HomeMy WebLinkAboutResolutions - 2010.06.09 - 10161MISCELLANEOUS RESOLUTION 110139 June 9, 2010
BY: Planning and Building Committee, John Scott, Chairperson
IN RE: BUILDING AUTHORITY - RESOLUTION AUTHORIZING THE OAKLAND
COUNTY BUILDING AUTHORITY TO FINANCE A PROJECT FOR THE CITY HALL
AND THE CITY DPW BUILDING IN THE CITY OF KEEGO HARBOR, OAKLAND
COUNTY, MICHIGAN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, tnere have been prepared and presented to the Board
of Commissoners (the "Board") of the County of Oakland, Michigan
(the "County", documents describing the project to acquire the
Keego l!arbor City 'Hall and the Keego Harbor City DPW Building
located in the City of Keego Harbor, Oakland County, Michigan
(the "Project"), all as more fully described in EXHIBIT A to the
Lease Contract (as hereinafter defined), and a proposed Lease
Contract between the County and the Oakland County Building
Authority the "Authority") dated as of August 1, 2010 (the
"Lease Con t ract"), pursuant to which the Authority will acquire
the Project as contemplated by the Lerms of Act No. 31, Public
Acts of Michigan, 1948 (First Extra Session), as amended ("Act
31"), and lease the Project to the County for a term not to
exceed 50 years as permitted by Act 31; and
WHEREAS, it has been estimated that the period of usefulness
of the Project to be not less than 35 years and that the total
cost of acquiring t'ne Project (as defined in the Lease Contract)
in an amount not to exceed $1,120,000 of which not to exceed
$1,120,000 will he provided by the proceeds from the sale of
bonos by the Authority pursuant to Act 31; and
W:!ERFAS, the County proposes to undertake the Project and to
request the Authority to incur taxable or tax-exempt debt (the
"Reimbursement Obligations") to finance all or a portion of the
costs of the Project; and
WHEREAS, there has been prepared and attached hereto as
APPEND:X I a form of Lease Contract and as APPENDIX II a form of
notice entitled "NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO
ENTER INTO A LEASE CONTRACT WITH THE OAKLAND COUNTY BUILDING
AUTHORITY AND NOT:CE OF RIGHT TO PETITION FOR REEERENDUM THEREON"
the "Notice of Intention").
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE COUNTY OF OAKLAND, MICHIGAN, as follows:
1. The documents and estimates relating to the Project and
identified in EXHIBIT A to APPENDIX I hereto are hereby approved
and ordered filed with the County Clerk.
2. The Lease Contract in the form of APPENDIX I hereto is
hereby approved, and the Chairperbon of the Board ot
Commissioners and the County Clerk are hereby a.athorized and
Commissioners and the County Clerk are hereby authorized and
directed to execute and deliver the same for and on behalf of the
County.
3. It is nereby determined that the Notice of Intention
provides information sufficient to adequately inform the electors
and taxpayers of the County of the nature of the contractual
obligations to be undertaken by the County in the Lease Contract
and of their right under Act 31 to file a petition requesting a
referendum election on the Lease Contract.
4. The form and content of the Notice of Intention are
hereby approved, and the County Clerk is hereby authorized and
directed to cause the Notice of Intention to be published once in
the Oakland Press, Pontiac, Michigan, a newspaper of general
circulation within the County which is hereby determined to be
the newspaper reaching the largest number of electors and
taxpayers of the County. The Notice shall be at least one third
of a page in size.
5 The Oakland County Clerk is further directed to assure
that each declaration of intent is continuously available during
normal business hours of the County on every business day of the
period beginning the earlier of 10 days after the date of
execution of said declaration of intent and ending on the date of
issuance of the Reimbursement Bonds.
6 The Co .anty Executive, if necessary, is authorized to
tile for approval to issue the bonds from the State of Michigan,
Department of Treasury ("Treasury), to pay the related fee, and
to execute and deliver such other documents as may be requested
by the Treasury.
7 All activities involved in the planning and acquisition
of this Project under this resolution shall comply with the
standing rules of the Doard of Commissioners.
Chairperson, on behalf of the Panning and Building
Committee, I move the adoption of the foregoing resolution,
PLANNING AND BUILDING COMMITTEE
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APPENDIX I
LEASE CONTRACT
THIS 7.1= FAITH AND CREDIT GENERAL OK:GAT:ON LEASE CONTRACT
("Lease") made as of August 1, 2010, by and between the OAKLAND
COUNTY 1K:71-DING AUTHORITY (the "Authority"), a building authority
organized and existing under and pursuant to the provisions of
Act No. 31, Public Acts of Michigan, 1948 (First Extra Session),
as amended ("Act 31"), and the COUNTY. OF OAKLAND, a County of the
State of Michigan (the "County"),
WITNESSETH:
WHEREAS, the Authority has been incorporated by the County
pursuant to Act 31 for the purpose of acquiring, furnishing,
equipping, owning, improving, enlarging, operating and
maintaining a buflding or buildings, automobile parking lots or
structures, recreational facilities and stadiums, and the
necessary site or sites therefor, for the use of the County; and
WHEREAS, the County desires to undertake a project to
acc_uire the Keego Harbor City Hail and the Keego Harbor City DPW
Building locaLed in the City of Keego Harbor, Oakland Co unty,
Michigan as more fully described in EXHIBIT A to this Lease (the
"Project"), and it is proposed that the Authority undertake the
Project; and
WHEREAS, it is proposed that the Authority finance the to t al
cost of the Project by the issuance of building authority bonds
payable frorL cash rental payments to be made by the County to the
Authority pursuant to this Lease and Act 31; and
WHEREAS, a description of the Project, and estimate of the
period of usefulness thoreof and an estimate of the total cost of
the Project, all as set forth on EXHIBIT A to this Lease, have
been reviewed and approved by the Board of Commissioners of the
County; and
WHEREAS, in order to make possible the issuance of building
authority bonds to finance all or a portion of the total cost of
the Pro;ect, it is necessary under Act 31 for the parties to
enter into thfs Lease;
THEREFORE, :N CONSIDERATION OF THE W.:7,2AL -JNDERTAKINGS AND
AGREEMENTS _;ET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN
THE PART:ES TO THIS LEASE AS FOLLOWS:
Authorization and Issuance of 3Onds. As soon as
practicable after the effective date of this Lease, the Authority
shall proceed to authorize and issue one or more series of its
building authority bonds in the aggregate principal amount of not:
to exceed $1,120,000 (the "Bends"), pursuant to and in accordance
with provisions of Act 31, for the purpose of acquiring the
Proct. The Authority shall pledge for the payment of the
principal of and interest on the Bonds the receipts from the cash
rental payments described and required to be paid by the County
pursuant to this Lease. The Bonds of any series shall be dated
August I, 2010 or the first day of any later month in 2011 and
the final maturity may be at any time up to and including
December 1, 2041 as the Authority shall approve in the resolution
authorizing issuance of the Bonds the "Bond Resolution"). The
Bonds shall bear interest at a rate or rates that will result in
a net interest cost not exceeding per annum. Interest shall
be payable semi-annually and shall begin as specified in the Bond
Resolution until maturity of the bonds and shall mature in
accordance with the Debt Retirement Schedule set forth on EXHIBIT
B to this Lease. Each date on which any payment of principal of
and/or interest on any bond is due is referred to herein as a
"Bond Payment Date." The Bonds may be payable on the tirst day
of a different month, if necessary, to match rental income paid
to the County.
The County and the Authority recognize and acknowledge that
a) such Debt Retirement Schedule is based upon an assumed
interest rate and date of issuance of the Bonds and upon assumed
Bond Payment Dates, all as set forth in EXHIBIT B, (b) the Bond
Payment Dates will be specified in the Bond Resolution, (c) the
date and amount of each payment of cash rental required under
this Lease will be determined .subject to the limitations
expressed in the preceding paragraph of this Section; when the
Bond Resolution is adopted by the Authority and the Bonds are
sold, by application of the rate or rates of interest (that will
result in a net interest cost not exceeding 81 per annum)
actually borne by the Bonds.
