Approved Agreements and Contracts 2026/05/12 Muskegon Farmers Market Grant & Professional Services Authorization

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                                              _   CITY OF


                                  mi m@ MUSKEGON
                           Agenda ltem Review Form
                           Muskegon City Commission

Commission Meeting Date: May 12, 2026                 Title: Muskegon Farmers Market Grant &
                                                      Professional Services Authorization


Submitted by: Ann Meisch, City Clerk                  Department: City Clerk

Brief Summary:
Staff is seeking approval to accept a state grant in the amount of $481,267 from the MI Department
of Agriculture and Rural Development (MDARD) as well as approval of a Professional Services
Authorization for the renovation and expansion of the Muskegon Farmers Market (MFM}.

Detailed Summary & Background:
The city recently received a state grant from MDARD in the amount of $481,267 for the expansion of
Kitchen 242 as well as expansion of the barn at the Muskegon Farmers Market (MFM). Kifchen 242 is a
licensed shared-use commercial kitchen that supports food entrepreneurs, value-added producers,
and farmers. It is a critical link between local agriculture and affordable food access. The initial
phase of the project would include using approximately $231,267 of the grant to increase the
commercial kitchen capacity to support additional food entrepreneurs, year-round production, and
small business growth. The second phase of the project would include utilizing $250,000 of the grant
to begin expansion efforts of the barn to offer year-round food access. The expectation is that this
renovation and expansion will allow for increased winter capacity, additional vendor stalls, and
enhanced programming space. This is the largest capital component and would proceed as
additional funding sources are secured.


State grant funds must be spent by 12/31/27. The total project cost will be finalized as design and
bidding are completed. Preliminary estimates are $1.5-2M. The MDARD grant provides approximately
a third of the funding.   A community capital campaign will be conducted to secure the balance.
Staff has worked with Integrated Architecture to develop a Professional Services Authorization
Agreement to develop this full project scope of work. The professional services would be paid using
the grant funds.


The Muskegon Farmers Market (MFM) has always served as a cornerstone of food access, local
economic development, and community connection in Muskegon County. The City of Muskegon is
appreciative that these state funds will support 100+ food-based small businesses annually; drive
substantial seasonal foot traffic fo downtown Muskegon; circulate federal nutrition assistance dollars
directly to local farmers; serve as an entry point for emerging food entrepreneurs; and strengthen the
West Michigan regional food system.

Goal/Action Item:
2027 Goal |: Destination Community & Quality of Life


ls this a repeat item?:
Explain what change has been made fo justify bringing it back to Commission:
Amount Requested:                                 Budgeted Item:
$65,000 to Integrated Architecture,                Yes            No    Xx | N/A


Fund(s) or Account(s):                            Budget Amendment Needed:
252-808-80 |                                       Yes      |X|   No         N/A

Recommended Motion:
| move to accept the state MDARD grant funding in the amount of $481,267, and authorize the City
Clerk to sign the Professional Service Authorization Agreement.

Approvals:                                        Name the Policy/Ordinance Followed:
 Immediate Division       x
 Head

 Information
Technology

 Other Division Heads

 Communication

 Legal Review              X
                                                           16262679




                   Grant Agreement


                     Regarding the



         Farmers Market and Kitchen Expansion



                      Between the


Michigan Department of Agriculture and Rural Development

                          and


                   City of Muskegon
                    Michigan Department of Agriculture and Rural Development
                             Farmers Market and Kitchen Expansion


By authority granted under Act No. 22 of the Public Acts of 2025, the Michigan Department of
Agriculture and Rural Development, (hereinafter the “Grantor”) hereby agrees to provide the
City of Muskegon (hereinafter, the "Grantee") with grant assistance subject to the terms and
conditions, and limitations as set forth herein.


The total amount of grant assistance hereby offered is $481,267.

The grant shall be effective from April 8, 2026, through December 31, 2027.


If the project is not completed in the initial period, a grant extension may be considered by the
Grantor. Approval of an extension is not guaranteed and is dependent on the Grantee's
compliance with the enclosed Terms and Conditions. If the Grantee requires an extension, the
Grantee should contact the Grant Administrator as soon as it is evident an extension is needed.
Any request for extension must be made to the Grant Administrator in writing before the
expiration of the grant.


Funds will be made available for this program in accordance with the attached Terms and
Conditions,


This grant is valid contingent upon the availability of funds. If the Grantor's funds are reduced
by the Legislature as part of a budget reduction or reduced for any other reason, this grant may
be reduced or canceled.


This grant does not commit the State of Michigan or the Department of Agriculture and Rural
Development to approve requests for additional funds not contained in this grant.


Grantee accepts the grant and agrees that the funds made available through the grant will be used
only as set forth herein.


                                 April
Dated this     !7       day of     pr        , 2026



Petar Whe
Peter Wills, Director of Government Relations & Strategic Operations
City of Muskegon


                    A                a
Dated this |}           day of      “a /     , 2026

 25
Nate Bae Director of Community Engagement
Mic           epartment of Agriculture and Rural Development
                                                                                                    Bo
           Michigan Department of Agriculture and Rural Development
                                Grant Agreement



TITLE:                             Farmers Market and Kitchen Expansion



GRANTEE/ADDRESS:                   Peter Wills
                                   City of Muskegon
                                   933 Terrace St.
                                   Muskegon, Michigan 49440-1348
                                   Phone: 517-896-5935
                                   E-mail: peter.wills(@shorelinecity.com


GRANT ADMINISTRATOR/               Tracey Barnes
ADDRESS:                           Michigan Department of Agriculture and Rural
                                     Development
                                   Food and Agriculture Business Development
                                   P.O. Box 30017
                                   Lansing, Michigan   48909
                                   Phone: (517) 388-4540
                                   E-Mail: [email protected]



TOTAL AUTHORIZED                   $ 481,267.00
BUDGET:




GRANT NUMBER:                      26* 2679

SIGMA VENDOR ID:                   CVv0047621


SIGMA ADDRESS CODE:                004


ACCOUNTING TEMPLATE:               7918EDFA


FUNCTION CODE:                     8FMKEP
I,   GENERAL TERMS AND CONDITIONS


     1.       Record Retention


              Grantee shall retain all financial reports, supporting documents and statistical records for
              a period of seven years after the close of the grant. Grantee shall also require all
              subcontractors retained for the performance of this grant to retain all financial reports,
              supporting documents and statistical records for a period of seven years after the close of
              the grant, The retention period starts from the date of receipt of the Final Report by the
              Grant Administrator. Examples of documents to be retained might include but are not
              limited to: original and/or electronic invoices, billings, packing slips, reports, checking
              account statements, accounts payable records, contracts and sub-contracts.


              Procurement


              The Grantee agrees that all procurement transactions involving the use of funds from this
              grant shall be conducted in a manner that provides maximum open and free competition.


              Grant Changes


              The Grantee must obtain prior written approval for program changes from the Grant
              Administrator. Grant changes include:
                  1.   Changes in substance in the program activities,
                  2.   Additions or deletions in the project work plan or location.
                  3.   Any single or cumulative change in the budget of 20% or more of the grant
                       amount.


              Regulation Compliance


              The Grantee and Grantee’s contractors and subcontractors are responsible for compliance
              with all federal and state laws and municipal ordinances and regulations that in any
          .   manner affect the work or performance of this grant and shall at all times carefully
              observe and comply with all rules, ordinances and regulations.


