4.050%           325,000.00     11/01/2012   100.000
                                      11/01/2016         4.150%           340,000.00     11/01/2012   100.000
                                      11/01/2017         4.250%           355,000.00     11/01/2012   100.000
                                      11/01/2018         4.350%           375,000.00     11/01/2012   100.000
                                      11/01/2019         4.450%           395,000.00     11/01/2012   100.000
                                      11/01/2020         4.600%           400,000.00     11/01/2012   100.000
                                      11/01/2021         4.600%           255,000.00     11/01/2012   100.000
                                      11/01/2022         4.600%           265,000.00     11/01/2012   100.000
                                      11/01/2023         4.850%           280,000.00     11/01/2012   100.000
                                      11/01/2024         4.850%           295,000.00     11/01/2012   100.000
                                      11/01/2025         4.850%           315,000.00     11/01/2012   100.000

                                                                         4,145,000.00




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                           Page 8
                                                 UNREFUNDED BOND DEBT SERVICE

                                        Local Development Finance Authority of the City of Muskegon
                                              Local Development Refunding Bonds, Series 2012
                                                     (Limited Tax General Obligation)
                                                      Refunding of 2002 LDFA Bonds

                               Period                                                               Debt
                               Ending             Principal        Coupon         Interest        Service

                             11/01/2012            180,000         4.000%           7,200        187,200

                                                   180,000                          7,200        187,200




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                       Page 9
                                                        ESCROW DESCRIPTIONS

                                       Local Development Finance Authority of the City of Muskegon
                                             Local Development Refunding Bonds, Series 2012
                                                    (Limited Tax General Obligation)
                                                     Refunding of 2002 LDFA Bonds

                        Type of      Type of                Maturity    First Int             Par            Max
                        Security     SLGS                    Date       Pmt Date           Amount     Rate   Rate

             Mar 1, 2012:
                        SLGS         Certificate          05/01/2012   05/01/2012            91,723
                        SLGS         Certificate          11/01/2012   11/01/2012         4,234,734 0.070% 0.070%

                                                                                          4,326,457


                                                               SLGS Summary


                               SLGS Rates File                                          03JAN12
                               Total Certificates of Indebtedness                    4,326,457.00




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                               Page 10
                                                                ESCROW COST

                                         Local Development Finance Authority of the City of Muskegon
                                               Local Development Refunding Bonds, Series 2012
                                                      (Limited Tax General Obligation)
                                                       Refunding of 2002 LDFA Bonds

                              Type of          Maturity                    Par                              Total
                              Security          Date                    Amount        Rate                  Cost

                              SLGS            05/01/2012              91,723                         91,723.00
                              SLGS            11/01/2012           4,234,734 0.070%               4,234,734.00

                                                                   4,326,457                      4,326,457.00


                                      Purchase               Cost of         Cash                  Total
                                        Date               Securities      Deposit           Escrow Cost

                                     03/01/2012            4,326,457           0.76          4,326,457.76

                                                           4,326,457           0.76          4,326,457.76




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                               Page 11
                                                           ESCROW CASH FLOW

                                       Local Development Finance Authority of the City of Muskegon
                                             Local Development Refunding Bonds, Series 2012
                                                    (Limited Tax General Obligation)
                                                     Refunding of 2002 LDFA Bonds

                                                                                                  Net Escrow
                             Date                       Principal            Interest               Receipts

                          05/01/2012                   91,723.00                                    91,723.00
                          11/01/2012                4,234,734.00            1,989.74             4,236,723.74

                                                    4,326,457.00            1,989.74             4,328,446.74


                                                            Escrow Cost Summary


                                    Purchase date                                   03/01/2012
                                    Purchase cost of securities                   4,326,457.00




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                           Page 12
                                                        ESCROW SUFFICIENCY

                                      Local Development Finance Authority of the City of Muskegon
                                            Local Development Refunding Bonds, Series 2012
                                                   (Limited Tax General Obligation)
                                                    Refunding of 2002 LDFA Bonds

                                           Escrow            Net Escrow                Excess        Excess
                  Date                 Requirement             Receipts               Receipts      Balance

               03/01/2012                                           0.76                  0.76         0.76
               05/01/2012                91,723.75             91,723.00                 -0.75         0.01
               11/01/2012             4,236,723.75          4,236,723.74                 -0.01

                                      4,328,447.50          4,328,447.50                  0.00




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                         Page 13
                                                         ESCROW STATISTICS

                                      Local Development Finance Authority of the City of Muskegon
                                            Local Development Refunding Bonds, Series 2012
                                                   (Limited Tax General Obligation)
                                                    Refunding of 2002 LDFA Bonds

                                 Modified        Yield to            Yield to          Perfect      Value of
                       Total     Duration        Receipt        Disbursement           Escrow       Negative       Cost of
Escrow           Escrow Cost      (years)           Date                Date             Cost       Arbitrage   Dead Time

