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HomeMy WebLinkAboutResolutions - 1986.02.13 - 10654MISCELLANEOUS RESOLUTION NO. 86017 RE: ECONOMIC DEVELOPMENT GROUP RESOLUTION APPROVING PROJECT PLAN (MARK T. JACOBSON & ASSOCIATES, INC. PROJECT) BY: PUBLIC SERVICES COMMITTEE, JAMES EDWARD LANNI, CHAIRMAN TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairman, Ladies and Gentlemen: WHEREAS, The Economic Development Corporation of the County of Oakland (the "EDC") has recommended that this Board of Commissioners approve the Project Plan required by the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974, as amended (the "Act") for the Mark T. Jacobson & Associates, Inc. Project, a copy of which Project Plan is attached hereto as Exhibit A (the "Project Plan"); and WHEREAS, the EDC's recommendation to this Board of Commissioners was based upon its determinations that the Project is reasonable and necessary to effectuate the purposes of the Act, that the Project Plan prepared in connection with the Project satisfies all of the requirements of Section 8 of the Act regarding project plans, that the persons who will be active in the management of the project for at least one (1) year after the projected date of the County Board of Commissioner's approval of the Project Plan will have sufficient ability and experience to manage the Plan properly, and that the proposed method of financing the Project is feasible and a bond purchaser's commitment has been obtainea; and WHEREAS, on January 27, 198 6 , the governing body of the Village of Bingham Farms, Oakland County, Michigan, also approved the Project Plan; and ; T. ilitvrOhy, unt) tive, ABSENT: McDonald, Pernick, Calandro, (3) WHEREAS, on February 13, 1986, this board of Commissioners held a public hearing to consider whether the Project Plan constitutes a public purpose as contemplated by the Act; and WHEREAS, this Hoard of Commissioners, following such public hearing and its review of the Project Plan, concurs in the determinations of the EDC with respect thereto; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF OAKLAND, as follows: I. The Project Plan, in the form attached hereto as Exhibit A, be and is hereby determined to constitute a public purpose as contemplated by the Act. 2. The Project Plan be and is hereby approved. 3. The EDC be and is hereby authorized to take such steps as are necessary to implement the Project and the financing thereof by the issuance of revenue bonds or notes. 4. The County Clerk be and is hereby directed to provide four certified copies of this resolution to the Assistant Secretary of the Board of the EDC. The Public Services Committee, by James Edward. Lanni, Chairman, moves for adoption of the foregoing resolution. #-IL43,Y i-PROVE i HE F OREGOING RESOLUTION PUBLIC SERVICES COMMITTEE . , , James -ward Lanni Chairman „,/ Moved by Lanni supported by Richard Ktibm —the resolution be adopted. YEAS: NAYS: McConnell, McPherson, Moffitt, Nelson, Olsen, Page, Perinoff, Price, Rewold, Skarritt, Webb, Wilcox, Aaron, Caddell, Doyen, Fortino, Gosling, Hassberger, Hobart, Holland, Richard Kuhn, Susan Kuhn, Lanni, Law. (24) NONE, (0) ABSTENTIONS: NONE. 2 RESOLUTION DECLARED ADOPTED: Allen Co4hty Clerk STATE OF MICHIGAN) ) SS. COUNTY OF OAKLAND) I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a regular meeting of the Board of Commissioners of the County of Oakland, Michigan held on the 13th day of February , 1986, the original of which is on file in my office. Public notice of said meeting was given pursuant to and in compliance with Act No. 267 of the Michigan Public Acts of 1976, as amend Allen ty Clerk Dated: February 13 , 1986 3 THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County, Michigan Mark T. Jacobson Project PROJECT PLAN CONTENTS 1. Summary Description of Project (Page 2) 2, Project Plan Certification by Company (Page 3) 3. Statutorily Required Information (Page 4) 4. Exhibits "A" - Project Area Legal Description Site Plan FiBn - Bond Purchaser' s Commitment Letter Company Certificate Regarding "Prevailing Wages" vIDIT - Company Certificate Regarding Transfer of Employment Other M-315E PROJECT PLAN SUMMARY DESCRIPTION OF MARK T. JACOBSON PROJECT OWNER OF PROJECT: Mark T. Jacobson CONTACT PERSON: Gerald J. Sheehan Acquisitions Director 24567 Northwestern Highway Suite 400-B Southfield, MI 48075 (313) 353-8191 LOCATION OF PROJECT: Village of Bingham Farms PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Office Building EMPLOYMENT CREATED OR RETAINED: Eighteen jobs ESTIMATED TOTAL PROJECT COST: $2,381,000 BONDS TO BE ISSUED: $1.8-2.0 million BOND PURCHASER: Franklin Savings DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT: Date of Commitment: 11/08/85 Expiration Date: 12/31/85 3 PROJECT PLAN CERTIFICATION THIS PROJECT PLAN WAS PREPARED FOR THE ECO- NOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND IN ACCORDANCE WITH THE REQUIRE- MENTS OF THE ECONOMIC DEVELOPMENT CORPORA- TIONS ACT. ACT NO. 338 OF THE MICHIGAN PUB- LIC ACTS OF 1974, AS AMENDED. THE UNDERSIGNED HAS PROVIDED ALL OF THE IN- FORMATION CONTAINED HEREIN AND HEREBY CERTI- FIES 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 CON- TAINS ANY MATERIAL MISREPRESENTATION OR IN- ACCURACY, COULD RESULT IN THE INVALIDATION OF THE ECONOMIC DEVELOPMENT CORPORATION PROCEED- INGS REGARDING THE PROJECT TO WHICH THE PRO- JECT PLAN PERTAINS. Dated: Novembera; 1985 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARD ING MARK T. JACOBSON PROJECT I. THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER PUBLIC FACILITIES WITHIN 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 PRO- JECT AREA: The Project District Area is entirely located within certain real estate commonly known as 32400 Telegraph Road, Bing- ham Farms, Michigan. The Project Area is a single 2.28 acre parcel of land. The Project Area is contiguous with the east side of northbound Telegraph Road and is located between 13 Mile Road and 14 Mile Road. There are no streets or other public facilities within the Project Area. The entire Project Area was formerly privately owned, unimproved real property zoned Office Services, which zoning classification is still in effect. The entire Project Area will be used for office pur- poses consistent with applicable zoning and other ordinances and laws. A legal description of the Project Area is attached as Exhibit A. II. A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE PROJECT AREA TO BE DEMOLISHED, REPAIRED, OR ALTERED; A DESCRIP- TION OF REPAIRS AND ALTERATIONS; AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION: There are no existing improvements in the Project Area to be demolished, repaired or altered. III. 