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CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 28, 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. Watermain Purchase. PUBLIC WORKS
C. Purchase of 2221 Surfwood Drive. COMMUNITY & NEIGHBORHOOD
SERVICES
D. Liquor License Transfer Request for Downtown Muskegon, Inc., 1157
Third Street. CITY CLERK
E. Liquor License Transfer Request for Frontier Liquor Shoppe, 631 W.
Southern. CITY CLERK
PUBLIC HEARINGS:
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
A. “Development and Reimbursement Agreement” Between the City of
Muskegon Brownfield Redevelopment Authority (BRA) and Parkland
Muskegon LLC (Jon Rooks). PLANNING & ECONOMIC DEVELOPMENT
B. Designation of Voting Delegates for the Michigan Municipal League
Annual Business Meeting. CITY CLERK
ANY OTHER BUSINESS:
PUBLIC PARTICIPATION:
Reminder: Individuals who would like to address the City Commission shall do the following:
Fill out a request to speak form attached to the agenda or located in the back of the room.
Submit the form to the City Clerk.
Be recognized by the Chair.
Step forward to the microphone.
State name and address.
Limit of 3 minutes to address the Commission.
(Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
CLOSED SESSION:
ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Date: August 28, 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 August 13th
Commission Worksession Meeting and the August 14th City
Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
City of Muskegon
City Commission Worksession
August 13, 2012
City Commission Chambers
5:30 PM
MINUTES
2012-60
Present: Commissioners Gawron, Spataro, Hood, Wierengo, German, Turnquist, and
Markowski.
Absent: None.
Appointment of Vice Mayor.
Motion by Turnquist, seconded by Markowski to appoint Commissioner Larry Spataro as
Vice Mayor.
ROLL CALL VOTE:
Ayes: Gawron, Hood, Spataro, German, Wierengo, Turnquist, and Markowski.
Nays: None.
MOTION PASSES.
Non-Discrimination Resolution.
This is a request to approve a resolution prohibiting discrimination on the basis of sexual
orientation or gender identity.
Motion by Wierengo, seconded by Spataro to adopt the Non-Discrimination Resolution.
Motion by Spataro, seconded by German to table the item until the Tuesday, August 14,
2012 City Commission Meeting.
ROLL CALL VOTE:
Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and Gawron.
Nays: None.
MOTION PASSES.
Water Supply Agreement.
This is a request to approve a water supply agreement with the City of North Muskegon, City of
Roosevelt Park, and County of Muskegon. This action will create a single agreement for the
City of Muskegon to supply water to these customers at a uniform rate.
Tim Paul, Finance Director, explained there may be a minor loss in revenue initially, but the
agreement will provide long-term financial stability.
This item has been placed on the August 14, 2012 Commission Meeting for consideration.
Grant Application for Fisherman’ Landing.
The City is seeking this grant from the Great Lakes Fisheries Trust (GLFT) for Fisherman’s
Landing for the purpose of renovating restrooms and other amenities.
If the City is awarded the GLFT grant, it will be programmed into the 2013-14 budget.
This item has been placed on the August 14, 2012 Commission Meeting for consideration.
Adjournment.
Motion by Hood, seconded by Wierengo to adjourn at 5:48 p.m.
MOTION PASSES.
____________________________
Ann Marie Cummings, MMC
City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 14, 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, August 14, 2012.
Mayor Gawron opened the meeting with a prayer from Pastor Marcy Miller from
the Samuel Lutheran Church after which the Commission and public recited the
Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Eric Hood, Willie German, Sue Wierengo, Byron Turnquist, and Lea
Markowski, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Cummings.
2012-61 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the July 23rd Special Commission
Meeting and the July 24th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
C. Water Treatment Plant Sluice Gate Repair. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to enter into a contract with Northwest
Kent Mechanical Co. to repair the clearwell sluice gate for a cost of $10,600.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To contract with the lowest responsible bidder,
Northwest Kent Mechanical Co. at cost of $10,600, for repair of the Water
Treatment Plant clearwell #2 sluice gate.
D. Engineering Services Agreement for Environmental Reports.
1
ENGINEERING
SUMMARY OF REQUEST: Accept the proposal from Westshore Engineering to
prepare the necessary closing documents for the Public Service Building and
Hartshorne Marina to get both locations off of the open Leaking Underground
Storage Tank sites. The proposed costs are: $8,710 for the Public Service Building
and $14,560 for the Marina site.
FINANCIAL IMPACT: The total cost of $23,270.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Accept proposal from Westshore Engineering for
$23,270 to prepare the closing reports.
E. Purchase of Concrete Saw. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to purchase Husqvarna FS 4800 walk
behind concrete saw from J&J Farms who submitted the lowest bid.
FINANCIAL IMPACT: $21,954.