The 'Bonds may be sold subject to redemption prior to
maturity at the option of the Authority with such redemption
premiums and upon such terms as shall be set forth in the Bond
Resolution.
Upon receipt of the proceeds of the sale of the Bonds, all
premium, capitalized interest, if any, and accrued interest
received from the purchaser or purchasers of the Bonds shall be
transferred to a bond and interest redemption fund, and the
balance of such proceeds shall be deposited into an acquisition
fund, each of which shall be established by the Bond Resolution
and maintained as a separate depository account of the Authortty.
The money in the acquisition fund shall be used to pay costs of
the Project, and apon payment of all such costs, any excess money
in the acquisition fund will be used as provided in Section 4.
In the event that for any reason after the date upon which
this Lease is executed, but before the Bonds have been issued, it
appears to the County and the Authority that the part of the
Project to be paid by bond proceeds can be equipped for less than
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$1,120,30C, or the County shall be able to make payment in
advance on the cash rental payments payable pursuant to this
Lease, the Authority may reduce the amount of bonds to be issued
in multiples of $5,J00 and reduce the annual maturiti.es or the
years of maturities as the County Treasurer shall direct.
2. Transfer of Title to and Completion of Project. As
soon as practicable after tne Bonds have been sold, the County
shall transfer title to the Project to the Authority, and the
Authority shall commence the Project. The plans, cost estimate
and estimated period of usefulness for the Project, all of which
have been filed with tne County Clerk and the Secretary of tne
Authority, are hereby approved and adopted. The Project shall be
implemented in substantial accordance with such plans which are
incorporated as part of (but not attached to) this Lease. No
major changes in such plans shall be made without the written
approval first by the County and then by the Authority.
Increased Project Costs. In the event that it shaLl
appear, upon taking the necessary bids for the acquisitien of the
Project and after issuance of the Bonds, that the Project cannot
be completed at the estimated cost, the Authority shall
immediately so notify the County. The County may elect to pay
the increased cost in cash to the Authority in which event the
amount of such cash payment shall be deposited in the acquisition
fund for the Procct and the Authority shall proceed to acquire
and complete the Project. In the alternative, the County and the
Authority may agree, by an amendment to this Lease, that
additional bonds shall be issued by the Authority in an amount
sufficient to pay the increased Project Costs. If, after the
sale and issuance of the Bonds, it shall become necessary to
raise additional funds to pay for an increase in the Project
costs and this Lease cannot be amended to provide for the
issuance of addit i onal bonds, or if for any other reason
additional bonds cannot be issued, the County shall pay to the
Authority in cash an amount which will be sufficient to enable
the Authority to complete the Project in accordance with the
plans of the Project.
4. Funds ?emaining After Completion. Any unexpended
balance of the proceeds of the sale of the Bonds remaining after
completion of 1.h.e, project may be used to improve or enlarge the
Project upon the approval of the Planning and Building Committee
of the Board of Commissioners provided that such use of the funds
In the acquisition fund has been approved by the Municipal
Finance Division of the Michigan Department of Treasury, if
necessary, and the County. Any unexpended balance not so used
shall be paid into the bond and interest redemption fund, and the
County shall receive a credit against the cash rental payments
next due under this Lease to the extent of the moneys so
deposited in the manner provided in the Bond Resolution.
5. Insurance Requirements. The Autnority shall require
any contractor or contractors for the Project to furnish all
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necessary bonds guaranteeing performance and all labor and
material bonds and all owner's protective, workers' compensation
and liability insurance required for the protection of the
Authority and the County. Such bonds and insurance, and the
amounts thereof, shall be subject to approval of the County on
the advice of its counsel. The Authority also shall require a
sufficient fidelity bond from any person handling funds of the
Authority,
6. Lease Term; Possession; Reconvqyance. (a) The Authority
does hereby lease the Project to the County for a term commencing
on the effective date of this Lease (determined as provided in
Section 22, and ending on December 31, 2030, or such earlier or
later date as the principal of and premium, if any, and interest
on the Bonds, the fees and expenses of the paying agent for the
Bonds and all amounts owing hereunder have been paid in full, but
in any event the term of this Lease shall not exceed 50 years,
Possession of the Project shall vest in the County upon the
execution of the Lease. At the end of the term of this Lease,
the Authority shall convey to the County all of its right, title
and interest in and to the Project and any lands, easements or
rights-of-way appertaining thereto, and upon such conveyance,
this Lease shall terminate, and the Authority shall have no
further interest in, or obligations with respect to, tne Prolect.