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 COMPLETION: See site plan, attached as Exhibit A-1 for location and extent of improvements in the Project Area. The improvements will include an office building containing approximately 20,000 square feet of leaseable space, a paved roadway around the building and approximately 89 parking spaces. The estimated date - 4 - MEI 5 of completion is May, 1986. No rehabilitation is contemplated. for the Project Area. The estimated cost of improvements are as follows: Land Site Improvements Construction of building and related general conditions Construction Contingencies (5% above construction costs) Working Capital *Cost of issuance of bonds $ 595,000.00 125,450.00 1,400,050.00 65,500.00 125,000.00 70,000.00 TOTAL $2,381,000.00 The cost of improvements in excess of the proceeds of the bonds to be issued by the Corporation will be paid by the Applicant *Includes: commitment fee, underwriter's discount, Bond Trustee fee, Indexing agent fee, printing costs, Bond Counsel fees, Bank's counsel fee, underwriter counsel fees and Applicant's counsel fees. IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: Applicant plans to construct an office building con- taining approximately 20,000 square feet together with all neces- sary and required parking therefor, which will be constructed in its entirety in one stage, and which will be completed by approx- imately May, 1986. V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: The westerly and the easterly sixty (60') feet will be left as open space. The westerly open space will contain a four (4') feet high landscaped berm. The easterly open space will contain a six (6') feet high landscaped berm. Areas left unpaved or not built upon will be sodded and landscaped. VI. 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: Not applicable. VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES: There are no zoning changes desired. There are no desired changes in streets, street levels, intersections and utilities, except for curb cuts and the connection of existing utilities to the building to be constructed in accordance with the Applicant's site plan. VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINAN- CING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S COMMITMENT LETTER: The cost of the Project will be financed by the sale of bonds to McDonald & Company. A copy of the bond purchaser's Commitment Letter is attached hereto as Exhibit B. Any cost of the Project which exceeds aggregate bond proceeds will be paid by the Applicant. IX, A STATEMENT REGARDING THE PAYMENT OF PREVAILING WAGE AND FRINGE BENEFIT RATES AS DETERMINED PURSUANT TO ACT NO. 166 OF THE MICHIGAN PUBLIC ACTS OF 1965, AS AMENDED (REGARDING WAGES ON STATE CONTRACTS) : See Exhibit C. X. A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN 1 (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN: The Project shall be managed by Mark T. Jacobson. XI. 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: Approximately 4,000 square feet of office space will be leased to Mark T. Jacobson & Associates, Inc. and approximately 4,000 square feet will be leased to Ginn, Kramer & Jacobson. - 6 - 7 8,19• XII. 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 PROCE- DURES FOR BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECT UPON ITS COMPLETION: The Applicant intends to engage the services of Bur- land, Reiss, Murphy & Rambiesa, Inc., to act as the leasing agent for the Project. XIII. 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, INCLUDE 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 HOUS- ING IN THE COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS: Not applicable. No people presently reside in the Project Area, no families or individuals will be displaced by the Project, and no residences-are located in the Project Area. XIV. A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCA- TION OF PERSONS DISPLACED BY THEPROJECT IN NEW HOUSING IN THE PROJECT AREA: Not applicable. XV. PROVISION FOR THE COSTS OF RELOCATING PERSONS DISPLACED BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSE- MENT OF EXPENSES, INCLUDING LITIGATION EXPENSES AND EXPENSES INCIDENT TO THE TRANSFER OF TITLE, IN ACCORDANCE WITH THE STAN- DARDS 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. 8 XVI. A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF THE MICHIGAN PUBLIC ACTS OF 1972, WHICH PERTAINS TO PROVIDING FINAN- CIAL ASSISTANCE. ADVISORY SERVICES AND REIMBURSEMENT OF CERTAIN EXPENSES TO DISPLACED PERSONS: Not applicable. XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT CORP- ORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTI- NENT: Not applicable. EXHIBIT A-1 Part of the Northeast quarter of Section 5, Southfield Township, beginning at a point distant north 1141.54 feet and north 88 degrees 18 minutes West, 655.66 feet from the east quarter corner; thence north 88 degrees 18 minutes West, 425 feet; thence north 5 degrees 25 minutes 30 seconds east along easterly line of Telegraph Road, 265.50 feet; thence south 89 degrees 7 minutes 40 seconds east, 425 feet; thence south 5 degrees 19 minutes 50 seconds west, 271.64 feet to the point of beginning. Subject to the rights of the public and of any governmental unit in any part thereof taken, used, or deeded for street, road, or highway purposes. Being 2.28 acres. 