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HomeMy WebLinkAboutResolutions - 1985.09.26 - 11244September 26, 1985 3146E MISCELLANEOUS RESOLUTION NO. 85278 RE: ECONOMIC DEVELOPMENT GROUP RESOLUTION APPROVING PROJECT PLAN (COMPREHENSIVE RETIREMENT COMMUNITIES LIMITED PARTNERSHIP 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 Comprehensive Retirement Communities Limited Partnership 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 , 1985, the governing body of the Township of West Bloomfield, Oakland County, Michigan, also approved the Project Plan; and WHEREAS, on September 26 1985, this Board of M Commissioners held a public hearing to consider whether the Project Plan constitutes a public purpose as contemplated by the Act; and WHEREAS, this Board 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: 1. 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 HEREBY APPROVE THE FORMOING RESOLUTION James Edward Lanni Chairman YEAS: Members: Wilcox, Aaron, Caddell, Calandro, Doyon, Fortino, Gosling, Hassberger, Hobart, R. Kuhn, S. Kuhn, Lanni, Law, McConnell, McDonald, McPherson, Moffitt, Moore, Nelson, Olsen, Page, Perinoff, Pernirk, Prirp, Rewold, CkArritt, Wehb (27) NAYS: Members: None. (0) ABSENT: Members: None. (0) ABSTENTIONS: Members: None. (0) -2 RESOLUTION DECLARED ADOPTED: Lynn/p4._allen Coulty 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 26th day of 3phtpmher • 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. Dated: September 26. , 1985 Exhibit A THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County. Michigan Comurehensive Retirement Comrpc,:.ini d Partnership 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 - Project Area Legal Description Bond Purchaser's Commitment Letter "C" - Company Certificate Regarding "Prevailing Wages" - Company Certificate Regarding Transfer of Employment Ot her PROJECT PLAN SUMMARY DESCRIPTION OF Comprehensive Retirement Communities Limited Partnership Project OWNER OF PROJECT: Comprehensive Retirement Communities Limited Partnership CONTACT PERSON: (Name, address, telephone number) Rex G. Lanyi (313) 626-3500 4900 Fairway Ridge South West Bloomfield, MT 48033 LOCATION OF PROJECT: (Local municipality) West Bloomfield Township PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Nursing Home and Home For The Aged EMPLOYMENT CREATED OR RETAINED: 121 full -time positions TOTAL PROJECT COST: 57,760,013.00 BONDS TO BE ISSUED: $7,119,000.00 BOND PURCHASER: Van Kampen Merritt Inc. 2 Penn Center Plaza, Suite 1600 Philadelphia, PA 19102 DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT: Issue Date of July 24, 1985 Expiration Date of 1-)a2mber 31, 1985 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. Comprehensive 154-tirement Comm.Lmtd.P Rex G. lanyifor i.room.Glens Mgm.Cc Its: General Manager Dated: July 25, 1985 L., By: - 3 - PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING Comprehensive Retirement Communities Limited Partnership 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: The Project will be located west of Farmin gton Road between 14 Mile Road and Maple Road. The area is characterized by private residential subdivisions to the west, east and south, and by private commercial buildings to the north, ho part of the Project property will be devoted to public purposes. The Project is comprised of the acquisition of land and construction thereon Of a long-term care and supportive living facility containing 120 nursing home beds and 112 intermediate care beds. 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: NONE REQUIRED 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 I above and IV below. ESTIMATED TOTAL COSTS OF DEVELOPM7NT WILL BE $7,550,000. THE ESTIMATED TIME REQUIRED FOR COMPLETION WILL BE FIFTEEN MONTHS. - 4 - IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: 1) Construction Permit & Mobilization... October 15, 1985 to 10/30/85 2) Site Preparation 10/30/85 to 11/14/35 3) Foundation 11/15/85 to 12/30/85 4) Masonry (Exterior) & Precast Floor 1/1/86 to 3/31/86 5) Concrete Slabs on Ground ...... 4/1/86 to 5/14/86 6) Roof System ........... 