HomeMy WebLinkAboutResolutions - 1981.06.04 - 14832June L, 1981 81207 MISCELLANEOUS RESOLUTION NO.
RE: RESOLUTION APPROVING PROJECT PLAN
OAKWOOD BUILDERS & ASSOCIATES MANUFACTURING 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 Oakwood Builders &
Associates Manufacturing Project, a copy of which is attached
hereto as Exhibit A (the "Project Plan"); and
WHEREAS, on May 12, 1981, the governing body of the
Charter Township of Commerce, Michigan, approved the Project Plan;
and
WHEREAS, on May 21, 1981, this Board of Commissioners
held a public hearing to consider whether the Project Plan consti-
tutes 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 COMMIS-
SI --77'3 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.
PUBLIC SERVICES COMMITTEE
j-tER YA P°QV THE FOR O i NG R E.50L T'ON
/L.,/
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Dated: June 4th 1981
The following Commissioners voted in favor of the
attached resolution:
Page, Patterson, Peterson, Price, Whitlock, Wilcox, Aaron,
Caddell, Cagney, Doyon, Fortino, Gabler, Geary, Gosling,
Hobart, Jackson, Lanni„Moffi litante. moore. Olsen (l)
The following Commissioners voted against the resolu-
tion:
DiGiovanni, Murphy. (2)
The following Commissioners were absent:
Kasper, McDonald, Perinoff, Pernick. (4)
STATE OF MICHIGAN
) SS.
COUNTY OF OAKLAND
I hereby certify that the foregoing is a true and
complete copy of the minutes of a regular meeting of the Board of
Commissioners of Oakland County, Michigan held on the 4th day
of June , 1981, and that the said minutes are on file in the
office of the County Clerk and are available to the public.
Public notice of said meeting was given pursuant to and in com-
pliance with Act No. 267, Public Acts of Michigan, 1976.
LyrIn D. Allen
County Clerk
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THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
PROJECT PLAN
(Oakwood Builders and Associates Manufacturing Project)
APPLICANT:
CONTACT:
PROJECT:
Oakwood Builders and Associ-
ates, a Michigan co-partner-
ship
Robert L. Alflen
3162 Martin Road
Walled Lake, Michigan 48088
(313) 363-4540
The construction of a 77,000
sq. ft. light manufacturing
turning and warehouse facility.
LOCATION: Township of Commerce, Oakland
County, Michigan
PROJECT AREA: See Exhibit "A" annexed here-
to.
PROJECT EMPLOYMENT: It is antitipated that the
project will employ 75 workers
during construction and after
completion, it is anticipated
that approximately 100 employ-
ees will be employed at the
facility.
TOTAL COST: $1,599,000
BONDS: Not to exceed $1,500,000
COST OF COMPLETION: $900,000
This project plan was prepared in accordance with the Eco-
nomic 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.
(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, RECREATIONAL, COMMERCIAL,
INDUSTRIAL, EDUCATIONAL, AND OTHER USES AND SHALL INCLUDE A LEGAL
DESCRIPTION OF THE PROJECT AREA.
The project district area is located on the south side
of Oakley Park Road between Haggerty Highway and Welch Road in
Commerce Township. Power lines, gas lines and telephone lines are
all existing along the Oakley Park Road northerly frontage and are
existing at the present building site. All land in the project
area is land held or used for light industrial purposes.
(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 no existing improvements in the Project area
to be demolished, repaired or altered.
(C) 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 proposed improvements for the Project consist of (1)
the completion of a thirty-two thousand (32,000) square foot
industrial building presently nearing completion, hereinafter
referred to as "Stage I", (2) a proposed forty-five thousand
(45,000) square foot industrial building presently anticipated to
be completed by June of 1982,- hereinafter referred to as "Stage
II", and (3) the completion of all landscaping, paving and final
clean up of Stages I and II, presently anticipated to be completed
by Or.tober, 1982, hereinafter referred to as "Stage III". The
Project is thus currently planned in three interrelated phases.
Following is a breakdown of the presently estimated capital costs
involved:
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Land
Buildings
Equipment
Management Fee
Architecture
Engineering
Legal
Costs of Financing
Site Work
Description of
of Item
Estimated
Capital Costs ,
$ 100,000
1 1 259,500
70,000
20,000
14,000
10,000
4 1 500
7,000
115,000
VW.
Total Cost $1,599,000
(D) A STATEMENT OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE.
State I of the Project was commenced in August, 1980 and
is intended to be completed during May of 1981. State II of the
Project is intended to be commenced in October, 1981 and is
intended to be completed by June of 1982. State III of the
Project is intended to be commenced in June, 1982 and is intended
to be completed by October of 1982.
(E) A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO
BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE.
A description of the parts of the Project are to be left
as open space and the use contemplated for such space is contained
on the site plan attached hereto. As indicated thereon, ample
parking, driveways, fire lanes, loading and unloading areas and
landscaping are provided.