'Very truly you Daniel F. Abstin First Vice President EXHIBIT B Md)ONALD & COMP SECURITIES, INC_ MEMBER NEW YORK STOCK EXCHANGE 401 SOUTH WOODWARD AVENUE • SUITE 333 P.O. BOX 4475 BIRMINGHAM, MICHIGAN 48011 - 313/5401221 November 8, 1985 Mr. Jeffrey A_ Kaczmarek Manager Oakland County Economic Development Corp. Executive Office Building 1200 N. Telegraph Road Pontiac, MI 48053 RE: $2,000,000 Oakland County Economic Development Corporation Limited Obligation Revenue Bonds Mark T. Jacobson Project (Obligor) - Franklin Savings and Loan Association, Issuer of Irrevocable Collateralized Letter of Credit Dear Mr. Kaczmarek: McDonald & Company Securities, Inc. ("McDonald") is pleased to parti- cipate as Underwriter on the above referenced financing. After bond documents have been prepared and after the completion of a short pre- liminary marketing period, McDonald expects to exeucte a Bond Purchase Agreement with the Oakland County Economic Development Corporation and with Mark T. Jacobson. This binding agreement will establish the exact terms and conditions by which McDonald agrees to purchase the above ref- erenced bonds. This binding agreement will commit McDonald to purchase all of the bonds on a firm underwriting basis when, as , and if such bonds are issued. Our commitment as described herewith, will expire on December 31, 1985 unless previously extended. DFA/sgs CC: Jeffrey Howard, Esq. Robert Schwartz, Esq. Exhibit C COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES (Mark T. Jacobson Project) The undersigned, Mark T. Jacobson, ("Jacobson"), hereby certifies to The Economic Development Corporation of the County of Oakland (the "EDC") as follows: I. This Certificate is made and based upon the best of Jacobson's knowledge and belief, only after thorough inves- tigation and discussion with those who might have knowledge re- garding the subject matter. 2. Jacobson 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 Mark T. Jacobson Project (the "Project") pursuant to which the EDC expects ultimately to issue its limited obliga- tion economic development revenue bonds to finance all or part of the Project. 3. 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. Dated: NovemberA4-1985 M -346E Exhibit D COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT (Mark T. Jacobson Project) The undersigned, Mark T. Jacobson, ("Jacobson"), 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 Jacobson's knowledge and belief, only after thorough inves- tigation and discussion with those who might have knowledge re- garding the subject matter. 2. Jacobson acknowledges that this Certificate will be employed by the EDC as the sole basis for the EDC's certifica- tion to the Board of Commissioners of the County of Oakland as to transfer of employment as required by Section 8(3) of the Econo- mic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974, as amended, (the "Act"). 3 Jacobson understands that the EDC's Certification to the Board of Commissioners of the County of Oakland is a sta- tutory requirement which, if improperly made or based upon any material misrepresentation or inaccuracy, might invalidate the proceedings regarding the Mark T. Jacobson Project (the "Pro- ject") 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 the Village of Bingham Farms, Michigan, the municipality in which the Project will be located. 5. Jacobson agrees that during any 12 month period during the life of the bonds proposed to be issued by the EDC to finance the costs of the Project for Jacobson, Jacobson will not permit a lease or sublease in connection with the Project which would have the effect of transferring, as to such lease, sublease or group of leases or subleases which are interrelated (i.e. "interrelated" means leases negotiated as part of one set of negotiations or leases with lessees who are related by more than 50% common ownership), employment of more than 20 full-time per- sons from a municipality of this State to the Village of Bingham Farms, Michigan unless Jacobson or such lessee or sublessee has M -283E first obtained, (i) a consent to the proposed transfer of employ- ment from the governing body of each municipality from which employment is to be transferred, or (ii) the legal opinion of nationally recognized bond counsel that such consent is not re- quired. 6. Jacobson understands that a covenant to effectuate the purposes of this Certificate will be included in those cove- nants to be made by Jacobson when bonds are issued by the EDC for the benefit of the Project. Mark T. Dated: November/7-7-198S Jeffrey A. Kaczrnarek Manager Jack C. Hayes General Counsel Fred C. Seeley Chairperson Jack Martin Vice Chairperson Peter J. Christian° Secretary C. Hugh Dohany Treasurer MEMORANDUM ode Economic Development Corporation of the County of Oakland, Michigan Axe & Schwartz Bond Counsel TO: Oakland County Board of Commissioners FROM: Jeffrey A. Kaczmarek, Manager, Business Development DATE: January 28, 1986 RE: Mark T. Jacobson & Associates, Inc. EDC Project Subsequent to approval of the Project Plan for the Mark T. Jacobson & Associates, Inc. ROC Project by the Oakland County Economic Development Corporation a number of changes were made to the Project Plan document by the project developer and the Village of Bingham Farms. These changes are now incorporated in the Project Plan which you will be acting upon. The changes are indicated in pen on the original Project Plan, and are as follows: P. 2 - Change date of Bond Purchase Commitment from 11/08/85 to 1/24/86 Change date of Bond Purchase Expiration from 12/31/85 to 3/24/86 P. 4, Section I - Change "real property zoned Office Services" to "real property zoned Professional Services" P. 6, Section VIII - Change "financed by the sale of bonds to McDonald & Company" to "financed by the sale of bonds to Franklin Savings" A commitment letter from Franklin Savings is also attached as new Exhibit "B". Elms. (313) 858-0732 Executive Office Building * 1200 North Telegraph Road • Pontiac, Michigan • 48053 PROJECT PLAN SUMMARY DESCRIPTION OF MARK T. JACOBSON PROJECT OWNER OF PROJECT: Mark T. Jacobson CONTACT PERSON: Gerald J. Sheehan Acquisitions Director 24567 Northwestern Highway Suite 400-B Southfield, MI 48075 (313) 353-8191 LOCATION OF PROJECT: Village of Bingham Farms PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Office Building EMPLOYMENT CREATED OR RETAINED: Eighteen jobs ESTIMATED TOTAL PROJECT COST: $2,381,000 BONDS TO BE ISSUED: $1.8-2.0 million BOND PURCHASER: 'Franklin Savings DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT: Date of Commitment: -estes- Expiration Date: _12/31 /as- 2 was formerly privately owned, Services, which zoning 4,10 0140 all 4 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING MARK T. JACOBSON PROJECT I. THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER PUBLIC FACILITIES WITHIN 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 PRO- JECT AREA: The Project District Area is entirely located within certain real estate commonly known as 32400 Telegraph Road, Bing- ham Farms, Michigan, The Project Area is a single 2.28 acre parcel of land. The Project Area is contiguous with the east side of northbound Telegraph Road and is located between 13 Mile Road and 14 Mile Road. There are no streets or other public facilities within the Project Area. The entire Project Area unimproved real property zoned , classification is still in effect_ The entire Project Area will be used for office pur- poses consistent with applicable zoning and other ordinances and laws. A legal description of the Project Area is attached as Exhibit A. II. A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE PROJECT AREA TO BE DEMOLISHED, REPAIRED, OR ALTERED; A DESCRIP- TION OF REPAIRS AND ALTERATIONS; AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION: There are no existing improvements in the Project Area to be demolished, repaired or altered. III. 