HomeMy WebLinkAboutResolutions - 1990.04.05 - 16747MISCELLANEOUS RESOLUTION NO. 90076 April 5, 1990
RE: ECONOMIC DEVELOPMENT DIVISION
RESOLUTION APPROVING PROJECT PLAN
(PONTIAC OSTEOPATHIC HOSPITAL NURSING HOME PROJECT) -
VILLAGE OF LAKE ORION
BY: PLANNING AND BUILDING COMMITTEE, LARRY CRAKE, 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
Pontiac Osteopathic Hospital Nursing Home 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 , 1990, the governing body
of , Oakland County, Michigan, also approved
the Project Plan; and
WHEREAS, on March 8 , 1990, this Board of
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:
PLANNING AND, -BUILDING COMMITTEE
viAggkery ii,.?' Wk. (Lapey Cr. ,......,.-
L-Chairman
Moved by Crdke supported by Huntoon the resolution be adopted.
1. The Project Plan, in the form attached hereto as
Exhibit A, is hereby determined to constitute a public purpose
as contemplated by the Act.
2. The Project Plan is hereby approved.
3. The EDC 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 is hereby directed to provide
four certified copies of this resolution to the Assistant
Secretary of the Board of the EDC.
The Planning and Building Committee, by Larry Crake,
Chairman, moves for adoption of the foregoing resolution.
Moved by Crake supported by Huntoon the resolution be amended by deleting
the third WHEREAS paragraph and add an additional paragraph to read:
"BLIT FURTHER RESOLVED that approval by the Board of Commissioners is
contingent upon the Village of Lake Orion approving the project plan."
A sufficient majority having voted therefor, the amendment carried.
Vote on resolution as amended:
AYES: Gosling, Huntoon, Jensen, Johnson, R..- Kuhn, S. Kuhn, Law, Luxon,
McCulloch, McPherson. Moffitt.. Daks. Papoaceorge, Pernick, Price, Rewold, Skarritt,
Wolf, Aaron;-. Bishop, Caddell,. Chester, Crake, Ferrens. (24)
NAYS: None. (0)
RESOLUTION DECLARED ADOPTED.
Lynn Q. Allen
''-tdaE7ktterk
- 2 -
STATE OF MICHIGAN)
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 5th day of April , 1990, 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
z`
Lynn1D1 :.. Allen
Cbta4y Clerk
Dated: April
(RLS —1551)
, 1990
n••., 3
EXHIBIT A
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Pontiac Osteopathic Hospital Nursing Home 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
Company Certificate Regarding "Prevailing
Wages"
- Company Certificate Regarding Transfer of
Employment
Other
(RLS -1496)
PROJECT PLAN
SUMMARY DESCRIPTION OF
PONT/AC OSTEOPATHIC HOSPITAL NURSING HOME PROJECT
OWNER OF PROJECT:
Pontiac Osteopathic Hospital ("POH")
CONTACT PERSON: (Name, address, telephone number)
Richard J. Haener, Director of Finance, Pontiac Osteopathic Hospital
50 North Perry Street, Pontiac, MI 48058
(313) 338-5352 LOCATION OF PROJECT: (Local municipality)
Village of Laic! Orion
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT:
Acquisition of existing skilled nursing home facility
EMPLOYMENT CREATED OR RETAINED:
Approximately 106
TOTAL PROJECT COST:
Approximately $4.4 million
BONDS TO BE ISSUED:
Not to exceed ,$6,000,000, tax-exempt Revenue Bonds of The Economic
Development CoPigration of the County of Oakland, Michigan (the "Bonds").
BOND PURCHASER:
Underwritten by Van Kampen Merritt
DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT:
Bond purchase to be executed
a 3
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.
PONTIAC_ OSTEOPATHIC HOSPITAL
By:
Jack H. Whitlow
Its: Executive Director
Dated:
•
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
PONTIAC OSTEOPATHIC NURSING HOME 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
Project District Area. The use, existing and proposed, for the Project -
Area is a commercial nursing home owned and operated by POH.
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:
No existing improvements are to be demolished. The roof is to be
repaired.
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 paved parking lot is to be expanded to accommodate approximately
twenty-five (25) additional automobiles. It is estimated that the parking
lot improvements will be completed prior to August 31, 1990 at an estimated
cost of approximately $100,000.
