Loading...
HomeMy WebLinkAboutResolutions - 1981.04.01 - 13931April 2, 1981 81 1 17 MISCELLANEOUS RESOLUTION NO. RE: RESOLUTION APPROVING PROJECT PLAN WBT ASSOCIATES OFFICE BUILDING COMPLEX 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 for the WBT Associates Office Building Complex Project, a copy of which is attached hereto as Exhibit A (the "Project Plan"); and WHEREAS, on March 2, 1981, the Township Board of the Township of West Bloomfield, Michigan, approved the Project Plan; and WHEREAS, on March 19, 1981, this Board of Commissioners held a public hearing to consider whether the Project Plan con- stitutes a public purpose as outlined by Act 338, Michigan Public Acts 1974, as amended (the "Act"). NOW, THEREFORE, BE IT RESOLVED by this Board of Commissioners of Oakland County as follows: 1. The Project Plan, as described in Exhibit A attached hereto, be, and is hereby, determined to constitute a public purpose as outlined 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 Secretary of the Board of the Corporation. The Public Services Committee, by James Edward Lanni, Chairman, moves for adoption of the foregoing resolution. / =, j ry/ THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND PROJECT PLAN (W.B.T. Associates Office Building Complex Project) APPLICANT: W.B.T. Associates, a Michigan limited partnership CONTACT: Arnold Nikon 220 West Congress Detroit, Michigan 48226 (313) 963-2515 PROJECT: Construction of four 13,430 sq. ft. one-story office buildings LOCATION: Township of West Bloomfield, Oakland County, Michigan PROJECT AREA Exhibit "A" PROJECT EMPLOYMENT: TOTAL COST: BONDS: COST OF COMPLETION: It is anticipated that during construction approximately 100 people will be involved in the design, engineering, management and building of the project. Upon completion of construction it is anticipated that 175 to 225 permanent employees will be employed at the facility. $3,500,000 $2,600,000 The cost of the project not being financed by the bonds will be financed through owner's equity. Should the cost of the project exceed present estimates, W.B.T. Associates will pay any further costs of completion. This project plan was prepared in accordance with the Economic Development Corporations Act, P.A. 338 of Michigan Public Acts of 1974, as amended. Attached is the requisite information based on Section 8(4) of the Act. V , (A) THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER PUBLIC FACILITIES WITHIN THE DEVELOPMENT AREA AND SHALL DESIGNATE THE LOCATION, CHARACTER, AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRIVATE LAND USES THEN EXISTING AND PROPOSED FOR THE PROJECT AREA, INCLUDING RESIDENTIAL, REC- REATIONAL, COMMERCIAL, INDUSTRIAL, EDUCATIONAL, AND OTHER USES AND SHALL INCLUDE A LEGAL DESCRIPTION OF THE PROJECT AREA The project area consists of approximately 4.72 acres of property located at 7001 Orchard Lake Road in the Township of West Bloomfield, Oakland County, Michigan. Maps showing the location and extent of existing streets and facilities within the development area are attached as Exhibit B. The project area is essentially vacant land with two unoccupied residential dwellings which will be razed. W.B.T. Associates has purchased the property and plans to build four 13,430 sq. ft. one-story office build- ings on said property. It is anticipated that most of the office space will be leased to accountants, attorneys, manufacturer's representatives and other small service-oriented businesses. A legal description of the project area is attached as Exhibit A. (B) A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE PROJECT AREA TO BE DEMOLISHED, REPAIRED, OR ALTERED, A DESCRIPTION OF REPAIRS AND ALTERATIONS, AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION. There are two existing unoccupied residences in the project area which will be demolished. The demolition will take approximately one week to complete. (C) THE LOCATION, EXTENT, CHARACTER, AND ESTI- MATED COST OF THE IMPROVEMENTS, INCLUDING REHABILITATION CONTEMPLATED FOR THE PROJECT AREA AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION. The property upon which the improvements are to be constructed is located on the east side of Orchard Lake Road approximately 1/4 mile north of Northwestern Highway, in the Township of West Bloomfield, Michigan. The improvements planned for the project area include four one-story office buildings of 13,430 sq. ft. each for a total of about 53,720 sq. ft. The parking area will cover about 32% of the project area and the remaining area around the improvements and parking area will be land- 2- Land $ 489,000 scaping. The estimated useful, life of the buildings is 50 years. The estimated costs of the project are as follows: Buildings (Purchase or Construction) 1,703,000 Site Work (Land prep.; utilities; landscaping) 509,000 Engineering fees 50,000 7.egal fees 25,000 Financing fees and costs 145,000 Other costs (soil borings, insurance, appraisals, etc.) 129,000 Developer's & General Contractor's