              Non-Discrimination Clause


              In the performance of this grant, the Grantee agrees not to discriminate against any
              employee or applicant for employment, with respect to their hire, tenure, terms,
              conditions or privileges of employment, or any matter directly or indirectly related to
              employment, because of race, color, religion, national origin, ancestry, age, sex, height,
              weight, marital status, physical or mental disability unrelated to the individual’s ability to
              perform the duties of the particular
                                                job or position. The Grantee further agrees that every
              subcontract entered into for the performance of this Grant Agreement will contain a
              provision requiring non-discrimination in employment, as herein specified, that is binding
              upon each subcontractor. This covenant is required pursuant to the Elliot Larsen Civil
              Rights Act, 1976 PA 453, as amended, MCL 37.2101 ef seq., and the Persons with
Disabilities Civil Rights Act, 1976 PA 220, as amended, MCL 37.1101, ef seg. Any
breach of this covenant may be regarded as default under Section P and grounds for
cancelling the Grant Agreement.

Unfair Labor Practices

The Grantee shall abide by Act No. 278 of the Public Acts of 1980, as amended, MCL
423.321 et seq.


Liability Insurance


The Grantee shall provide and maintain insurance in an amount sufficient to protect from
claims that may arise out of or result from the Grantee’s operations under this grant, or
for anyone whose acts they are legally liable.

Indemnification


Each party to this Grant Agreement must seek its own legal representation and bear its
own costs in any litigation that may arise from performance of this grant. It is specifically
understood and agreed that neither party will indemnify the other party in such litigation
and that each party shall be responsible for any judgments entered against it.

Use of Material

Unless otherwise specified in this Agreement, the Grantee may release information or
material developed under this Agreement, provided it is acknowledged that the State
funded all or a portion of its development.

The State, and federal awarding agency, if applicable, retains a royalty-free, nonexclusive
and irrevocable right to reproduce, publish, and use in whole or in part, and authorize
others to do so, any copyrightable material or research data submitted under this grant
whether or not the material is copyrighted by the Grantee or another person. The Grantee
will only submit materials that the State can use in accordance with this paragraph.

Assignability

The Grantee shall not assign this Agreement or assign or delegate any of its duties or
obligations under this Agreement to any other party without the prior written consent of
the State. The State does not assume responsibility regarding the contractual
relationships between the Grantee and any subcontractor.

Iran Sanctions Act


By signing this Agreement the Grantee is certifying that it is not an Iran linked business,
and that its contractors are not Iran linked businesses, as defined in MCL 129,312.
Subcontracts


The State reserves the right to deny the use of any consultant, contractor, associate, or
other personnel to perform any portion of the project. The Grantee is solely responsible
for all contractual activities performed under this Agreement. Further, the State will
consider the Grantee to be the sole point of contact with regard to contractual matters,
including payment of any and all charges resulting from the anticipated Grant. All
subcontractors used by the Grantee in performing the project shall be subject to the
provisions of thisAgreement and shall be qualified to perform the duties required.


Anti-Lobbying


If all or a portion of this Agreement is funded with federal funds, then in accordance with
2 CFR 200, as appropriate, the Grantee shall comply with the Anti-Lobbying Act, which
prohibits the use of all project funds regardless of source, to engage in lobbying the state
or federal government or in litigation against the State. Further, the Grantee shall require
that the language of this assurance be included in the award documents of all subawards
at all tiers.


If all or a portion of this Agreement is funded with state funds, then the Grantee shall not
use any of the grant funds awarded in this Agreement for the purpose of lobbying as
defined in the State of Michigan’s lobbying statute, MCL 4.415(2). “‘Lobbying’ means
communicating directly with an official of the executive branch of state government or an
official in the legislative branch of state government for the purpose of influencing
legislative or administrative action.” The Grantee shall not use any of the grant funds
awarded in this Agreement for the purpose of litigation against the State. Further, the
Grantee shall require that language of this assurance be included in the award documents
ofall subawards at all tiers.


Conflict of Interest


No member of the legislative, judicial, or executive branch of state or federal
governments or any local unit of government official shall personally benefit from this
Grant Agreement. No member of the Grantee’s Board of Directors, its employees,
partner agencies or their families shall have any personal benefit from this Grant
Agreement,


Cancellation


This Grant Agreement may be canceled by 30 day written notice by either party. If
canceled, Grantee must provide a Final Report and invoice within 30 days of
cancellation.
Cancellation or reduction of the grant by the Grantor may be for default by the Grantee,
lack of further need for the service at the location named in the contract, or conviction of
criminal offense(s) as set forth below.

Default is defined as the failure of the Grantee to fulfill the obligations of the Grant
Agreement. In case of default by the Grantee, the Grantor may cancel the Grant
Agreement immediately and all unused grant funds must be returned by the Grantee
immediately. All disallowed costs and overpayments shall also be returned by the
Grantee within 30 days of cancellation.

In the event the Grantor no longer needs the service specified in the grant due to
department changes, changes in laws, rules or regulations, relocation of offices, or no
longer has appropriations to fund the grant, the Grantor may cancel or reduce the grant by
giving the Grantee written notice of such cancellation or reduction 30 days prior to the
date of cancellation or reduction. All costs incurred by the Grantee between the grant
cancellation or reduction notice and the cancellation or reduction date, with the exception
of previously budgeted personnel costs and non-cancelable obligations, must be approved
by the Grant Administrator prior to their incurrence. No costs shall be allowed after the
grant has been cancelled.

The Grantor may immediately cancel the grant without further liability to the State, its
departments, agencies and employees if the Grantee, an officer of the Grantee, or an
owner of the Grantee is convicted of a criminal offense incident to the application for or
performance of a State, public, or private contract or subcontract; or convicted of a
criminal offense including but not limited to any of the following: embezzlement; theft;
forgery; bribery; falsification or destruction of records; receiving stolen property;
attempting to influence a public employee to breach the ethical conduct standards for
State employees; violation of a state or federal antitrust statute; or any other criminal
offense which in the sole discretion of the Grantor, reflects on the Grantee’s business
integrity.


Closeout


(A) Upon issuance of final payment from the State, the Grantee releases the State of all
claims against the State arising under this Agreement. Unless otherwise provided in this
Agreement or by State law, final payment under this Agreement shall not constitute a
waiver of the State’s claims against the Grantee.

(B) The Grantee shall immediately refund to the State any payments in excess of the
costs allowed by this Agreement.


Electronic Funds Transfer


Payments under this Agreement are encouraged to be processed by Electronic Funds
Transfer (EFT). The Grantee can register to receive payments by EFT at the SIGMA
Vendor Self Service web site (www.michigan.gov/SIGMAVSS)
       R.   Freedom of Information


            This is a grant from public funds and records associated with it are subject to disclosure
            under Michigan’s Freedom of Information Act.


Ii.   SPECIAL TERMS AND CONDITIONS


      A.    Statement of Purpose


            The Muskegon Farmers Market (MFM) is a cornerstone of food access, local economic
            development, and community connection in Muskegon County. MFM was moved to its
            current location (on 4 acres of prime real estate in downtown Muskegon) eleven years
            ago through a public-private partnership funded capital campaign that raised $4 million,
            demonstrating strong community support and confidence in MFM’s mission.


            Through its central location, transit accessibility, and robust nutrition incentive programs,
            MFM reduces barriers to healthy food access while keeping food dollars circulating
            locally. Since relocating to its current downtown location in 2014, MFM has grown into
            one of Michigan’s most successful farmers markets, serving between 6,000-8,000
            visitors on peak summer Saturdays and approximately 1,000 visitors during Winter
            Market Saturdays.