PRIOR               61,149.17       0.167                                            60,880.40         268.77
BP               4,265,308.59       0.663    0.070348%            0.070348%       4,193,166.14      72,142.45

                 4,326,457.76                                                     4,254,046.54      72,411.22        0.00


                                              Delivery date              03/01/2012
                                              Arbitrage yield            2.660561%




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                                                   Page 14
                                               PROOF OF COMPOSITE ESCROW YIELD

                                      Local Development Finance Authority of the City of Muskegon
                                            Local Development Refunding Bonds, Series 2012
                                                   (Limited Tax General Obligation)
                                                    Refunding of 2002 LDFA Bonds

                                               All restricted escrows funded by bond proceeds


                                                                                   Present Value
                                                                     Security      to 03/01/2012
                                        Date                         Receipts     @ 0.0703482%

                                     05/01/2012                     30,574.00           30,570.42
                                     11/01/2012                  4,236,723.74        4,234,737.58

                                                                 4,267,297.74        4,265,308.00


                                                           Escrow Cost Summary


                                  Purchase date                                       03/01/2012
                                  Purchase cost of securities                       4,265,308.00

                                  Target for yield calculation                      4,265,308.00




Jan 4, 2012 3:22 pm Prepared by Robert W. Baird & Co.                                               Page 15
DATE:         01/13/2012

TO:           Honorable Mayor and Commissioners

FROM:         Jeffrey Lewis, Director of Public Safety

RE:           Concurrence with the Housing Board of Appeals Notice and Order
              to Demolish. Dangerous Building Case #: EN110173


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1467 TERRACE ST Area 11 is unsafe, substandard, a public nuisance and that
it be demolished within thirty (30) days. It is further requested that administration
be directed to obtain bids for the demolition of the structure and that the Mayor
and City Clerk be authorized and directed to execute a contract for demolition
with the lowest responsible bidder.

Case# & Project Address: # EN110173 - 1467 TERRACE ST

Location and ownership: This structure is located on Terrace St. between E.
Grand Ave. and McLaughlin Streets and is owned by JOHNSON LOLA
H/JOHNSON PATRICE.

Staff Correspondence: A dangerous building inspection was conducted on
10/05/11 based upon a fire inspection report. The Notice and Order to Repair
was issued on 10/17/11. On 12/01/11 the HBA declared the structure
substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 12/01/11. Some
notices sent certified mail have returned unclaimed. No permits have been
issued and no owner contact since fire.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:      $7,000 (Entire property)

Estimated cost to repair: $50,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                        CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715
                    DANGEROUS BUILDING INSPECTION REPORT
                                        Thursday, October 6, 2011

Enforcement # EN110173          Property Address 1467 TERRACE ST
Parcel #24-205-272-0016-00      Owner JOHNSON LOLA H/JOHNSON PATRICE

Inspector: Henry Faltinowski

Date completed: 10/05/2011

DEFICENCIES:

1. Structural damage to roof system rafters ceiling, joists, sheathing.
2. All upper walls, ceiling floors severely burnt.
3. Remove all burnt floor coverings, wall coverings, ceiling covering. Need to
analyze structural damage.
4. Provide interior inspection when building is supported from collapse.
5. Replace all damaged siding and roof coverings.
6. Replace windows frames, doors.
7. Provide smoke alarms.



Request interior inspection by all trades, electrical, mechanical and plumbing.
Please contact Inspection Services with any questions or to schedule an
inspection at 933 Terrace St., Muskegon, MI 49440 (231) 724 6758.

Based upon my recent inspection of the above property I determined that the structure
meets the definition of a Dangerous Building and/or Substandard Building as set forth in
Section 10-61 of the Muskegon City Code.

_____________________________                         _______________
Henry Faltinowski, Building Inspector                      Date
DATE:        01/13/2012

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN110157


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
2226 CONTINENTAL ST is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN110157 - 2226 CONTINENTAL ST

Location and ownership: This structure is located on Continental St. between E.
Hackley Ave. and Barney Streets and is owned by SPRINGSTEAD WILLIAM J.

Staff Correspondence: A dangerous building inspection was conducted on
09/09/11 based on fire inspection report dated 01/06/11. The Inspections
Department received numerous complaints from neighbors regarding debris in
yard. The Notice and Order to Repair was issued on 09/13/11. On 11/03/11 the
HBA declared the structure substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 11/03/11. No
permits have been issued and no owner contact.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:     $ 4,900(Entire property)

Estimated cost to repair: $ 75,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                  CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715
                      DANGEROUS BUILDING INSPECTION
                                REPORT
                                  Tuesday, September 13, 2011

Enforcement # EN110157         Property Address 2226 CONTINENTAL ST
Parcel #24-860-000-0079-00              Owner SPRINGSTEAD WILLIAM J

Inspector: Henry Faltinowski

Date completed: 09/09/2011

DEFICENCIES:

1. Home is severly damaged by fire. Structural rafters, ceiling joists, walls,
floors.
2. Numerous fire debris around home. Home open- siding, roofing,
windows, doors.