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 COMPLETION: See site plan, attached as Exhibit A-1 for location and extent of improvements in the Project Area. The improvements will include an office building containing approximately 20,000 square feet of leaseable space, a paved roadway around the building and approximately 89 parking spaces. The estimated date 6 VI. 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: Not applicable. VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES: There are no zoning changes desired. There are no desired changes in streets, street levels, intersections and utilities, except for curb cuts and the connection of existing utilities to the building to be constructed in accordance with the Applicant's site plan. VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINAN- CING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S COMMITMENT LETTER: F/Avl 4'n cost of the Project will be financed by the sale of bonds A copy of the bond purchaser's Commitment Letter is attached hereto as Exhibit B. Any cost of the Project which exceeds aggregate bond proceeds will be paid by the Applicant. IX. A STATEMENT REGARDING THE PAYMENT OF PREVAILING WAGE AND FRINGE BENEFIT RATES AS DETERMINED PURSUANT TO ACT NO, 166 OF THE MICHIGAN PUBLIC ACTS OF 1965, AS AMENDED (REGARDING WAGES ON STATE CONTRACTS): See Exhibit C. X_ A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN 1 (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN: The Project shall be managed by Mark T. Jacobson. XI. 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: Approximately 4,000 square feet of office space will be leased to Mark T. Jacobson & Associates, Inc. and approximately 4,000 square feet will be leased to Ginn, Kramer& Jacobson. EXHIBIT B allE11.11 ..gs December 23, 1985 Mr. Mark T. Jacobson 24567 Northwestern Highway Southfield, Michigan 48075 Re: Oakland County Economic - Development Corp. 32400 Telegraph Rd. Bingham Farms, Michigan Gentlemen: Franklin Savings and Loan Association ("Franklin") hereby agrees to Provide Mr, Mark T. Jacobson ("Borrower"), a permanent loan commitment, with a permanent Economic Development Bond under the terms and conditions set forth herein: 1. Commitment. The following commitment letter ("Commit- ment") is made in favor of the above-named Borrower only. This Commitment is not assignable or transferrable by operation of law or otherwise,. except with the express written approval of Franklin, • which approval may be denied by Franklin for any reason whatsoever as determined by Franklin_ in the exercise of its sole and absolute discretion. 2. Fur-Pose. The purPose of the loan is to provide funds in connection with a two story office building at 32400 Telegraph Rd. Bingham Farms, Michigan. ("Project"). 3. Disbursement. The proceeds of the loan shall be disbursed at the loan closing ("Closing") at which all of the documents .required by Franklin ("Loan Documents") in connection with the loan contemplated hereby shall be executed and delivered to Franklin Provided that the Borrower has met all of the requirements for disbursement established by Franklin or by counsel 4. Principal Amount of Loan/interest Rate: The Principal amount of the loan shall be $2,000,000.00 Dollars, as evidenced by a Promissory note ("Note") in the full amount of the loan together with interest thereon as follows: tial s: LV Borrowers T Date: P.O. Box 5006 26336 Twelve Mile Road C.; Southfield, Alichian 48086 0 (313) 356-8910 Commitment- Letter Pace =Pwo of Thirteen Pages (a) At all times when Borrower is not in default, Borrower shall be charged interest, on the basis of Seventy Five Percent (75%) of Prime, thereafter the rate shall adjust auarterlv. (b) At no time throughout the natural life of the loan shall the interest rate charged exceed a rate of 12.5%. (c) During any Period(s) of default, the bonds are subject to acceleration Prior to maturity and navment at par, 5. Term: The Note shall mature thirty (30) years from the first day of the first month subseouent to the date of Closing. 6. Amortization: The Note shall be amortized over thirty (30) years, beginning with the first full calendar month after the month in which the loan is closed. (a) Call Provision: The lender has the right to call the note due at any time after the tenth (10th) year 7. Prenayment Privilege; The Bonds are subject to redemp- tion at the option of the issuer, upon the direction of the company on any interest payment due on or before December 15, 1828, in whole or in part at Par, Plus accrued interest to the date of redemption plus a 1% Prepayment penalty on the unPaid balance. After December 15, 1988, the bonds may be redeemed without penalty. 2. Special Mandatory Redemotion: The Bonds are subject to a special mandatory redemption Prior to maturity in whole at par 'anon the occurrence of a determination of taxability or the rate may be converted to a equivalent taxable rate of prime plus 1-1/2%, at the lenders option. 9. Payment: interest shall be paid on the remaining Principal balance in ouarterly installments due the fifteenth (15th) day of March, the fifteenth (15th) day of dune, the fifteenth (15th) of September, and on the fifteenth (15th) day Borrowers Initials: , 2 Date: //)/ U) 1) 131 ri 1) 11) .0 LI E-1 144 CI) 0 LI 1.» a) Ci G) UI a) .0 0:1 „1-2. U) 0 0 '21 .1.1 • r-I 1--I 41.71 ) (I) 4/4 r- .43 a.) 