BUDGET ACTION REQUIRED: None, the amount is under what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase new concrete saw from
J&J Farms who was the lowest responsible bidder.
F. Liquor License Request from Muskegon Nights, Inc., 939 Third Street.
CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Muskegon Nights, Inc., 939 Third Street to
transfer shares of stock to new stockholder.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending approval.
G. Grant Application for Fisherman’s Landing. FINANCE
SUMMARY OF REQUEST: The City is seeking this grant from the Great Lakes
Fisheries Trust (GLFT) for Fisherman’s Landing for the purpose of: a) renovating
badly deteriorated restroom facilities to comply with ADA standards and, b)
providing increased opportunities for bikers, trail users and the general public to
more fully utilize the facility by adding a handicap chair lift, make needed
launch ramp repairs, trail spur and other amenities. (A fishing pier was in the
original grant application but later removed.)
The restrooms at Fisherman’s Landing were cited in a Department of Justice
ADA audit conducted in 2008. The City has since entered into a settlement
agreement with DOJ to remedy these audit findings over time.
2
FINANCIAL IMPACT: The total project cost is estimated to be $200,000. There is
no required local match.
BUDGET ACTION REQUIRED: If the City is awarded the GLFT grant, it will be
programmed into the 2013-14 budget.
STAFF RECOMMENDATION: Approval.
H. Lakeshore Museum Loan Agreement (LaFrance Fire Truck). PUBLIC
SAFETY
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the Lake Shore Museum Center Loan
Agreement relating to the 1923 American LaFrance Fire Truck with attached
equipment.
Currently, the LaFrance is on display at the Fire House Museum (Clay St.).
Curator of Collections (Sharon McCullar) is requesting the City consider
authorizing five additional years in which the LaFrance Fire Truck would remain
on loan to the Museum for the enjoyment of the community at large.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of this extended loan agreement.
I. 2012-2013 Muskegon High School Community Officer Agreement.
PUBLIC SAFETY
SUMMARY OF REQUEST: To approve the 2012-2013 Muskegon High School
Community Officer Agreement. This agreement provides Muskegon High School
with a Community Officer during the nine months school is in session.
FINANCIAL IMPACT: Muskegon Public Schools agrees to pay the City of
Muskegon $2,121.80 each month, from September 2012 through May 2013.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the 2012-2013 Muskegon High School
Community Officer Agreement.
J. New Cingular Wireless Second Amended Tower Lease Agreement.
PUBLIC WORKS
SUMMARY OF REQUEST: New Cingular Wireless PCS, LLC a Delaware
Corporation and the Department of Public Works have been in negotiations to
amend section one of the First Amendment to the 1998 Lease Agreement for
the Nims and Marshall Street Water Towers. The Second Amendment would
increase the current monthly rent, for two sites, from $4,884.48 per month to
$7,326.36 per month.
The Second Amended lease would allow New Cingular Wireless to install on
3
each water tower up to a total of nine antennas, three additional antennas
from the current number of six.
FINANCIAL IMPACT: Monthly rental will increase to $7,326.36 per month effective
upon the installation of the three additional antennas per site which is expected
to be October 1, 2012. Monthly rental amounts to be escalated at the rate of
3% annually.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Second Amendment to the 1998
Lease Agreement and to authorize the Mayor and Clerk to sign.
K. Local Officer’s Compensation Commission. CITY CLERK
SUMMARY OF REQUEST: Willie German, Jr. stepped down from the Local
Officer’s Compensation Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
COMMITTEE RECOMMENDATION: The Community Relations Committee
approved this request at their August 13th Meeting.
Motion by Commissioner German, second by Vice Mayor Spataro to approve
the Consent Agenda minus item B.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
Gawron
Nays: None
MOTION PASSES
2012-62 ITEM REMOVED FROM THE CONSENT AGENDA:
B. Non-Discrimination Resolution. CITY MANAGER
SUMMARY OF REQUEST: To approve a resolution prohibiting discrimination on the
basis of sexual orientation or gender identity.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to adopt the
Non-Discrimination Resolution as presented.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
and Hood
4
Nays: None
MOTION PASSES
2012-63 NEW BUSINESS:
A. Sale of 2265 Lincoln Street. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the sale of 2265 Lincoln Street to Lindsey J.
Dutkiewicz for the purchase price of $45,000 through the City of Muskegon’s
Homebuyer Program.
Originally obtained through HUD’s $1 Program, the CNS department totally
rehabilitated the structure to continue neighborhood revitalization and
stabilization.
FINANCIAL IMPACT: The program income obtained from the sale will be used to
continue affordable housing projects in the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request to sell this home and provide
a resolution for the purchase.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to approve
the sale of 2265 Lincoln Street to Lindsey J. Dutkiewicz.
