HomeMy WebLinkAboutResolutions - 1991.12.12 - 18416MISCELLANEOUS RESOLUTION # 91236 , DATE November ,1991
BY: FINANCE COMMITTEE - DR. G. W. CADDELL, CHAIRPERSON
IN RE: BUILDING AUTHORITY
OAKLAND COUNTY COURT HOUSE
WEST WING EXTENSION
TO: THE OAKLAND BOARD OF COMMISSIONERS
MR. CHAIRPERSON, LADIES AND GENTLEMEN:
NOTICE OF INTENT AND RESOLUTION TO APPROVE PRELIMINARY PLANS,
COST ESTIMATE, ESTIMATE OF THE PERIOD OF USEFULNESS
AND LEASE CONTRACT
WHEREAS, there have been prepared and presented to the Board
of Commissioners (the "Board") of the County of Oakland, Michigan
(the "County"), preliminary plans to undertake the extension of
the West Wing of the Oakland County Courthouse Building, at 1200
North Telegraph Road, Pontiac, Michigan (the "Project"), all as
more fully described in EXHIBIT A to the Lease Contract (as
hereinafter defined), and a proposed Lease Contract between the
County and the Oakland County Building Authority (the
"Authority") dated as of December 1, 1991 (the "Lease Contract"),
pursuant to which the Authority will construct the Project as
contemplated by the terms of Act No. 31, Public Acts of Michigan,
1948 (First Extra Session), as amended ("Act 31"), and lease the
Project to the County for a term not to exceed 50 years as
permitted by Act 31; and
WHEREAS, it has been estimated the period of usefulness of
the Project to be not less than 25 years and that the total cost
of improvement for the Project and issuing the Bonds (as defined
in the Lease Contract) will be approximately $17,000,000 which
will be provided by the proceeds from the sale of the bonds by
the Authority pursuant to Act 31; and
WHEREAS, there has been prepared and attached hereto as
APPENDIX I a form of Lease Contract and as APPENDIX II a form of
notice entitled "NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO
ENTER INTO A LEASE CONTRACT WITH THE OAKLAND COUNTY BUILDING
AUTHORITY AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON"
(the "Notice of Intention");
ROLL CALL
Motion carried unanimously with
Bishop, Price and Pernick absent.
ladniel I. Murphy, Courtly Executive
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE COUNTY OF OAKLAND, MICHIGAN, THAT:
1. The preliminary plans and estimates relating to the
Project and identified in EXHIBIT A to APPENDIX I hereto are
hereby approved and ordered filed with the County Clerk.
2. The Lease Contract in the form of APPENDIX I hereto is
hereby approved, and the Chaitman of the Board of Commissioners
and the County Clerk are hereby authorized and directed to
execute and deliver the same for and on behalf of the County.
3. It is hereby determined that the Notice of Intention
provides information sufficient to adequately inform the electors
and taxpayers of the County of the nature of the contractual
obligations to be undertaken by the County in the Lease Contract
and of their right under Act 31 to file a petition requesting a
referendum election on the Lease Contract.
4. The form and content of the Notice of Intention are
hereby approved, and the County Clerk is hereby authorized and
directed to cause the Notice of Intention to be published once in
the Oakland Press and on the same day in the Daily Tribune,
newspapers of general circulation within the County either of
which are hereby determined to be the newspapers reaching the
largest number of electors and taxpayers of the County.
5. The Oakland County Treasurer is authorized to declare
its official intention on behalf of the County with respect to
its reimbursement for amounts expended on the Project from the
issuance of tax exempt bonds.