5/15/86 to 6/30/86 7) Enclose Building (windows, etc.) 7/1/86 to 7/15/86 8) Interior Finish 7/15/86 to 1/31/87 V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: OPEN SPACE WILL BE CONFINED TO LAWN AREA 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: No zoning change is necessary. However, a Special Use Permit is required. We weregiven a Special Use Permit in 1983 for the Project, and are in the process of having it updated for 1985. VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S COMMITMENT LETTER: The E.D.C. bond will be purchased by Van Kempen Merritt, Inc. (see attached commitment letter). In addition, FHA mortgage insurance will be obtained as a credit enhancement tool. 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- 7 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: Rex G. Lanyi Herman Frankel Linda Powers 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: Bloomfield Glens Nursing Home, Inc. (same persons as those listed above will be shareholders of the corporation), a Michigan corporation, which will he the operator of the entire facility. The Project will be leased to operator by the owner, Comprehensive Retirement Communities Limited Partnership. 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 XI X/II. 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 8 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 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 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. XVI. 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. XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT: Not applicable. *AA ,s,4‘ M CrZi, \Cs. SIç 0 4 co 1 EUGENE *: LX D SURY0 F. Z-Ex 1.4 A E1 92D9 Lo, .1'441,m14.010 OR EY CB•0 BY OATE 05--16.-85 f i LEGAL DESCRIPTION PART OF THE EAST HALF OF THE NORTHEAST QUARTER OF SECTION 33, TOWN 2 NORTH, RANGE 9 EAST, WEST BLOOMFIELD TOWNSHIP, OAKLAND COUNTY, MICHIGAN DESCRIBED AS BEGINNING AT A POINT IN THE EAST LINE OF SECTION 33 ALSO BEING THE CENTERLINE OF FARMINGTON ROAD, N. 00 DEC. 04 MIN. 30 SEC. W. 122.92 FEET FROM THE EAST CORNER OF SECTION 33; THENCE S. 89 DEC. 39 .MIN. 48 SEC. W. 67.47 FEET; THENCE N. 00 DEC. 04 MIN. 30 SEC. W. 642.98 FEET; THENCE N. 89 DEG, 39 MIN. 46 SEC. E. 677.47 FEET TO SAID EAST LINE OF SECTION 33; THENCE ALONG SAID LINE S. 00 DEC. 04 MIN. 30 SEC. E. 642.98 FEET TO THE POINT OF BEGINNING, CONTAINING 10.00 ACRES GROSS AND 9.11 ACRES TO THE PROPOSED 60 FT. RIGHT OF WAY LINE OF FARMINGTON ROAD. NOTES: PROPERTY SIZE AND RESULTING DESCRIPTION AS PER MEETING WITH MR. HERMAN FRANKEL ON APRIL 1-1985. D.P.W. SANITARY SEWER 13 MILE ARM CROSSES FARMINGTON RD. 1965' NORTH OF S.E. CORNER SECTION 33 INV. 900.15 STORM WATER OUTLET IS TO PEBBLE CREEK CERTIFICATION TO: WE HEREBY CERTIFY that we have surveyed the parcel of land described and delineated hereon; that said plan is a true representation of a survey preformed by us and that there are no encroachments other than as shown hereon; that said survey was performed with an error of closure no greater than 1 in 5000. EUGENE F. ZEIMET R.L.S. 9209 (\,1 sir r REVISIONS ITEM I DATE BY BLOOMFIELD GLEN, HEALTH OEN . WEST BLOOMFIELD TWP MICHIGAN BOUNDARY SURV 1-1017 vr.1 FIELD ilsewas CIVIL ENGINEERS a LANE) SURVEYORS 29200 SOUTHFIELD ROAD, SUITE 2O5 SOUTHFIELD, MICHIGAN 4807,6 f3I3) 339 -7944 J01 JOI s.-or ZEIMET- WOZNIAK et ASSOC, INC C))\ A XEROX Financial Services Company July 24, 1985 Mr. Rex G. Lanyl Comprehensive Retirement Communities Limited Partnership 4900 Fairway Ridge South West Bloomfield, Michigan 48033 RE: The Economic Development Corporation of Oakland County - Bond Issue for Bloomfield Glens Project Dear Mr. Lanyi: This letter is in response to our discussions concerning the proposed FHA-insured, tax-exempt bond issue for the long-term care and supportive living unit project that your company plans to develop in West Bloomfield, Michigan. Van Kampen Merritt Inc. would be pleased to act as the underwriter for such a bond issue, based upon the terms set forth in this letter. It is our understanding from information supplied to us that: 1. The project to be financed (the "Project") consists of the purchase of certain land in West Bloomfield, Michigan, the construction thereon of a long-term care and supportive living facility containing 120 nursing homes beds and 112 intermediate care beds. 2. You expect to receive a commitment for FHA mortgage insurance for the Project under Section 232 of the National Housing Act and the applicable HUD regulations. 3. The total cost of constructing, equipping and financing the Project, as set forth in the draft of the FHA insurance application that you provided to us, is presently estimated to be $7,581,779. 4. The Project will be financed through the issuance of long-term (30 to 40 years), tax-exempt industrial revenue bonds (the "Bonds") by The Economic Development Corporation of Oakland County (the "Issuer"), and an inducement resolution for such bonds has already been obtained from the Issuer. Van Kampen Merritt is prepared and will be pleased to serve F'enn Center Plaza, Suite 1600, Philadelphia, Pennsylvania 19102 Pennsylvania • New York • Caiirovnia • Texas • tioricla • illinnis as the investment banker for the Project, and as the investment banker purchase the Bonds, subject to the fulfillment of the following conditions: 1. The receipt of a firm commitment from HUD for the FHA mortgage insurance. 2. The execution of bond documents, in form satisfactory to Van Kampen Merritt, by the Issuer and the entity that will own the Project. 3. The receipt of an approving opinion of bond counsel satisfactory to Van Kampen Merritt attesting to the legality and tax-exempt status of the Bonds. 4. Security provisions satisfactory to Van Kampen Merritt which result in a rating from Standard & Poor's of an investment grade of no less than "A". The interest rate on the Bonds will be determined at the time that Van Kampen Merritt purchases the Bonds, based upon market conditions at that time. Our fee for our services will be as set forth in our letter to you of April 30, 1935. We trust that this letter is responsive to your needs and is appropriate for use in obtaining the required approvals from the Issuer. We would be pleased to provide you with any additional information that you may require. Sincerely, 4'1 .6.1• Gerard W. Farrell Vice President National Health Care Finance Division GWF:kmd . I Ley\ RODGERS AND MORGENSTEIN Ai TvRNEYS AT LAW 211 HUNTERS SQUARE 31555 WEST FOURTEEN MILE ROAD FARMINGTON HIL c. MICHIGAN 48018 TELEPHONE A.D. (313) S55-5050 HORACE J. RODGERS HENRY B. MoRcENsTEtN July 24, 1985 Mr. Mark Habel Director of Programs Department of Housing and Urban Development 477 Michigan Avenue Detroit, Michigan 48226 FHA Project No. 044-43044 Bloomfield Glens Health Center. aik/a Comprehensive Retirement Communities West Bloomfield, Michigan Dear Mr. Rebel: The Sponsors of the above project have been requested by the Economic Development Corporation of the County of Oakland /which will issue Tax Exempt Bonds for the permanent financing of the project, to secure a report from your Office regarding the status of the Application For Conditional Commitment. Please address your letter, using the above caption, to: Mr. Jeffrey A. Kaczmarek Assistant Secretary, Board of Directors The Economic Development Corporation of the County of Oakland Executive Office Building 1200 North Telegraph Road Pontiac, Michigan 48053 RE: would appreciate receiving a carbon copy of you reply. you for your cooperation in this matter. Very truly yours, RODCR5 AND tIORGENSTEIN Henry)S.<- M6'rgerTS-I6-i- HBM:fp CC Mr. Rex Lanyi Thank Comm rehea MiChigan im 4 t-r1 Ehifl a Exhibit C COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES Comprehensive Retirement Communities Limited Partnership Project The undersigned, Comprehensive Retirement Communities , a Michigan Limitpr9 P27-tnR-rq"hip (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 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 Comprehensive Retirement Communities Limited Partnership 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. Rex G. Lanyi for Bloomfield Glens Mar-g9.7.2ComDanv By: ---7-! j -• / . Its: General Partner Dated: July 25, 1985 N-3465 Exhibit D COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT Comprehensive Retirement Communities Limited Partnership Project The undersigned, Comprehensive Retirement Communitie s a Michigan Limited Partnership (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 Comprehensive Retirement Communities Limited Part nership 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 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 West 1=lric)rifir,1(9 , 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 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. Comprehensive Retirement Communities a Michigan Limited Partnership // (7 </-/ Rex G. Lanyi Tor/loom.Glens Mg Its: General Manager Dated: Julv 25 1985 By: Exhibit A THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County, Michigan Comprehensive Retirement Communitie Limird Partnership 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 "B" - Bond Purchaser's Commitment Letter "C" - Company Certificate Regarding "Prevailing Wages" "D" - Company Certificate Regarding Transfer of Employment Other PROJECT PLAN SUMMARY DESCRIPTION OF Comprehensive Retirement Communities Limited . . Partnership Project OWNER OF PROJECT: Comprehensive Retirement Communities Limited Partnership CONTACT PERSON: (Name, address, telephone number) Rex G. Lanyi (313) 626°3500 4900 Fairway Ridge South West Bloomfield, MI 48033 LOCATION OF PROJECT: (Local municipality) West Bloomfield Township PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Nursing Home and Home For The Aged EMPLOYMENT CREATED OR RETAINED: 121 full -time positions TOTAL PROJECT COST: $7,760,013.00 BONDS TO BE ISSUED: $7,119,000.00 BOND PURCHASER: Van Kampen Merritt Inc. 2 Penn Center Plaza, Suite 1600 Philadelphia, PA 19102 DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT: Issue Date of July 24, 1985 Expiration Date of Da ,]2mber 31, 1985 - 2 - 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. Comprehensive 4.tiremelyt Comm.Lmtd.Part Rex G. Lanyi,'for 4,1oom.Glens Mgm„Cc Its: General Manager Dated: July 25, 1985 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING Comprehensive Retirement Communities Limite d Partnership 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: The Project will be located west of Farmington Road between 14 Mile Road and Maple Road. The area is characterized by private residential subdivisions to the west, east and south, and by private commercial buildings to the north. Ho part of the Project property will be devoted to public purposes. The Project is comprised of the acuisition of land and construction thereon of a long-term care and supportive livinc facility containing 126 nursing home beds ana 112 intermeaiate card bcdE-, 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: NONE REQUIRED 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 I above and IV below. ESTIMATED TOTAL COSTS OF DEVELOPMENT WILL BE $7,550,000. THE ESTIMATED TIME REQUIRED FOR COMPLETION WILL BE FIFTEEN MONTHS. IV. A DESCRIPTION OF THE CONSTRUCT ION OR STAGES OF CONSTRUCT ION PLANNED. AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: 1) Construction Permit & October 15, 1985 to 10/30/85 2) Site Preparation .............. ... .. 3) Foundation 4) Masonry (Exterior) & Precast Floor 5) Concrete Slabs on Ground 6) Roof System 7) Enclose Building (windows, etc ) V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: OPEN SPACE WILL BE CONFINED TO LAWN AREA 10/30/85 to 11/14/85 11/15/85 to 12/0/35 1/1/86 to 3/31/36 4/1/86 to 5/14/86 5/15/86 to 6/30/86 7/1/86 to 7/15/86 8) Interior Finish ..... ......... ......... 7/15/86 to 1/31/87 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: No zoning change is necessary. However, a Special Use Permit is required. We were given a Special Use Permit in 1983 for the Project, and are in the process of having it updated for 1985. VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S COMMITMENT LETTER: The E.D.C. bond will be purchased byVan Kempen Merritt, Inc. (see attached commitment letter). In addition, FHA mortgage insurance will be obtained as a credit enhancement tool. 