            In 2025 MFM hosted 38 farmers selling fresh produce and meat, along with 48 additional
            food artisans and prepared food vendors in 170 stalls. Of the 38 farmers, 12 were based in
            Muskegon County. The remaining farmers represented a strong regional footprint: Kent
            County (8), Mason (3), Newaygo (2), Mecosta (1), Oceana (7), and Ottawa (5). This
            regional sourcing model reinforces MFM’s role as a critical aggregation hub for West
            Michigan agricultural producers while ensuring Muskegon County residents have direct
            access to locally grown food.


            Most farmers occupy multiple stalls to accommodate high product volume. While
            individual vendors do not consistently track total food volume brought to market,
            sustained vendor retention, stall utilization, and repeat participation serve as strong
            indicators of MFM’s sales viability and economic benefit.


            The MFM is a major access point for SNAP/EBT and Double Up Food Bucks in our
            region. In 2025, combined EBT and Double Up Food Bucks redemptions at the market
            represented a significant share of overall market activity, demonstrating strong demand
            for affordable, locally grown and produced food among Muskegon County residents.
MFM plays an important role in:
     e    Strengthening wholesale and institutional food purchasing relationships within
          the community.
     e    Ensuring more dollars, including federal nutrition dollars, remain in the local
          economy, supporting farm viability, related supply chains, and community-
          based employment.
     e    Increasing food security among vulnerable community members such as low-
          income households, seniors, and families with children.
     e    Providing educational opportunities for local schools and training programs to
          improve nutrition, support entrepreneurship, and strengthen local food supply
          chains.


In addition to the traditional farmers market, MFM houses Kitchen 242, a licensed,
shared-use commercial kitchen that links local agriculture and affordable food access.
Kitchen 242 is a critical driver of food entrepreneurship and economic mobility in
Muskegon County. It allows emerging food businesses to test products, refine their
offerings, build brand recognition, and develop a loyal customer base before scaling into
permanent brick-and-mortar locations or advancing to their next stage of growth.
Currently, 20 small food businesses operate from Kitchen 242 today. Over the past 10
years, numerous graduates have transitioned into independent retail and production
spaces.



While MFM’s success is clear, the current space constrains MFM’s growth and
prevents scaling the impact it can have on food security, nutrition, and agricultural
prosperity in our community. For instance, the barn can accommodate approximately
30 vendors, but weekly demand consistently exceeds capacity. MFM turned away at
least 10 vendors for the winter market due to space constraints alone, and vendors
continue to make additional requests for space.

In addition, MFM reduces educational programing during the months of December
through April when the barn is fully occupied by vendors on market days, leaving no
space for nutrition education activities or food demonstrations. The lack of flexible and
dedicated space limits both the number of participants we can serve and the depth of
programming we can offer.

Similarly, Kitchen 242’s growth has stretched the facility’s capacity beyond its limits.
Freezer and cooler space are regularly full to over-filled most of the year, and MFM has
had to provide auxiliary cold storage. Moreover, crowding and the current kitchen layout
create several operational inefficiencies that affect daily use, food safety, and overall
program impact. Limited cooler, freezer, and dry storage space forces kitchen users to
constantly move products to access their own ingredients, slowing production and
increasing the risk of temperature contro! lapses. The current MFM accommodates 20
food businesses, and Kitchen 242 regularly has to turn away new food entrepreneurs
because of these capacity constraints and food safety risks.
MFM Need for Expansion
To meet rising demand for affordable, healthy food and to remove capacity constraints
that limit MFM and Kitchen 242’s impact, the MFM proposes a $1.5 million expansion
of the market’s barn facility and Kitchen 242, of which MFM requests $481,267 from the
Michigan Department of Agriculture. MFM plans to launch a private capital campaign to
fully fund the expansion (see Section II.C. Budget). The overall expansion will directly
support local farmers, food entrepreneurs, and consumers while maximizing the impact
of current EBT and incentive programs by:


e   Enabling MFM to meet documented vendor demand for larger space for year-round
    sales of agricultural producers and food entrepreneurs.
e   Increasing Kitchen 242’s ability to accommodate more food entrepreneurs grow their
    food production and strengthen the MFM’s role as an economic and food access hub.


MFM expansion aligns with several other community development opportunities
that will complement the expansion’s impact and vice versa. The proposed market
expansion will serve as a catalyst for increased pedestrian activity in the downtown core
by strengthening access to fresh food in a highly walkable, transit-connected area.
Located near the MATS transit system and in a neighborhood currently lacking a full-
service grocery store, the market is uniquely positioned to meet daily food needs while
drawing consistent foot traffic.


This investment also complements multiple affordable housing developments completed
or underway within blocks of MFM        adding more than 140 new housing units to the
downtown, As new residents move into the area, the expanded market will play a critical
role in supporting food security, neighborhood vitality, and a more active, connected
downtown. This accessibility increases customer reliability and makes the market an
attractive sales outlet for food vendors,


Completing the MFM expansion could dovetail with the City of Muskegon’s early-stage
plans for establishing a food co-op to improve the community’s access to healthy foods
and farmers’ access to local markets—a separate initiative not part of this grant.


As the market plans for its next phase of expansion, MFM anticipates again seeking
public investment to help offset construction costs, while also leveraging general fund
resources and increased revenue generated by additional vendors to support ongoing
operations and maintenance. This blended funding approach reflects a sustainable model
that combines public support with earned revenue to ensure long-term financial stability,


Conclusion
The expansion of MFM and Kitchen 242 is a strategic, high-impact investment in food
security, local agriculture, and community well-being. By addressing infrastructure
limitations, the project will significantly increase year-round access to healthy, affordable
food for Muskegon County residents—particularly those most vulnerable to food
insecurity.
With proven leadership in nutrition incentive programs and strong community demand,
MFM is uniquely positioned to leverage MDARD support to deliver lasting, measurable
outcomes for families, seniors, farmers, and food entrepreneurs.



Statement of Work


1.   Expansion of Kitchen 242 ($231,267)
     MFM shall expand commercial kitchen capacity to support 8 to 20 additional food
     entrepreneurs, year-round production, smal] business growth, non-profit nutrition
     programming, and other events that benefit the community and Michigan agriculture.
     Improvements shall include but not be limited to increasing and improving cold and
     dry storage capacity, reconfiguring the kitchen to improve food safety and efficiency,
     and relocating the garage. The kitchen expansion shall be a separable project able to
     proceed independently from other facility improvements.

2.   Barn Expansion ($250,000)
     MFM shall increase capacity of vendor stalls to accommodate up to XX farmers and
     food entrepreneurs in support of the local economy and agriculture. In addition, MFM
     shall undertake to improve the function and aesthetics of the Barn space to attract
     customers and improve shopping experiences that drive value for MFM farmers and
     food vendors, increase local utilization of federal nutrition funding, and expand
     access to healthy food in Muskegon and the region. MFM shall undertake
     improvements to the barn to accommodate non-market day rentals that increase
     revenue and sustainability of MFM’s support for local food and agriculture.

3. Capital Campaign
     MFM shall raise the additional funds necessary to complete the following
     complementary improvements to the existing facilities:
     e   Restroom expansion ($212,677)
     e Additional improvements to barn capacity ($785,580)

4.   Construction Phasing Plan & Contingency Approach
     MFM shall approach construction in phases to ensure responsible financial
     stewardship and flexibility given the various funding sources for overall facility
     improvements. MFM shall mitigate the risk of incomplete work by funding projects
     as funding becomes available, without compromising the integrity of the overall
     project.