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and
Spataro
Nays: None
MOTION PASSES
B. Water Supply Agreement. CITY MANAGER
SUMMARY OF REQUEST: To approve a water supply agreement with the City of
North Muskegon, City of Roosevelt Park, and County of Muskegon. This action
will create a single agreement for the City of Muskegon to supply water to these
customers at a uniform rate.
FINANCIAL IMPACT: May be a minor loss in revenue initially, but the agreement
will provide long-term financial stability.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the agreement and authorize the Mayor
and Clerk to sign it.
Motion by Commissioner Hood, second by Commissioner Wierengo to approve
the water supply agreement with the City of North Muskegon, City of Roosevelt
Park, and County of Muskegon.
ROLL VOTE: Ayes: Wierengo, Turnquist, Markowski, Gawron, Hood, Spataro, and
5
German
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
2012-64 CLOSED SESSION: Attorney/Client Communication.
Motion by Vice Mayor Spataro, second by Commissioner German to go into
Closed Session to discuss attorney/client communication.
ROLL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
Turnquist
Nays: None
MOTION PASSES
Motion by Vice Mayor Spataro, second by Commissioner Hood to come out of
Closed Session.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
Gawron
Nays: None
MOTION PASSES
Motion by Vice Mayor Spataro, second by Commissioner Hood to reject and
authorize language to County Clerk.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Markowski, Gawron, and Hood
Nays: Turnquist
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:42 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
6
Date: 08/28/12
To: Honorable Mayor and City Commission
From: Department of Public Works
RE: Watermain Purchase
SUMMARY OF REQUEST: Authorize staff to purchase 8 inch watermain and
appurtenances from ETNA Supply. The watermain will be used to upgrade
718 feet of 6 inch watermain on Vulcan Street between Laketon and Larch
using in-house work force and equipment. Street repairs will be contracted out
to Asphalt Paving, Inc.
FINANCIAL IMPACT: Total Cost $ 32,417.86
BUDGET ACTION REQUIRED: None. Included in 2012 / 2013 Budget
STAFF RECOMMENDATION: Approve purchase from ETNA Supply and
Asphalt Paving, Inc.
VULCAN WATERMAIN UPGRADE BID TABULATIONS
CONTRACTOR East Jordan Iron Works Etna Supply Michigan Pipe - Valve- Lansing
ADDRESS 301 Spring Street 529 32ND St. SE 1931 Snow Road
CITY/ST/ZIP East Jordan, MI 49727 Grand Rapids, MI 49548 Lansing, MI 48917
LINE DESCRIPTION UNIT QUANTITY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
1 WATERMAIN, DI, 8", TR DET G FT 718.00 $ 20.83 $ 14,955.94 $ 20.23 $ 14,525.14 $ 20.25 $ 14,539.50
2 BEND, 8", 45 DEGREE, DI MJ EA 4.00 $ 106.56 $ 426.24 $ 99.00 $ 396.00 $ 115.00 $ 460.00
3 BEND, 8", 90 DEGREE, DI MJ EA 1.00 $ 133.94 $ 133.94 $ 124.00 $ 124.00 $ 145.00 $ 145.00
4 GATE VALVE, MJ, 6" EA 2.00 $ 424.72 $ 849.44 $ 400.00 $ 800.00 $ 425.00 $ 850.00
5 GATE VALVE, MJ, 8" EA 4.00 $ 683.86 $ 2,735.44 $ 640.00 $ 2,560.00 $ 680.00 $ 2,720.00
6 SLEEVE, 4", LONG, DI MJ EA 1.00 $ 53.28 $ 53.28 $ 50.00 $ 50.00 $ 55.00 $ 55.00
7 SLEEVE, 6", LONG, DI MJ EA 2.00 $ 79.92 $ 159.84 $ 74.00 $ 148.00 $ 83.00 $ 166.00
8 REDUCER, 8" X 6", DI MJ EA 2.00 $ 87.32 $ 174.64 $ 81.00 $ 162.00 $ 90.00 $ 180.00
9 REDUCER, 8" X 4", DI MJ EA 1.00 $ 81.40 $ 81.40 $ 76.00 $ 76.00 $ 84.00 $ 84.00
10 TAPPING SLEEVE 14" X 8" EA 1.00 $ 1,105.41 $ 1,105.41 $ 850.00 $ 850.00 $ 915.00 $ 915.00
11 TAPPING VALVE, MJ, 8" EA 1.00 $ 890.10 $ 890.10 $ 830.00 $ 830.00 $ 925.00 $ 925.00
12 TEE, 8" X 6", DI MJ EA 2.00 $ 165.02 $ 330.04 $ 151.00 $ 302.00 $ 170.00 $ 340.00
13 TEE, 8" X 8", DI MJ EA 3.00 $ 196.84 $ 590.52 $ 181.00 $ 543.00 $ 200.00 $ 600.00
14 FIELD LOK GSK, 8" EA 16.00 $ 95.00 $ 1,520.00 $ 108.00 $ 1,728.00 $ 92.79 $ 1,484.64
15 $ - $ - $ -
Total $ 24,006.23 $ 23,094.14 $ 23,464.14
VULCAN STREET REPAIRS BID TABULATIONS
CONTRACTOR Asphalt Paving Inc. Bobs Asphalt Paving Harold C. Osborne, Inc.