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 I (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN: Rex G. Lanyi Herman Frankel Linda Powers 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: Bloomfield Glens Nursing Home, Inc. (same persons as those listed above will be shareholders of the corporation), a Michigan corporation, which will be the operator of the entire facility. The Project will be lea5e(2: to .L:ne operator by the owner, Comprehensive Retirement Communities Limited Partnership. 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 CR CONVEYING OF THE PROJECT UPON ITS COMPLETION: SEE XI 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 CF 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 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 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. XVI. 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. XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT: Not applicable. JA LEGAL DESCRIPTION 904- at qa t W,CH, EUGENE alvEI * IMO $4,Pre == 9209 /fr tp 4aar“ EUGENE F. ZEIMET R.L.S. 9209 BLOOMFIELD GLEN HEALTH CEN WEST BLOOMFIELD TWP MICHIGAN BOUNDARY SURVEY PAUL 3 ZEIMET-WOZNIAK et ASSOC., INC CIVIL ENGINEERS a LAND SURVEYORS 29200 SCXJTHFIELD ROAD, SUITE 205 SOUTHFIELD, MICHIGAN 48076 (313) 559 7944 = a A PART OF THE EAST HALF OF THE NORTHEAST QUARTER OF SECTION 33, TOWN 2 NORTH, RANGE 9 EAST, WEST BLOOMFIELD TOWNSHIP, OAKLAND COUNTY, MICHIGAN DESCRIBED AS BEGINNING AT A POINT IN THE EAST LINE OF SECTION 33 ALSO BEING THE CENTERLINE OF FARMINGTON ROAD, N. 00 DEC. 04 MIN, 30 SEC. W. 122.92 FEET FROM THE EAST k CORNER OF SECTION 33; THENCE S. 89 DEG- 39 .MIN. 48 SEC. W. 677.47 FEET; THENCE N. 00 DEC. 04 MIN. 30 SEC. W. 642.98 FEET; THENCE N. 89 DEC. 39 MIN, 48 SEC. E. 677.47 FEET TO SAID EAST LINE OF SECTION 33; THENCE ALONG SAID LINE S. 00 DEC. 04 MIN. 30 SEC. E. 642.98 FEET TO THE POINT OF BEGINNING, CONTAINING 10.00 ACRES CROSS AND 9.11 ACRES TO THE PROPOSED 60 FT. RIGHT OF WAY LINE OF FARMINGTON ROAD. NOTES: • PROPERTY SIZE AND RESULTING DESCRIPTION AS PER MEETING WITH MR. HERMAN FRANKEL ON APRIL 1-1985. D.P.W. SANITARY SEWER 13 MILE ARM CROSSES FARMINGTON RD. 1965 ° NORTH OF S.E. CORNER SECTION 33 INV. 900.15 STORM WATER OUTLET IS TO PEBBLE CREEK CERTIFICATION TO: WE HEREBY CERTIFY that we have surveyed the parcel of land described and delineated hereon; that said plan is a true representation of a survey preformed by us and that there are no encroachments other than as shown hereon; that said survey was performed with an error of closure no greater than 1 in 5000, CO\ A XEROX Filivartclat Services Company July 24, 1985 Mr. Rex G. Lanyi Comprehensive Retirement Communities Limited Partnership 4900 Fairway Ridge South West Bloomfield, Michigan 48033 RE: The Economic Development Corporation of Oakland County - Bond Issue for Bloomfield Glens Project Dear Mr. Lanyi: This letter is in response to our discussions concerning the proposed FHA-insured, tax-exempt bond issue for the long-term care and supportive living unit project that your company plans to develop in West Bloomfield, Michigan. Van Kampen Merritt Inc. would be pleased to act as the underwriter for such a bond issue, based upon the terms set forth in this letter. It is our understanding from information supplied to us that: 1. The project to be financed (the "Project") consists of the purchase of certain land in West Bloomfield, Michigan, the construction thereon of a long-term care and supportive living facility containing 120 nursing homes beds and 112 intermediate care beds. 2. You expect to receive a commitment for FHA mortgage insurance for the Project under Section 232 of the National Housing Act and the applicable HUD regulations. 3. The total cost of constructing, equipping and financing the Project, as set forth in the draft of the FHA insurance application that you provided to us, is presently estimated to be $7,581,779. 4. The Project will be financed through the issuance of long-term (30 to 40 years), tax-exempt industrial revenue bonds .(the "Bonds") by The Economic Development Corporation of Oakland County (the "Issuer"), and aa inducement resolution for such bonds has already been obtained from the Issuer. Van Kampen Merritt is prepared and will be pleased to serve 2 Penn Center Plaza, Suite 1600, Philadelphia, Pennsylvania 19102 Pennwyania New York • Cagforni,k • .ncx,..vs • Florida • !Mani, as the investment banker for the Project, and as the investment banker purchase the Bonds, subject to the fulfillment of the following no 1. The receipt of a firm commitment from HUD for the FHA mortgage insurance. 2. The execution of bond documents, in form satisfactory to Van Kampen Merritt, by the Issuer and the entity that will own the Project. 3. The receipt of an approving opinion of bond counsel satisfactory to Van Kampen Merritt attesting to the legality and tax—exempt status of the Bonds. 4. Security provisions satisfactory to Van Kampen Merritt which result in a rating from Standard & Poor's of an investment grade of no less than "A". The interest rate on the Bonds will be determined at the time that Van Kampen Merritt purchases the Bonds, based upon market conditions at that time. Our fee for our services will be as set forth in our letter to you of April 30, 1985. We trust that this letter is responsive to your needs and is appropriate for use in obtaining the required approvals from the Issuer. We would be pleased to provide you with any additional information that you may require. Sincerely, ,• /- Gerard W. Farrell . Vice President National Health Care Finance Division GWF:kmd EY A ,E czp6:1- RODGERS AND MORGENSTEIN ATTORNEYS AT LAW 211 HUNTERS SQUARE 31555 WEST FOURTEEN MILE ROAD FARMINGTON HU I 5, MICHIGAN 48018 TELEPHONE AC (313) 855-5050 HORACE J. RODGERs HENRY B. MORGENSTE1N July 24, 1985 Mr. Mark Habel Director of Programs Department of Housing and Urban Development 477 Michigan Avenue Detroit, Michigan 48226 FHA Project No. 044-43044 Bloomfield Glens Health Center a/k/a Comprehensive Retirement Communitiz West Bloomfield, Michigan Dear Mr. Habel: The Sponsors of the above project have been requested by the Economic Development Corporation of the County of Oakland /which will issue Tax Exempt Bonds for the permanent financing of the project, to secure a report from your Office regarding the status of the Application For Conditional Commitment. Please address your letter, using the above caption, to: Mr. Jeffrey A. Kaczmarek Assistant Secretary, Board of Directors The Economic Development Corporation of the County of Oakland Executive Office Building 1200 North Telegraph Road Pontiac, Michigan 48053 RE: I would appreciate receiving a carbon copy of you reply. you for your cooperation in this matter. Very truly yours, RODGERS AND MORGENSTEIN - Henry ji3:---M6trgens -n--------- H9M:fp CC Mr. Rex Lanyi Thank Exhibit C COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES Comprehensive Retirement Communities Limited Partnership Project The undersigned, Comprehensive Retirement Communities a Michigan Limitpcl Ppl-tnprFhn (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 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 Comprehensive Retirement Communities Limited .Ipartnershp 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. mu-rehensi ve Retirement Comm'a ichigan Tmitpd Rex G. Lanyi for Bloomfield Glens "a"wen,-Compsny By: GPnel-P1 Partner Dated: July 25, 1985 M-346E Its: Exhibit D COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT Comprehensive Retirement Communities Limited Partnership Project The undersigned, Ccmnre'-,T=:v7 Retirement 7,:T.mu 4-Yec* a Michigan Limited Partnorshiio (the "Cs,mpany"), 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 BBC'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 Comprehensive Retirement Communities Limited Part nership 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 West Bleemfield , 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 negotiaions 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 West Blene17'1,s'7(1 . , 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 6. The Company understans 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 is s ued by the EDC for the benefit of the Project. cE1rchcP 5V5 P-ti-2m ,9rt Cr)-1'7 4-,jr-5 a Michigan Li mited P ir iu 4/ By: Rex G. Lanyi Its: Generi Dated: July 25, 1985