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Ci ,44 11-) 10 to O .0 (31 II a) t.r Ci Li (1) tt-t (1) 111 • U Gn O at 4J iJ ct ;.>-4 00) '0 ut FY: 01 131 t-4 -rt Ci 114 1.4 (1) .4-4 'T., (14 ) (I) O )4 '0 3. 41) •,-4 C3' 0 .0 (I) 44 III a) AI lu 0 LI 0 a) .,-) a) 34 • 014_I X 111 :0 '0 it) '44 0 4,4 r; > 40 '0 - u) -1 44 al ty :a 0 r0 t.TS -I-I 0 tf) *-1 ir1 Cl 1-4 4.4 .ri 0) 10 tn '0 t•r-i 1--t 4-1 • 01 >0 0 Ilt1 .0)00104 1) trl °(-1 • 4-1 01 0 44 • 4.) 44 I-I 0 hr 1-1 -44 0 :1 3-I • .1J (1) .0 1-4 0) 13 0) Ul 0 ,C • 1:14 0 M 1110 04.4 • 04 Cl Ca 114 • 114 0 .14.0 Ci O 44 :•.).1 >1 0 01 4.1 .0 [-; 41 41 II 00) ro 441 0i a) ti it 4-1 1: 04 t :;= (3 i c4: la 04 0 0 t")-1 C=. 0 ti) 1. 1 1:11 P Commitment Letter Pace Four of Thirteen Pages (c) A first and prior collateral assignment of the rents, issues and profits of the mortgaged Property condi- tioned upon default in any terms or conditions of the loan ("the Profits"). Such assignment shall include all leases which may be consummated after the Closing and at any time during the term of the loan, as well as those which are in existence at the time of Closing. (The Real Estate, Personalty and Profits shall be collectively referred to as the "Mortgaged Property"). (d) The personal GuarantyS of Mark T. Jacobson in the amount of $350,000 guaranteeing: (i) the due and Punctual payment of, as well as the collectibility of, all monthly installments when due under the Note and (ii) if required by Franklin, the clue and punctual performance of all of Borrower's obligations under the Loan Documents. The Association may in its sole discretion release the personal guarantee if appropriate levels and quality of leasing is reached. 12. Financna Statements: Where apProbriate, the necessary Uniform Commercial Code Financing Statements shall be filed with the apPropriate county and/or state offices, and the Borrower, together with Franklin shall execute financing statements and any continuation statements for and on behalf of Borrower. 13. Loan Acreement: If deemed necessary by Franklin and its counsel as determined in the exercise of their sole and absolute discretion, a -1Loan Agreement shall be executed at the Closing by Franklin and the Borrower, which shall include provisions cbverning the obligations and duties of the Borrower during the term of the loan. In the event that a Loan Agreement is reauired, all of its terms and conditions shall be incorpor- ated herein by reference and shall control where inconsistent with this Commitment. 14. Other Documents: Borrower shall execute such additional documentation as may be deemed necessary by Franklin and Franklin's counsel as determined in the exercise of their . sole and absolute discretion. All documents shall be in form and substance satisfactory to Franklin and its counsel. 15. -Reguirements Prior to Closing: Except as otherwise provided herein, or agreed by Franklin and/or its counsel, not less than twenty (20) business days PRIOR TO CLOSING, 3o ,-rower shall Provide Franklin and/or its counsel with the following: Borrowers Initials: Date: ' //(' Borrowers -Initials: Commitment Page Five of Thir - n Pages (a) Title. Satisfactory evidence that the condition of the title to the mortgaged premises is good and market- able, and free and clear of all defects, liens, encumbrances, security interests, restrictions and easements which are not acceptable to Franklin, as determined in the exercise of its sole and absolute discretion, (b) Title Insurance: In connection with (a) above, Borrower shall provide Franklin with a commitment to issue an ALTA mortgagee's policy of title insurance with extended coverage (i.e., without the so-called "standard exceptions") (together with copies of all documents . affecting title), in form satisfactory to Franklin, in an amount not less than the loan amount, insuring that Franklin's loan is a first lien on the mortgaged premises, subject only to a title excep- tions acceptable to Franklin. A preliminary commitment of title insurance shall be furnished to Franklin by a Title Insurance Company acceptable to Franklin, which commitment shall be updated to the date of Closing. The Commitment shall further certify permanent access to the Real Estate. In addition, the commitment shall contain such endorsements as may reauire including, but not limited to, usury, zoning, contiouitv, access encroachment or comprehensive endorsements. (c) Survey: Franklin shall arrange at the Borrower's expense a survey of the Real Estate Prepared by a surveyor licensed in the State of Michigan or in the state in which the Real Estate is located, together with a certificate executed by such surveyor indicating that the survey has been prepared in accordance with the minimum standard detail reauirements for Michigan Land Title Surveys as adopted by the Michigan Society of Land Surveyors and the Michigan Land Title Association or a similar certificate satisfactory to Franklin for use in the state in which the Real Estate is located. The certificate shall also state the Real Estate does not 1 4 e within any flood hazard areas in accordance with the document entitled "Department of Housing and Urban Development, Federal Insurance Administration Special Flood Hazard Area Maus" (or Borrower shall be reauired to provide appropriate flood insurance.1 Such survey shall show the abutting real estate, public highways and roadways, all easements affecting the subject Real Estate, the location of all building setback lines, side and rear yard restrictions, with no encroach- ment by an improvement constructed on the Real Estate or any adjoining Property. The survey shall also show Permanent access to the Real Estate either through the use of a Borrowers Tn 4 ti ,=-./s: - Commitment Page Six of Thirteen Paces long-term ingress-egress easement. The form and content of the survey shall in all respects be satisfactory to Franklin. In all cases, the survey shall be acceptable to the title insurance company and shall satisfy its survey requirements for the issuance of a final title policy without survey exceptions. (d) .Appraisal: Franklin shall arrange, at the Borrower's expense an MAI appraisal prepared in conformity with abblicable Federal Home Loan Bank Board regulations to be abproved by the Association's Loan Committee and certified to Franklin. (e) Leoal Capacity: The Borrower shall provide Franklin with