IV, A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
There is no conetruction planned, The existing skilled nursing home
facility ham been acquired by POR for a purchase price of approximately
$4 million. Other acquisition Project costs (excluding parking lot expansion)
total approximately $300.000. Current projections estimate cost of issuance
of the Bonds at approximately $315.000 and a debt service reserve fund of
approximately $500,000.
V, A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO
BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
There are no parts of the Project Area to be left se open space
. except peripheral 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
MUNIC/PALITY AND THE PROPOSED TERMS!
Not applicable.
VI/. A DESCRIPTION OF DESIRED ZONING CHANGES AND
CHANGES IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
Norte.
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF
FINANCING THE -PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE
BOND PURCHASER'S COMMITMENT LETTER:
The Bonds will be sold through a public offering. The Economic
Development Corporation will loan the bond proceeds to POE for financing or
refinancing Project costs and costs of issuance of the Bonds and to fund a
debt service reserve fund.
It is expected that POH's obligation to repay the loan will be a
nonrecourse obligation as to POE, secured by a first mortgage on and a
security interest in the tangible property of the Project (subject to
permitted encumbrances), a security interest in accounts receivable,
contract rights and general intangibles of the Project and a debt service
reserve fund. If necessary for marketing the Bonds, POE may in addition
incur a recourse obligation to repay the loan.
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
a ':`
X. 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:
It is anticipated that the Project will be managed by Donald W. Sharrard,
Administrator, Lake Orion Nursing Center, for a period not less than one year from
the date of approval of the Project Plan. For significant financial matters,
Richard J. Haener, Director of Finance of FOR, will be associated with the
management of the Project. Additionally, there will be an advisory board
associated with the management of the Project, consisting of: Mr. Sharrard; Mr.
Haener; Jack H. Whitlow, Executive Director of POE; Sharon F. Rapp, Esq.; Joseph
Territo, DO.; Edward Derbabian, a trustee of POE; and Shelly Austin,
Administrator, Oxford Health Center.
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 is being undertaken for the benefit of POH, the owner of the
Project.
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:
Not applicable.
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 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.
EXHIBIT A — PROJECT AREA LEGAL DESCRIPTION
Land situated in the Village of Lake Orion, County of Oakland, State of
Michigan, described as:
PARCEL 1:
The North 5 acres of Lot 19, "ASSESSOR'S PLAT NO. 1", a subdivision of the
West 1/2 of the Southwest 1/4 of Section 1, Town 4 North, Range 10 East,
Village of Lake Orion, Oakland County, Michigan, according to the plat
thereof as recorded in Liber 53 of Plats, Page 52, Oakland County Records.
PARCEL 2:
Lot 28, "ASSESSOR'S PLAT NO. 1", a subdivision of part of the West 1/2 of
the Southwest 1/4 of Section 1, Town 4 North, Range 10 East, Village of Lake
Orion, Oakland County, Michigan according to the plat thereof as recorded in
Liber 53 of Plats, Page 52, Oakland County Records, except: Beginning at
the Southwest corner, thence North 00 degrees 36 minutes 00 seconds East,
336.65 feet; thence South 80 degrees 09 minutes 00 seconds East, 60.79 feet;
thence South 00 degrees 36 minutes 00 seconds West, 335.50 feet; thence
North 79 degrees 51 minutes 00 seconds West, 60.99 feet to the point of
beginning.
PARCEL 3:
Lot 19, "ASSESSOR'S PLAT NO. 1", a subdivision of part of the West 1/2 of
the Southwest 1/4 of Section 1, Town 4 North, Range 10 East, Village of Lake
Orion, Oakland County, Michigan according to the plat thereof as recorded in
Liber 53 of Plats, Page 52, Oakland County Records, except the North 5
acres, also except: Beginning at the Southeast corner of Lot 18, thence
North 02 degrees 19 minutes 40 seconds East, 592.48 feet; thence South 88
degrees 08 minutes 40 seconds East, 100 feet; thence South 02 degrees 20
minutes 00 seconds West, 589.90 feet; thence South 89 degrees 37 minutes 20
seconds West, 100 feet to the point of beginning. Also except: Beginning
at the Southeast corner of Lot 17, thence North 02 degrees 24 minutes 00
seconds East, 32.58 feet; thence North 89 degrees 37 minutes 20 seconds
East, 29.45 feet; thence South 02 degrees 21 minutes 00 seconds West, 37.93
feet; thence North 79 degrees 16 minutes 00 seconds West, 29.75 feet to the
point of beginning. Also except: Beginning at the Northwest corner of Lot
20, thence Easterly along lot line, 365.80 feet; thence North 61 feet;
thence Westerly along Southerly lot line of Lot 18 and as extending Easterly
to point distant North 89 degrees 37 minutes 20 seconds East, 29.45 feet
from the Southwest corner of Lot 18; South 02 degrees 21 minutes 00 seconds
West, 60.06 feet to the point of beginning.