MR. CHAIRPERSON, on behalf of the Finance Committee, I move
the adoption of the foregoing Resolution. _
FINANCE COMMITTEE
1 HEREBYAPPROVETHE FOREGOING RESOLUTIOn
Date
2
APPENDIX I
LEASE CONTRACT
THIS FULL FAITH AND CREDIT GENERAL OBLIGATION LEASE CONTRACT
("Lease") made as of December 1, 1991, 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"),
WITNESSETH:
WHEREAS, the Authority has been incorporated by the County
pursuant to Act 31 for the purpose of acquiring, furnishing,
equipping, owning, improving, enlarging, operating and
maintaining a building or buildings, automobile parking lots or
structures, recreational facilities and stadiums, and the
necessary site or sites therefor, for the use of the County; and
WHEREAS, the County desires to undertake the extension of
the West Wing of the Oakland County Courthouse in Pontiac,
Michigan, by constructing and equipping an addition of
approximately 151,000 square feet (the "Project"), as more fully
described in EXHIBIT A to this Lease, and it is proposed that the
Authority undertake the Project; and
WHEREAS, it is proposed that the Authority finance the total
cost of the Project by the issuance of building authority bonds
payable from cash rental payments to be made by the County to the
Authority pursuant to this Lease and Act 31; and
WHEREAS, a description of the Project, and estimate of the
period of usefulness thereof and an estimate of the total cost of
the Project, all as set forth on EXHIBIT A to this Lease, have
been reviewed and approved by the Board of Commissioners of the
County; and
WHEREAS, in order to make possible the issuance of building
authority bonds to finance the total cost of the Project, it is
necessary under Act 31 for the parties to enter into this Lease;
THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS AND
AGREEMENTS SET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN
THE PARTIES TO THIS LEASE AS FOLLOWS:
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 authority bonds
in the aggregate principal amount of not to exceed $17,000,000,
(the "Bonds"), pursuant to and in accordance with provisions of
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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 January 1, 1992 or the
first day of such earlier or later month as the Authority shall
approve in the resolution authorizing issuance of the Bonds (the
"Bond Resolution"), but not before December 1, 1991 or after
December 1, 1992. The Bonds shall bear interest at a rate or
rates that will result in a net interest cost not exceeding 10%
per annum. Interest shall be payable on each September 1 and
March 1, beginning on the date which shall be specified in the
Bond Resolution, and thereafter to maturity and shall mature in
accordance with the Debt Retirement Schedule set forth on EXHIBIT
B to this Lease. Each date on which any payment of principal of
and/or interest on any Bond is due is referred to herein as a
"Bond Payment Date." The Bonds may be payable on the first day
of a different month if necessary to match rental income paid to
the County.
The County and the Authority recognize and acknowledge that
(a) such Debt Retirement Schedule is based upon an assumed
interest rate and date of issuance of the Bonds and assumed Bond
Payment Dates, all as set forth in EXHIBIT B, (b) the Bond
Payment Dates and will be specified in the Bond Resolution, (c)
the date and amount of each payment of cash rental required under
this Lease will be determined (subject to the limitations
expressed in the preceding paragraph of this Section) when the
Bond Resolution is adopted by the Authority and the Bonds are
sold, by application of the rate or rates of interest (that will
result in a net interest cost not exceeding 12% annum) actually
borne by the Bonds.
The Bonds may be sold subject to redemption prior to
maturity at the option of the Authority with such redemption
premiums and upon such terms as shall be set forth in the Bond
Resolution.
Upon receipt of the proceeds of the sale of the Bonds, all
premium, capitalized interest, 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 an improvement
fund, each of which shall be established by the Bond Resolution
and maintained as a separate depository account of the Authority.
The money in the improvement fund shall be used to pay costs of
the Project, and upon payment of all such costs, any excess money
in the improvement fund will be used as provided in Section 4.
In the event that for any reason after the date upon which
this Lease is executed, but before the Bonds have been issued, it
appears to the County and the Authority that the Project to be
paid by Bond proceeds can be constructed for less than
$17,000,000, or the County shall be able to make payment in
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advance on the cash rental payments payable pursuant to this
Lease, the Authority may reduce the amount of bonds to be issued
in multiples of $5,000 and reduce the annual maturities or the
years of maturities as the County shall direct.