(b) The County shall, upon the terms and conditions
set forth in this :,ease, acquire and convey to the Authority all
lands, buildind,s, tenements, hereditaments, easements and rights-
of-way necessary to enable the Authority to complete the Proect
in accordance with the plans.
7. Cash Rental; Pledge of Eull Faith and Credit. The
County nere7i—Wrees to pay to the Authority as cash rental for
the Project such periodic amounts as shall be sufficient to
enable the Authority to pay the principal of and interest on the
Bonds as such principal and interest shall become due, whether at
maturity or by redemption. For so long as any bonds are
outstanding, the County shall pay to the Authority, on the Bond
Payment Date, an amount sufficient to pay the principal and/or
interest due on tne Bonds on such Bond Payment Date.
The County hereby pledges its full faith and credit for the
payment of the cash rental when due and agrees that it will levy
each year such ad valorem taxes as shall be necessary for the
payment of such cash rental, which taxes, however, will be
subject to applicable constitutional and statutory limitations on
the taxing power of the County, and which shall not be in an
amount or at a rate exceeding that necessary to pay its
contractual (.3ligation pursuant to this Lease. It the County, at
the time prescribed by law for the making of its annual tax levy,
shall have other funds on hand which have been set aside and
earmarked for payment of Its obligations under this Lease for
which a tax levy would otherwise have to be made, tnen The tax
levy shall be reduced by the amount of such other funds. Such
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other funds may be raised from any lawful source. The obligation
of the County to make such cash rental payments shall not be
subject to any set-off by the County nor shall there be any
abatement of the cash rental payments for any cause, including,
but not limited to, casualty that results in the Project being
untenantabie.
8. Expenses of Issuing and Payment of Bonds. The
Authority shall pay froy, the proceeds of the sale of any series
of the Bonds all expenses incurred with respect to the issuance
of the Bonds. The County agrees to pay to the Authority, in
addition to the cash rental provided for in Section 7, all
expenses incurred with respect to the issuance and payment of the
Bonds, to the extent not so paid from the proceeds from the sale
of the Bonds. The obligation of the County to make such payments
shall be a general obligation of the County.
9. Preliminary Expenses of the County. Upon the sale of
the Bonds, the County shall give the Authority a full and
complete accounting of the preliminary costs and expenses
incurred on or before that date by the County in connection with
the Project, and the Authority shall thereupon reimburse the
County for such costs and expenses to the extent that such costs
and expenses were included in the portion of the total cost of
the Project to be paid from bond proceeds.
10. Maintenance and Repairs. The County shall, at its own
expense, operate and maintain the Project and shall keep the same
in good condition and repair. Operation and maintenance shall
include (but not be limited to) the providing of all personnel,
equipment and facilities, all light, power, heat, water.,
sewerage, drainage and other utilities, and all properties and
services of whatever nature, as shall be necessary or expedient
in the efficient and lawful operation and maintenance of the
Project. Premiums for insurance required to be carried upon or
with respect to the Project or the use thereof and taxes levied
upon either party hereto on account of the ownership or use of
the Project, or on account of rentals or income from the Project,
shall likewise be deemed operation and maintenance expenses.
The obligation of the County to pay all costs and expenses of the
operation and maintenance of the Project shall be a general
obligation of the County.
11. Property Insurance and Insurance Proceeds. The County
shall cause to be provided, at no expense to the Authority, fire
and extended coverage insurance in an amount which is at least
equal to the amount of bonds outstanding from time to time or to
the amount of the full replacement cost of the Project if that
amount be less than the amount of bonds outstanding. In the
event of the partial or total destruction of the Project during
Or after acquisition, or if the Project is for any reason made
unusable, the cash rental payments provided in Section 7 shall
continue unabated. In the event the insurance proceeds are
payable to the County, the County shall have the option to use
the proceeds of insurance, in the event of loss or damage to the
Project, for the repair or restoration of the Project.
