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HomeMy WebLinkAboutResolutions - 1985.06.27 - 11171June 27, 1985 2630E MISCELLANEOUS RESOLUTION NO. 852o4 RE: ECONOMIC DEVELOPMENT GROUP RESOLUTION APPROVING PROJECT PLAN (THE CORNERS SHOPPING CENTER 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 Corners Shopping Center 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 obtained; and WHEREAS, on June 11 , 1985, the governing body of Southfield Township, Oakland County, Michigan, also approved the Project Plan; and WHEREAS, on „Tiane 27 1985. this Board of Commissioners held a public hearing to consider whether the None. (0) Doyon, Law, Price, (3) None. Project Plan constitutes a public purpose as contemplated by the Act: and WHEREAS, this Board of Commissioners, foliowincf such public hearing and its review of the Project Plan, concurs 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. PUBLIC SERVICES COMMITTEE VE THE,OPIEG ,,r'ING RESOLUTION YEAS: Members: Lanni, McConnell, McDonald, McPherson, Moffitt, Moore, Nelson, Olsen, Page, Perinoff, Pernick, Rewold, Skarritt, Webb, WIcox, Aaron, Caddell, Cal --'-- " - z _ (24) NAYS: Members: ABSENT: Members: ABSTENTIONS: Members: RESOLUTION DECLARED ADOPTED: Lynn D. Allen County 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 27th d ay o f June 1985, 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 amended. Lynn D. Allen County Clerk Dated: June 27, 1985 Exhibit A THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County, Michigan MICHAEL AND MARY LOUISE LAURENCELLE Project "The Corners Shopping Center Project" PROJECT FLAN 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 "B" - Bond Purchaser's Commitment Letter "C" - Company Certificate Regarding "Prevailing Wages" - Company Certificate Regarding Transfer of Employment Other M-315E PROJECT PLAN SUMMARY DESCRIPTION OF MICHAEL AND MARY LOUISE LAURENCELLE PROJECT "The Corners Shopping Center Project" OWNER OF PROJECT: by the entireties c/o Laurencelle & Associates, Inc. 17400 W. 13 Mile Road, Birmingham, MI 48009 CONTACT PERSON: (Name, address, telephone number) Michael Laurencelle 17400 W. 13 Mile Road Birmingham, MI 48009 (313) 258-6200 LOCATION OF PROJECT: (Local municipality) Southfield Township, Michigan PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Acquisition of 8.07 acres of land and construction of a retail shopping center of 106,115 sq. ft. EMPLOYMENT CREATED OR RETAINED: 300 -350 permanent jobs TOTAL PROJECT COST: 56,300,000 (approx,) BONDS TO BE ISSUED: $6,300,000 BOND PURCHASER: The Ohio Company (supported by a collateralized letter of credit issued by Transohio Savings Bank) DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT: Commitment Date: May 6, 1985 Expiration Date: August 1, 1985 Michael Laurencelle and Mary Louise Laurencelle, tena7t -2 •nn•n By: 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 MICHIGAN 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. MICHAEL and MARY LOUISE LAURENCELLE Dated: May 9, 1985 -3 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING MICHAEL and MARY LOUISE LAURENCELLE PROJECT "The Corners Shopping Center 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 PROJECT AREA: There are no existing streets or other public facilities within the pro- ject district area. The project district area is bounded by Southfield Road on the west, W. 13 Mile Road on the south and private property on the east and north. Prior to commencement of the project (acquisition of 8.07 acres of land and the construction of a 106,115 sq.ft. retail shopping center), the pro- ject area was vacant land. At present, the project area is completely cover ed by tbe 106,115 sq. ft. retail center and the adjacent parking landscaping. andscaping. Legal description of Project Area attached as Exhibit A. II. 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: Not applicable. 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: The project involved the acquisition of 8.07 acres of land in the north- east corner of Southfield Road and Thirteen Mile Road in Southfield Town- ship. Construction of the project commenced in the fall of 1983 and the shell of the building was completed by the spring of 1984. Tenant finish work commenced in the spring of 1984 and is expected to be completed by September of 1985. The estimated costs of the project are: Land $ 784,499 Site Work 726,831 Architectural & Engineering 200,914 Building Construction & Tenant Finish 3,465,810 Construction Period Interest & Taxes 487,450 Issuance Costs 335,120 Leasing Commission & Org. Costs 187,410 Contingencies 111,966 Total $6,300,000 IV. A DESCRIPTION OF THE CONSTRUCTION OR STAa 7S 07 CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION CF EACH STAGE: The construction of the project has continued in one continuous construction phase commencing in 1983. Construction of the shell commenced in the fall of 1983 and was completed in the sprin of 1984. Tenant finish work began in the spring of 1984 and will be completed in September of 1985. V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: All of the project area will be covered by the shopping center, required parking and landscaping. 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. - 5 - VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES: The project area was zoned B-2 (a permissible zoning for a shopping center) pursuant to a Consent Judgment entered in the Oakland County Circuit Court on December 14, 1982 (Acacia Park Cemetery Association and Michael Laurencelle vs. Southfield Township, Case No, 61-2')/94-c The only required changes in streets or street levels were the construction of "flare" lanes on both Southfield Rd. and W. 13 Mile Road. VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S COMMITMENT LETTER: The Ohio Company, as Underwriter, intends to purchase $6,300,000 of EDC bonds for this project and to market the bonds to the public. This public offering will be supported by the availability of a collateral-backed letter of credit issued by Transohio Savings Bank. Copy of bond purchaser's commitment letter attached as Exhibit B. 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. - 6 - X. A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN: Michael Laurencelle 17400 W. 13 Mile Road Birmingham, Mi 48009 (313) 258-6200 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: The project has been leased to the entities set forth on the attached Exhibit E. 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 PROCEDURES FOR BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECT UPON ITS COMPLETION: See Item XI above. 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 - 7 - HOUSING 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 tie 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 RELOCATION OF PERSONS DISPLACED BY THE PROJECT 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 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. - 8 - XVI. A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF TEE MICHIGAN PUBLIC ACTS OF 1972, WHICH PERTAINS TO Paavi7ING FINANCIAL ASSISTANCE, ADVISORY SERVICES AND P.7 7.MBURSEMENT 07 CERTAIN EXPENSES TO DISPLACED PERSONS: Not applicable. XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT: Not applicable. EXHIBIT A - LEGAL DE S CRIPTION Land in the Township of Southfield, Oakland County, Michian, to wit; Part of the Southwest 1/4 of Section 1, Town 1 North, Range 10 East, Southfield Township, Oakland County, Michigan, being more particularly described as commencing at the Southwest corner of said section; thence due North 60.00 feet along the West line of Section 1, thence due East 60.00 feet to a point of beginning; thence due North 440.00 feet; thence South 89 degrees 55 minutes 24 seconds East 440.00 feet; thence due South 100.00 feet; thence South 89 degrees 55 minutes 24 seconds East 615.00 feet; thence due south 340.00 feet; thence North 89 degrees 55 minutes 24 seconds West 1055.00 feet to the point of beginning, except the East 150 feet thereof. EXH IB IT MemOef New York Stock Excnange 255 East Brown Street Suite 100 Birn-vrl;tam Michlgar, 48011 313/642-1800 May 6, 1 985 Mr. Michael Laurencelle Laurencelle & Associates, Inc. 1700W. 13 Mile Road Birmingham, Michigan 43009 RE: $6,300,000 The Economic Development Corporation of the County of Oakland Economic Development Revenue Bonds (The Corners Project) Dear Mr. Laurencelle: This is to advise you that The Ohio Company intends to purchase the above referenced Bonds which are to be issued by the Economic Development Corporation of the County of Oakland. The net proceeds from this financing are to be used to acquire and construct a shopping center which is located in Southfield Township. It is understood that we will receive at the time of closing the unqualified legal opinion of Axe & Schwartz, as to the tax exemption on the Bond issue and a collateralized letter of credit form Transohio Savings Bank, as to the timely payment of principal and interest on the Bonds. Our commitment shall be further subject to continuing completion, amendment and negotiation of the terms of the issue. In accordance with the foregoing, The Ohio Company will be willing to execute appropriate legal documents to consummate this financing following the final agreement of the terms and conditions among involved parties. Charles E. Ch ndler, Ill Vice President CEC/gab By: Exhibit C COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES (MICHAEL & MARY LOUISE Project) LAuRiLi,TOLLLE "The Corners ShopeinQ' Center Project" The undersigned, Michael Laurencelle (the "Company"), hereby certifies to The Economic veveiopment 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 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 invalida te the proceedings regarding the Michael and Mar Louise Laurencelle 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. 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. MICHAEL and MARY LOUISE LAURENCELLE Dated: May 9 , 1985 M-346E Exhibit D COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT (MICHAEL & MARY LOUISE Project) LACRENMELLE "The Corners Shopping Center Project" The undersigned, Michael Laurencelle (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 ;nacouracy, might invalida/e the proceedings regarding the jilichaei and Mary Louise Laurenceile 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 municip,olittiy .(As that term is defined in the Act) of this State to outfield fownsnip , Michigan, the municipality in which the Project will be located. 5. The Company agrees that during the life of the bonds proposed to be issued by the EDC to finance the costs of the Project for the Company, the Company 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 persons from a municipality of this State to Southfield Township • Michigan unless the Company or such lessee or sublessee 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. M-283E EXHIBIT E - LIST OF TENANTS Tenants Honeybaked Ham Bulkfood Warehouse Border's Book Store Martin Alpert Four Seasons The Bootery T. J. Maxx Herman's Sporting Goods Linens and More John Kent Men's Wear Frames and Framing Vacant South Face Chatillon Chocolatier A. L. Price Vacant East Face Exit Corridor West Meter Room East Meter Room Area 106,115 SF 4,135 2,663 9,900 1,290 1,240 2,315 25,165 10,340 5,765 5,404 1,248 1,411 1,461 24,867 7,407 982 266 256 7 of Total 1(7n 7, J 3.90% 2.51% ci 9.33% 1.22% 1.17% 2.18% 23.71% 9.74% 5.43% 5.09% 1.18% 1.33% 1.38% 23.43% 6.98% 0.93% 0.25% 0.24% 6. 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. MICHAEL and MARY LOUISE LAURENCELLE Dated: May 9, 1985