Muskegon Commission authorizes staff to apply for MDNR grant to buy up to 10 Sappi lakefront parcels

The Muskegon City Commission on March 24 voted to authorize staff to apply for a Michigan Natural Resources Trust Fund acquisition grant to buy up to 10 parcels at the former Sappi PUD along Lakeshore Drive.

Staff described the request as a continuation from earlier work‑session discussions. City staff told commissioners the grant request would be for $1,106,300 with a city match commitment of $474,200 — funds staff said would likely come from the Public Improvement Fund. Staff noted the per‑parcel price was negotiated as part of the PUD and reflects a 15% discount off the agreed price; commissioners were told final acquisition would be subject to a formal appraisal expected in October.

Commissioners asked about ongoing maintenance costs and whether the homeowners association planned for the new development would assume some maintenance duties. City staff said the development will include an HOA and that, if established as expected, the HOA would handle much of park maintenance and the city would likely pay a portion of HOA dues rather than fielding routine maintenance with city crews.

The commission moved to close the public hearing and authorize staff to proceed with the MDNR Natural Resources Trust Fund application subject to final appraisal and other conditions. The motion carried. Any formal purchase of the parcels would return to the commission for approval.

What happens next: staff will submit the application to the state and, after appraisals and any state action, any agreement to purchase would be brought back to the commission for final action.