evidence satisfactory to Franklin signing on the Borrower's behalf have, the legal capacity and authority to execute the loan documents, (f) Insurance: The originals, or certified copies, of insurance .polir.ies issued by insurance companies acceptable to Franklin and in form acceptable to Franklin shall be delivered to Franklin PRIOR TO CLOSING, together with receipts evidencing payment of first year's premiums. One such Policy shall provide fire and extended coverage and shall also insure against the hazards of vandalism in an amount equal to the full replacement value of the -Mortgaged Property. General Public liability and property damage insurance shall be required in minimum amounts of $500,000 per occurrence For bodily injury and 100,000 Per occurrence for property damage unless a larger amount is recuired by Franklin, as determined in the exercise of its sole and absolute discretion. Loss of Reqtal income insurance for a two (2) year period shell be reauired in an amount of the lesser of $300,00 per year (net of co-insurance) or the maximum insurable amount. Franklin will agree to use insurance proceeds to rebuild anytime if loan is not in default and property value is not otherwise diminished. Additional coverage may be required from time to time by Franklin, including but not limited to, boiler explosion insurance. The Borrower will also be required to review the coverage annually with its insurance specialist and to increase the amount of said coverage as may be necessary to satisfy at all times Franklin's requirements. Where appropriate ! the Borrower shall furnish Franklin with builder's risk insurance and workmen's compensation insurance. The Borrower shall Date: Commitment D=c- s ,=.ve-n of ",'Ilrt='n Pages provide flood hazard insurance Prior to Closing if such insurance is required by the regulations of the Federal Some Loan Bank Board. All required insurance coveraoe shall Provide that Franklin shell be given thirty (30) days written notice of cancellation. Further, all such Policies shall contain A rider which shall Protect Franklin as an additional named insured. (g) Taxes and Assessments: Borrower shall Provide Franklin with satisfactory evidence that all installments of general real estate taxes, special taxes or assessments, service charges, water and sewer charges, private maintenance charges, and any other Prior levied charges, then due and Payable, have been paid in full as of the closing date, or the date of any subsequent disbursement as the case may be (h) Zoning and ApPlibable Permits: Prior, to Closing, the Borrower shall furnish to Franklin Satisfactory evidence that the real estate is Properly zoned for its intended use, as evidenced by a final certificate of occupancy. Additional evidence satisfactory to Franklin shall be furnished confirming that all improvements and their use comply fully with applicable zoning, building and all other governmental laws, rules, regula- tions, and requirements. (i) Opinion of Borrower's Counsel: The Loan and the Closing thereof shall in all respects be lawful and not yiolate any applicable law or other requirement of any go -Vernmental authoritv. With respect to any Borrower which is a corporation, trust or Partnership, the Borrower shall submit to Franklin PRIOR TO CLOSING a current wr.;i-+.en opinion of the Borrower's legal counsel, satisfactory to Franklin, to the effect that Borrower has good and marketable Fee title to the Real Estate; Borrower is a corporation or partnership duly existing under the law of the State in which it was created; Borrower has full and complete authority to execute the Loan Documents; the loan is not usurious or otherwise illegal under applicable law; the Loan Documents are valid and binding upon the Borrower; all Loan Documents are enforceable in accordance with their terms and that the intended use of the Mort ,aaged "Proel-ty is in compliance with all existing zoning laws. With respect to any other Borrower's, such opinion shall be submitted to Franklin if requested by Franklin. Borrowers Initials: // Borrowers Initials: Commitment Dac. Eight of Thirteen Pages _ (j) Leases/Estotipel Certificates: Borrower shall submit to Franklin, for approval, certified copies of all leases in effect at the time of Closing as well as estoppel letters signed by each tenant of the Borrower certifying that (i) the particular tenant's lease is presently in full force and effect with the expiration date of the lease set forth, (ii) no rent has been or shall be paid to the Borrower as Landlord more than sixty days in advance of the due date, (iii) there exists no charce, lien or claim of offset against rents or other charges due or to become due, and (iv) and there is no default by Borrower as Landlord under such lease'. In addition, each tenant shall agree, not to amend, modify, or supplement any of the terms of its lease, or terminate same without notifying Franklin in writing 30 days Prior to doing So, and provide Franklin with written notice of any default by Landlord under the Lease. Borrower shall remain obligated to Provide Franklin with such estoppel letters from all new tenants of the Project during the term of the _loan within thirty (30) days after a particular lease is executed. Failure to do so shall be an event default. (k) Additional Documentation. Borrower shall provide, Franklin with such additional documentation at their reasonable discretion, including but not limited to, tax bills, construction contract, building permits, trade payment breakdown and certifi- cates of occupancy as Franklin and/or its counsel requires as determined in their sole and absolute discretion, Prior to disbursing the loan proceeds. (1) Costs and Fees: All costs of Processing and closing the loan shall be borne by the Borrower. These costs include, but are not necessarily limited to, premiums for a mortgagee's policy of title insurance, appraisal fees, inspection fees, fees of Franklin's counsel (not to exceed $5,000.00 unless occasioned by acts or omissions of borrower), surveyor's fee, and recording fees. The Borrower shall pay all such expenses upon recuest of Franklin whether or not the loan is closed, and such expenses are due and owing in addition to the commitment fees of Franklin. (m) Reouired Financial Statements: Borrower and all Guarantors shall provide Franklin with financial information