5.   Monitoring and Evaluation
     MFM shall monitor and evaluate the progress toward completing the construction
     milestones of the project and report to MDARD in accordance with reporting
     requirements at Section F. Included in this reporting, MFM shall assess and report
     risks to cost, schedule, and performance of all construction and capital fundraising as
     well as MFM’s risk mitigation plans. MFM shall also report projected impacts to
         increased number of farm vendors, food vendors, educational impacts, MFM revenue
         generation, and other impacts MFM    identifies.


C.   Budget


     This is a cost reimbursement-based grant funded by state general funds.


       Description                                  Source                            Total
                                                                                      Cost
       Phase |: Kitchen Expansion                   MDARD                 $              231,267
       Phase |: Initial Barn Improvements           MDARD                 $              250,000
       Phase 2: Restroom & Kitchenette              Capital Campaign    | $              212,677
       Expansion
       Phase 3: Final Barn Imptovements             Capital Campaign          $          785,580
              TOTAL                                                       $            1,479,524


D.   Payment Schedule


     Payments will not be made until reports have been received by the Grant Administrator
     as required in Section II-G. Grantee’s invoice must include a reconciliation ofactual
     expenses incurred and all supporting documentation during the reporting period for
     reimbursement.


     Monthly reimbursement requests will be considered on an as-needed basis and must be
     discussed and agreed upon by all parties prior to the request. A monthly billing cadence
     must be agreed to at least 45 days prior to the change from a quarterly to monthly
     payment schedule.

E.   Audit


     The project will be subject to audit by the State who may review the adequacy of the
     financial management/reporting system during or at any time subsequent to the award.


F.   Reporting


     Grantor and grantee agree to communicate on a frequent basis about grant
     implementation, coordination with larger grantor objectives, and other related matters
     through in-person meetings, phone calls, Zoom and Teams calls, at events, and via email
     as needed.


     Reports are due to the grant administrator per the following schedule:


     Report                                                                              Deadline
     FY26 Q3 Report (April - June)                                                   July 15, 2026
     FY26 Q4 Report (July - September)/Fiscal Year Closeout*                      October 15, 2026
FY27   QI Report (October - December)                                   January   15, 2027
FY27   Q2 Report (January - March)                                        April   15, 2027
FY27   Q3 Report (April - June)                                            July   15, 2027
FY27   Q4 Report (July - September)/Fiscal Year Closeout**              October   15, 2027
FY28   QI/Final Report (October - December)                             January   15, 2028

Ata minimum, each report shall contain an invoice and:
   a. A narrative explaining the status of the goals, objectives, and milestones outlined
        in the proposal, as well as cost, schedule, and performance risks and mitigation
        actions as described in section II.B.5.
   b. A financial summary as compared to the budget submitted. Summary must
      include a reconciliation of actual expenses incurred during the reporting period
      for reimbursement and all supporting documentation (vendor invoices, payment
        receipts, payroll detail, etc.).



Additional Information

*By September 15, 2026, Grantee shall submit an estimated billing for expenditures
incurred and not reimbursed for in the fiscal year ending September 30, 2026. This is in
advance of the Q4 reporting deadline to accommodate the state’s fiscal year end closing
process.



**By September 15, 2027, Grantee shall submit an estimated billing for expenditures
incurred and not reimbursed for in the fiscal year ending September 30, 2027. This is in
advance of the Q4 reporting deadline to accommodate the state’s fiscal year end closing
process.
                d
                    PROFESSIONAL SERVICES AUTHORIZATION
        Date        30 April 2026
       Client       City of Muskegon, Ms. Ann Marie Meisch, MMC, City Clerk, [email protected]
    Architect       Integrated Architecture, 840 Ottawa Avenue NW, Grand Rapids, Michigan 49503


      Project       Muskegon Farmers Market Renovation + Addition
   IA Project       20250503
Authorization       002


                    This form authorizes Integrated Architecture to provide professional services on the above-mentioned project. Such
                    services shall be performed within the guidelines described below.


                    PROJECT TITLE TO BE USED


                    Muskegon Farmers Market Renovation + Addition


                    SCOPE OF WORK TO INCLUDE


                    Work effort and associated costs for project is based on Concept Design prepared by IA which includes interior
                    renovations, 520sf garage expansion, cooler/freezer area renovations, as well as TBD extended scope of work that is to
                    be determined. Construction Documentation will be completed in BIM format.


                    We understand that the scope of work and related professional services in Step 2b is undetermined. We have suggested
                    hourly allowances to assist the City with optimizing the remaining grant funds for use in various building improvements
                    at the City's discretion.


                    Hourly CA services may include effort for architectural and structural shop drawings, submittals, RFI's, on-site progress
                    review meetings, punch list/closeout walkthrough, attendance at OACM meetings. CA excludes 3rd party Design Review,
                    Inspections and Functional Performance Testing/Commissioning as may be necessary to meet energy code
                    requirements (assumed direct with contractor).

                    METHOD OF COMPENSATION/BUDGET

                    xX          Fixed Fee for Defined Scope of Work:
                                Implementation Phase 1 | Garage + Freezer/Cooler:
                                    e    Architectural IA                                                 $24,000.00
                                    e    Structural Engineering JDH                                       $5,000.00
                                    e    MEP Engineering E3M                                              $8,500.00
                                       e — Civil Engineering
                                             o   Topographical Survey F&V                   $4,200.00
                                             o    Construction Documents F&V                $5,200.00
                                       e     Contractor Selection Assistance IA (Allowance) $2,000.00

                     x]          Hourly Allowance for Defined Scope of Work:
                                 Conceptual Design & Fundraising Graphic Support:
                                       e     Architectural IA (Allowance)                                  $10,000.00

                    xX           Hourly Allowance for Defined Scope of Work:
                                 Construction Administration                                               Hourly




                     INTEGRATED ARCHITECTURE | 840 Ottawa Avenue NW | Grand Rapids, MI 49503 | 616.574.0220 | intarch.com                 1of3
Muskegon Farmers Market - Professional Services Authorization 002
IA Project No. 20250503                                                                                           30 April 2026




Reimbursable expenses include, but are not limited to, municipal fees, printing, renderings, telephone, travel, and
postage charges. We recommend an allowance of $1,500 for expenses such as these. These costs are in addition to Basic
Services and reimbursable to Integrated Architecture. Reimbursable expenses will be billed at direct expenses plus 10%
(consultants fee x 1.10).