(F) A DESCRIPTION OF PORTIONS OF THE PROJECT AREA WHICH
THE CORPORATION DESIRES TO SELL, DONATE, EXCHANGE OR LEASE TO OR
FROM THE MUNICIPALITY THE PROPOSED TERMS.
The Corporation will not sell, donate, exchange or lease
any part of the project area to or from the city.
(6) A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES
IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES.
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The property is presently zoned M-1, light industrial
use. There is no change desired in the present zoning. No
changes in streets, street levels, intersections and'utlities will
be required from that previously approved by Commerce Township as
set forth on the attached site plan.
(H) A STATEMENT OF THE PROPOSED METHOD OF FINANCING THE
PROJECT AND THE ABILITY OF THE CORPORATION TO ARRANGE THE FINANCING.
Pontiac State Bank has agreed to purchase $1,500,000 of
revenue bonds to be issued by the Economic Development Corporation
of the County of Oakland (the "EDC") in connection with this
Project, pursuant to the commitment letter dated February 5, 1981,
as amended by letter dated February 25, 1982, a copy of which is
annexed hereto as Exhibit B.
(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.
Robert Alflen and Ernest Fuller, general partners of the
applicant, Oakwood Builders and Associates.
(J) 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 IF THAT
INFORMATION IS AVAILABLE TO THE CORPORATION.
The applicant, Oakwood Builders and Associates, will
own the Project and will lease space in the Project to various
tenants. The entire Stage I building (consisting of 32,000 sq.
ft.) has been leased to Ryken-Tube Manufacturing, Inc., .pursuant
to a lease which commenced on December 1, 1980.
(K) IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT
BETWEEN THE CORPORATION AND 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 CONVEY-
ING 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 INDIVIDUALS TO BE
DISPLACED. IF OCCUPIED RESIDENCES ARE DESIGNATED FOR ACQUISITION
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81/04-81
5
AND CLEARANCE BY THE CORPORATION, A PROJECT PLAN SHALL INCLUDE A
SURVEY OF THE FAMILIES AND INDIVIDUALS TO BE DISPLACED, INCLUDING
THEIR INCOME AND RACIAL COMPOSITION, A STATISTICAL 'DESCRIPTION OF
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-OCCU-
PIED UNITS, THE ANNUAL RATE OF TURNOVER OF THE VARIOUS TYPES OF
HOUSING AND THE RANGE OF RENTS AND SALE PRICES, AND 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.
There are no persons residing in the Project Area, no
families or individuals will be displaced and no occupied resi-
dences are designated for acquisition and clearance.
(M) A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION
OF PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT
AREA.
Does not apply.
(N) PROVISION FOR THE COSTS OF RELOCATING PERSONS
DISPLACED BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSE-
MENT OR EXPENSES, INCLUDING LITIGATION EXPENSES AND EXPENSES
INCIDENT TO THE TRANSFER OF TITLE, IN ACCORDANCE WITH THE cTAN-
DARDS 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.
The Project will not have the effect of transferring
employment of more than 20 full-time persons from a municipality
of this state to Commerce Township, Michigan the municipality
where the Project will be located.
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EXHIBIT A
Part of the N.E. 1/4 of Sec. 24, T2N, R8E, Commerce Township,
Oakland County, Michigan more particularly described as beginning at
a point distant S. 02°52'38" E. 540.0 ft. from the N. 1/4 corner of
said Sec 24 TH N.87°10'28" E. 908.0 ft., TH S 02°52'38" E. 540.0 ft.,
TH S 87°10'28" W. 908.0 ft., TH N 02°52'38" W. 540.0 ft. to point of
beginning containing 11.26 acres more or less.
Oad sod_ates
171
Exhibit B
February 25, 1981
Abbert L. Alflen & Ernest Fuller
3162 .142,,rtin Pd.
Walled Lake, Michican 48088
PE: E.D.C. Purchase Ccrmitment
Gent1c7n:
Since our last reetirq of February 12, 1981 we have reviewed
the ei;7Tht r.-ic otitlined in the Pontiac State Bank letter of
Tank to clarify and ammend their terms mnd •
Belc4 are outlined the eight categories
Fehrc7:.ry 5,
conditila
as Changed acceptecl by tha Bank and a ninth condition that has been
ad
No Change
No Chanc7e, except that to the extent that
Ionds are deE,7-ed taxable and beccue fully
and payable, the Bank Shall allow
a reasonable amount of time for developer
to negotiate conventional financing elsevihere.
25 YF,:ars (from 20 years) with a call provision
7 years flan puruhase (from 5 years) upon six
ronth advance notice from the Bank, with successive
5 year call provisions beginning 10 years from
purchase at the sole discretion of the Bonk. 0161a3M, GJANTIM Man, NON-17=XOLE
mcin-ENT FEE: CPTICNAL; 1% (if rate floats at 75% of Prime)
.75% (if rate floats at 76% of Prime) of face
amount of the Bonds. 1/2 of fee at the time of
4 acceptance of these terms and conditions,
balance at time of closing.
