HomeMy WebLinkAboutResolutions - 2010.10.06 - 10299MISCELLANEOUS RESOLUTION #10250 October 6, 2010
BY: PLANNING AND BUILDING COMMITTEE, JOHN SCOTT, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (Trynex, Inc. PROJECT) - CITY OF MADISON HEIGHTS
To Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS The Economic Development Corporation of the County of Oakland
(the "EDC) has recommended that the Board of Commissioners approve the
Project Plan required by the Economic Development Corporations Act (the "Act")
for the captioned Project, a copy of which has been presented to this meeting
(the "Project Plan"); and
WHEREAS the EDC's recommendations to the Board of Commissioners were
based upon its determinations that the Project is reasonable and necessary to
effectuate the purposes of the Act, that the Project Plan satisfies all of the
requirements of the Act regarding project plans and that a letter of credit
issued by a financial institution acceptable to the EDC will be available to
pay debt service; and
WHEREAS the governing body of the City of Madison Heights, Oakland
County, Michigan, has also approved the Project Plan and given its consent to
the exercise of jurisdiction over the Project by the EDC; and
WHEREAS the Board cf Commissioners has held a public hearing to consider
whether the Project Plan constitutes a nublic purpose as contemplated by the
Act; and
WHEREAS the Board of Commissioners, following such public hearing and
its review of the Project Plan, hereby certifies, approves and concurs in the
determinations of the EDC with respect thereto.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners hereby determines that the Project Plan constitutes a public
purpose as contemplated by the Act.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners
hereby certifies and approves the Project Plan.
BE IT FURTHER RESOLVED that the EDC is hereby authorized to take such
steps as are necessary to implement the Project and the financing thereof by
the issuance of its limited obligation revenue bonds as contemplated by the
Project Plan.
BE IT FURTHER RESOLVED that the County Clerk is hereby directed to
provide four certified conies of this resolution to the Assistant Secretary of
the Board of the EDC.
Chairperson, on behalf of the Planning and Building Committee, I move
the adoption of the foregoing resolution.
PLANNING AblirtUILDING APMMITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roli call vote with Jacobsen absent.
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County. Michigan
TrynEx, Inc Project
PROJECT PLAN
CONTENTS
1, Summary Description of Project (Page 1)
2. Project Plan Certification by Company (Page 2)
3. Statutorily Required Information (Page 3)
4. Exhibits
• Project Area Legal Description
• - Letter of Credit or Bond Purchaser's Commitment Letter
"C" - Company Certificate Regarding Transfer of Employment
• - Company Certificate Regarding Payment of Prevailing Wages
Other
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PROJECT PLAN
SUMMARY DESCRIPTION OF
TrynEx, Inc. Project
OWNER OF PROJECT: Dyramex Property. LLC, a Michigan limited liability company
TrynEx. Inc., a Michigan corporation
CONTACT PERSON: Larry Urseli Tel: (586)756-6555 x3425
23455 Regency Park Dr Pax: (586)755-0338
Warren, MI 48089
LOCATION OF PROJECT: 631 Ajax Dr, Madison Heights, MI 48071
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT: The project consists of the acquisition of 6,00 acres of land. the
acquisition and rehabilitation of an existing approx. 120,000 s.f.
manufacturing facility located on the property, and the
acquisition and installation of machinery and equipment.
EMPLOYMENT CREATED OR RETAINED: 20 new jobs are expected to be created and 35
existing jobs will be retained.
TOTAL PROJECT COST: S2,850,000
BONDS TO BE ISSUED: $2.120,000
LETTER OF CREDIT ISSUER OR BOND PURCHASER: Comerica Bank
DATE AND EXPIRATION DATE OF LETTER OF CREDIT OR BOND PURCHASE
COMMITMENT:
TrynEx, Inc. Dynamex Properties, LLC
V. 6,4,1,1.-14 4 5c.L.,_
Dated: q —1 6 —1 0
By
Its:
Dated: 946 — /0
PROJECT PLAN CERTIFICATION
THIS PROJECT PLAN WAS PREPARED FOR THE
ECONOMIC DEVELOPMENT CORPORATION OF THE
COUNTY OF OAKLAND IN ACCORDANCE WITH THE
REQUIREMENTS OF THE ECONOMIC DEVELOPMENT
CORPORATIONS ACT, ACT NO. 338 OF THE IvIIC1-11GAN
PUBLIC ACTS OF 1974, AS AMENDED,
THE UNDERSIGNED HAS PROVIDED ALL OF THE
INFORMATION CONTAINED HEREIN AND HEREBY
CERTIFIES AS TO THE ACCURACY AND VALIDITY OF
SUCH INFORMATION AS OF THIS DATE.
THE UNDERSIGNED UNDERSTANDS THAT THIS PROJECT
PLAN IS STATUTORILY REQUIRED AND, IF IT CONTAINS
ANY MATERIAL MISREPRESENTATION OR
INACCURACY, COULD RESULT IN THE INVALIDATION
OF THE ECONOMIC DEVELOPMENT CORPORATION
PROCEEDINGS REGARDING THE PROJECT TO WHICH
THE PROJECT PLAN PERTAINS.
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
TrynEx, Inc. Project
A. THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER
PUBLIC FACILITIES WITI-IN THE PROJECT DISTRICT AREA; THE LOCATION,
CHARACTER, AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRIVATE LAND
USES NOW EXISTING AND PROPOSED FOR THE PROJECT AREA, INCLUDING
RESIDENTIAL, RECREATIONAL, COMMERCIAL, INDUSTRIAL, EDUCATIONAL, AND
OTHER USES: AND A LEGAL DESCRIPTION OF THE PROJECT AREA
The Project site that is a part of the Project Plan is comprised of an existing
approximately 120,000 s.f manufacturing facility situated on 6.00 acres of land located
on the South side of Ajax Drive about :/10 mile west of John R Road. Ajax Drive is
located 1/4. miles north of 12 Mile Road. The facility location is surrounded to the East,
West, and North by light industrial/heavy industrial. and to the South by the 12 town
drain project.
The location of the Project Area is set forth in the legal description attached hereto.
There will be no alterations of the existing improvements in the Project Area, other than
interior building renovations and interior building improvements which may be ancillary
to the installation of the machinery and equipment comprising the Project.
Legal description of Project Area attached as Exhibit A.
B. A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE PROJECT AREA
TO BE DEMOLISHED, REPAIRED, OR ALTERED; A DESCRIPTION OF REPAIRS AND
ALTERATIONS; AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION
There will be no alterations of the existing improvements in the Project Area, other than
interior building renovations and interior building improvements which may be ancillary
to the installation of the machinery and equipment comprising the Project.
C. THE LOCATION, EXTENT, CHARACTER, AND ESTIMATED COST OF
THE IMPROVEMENTS, INCLUDING REHABILITATION CONTEMPLATED FOR THE
PROJECT AREA, AND AN ESTIMATE OF THE TIME REQUIRED FOR COlviPLE,TION:
Tryn.Ex, Inc. intends to make renovations to the facility over the next year. Proposed
renovations include renovation of roof, interior refurbishing the floors with an industrial
epoxy coating, painting of interior and exterior, renovating the data infrastructure, voice
communication, security system, surveillance equipment, electrical, plumbing, air
compression and circulation systems, upgrade of a heating and air conditioning system,
and performing various interior and exterior renovations. These renovations are
estimated to cost approx. $600,000. MI renovations are expected to be completed within
a year time frame from the date of issuance of the Bonds.
3
Description of Bond Project Costs Estimated Amounts
Land 20,000
Building 1,700,000
Machinery and Equipment
Building Renovation 400_000
TOTAL COSTS 2,120,000
D. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE:
Not Applicable
E. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
There will be no change to areas left as open spaces in the Project Area.