12. Liability Insurance. The County snail cause to be
provided and maintained during the term of this Lease adequate
liability insurance or self insurance protecting the County and
the Authority against loss on account of damage or injury to
persons or property, imposed by reason of the ownership,
possession, use, operation, maintenance or repair of tne Project
and the site of the Project, or resulting from any acts of
omission or commission on the part of the County or the Authority
or their respective officers, employees or agents in the
connection with the Project and shall, to the extent permitted by
law, indemnify, hod harmless and defend the Authority, its
officers, employees or agents against any and all claims for any
such damage Of injury. Such insurance shall be made effective
from the date acquisition of the Project commences.
13. No Unlawful Use Permitted. The Project shall not be
used or permitted to be used in any unlawful manner or in any
manner which would violate the previsions of any contract or
agreement between the County or the Authority and any third
party. To the extent permitted by law, the County shall hold the
Authority harmless and keep it fully indemnified at all times
against any loss, in j ury or liability to any persons or property
by reason of the use, misuse or non-use of the Project or from
any act or omission in, on or about the Project. The County
shall, at its own expense, make any changes or alterations in, on
or about he Project which may be required by any applicable
statute, charter, ordinance or governmental regulation or order
and shall save the Authority harmless and free from all costs or
damages with respect thereto.
14. Alterations of Project. The County, in its sole
discretion, may install or construct in or upon, or may remove
from the Project, any equipment, fixtures or structures, and may
make any alterations to or structural changes in, the Project as
the County may desire in accordance with the standing rules o±
the Board of Commissioners.
15. Right of Inspection. The Authority, through its
officers, employees, or agents, may enter upon the Project at any
reasonable time during the term of this Lease for the purpose of
inspecting tne Project and determining whether the County is
complying with the covenants, agreements, terms and conditions of
this Lease.
16. Contractual Rights of Bondholders. Inasmuch as this
Lease, and particularly the obligation of the County to make cash
rental payments to the Authority, provides the security fur
payment of the princ;ipal of and interest On the Bonds, it is
hereby declared that this Lease is made for the benefit of the
holders from time to time of the Bonds as well as for the benefit
of the parties and that such holders shall have contractual
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rights under this Lease. In the event of any default under this
Lease on the part of the County, the Authority and the holders of
the Bonds shall have all rights and remedies provided by law,
including in particular all rights and remedies provided by
Act 31. The parties further agree that They will not do, or
permit to be done, any act, and that this Lease will not be
amended in any manner, which would impair the security of the
Bonds or the rights of the holders of the Bonds. An amendment of
this Lease to authorize the issuance of additional bonds and
providing the payment of additional cash rentals for the payment
of such bonds shall not be deemed to impair the security of the
Ponds or the rights of the holders of the Bonds.
17. Appurtenant Facilities. The site on which this Project
Is to be located includes, or will include, roadways, walks,
drives, parking areas and landscaping which are of benefit to and
necessary to the full use and enjoyment of the Project, and it is
hereby agreed that so long as any bonds remain outstanding and
unpaid, such appurtenant facilities will be maintained in good
repair and condition by the County or by its lessees and
availabLe to the users and occupants of the Project.
18. Successors and Assigns. This Lease shall inure to the
benefit of, and be binding upon, the respective parties hereto
and their successors and assigns, provided, however, that no
assignment shall be made in violation of the terms of this Lease
nor shall any assignment be made which would impair the security
of the Bonds or the rights of the holders of the Bonds.
19. Abandonment of Project. In the event the Bonds to
finance the Proect cannot be or are not issued by the Authority
on or before December 31, 2011, the Project shall be abandoned,
the County shall pay from available funds all expenses of the
Authority incurred to the date of abandonment, and neither party
shall have any further obligations under this Lease.
20. Consents, Notices, Etc. The right to give any consent,
agreement or notice required or permitted in this Lease shall be
vested, in the case of the County, in its Board of Commissioners,
and in the case of the Authority, in its Commission. Any notice
required or permitted to be given under this Lease shall be given
by delivering the same, in the case of the County, to the County
Clerk, and in the case of the Authority, to any member of its
Commission.
21. Changes in Law or Corporate Status. In the event there
shall occur changes in the Constitution or statutes of the State
of Aiohigan which shall affect the organization, territory,
powers or corporate status of the County, the terms end
provisions of this Lease shall be unaffected thereby insofar as
the obligatlon of :he County to make the cash rental payments is
concerned. The proceeds of any sale or other liquidation of any
Interest of the County or the Authority in the Project are hereby
Impressed with a first and prior lien for payment of any
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outstanding bonds or otner obligations of the Authority incurred
by reason of the Project or any additions or improvements
thereto.
22. Effective Date of Lease. This Lease shall become
effective on the 61st day after publication of a Notice of
Intention in the Oakland Press, a newspaper published in Pontiac,
Michigan, as required by Act 31, provided tnat if a petition for
a referendum is filed as provided in (and meeting all
requirements of) Section Bb of Act 31, then this Lease shall not
become effective unless and until approved by a majority of the
electors of the County voting thereon at a general or special
election.
23. Undertaking to Provide Continuing Disclosure. The
County and the Authority hereby covenant and agree, for the
benefit of the beneficial owners of the Bonds, to enter into a
written undertaking (the "Undertaking") required by SEC Rule
15c2-12 promulgated by the Securities and Exchange commission
pursuant to the Securities and Exchange Act of 1934 (the "Rule")
to provide continuing disclosure of certain financial information
and operating data and timely notices of the occurrence of
certain events in accordance with the Rule. The undertaking
snall be in the form attached the official statement for the
Bonds. This Undertaking shall be enforceable by the beneficial
owners of the Bends or by the Purchaser (s) on behalf of suon
beneficial owners (provided that the Purchaser(s) right to
enforce the provisions of this Undertaking shall be limited to a
right to obtain specific enforcement of the obligations hereunder
and any failure by the County and the Authority to comply with
the provision of this undertaking shall not be an event of
default with respec to the Bonds).
The County Treasurer and the Chairperson or Treasurer of the
Authority, or other officer of the County or Authority charged
with the responsibility for issuing the Bonds, shall provide a
Continuing Disclosure Certificate for inclusion in the transcript
of proceedings, setting forth the details and terms of the
County's and Authority's Undertaking.
:N WITNESS WH:REOF, the OAKLAND COUNTY BUILDING AUTHORITY,
by its Commission, and the COUNTY OF OAKLAND, by its Board of
Commissioners, have caused this Lease to be signed by their duly
authorized officers, and their seals to be affixed hereto, all as
of the day and year first above written.
1 0
WITNESSES TO S:CNATURES OAKLAND COUNTY BUILD:NG A=ORITY
OF AUrAORITY OFFICERS:
By:
Chairperson of its Commission
By:
Secretary of its Commission
WITNESSES TO SIC:NATURES COUNTY OF OAKLAN:
OF COUNTY OFFICZRS:
By:
Chairperson, Board of Commissioners
By;
County Clerk
las.r2-cak219
11
STATE OF AICHIGAN,
,ss.
COUNTY OF OAKLAND)
On this cay of , before me appeared
and , to me personally known,
who being by me duly sworn, did each say that they are,
respectively, the Chairperson and the Secretary of the COMMiSSiOT:
of the OAKLAND COUNTY BUILDING AUTHORITY and that the foregoing
Lease Contract was signed and sealed by :hem on behalf of the
Authority by authority of its Commission, and that such persons
acknowledged such instrument to be the free act and deed of the
Authority.
Notary Public, Oakland County,
Michigan
My Commission Expires:
(Seal,
STATE Ti MICHIGAN)
;ss.
COUNTY OF OAKLAND;
On this day of , before me
appeared and , to me
personally known, who being by me duly sworn, did each say that
they are, respectively, the Chairperson of the Board of
Commissioners and the County Clerk of the COUNTY OF OAKLAND and
that the foregoing Lease Contract was signed and sealed by them
on behalf of the County by authority of its Board of
Commissioners, and that such persons acknowledged such instrument
to be the free act and deed of the County.