2. Transfer of Title to and Completion of Project. As
soon as practicable after the Bonds have been sold, the County
shall transfer title to the Project to the Authority, and the
Authority shall commence the Project. The plans, cost estimate
and estimated period of usefulness for the Project, all of which
have been filed with the County Clerk and the Secretary of the
Authority, are hereby approved and adopted. The Project shall be
implemented in substantial accordance with such plans which are
incorporated as part of (but not attached to) this Lease. No
major changes in such plans shall be made without the written
approval of both the County and the Authority.
3. Increased Project Costs. In the event that it shall
appear, upon taking the necessary bids for the improvement of the
Project and after issuance of the Bonds, that the Project cannot
be completed at the estimated cost, the Authority shall
immediately so notify the County. The County may elect to pay
the increased cost in cash to the Authority in which event the
amount of such cash payment shall be deposited in the improvement
fund for the Project and the Authority shall proceed to construct
and complete the Project. In the alternative, the County and the
Authority may agree, by an amendment to this Lease, that
additional Bonds shall be issued by the Authority in an amount
sufficient to pay the increased Project costs. If, after the
sale and issuance of the bonds, it shall become necessary to
raise additional funds to pay for an increase in the Project
costs and this Lease cannot be amended to provide for the
issuance of additional bonds, or if for any other reason
additional Bonds cannot be issued, the County shall pay to the
Authority in cash an amount which will be sufficient to enable
the Authority to complete the Project in accordance with the
plans of the Project.
4. Funds Remaining After Completion. Any unexpended
balance of the proceeds of the sale of the Bonds remaining after
completion of the Project may be used to improve or enlarge the
Project or for other projects of the Authority provided that such
use of the funds in the improvement fund has been approved by the
Municipal Finance Division of the Michigan Department of
Treasury, if necessary, and the County. Any unexpended balance
not so used shall be paid into the bond and interest redemption
fund, and the County shall receive a credit against the cash
rental payments next due under this Lease to the extent of the
moneys so deposited in the manner provided in the Bond
Resolution.
5. Insurance Requirements During Improvement. The
Authority shall require the contractor or contractors for the
Project to furnish all necessary bonds guaranteeing performance
3
and all labor and material bonds and all owner's protective,
workers' compensation and liability insurance required for the
protection of the Authority and the County. Such bonds and
insurance, and the amounts thereof, shall be subject to approval
of the County on the advice of its counsel. The Authority also
shall require a sufficient fidelity bond from any person handling
funds of the Authority.
6. Lease Term; Possession; Reconveyance. (a) The
Authority does hereby lease the Project to the County for a term
commencing on the effective date of this Lease (determined as
provided in Section 22) and ending on September 1, 2014, or such
earlier or later date as the principal of and premium, if any,
and interest on the Bonds, the fees and expenses of the paying
agent for the Bonds and all amounts owing hereunder have been
paid in full, but in any event the term of this Lease shall not
exceed 50 years. Possession of the Project shall vest in the
County upon the execution of the Lease. At the end of the term
of this Lease, the Authority shall convey to the County all of
its right, title and interest in and to the Project and any
lands, easements or rights-of-way appertaining thereto, and upon
such conveyance, this Lease shall terminate, and the Authority
shall have no further interest in, or obligations with respect
to, the Project.
(b) The County shall, upon the terms and conditions
set forth in this Lease, acquire and convey to the Authority all
lands, buildings, tenements, hereditaments, easements and rights-
of-way necessary to enable the Authority to complete the Project
in accordance with the plans.
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 redemption. For so long as any Bonds are
outstanding, the County shall pay to the Authority, at least 15
days before each Bond Payment Date, an amount sufficient to pay
the principal and/or interest due on the Bonds on such Bond
Payment Date.
The County hereby pledges its full faith and credit for the
payment of the cash rental when due and agrees that it will levy
each year such ad valorem taxes as shall be necessary for the
payment of such cash rental, which taxes, however, will be
subject to applicable constitutional and statutory limitations on
the taxing power of the County, and which shall not be in an
amount or at a rate exceeding that necessary to pay its
contractual obligation pursuant to this Lease. If the County, at
the time prescribed by law for the making of its annual tax levy,
shall have other funds on hand which have been set aside and
earmarked for payment of its obligations under this Lease for
which a tax levy would otherwise have to be made, then the tax
4
levy shall be reduced by the amount of such other funds. Such
other funds may be raised from any lawful source. The obligation
of the County to make such cash rental payments shall not be
subject to any set-off by the County nor shall there be any
abatement of the cash rental payments for any cause, including,
but not limited to, casualty that results in the Project being
untenantable.
8. Expenses of Issuing and Payment of Bonds. The
Authority shall pay from the proceeds of the sale of the Bonds
all expenses incurred with respect to the issuance of the Bonds.
The County agrees to pay to the Authority, in addition to the
cash rental provided for in Section 7, all expenses incurred with
respect to the issuance and payment of the Bonds, to the extent
not so paid from the proceeds from the sale of the Bonds. The
obligation of the County to make such payments shall be a general
obligation of the County.
9. Improvement Expenses of the County. Upon the sale of
the Bonds, the County shall give the Authority a full and
complete accounting of the improvement costs and expenses
incurred on or before that date by the County in connection with
the Project, and the Authority shall thereupon reimburse the
County for such costs and expenses to the extent that such costs
and expenses were included in the total cost of the Project to be
paid from Bond proceeds.
10. Maintenance and Repairs. The County shall, at its own
expense, operate and maintain the Project and shall keep the same
in good condition and repair. Operation and maintenance shall
include (but not be limited to) the providing of all personnel,
equipment and facilities, all light, power, heat, water,
sewerage, drainage and other utilities, and all properties and
services of whatever nature, as shall be necessary or expedient
in the efficient and lawful operation and maintenance of the
Project. Premiums for insurance required to be carried upon or
with respect to the Project or the use thereof and taxes levied
upon either party hereto on account of the ownership or use of
the Project, or on account of rentals or income from the Project,
shall likewise be deemed operation and maintenance
expenses. The obligation of the County to pay all costs and
expenses of the operation and maintenance of the Project shall be
a general obligation of the County.
11. Property Insurance and Insurance Proceeds. The County
shall provide, at its own expense, fire and extended coverage
insurance in an amount which is at least equal to the amount of
Bonds outstanding from time to time or to the amount of the full
replacement cost of the Project if that amount be less than the
amount of Bonds outstanding. Such insurance shall be payable to
the County and the Authority as their interests may appear and
shall be made effective from the date of commencing improvements
for the Project. In the event of the partial or total
destruction of the Project during or after improvement, or if the
5
Project is for any reason made unusable, the cash rental payments
provided in Section 7 shall continue unabated. The County shall
have the option to use the proceeds of insurance, in the event of
loss or damage to the Project, for the repair or restoration of
the Project. If the County shall determine not to use the
proceeds of insurance for the repair or restoration of the
Project, the amount of such insurance proceeds shall be paid to
the Authority and by it deposited in the bond and interest
redemption fund, and the County shall receive appropriate credits
on future cash rental payments due under this Lease.
12. Liability Insurance. The County is self insured or
will provide and maintain during the term of this Lease adequate
liability insurance protecting the County and the Authority
against loss on account of damage or injury to persons or
property, imposed by reason of the ownership, possession, use,
operation, maintenance or repair of the Project and the site of
the Project, or resulting from any acts of omission or commission
on the part of the County or the Authority or their respective
officers, employees or agents in the connection with the Project
and shall indemnify, hold harmless and defend the Authority, its
officers, employees or agents against any and all claims for any
such damage or injury. Such insurance shall be made effective
from the date improvement of the Project commences.
13. No Unlawful Use Permitted. The Project shall not be
used or permitted to be used in any unlawful manner or in any
manner which would violate the provisions of any contract or
agreement between the County or the Authority and any third
party. The County shall hold the Authority harmless and keep it
fully indemnified at all times against any loss, injury or
liability to any persons or property by reason of the use, misuse
or non-use of the Project or from any act or omission in, on or
about the Project. The County shall, at its own expense, make
any changes or alterations in, on or about the Project which may
be required by any applicable statute, charter, ordinance or
governmental regulation or order and shall save the Authority
haLialess and free from all costs or damages with respect thereto.