Fire report dated: 01/06/11

1. Replumb entire house to code.
2. Provide heat source for all habitable spaces.
3. Remove heating device from existing garage.
4. Replace all damaged roof rafters - ceiling joists.
5. Replace sheathing and roof covering.
6. Rebuild all damaged exterior and interior walls.
7. Insulate and drywall throughout.
8. Replace all damaged floor systems, and floor coverings.
9. Smoke alarms required to code.
10. Egress windows to code in bedrooms.
11. Replace siding - windows and doors.
12. Rewire entire building to meet MRC




Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, MI 49440 (231) 724
6758.
Based upon my recent inspection of the above property I determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.

_____________________________                        _______________
Henry Faltinowski, Building Inspector                     Date
DATE:         01/13/2012

TO:           Honorable Mayor and Commissioners

FROM:         Jeffrey Lewis, Director of Public Safety

RE:           Concurrence with the Housing Board of Appeals Notice and Order
              to Demolish. Dangerous Building Case #: EN110185


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
167 MASON AVE (Home & Garage) Area 10 is unsafe, substandard, a public
nuisance and that it be demolished within thirty (30) days. It is further requested
that administration be directed to obtain bids for the demolition of the structure
and that the Mayor and City Clerk be authorized and directed to execute a
contract for demolition with the lowest responsible bidder.

Case# & Project Address: # EN110185 - 167 MASON AVE

Location and ownership: This structure is located on Mason between Fourth and
Third Streets and is owned by NNNN HOLDING LLC.

Staff Correspondence: A dangerous building inspection was first conducted on
garage on 12/01/10. The home had a fire and a dangerous building inspection
was conducted on home based on fire report 10/20/11. The Notice and Order to
Repair was issued on 10/20/11. On 12/01/11 the HBA declared the structure
substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 12/01/11. No
permits have been issued and no inspections scheduled.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:      $17,900 (Entire property)

Estimated cost to repair: $ 40,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                  CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715
                      DANGEROUS BUILDING INSPECTION
                                REPORT
                                  Thursday, October 20, 2011

Enforcement # EN110185         Property Address 167 MASON AVE
Parcel #24-205-393-0013-00              Owner NNNN HOLDING LLC

Inspector: Henry Faltinowski

Date completed: 01/28/2011

DEFICENCIES:

1. Smoke alarms installed per MRC.
2. Remove wall, floor, ceiling coverings in kitchen and fire damaged
rooms.
3. Encapsulate all smoke damage.
4. Remove ceiling insulation install new.
5. Replace damaged floor coverings.
6. Install new furnace to MRC code.
7. Rewire dwelling to MRC code.
8. all new framing must meet w009 MRC requirements.
9. Call for interior inspection when all fire damaged debris is removed from
hom for further structural framing inspection.
10. Provide carbon monoxide detectors.
11. Replace all damaged doors and windows.
GARAGE:
12. Garage roof system failing missing, sheathing roof covering.
13. Rafters structurally failing in state of roof collapse.
14. Request interior inspection.




Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, MI 49440 (231) 724
6758.
Based upon my recent inspection of the above property I determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.

_____________________________                        _______________
Henry Faltinowski, Building Inspector                     Date
Date:      January 24, 2012
To:        Honorable Mayor and City Commissioners
From:      City Clerk, Ann Marie Cummings
RE:        Ward and Precinct Redistricting



SUMMARY OF REQUEST: Due to the 2010 Census, the County district lines
have changed, so we are requesting permission to change the City
precinct/ward lines. This will allow us to balance the number of registered
voters in the precincts and to reduce the number of split precincts. We also
request to change the numbers of the precincts from 1 through 14.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: To approve the request.


COMMITTEE RECOMMENDATION: This has been approved by the Election
Commission.
                           AGENDA ITEM NO. ___________________

                CITY COMMISSION MEETING __________________________




TO:          Honorable Mayor and City Commissioners

FROM:        Bryon L. Mazade, City Manager

DATE:        January 19, 2012

RE:          Use of Explosives for Demolition on Former Sappi Property



SUMMARY OF REQUEST:
To give permission to demolish the large stick (280’) and the bleach plant by use of explosives
on the former Sappi property contingent upon review and approval of the demolition plan by all
appropriate City staff. City approval for use of explosives is necessary pursuant to City
Ordinance 10-136 (attached).


FINANCIAL IMPACT:
None.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the use of explosives for demolition as described above, contingent upon review
and approval of the demolition plan by all appropriate City staff.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\USE EXPLSVS, SAPPI PROP 011912

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