Notary Public, Oakland County,
Michigan
My Commission Expires:
(Seal)
Instrument Drafted By:
John R. Axe
Axe & Ecklund, P.C.
21 Kercheval, Suite 360
Grosse Pointe Farms, Michigan 48236
las.r2-oak219
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EXHIBIT A
PROJECT DESCRIPTION
The Project includes the acquisition of the Keego Harbor
City Hall and the Keego Harbor DPW Building in Keego Harbor. The
Keego City Hall / Police Department construction was completed in
October 2008 ant is in good repair. It consists primarily of
general offices. The Keego Harbor DPW building was completed in
2009. Several acres of land. The City Hail has 5,800 square
foot and the DPW building has 5,000 square foot on land
sufficient to allow for the storage of up to 55 vehicles. The
City Hall community room is used for council and board meetings
and has two conference rooms. Facility elevations are enclosed
for both builtings.
Legal Description
The legal bescrption is as follows:
Property located in the County of Oakland, City of Keego
Harbor described as follows: "Lots 157 thru 180 inclusive of
Everareen Villa, a subdivision of part of the West ;-.1 of Section
1, T2N, R9E, City of Keego Harbor, Oakland County, Michigan as
recorded in Liber 24, Page 14 of Plats, Oakland County Records.
Sitwell # 18-01-160-001
Cost Estimates
Cost of Fina:loi= including
Bond Discount
Estimated Cost of Acquisition
TOTAL:
$ 46,550
$1,073,450
$1,120,000
ESTIMATED PERIOD OF USEFULLNESS: At least 35 Years
DUE AMOUNT
EXHIBIT B
to
LEASE CONTRACT
OAKLAND BUILDING AUTHORITY PROJECT
SCHEnLE OF PRINCIPAL AND INTEREST
TOTAL
APPENDIX II
NOTICE OF INTENTION OF THE COUNTY OF OAKLAND
TO ENTER INTO A LEASE CONTRACT WITH THE
OAKLAND COUNTY BUILDINO AUTHORITY AND NOTICE
OF RIGHT TO PETITION FOR REFERENDUM THEREON
TO ALL ELECTORS AND TAXPAYERS OF
THE CO1INTY OF OAKLAND:
NOTICE IS HEREBY G:VEN that the Board of Commissioners of
the County of Oakland, :Nichigan Lhe "County"), has authorized
the execution of a full faith and credit general obligation :ease
contract (the "Lease") between the County and the Oakland County
Building Authority (the "Authority"). The Lease provides, among
other things, for the following purposes: See Exhibit A to be
located at: See Exhibit A (the "Project"). The Lease provides
further that the Authority will finance all or a portion of the
total cost of the Protect by the issuance of one series of
building authority bonds (the "Bonds") pursuant to the provisions
of Act No. 31, Public Acts of Aichigan, 1948 (First Extra
Session), as amended ("Act 31"), in anticipation of the receipt
of cash rental payments to be made by the County to the Authority
pursuant to the Lease. The maximum amount of bonds to be issued
in two or more series shall not exceed $1,120,080, the term of
the Lease shal: not exceed 50 years and the Bonds shall bear
interest at a rate or rates that will result in a net interest
cost of not more than 8% per annum.
FULL FAITH AND CREDIT AND TAXING POWER OF
THE COUNTY OF OAKLAND WILL BE PLEDGED
NOTICE IS FURTHER GIVEN that in the Lease the County will
obligate itself to make cash rental payments to the Authority in
amounts sufficient to pay the principal of and interest on the
Bonds. The full faith and credit of the County will be pledged
for the making of such cash rental payments. Pursuant to such
pledge of Its full faith and credit, the County will be obligated
to levy such ad valorem taxes upon all taxable property in the
County as shall be necessary to make such cash rental payments,
which taxes, however, will be subject to applicable statutory and
constitutional limitations on the taxing_p2er of the County. _In
addition to its obligation to make cash rental payme:Its, the
County will agree in the Lease to pay all cos=s and expenses of
operation and maintenance of the Project and all expenses of the
Authority incidental to the issuance and payment of the Bonds, to
the extent such expenses are not payable from the proceeds of the
R:GHT TO PETITION FOR REFFRENDUX
NOT:CE IS FURTHER GIVEN to the electors and taxpayers of the
County to inform them of the right to petition for a referendum
on the question of entering into the Lease. The County intends
to enter into the -_,ease without a vote of the electors thereon,
but the Lease shall not becone effective until 60 days after
publication of this notice. If, within 45-days after publication
of this notice, a petition for referendum requesting an election
on the Lease, signed by not less than 10% or 15,000 of the
registered electors of the County, whichever is less, has been
filed with the County Clerk, the Lease shall not become effective
unless and until approved by a majority of the electors of the
County voting thereon at a general or special election.