ADDRESS 1000 E. Sherman Blvd. 23728 40th Avenue 4052 Fruitvale rd.
CITY/ST/ZIP Muskegon, MI. 49444 Ravenna, MI 49451 Montague, MI. 49437
LINE DESCRIPTION UNIT QUANTITY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
1 3C Base and 4C Top Asphalt ton 134.00 $9,323.72 $14,400.00 $12,328.00
Total $ 9,323.72 $ 14,400.00 $ 12,328.00
Commission Meeting Date: August 28, 2012
Date: August 21, 2012
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Purchase of 2221 Surfwood Drive
SUMMARY OF REQUEST: To approve the purchase of 2221 Surfwood
Drive, Muskegon, MI 49441 (CITY OF MUSKEGON REVISED PLAT OF 1903 BLK
707 ELY 14 FT LOT 26 & ALL LOT 27) from the U.S. Department of Housing and
Urban Development for a bid price up to $42,000.
After 2221 Surfwood is obtained, the City will renovate the property as a
part of its HOME funded Homebuyers Program.
FINANCIAL IMPACT: The funding used for the purchase has been
identified in our 2012 HOME budget and the rehabilitation will be
completed through our 2013 HOME entitlement.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request to purchase the
property.
COMMITTEE RECOMMENDATION: None needed
HUD Property Flyer | HUD Homes for Sale Page 1 of 1
Case Number: 263-301464
Location Map
Map data ©2012 Google
Property Information Listing Information
Address: 2221 Surfwood Dr List Date: 08/16/2012
Muskegon, MI, 49441
List Price: $42,000.00
Muskegon County
As-Is Value: $42,000.00
Appraisal Date: 08/09/2012
FHA Financing: UI (Uninsured)
Bed/Bath: 3/1.00
203K Eligible: Yes
Total Rooms: 5
Repair Escrow: $0.00
Square Feet: 864
Year: 1960
Property Design:
Parking: Garage
HOA Fees: $0.00
HUD.GOV/HUDHomes
http://www.hudhomestore.com/pages/PrintAFlyer.aspx?caseNumber=263-301464 8/23/2012
Date: August 28, 2012
To: Honorable Mayor and City Commissioners
From: Ann Marie Cummings, City Clerk
RE: Liquor License Transfer Request
Downtown Muskegon, Inc.
1157 Third Street
SUMMARY OF REQUEST: The Liquor Control Commission is seeking
local recommendation on a request from Agid, LLC to transfer
ownership of the SDD/SDM license with Sunday Sales Permit located at
1157 Third Street from Downtown Muskegon, Inc.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending
approval.
Date: August 28, 2012
To: Honorable Mayor and City Commissioners
From: Ann Marie Cummings, City Clerk
RE: Liquor License Transfer Request
Frontier Liquor Shoppe
631 W. Southern
SUMMARY OF REQUEST: The Liquor Control Commission is seeking
local recommendation on a request from S & M Khamro, LLC to transfer
ownership of the SDD/SDM license with Sunday Sales Permit located at
631 W. Southern from S & R Kado, LLC.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending
approval.
Commission Meeting Date: August 28, 2012
Date: August 22, 2012
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: “Development and Reimbursement Agreement” between
the City of Muskegon Brownfield Redevelopment Authority
(BRA) and Parkland Muskegon LLC (Jon Rooks)
SUMMARY OF REQUEST: Jon Rooks has modified his plans for the High Point
Flats project to include market-rate apartment units, which are more marketable in
the current economy. Both Mr. Rooks and the City staff have been coordinating with
the Michigan Economic Development Corporation (MEDC) to assist in additional
funding for the project to enable construction to begin this year. The MEDC has
agreed to provide loan funding to the project. There is a requirement that the local
municipality also participate in the project. The local participation is proposed to be
granting future BRA Tax Increment Finance (TIF) capture for the High Point Flats
property to Mr. Rooks (see attached “Agreement”). With approvals from the City and
the MEDC, the project is expected to begin within 30-90 days.
FINANCIAL IMPACT: Future BRA TIF capture will be directed to Mr. Rooks for
reimbursement of loans he is securing for redevelopment of the property.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To endorse the approval by the BRA for the
“Development and Reimbursement Agreement” between the City of Muskegon BRA
and Parkland Muskegon, LLC.