GUART,:k7TFE:71 .7, No
SECURITY: Remove "LAND" all else, no change.
Sincerely,
A NORTGAGB CORPORATION
,
rt E. Kennedy
e
- „ • '
REVrtIcl {.(
• CY /
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6'17
Exhibit B
FehruarY 25, 1981
Page 2
CLOSING COSTS: No change, however hank has capped the cost
of the appraisal (by inhoPose MA. I,) at Two
Thousand ($2,000.00) Dollars or actual
cost, whichever is lens. They have also
indicated that they will atteTot to use
Project Bone Counsel as Rank Counsel to
rinimize legal expenses.
BANKING
PEIATICNSHIP:
PPFTAY7,M7
PENALTY:
NO Change.
- ADDED CONDITION -
1% on unpaid balance for first five years.
The Bank's offer to purchase the Bonds will expire at the close of
business on February 27, 1981.
Exhibit B
PONTIAC STATE BANK
PONT IAC. MICHIGAN
WILLIAM J. FLURY
VICE LS IDENT
February 5, 1951
Mr. Robert Kennedy
Magna Mortoape Company
2005 Hamlin Road Box 2
Rochester, MI 480E3
Re: Oakwood Builders & Associates
EDC Bond Purchase
Dear Mr. Kennedy:
Listed below are the general terms and conditions by which Pontiac
State Bank will purchase the EDC Bonds issued by The County of
Oakland for the Oakwood Builders and Associates project. They are
by no means all inclusive but rather serve to outline the major
points we will insist upon.
AMOUNT:
RATE:
TERM:
75% of Pontiac State Bank's appraised •
value of the project. In any event the
amount of Bond purchase not to exceed
S1,500,000.00.
75% of Pontiac State Bank's prime lending
rate to be adjusted as changes in Pontiac
State Bank's prime lending rate occur from
time to time. Minimum rate to be charged
at any time during the life of the bonds
to be 10%. Note: Rate wi11 revert to
Prime plus 2% in the event that the bonds
are deemed taxable by any authority of
competent jurisdiction and in addition
shall became fully due and payable
forthwith.
20 years with successive 5 year call
provisions at the sole discretion of
Pontiac State Bank beoinning 5 years
from purchase.
NON-REFUNDABLE
COMMITMENT FEE: 1% of face amount of the Bonds at the
time of acceptance of Pontiac State Bank's
commitment to purchase the Fonds.
Exhibit B
CLOSING
COSTS:
Robert F.ennedy
Oakwood Builders r,ssaziatec
Page Two
GuARANTEES: Personal guarantees of all partner on
both a jointly and severally basis to
include, Robert Alflen, James W. Fuller,
Ernest Fuller, William Fuller and Walter
Fuller.,
SECURITY: First real estate mortgage covering the
project to include both land and bulidincs,
first security interest in fixtures,
equipment and improvements in project,
assignment of any and all leases in effect
at time of closing and assionment of any
and all future leases thereinafter
executed or acquired.
Oakwood Builders and Associates shall pay
all out of pocket costs incurred by the
Bank in connection with the project
including but not 'Omited to such items
as appraisal fees;Hmortoeoe title insurance,
recording fees, legal fees and other fees
specific, or incidental to the purchase of
the Bonds, regardless of 0-)ether the Bonds
are ultimately purchased by the Bank.
BANKING
RELATIONEHIP: The transfer and maintenance of the entire
banking relationship of Oakwood Builders
and Associates and Electrical Maintenance
Service, Inc. to the Pontiac State Bank.
As mentioned in paragraph one of this letter, the aforeentioned terms
and conditions are by no means all inclusive but limited to the major
points. If you would let me know the intention of your client, Oakwood
Builders and Associates regarding our potential purchase of the EDC
Bonds we will proceed in a timely fashion to develop our final
commitment to them. Our offer to purchase the Bands will expire on
February 18, 1981.
Sincerely,
h /
William J. Flury/
- Vice President
WJF/kbr
Y81207 June 4, 1981
Moved by Lanni supported by Jackson the resolution be adopted.
AYES: Page, Patterson, Peterson, Price, Whitlock, Wilcox, Aaron, Caddell, CF'Th7
Doyon, Fortino, Gabler,. Geary, Gosling, Hobart, Jackson, Lanni, Moffitt, Montante,
_ Olsen. (21)
NAYS: DiGiovanni, Murphy. (2)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, 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 1181207 adopted by the Oakland County Board of Commissioners
at their meeting held on June 4, 1981
with the orginial record thereof now rem3inin9 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
4th day of ) June .19 31
County Cler:s-ter of Deeds
this