This notice is given by order of the Board of Commissioners
pursuant to Act 31. Further information may be obtained at the
office of the Oakland County Clerk, County Service Center, 1200
N. Telegraph Rd., Pontiac, Michigan 48341.
EXHIBIT A
Project Description:.
The ?reject includes the acquisition of the Keego Harbor
City Hall and :.he Keego Harbor DPW Building in eego Harbor. The
City Hall / Police Department construction was completed in
October 2008 and is in good repair. It consists primarily of
general offices. The DPW building was completed in 2009.
Several acres of land. City Hal: has 5,800 square, foot and the
DPW building has 5,000 square foot on land sufficient to allow
for the storage of up to 5:5 vehicles. The City Hall community
room is used for council and board meetings and has two
conference rooms. :acility elevations are enclosed for both
buildings.
Legal Description:
The legal description is as follows:
Property located in the County of Oakland, City of Keego
Harbor described as follows: -Lots 157 thru 180 inclusive of
Evergreen Villa, a subd i vision of part of the West of Section
1, 12N, R9E, City of Keego Harbor, Oakland County, Hichigan as
recorded in Ziber 24, Page 14 of Plats, Oakland County Records.
Sidwell 0 18-01-160-001
2
Preliminary Project Cost Estimate:,
Acquisition Costs, Financing
Costs and Bond Discount $1,120,000
Ruth Johnson
Oakland County Clerk
DATED: [Dae of Puolication]
1as.r2-oak219
4- jg Is
(MISC. #10139) FISCAL NOTE June 9, 2010
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: BUILDING AUTHORITY — RESOLUTION AUTHORIZING THE OAKLAND COUNTY
BUILDING AUTHORITY TO FINANCE A PROJECT FOR THE CITY HALL AND THE CITY DPW
BUILDING IN THE CITY OF KEEGO HARBOR, OAKLAND COUNTY, MICHIGAN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above
referenced resolution and finds:
1. The resolution authorizes the Board of Commissioners to pledge the full faith and
credit of the County of Oakland or the payment of principal and interest on Building
Authority bonds to be issued for the City of Keego Harbor.
2. One or more series of bonds in the aggregate principal amount of $1,120,000 may
be issued at an interest rate not to exceed 8% per annum.
3. The statutory limit for County debt is $6,785,898,615 (10 0/D of current State
Equalzed Value). As of May 5, 2010, the total outstanding County pledged credit is
$310,695,588, or approximately .46% of the S.E:V.
4. The City of Keego Harbor will pay for the bonds semi-annually to cover the debt
service payments.
5. No budget amendment is required.
;1110,27:0„„Ce9JANIITTEE
-f-
41,
Resolution #10139 June 9, 2010
Moved by Scott supported by Taub the resolution (with fiscal note attached) be adopted.
AYES: Hatchett, Jackson, Jacobsen, Long. McGillivray. Middleton, Nash, Potter, Potts,
Runestad, Schwartz, Scott, Taub, Woodward, Zack, Bullard, Burns, Cabello, Coleman, Coulter,
Douglas, Gershenson, Gingell, Gosselin, Greimel. (25)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted.
I HEREBY APPROVE THE FORMING RESOLUTION
ACTING PURSUANT TO 1973 PA 139
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 9,
2010, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 9th day of June, 2010.
ede
Ruth Johnson, County Clerk