COMMITTEE RECOMMENDATION: The BRA will be meeting on August 27, 2012
to review the “Agreement”.
Parkland Muskegon, LLC
#8253455
(Apartments)
Brownfield TIF Capture from Parkland Muskegon Property
Tax Capture by Jurisdiction - TIF
Project Name: Parkland Muskegon, LLC
Community: Muskegon
Eligible Expenses for Reimbursement under Public Act 381
Contamination/Core Community Related Activities $0
Brownfield Program Administrative Fee $0
Local Site Remediation Revolving Fund Capture $0
Total Eligible Costs for TIF Reimbursement $0
Y ear 1 (2012) Y ear 2 (2013) Y ear 3 (2014) Y ear 4 (2015) Y ear 5 (2016) Y ear 6 (2017) Y ear 7 (2018) Y ear 8 (2019) Y ear 9 (2020) Y ear 10 (2021) Y ear 11 (2022) Y ear 12 (2023) Y ear 13 (2024)
Existing Taxable Value (TV): $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810
New Taxable Value for Non-Homestead: (1) $91,810 $91,810 $2,015,000 $2,035,150 $2,055,502 $2,076,057 $2,096,817 $2,117,785 $2,138,963 $2,160,353 $2,181,956 $2,203,776 $2,225,814
New Taxable Value for Homestead: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Incremental Difference (New Taxable Value - Existing): $0 $0 $1,923,190 $1,943,340 $1,963,692 $1,984,247 $2,005,007 $2,025,975 $2,047,153 $2,068,543 $2,090,146 $2,111,966 $2,134,004
Millage
Millage Category Rates (2)
State Capture (2)
State Education Tax (SET) 6.00000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,103 $ 6,270 $ 9,504 $ 12,804
School Operating 18.00000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,308 $ 18,811 $ 28,512 $ 38,412
STATE TOTAL 24.0000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,411 $ 25,082 $ 38,015 $ 51,216
State - Accumulated Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,411 $ 37,493 $ 75,508 $ 126,724
Local Capture
MAISD 3.75800 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,943 $ 3,927 $ 5,953 $ 8,020
Community College 2.20370 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,140 $ 2,303 $ 3,491 $ 4,703
City Operating 12.07490 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,244 $ 12,619 $ 19,126 $ 25,768
County Voted 0.69730 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 361 $ 729 $ 1,105 $ 1,488
Library 2.40000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,241 $ 2,508 $ 3,802 $ 5,122
County Operating 5.69840 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,947 $ 5,955 $ 9,026 $ 12,160
LOCAL - TOTAL CAPTURE 26.8323 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,876 $ 28,042 $ 42,502 $ 57,260
Local - Accumulated Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,876 $ 41,918 $ 84,419 $ 141,680
TOTAL TAX CAPTURE (school and local) 50.83230 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 26,287 $ 53,123 $ 80,517 $ 108,476
Accumulated Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 26,287 $ 79,411 $ 159,928 $ 268,404
(1) Taxable Value (TV) is increased 1% per year for inflation.
(2) State and Local Capture does not include any debt. All millage rates are listed without debt. Proposed 100% 2021 2022 2023 2024
Property is subject to Ren Zone that will begin to phase out in 2021 at 25%, 50% and 75% through 2023. Capture State Capture $ 12,411 $ 25,082 $ 38,015 $ 51,216
Local Capture $ 13,876 $ 28,042 $ 42,502 $ 57,260
Eligible Activity
Balance $ 400,000 $ 420,000 $ 441,000 $ 463,050 $ 486,203 $ 510,513 $ 536,038 $ 562,840 $ 564,695 $ 539,806 $ 486,280 $ 402,117
Interest (5%) $ 20,000 $ 21,000 $ 22,050 $ 23,153 $ 24,310 $ 25,526 $ 26,802 $ 28,142 $ 28,235 $ 26,990 $ 24,314 $ 20,106
Parkland Muskegon, LLC
#8253455
(Apartments)
Brownfield TIF Capture from Parkland Muskegon Property
