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MISCELLANEOUS RESOLUTION NO. 81200 11aY 2 1, 1981
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 Eonomic Development Corporation of the
County of -OAKLAND (the "EDC") has recommended that this Board of
Commissioners approve the Amended 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 May 4, 1981, the Township Board of the
Township of West Bloomfield, Michigan, approved the Project Plan;
and
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WHEREAS, on May 7, 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
COMMISSIONERS OF OAKLAND COUNTY, as follows:
1. The Project Plan, as described in Exhibit A attach-
ed 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 Cor-
poration.
The Public Services Committee, by James Edward Lanni, Chairman,
moves for adoption of the foregoing resolution.
PUBLIC SERVICES COMMITTEE
EGOING RESOLUTION
81-015-03-045 - 2
PROJECT EMPLOYMENT:
EXHIBIT A
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
AMENDED PROJECT PLAN
(W.B.T. Associates Office Building Complex Project)
APPLICANT: . W.B.T. Associates, a Michigan
limited partnership
CONTACT: Arnold Mikon
220 West Congress
Detroit, Michigan 48226
(313) 963-2515
PROJECT: Construction of four 13,340 sq.
ft. one-story office buildings
and an approximately 300 foot
storm drain to serve the
buildings
LOCATION: Township of West Bloomfield,
Oakland County, Michigan
PROJECT AREA: See Exhibit A annexed hereto
It is antitipated that during
construction approximately 100
people will be involved in the
design, engineering, management
and building of the project.
Upon completion of construc-
tion, it is anticipated that
175, to 225 permanent comployees
will be employed at the facil-
ity.
TOTAL COST: $3,500,000
BONDS: $2,600,000
COST OF COMPLETION: 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 amended 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.
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2
(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 area consists of approximately 4.72 acres of
property located at 7001 Orchard Lake Road in the Township of West
Bloomfield, Oakland County, Michigan ("Parcel 1".), plus a strip
of land 12' x 100' adjacent to the 4.72 acre parcel ("Parcel 2")
and an easement across a strip of land approximately 12' x 200'
("Parcel 3") adjacent to Parcel 2. Maps showing the location
and extent of existing streets and facilities within the develop-
ment 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 Parcel 1 and Parcel 2
and plans to build four 13,340 sq. ft. one-story office buildings
on Parcel 1 and a storm drain on Parcel 2 and Parcel 3. 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 ESTIMATED
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 landscaping. The estimated useful life
of the buildings is 50 years.
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The estimated costs of the project are as follows:
Land $ 489,000
Buildings (Purchase or Construction) 1,703,000
Site Work (Land prep.; utilities
landscaping) , .509,000
Engineering fees 50,000
Legal 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 with take approximately
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 onExhibit A; the location of the
improvements anticpated for the project area are indicated 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 buildings
will be completed in one stage with completion 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.
The four office buildings will occupy 26% and the
parking area will cover 32% of the project area. The remaining
space will be landscaping. See the site plan of the project area
in attached Exhibit B. In addition, a storm sewer will be con-
structed by W.B.T. Associates across Parcel 2 and Parcel 3 which
drain sewer will be connected into the Edwards Drain which is
approximately 300 feet north of Parcel 1. Parcel 2 has been
purchased by W.B.T. Associates and W.B.T. Associates has the right
to construct a storm sewer in an existing public easement in
Parcel 3.
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(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.
(0) A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES
IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES.
The present zoning of the project area property permits
the type of commercial activity planned for the completed facil-
ity.
Sitework For the project area will include excavation of
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 FINANCING THE
PROJECT AND THE ABILITY OF THE CORPORATION TO ARRANGE THE FINANCING.
The project will be financed in part through the issu-
ance by The Economic Development Corporation of the County of
Oakland (the "EDC") of its limited obligation economic development
revenue bonds in principal amount of 52,600,000 (the "Bonds").
The term of the Bonds will be 30 years, and the interest on the
outstanding principal will be paid at a rate of 11.625% per an-
num. The Bonds are redeemable 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 [DC and W.B.T. _Associates will enter into a
lease purchase agreement concerning the project. The Bonds will
not be a general obligation of the County of Oakland or the Town-
ship of West Bloomfield but will be secured by a mortgage lien on
the project and a pledge of revenues under the aforesaid lease
purchase agreement. The lease purchase agreement will provide for
the conveyance of the project back to W.B.T. Associates when the
Bonds are retired.
The Aetna Casualty and Surety Company will purchase the
total amount of the revenue bonds issued by the EDC relative to
the Project upon completion of construction. The balance of the
project cost will be funded through owner's equity.
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The National Bank of Detroit has agreed to provide
construction financing for the Project and will purchase the
$2,600,000 of [DC bonds and 'hold the bonds until construction is
completed.
(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.
Willima E. Cranmer, general partner of W.B.T. Associ-
ates, and Arnold Nikon, 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 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.
W.B.T.Associates.will lease office space in the Project
to accountants, attorneys, manufacturers representatives and other
small service-oriented businesses.
(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
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 rN 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
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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.
Does not apply.
(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 STAN-
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 the Township of West Bloomfield, Michigan, the
municipality where the Project will be lcoated.
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EXHIBIT A
LEGAL DESCRIPTION
Parcel 1:
Parcel 2:
Part of the Northwest 1/4 of Section 35, T.2N.,
R.9E., West Bloomfield Township, Oakland County,
Michigan, described as beginning at a point distant N.
89 ° 35' 00" E. 85.00 feet from the W.1/4 corner of
said Section 35; thence North 358.2 feet; thence N.
89 ° 35' 00" E. 575.00 feet; thence South 358.2 feet;
thence S. 89 ° 35' 00" W. 575.00 feet to the point of
beginning.
The Westerly twelve (12) feet, front and back of
Lot 101, Woodcrest North Subdivision as recorded in
Liber 111, Pages 3, 4 and 5, Oakland County Records,
Michigan.
Parcel 3: An easement across a strip of land approximately
twelve (12) feet wide by two hundred (200) feet long,
lying in the Leslee Crest Drive right-of-way, as set
forth in the plat of the Woodcrest North Subdivision
as recorded in Liber 111, Pages 3, 4 and 5, Oakland
County Records, Michigan.
Pit
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Exhibit B-2
N1/4/.Pel-a°
12 MILE R.p.
21st day of i( ) May 19 81
ALL
#81200 May 21, 1981
Moved by Lanni supported by Whitlock the resolution be adopted.
AYES: Hobart, Jackson, Kasper, Lanni, McDonald, Moffitt, Montante, Moore, Murphy,
Page, Patterson, Perinoff, Pernick, Price, Whitlock, Wilcox, Aaron, Caddell, Cagney,
Doyon, Fortino, Gabler, Geary, Gosling. (24)
NAYS: DiGiovanni. (1)
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 #81200 adopted by the Oakland County Board of Commissioners
at their meeting held on May 21, 1981
with the orginial record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
this
County Clerk/Register of Deeds