ADDITIONAL PROVISIONS


e    f modifications to previously issued Concept, Bidding, Permitting or Construction Docurnents are requested by
     Owner or Construction Manager to mitigate cost increases and/or lead-time impacts, the Architect will perform the
     work as an additional service.
*    Coordination with Design/Build contractors under separate contract with owner/contractor, occurring after the
     issuance of permit documents, will be performed on an hourly basis in addition to the professional services costs
     indicated.
     The Architect commitments as set forth in this Agreement are based on the expectation that all of the services
     described in this Agreement will be provided. In the event Client later elects to reduce design professional's scope of
     services, Client hereby agrees to release, hold harmless, defend and indemnify Architect from any and all claims,
     damages, losses or costs associated with or arising out of such reduction in services.
e    The Architect shail not be responsible for any acts or omissions of the Contractor, any subcontractor, any entity
     performing any portions of the Work or any agents of employees of any of them. The Architect does not guarantee
     the performance of the Contractor and shall not be responsible for the Contractor's failure to perform its Work in
     accordance with the Contract Documents or any applicable laws, codes, rules or regulations.
e    The Architect shall not have control over, charge of, or responsibility for the construction means, methods,
     techniques, sequences or procedures, or for safety precautions and programs in connection with the Work, nor shall
     the Architect be responsible for the Contractor's failure to perform the work in accordance with the requirements of
     the Contract Documents or for acts or omissions of the Contractor or of any other persons or entities performing
     portions of the Work.
e    Compensation for Additional Services of the Architect's consultants shall be the amount invoiced to the Architect plus
     10% (consultants fee x 1.10).
e    Instruments of Service: Drawings, specifications, and other documents, including those in electronic format, prepared
     by the Architect and the Architect's direct consultants, are Instruments of Service for use solely with respect to this
     Project. The Architect and the Architect's consultants shall be deemed the authors and owners of their respective
     Instruments of Service and shall retain all common law, statutory and other reserved rights, including copyrights.
*    Terms of Payment: Payments are due and payable 30 (thirty) days from the date of the Architect's invoice. Amounts
     unpaid 45 (forty-five) days after the invoice date shall bear interest at the rate of 1.5% per month or maximum legal
     rate, whichever is less, or in the absence thereof at the legal rate prevailing from time to time at the principal place of
     business of the Architect.
e    Risk Allocation Limitations: Integrated Architecture’s liability for any and all claims, including but not limited to, those
     claims arising out of the Architect's professional services; negligence; professional errors or omissions; strict liability;
     breach of contract or warranty, expressed or implied; gross misconduct; or misrepresentations shall be limited to the
     amount of our fee paid for services performed on that particular project under this agreement.
e    Excludes: landscape design, geotechnical, environmental, AV/IT/Low-Voltage/Security/Fire
     Protection system design and engineering, food service design, deep foundation engineering, plan review/permit fees,
     additional effort for multiple/early bid packages, FF&E, sustainability certifications, revisions to documents for value
     engineering or cost-savings revisions following the issuance of construction documents, as-built construction
     documents, cost estimation.


FORM OF AGREEMENT


xX         This authorization, signed by both parties, will serve as a mutual agreement to the terms defined above.




INTEGRATED ARCHITECTURE   |   840 Ottawa Avenue NW   |   Grand Rapids,
                                                                  MI 49503 |   616.574.0220   |   intarch.com              20f3
Muskegon Farmers Market - Professional Services Authorization 002
IA Project No. 20250503                                                                                                    30 April 2026




CONTRACT SUMMARY


Professional Services Authorization 001 dated 13
May 2025                                                                 $          5,000.00      Stipulated Sum, plus reimbursable expenses


Professional Services Authorization 002 ~ Fixed
Fee                                                                      $         48.900.00      Fixed Fee, plus reimbursable expenses


Professional Services Authorization 002 ~ Hourly                                                  Hourly Allowance, plus reimbursable
Allowance                                                                $         10,000.00      expenses




Prompt written notice is required if the services indicated are not needed.

PROPOSED BY |         :           \                                               AUTHORIZATION GIVEN BY (Client):




 Integrated Architecture Signature                                                 Client Signature




 Scott Vyn, Design Principal                                                         YAR
                                                                                       A por                            Jeo scX\
 (Printed Name and Title)                                                          (Printed Name and Title)

  18 May 2026
                                                                                            S-\€-2024b
 (Contract Date)                                                                   (Date)



                                      p:\2025\20250503_muskegon_farmers_market\contracts\draft\260430_psa_002_cd_fundraising_graphics_ca.docx




 INTEGRATED ARCHITECTURE | 840 Ottawa Avenue NW | Grand Rapids, MI 49503 | 616.574.0220 | intarch.com                                   30f3
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                                                 MUSKEGON ©
                                             FARMERS.
                                             x Market *




Proposal for the Expansion of the Muskegon Farmers Market and Kitchen 242

Executive Summary


The Muskegon Farmers Market (MFM) is a cornerstone of food access, local economic development, and
community connection in Muskegon County. Since relocating to its current downtown location in 2014, the
market has grown into one of Michigan’s most successful farmers markets, serving between 6,000—8,000
visitors on peak summer Saturdays and approximately 1,000 visitors during Winter Market Saturdays.

The Muskegon Farmers Market is a major access point for SNAP/EBT and Double Up Food Bucks in our region.
In 2025, combined EBT and Double Up Food Bucks redemptions at the market represented a significant share
of overall market activity, demonstrating strong demand for affordable, locally grown and produced food
among Muskegon County residents. The Michigan Farmers Market Association (MIFMA) has informally noted
that the Muskegon Farmers Market ranks among the highest-performing markets in the state for EBT and
Double Up usage, second only to Eastern Market in Detroit; while this comparative information is not publicly
published, our reported redemption totals provide clear, measurable evidence of the market’s role in
improving food access and supporting both shoppers and local farmers. Summary of MFM EBT/Double Up
Food Bucks since 2010 is included.

Economic and Food Access Impact

Measuring the full economic and food access impact of the Muskegon Farmers Market presents challenges
common to farmers markets nationwide. Individual farmers and food vendors are reluctant to share
proprietary sales data, and precise measurement of total food volume sold is difficult to capture consistently
across independent businesses. For this reason, our primary impact indicators focus on vendor participation,
regional sourcing, consumer traffic, food access utilization, and small business development outcomes.

In 2025, the Muskegon Farmers Market hosted 38 farmers selling fresh produce and meat, along with 48
additional food artisans and prepared food vendors. Of the 38 farmers, 12 were based in Muskegon County.
The remaining farmers represented a strong regional footprint: Kent County (8), Mason (3), Newaygo (2),
Mecosta (1), Oceana (7), and Ottawa (5). This regional sourcing model reinforces the market’s role as a critical
aggregation hub for West Michigan agricultural producers while ensuring Muskegon County residents have
direct access to locally grown food.

The market operates 170 stalls and supports 86 farmer and food vendors during peak season. Most farmers
occupy multiple stalls to accommodate high product volume. From June through September (and often into
October), the market attracts 6,000 to 8,000 or more visitors on Saturdays alone according to two Rapid

Market Surveys that we have had conducted (one by MSU Extension in 2016 and one by MIFMA in 2024),

generating significant direct-to-producer sales and increased downtown economic activity.


While individual vendors do not consistently track total food volume brought to market, sustained vendor

retention, stall utilization, and repeat participation serve as strong indicators of sales viability and economic

benefit. The market’s consistently high EBT and Double Up Food Bucks redemption rates demonstrates public

demand for food products resulting in revenue generation for local producers. These programs channel federal

nutrition dollars directly to farmers, multiplying their economic effect within the local food economy. From

May through November, the Muskegon Farmers Market offers 170 stalls across 31 Saturday market days,

reaching full stall capacity for 15 of those weeks—demonstrating sustained vendor demand and strong market

utilization during peak season. During the winter market season, from December through April, the market

operates at capacity with nearly 30 vendors participating each week, demonstrating year-round demand and

sustained revenue opportunities for local food businesses.

Consistent vendor retention reflects strong partnerships with the city as well as the strength, stability, and

long-term value the market has within the regional agricultural community. Two farm families have collectively

been selling at the market for nearly 100 years, demonstrating multi-generational commitment and sustained

economic viability. In addition, nine farmers have participated consistently for 25 to 60 years, and six more

have maintained vendor relationships for 10 years or longer. This level of longevity is a strong indicator of the

market’s reliability as a sales outlet, its ability to support farm succession, and its role in maintaining a stable,
resilient local food system.