Y ear 14 (2025) Y ear 15 (2026) Y ear 16 (2027) Y ear 17 (2028) Y ear 18 (2029) Y ear 19 (2030) Y ear 20 (2031) Y ear 21 (2032) Y ear 22 (2033) Y ear 23 (2034) Y ear 24 (2035) Y ear 25 (2036) Y ear 26 (2037) Y ear 27 (2038) Y ear 28 (2039)
$91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810 $91,810
$2,248,072 $2,270,552 $2,293,258 $2,316,191 $2,339,352 $2,362,746 $2,386,373 $2,410,237 $2,434,340 $2,458,683 $2,483,270 $2,508,102 $2,533,183 $2,558,515 $2,584,100
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$2,156,262 $2,178,742 $2,201,448 $2,224,381 $2,247,542 $2,270,936 $2,294,563 $2,318,427 $2,342,530 $2,366,873 $2,391,460 $2,416,292 $2,441,373 $2,466,705 $2,492,290 Total
Project
Capture
$ 12,938 $ 13,072 $ 13,209 $ 13,346 $ 13,485 $ 13,626 $ 13,767 $ 13,911 $ 14,055 $ 14,201 $ 14,349 $ 14,498 $ 14,648 $ 14,800 $ 14,954 $ 240,540
$ 38,813 $ 39,217 $ 39,626 $ 40,039 $ 40,456 $ 40,877 $ 41,302 $ 41,732 $ 42,166 $ 42,604 $ 43,046 $ 43,493 $ 43,945 $ 44,401 $ 44,861 $ 721,620
$ 51,750 $ 52,290 $ 52,835 $ 53,385 $ 53,941 $ 54,502 $ 55,070 $ 55,642 $ 56,221 $ 56,805 $ 57,395 $ 57,991 $ 58,593 $ 59,201 $ 59,815 $ 962,160
$ 178,475 $ 230,765 $ 283,599 $ 336,984 $ 390,925 $ 445,428 $ 500,497 $ 556,140 $ 612,360 $ 669,165 $ 726,560 $ 784,551 $ 843,144 $ 902,345 $ 962,160
$ 8,103 $ 8,188 $ 8,273 $ 8,359 $ 8,446 $ 8,534 $ 8,623 $ 8,713 $ 8,803 $ 8,895 $ 8,987 $ 9,080 $ 9,175 $ 9,270 $ 9,366 $ 150,658
$ 4,752 $ 4,801 $ 4,851 $ 4,902 $ 4,953 $ 5,004 $ 5,057 $ 5,109 $ 5,162 $ 5,216 $ 5,270 $ 5,325 $ 5,380 $ 5,436 $ 5,492 $ 88,346
$ 26,037 $ 26,308 $ 26,582 $ 26,859 $ 27,139 $ 27,421 $ 27,707 $ 27,995 $ 28,286 $ 28,580 $ 28,877 $ 29,176 $ 29,479 $ 29,785 $ 30,094 $ 484,083
$ 1,504 $ 1,519 $ 1,535 $ 1,551 $ 1,567 $ 1,584 $ 1,600 $ 1,617 $ 1,633 $ 1,650 $ 1,668 $ 1,685 $ 1,702 $ 1,720 $ 1,738 $ 27,955
$ 5,175 $ 5,229 $ 5,283 $ 5,339 $ 5,394 $ 5,450 $ 5,507 $ 5,564 $ 5,622 $ 5,680 $ 5,740 $ 5,799 $ 5,859 $ 5,920 $ 5,981 $ 96,216
$ 12,287 $ 12,415 $ 12,545 $ 12,675 $ 12,807 $ 12,941 $ 13,075 $ 13,211 $ 13,349 $ 13,487 $ 13,627 $ 13,769 $ 13,912 $ 14,056 $ 14,202 $ 228,449
$ 57,857 $ 58,461 $ 59,070 $ 59,685 $ 60,307 $ 60,934 $ 61,568 $ 62,209 $ 62,855 $ 63,509 $ 64,168 $ 64,835 $ 65,508 $ 66,187 $ 66,874 $ 1,075,707
$ 199,537 $ 257,998 $ 317,068 $ 376,753 $ 437,060 $ 497,994 $ 559,562 $ 621,771 $ 684,627 $ 748,135 $ 812,304 $ 877,138 $ 942,646 $ 1,008,833 $ 1,075,707
$ 109,608 $ 110,750 $ 111,905 $ 113,070 $ 114,248 $ 115,437 $ 116,638 $ 117,851 $ 119,076 $ 120,314 $ 121,563 $ 122,826 $ 124,101 $ 125,388 $ 126,689 $ 2,037,868
$ 378,012 $ 488,762 $ 600,667 $ 713,737 $ 827,985 $ 943,422 $ 1,060,060 $ 1,177,911 $ 1,296,987 $ 1,417,301 $ 1,538,864 $ 1,661,690 $ 1,785,790 $ 1,911,179 $ 2,037,868
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
$ 51,750 $ 10,381 $ 188,856
$ 57,857 $ 58,461 $ 59,070 $ 59,685 $ 60,307 $ 60,934 $ 59,711 $ 557,705
$ 312,615 $ 259,404 $ 213,305 $ 164,285 $ 112,192 $ 56,867 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 746,560
$ 15,631 $ 12,970 $ 10,665 $ 8,214 $ 5,610 $ 2,843 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
47.2% State
52.8% Local
DEVELOPMENT AND REIMBURSEMENT AGREEMENT
THIS DEVELOPMENT AND REIMBURSEMENT AGREEMENT (the
“Agreement”) is made on ______________, 2012, by and between the CITY OF
MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY, a Michigan public body
corporate, whose address is 933 Terrace Street, Muskegon, Michigan 49440 (the
“Authority”), and PARKLAND MUSKEGON, LLC, whose address is 940 Monroe
Avenue NW, Suite 155, Grand Rapids, Michigan 49503 (the “Developer”).