Fees 200,000 Contingencies 250,000 Total Project Cost $3,500,000 It is expected that construction will take ap- proximately 6 months and is anticipated to be completed by December 1, 1981. The location of the project area is set forth in the legal description provided on Exhibit A; the location of the improv'ements anticipated for the project area are indi- cated on attached Exhibit B. (D) A STATEMENT OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE. It is estimated that construction of all four office buildings will be completed in one stage with comple- tion expected about 6 months from the start of construction. (E) A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE. A IN P ATI The four office buildings will occupy 26% and the parking area will cover 32% of the project area. The re- maining space will be landscaping. See the site plan of the project area in attached Exhibit B. (F) A DESCRIPTION OF PORTIONS OF THE PROJECT AREA WHICH THE CORPORATION DESIRES TO SELL, DONATE, EXCHANGE OR LEASE TO OR FROM THE MUNICIPALITY AND THE PROPOSED TERMS. Does not apply. (G) A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREETS, STREET LEVELS, INTERSECTIONS AND UTILI- TIES. The present zoning of the project area property permits the type of commercial activity planned for the completed facility. Sitework for the project area will include excava- tion for underground utility service (electrical, gas, sanitary sewer, water, storm sewer, excavation for building, clearing and grubbing for building slabs and paved areas). Orchard Lake Road which bounds the project area on the west is presently being widened from 2 to 4 lanes. (H) A STATEMENT OF THE PROPOSED METHOD OF FINANC- ; THE PROJECT AND THE ABILITY OF THE CORPORATION TO AR- GE THE FINANCING. The project will be financed in part through the issuance by The Economic Development Corporation of the County of Oakland (the "EDC") of its limited obligation economic development revenue bonds in principal amount of $2,600,000 (the "Bonds"). The term of the Bonds will be 30 years and the interest on the outstanding principal will be paid at the rate of 11.625% per annum. The Bonds are re- deemable at the option of the purchaser on a date fifteen (15) years after the due date of the first payment on the Bonds. The project will be conveyed to the EDC upon issuance of the Bonds and the EDC and W.B.T. Associates will enter into a lease purchase agreement concerning the pro- ject. The Bonds will not be a general obligation of the County of Oakland or the Township of West Bloomfield but will be secured by a mortgage lien on the project and a pledge of revenues under the aforesaid lease purchase agree- ment. The lease purchase agreement will provide for the conveyance of the project back to W.B.T. Associates when the Bonds are retired. -- The Company has rtceived a loan commitment tram rational Bank of Detroit to finance the project during construction. The Aetna Casualty and Surety Company will pur- chase the total amount of the revenue bonds issued by the EDC relative to the Project. The balance of the project cost will be funded through owner's equity. (I) 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. William E. Cranmer, general partner of W.B.T. Associates, and Arnold Mikon, Vice President of Terra Investments, Inc. will be associated with the management of the project. Mr. Cranmer and Mr. Nikon can be reached c/o: W.B.T. Associates 18280 West Ten Mile Road, Suite 121 Southfield, Michigan 48075 (J) DESIGNATION OF THE PERSONS OR PERSONS, NATU- OR CORPORATE, TO WHOM THE PROJECT IS TO BE LEASED, SOLD OR CONVEYED AND FOR WHOSE BENEFIT THE PROJECT IS BEING ' 'T)ERTAKEN IF THAT INFORMATION IS AVAILABLE TO THE CORPORA- TION. The Economic Development Corporation of the County of Oakland will enter into a lease purchase agreement pur- suant to which it will lease and grant an option to purchase the project to W.B.T. Associates. W.B.T. Associates will lease office space from the project to accountants, attorneys, manufacturers represen- tatives and other small service-oriented businesses. (K) IF THERE IS NOT AN EXPRESS OR IMPLIED AGREE- MENT BETWEEN THE CORPORATION AND PERSONS, NATURAL OR CORPOR- ATE, 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. Does not apply. (L) ESTIMATES OF THE NUMBER OF PERSONS RESIDING IN THE PROJECT AREA AND THE NUMBER OF FAMILIES AND INDIVI- DUALS TO BE DISPLACED. IF OCCUPIED RESIDENCES ARE DESIG- NATED FOR ACQUISITION AND CLEARANCE BY THE CORPORATION, A PROJECT PLAN SHALL INCLUDE A SURVEY OF THE FAMILIES :D INDIVIDUALS TO BE DISPLACED, INCLUDING THEIR INCOME L TD RACIAL COMPOSITION, A STATISTICAL DESCRIPTION OF THE HOUSI7c.; -5- SUPPLY IN THE COMMUNITY, INCLUDiNG THE NUMBER OF PRIVATE AND PUBLIC UNITS IN EXISTENCE OR UNDER CONSTRUCTION, THE CONDI- TION 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 DEMANDS FOR HOUSING IN THE COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS. Does not apply. (M) A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF PERSONS DISPLACED BY THE PROJECT IN NEW HOUS- ING IN THE PROJECT AREA. Does not apply. (N) PROVISION FOR THE COSTS OF RELOCATING PERSONS DISPLACED BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIM- BURSEMENT OR 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. Does not apply. -- (0) A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF THE PUBLIC ACTS OF 1972, BEING SECTIONS 213.321 TO 213.322 OF THE MICHIGAN COMPILED LAWS. Does not apply. (P) OTHER MATERIAL AS THE CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT. There is no other pertinent information. ; / - / t $ 4. I -1 • ; 11, 41. I•,— •,•• EXHIBIT .. -- -,-.... • ,° i!.? ..,,'11.,.•,.*A. ),i, • - 0:1.., 1- : . 1. I . • . • I ; 4 4 'E. - "1 / I t. n i; 01 • 1, • •A I. . • •.. • ti‘ • . 4 1 s•-)d .) • • , - • -II • '• •° • • 11)•.k...) Y.\ • ' 'X I t • • I.) le\ ' 1141 Te 16 44, 141 raq r.• : 6 es' „. • • I ' I- , I r; 1 . ..v 1 --,. „1 - .---1 r3,--- 1 i : • ....; .,,, . . , (...---y, I. 1 1 c,---L-15 u, , . I , ' __ , , - - - . ., . ...„ " ._._.„: ..., - . il, . - % ,. ,,.. . . . . i , - • ki ../..,r.,,..... 1:,---N--.) -.----. ) - 7).-ii,t. "`-'-'" 0 • ° .t..:.L..L.• ..• .-- • --• • ° . " 1- 1 • -1:1-• ' ---_-_.?':---c-T ,______, . r . , 1 . '-. ` • n•••• °it.: -.7. -•.';.:-• . ' .."- 1 • ' ;Tr .: . : . . jr-- -sl, ,—;'"I '.... . • V . % . • ; .1. •I I i.4 ...-1--. .---: ' -, - a ; 4 4 a+ 4 4.--4.• .) n ) • ".1) %.) 7) 7''.1 . ; .. 4 '''-) . t) e . ) 4 • ' 4 . . ... % 0 % ..... 44. ...4 -.., • . ., ....... , , •• .6° d 04 a .1 r 6 14.177.4 Daob OV .7. 46 6,4011, p-4,41 -a EXHIBIT B-2 ,/ • / / ,/ / / CERTIFICATION REGARDING TRANSFER OF EMPLOYMENT PURSUANT TO SECTION 8, SUBSECTION (3) The undersigned Terra Investments Inc. and William E. Cranmer, being the General Partners of W.B.T. Associates, Inc., a Michigan limited partnership (the "Company"), hereby certify to the Economic Development Corporation of the County of Oakland (the "E.D.C.") as follows: 1. They are authorized to make this certification on behalf of the Company. 2. This certification is being made for purposes of permitting the EDC to make a determination as to transfer of employment as required in Section 8, Subsection (4) of Act No. 338 of the Michigan Public Acts of 1974, as amended, (the "Act") and is being made to the best of the undersigneds' knowledge and only after thorough investigation and discussion with all partners of the Company and others who might have knowledge of such matters. 3. The Company understands that this, the EDC's certification, is a statutory requirement which if improperly made might in- validate the proceedings underway on the W.B.T. Associates Office Building Complex Project (the "Project") whereby the E.D.C. expects to ultimately issue its bonds to finance acquisition of all or part of the project. 4. As of the date of this certification, the Company has no knowledge of any lessee or potential lessee who through its use of any part of the Project would have the effect of transferring more than 20 full-time persons from a municipality (as this term is defined in the Act) of this State to West Bloomfield Township, Michigan. 5. As of the date of this certification, the Project does not have the effect of transferring employment of more than 20 full-time persons from a municipality of this State to West Bloomfield Township, Michigan. f - y 'y By: By: 6. The Company understands that during the life of any bonds to be issued in the future by the EDC to finance 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 trans- ferring, as to such lease, sublease or group of leases or subleases which are interrelated (i.e. "interrelated" means leases nego- tiated as part of one set of negotiations or leases with lessees who are related by more than 50% common ownership), more than 20 full- time persons from a municipality of this State to West Bloomfield Township, Michigan unless the Company or such lessee or sublessee has first obtained a consent to the proposed transfer from the governing body of each municipality from which employment is to be transferred. The Company further understands that an appropriately worded covenant to this effect will be included in those covenants to be made by the Company when bonds are issued for the Project. W.B .T. Associates, a Michigan limited. partnership Terra Investments, Inc., General Partner Arnold Mikon, Vice President William E. Cranmer, General Partner Dated: 71/C/leci Deputy Clerk By ... #81117 April 2, Moved by Lanni supported by Moffitt the resolution be adopted. AYES: DiGiovanni, Down, Gabler, Gosling, Hobart, Jackson, Kasper, Lanni, Moffitt, Moore, Murphy, Olsen, Page, Perinoff, Pernick, Peterson, Price, Whitlock, Wilcox, Aaron, Caddell, Cagney. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) 1, 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 #81117 adopted by the Oakland County Board of Commissioners at their meeting held on April 2, 1981 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 2nd April 11 81