City staff on Wednesday laid out a draft development agreement that would trade city-owned waterfront assets and use a $2,800,000 state appropriation to acquire and improve waterfront property, while reserving money to relocate the historic LST and cover sewer work.

Mister Mazur, the city's manager, told the Muskegon City Commission the package would prioritize acquisition first, then LST/sewer relocation, and finally wharf improvements. "So the total grant's $2,800,000," he said, walking commissioners through an illustrative example that assumed a 3rd Street Wharf valuation of $800,000 and a remaining $2,000,000 to split for other work.

The draft agreement would assign the city up to 25 acres on the south branch of the Muskegon River and significantly expand publicly owned lake frontage, staff said. "This is an opportunity for us to purchase 25 acres ... and do a nature preserve and river walk," the manager said, adding the acquisition would take years of planning and remediation.

Why it matters: the appropriation is a direct legislative allocation intended for a wharf project and, according to staff, has limited extensions. Commissioners worried that spending deadlines, uncertain appraisals and environmental liabilities could expose the city to costs and risks that are not yet fully quantified.

What commissioners asked for: several members pressed staff to supply independent appraisals and up-to-date baseline environmental assessments (BEAs) for the Verplank and campground parcels. One commissioner said the campground BEA on file dates to 1999 and "I personally will not be comfortable" moving forward without current environmental data; another asked for clearer sequencing so park improvements are not deferred until after other transactions leave the city "upside down."

Appraisal and price issues: staff confirmed the city will use independent appraisals to value the 3rd Street Wharf; by contrast the Verplank purchase price reflects a preexisting negotiated option between private parties. Chuck King, representing West Michigan Dock, said the Verplank price was a negotiated figure "offered to others" and posted as an asking price, but commissioners flagged the lack of third-party valuation as a concern.

Environmental liability and remediation: multiple commissioners and a consultant briefing the commission noted the Verplank site includes coal- and fly-ash fill in places. Commissioners stressed that full remediation could require removal of contaminated soils, potentially changing usable acreage and adding millions in costs; staff responded that due-diligence provisions and potential partner funding (county, state, federal grants or private foundations) are part of the plan but cannot yet guarantee total remediation costs.

Revenue sharing and definitions: the draft now includes a revenue- or profit-sharing commitment tied to grants and operating margins. Commissioners asked whether the contract means "net profits" or "operating margin." Staff and the developer said the term is defined in the draft and brackets remain where specific definitions will be finalized before the Dec. 9 packet.

Public input and optics: staff summarized public engagement over the past year and commission-wide emails: of the commission-wide messages in the packet, 47 were reported as opposed (many form letters) and 11 in support. Several public commenters urged the commission to vote to secure public access; others asked for more time and data before a decision.

Procedure and timeline: staff said draft 2 of the development agreement was delivered to the commission last week and that an up-or-down decision is expected at the Dec. 9 meeting. Commissioners discussed options for how and when the city would exercise the purchase option, who pays for due diligence, and whether to seek county contributions or request valuation parity/discounting to reduce the city's out-of-pocket share.

Next steps: staff committed to provide clearer operating-margin definitions for the revenue-sharing term, independent appraisals for the 3rd Street Wharf and the campground, and to share BEAs and remediation cost estimates as they are updated. The commission did not vote Wednesday; it is scheduled to take up the development agreement and the assigned option-to-purchase on Dec. 9.

The commission also discussed community transparency steps (staked property lines / site signage), continued public engagement and remaining negotiation items such as assignability of the long-term campground lease.