RECITALS
A. Pursuant to P.A. 381 of 1996, as amended, (“Act 381”), the Authority
adopted a brownfield plan in __________ (the “Brownfield Plan”) to add property
located at 241, 255 and 285 W. Western Avenue, Muskegon, Michigan (the “Property”).
B. The Developer owns the Property, which is included in the Brownfield Plan
as an “eligible property” because it is a “facility”, as defined by Part 201 of the Natural
Resources and Environmental Protection Act (“Part 201”). The Developer is not a liable
party, under Part 201, for the contamination on the Property.
C. The Developer intends to conduct eligible activities on the Property in
order to address environmental conditions and redevelop the site (the “Project”). The
Project will likely include baseline environmental assessment activities, due care
response activities, demolition, site preparation and public infrastructure eligible
activities under Act 381 (the “Eligible Activities”), all as described in the Brownfield
Plan and eligible for reimbursement under Act 381. The total cost of the Eligible
Activities, including contingencies and interest (as described in paragraph 1), are not to
exceed $750,000 (the “Total Eligible Brownfield TIF Costs”).
D. Act 381 permits the Authority to capture and use the school tax (where
applicable) and local property tax revenues generated from the incremental increase in
property value of a redeveloped brownfield site constituting an “eligible property” under
Act 381 to pay or to reimburse the payment of Eligible Activities conducted on the
“eligible property” (the “Brownfield TIF Revenue”).
E. In accordance with Act 381, the parties desire to establish the procedure
for using the available Brownfield TIF Revenue generated from the Property to
reimburse the Developer for completion of Eligible Activities on the Property in an
amount not to exceed the Total Eligible Brownfield TIF Costs.
NOW, THERFORE, the parties agree as follows:
1. Reimbursement Source.
During the Term (defined below) of this Agreement, and except as set forth in
paragraph 2 below, the Authority shall reimburse the Developer for its Eligible Activities
costs conducted on the Property from the Brownfield TIF Revenue collected from the
real and personal property taxes on the Property. The amount reimbursed to Developer
for the Eligible Activities shall not exceed the Total Eligible Brownfield TIF Costs, which
consists of $400,000 of principal Eligible Activities plus simple interest calculated at a
rate of five (5) percent on Developer’s unpaid Eligible Activities from the date they have
been approved for reimbursement by the Authority. The Authority shall capture
Brownfield TIF Revenue from the Property and reimburse Developer for Eligible
Activities (with interest) until the earlier of the Developer being fully reimbursed or
December 31, 2029. The Authority may choose at anytime to pay the entire balance of
Developer’s unpaid principal cost (plus any accrued interest) of the approved Eligible
2
Activities and avoid paying additional interest. Unless otherwise prepaid by the
Authority, payments to the Developer shall be made on a semi-annual basis as
incremental local and school taxes are captured and available.
2. Reimbursement Process.
(a) Developer shall submit to the Authority, not more frequently than on a
quarterly basis, a “Request for Cost Reimbursement” of Eligible Activities paid for by the
Developer during the prior period. All costs for the Eligible Activities must be consistent
with the approved Brownfield Plan. The Developer must include documentation
sufficient for the Authority to determine whether the costs incurred were for Eligible
Activities, including detailed invoices and proof of payment. Copies of all invoices for
Eligible Activities must note what Eligible Activities they support.
(b) Unless it disputes whether such costs are Eligible Activities within thirty
(30) days after receiving a Request for Cost Reimbursement from Developer, the
Authority shall pay to the Developer the amounts for which submissions have been
made pursuant to paragraph 2(a) of this Agreement from which the submission may be
wholly or partially paid from available Brownfield TIF Revenue from the Property as
described in paragraph 1. The Developer shall cooperate with the Authority’s review by
providing information and documentation to supplement the Request for Cost
Reimbursement which may be reasonably requested by the Authority. If a partial
payment is made by the Authority because of insufficient Brownfield TIF Revenue, the
Authority shall make additional payments toward the remaining amount within thirty (30)
days of its receipt of additional Brownfield TIF Revenue from the Property until all of the
amounts for which submissions have been made, have been fully paid to Developer or
3
the end of the Term (defined below), whichever occurs first. The Authority is not
required to reimburse the Developer from any other source. If the Authority determines
that requested costs are deemed ineligible for reimbursement, the Authority shall notify
the Developer in writing of its reasons for rejection within the thirty (30) day time period
for review. The Developer shall then have thirty (30) days to provide supplemental
information or documents to the Authority demonstrating that the costs are eligible for
reimbursement.