F. A DESCRIPTION OF PORTIONS OF THE PROJECT AREA WHICH THE
ECONOMIC DEVELOPMENT CORPORATION OR THE COMPANY DESIRES TO SELL,
DONATE, EXCHANGE OR LEASE TO OR FROM THE MUNICIPALITY AND THE
PROPOSED TERMS:
The Economic Development Corporation of the County of Oakland (the "EDC") will not
sell, donate, exchange or lease any portion of the Project Area to or from the
municipality.
G. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES TN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
No changes in zoning, streets, street levels, intersections or utilities as a result of the
Project.
H. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE
PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER:
The project will be financed through the issuance and sale of The Economic
Development Corporation of the County of Oakland industrial revenue bonds in an
aggregate principal amount not to exceed $2,120,000. The bonds will be structured as
variable rate demand obligations secured by a letter of credit issued by a commercial
4
bank. The Borrower has obtained a commitment from Comerica Bank to provide a letter
of credit to secure the bonds (see Attachment B) and by Comerica Securities to act as
placement agent in the offering and sale of the bonds.
The bonds will not be a general obligation of any governniental unit and will not be
payable from tax revenues or other funds of either the COUrity of Oakland or the State of
Michigan.
The proceeds of the Bonds will be lent to the Applicant pursuant to a loan agreement by
and between the Applicant and the EDC and will be used by the Applicant and the EDC
for the purpose of financing the costs of the Project and certain eligible issuance costs
relating thereto. In accordance with the loan agreement, the Applieant will be obligated
to make payments sufficient to make timely payments of principal and interest on the
Bonds. [he Bonds will not be a general obligation of the EDC but will be secured by a
pledge of revenues in the loan agreement.
1. A STATEMENT REGARDING THE PAYMENT OF PREVAILING WAGE
AND FRINGE BENEFIT RATES AS DETERMINED PURSUANT TO ACT NO. 166 OF TILE
MICHIGAN PUBLIC ACTS OF 1965, AS AMENDED (REGARDING WAGES ON STATE.
CONTRACTS):
Ste exhibit D
I A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH
THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN I (ONE)
YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN:
Charles Truan - President
James Trwiri - Vice President
K. DESIGNATION OF THE PERSON OR PERSONS, NATURAL OR
CORPORATE, TO WHOM THE PROJECT IS TO BE LEASED, SOLD OR CONVEYED
AND FOR WHOSE BENEFIT THE PROJECT IS BEING UNDERTAKEN, TO THE EXTENT
THAT INFORMATION IS PRESENTLY AVAILABLE:
The Project is being undertaken for the benefit of TrynEx, Inc. and their respective
shareholders and will be operated by TrynEx, Inc. The Machinery and Equipment
portion of the Project is not expected to be sold or conveyed to any other party. The land
and building portion of the Project will be owned by Dynamex, LLC. The machinery
equip portion of the Project will be owned and operated by TrynEx, Inc., and the entire
facility will be operated by TrynEx, Inc.
L. IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT WITH A
PERSON OR PERSONS, NATURAL OR CORPORATE, THAT THE PROJECT WILL BE
LEASED, SOLD, OR CONVEYED TO THOSE PERSONS, THE PROCEDURES FOR
BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECT
UPON ITS COMPLETION:
5
Not Applicable
M. ESTIMATES OF THE NUMBER OF PERSONS RESIDING IN THE PROJECT
AREA AND THE NUMBER OF FAMILIES AND INDIVIDUALS TO BE DISPLACED. IF
OCCUPIED RESIDENCES ARE DESIGNATED FOR ACQUISITION AND CLEARANCE,
rNCLUDE A SURVEY OF THE FAMILIES AND INDIVIDUALS TO BE DISPLACED,
INCLUDING THEIR INCOME AND RACIAL COMPOSITION, A STATISTICAL
DESCRIPTION OF THE HOUSING SUPPLY IN THE COMMUNITY, INCLUDING THE
NUMBER OF PRIVATE AND PUBLIC UNITS IN EXISTENCE OR UNDER
CONSTRUCTION, THE CONDITION OF THOSE IN EXISTENCE, THE NUMBER OF
OWNER-OCCUPIED AND RENTER-OCCUPIED UNITS, THE ANNUAL RATE OF
TURNOVER OF THE VARIOUS TYPES OF HOUSING AND THE RANGE OF RENTS
AND SALE PRICES, AN ESTIMATE OF THE TOTAL DEMAND FOR HOUSING IN THE
COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC
HOUSING AVAILABLE TO DISPLACED FAMILIES AND rNDIVIDUALS:
Not Applicable
N. A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT AREA:
Not Applicable
a PROVISION FOR THE COSTS OF RELOCATING PERSONS DISPLACED
BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSEMENT OF
EXPENSES, INCLUDING LITIGATION EXPENSES AND EXPENSES INCIDENT TO THE
TRANSFER OF TITLE, IN ACCORDANCE WITH THE STANDARDS AND PROVISIONS
OF THE FEDERAL UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION POLICIES ACT OF 1970, 42 U.S.C. 4601 TO 4655:
Not Applicable
P. A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF THE MICHIGAN
PUBLIC ACTS OF 1972, WHICH PERTAINS TO PROVIDING FINANCIAL ASSISTANCE.
ADVISORY SERVICES AND REIMBURSEMENT OF CERTAIN EXPENSES TO
DISPLACED PERSONS:
Not Applicable
Q. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS
PERTINENT:
Not Applicable
6
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
Parcel ID g 25-11-427-015:
TIN, R1 1E, SEC 11 PART OF SE 1/4 BEG AT PT DIST W 1199.01 FT & N 00-40-23 E
1705.17 FT & N 46-23-58 E 41.02 FT FROM SE SEC COR, TH N 00-42-19 E 683.30 FT,
Tli ALG CURVE TO LEFT, RAD 3771.77 FT, CHORD BEARS S 86-53-54 E 293.65 FT,
DIST OF 293.72 FT, TH S 89-07-45 E 3630 FT. TH S 00-20-58 W 442.86 FT, TH S 85-05-
51 W 110.36 FT, TH S 46-23-58W 311.07 FT TO BEG 4.02 A 3-14-89 FROM 014
Parcel ID 4 25-11-427-016:
TIN, Rl1E, SEC 11 PART OF SE 1/4 BEG AT PT 01ST W 1199.01 FT & N 00-40-23 E
1705.17 FT & N 46-23-58 E 352.09 FT & N 85-05-48 E 110.36 FT FROM SE SEC COR,
TIT N 00-20-58 E 442.86 FT, TH S 89-07-45 E 186 FT, TH S 00-20-58 W 424.07 FT, Til S
85-05-48 W 186.78 FT TO BEG 1.85 A 3-14-89 FROM 014
,
Exhibit B
LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER
•
BM=
Comorica Bank
Middle Market Banking
Macomb Loan Group
28801 Groesbeck
Roseville, Mt 48066
Cindy Rehberg
Vice President &
Alternate Group Manager
(586) 445-0185
September 20, 2010
Mr. Charles Truan, President
Trynex,
23455 Regency Park Drive
Warren, M1 48089
Dear Mr. Truan,
We are pleased to confirm that Cornerica Bank ("Bank") has approved a Letter of Credit CLOC")
for Trynex, Inc. and Dynamex Properties LLC to support an Economic Development Corporation
of the County of Oakland ("EDC") tax exempt bond financing of up to $2,120,000 principal
amount for the acquisition of land and an existing building, renovations and improvements to the
land and building, and the acquisition and installation of machinery and equipment, all to be
placed in service within the City of Madison Heights, Michigan anti operated by Tryncx, hic,(the
"Obligor"). This letter is Bank's offer to commit to said LOC to support such financing, subject
to the tenns and conditions described in the approval and to documentation satisfactory in form
and content to Bank, Butzel Long, PC, as Bond Counsel, the EDC, and subject to an appropriate
volume cap allocation by Michigan Department of Treasury.
This offer to commit shall expire at Bank's option if (a) Bank has not received Obligor's
acceptance by the Acceptance Date, or (b) there is a material adverse change in the financial
condition and affairs of Obligor from that represented to Bank,
We will help in any way we can and look forward to working with you on this project. Please
call me at any time if there are any questions on the content of this letter or the contemplated
transaction.
Very truly yours,
COMERICA BANK
Cindy Rehberg
Vice President
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Tryax, Inc. Project)
The undersigned, TrynEx, Inc., a Michigan corporation (the "Company"), hereby certifies
to The Economic Development Corporation of the County of Oakland (the "EDC') as follows:
1. This Certificate is made and based upon the best of the Company's knowledge and
belief, only after thorough investigation and discussion with all owners of the Company and
others who might have knowledge regarding the subject matter.
2. The Company acknowledges that this Certificate will be employed by the EDC as
the sole basis for the EDC's certification to the Board of Commissioners of the County of
Oakland as to transfer of employment as required by Section 8(3) of the Economic Development
Corporations Act. Act No. 338 of the Michigan Public Acts of 1974, as amended (the "Act").
3. The Company understands that the EDC's Certification to the Board of
Commissioners of the County of Oakland is a statutory requirement which, if improperly made
or based upon any material misrepresentation or inaccuracy, might invalidate the proceedings
regarding the TrynEx, Inc. Project (the "Project") pursuant to which the EDC expects ultimately
to issue its limited obligation economic development revenue bonds to finance all or part of the
Project.
4. As of the date hereof, the Project shall not have the effect of transferring
employment of more than 20 full-time persons from a municipality (as that term is defined in the
Act) of this State to Madison Heights, Michigan, the municipality in which the Project will be
located, unless the Company has first obtained a consent to the proposed transfer of employment
from the governing body of each municipality from which employment is to be transferred.
5. The Company understands that a covenant to effectuate the purposes of this
Certificate will be included in those covenants to be made by the Company when bonds are
issued by the EDC for the benefit of the Project.
r
TrynEx, Inc. Dynamex Properties, LLC
By:
Its: 'Vice President Its: Member
Dated: September 16, 2010 Dated: September 16, 2010
C.-2
TrynEx, Inc Dynarnex Properties, LLC
Dated: I") Dated;
Exbibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(TrynEx, Inc. Project)
The undersigned. TrynEx. Inc., a Michigan corporation (the "Company'), hereby certifies
to The Economic Development Corporation of the County of Oakland (the "EDC") as follows:
1. The Company understands that this Certificate is a statutory requirement under
the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974,
as amended (the "Act") which, if improperly made or based upon any material misrepresentation
or inaccuracy, might invalidate the proceedings regarding the TrynEx, Inc. Project (the "Project")
pursuant to which the EDC expects ultimately to issue its limited obligation economic
development revenue bonds to finance all Or part of the Project.
2. Within the meaning and intent of Section 8(4)(h) of the Act, all persons
performing work on the construction of the Project will be paid the prevailing wage and fringe
benefit rates for the same or similar work in the locality in which the work is to be performed, as
determined pursuant to Act No, 166 of the Michigan Public Acts of 1965, as amended.
D-1
• 'p s.
Resolution #10250 October 6, 2010
Moved by Runestad supported by Coulter the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted.
AYES: Burns, Coleman. Coulter, Douglas, Gershenson, Gingell, Gosselin, Greimel, Hatchett,
Jackson, Jacobsen, Long, McGillivray, Middleton, Nash. Potts, Runestad, Schwartz, Scott, Taub.
Woodward, Bullard. (22)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted.
1 IRBY APP,E.TIIMGOING RESOLUTION
.0//
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 October 6,
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 e day of October, 2010.
Gat
Ruth Johnson, County Clerk