as recuested by Franklin. The information Provided on the Borrower's, and/or Guarantor's financial statements shall rep- resent the asset and liability position of no other persons or entities. Financial statements of the Borrowers/ Guarantors must also contain complete and accurate information on any contincent Dat Borrowers Initials: Commitment Page Nine of Thirteen Pages - - _liability not reflected in their net worth calculation. The financial Position represented on the financial statement of the Borrower/Guarantor must not change in materially adverse way prior to, or subsequent to, the issuance of this Commitment by Franklin. During the term of the loan, Borrower shall furn i sh Franklin within 120 days after each fiscal year end of the Borrower, a balance sheet and a statement of income and expense for the immediately preceding fiscal year for the Project. In addition, all Guarantors shall submit annual financial statement to Franklin by January 30 of each year of the loan. The Borrower and all Guarantors shall also be required to furnish any addi- tional financial information reasonably requested by Franklin. 1 6, Franklin's Counsel: All matters, including form and content of the Loan Documents, shall be acceptable to and approved by Franklin's counsel. Franklin's counsel will prepare and review all Loan Documents and handle all legal matters arising from or in connection with the loan. 17. Mortgage Provisions and Negative Covenants of Borrower: The Mortgage and Loan Documents shall contain, in addition to other Provisions, the following special provisions: (a) The Borrower may not, without the prior written consent of Franklin, create or Permit to exist, any mortgage, lien or other encumbrance on the Mortgaged Property. In the event the Mortgaged Property is further encumbered without such consent, same shall be an event of default and the entire balance of the Note and all other sums owing to Franklin shall be immediately due and Payable, at the option of Franklin. (b) If Borrower, without Franklin's prior written consent, should sell, convey, further encumber or otherwise transfer title to the Mortgaged Property, or any interest therein (whether voluntarily or by operation of law) same shall be an event of default and the entire balance of the Note and all other sums owing to Franklin hereunder shall be immediately due and payable, at the option of Franklin.. (c) If Borrower should, without Franklin's Prior written consent, sell, convey, assign, grant a security interest in or otherwise transfer any ownership interest in Borrower, same shall be an event of default. Borr owe r s Initials: Date: Commitment P a ge Ten of Thirteen Paces _ (d) Borrower shall not, without the Prior written consent of Franklin which shall not be unreasonably with- held, make any capital improvements during any twelve month period on the mortgaged property which cost in excess of 10% of the face amount of the Note, other than capital improve- ments specifically contemplated by the terms of the Loan Documents. (e), Borrower shall not, without the exoress written consent of Franklin, pay or declare any dividends to shareholders of the Borrower, if the Borrower is a corpora- tion, or make any distribution to Partners of the Borrower, if the Borrower is a Partnershin, while Borrower is in de=nit under the terms of any of the Loan Documents. (f) The Loan Documents shall cive Franklin the power of sale of the Real Estate to satisfy Borrower's indebted- ness upon default. (g) The Borrower shall be recuired to pay to Franklin each month a sum equivalent to one-twelfth of the annual insurance premiums and the annual installments of any assessments and taxes levied against the mortgaged property as estimated by Franklin; which amount shall be deposited in non-interest bearing accounts. It is understood and agreed that the PurPose of provisions (a) through (h) above, is to Protect Franklin's security, keeP the Mortgaged ProPerty free from subordinate financing liens, and/or allow Franklin to raise the interest rate and collect assumotion fees. The Loan Documents shall contain provisions which more specifically define the events of default and the rights and remedies available to Franklin upon default. 18, Notice and Opportunity to Cure: Notwithstanding anvthing contained herein to the contrary, the Loan Documents shall provide that the Association shall notify Borrower of the event of any default and permit Borrower- 15 days from the date i / Date: Commitment Dace Eleven of Thirteen Pages o -F- any monetary default to cure same and 30 days from the date any non-mcnetary default to cure same. The notice and curative provisions set forth herein prohibit Franklin from exercising its acceleration rights during the curative Periods. Bowever Franklin will not be prohibited from charging the default rate of interest together with such other charges and assessments Properly charged to Borrower during any period of default. 19. Financing Sign: Franklin shall have the right to place a financing sign on the mortgaged property in form and substance determined solely by Franklin and to publish articles to the general public concerning the financing of the mortgaged property. 20. Cancellation of Commitment: Franklin reserves the right to cancel this commitment and terminate its obligations hereunder at any time, upon the happening of any of the following events: (a) The Borrower's failure to comply with any of the apPlicable conditions of its loan application or this Commitment within the time specified; (b) Non-Payment when due of any of the fees or expenses to be borne by the Borrower in connection with its loan application and this Commitment; (c) The existence or occurrence of (i) any infirmity in the Borrower's _title to the Mortgaged Property, which can not be cured or insured against prior to closing, (ii) filing by or against the Borrower of any petition in bankruptcy, or for the reorganization of the Borrower, (iii) the appointment of a receiver or trustee over the Borrower or any of the Mortgaged Property, (iv) the making by the Borrower of any assignment for the benefit of creditors or (v) the insolvency of the Borrower; (d) Any adverse change occurring subseguent to the date of Borrower's loan application or this Commitment deemed by Franklin to be material or substantial with regard to the credit standing or other financial condition of the Borrower or of any Guarantor or of any other Person obli- gated to Franklin with regard to this commitment; or Borrowers Initials: 3.0 0 11 0 lit 1 U) 1-1 (-r H• Pt Ut Ill ( 0, )-•"4 0 10 (4 In 0 (1) N- O ti rr 0 hi • N cr ID SO ID 1-, 1.