(c) The Authority shall send all payments to the Developer by registered or
certified mail addressed to the Developer at the address shown above, or by electronic
funds transfer directly to Developer’s bank account. Developer may change the
address by providing written notice sent by registered or certified mail to the Authority.
3. Term of Agreement.
The Authority’s reimbursement of the Total Eligible Brownfield TIF Costs under
this Agreement shall terminate the earlier of the date when all reimbursements to
Developer required under this Agreement have been made or December 31, 2029 (the
“Term”). If the Brownfield TIF Revenue ends before the full reimbursement of all of
Developer’s Total Eligible Brownfield TIF Costs, the last reimbursement payment by the
Authority shall be the summer and winter tax increment collected during the final year of
this Agreement.
4. Adjustments
If, due to an appeal of any tax assessment or reassessment of any portion of the
Property or for any other reason the Authority is required to reimburse any Brownfield
TIF Revenue to any tax levying unit of government, the Authority may deduct the
4
amount of any such reimbursement, including interest and penalties, from any amounts
due and owing the Developer. If all amounts due the Developer under this Agreement
have been fully paid or the Authority is no longer obligated to make any further
payments to the Developer, the Authority shall invoice the Developer for the amount of
such reimbursement and the Developer shall pay the Authority such invoiced amount
within thirty (30) days of the Developer’s receipt of the invoice. Amounts invoiced and
paid to the Authority by the Developer pursuant to this paragraph shall be reinstated as
Eligible Activities for which the Developer shall have the opportunity to be reimbursed in
accordance with the terms, conditions and limitations of this Agreement. Nothing in this
Agreement shall limit the right of the Developer to appeal any tax assessment.
5. Legislative Authorization.
This Agreement is governed by and subject to the restrictions set forth in Act
381. If there is legislation enacted in the future that alters or affects the amount of
Brownfield TIF Revenue subject to capture, eligible property, or eligible activities, then
the Developer’s rights and the Authority’s obligations under this Agreement shall be
modified accordingly as required by law, or by agreement of the parties.
6. Notices.
All notices shall be given by registered or certified mail addressed to the parties
at their respective addresses as shown above. Any party may change the address by
written notice sent by registered or certified mail to the other party.
7. Assignment.
This Agreement and the rights and obligations under this Agreement shall not be
assigned or otherwise transferred by any party without the consent of the other party,
5
which shall not be unreasonably withheld, provided, however, the Developer may
assign its interest in this Agreement to an affiliate without the prior written consent of the
Authority, provided, any such assignee shall acknowledge to the Authority in writing on
or prior to the effective date of such assignment its obligations upon assignment under
this Agreement, provided, further, that the Developer may make a collateral assignment
of the Brownfield TIF Revenue for project financing purposes. As used in this
paragraph, “affiliate” means any corporation, company, partnership, limited liability
company, trust, sole proprietorship or other entity or individual which (a) is owned or
controlled by such Developer, (b) owns or controls such Developer or (c) is under
common ownership or control with such Developer. This Agreement shall be binding
upon any successors or permitted assigns of the parties.
8. Entire Agreement.
This Agreement supersedes all agreements previously made between the parties
relating to the subject matter. There are no other understandings or agreements
between them.
9. Non-Waiver.
No delay or failure by any party to exercise any right under this Agreement, and
no partial or single exercise of that right, constitutes a waiver of that or any other right,
unless otherwise expressly provided herein.
10. Headings.
Headings in this Agreement are for convenience only and shall not be used to
interpret or construe its provisions.
11. Governing Law.
6
This Agreement shall be construed in accordance with an governed by the laws
of the State of Michigan.
12. Counterparts.
This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same
instrument.
13. Binding Effect.
The provisions of this Agreement shall be binding upon and inure to the benefit of
all the parties and their respective heirs, legal representatives, successors and assigns.
The parties have executed this Agreement on the date set forth above.
CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
By:_____________________________
Its:_____________________________
PARKLAND MUSKEGON, LLC
By:_____________________________
Its:_____________________________
8522505-6
7
Date: August 28, 2012
To: Honorable Mayor and City Commissioners
From: Ann Marie Cummings, City Clerk
RE: Designation of Voting Delegates for the Michigan
Municipal League Annual Business Meeting
SUMMARY OF REQUEST: To designate by action of the Commission,
one of our officials who will be in attendance at the Convention as an
official representative to cast the vote of the municipality at the annual
meeting; and, if possible, to designate one other official to serve as
alternate.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.