Here are some other things that we do know:


In addition to direct-to-consumer sales, the Muskegon Farmers Market plays an important role in

strengthening wholesale and institutional food purchasing relationships within the community. In 2025,

Muskegon-area schools purchased approximately 134,000 pounds of locally grown produce, representing an

investment of $168,000 in the regional agricultural economy.

Several farmers who participate in the Muskegon Farmers Market also sell wholesale to local institutions.

While wholesale transactions occur outside of the market itself, we can verify that at least one market farmer
was directly involved in these school purchases. These relationships were likely facilitated through

connections, visibility, and trust built at the farmers market, which serves as a key networking and relationship-

building platform for local producers and institutional buyers.

This institutional purchasing demonstrates that the farmers market functions not only as a retail outlet, but

also as a catalyst for broader food system economic activity. By supporting farmer viability, increasing

production capacity, and fostering buyer relationships, the market helps local producers access larger-volume

sales channels that extend its economic impact well beyond weekly market transactions.

Since its inception in 2016, the Fruitport Lions Senior Power of Produce program has generated $460,846 in

direct produce purchases from local farmers at the Muskegon Farmers Market, representing a significant and

sustained investment in the regional agricultural economy. This program not only increases food access for

older adults, but also ensures that program dollars flow directly to local producers.
Research consistently shows that spending with locally owned businesses has a strong economic multiplier
effect. For every $1 spent locally, approximately $0.68 remains in the local economy, supporting farm viability,
related supply chains, and community-based employment. Applying this multiplier, the Senior Power of
Produce program has contributed well beyond its direct spending, reinforcing the farmers market’s role as an
economic engine and a food access hub for Muskegon County’s senior population.

In addition to the Senior Power of Produce program, the Muskegon Farmers Market partners with two
Muskegon County townships to administer senior nutrition initiatives funded through township senior mileage
allocations. In 2025, these partnerships directed $18,000 in township-supported produce certificates to senior
residents for use at the market. This collaboration has been sustained for at least five years (approximately
$100,000) creating a reliable, recurring investment in both senior nutrition and local agriculture. By converting
local tax-supported senior millage dollars into direct produce purchases, the program strengthens food access
for older adults while channeling public funds directly to local farmers, reinforcing the market’s role as both a
community health resource and an economic driver.

Since launching in 2014, the Muskegon Farmers Market’s Kids Power of Produce (POP) Program has directed
$71,168 in produce purchases to local farmers. This initiative not only introduces children to fresh, healthy
foods, but also creates a direct and consistent revenue stream for participating growers. By empowering youth
to make their own produce purchases, the program strengthens lifelong healthy eating habits while
simultaneously reinvesting dollars into the local agricultural economy. The Kids POP program demonstrates
how food access initiatives at the market generate measurable economic impact, supporting farmer
sustainability while fostering the next generation of informed consumers.

In this school year's group of 54 Muskegon Career Tech Center Hospitality & Food Management students, 84%
of students reported they had never been to the MFM before coming with a class field trip. 74% had never
been to any farmers market. 79% reported not knowing how a farmers market worked. After visiting, 100% of
students reported being confident that they could visit any farmers market in the future. 94% reported they
were very likely to visit the MFM with their parents or family members in the future. It is all about having kids
and families build relationships with their food, their farmers and their producers!

The Muskegon Farmers Market offers hands-on educational field trips for K-12 students designed to connect
youth with local food, agriculture, and healthy eating. Supported by grant funding, these field trips bring
students directly to the market for immersive learning experiences. Last year, the market received funding to
serve Muskegon Public Schools, a program that has been in development and implementation for nearly a
year. In 2025, an additional $13,000 in grant funding was awarded to expand these field trip opportunities to
 all other school districts in Muskegon County.

During each visit, students participate in interactive activities that may include a scavenger hunt throughout
the market to learn about farmers, seasonal produce, and food systems, as well as a hands-on culinary activity.
Each student also receives tokens to shop the market and select fresh produce to take home, reinforcing
lessons around food choice, nutrition, and local agriculture. These field trips support experiential learning,
strengthen food literacy, and build meaningful connections between students, local farmers, and the broader
 community food system.

 Kitchen 242: Small Business Incubation & Economic Mobility
Kitchen 242, the market’s shared-use commercial kitchen, is a critical driver of food entrepreneurship and
economic mobility in Muskegon County. Currently, 20 small food businesses operate from Kitchen 242 today.

Over the past 10 years, numerous graduates have transitioned into independent retail and production spaces.


Recent examples include:


    *«   490 Bakery, which now operates a retail storefront in the Lakeside Business district.


    ¢    Soulshine Juice, which has established its own production facility in Muskegon County and a retail

         location in downtown Grand Haven.

Fourteen of the twenty current Kitchen 242 entrepreneurs currently use or have previously used the

Muskegon Farmers Market as their primary storefront. This platform allows emerging food businesses to test

products, refine their offerings, build brand recognition, and develop a loyal customer base before scaling into

permanent brick-and-mortar locations or advancing to their next stage of growth. This market-to-retail pipeline

demonstrates clear economic development outcomes, including small business creation, job generation,
increased commercial occupancy, and ongoing downtown revitalization.

Broader Economic Contribution


Taken together, the Muskegon Farmers Market and Kitchen 242:

    e«   Support 100+ food-based small businesses annually


    e    Drive substantial seasonal foot traffic to downtown Muskegon

    e    Circulate federal nutrition assistance dollars directly to local farmers

    e    Serve as an entry point for emerging food entrepreneurs


    e    Strengthen the West Michigan regional food system

Even where precise food volume metrics are unavailable, vendor participation levels, regional sourcing data,

EBT sales and redemption rates, stall utilization, and documented small business growth provide consistent

and credible indicators of economic and community impact.

To meet rising demand for affordable, healthy food and to remove capacity constraints that limit vendor

participation and food production, the MFM proposes a $1.5 million expansion of the market’s Barn facility

and Kitchen 242. The project seeks $499,000 from the State of Michigan, with the remaining balance raised
through a private capital campaign. Construction may occur in phases, allowing flexibility and fiscal
responsibility.


The Muskegon Farmers Market was moved to its current location (on 4 acres of prime real estate in downtown

Muskegon) eleven years ago through a public/privately funded capital campaign that raised $4 million,

demonstrating strong community support and confidence in the market’s mission. As the market plans for its

next phase of expansion, we anticipate again seeking public investment to help offset construction costs, while

also leveraging general fund resources and increased revenue generated by additional vendors to support

ongoing operations and maintenance. This blended funding approach reflects a sustainable model that

combines public support with earned revenue to ensure long-term financial stability.
Phase One of the expansion easily could begin on July 1, 2026, with completion anticipated by June 30, 2027.
This phase will focus on core infrastructure improvements necessary to support increased market operations
and vendor capacity. Concurrently, the organization will conduct a capital campaign to raise funds for Phases
Two and Three, ensuring continued project momentum while building the financial resources needed for
subsequent stages of development. This phased approach allows construction and fundraising efforts to
proceed in parallel, reducing overall project risk and supporting timely completion of the full expansion plan.

This expansion will directly strengthen food security in Muskegon County by increasing year-round access to
local food; expanding cold storage and production capacity for food entrepreneurs; supporting farmers and
vendors; and scaling proven nutrition incentive and education programs.

The current space prevents scaling our food security and nutrition educational programing primarily during the
months of December through April, when the barn is fully occupied by vendors on market days. During this
time, there is no available space for nutrition education activities or food demonstrations. While we have
provided many nutrition-related activities to the community, the lack of flexible and dedicated space limits
both the number of participants we can serve and the depth of programming we can offer. We have local
programs that the market offers annually to kids and seniors that have been funded by local grants for 10
years. The Kids Power of Produce program expanded its offering last year and we are hosting field trips during
the week for teachers to bring their classes to the market. We recently received grant funding to continue that
programming for 2026 and expand its reach to all schools in Muskegon County. We also work with several
community partners to provide educational lessons and other resources; Muskegon Area Intermediate School
District, MSU Extension are two examples.

Community Need: Food Insecurity in Muskegon County

Muskegon County continues to face significant food insecurity, particularly among low-income households,
seniors, and families with children. Rising food costs, limited access to fresh produce, and seasonal gaps in
local food availability place ongoing strain on household food budgets.

The MEM has become a trusted and accessible solution. Through its central location, transit accessibility, and
robust nutrition incentive programs, the market reduces barriers to healthy food access while keeping food
dollars circulating locally. Demand for the market’s services—both from customers and food producers—now
exceeds existing infrastructure capacity, limiting the market’s ability to fully meet community need.

The proposed market expansion will serve as a catalyst for increased pedestrian activity in the downtown core
by strengthening access to fresh food in a highly walkable, transit-connected area. Located near the MATS
transit system and in a neighborhood currently lacking a full-service grocery store, the market is uniquely
positioned to meet daily food needs while drawing consistent foot traffic. This investment directly
complements multiple affordable housing developments completed or underway within blocks of the
 market—adding more than 140 new housing units to the downtown. As new residents move into the area, the
 expanded market will play a critical role in supporting food security, neighborhood vitality, and a more active,
 connected downtown. This accessibility increases customer reliability and makes the market an attractive sales
 outlet for food vendors.

 in addition to foot traffic, EBT and Double Up Food Bucks sales are a major driver for farmers and food
 vendors. These programs create predictable, values-aligned revenue streams and significantly increase
purchasing power among customers who might otherwise have limited access to fresh food. Vendors

consistently cite these incentive programs as a reason for choosing to sell at MFM, as they translate directly

into higher sales volume and community impact.

MFM has a clear vendor selection priority: farmers and food vendors are prioritized over non-food vendors.

Food access remains the core mission. Expanded space would allow us to meet documented demand by

increasing the number of food-focused vendors, extending seasonal participation, and accommodating larger

or year-round agricultural producers—without diluting the market’s identity.


We would like to reiterate that funds from this grant will be used for the expansion of the Muskegon Farmers

Market’s existing infrastructure to include further buildout of the commercial kitchen and barn space. This

investment, built on proven demand, will allow Kitchen 242 and the barn to support more vendors, increase

year-round food production, and strengthen the market’s role as an economic and food access hub. These

expansions directly support existing farmers, food entrepreneurs, and consumers while maximizing the impact
of current EBT and incentive programs.

The completion of these immediate expansion projects will also facilitate a longer-term view to contemplate

additional long-term space strategies. We believe one of the keys to strengthening food access in Muskegon

includes the installation of a food co-op. However, the concept of a food co-op is not part of this funding

request. The city believes a food co-op is worthy of future consideration and remains in an early, exploratory

phase. We understand developing a viable co-op would require significant additional planning, feasibility
analysis, capital investment, and community engagement.

However, by focusing on scalable, near-term investments with demonstrated success, this project prioritizes

immediate economic development, small business growth, and improved food access, while preserving

flexibility to explore additional models—such as a food co-op—at a future time and location, once appropriate

planning and resources are in place.

Construction Phasing Plan & Contingency Approach


To ensure responsible financial stewardship and flexibility, the Muskegon Farmers Market expansion is

structured in three independent, scalable phases. Each component can be completed separately as funding

becomes available, without compromising the integrity of the overall project.

Phase 1: Expansion of Kitchen 242 — $231,267

This phase increases commercial kitchen capacity to support additional food entrepreneurs, year-round

production, and small business growth. The kitchen expansion is fully selfcontained and can proceed

independently.

Phase 2: Restroom Expansion & Event Support Kitchenette — $212,677


This phase addresses critical infrastructure constraints that directly impact visitor experience, vendor

operations, and event capacity. The market currently serves 6,000 - 8,000 visitors on peak Saturdays during

summer months. Existing restroom facilities in the barn include:

   e   Two women’s stalls
   e         One men’s stall and one urinal

With current attendance levels, restroom lines regularly form, particularly during peak hours and major events.
As we continue to expand vendor participation and increase winter and shoulder-season programming,
restroom capacity has become a limiting factor in our ability to grow safely and efficiently. There are seasonal
restrooms at the Morris St. pavilion which are used May — October — 2 stalls in the women’s and one stall plus
a urinal in the men’s.

The proposed expansion would:

   e         Increase restroom capacity to meet current and projected attendance

    e        Improve ADA accessibility and visitor comfort

    e        Support longer dwell times, which correlate directly with increased vendor sales

    e        Strengthen our ability to host larger events and year-round programming

    e        Addasmall support kitchenette to serve barn-based events requiring water access and light prep space

This phase ensures that infrastructure keeps pace with economic activity. Without restroom expansion, growth
in vendor participation and event programming will be constrained.




Phase 3: Barn Expansion — $1,035,580

The barn expansion represents the long-term growth phase, allowing for increased winter capacity, additional
vendor stalls, and enhanced programming space. This is the largest capital component and would proceed as
additional funding sources are secured.

As part of the barn expansion, upgrading the 12 existing overhead doors to high-visibility, insulated glass-panel
doors represents a strategic investment in economic growth. Increased natural light improves product visibility,
enhances the customer experience, and supports longer dwell times—factors directly correlated with higher
vendor sales. Modern insulated doors would also improve energy efficiency and winter climate control,
strengthening year-round operations and vendor retention. Additionally, greater transparency from the street
increases foot traffic and reinforces the market’s role as a downtown economic anchor. This could happen
prior to the rest of the expansion and could be part of Phase 1. $87,750



If Funding Falls Short

 lf funding does not fully support all requested components or we fail to reach fund raising goals, construction
would proceed in the following priority order:

        1.    Kitchen 242 Expansion (Highest Priority) - $231,267
              Directly supports small business incubation and food production capacity.

        2.    Improvements to Existing Barn area (Infrastructure Priority) — replace overhead barn doors, 12 each
              $87,750
    3,   Restroom Expansion (Infrastructure Priority) $212,677
         Necessary to accommodate current visitor volume and prevent infrastructure bottlenecks that limit

         economic growth. The Restroom expansion and kitchenette are included together because of the

         plumbing needed for both and they share walls.


    4.   Barn Expansion (Future Phase)

         Designed as a standalone construction phase that can move forward when additional capital funding is

         secured.

Each phase has been designed to be independently functional, preventing partially completed or unusable

spaces. Site preparation and utility planning will account for future expansion to avoid duplicative costs.




Project Overview


Total Project Cost: $1.5 Million
State of Michigan Request: $499,000
Remaining Funds: Privately funded through a capital campaign


The proposed expansion includes two primary components:


    1.   Expansion of Kitchen 242
   2.    Expansion of the Market Barn


Kitchen 242 Expansion: Strengthening the Local Food Supply


Kitchen 242 is a licensed shared-use commercial kitchen that supports food entrepreneurs, value-added

producers, and farmers. It is a critical link between local agriculture and affordable food access.


Current Challenges


   e     The existing walk-in freezer and cooler are full for most of the year.
   e     Two additional freezers (an upright and chest) are currently used to accommodate overflow needs.
   e     Limited cold storage capacity has directly constrained our ability to accept new food makers. From April
         through November, both the walk-in cooler and freezer operate at or beyond capacity, with aisles often
         filled with additional racks to meet the needs of existing businesses. As a result, we have had to turn
         away qualified food makers solely due to the lack of available refrigerated and frozen storage, and not
         for a lack of demand or market readiness. We currently have 20 food businesses working out of Kitchen
         242,
   *     The current kitchen layout creates several operational inefficiencies that affect daily use, food safety,
         and overall program impact. Limited cooler, freezer, and dry storage space forces kitchen users to
         constantly move products to access their own ingredients, slowing production and increasing the risk of
         temperature control lapses. With more than 20 food businesses sharing these spaces and no lockable
         storage areas, products and ingredients are accessible to all users. While we have fortunately not
         experienced major incidents, items are regularly shifted, and on occasion products have been left out
         of refrigeration simply because space is so constrained. The proposed reconfiguration and expansion
         directly address these challenges by increasing cold and dry storage capacity and redesigning the
         kitchen with intentional food safety flow in mind. Plans include improved separation of storage zones,
         lockable cooler, freezer, and dry storage areas for individual businesses, and clearer circulation patterns
           that reduce cross-traffic and unnecessary handling of food. This is as much a food safety and
           operational design opportunity as it is a need for additional square footage

Proposed Improvements


   e       Expansion of the walk-in freezer and cooler capacity.
   e       Reconfiguration and expansion of the kitchen, including moving the existing garage area. The garage
           itself would not be expanded. Instead, it would be relocated to the property line to free up interior
           space needed for the expansion of the commercial kitchen. This approach allows us to significantly
           increase kitchen capacity and functionality within the existing footprint of the site. The existing garage
           is needed so the building would be expanded and the garage moved.
   e       Increased dry storage for food businesses and market use.


Food Security Impact

   *       Enable more local food businesses to operate, increasing the volume and diversity of food.
   e       Allow farmers and makers to preserve seasonal products through freezing, reducing food waste and
           extending availability year-round.
   e       Support small food entrepreneurs whom supply staple foods eligible for EBT and Double Up purchases.

Barn Expansion: Expanding Year-Round Food Access

The Market Barn houses the Winter Market, which operates Saturdays from Dec-April. Currently, the barn can
accommodate approximately 30 vendors, and weekly demand regularly exceeds capacity. The City of
Muskegon has issued an RFP to study the community’s need for a grocery store, and the farmers market is
being explored as a potential site and partner for a future food co-op. Demand for space is already evident: we
turned away at least 10 vendors for the winter market due to space constraints alone and we continue to get
requests. The proposed expansion would allow us to accommodate additional food vendors while also creating
dedicated space for nutrition education and community programming, strengthening both food access and
long-term food security outcomes or potentially house a food co-op.

Proposed Improvements

       e   Expansion of the barn to support up to 50 vendors.
       e   Installation of new overhead doors with windows to improve lighting and customer experience. Twelve
           existing doors could be replaced before any expansion happens.
       e   Expansion of restroom facilities to reduce wait times.
       e   The addition of a small kitchenette would support barn rentals and special events, strengthening an
           existing earned-income stream. The barn is rented out as an income stream when it is not being used
           as a farmers market. Currently, barn rentals do not include access to Kitchen 242 for food safety
            reasons, which means renters have no option for basic needs such as handwashing, potable water
            access, or refrigeration. As a result, users rely on bringing their own coolers and using the restroom
            sinks for potable water, which is inefficient and not ideal. A dedicated kitchenette would provide
            appropriate, food-safe access to water and some refrigeration, improve the renter experience, and
            allow the space to be used more effectively without compromising the safety or operations of the
            commercial kitchen. Even if we go in the direction of a food co-op access to potable water and
            refrigeration would be a need.
       The Farmers Market’s operating revenue for 2025 was supported by a diverse mix of earned income,
       program fees, and community-based support. Core market activities generate $171,744, reflecting

       vendor stall fees and regular market operations. The shared-use kitchen contributes $36,567,

       supporting food entrepreneurs and value-added producers, while event rentals ($7,205) and flea

       market ($21,495) provide additional earned revenue through use of the market space.
       Program-related income includes processing fees for food programs ($25,000) and supplemental

       income streams include alcohol sales ($4,117), and nearly $30,000 in fundraising activities, which
       strengthen financial resilience and community engagement. Together, these line items demonstrate a

       balanced and diversified income structure that supports both daily operations and long-term

       sustainability of the market.



Food Security Impact


The barn expansion will:


       Increase the number of farmers and food vendors able to sell products year-round.
       Improve customer flow and comfort, encouraging consistent winter attendance.
       Expand vendor opportunities, increasing competition and affordability of fresh food.
       Support additional market days, special food-focused events, and community programming.


Proven Programs That Address Food Insecurity


The Muskegon Farmers Market is a statewide leader in nutrition access programs:

       EBT & Double Up Food Program: Ranked #1 in Michigan for participation, doubling the purchasing
       power of SNAP households for fruits and vegetables.
       Senior Power of Produce: Serving more than 1,500 seniors from Muskegon County each summer,
       improving nutrition and social connection.
       Kids Power of Produce: Engaging approximately 200 children on Saturdays, teaching healthy food
       choices and increasing fruit and vegetable consumption.
       School Field Trips: Recently expanded through grant funding, hosting students from May through
       November with hands-on food education.
       WIC and Senior Project Fresh: Direct farmer participation increases redemption rates and supports
       local growers.


Market expansion will allow these programs to scale, reach more participants, and operate more efficiently
year-round.


Economic and Community Benefits


Beyond food access, the expansion will:


       Support local farmers, food makers, and small businesses.
       Create construction and ongoing economic activity.
       Enhance the market’s ability to serve as a community gathering space.


   While precise revenue projections are difficult to predict, we can reasonably estimate incremental gains
   based on known demand and current fee structures. With additional space, we could accommodate up to
   20 additional farmers and food vendors during the December—April winter market season. At an estimated
   $30 per week per vendor over approximately 20 weeks, this would generate roughly $12,000 in additional
   annual market revenue. If the study determines a food co-op is feasible at the market, it is assumed these
   numbers would increase.


   In addition, expanded kitchen and storage capacity would allow us to support an estimated 5-10
   additional kitchen makers, generating modest but steady increases in kitchen rental and usage fees. While
   these revenue gains alone are not transformational, they meaningfully strengthen earned-income streams,
   improve space utilization during the winter months, and contribute to long-term financial sustainability
   while advancing the market’s core mission of food access and local food production.


Conclusion


The expansion of the Muskegon Farmers Market and Kitchen 242 is a strategic, high-impact investment in food

security, local agriculture, and community well-being. By addressing infrastructure limitations, the project will

significantly increase year-round access to healthy, affordable food for Muskegon County residents—

particularly those most vulnerable to food insecurity.

With proven leadership in nutrition incentive programs and strong community demand, the Muskegon

Farmers Market is uniquely positioned to leverage State of Michigan support to deliver lasting, measurable

outcomes for families, seniors, farmers, and food entrepreneurs.

State investment in this project is an investment in resilience, equity, and a stronger local food system for West

Michigan.

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