-r 4-9 O In Pt 0. 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ID N lit ID Commitment Thirteen of Thirteen Paces _ 24. Commitment Fee: The Commitment for the Loan is Seventeen Thousand Five Thousand Dollars ($20,000.00). If prior to closing legislative chances eliminate the Economic DeVelopm Bonds, the commitment fee will be refunded net of the costs uncured by the Association. 25. Additional Conditions: This Commitment is issued subject to the following additional conditions: (a-) The loan amount shall not at any time exceed 75% loan to value as indicated in an appraisal to be performed on behalf of Franklin, in conformity to Federal Regulation R-4 1 B, (b) Franklin Savings shall escrow $250,000 of the loan proceeds in an account bearing interest at 1% less than the note rate until 36 months or more has elapsed and leases satisfactory to lender are presented indicating debt service capacity of at least $268 1 343.00 after an operating expenses. 25. Excitation: Please indicate your acceptance of the terms of this commitment by signing the original and one copy of this commitment in the space provided below, initialing and ' dating all attached paces and exhibits and returning the same to Franklin. This commitment shall expire if not returned to Franklin by December. 3l 1985 and closed sixty (60) days there- aFter. Please remit the appropriate commitment fee when return- ing this document. FRANKLIN SAVINGS AND LOAN ASSOCIATION Accepted by Borrower this day of , 1985. SEE ACCEPTANCE ATTACHED HERETO AND. MADE A PART HEREOF. Mark T. Jacobson January 16, 1986 Mr. Read P. Dunn, President Franklin Savings and Loan Association . 26336 Twelve Mile Road Southfield, Michigan 48076 Re: Commitment, Dated December 23, 1985, issued By Franklin Savings For Purchase Of $2,000;000.00 Oakland County EDO Limited Obligation Revenue Bonds Mark T. Jacobson Project Dear Mr. Dunn: The undersigned "Borrower" is :Pleased to accept the above-referenced commitment ("Commtment -i') subject to Franklin Savings and Loan Association's ("Franklin") approval of the following: 1. Paragraph a, Principal Amount of Loan, Page 2. Paragraph 4(c) would be revised to read as follows: "(c) During any period(s) of material default, the bonds are subject to acceleration prior to maturi- ty and payment at par." 2. Pa .ragra ,,h 11, Security, P ao-. A. (a) The term "sole" in the seventh line of Paragraph 11(d) is hereby deleted and the word "reasonable" is hereby substituted in its place. Mr. Read Dunn January 16, 19S6 Pace 2 (h) The following sentence is hereby added to P=ra- graoh 11(d) The amount of the aforesaid Guarantys shall be reduced by a sum egual to any principal reduction in the outstanding principal amount of the bonds. Paragraph 1 5, Reguirements Prior to Closing, Page 4. The phrase "sole and absolute" in the fifth and sixth lines of Paragraph 15(a) is hereby deleted and the term reasonable" is hereby substituted in its place. Parag-raph 1 5, Page 7. The provisions of Paragraph 15(a) are hereby deleted and the following is substituted in their place "Prior to Closing, the. Borrower shall furnish to Franklin satisfactory evidence that the real estate is properly zoned for its intended use. Additional evidence satisfactory to Franklin shall be furnished confirming that all improvements and their use comply fully with applicable zoning, building and all other governmental laws, rules, regulations and requirements, which evidence may be in the form of a temporary or final Certificate of Occupancy for the building con- structed on the Mortgaged Property." 5. Paragraph 15, Page 7. The parenthetical phrase "(subject to principals of eguity and applicable bankruptcy law)" shall be inserted after the word "enforceable" contained in the fourth to last line of Paragraph 15(a). 6. Paragraph 15, Page 2. The last sentence of Paragraph 15(1) is hereby deleted and the following is substituted in its Place: Mr. Read Dunn January 15 , .14_0 Page 3 "The Borrower shall pay all such expenses upon request of Franklin whether the loan is closed (unless the loan fails to close as consequence of Franklin's default) and such expenses are due and owing in addition to the Commitment fees of Franklin..." 7. Paragraph 1 7, Mortgage Provisions, Paae The following sentence is hereby added to Paragraph 17(b): "however, Franklin will not unreasonably withhold or delay its consent to a transfer of sale of the Mortaaged ?,--opety if the transferee or purchaser, as the case may be, has creditworthiness and management experience reasonably eauivalent, as determined by Franklin, to that of the Borrower." 8_ P7'-'7"CrlYr1 17, "Paa ,=. 9. The following sentence shall be added to Paragraph 17(c): "However, Borrower shall have the right to transfer, (i) the entire Mortgaged Property to a trust estab- lished solely for the benefit of Borrower, and (ii) any portion of the Mortgaged Property to directly related family members so long as Borrower remains a Guarantor (if the Guarantys are still in effect) and retains an Interest in the Mortgaged Property." S. Paragraph 17, Page 10. The provisions of Paragraph 17(g) are hereby deleted and the following is substituted in their place: "The Borrower shall be required to pay to Franklin on a quarter-annual basis a sum eauivalent to one-fourth of the annual insurance premiums and annual installments of any assessments and taxes levied against the Mortgaged Property as estimated by Franklin, which amount shall be deposited in non-interest bearing accounts." 1-3 fi • (D U) 1,_3' fp 1) 11) '0 O 0„ 3— r-Is O 0 1-'• 1--, (0 (f) (D In 0 0' ID ui is I- (--'s rt- (D 't.) (I) rs-f ft Di • '0• (I) fr) 0. (Is rl- fD ;-» 0, I-5 tq 0• (D Ci 311 !Al 1-1 (1) 1,-,1 -(-) 0) (.3 0 (Is Ii ets 0 0 Ci ti ») )g 1-0 ri 511 7 / t(1 IN hzi On) n) H. Pi H i'd ,-d !-k) r.:: H Ill u) d• H. = 0, f» H gi 0 3-- I-1) In H ;3' (1) isu I-1 3,-.5 0-' p3 iss".-: 0" 3-4 0 p) 11 ',D .' Isi 0 H ft Di H ID cf II 0 H. (0 31 0 3-, 0 0 H(..,-,4 fp H 0- 0 0 r 0 (1) (U 10 il (0) 1.1)4 (i) I a, ft) .,0 . 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