PARCEL 4:
Lot 25, "MILLER—SCHORN ORION SUBDIVISION", of part of the West 1/2 of the
East 1/2 of the Southwest 1/4 of Section 1, Town 4 North, Range 10 East,
Orion Township, Oakland County, Michigan according to the plat thereof as
recorded in Liber 36 of Plats, Page 29, Oakland County Records.
D6945J
Van Kampen Merritt
A XEROX Financial Bervloos Company
2 Penn Center Plaza, Suite 1600
Philadelphia, Pennsylvania 19102
215 972-0555
1.4 FA a
V id I
Febri.4ary 9, 1990
Mr. Richard i. Haener
Director of Finance
Pontiac Osteopathic Hospital
50 North Perry Street
Pontiac, Michigan 48053
RE: The Economic Development Corporation of the County
of Oakland - Pontiac Osteopathic Hospital - Lake Orion
Nursing Home Project
Dear Rick:
Van Karnpen Merritt is pleased to assist POH once again in providing investment
banking services, In conjunction with the above referenced Project, VKIVI is pleased
to offer provide you with its commitment to underwrite a tax.exempt bond issue
not to exceed $6 million to refinance the acquisition of the Project. Our willingness
to enter into a bond purchase contract in conjunction with the underwriting of
these bonds is subject to the following terms and conditions:
1. Approval of the transaction by the Economic Development Corporation
of the County of Oakland, Michigan;
2. The receipt of an opinion from Dykema Gossett as bond counsel, that the
obligations are validly authorized and issued and the interest on such
obligations is exempt from federal, state and local taxes.
3. Receipt of a financial feasibility Study from Deloitte and Touche which
demonstrates the ability of the project to adequately cover debt service
in accordance with market conditions.
4. Completion of all other due diligence and submission of additional e information as may be required by VKM,
it is expected that POI-I's obligation to repay the loan will be a non recourse
obligation as to POH, secured by a first mortgage bond and a security interest in the
tangible property of the Project (subject to permitted encumbrances) and a security
interest in the accounts receivable, contract rights and general intangibles of the
Project, If necessary for the marketing of the bonds, P01-1 may, in addition, incur a
recourse obligation to repay the loan.
Illinois/PenneyEvanla/Now York/Callfornia/Texas/Florlda/Geola/Washington
lelecoplur ruzi z- V ,LVPM 1
Mr. Richard J. Haener
February 9, 1990
Page 2
This commitment will remain in effect through April 30th 1 1990. We look forward
to a successful closing of this transaction.
Sincerely,
Herbert .1, Horo
First Vice President
Capital Markets Group
cc: Robert L. Schwartz, Esq,
Gerald M. Griffith, Esq.
HIN:ffijr
Exhibit C
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Pontiac Osteopathic Hospital Nursing Home Project)
The undersigned, Pontiac Osteopathic Hospital
a Michigan nonprofit corporation (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 Pontiac Osteopathic
Hospital Nursing Home 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.
PONTIAC OSTEOPATHIC HOSPITAL , a
Michigan nonorofit corporation
By:
Jack H. Whitlow
Its: Executive Director
Dated:
- 10-
Exhibit D
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Pontiac Osteopathic Hospital Nursing Home Project)
The undersigned, Pontiac Osteo,athic Hospital
a Michigan nonprofit corporation (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.
MA.
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 Pontiac Osteopathic
Hospital Nursing Home 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 Village of Lake Orion, 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 Village of Lake Orion , Michigan unless the Company or such
-11.-
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.
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.
PONTIAC OSTEOPATHIC HOSPITAL , a
Michigan nonprofit corporation
By:
Jack H. Whitlow
Its: Executive Director
Dated: