HomeMy WebLinkAboutResolutions - 1990.09.13 - 18342MISCELLANEOUS RESOLUTION NO, 90224 September 13, 1990
RE: ECONOMIC DEVELOPMENT DIVISION
RESOLUTION APPROVING PROJECT PLAN
(DETROIT COUNTRY DAY SCHOOL PROJECT) -
VILLAGE OF BEVERLY HILLS
BY: PLANNING AND BUILDING COMMITTEE, LARRY CRAKE, CHAIRMAN
TO: THE OAKLAND COUNTY BOARD OF COMM :SSIONERS
Mr. Chairman, Ladies and Gentlemen:
WHEREAS, The Economic Develop
County of Oakland (the "EDC") has rE
of Commissioners approve the Proje
Economic Development Corporations A
Michigan Public Acts of 1974, as am
Detroit Country Day School Project,
Plan is attached hereto as Exhibit A (
WHEREAS, the EDC's recommenda
Commissioners was based upon its
Project is reasonable and necessary t
of the Act, that the Project Plan p
the Project satisfies all of the req
the Act regarding project plans, tha
active in the management of the proj
year after the projected date o
Commissioner's approval of the E
sufficient ability and experience to
and that the proposed method of f
feasible and a bond purchaser's COME
and
WHEREAS, on August 20 , 1990, the governing body of
the Village of Beverly Hills, Oakland County, Michigan, also
approved the Project Plan; and
ment Corporation of the
?commended that this Board
ct Plan required by the
ct, Act No. 338 of the
ended (the "Act") for the
a copy of which Project
the "Project Plan"); and
tion to this Board of
determinations that the
:o effectuate the purposes
repared in connection with
uirements of Section 8 of
t the persons who will be
ect for at least one (1)
f the County Board of
,roject Plan will have
manage the Plan properly,
'inancing the Project is
dtment has been obtained;
1990, this Board of
to consider whether the
urpose as contemplated by
WHEREAS, on September 13. , Commissioners held a public hearing
Project Plan constitutes a public p
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 :T PESO LVED BY THE BOARD OF
, as follows: COMMISSIONERS OF THE COUNTY OF OAKLAND
NAYS: Members: None.
RESOLUTION DECLARED ADOP
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.
PLANNING AND BUILDING COMMITTEE
I HPIEBY APPROVE THE FORE9OING RESOLUTION
T. MuOly,t610ityET66,7 -5---G::: ate rry C5,4k
Chairman
Moved by Crake supported by Jensen the resolution be adopted.
YEAS: Members: McPherson, Moffitt, Caks, Olsen, Pappageorge. Pernick,
Price, Rewold, Skarritt, itlf, Aaron, Bishop, Caddell, Crake, Gosling, Huntoon,
Jensen, Johnson, R. Kuhn, Law, McConnell, McCulloch. (22)
ABSENT: Members: Calandra Chester. Ferrens, S. Kuhn, Luxon. (5)
ABSTENTIONS: Members: None
LyniOrD. Allen
County Clerk
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Detroit Country Day School 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" - Underwriter's Commitment Letter
"C" - Company Certificate Regarding "Prevailing
Wages"
- Company Certificate Regarding Transfer of
Employment
"E" - Letter of Credit Issuer's Commitment Letter
(RLS-1863)
PROJECT PLAN
SUMMARY DESCRIPTION OF
DETROIT COUNTRY DAY SCHOOL PROJECT
OWNER OF PROJECT:
Detroit Country Day School, a Michigan nonprofit
corporation
CONTACT PERSON: (Name, address, telephone number)
James G. Martin
Vice President
Finance and Management
22305 West Thirteen Mile Road
Birmingham, Michigan 48010
(313) 646-7717
LOCATION OF PROJECT: (Local municipality)
Village of Beverly Hills
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT:
Construction and equipping of 460€,O square foot new
Middle School.
EMPLOYMENT CREATED OR RETAINED:
At least 4 new permanent positions created; 225
retained.
TOTAL PROJECT COST:
$8,581,600.00
BONDS TO BE ISSUED:
$7,500,000.00
BOND PURCHASER/CREDIT ENHANCER:
McDonald & Company Securities, Inc., is Underwriter.
National Bank of Detroit, is issuer of letter of
credit.
DATE AND EXPIRATION DATE OF LETTER OF CREDIT COMMITMENT:
Dated: /976,
•nn 2 •nnn
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.
DETROIT COUNTRY DAY SCHOOL
By: ' ) 4772/evt42,
Its: Vice President
Finance and
Management
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
DETROIT COUNTRY DAY SCHOOL 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:
Existing land within Project Area/District Area is all
owned by Detroit Country Day School and contains no
publicly-owned streets or other facilities. It is used
primarily in the operation of the existing Middle and Upper
Schools. The Project Area/District Area will be the site for
the construction and equipping of the proposed new Ga,oao square
foot Middle School.
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:
Two existing Detroit Country Day School-owned
residences on the construction site will be demolished.
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:
In Beverly Hills, on the north side of Hillview Lane, replacing two existing
sinale-family dwellings, a three-story school buildina will be built into
the existing slope of the hill at an estimated cost of $8,581,600. The
project should be completed in fourteen months.
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
Phase I will encompass site plan preparation including the widening of Lahser
Road at Hillview Lane and the expansion of Hillview Lane to a 27 foot wide
paved road with curb and gutters. This phase should be completed before
October 1, 1990. Phase II, the construction of the building, will be
accomplished between September 1990 and September 1991.
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO
BE LEFT AS OPEN SPACE AND THE -JSE CONTEMPLATED FOR THE SPACE:
The parking lot, to be located on the south side, will be surrounded on three
sides by green belt which exists. The north and west sides of the building
will retain the existing playing field and trees.
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:
The school has received a zoning variance for the height (3-story) of the
building and the reduction of Darking spaces to 75.
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF
FINANCING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE
BOND PURCHASER'S COMMITMENT LETTER:
The school plans to use Industrial Revenue Bonds with the amortization
extended to the year 2008 with the issuance of a five year put enhanced
by a Letter of Credit from the National Bank of Detroit.
Copy of commitment letter attached as Exhibit B and
credit enhancers commitment attached as Exhibit E.
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.
X. A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED
WITH THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS
THAN I (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN:
Gerald T. Hansen, Headmaster
James G. Martin, Vice President, Finance and Management
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:
Not applicable.
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.
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, :NCLUDING 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
LEGAL DESCkIPT1ON
Lots 8, 9 & 10, BERKSHIRE HILLS, an unrecorded private plat in HE 1/4 of
Section 10, T. 1 N., R. 10 E., Village of Beverly Hills, Oakland C.,
Michigan.
uly yo
amel F.
Senior Viceident
DFA/CLV/ama
therine L. Vaughan
Vice President
Exhibit B
McDONALD & COMPANY
• SECURITIES. INC.
UNDERWRITER ' S COMM T TMEliaMRER NEW YORE srocx. EXCHANGE
LETTER 260 E BROWN STREET • SUITE 150 • P.O. BOX 4475
BIRMINGHAM. MICHIGAN 48009 • 3137540-5230
TELECOPY 3131540-8E16
May 23, 1990
Mr. James G. Martin
Detroit Country Day School
22305 West Thirteen Mile Road
Birmingham, MI 48010 -
RE: $7,500,000 Detroit Country Day School Project
Dear Jim:
We are extremely pleased to have been selected as the Financial Advisor and
Underwriter for the above referenced financing. We understand that this selection
requires ratification of the school's Board of Trustees. We look forward to working
with you and the other members of our working group in the upcoming weeks.
McDonald & Company Securities, Inc. ("McDonald") enters into this underwriting
process with the commitment to underwrite the proposed bonds on a "firm
underwriting" basis. After the selection of letter of credit banks and after
prelirninsry bond documents have been drafted, including a preliminary official
statement, a brief marketing period commences (3-4 days). Immediately following
the marketing period, McDonald will execute a binding Bond Purchase Agreement
to purchase all of the bonds. The closing and transfer of funds normally occurs
within two weeks from the signing of the Bond Purchase Agreement.
If we may answer any other questions from you or other officials at the school,
do not hesitate to call either of us.
By: rnt
Dated: /99,
Exhibit C
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Detroit Country Day School Project)
The undersigned, Detroit Country Day School, 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 Detroit Country Day
School 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.
DETROIT COUNTRY DAY SCHOOL, a
Michigan nonprofit corporation
ts: Vice President
Finance and
Management
- 9 -
Exhibit D
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Detroit Country Day School Project)
The undersigned, Detroit Country Day School, 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 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 Detroit Country Day
School 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 Beverly Hills, 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 the
Village of Beverly Hills, Michigan, unless the Company or such
- 1 0 -
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.
DETROIT COUNTRY DAY SCHOOL, a
Michigan nonprofit corporation
Finance and
Management
By: yr•ez-r-ilea-
its : Vice President
Dated: eb-ty
Exhibit E
- ' •
LETTER OF CREDIT
ISSUER'S COMMITMENT LETTER
NM) Bank, NA.
611 Wondwatr) Avenue
Detroit, Michigan 48226
Phone 313225.3104
Mary 1.ke Penney
Assistant ViCf President
July 25, 1990
Mr. Jeffrey A. Kaozmarek
Manager
The Economic Development Corporation
of the County of Oakland, Michigan
Executive Office Building
1200 N. Telegraph Road
Pontiac, Miahigan 48053
Gentlement
We understand that The Economic Development corporation of
the County of Oakland ("EDC") is reviewing an application by
Detroit Country Day School for the issuance of Up to $7,500,000
of EDC Induetrial Development Revenue Bonds. The bond proceeds
would be used by the corporation to construat an additional
school building to be located adjacent to their current facilities
in Beverly HilAe.
Please be advised that Detroit Country Day School ia a valued
customer of NBD Bank, N.A. and, although we have not fully
reviewed all of tie financial information pertaining to this
projeot, we are interested in providing a letter of credit
to support theme bonds. We believe that the underWriting of
theee bonds would be through McDonald & Company located in
Birmingham, Michigan.
Please contact me if you should have any questions.
Sincerely,
Assietant Vice rresidsnt
MLP:1m