HomeMy WebLinkAboutResolutions - 1984.11.29 - 17343November 2$, 1984
1808E
MISCELLANEOUS RESOLUTION NO. 84310
RE: ECONOMIC DEVELOPMENT GROUP
RESOLUTION APPROVING PROJECT PLAN
(EIGHT STAR LIMITED PARTNERSHIP NURSING FACILITY 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 Eight Star Limited
Partnership Nursing Facility 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 , 1984, the governing body of
West Bloomfield Township, Oakland County, Michigan. also approved
the Project Plan; and
WHEREAS, on November 8, , 1984. this Board of
Commissioners held a public hearing to consider whether the
Project Plan constitutes a public purpose as contemplated by the
Act; and
NAYS:
ABSENT:
RESOLUTION DECLARED ADOPTED:
LyD'A1l en
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 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
Y APPROVE THE FOREGOING RESOLUTION V.
dakalL
k
4 Lanni James-
Chairm
Moved-by Lanni supported by NeTs-on ere resolution be adopted.
YEAS: Members: Fortino, Gosling, Hobart, R. Kuhn, Lanni, Law, McConnell
McDonald, McPherson, Moffitt, Moore, Nelson, Olsen, Page, Pernick, Price,
Rewold, Wilcox, Aaron, Caddell, Calandro, Doyon, Foley. (23)
Members: None. (0)
Members: Geary, Jackson, Susan Kuhn, Perinoff. (4)
ABSTENTIONS: Members: None. (0)
County Clerk
- 2 -
Lynn-f0-: Allen
Countit 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 Z9th day of November , 1984, 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: November 29 , 1984
Exhibit . A ,
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Eight Star Limited Partnership Nursing Facility 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 n — Project Area Legal Description
• - Bond Purchaser's Commitment Letter
• - Company Certificate Regarding "Prevailing Wages"
• - Company Certificate Regarding Transfer of
Employment
"E" - Description of Project
PROJECT PLAN
SUMMARY DESCRIPTION OF
EIGHT STAR LIMITED PARTNERSHIP NURSING FACILITY PROotCT
OWNER OF PROJECT: Eight Star Limited Partnersnip, a Michigan
Limited Partnership
CONTACT PERSON: Timothy Spiro, 21411 Civic Center, Suite 205,
Southfield, Michigan 48076
LOCATION OF PROJECT: Maple and Drake Roads, West Bloomfield,
Michigan
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT: 120-bed skilled nursing facility and 86-bed
home for the aging
EMPLOYMENT CREATED OR RETAINED: New, permanent jobs -- 160
approximately
TOTAL PROJECT COST: Approximately $6,000,000.00
BONDS TO BE ISSUED: $6,000,000.u0
BOND PURCHASER: See attached Exhibit B
DATE AND EXeIRATION DATE OF BOND PURCmASE COMMITMENT: See
attached Exhibit B
EIGHT STAR LIMITED PARTNERSHIP,
By:
othy Spiro
s: General Pdrtner
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 AMENDtD.
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.
Dated:
PROJECT PLAN
STATUTORILY REQuiRED INFORMATION REGARDING
EIGHT STAR LIMITED PARTNERSHIP NURSING FACILITY 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 facility is to be on Maple Road east of Drake Road.
Maple Road is a two-lane, paved highway. The surrounding area
to the south is primarily residential, currently being developed
in single-family and multi-family residences. The property to
the immediate north is developed in the same fashion, except to
the west where there exists a large, all-purpose recreational
facility. Approximately one mile to the east are commercial
facilities. To the west exists Henry Ford Hospital. In
general, tne surrounding area is of a residential character with
some business.
Legai description of the Project Area attached as Exhibit
A .
A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE
PROJECT ARE TO BE DEMOLISHED, REPAIRED, OR ALTERED; A
DESCRIPTION OF REPAIRS AND ALTERATIONS; AND AN ESTIMATE OF THE
TIME REQUIRED FOR COMPLETION:
The site is vacant. A new facility is to be erected.
