Muskegon leaders debate waterfront swap as environmental and valuation questions linger

City staff presented the second draft of a waterfront development agreement that would give Muskegon control of about 25 acres on the south branch of the Muskegon River and expand public lakefront frontage, with commissioners scheduling final consideration for Dec. 9.

The city manager told the commission the project is anchored by a $2,800,000 state appropriation intended for a wharf project and described the funding priorities: acquisition first, then costs tied to relocating the LST and sewer work, and finally 3rd Street Wharf improvements. “So the total grant's $2,800,000,” the city manager said, adding that staff used a hypothetical $800,000 valuation for the 3rd Street Wharf to illustrate how remaining funds would be split.

Why it matters: supporters say the deal would nearly double the city—s lake frontage and create a long-sought publicly owned waterfront corridor. Critics warned the city risks assuming expensive environmental liabilities and asked for stronger valuation safeguards before committing public dollars.

Key points and debate

Valuation and appraisals: Commissioners pressed staff on how the Verplank price was set. A West Michigan Dock representative said the seller and buyer negotiated the Verplank price without an appraisal. Commissioners repeatedly asked for documentation and said the city needs either parity, a discount or another mechanism to avoid paying more per acre for the Verplank land than it receives for the campground.

Environmental risk and due diligence: Several commissioners urged a contemporary baseline environmental assessment (BEA) for Verplank and emphasized that the property contains fly ash and industrial fill. “I cannot imagine a world where that is done by December 9,” Commissioner (speaker 6) said, referring to producing a new BEA in two weeks, and said she would be unwilling to vote without the results. Staff and a development representative noted there are existing BEAs on some parcels and that the option-to-purchase agreement includes standard due-diligence periods the city could use.

Grant sequencing and park funding: Staff explained that the appropriation will be applied by subtracting the appraised value of the 3rd Street Wharf from the $2.8 million, and then dividing the remainder; the first $1 million available would be earmarked for LST/sewer work. Some commissioners said that sequencing risks leaving too little immediately available to build public park amenities at Fisherman's Landing and asked that the agreement better reflect the waterfront-park intent of the original appropriation.

Lease and operations: The draft adds clearer campground lease protections, including maintenance obligations and a requirement to keep a minimum number of campsites and provide inventory accounting during any transition. Staff said campground operations would continue until a certified conversion property is secured, per DNR conversion rules.

Next steps and procedural timeline

Staff told the commission the revised revenue-sharing and profit-sharing documents and an assignment of the purchase-option agreement will be completed well before the Dec. 9 meeting for commission and public review. Commissioners asked that staff provide independent appraisal documentation, any available BEAs, and clearer financial scenarios showing how much money would be available for park buildout under different appraisal outcomes. The commission did not take a formal vote at the meeting.

Public comment

Speakers at the meeting offered mixed views. Dave Alexander, a longtime downtown advocate, urged the commission to approve the framework, calling it a generational opportunity to increase public access. Other residents said two weeks was insufficient time to digest packet materials and that the community deserves more time and up-to-date environmental testing.

What remains unresolved

No final appraisals for Verplank were supplied in the packet, and the city has not yet published a new BEA for Verplank. The precise definition of the revenue-sharing metric (operating margin versus broader net profits) remains bracketed in the draft. The commission and staff signaled they would continue negotiations with developers and partners, seek outside grants and consider county participation in covering potential remediation or acquisition shortfalls.

The commission is scheduled to consider the development agreement and associated assignment documents on Dec. 9; staff said final profit-sharing language will be available for review well in advance of that vote.