We all love a good deal, but the citizens of Muskegon are feeling shorted after finding out about this possibly illegal deal the city made with a developer.

City of Muskegon Government FB
City of Muskegon Government FB
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This bizarre story all came to light when a lawsuit was filed by the owner of West Michigan Dock and Market, also known as Mart Dock. He's alleging that the transfer of a public street that once accessed a public peninsula walkway to Jon Rooks and his Parkland Properties, could be illegal. And if it's not illegal, it's definitely suspicious.

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BJP
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Apparently, the city of Muskegon has sold this property of Parkland Properties for only $2 total. Which yes, is almost cheaper than everything on the menu at the nearby Henry Street Taco Bell.

What does Parkland Properties plan to put in this space?

According to a development agreement outlining the property deal, Parkland Properties plans to develop a large in-out boat service and indoor boat storage operation.

Pictured below, part of the land in question:

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Google Streetview
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The deal is that Parkland Properties paid $1 to the city of Muskegon for the drive and lakefront walkway near its Shoreline Inn and Terrace Pointe Marina. Then, the development company paid another $1 in return for the city erasing an easement that had allowed public access in perpetuity, making the grand total of the purchase $2. Which, seems WAY too inexpensive for the city to just walk away from the property.

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Canva
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The plan was approved by the Muskegon City Commission in December 2020, but the actual property transfer didn’t occur until 2021.

Legal law or lawsiut business concept.
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It's easy to see why Dock Mart might be upset with the city for making it easy for a competitor to come in so close for mere pennies, so they took their complaints to court. Why battle this with judges and lawyers? Turns out this deal is not only arguably unfair, but possibly illegal at its core.

Why is the $2 price tag for the Muskegon Public beach illegal?

It turns out, Michigan has a law in our state constitution that prevents transfers of property such as the one in Muskegon between the city and Parkland Properties.

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Credit: Canva
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While the city is allowed to sell land that it owns, it's prohibited from selling it at a rate significantly lower than its value.

This law was put into place to protect the cities from missing out on revenue from sales such as the one currently happening in Muskegon. A lot of times, these sales can be riddled with favors and other questionable intent.

Facade of courthouse with columns.
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As of now, a judge in Muskegon has used language that is leaving the decision to a future jury as to if the sale will be allowed to be completed as intended. But, Muskegon citizens are rightfully annoyed that the city has an opportunity to generate revenue with this sale to a private business. Only time will tell if it actually stops the development from happening.

Vintage Photos of Muskegon

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