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 Exhibit E for a description of the Project.
The project plan will require approximately 12 to 18 months
to complete, wnich includes necessary lead time for site work,
engineering, etc.
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
The project will be developed in one stage. Estimated time
of completion is 12 to 18 months.
V. DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE
LEFT A OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
The entire site consists of approximately 16.7 acres of
-4-
land. The building will require approximately 60,000 square
feet of land. The balance of approximately 14 acres will be
utilized for parking and landscaping areas.
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
VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES
IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
There are no changes required for zoning, etc.
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING
THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND
PURCHASER'S COMMITMENT LETTER:
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 PUnLIC ACTS OF 1965, AS AMENDED (REGARDING WAGES
ON STATE CONTRACTS):
See attached Exhibit C.
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:
Timothy Spiro, Charles Herbert, John Bell, and Alexander
Spiro, Jr.
XI. DESIGNATION OF THE
CORPORATE, TO WHOM THE PROJECT
CONVEYED AND FOR WHOSE BENEFIT
TO THE EXTENT THAT INFORMATION
PERSON OR PERSONS, NATURAL OR
IS TO BE LEASED, SOLD, OR
THE PROJECT IS BEING UNDERTAKEN,
IS PRESENTLY AVAILABLE:
The applicant, Eight Star Limited Partnership, is the owner
and intends to operate the facility. If it is possible, the
applicant may lease to another entity composed primarily of the
principles of Eight Star 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 UPuN ITS COMPLETION:
The principles of Eight Star Limited Partnership may, for
business reasons and for ease of operation, form a separate
-5-
entity as the operating company. The details for this
arrangement have not been finalized.
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 TEE 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 indiviouals 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 PM:51,1C ACTS OF 1972, WHICH PERTAINS TO PROVIDING
FINANCIAL ASSISTANCE, ADVISORY SERVICES AND REIMBURSEMENT OF
CERTAIN nrENSES 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
LEGAL DESCRIPTIO:i •
Parcel "A"
Lard located in the Township of West Bloomfield,
Oakland County, Michigan, described as follows:
Part of the Northwest 1/4 of Section 33, T.2N.,
R.9E., beginning at a point on the North Section'
-line, said point being South 88 0 46' 40" East
380.0 feet from the Northwest corner .of said
Section 33; thence continuing South 88° 46' 40". East
938.93 feet; thence South 000 59' 54" West 775.01
feet alono the West line of "Nash's Acres No. 3", . --
and its extension thereof; thence North 880 46' 40" West -
941.26 feet; :thence North 01° 10' 13" East 775.00 feet
to the Point of Besinning. Subject to the rinhts of .
the public and any governmental unit in any part
thereof, taken, used or deeded for street, road
or highway purposes. Containing 728,579 square
feet or 16.726 acres.
EIGHT STAR LIMITED PARTNERSHIP,
a Michigan limtted
partnership
By:
ts: Genera Partner
Exhibit C
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Eight Star Limited Partnership Nursing Facility Project)
The undersigned, Eight Star Limited Partnership, 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 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 Eight Star Limited Partnership Nursing Facility
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.
Dated:
Very truly yours,
aniel F. .us
ice President
EXHIBIT B
McDONALD & COMPANY
SECURITIES, INC.
miniDER NM' YORK STOCK EXCHANGE
401 SOUTH WOODWARD AVENUE • SUITE 333 • P.O. BOX 447$
BIRMINGHAM, MICHIGAN 48011 - 313/$40-1221
October 10, 1984
Mt. Robert L. Schwartz
Axe & Schwartz
300 E. Long Lake Road, Suite 300
Bloomfield Hills, Michigan 48013
RE: $6,033,000 Limited Obligation Revenue Bonds
The Economic Development Corporation of the
County of Oakland (Issuer)
Eight Star Limited Partnership (Obligor)
Dear Mt. Schwartz:
This letter is to advise you of our firm's intention to participate
as the original purchaser and underwriter in the above referenced financing.
After all bond documentation has been prepared in final form, and after
a short preliminary marketing period, we would expect to execute a Bond
Purchase Agreement with the Issuer which would clarify the terms and
conditions by which McDonald & Company Securities, Inc. ("McDonald") agrees
to purchase the proposed bonds. Of course, our commitment is conditional
upon the delivery of a letter of credit in acceptable form issued by
Comerica Bank-Detroit or Manufacturer National Bank of Detroit, or another
bank acceptable to McDonald. I have had discussions with each of these
two banks and it is my understanding that each bank expects to deliver
a comitment tc issue a letter of credit to secure the above referenced
bonds.
I look forward to working with you and our other participants in
the week's ahead and should I be able to answer any questions regarding
our firm's intent, do not hesitate to contact me.
DFA:clv
cc: Timothy C. Spiro
Robert C. Gorwin
Jeffrey Kaczmarek
Marvin Kramer
Exhibit D
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Eight Star Limited Partnership Nursing Facility Project)
The undersigned, Eight Star Limited Partnership. 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 mirrugre-s-ErMation or inaccuracy, might invalidate the
proceedings regarding the Eight Star Limited Partnership Nursing
Facility 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 puniripAlity (as that term is defined in the Act)
of this State to West Bloomfield Township, 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 Bloomfield Township, 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.
EIGHT STAR LIMIT
a Michiga
partners
PARTNERSHIP,
limited
By: 0
General/ Partner
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.
Dated: /i —1 /
Exhibit E
Description of Project
The proposed facility will include approximately
63,626 gross square feet, to be constructed on a lot 700 feet
by 942 feet on Maple Road, near the intersection with Drake
Road. It will be a one-story structure (with basement)
consisting of two (2) approximately 100-bed nursing units
flanking a central core of support services- Medicare
certification will be sought for approximately 35 beds at
a minimum. In addition to the nursing units, the following
ancillary services will be available: dietary, physical
therapy, recreational/occupational therapy, and beauty shop.
Approximately 8,400 square feet will be developed to patient
lounges and dining.
MAN UfACIURERS BiNK
Exhibft B
!ktlANUFACTURL-RS NATIONtll BANK
0 Po, 559
October 12, 1984
Mr. Timothy Spiro, Executive Director
Health Savings Services
Mark Plaza, Suite 205
21411 Civic Center Drive
Southfield, MI 48076
Dear Mr. Spiro:
During the past few weeks, we have met on several occasions to discuss
your request for a letter of credit to back approximately $6 million
of bonds to be issued through the Oakland County Economic Development
Corporation, Funds are to be used for the construction of a 206 bed
nursing home at Drake & Maple Roads. We have reviewed the projections
submitted, as well as financial information on the five existing homes
owned by the various partners. We are also familiar with Radius
Health Care System, Inc. through our dealings with Harper Grace
Hospital.
Based on the information submitted to us, Manufacturers Bank is
pleased to inform you that we are willing to issue a Letter of Credit
for the project and look forward to expanding the valuable customer
relationship we already enjoy with the partners involved.
As usual, issuance of the Letter of Credit is predicated on approval
of the transaction by the various lending committees of the bank,
granting of appropriate security, and our mutual agreement as to
appropriate terms and conditions of the Reimbursement Agreement and
Guaranty Agreements and your approval of the various fees involved
depending on bond structure and maturity. Satisfactory review of all
loan documents by the Banks legal counsel will also be required as we
proceed.
I appreciate the time you have spent with us in reviewing the project
and the opportunity to tour the various existing facilities operated
by the partners. We wish you every success in this endeavor and hope
that you will continue to use Manufacturers as your banking resource
in the future.
Sincerely,
rm'V
Donna M. Vanderberg
Vice President
DMV/bs