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HomeMy WebLinkAboutResolutions - 1986.09.11 - 10879August 21, 1986 Miscellaneous Resolution 86255 BY: Commissioner Roy Rewold, et al IN RE: ADVANCE FOR PRELIMINARY ENGINEERING - OAKLAND TECHNOLOGY PARK ROAD IMPROVEMENTS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mt. Chairperson, Ladies and Gentlemen: WHEREAS, to ensure future quality of life, Oakland County needs to foster and facilitate quality economic development and diversification; and WHEREAS, the long term return to the residents and their governmental units outweigh the cost of providing for such development; and WHEREAS, near term cost often times exceed near term revenues for infrastructure improvements; and WHEREAS, initial road improvements for the Oakland Technology Park totaling $33 million will require preliminary engineering funding of $2,500,000; and WHEREAS, it is necessary to initiate preliminary engineering at this time to allow for 1987 construction; and WHEREAS, Federal, State and TIFA funding may not be in place until sometime in 1987; and WHEREAS, economic development in the Oakland Technology Park will approach $1.5 billion in private investment and result in generating in excess of 50,000 jobs which in turn will generate significant tax revenue. NOW THEREFORE BE IT RESOLVED Oakland County, on behalf of the Auburn Hills Oakland Technology Park Tax Increment Financing Authority, advance $2.5 million to the Oakland County Road Commission for preliminary engineering work BE IT FURTHER RESOLVED said funds bear an interest cost of seven (7%) percent per annum compounded quarterly and be repaid in twenty-four (24) months. BE IT FURTHER RESOLVED the County Executive execute a contract with Auburn Hills and the Road Commission to ensure the repayment of said funds. BE IT FURTHER RESOLVED that the Oakland County Road Commission engage the consulting engineer of Auburn Hills as the engineering firm to perform preliminary engineering and said consulting engineer shall work for and be responsible to the Oakland County Road Commission. Mr. Chairperson, I recommend the foregoing resolution. Ar pPovE FOREGOING RESO1U7 .71N FISCAL NOTE BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: ADVANCE FOR PRELIMINARY ENGINEERING - OAKLAND TECHNOLOGY PARK ROAD IMPROVEMENTS - MISCELLANEOUS RESOLUTION #86255 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution #86255 and finds: 1) Funds in the amount of $2,500,000 are available for an advance to the Oakland County Road Commission for preliminary engineering work for road improvements associated with the Oakland Technology Park, 2) Said funds will be repaid to the County by the City of Auburn Hills Tax Increment Finance Authority (T.I.F.A.) District as outlined in the attached contract, 3) The County Executive and the Board Chairperson will execute a contract with the City of Auburn Hills T.I.F.A. District lo ensure the re- payment of said funds, 4) The County shall release the funds only by invoice from the Road Commission based upon engineering work prepared as set forth in the contract. FINANCE COMMITTEE OAKLAND CCI,L;T':/A,;E3U:n N HIL1„S CONTRACT FOR ENGINEERING SERVICE An agreement made this day of , 1986, by and among the County of Oakland, a Michigan constitutional corp- oration, acting by and through its County Board of Commissioners and the Oakland County Road Commission, (hereinafter referred to as "County" and "Road Commission"), the City of Auburn Hills, a Michigan municipal corporation, located in the County of Oakland (hereinafter referred to as "City"), and the Tax Increment Finan- cing Authority of the City of Auburn Hills (hereinafter referred to as "TIFA"). WHEREAS, existing and proposed development within that part of the County of Oakland which lies within certain sections of the City of Auburn Hills are projected to place increased demands upon County roads within the City of Auburn Hills; and WHEREAS, to ensure public safety, the preservation of qual- ity of life within Oakland County, and economic development which will significantly increase the tax base of the County, it is in the interest of the public to provide comprehensive engineering documents to allow for timely road construction to meet the pro- jected demand; and WHEREAS, the County by resolution duly adopted by its Board of Commissioners, pursuant to the powers vested in it under the provisions of Act No. 253 of the Public Acts of Michigan of 1917, as amended, and Act 7 of the Extra Session of 1967, will estab- lish and finance preliminary design engineering documents for roads within the jurisdiction of the Oakland County Road Com- mission, City of Auburn Hills, all of which roads lie within the boundaries of development districts to be established by the Tax Increment Financing Authority of the City of Auburn Hills; and WHEREAS, the parties hereto desire to provide a procedure whereby the County shall be repaid for the initial financing of the engineering documents. NOW, THEREFORE, in consideration of the premises and the covenants of each, the parties hereto agree as follows: 1. The rights and obligations of the parties to this agreement shall be subject to the condition precedent that the Oakland County Board of Commissioners adopt a resolution authorizing the advance of up to $2.5 mil- lion to the Oakland County Road Commission for the specific purpose of procuring engineering documents for the road improvements described in Exhibit A, attached hereto and make a part hereof. 2. The Tax Increment Financing Authority of the City of Auburn Hills shall establish one or more tax increment financing plan and development plans for development areas within the boundaries of the property described in Exhibit A. The plans adopted by the Tax Increment Financing Authority shall incorporate the preparation of engineering documents for road improvements de- scribed in Exhibit A which lie within the boundaries of the development areas. 3. Upon the County Board of Commissioners approval of the resolution as described in Paragraph 1, the Road Com- mission shall enter into an agreement with a firm of consulting engineers in order to procure the necessary engineering documents for the road improvements de- scribed in Exhibit A. The agreement between the Road ' Commission and the consulting engineers will provide, among other things: (A) The contract shall not oblige the Road Commission or County to expend more than $2.5 million for the actual cost of the engineering document, whichever is less. 1 2 (B) The contract shall provide that it is subject to cancellation by the City of Auburn Hills in the event, the State of Michigan, on or about January 31, 1987, does not commit funds to pay for the en- gineering services which are the subject of the contract. (C) The contract shall provide that it is subject to cancellation by the City of Auburn Hills in the event the proposed construction within the Tax In- crement Financing Authority development areas are canceled or delayed. (D) The contract shall provide that the engineering . documents to be produced pursuant to the contract shall be solely for road improvements within the boundaries of the Tax Increment Financing Author- ity development areas as described in Exhibit A. (E) The contract shall provide periodic payment within number. of days of receipt by the Road Commis- sion of an invoice from the consulting engineers for engineering documents completed to date. The . Road Commission, if it finds the invoice appropri- ate, shall endorse it as approved for payment, if alternate -sources of funding have not become available, submit each invoice to the County of _ Oakland for payment. The County shall then re- lease the funds necessary to pay the invoice to the Road Commission. Copies of the endorsed in- voices and remittances shall be provided, when initially transmitted, to the City of Auburn Hills and the Tax Increment Financing Authority - of the City of-Auburn Hills. 4. Remittance of funds by the County to the Oakland County Road Commission shall create a repayment obligation for the amounts thus expended, together with interest thereon from the date of remittance. The annual rate of interest which shall accrue on the unpaid balance shall be 6.75% per annum. In theevent the repayment obligation has not been satisfied by federal, state, and/or regional grants or appropriations or by any other source whatsoever, the Tax Increment Financing Authority of the City of Auburn Hills shall satisfy the repayment obligation from revenues available to it generated from construction within the development areas described in Paragraph 2 and on Exhibit A. In satisfaction of this repayment obligation, the Tax In- crement Financing Authority shall pay not less than ten (10%) percent of the outstanding balance on or before December 31, 1989, and annually thereafter until December 31, 1996, when the entire unpaidbalance shall be satisfied. Payments made by the Tax Increment Fi- nancing Authority will be first applied to accrued in- terest outstanding. Thereafter, the Tax Increment Financing Authority shall have the right to make pre- payments on the principal balance of the repayment obligation at any time without penalty. 5. It is contemplated by the parties that the amounts ad- vanced by the County of Oakland shall be satisfied from commitments for funds by the State of Michigan to be made on or before January 31, 1987. The County, the City, and the Tax Increment Financing Authority shall use their mutual cooperation to exercise their best ef- forts to secure such funding.or, in the alternative, such other federal, state, regional or local grants, or private contributions, which may be available to them to satisfy the repayment obligation created by remit- tance of funds from the County of Oakland to the Oak- land County Road Commission. 6. Notices, All notice is required to be given pursuant to this agreement or otherwise desire to be delivered 3 by cnc party t3 th.c 07hZ:, 7hall be effective olify if the same shall be in writing and personally delivered or sent by certified mail with postage prepaid, return receipt requested, to such party at its principal gov- ernmental office. Any notice so mailed shall be deemed effective upon receipt. 7. This agreement shall be governed by the laws of the State of Michigan. 8. The parties hereto further-covenant and agree that they will each comply that their respective duties and obli- gations of the terms of this contract promptly, at the times and manner herein set forth. 9. This agreement shall become effective upon proper exec- ution by the authorized officers of the City, the Tax Increment Financing Authority, the County Executive on behalf of the County, and the Road Commission and shall be binding upon the successors and assigns of each party. This contract shall terminate upon the satis- faction of any repayment obligation created pursuant to this agreement. 10. The contract may be executed in several counterparts. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed and delivered by their respective duly authorized officers, all as of the day and year first above writ- ten. WITNESSES: COUNTY OF OAKLAND By: Chairperson - Board of Commissioners OAKLAND COUNTY ROAD COMMISSION By: CITY OF AUBURN HILLS By: TAX INCREMENT FINANCING AUTHORITY OF AUBURN HILLS By: APPRO-V,E0 AS T.SLFORM Dep,lf:tryfent of (Corporation CounSiii , /By:/L. >7 Cd: belea: /LP:It?' LC-LA/ / -s #86255 September 11, 1986 Moved by Caddell supported by Doyon the resolution (with substitute Fiscal Note attached) be adopted. AYES: Law, McConnell, McPherson, Moffitt, Nelson, Olsen, page, Perinoff, Pernick, Price, Rowland, Skarritt The Chairperson interrupted the roll call. Moved by Nelson supported by Doyon the Resolution be amended in the 1st "BE IT FURTHER RESOLVED " paragraph by deleting seven (7%) percent and inserting six and three quarters (6.75%) percent per annum, and deleting the rest of the paragraph. It would read: BE IT FURTHER RESOLVED said funds bear an interest cost of six and three quarters (6.75%) percent per annum. A sufficient majority having voted therefor, the amendment carried. Vote on resolution as amended: AYES: Law, McConnell, McPherson, Moffitt, Nelson, Olsen, Page, Perinoff, Pernick, Price, Rowland, Skarritt, Webb, Wilcox, Aaron, Caddell, Calandro, Doyon, Fortino, Gosling, Hassberger, Hobart, Richard Kuhn, Susan Kuhn, Lanni. (25) NAYS: None. (0) A sufficient majority having voted therefor, the resolution, as amended, was adopted. STATE OF MtCH1QAN1 COUNTY OF OAKLAND) Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of Miscellaneous Resolution adopted by the Oakland County Board of Commissioners at their meeting held on September 11, 1986 with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan this 11th day of _ Septemhpr 1 9 8 6 47-'11‘1,241: Lynn/D, Allen, Coal)/ Clerk Regrster of Deeds: