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HomeMy WebLinkAboutResolutions - 1987.05.14 - 17867MISCELLANEOUS RESOLUTION # 87126 BY: PLANNING AND BUILDING COMMITTEE—Anne M. Hobart, Chairperson BUILDING AUTHORITY-- RE: AMENDMENT TO BUILDING AUTHORITY CONTRACT TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRPERSON, LADIES AND GENTLEMEN: WHEREAS, on February 18, 1987, the Board approved execution of a lease contract between the County of Oakland (the "County") and the Oakland County Building Authority (the "Authority") (the "Lease") providing for the acquisition and construction of a jail facility together with the improvement of the site therefor and the installation of equipment therein to be owned by the Authority and leased to the County and to be financed with the proceeds of Bonds to he issued by the Authority in an amount not to exceed $16,625,000 (the "Bonds"); and WHEREAS, the Lease provides for interest on the Bonds to be capitalized; and WHEREAS, the Board has determined that it is no longer necessary to capitalize such interest and that the period of usefulness of the jail facility will be 20 years and upwards; and WHEREAS, the Lease also provides for (i) interest on the Bonds to be paid on September 1, 1987 and semi-annually thereafter on each March 1 and September 1 until maturity of the Bonds, (ii) for the Bonds to be dated as of March 1, 1987 and (iii) for the Bonds to mature on April 1 of each of the years 1988 through 2002; and WHEREAS, the Board has determined that is in the best interest of the County (i) to pay interest on October 1, 1987 and semi-annually thereafter on April 1 and October 1 until maturity of the Bonds, (ii) for the Bonds to be dated as of May 1, 1987, (iii) for the Bonds to mature on October 1 in each of the years 1988 through 2002 in the same amounts as described in Exhibit B to the Lease and (iv) the Bonds to be callable prior to the date of redemption; and WHEREAS, there has been presented to this Board a form of Amendment to Lease Contract (the "Lease Amendment") to effectuate the foregoing. NOW THEREFORE BE IT RESOLVED: 1. The form of Lease Amendment attached hereto is hereby approved and the Chairman of the Board and the County Clerk are hereby authorized and directed to execute the Lease Amendment substantially in the form attached hereto with such changes as may be necessary to allow issuance of the Bonds in the form authorized by the Authority on April 13, 1987. 2. All resolutions and parts of resolutions insofar as may conflict with this resolution are hereby rescinded. Mr. Chairperson, on behalf of the Planning & Building Committee, 1 move the adoption of the foregoing resolution. Planning & Building Committee AMENDMENT TO LEASE CONTRACT THE FULL FAITH AND CREDIT GENERAL OBLIGATION LEASE CONTRACT (the "Lease") made as of December 1, 1986, by and between the Oakland County Building Authority (the "Authority"), a building authority organized and existing under and pursuant to the provisions of Act No. 31, Public Acts of Michigan, 1948 (First Extra Session), as amended ("Act 31"), and the County of Oakland, a County of the State of Michigan (the "County"), is hereby amended as provided below (the "Lease Amendment"). Any undefined terms herein shall have the meaning given to them in the Lease. A. Paragraphs 1 and 2 of Section 1 of the Lease are hereby amended by substitution of the following: 1. Authorization and Issuance of Bonds. As soon as practicable after the effective date of this Lease, the Authority shall proceed to authorize and issue its building bonds in the aggregate principal amount of not to exceed $16,625,000 (the "Bonds"), pursuant to and in accordance with the provisions of Act 31, for the purpose of defraying the cost of the Project. The Authority shall pledge for the payment of the principal of and interest on the Bonds the receipts from the cash rental payments described and required to be paid by the County pursuant to this Lease. The Bonds shall be dated May 1, 1987, shall bear interest at a rate or rates not exceeding 12% per annum payable on October 1, 1987 and each April 1 and October 1 thereafter to maturity and shall mature (either by maturity or mandatory redemption) in accordance with the Debt Retirement Schedule set forth on Exhibit B to this Lease, provided, however, the Bonds shall mature on -3-- October 1 instead of April 1 in each of the years described on Exhibit B and provided further the Bonds shall be subject to optional redemption as provided in the resolution authorizing the Bonds. The County and the Authority recognize and acknowledge that such Debt Retirement Schedule assumes the estimated interest rate set forth therein and that the amount of each payment of interest on the Bonds and the amount of each payment of cash rental required under this Lease will be determined by application of the rate or rates of interest (not exceeding 12% per annum) actually borne by the Bonds. The Bonds may be sold subject to redemption prior to maturity at the option of the County, with such redemption premiums and upon such other terms and conditions as shall be set forth in the resolution to be adopted by the Authority to authorize issuance of these Bonds (the "Bond Resolution"). Upon receipt of the proceeds of the sale of the Bonds, all premium, if any, and accrued interest received from the purchaser or purchasers of the Bonds shall be transferred to a bond and interest redemption fund, and the :balance of such proceeds shall be deposited into a construction fund, each of which shall be established by the Bond Resolution and maintained as a separate depository account of the Authority. The construction fund shall be used to pay costs of the Project. B. Paragraph 1 of Section 7 of the Lease is hereby amended by substitution therefor of the following: -4- 7. Cash Rental; Pledge of Full Faith and Credit. The County hereby agrees to pay to the Authority as cash rental for the Project such periodic amounts as shall be sufficient to enable the Authority to pay the principal of and interest on the Bonds as such principal and interest shall become due, whether at maturity or by optional or mandatory redemption. On September 15, 1987, and on each March 15 and September 15 thereafter while any of the Bonds remain outstanding, the County shall pay to the Authority an amount sufficient to pay the interest due on the Bonds on the first day of the following month. In addition to such payments in respect of interest on the Bonds, on September 15, 1987, and on each September 15 thereafter while any of the Bonds are outstanding, the County shall pay the Authority an amount sufficient to pay the principal due on the Bonds on the first day of the following month. IN WITNESS WHEREOF, the OAKLAND COUNTY BUILDING AUTHORITY, by its Commission, and the COUNTY OF OAKLAND, by its Board of Commissioners, have caused this Lease Amendment to be signed by their duly authorized officers, and their seals to be affixed hereto, all as of , 1987. Witnessed as to both OAKLAND COUNTY BUILDING AUTHORITY signatures by: By Chairperson By Secretary Witnessed as to both COUNTY OF OAKLAND signatures by: By Chairman By Clerk, Oakland County -6- 65706 0001 87.04.0637 MISCELLANEOUS RESOLUTION # 87126 May 14, 1987 Moved by Hobart supported by Richard Kuhn the resolution be adopted. AYES: Richard Kuhn, Susan Kuhn, Lanni, Law, Luxon, McConnell, McDonald, Rue] McPherson, Moffitt, Page, Pernick, Rewold, Rowland, Skarritt, Calandro, Crake, Doyon, Gosling, Hobart, Jensen. (20) NAYS: None. (0) 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 this Miscellaneous Resolution adopted by the Oakland County Board of Commissioners at their meeting held on Ma li, 1987 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 14th day of fAill May 1987 ailla ilErr ALLEN County Clerk/Register of Deeds