14. Alterations of Pro'ect. The County, in its sole
discretion, may install or construct in or upon, or may remove
from, the Project any equipment, fixtures or structures, and may
make any alterations to or structural changes in, the Project, as
the County may desire.
15. Right of Inspection. The Authority, through its
officers, employees or agents, may enter upon the Project at any
reasonable time during the term of this Lease for the purpose of
inspecting the Project and determining whether the County is
complying with the covenants, agreements, terms and conditions of
this Lease.
16. Contractual Rights of Bondholders. Inasmuch as this
Lease, and particularly the obligation of the County to make cash
6
rental payments to the Authority, provides the security for
payment of the principal of and interest on the Bonds, it is
hereby declared that this Lease is made for the benefit of the
holders from time to time of the Bonds as well as for the benefit
of the parties and that such holders shall have contractual
rights under this Lease. In the event of any default under
this Lease on the part of the County, the Authority and the
holders of the Bonds shall have all rights and remedies provided
by law, including in particular all rights and remedies provided
by Act 31. The parties further agree that they will not do, or
permit to be done, any act, and that this Lease will not be
amended in any manner, which would impair the security of the
Bonds or the rights of the holders of the Bonds. An amendment of
this Lease to authorize the issuance of additional Bonds and
providing the payment of additional cash rentals for the payment
of such Bonds shall not be deemed to impair the security of the
Bonds or the rights of the holders of the Bonds.
17. Appurtenant Facilities. The site on which this Project
is to be located includes, or will include, roadways, walks,
drives, parking areas and landscaping which are of benefit to and
necessary to the full use and enjoyment of the Project, and it is
hereby agreed that so long as any Bonds remain outstanding and
unpaid, such appurtenant facilities will be maintained in good
repair and condition by the County or by its lessees and
available to the users and occupants of the Project.
18. Successors and Assigns. This Lease shall inure to the
benefit of, and be binding upon, the respective parties hereto
and their successors and assigns, provided, however, that no
assignment shall be made in violation of the terms of this Lease
nor shall any assignment be made which would impair the security
of the Bonds or the rights of the holders of the Bonds.
19. Abandonment of Pro .ect. In the event the Bonds to
finance the Project cannot be or are not issued by the Authority
on or before December 31, 1992, the Project shall be abandoned,
the County shall pay from available funds all expenses of the
Authority incurred to the date of abandonment, and neither party
shall have any further obligations under this Lease.
20. Consents, Notices, Etc. The right to give any consent,
agreement or notice required or permitted in this Lease shall be
vested, in the case of the County, in its Board of Commissioners,
and in the case of the Authority, in its Commission. Any notice
required or permitted to be given under this Lease shall be given
by delivering the same, in the case of the County, to the County
Clerk, and in the case of the Authority, to any member of its
Commission.
21. Changes in Law or Corporate Status. In the event there
shall occur changes in the Constitution or statutes of the State
of Michigan which shall affect the organization, territory,
powers or corporate status of the County, the terms and
7
By:
4-1s16Oretary of its czoTam4-s-s-i-oi
El7K airp9rson,
the obligation of the County to make the cash rental payments is
concerned. The proceeds of any sale or other liquidation of any
interest of the County or the Authority in the Project are hereby
impressed with a first and prior lien for payment of any
outstanding Bonds or other obligations of the Authority incurred
by reason of the Project or any additions or improvements
thereto.
22. Effective Date of Lease. This Lease shall become
effective on the 46th day after publication of a Notice of
Intention in the , a newspaper published in
, Michigan, as required by Act 31, provided that
if a petition for a referendum is filed as provided in (and
meeting all requirements of) Section 8b of Act 31, then this
Lease shall not become effective unless and until approved by a
majority of the electors of the County voting thereon at a
general or special election.
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 to be signed by their duly
authorized officers, and their seals to be affixed hereto, all
as of the day and year first above written.
WITNESSES TO SIGNATURES OAKLAND COUNTY BUILDING AUTHORITY
OF AUTHORITY OFFICERS:
WITNESSES TO SIGNATURES COUNTY OF OAKLAND
OF COUNTY OFFICERS:
Board of Commissioners
11c.oakresap
8
STATE OF MICHIGAN
SS.
COUNTY OF OAKLAND
On this L day of --, -4A 0 , 199_, before me appeared &S&and .4 -Ammel , to me personally known,
who being by me duly sworn, di. each say that they are,
respectively, the Chairperson and the Secretary of the Commission
of the OAKLAND COUNTY BUILDING AUTHORITY and that the foregoing
Lease Contract was signed and sealed by them on behalf of the
Authority by authority of its Commission, and that such persons
acknowledged such instrument to be the free act and deed of the
Authority.
/in14tary Public, Oakland County, (Michigan
My Commission Expires: ad. -3
(Seal)
11c.OAKRESAP.doc
9
STATE OF MICHIGAN )
ss.
COUNTY OF OAKLAND )
On this7//4=1. day of , _19927 before me appeared
(-7/11/y b. ,'9L 47 ani L to me personally
known, who being by me duly sworn, did each say that they are,
respectively, the Chairperson of the Board of Commissioners and
the County Clerk of the COUNTY OF OAKLAND and that the foregoing
Lease Contract was signed and sealed by them on behalf of the
County by authority of its Board of Commissioners, and that such
persons acknowledged such instrument to be the free act and deed
of the County.
Notary Public, Oakland County,
Michigan
My Commission Expires:
(Seal)
J VIISCHivviN 'Notary Public
ornmisn Oakianci county, Micigan C..io E,7...);p es h
October 17. 1993
guest.OAKRESAP.doc
10
E A
to
LEASE CONTRACT
Description of Project
See Attached Appendix 1
Period of Usefulness of Project
More than 25 years.
PROJECT COSTS
TOTAL $17,000,000
maj
guest.OAERESAP.doc
Appendix 1 —
OAKLAND COUNTY EXECUTIVE
DEPARTMENT OF PUBLIC WORKS
FACILITIES ENGINEERING DIVISION
WEST WING EXTENSION
Project 91-16 September 17, 1991
in order to provide for the efficient administration of justice as
well as reduce the amount of money being spent on rented facilities, the
Ccunty Executive is proposing the construction of an extension to the
Wegt Wing. Such an extension would be located in the green belt that is
approimately 100 feet wide by 400 feet long located west of the West
Wing. The extension would have a basement and three floors above grade
and be the same height as the West Wing. In total, about 151,000 gross
square feet of space would be provided. The building would include areas
the Lib,raries, the Prosecutor, Corporation Counsel, and storage in
the basement. It would also provide a location for the Veterans'
Memorial. A more detailed description of the extension follows and a
PC;ELIMINARY cost estimate is attached.
1. Tile relocation of the Law Library into the new Extension is to
provde space for two additional judges. The timing of the new
judges may, however, require that the LAW Library be temporarily
housed elsewhere while tho Extension is being built. Details of
this•rossible temporary relocation are still in the planning stage
but will be presented to the Committee as a Capital Improvement
Program project at the appropriate time.
2. Relocation of the Reference- Library will provide some expansion
space for departments located in the Executive Office Building.
3. Relocation of Corporation Counsel's office will provide much needed
space for the Jury Assembly/Circuit Court Administration operations
already in the West Wing.
4. Returning the Prosecutor to the courthouse will obviate the need for
30,000 square feet of rental space.
c. A now 60,000 sq. ft. basement will provide relatively cheap, tlways
needed, storage space for court records.
• Tho location of the project will give us an opportunity to erect the
Veterans' Memorial at minimum coat in a convenient setting that is
accessible to all.
E AV IBIT B
to
LEASE CONTRACT
OAKLAND COUNTY BUILDING AUTHORITY
WEST WING BUILDING PROJECT
PRELIMINARY
PRINCIPAL SCHEDULE
DUE
APRIL 1, AMOUNT
1993 $ 300,000
1994 475,000
1995 525,000
1996 550,000
1997 575,000
1998 625,000
1999 650,000
2000 700,000
2001 750,000
2002 775,000
2003 825,000
2004 875,000
2005 950,000
2006 1,000,000
2007 1,050,000
2008 1,125,000
2009 1,200,000
2010 1,275,000
2011 1,350,000
2012 1,425,000
$17,000,000
APPENDIX II
NOTICE OF INTENTION OF T:: CO' Y OF OAK . 0
TO ENTER INTO A LEASE CONTRACT WITH HE
OAK . COUNTY BUILDING AUTHORITY 0 NOTICE
OF RIGHT TO PETITION FOR REFERENDUM THEREON
TO ALL ELECTORS AND TAXPAYERS OF
THE COUNTY OF OAKLAND:
NOTICE IS HEREBY GIVEN that the Board of Commissioners
of the County of Oakland, Michigan (the "County"), has
authorized the execution of a full faith and credit general
obligation lease contract (the "Lease") between the County
and the Oakland County Building Authority (the "Authority").
The Lease provides, among other things, for the
construction, reconstruction, remodelling, furnishing and
equipping of a 151,000 square foot, three story addition to
the Oakland County Courthouse Building at 1200 North
Telegraph Road, Pontiac, Michigan, including site
development (the "Project"). The Lease provides further
that the Authority will finance the total cost of the
Project by the issuance of building authority bonds (the
"Bonds") pursuant to the provisions of Act No. 31, Public
Acts of Michigan, 1948 (First Extra Session), as amended
("Act 31"), in anticipation of the receipt of cash rental
payments to be made by the County to the Authority pursuant
to the Lease. The maximum amount of Bonds to be issued
shall not exceed $17,000,000, the term of the Lease shall
not exceed 20 years and the Bonds shall bear interest at a
rate or rates that will result in a net interest cost of not
more than 10% per annum.
FULL FAITH . 0 CREDIT AND TAXING POWER OF
THE COUNTY OF OAKLAND KILL BE PLEDGED
NOTICE IS FURTHER GIVEN that in the Lease the County
will obligate itself to make cash rental payments to the
Authority in amounts sufficient to pay the principal of and
interest on the Bonds. The full faith and credit of the
County will be pledged for the making of such cash rental
payments. Pursuant to such pledge of its full faith and
credit, the County will be obligated to levy such ad valorem
taxes upon all taxable property in the County as shall be
necessary to make such cash rental payments, which taxes,
however, will be sublect to applicable statutory and
constitutional limitations on the taxing power of the
County. In addition to its obligation to make cash rental
payments, the County will agree in the Lease to pay all
costs and expenses of operation and maintenance of the
Project and all expenses of the Authority incidental to the
issuance and payment of the Bonds, to the extent such
expenses are not payable from the proceeds of the Bonds.
page i
APPENDIX II
RIGHT TO PETITION FOR REFERENDUM
NOTICE IS FURTHER GIVEN to the electors and taxpayers
of the County to inform them of the right to petition for a
referendum on the question of entering into the Lease. The
County intends to enter into the Lease without a vote of the
electors thereon, but the Lease shall not become effective
until 45 days after publication of this notice. If, within
such 45-day period, a petition for referendim requesting an
election on the Lease, signed by not less than 10% or 15,000
of the registered electors of the County, whichever is less,
has been filed with the County Clerk, the Lease shall not
become effective unless and until approved by a majority of
the electors of the County voting thereon at general or
special election.
This notice is given by order of the Board of
Commissioners pursuant to Act 31. Further information may
be obtained at the office of Lynn D. Allen, Oakland County
Clerk, Oakland County Building, Pontiac, Michigan 49201.
Lynn D. Allen
Oakland County Clerk
DATED: , 1991
maj
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page ii
• Resolution .0 7 91236 NOVEMBER 7, 1S91 . .
Moved by Caddell supported by McCulloch the 'resolution be adopted.
AYES: Pappageorge, Pernick, Price, Rewold, Schmid, Serra, Skarritt, Wolf,
Aaron, Bishop, Caddell, Crake, Ferrens, Gosling, Huntoon, Johnson, Law,
. McConnell, McCulloch, McPherson, Millard, Moffitt, Oaks, Olsen, Palmer. (25)
NAYS: Krause. (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, do hereby certify that the foregoing•
resolution is a true and accurate copy of a resolution adopted by the Oakland County
.Board of Commissioners on November 7 iggl with the on record thereof now FeibdihTii4-1-6 my oi=fice.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County
of Oakland at Pontiac, Michigan this 7th , day or) November 1991
Lynn Allen, County Clerk
APPENDIX I
LEASE CONTRACT
THIS FULL FAITH AND CREDIT GENERAL OBLIGATION LEASE CONTRACT
("Lease") made as of December 1, 1991, 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"),
ITNESSETH:
WHEREAS, the Authority has been incorporated by the County
pursuant to Act 31 for the purpose of acquiring, furnishing,
equipping, owning, improving, enlarging, operating and
maintaining a building or buildings, automobile parking lots or
structures, recreational facilities and stadiums, and the
necessary site or sites therefor, for the use of the County; and
WHEREAS, the County desires to undertake the extension of
the West Wing of the Oakland County Courthouse in Pontiac,
Michigan, by constructing and equipping an addition of
approximately 151,000 square feet (the "Project"), as more fully
described in EXHIBIT A to this Lease, and it is proposed that the
Authority undertake the Project; and
WHEREAS, it is proposed that the Authority finance the total
cost of the Project by the issuance of building authority bonds
payable from cash rental payments to be made by the County to the
Authority pursuant to this Lease and Act 31; and
WHEREAS, a description of the Project, and estimate of the
period of usefulness thereof and an estimate of the total cost of
the Project, all as set forth on EXHIBIT A to this Lease, have
been reviewed and approved by the Board of Commissioners of the
County; and
WHEREAS, in order to make possible the issuance of building
authority bonds to finance the total cost of the Project, it is
necessary under Act 31 for the parties to enter into this Lease;
THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS AND
AGREEMENTS SET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN
THE PARTIES TO THIS LEASE AS FOLLOWS:
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 authority bonds
in the aggregate principal amount of not to exceed $17,000,000,
(the "Bonds"), pursuant to and in accordance with provisions of
1
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 January 1, 1992 or the
first day of such earlier or later month as the Authority shall
approve in the resolution authorizing issuance of the Bonds (the
"Bond Resolution"), but not before December 1, 1991 or after
December 1, 1992. The Bonds shall bear interest at a rate or
rates that will result in a net interest cost not exceeding 10%
per annum. Interest shall be payable on each September 1 and
March 1, beginning on the date which shall be specified in the
Bond Resolution, and thereafter to maturity and shall mature in
accordance with the Debt Retirement Schedule set forth on EXHIBIT
B to this Lease. Each date on which any payment of principal of
and/or interest on any Bond is due is referred to herein as a
"Bond Payment Date." The Bonds may be payable on the first day
of a different month if necessary to match rental income paid to
the County.
The County and the Authority recognize and acknowledge that
(a) such Debt Retirement Schedule is based upon an assumed
interest rate and date of issuance of the Bonds and assumed Bond
Payment Dates, all as set forth in EXHIBIT B, (b) the Bond
Payment Dates and will be specified in the Bond Resolution, (c)
the date and amount of each payment of cash rental required under
this Lease will be determined (subject to the limitations
expressed in the preceding paragraph of this Section) when the
Bond Resolution is adopted by the Authority and the Bonds are
sold, by application of the rate or rates of interest (that will
result in a net interest cost not exceeding 12% annum) actually
borne by the Bonds.
The Bonds may be sold subject to redemption prior to
maturity at the option of the Authority with such redemption
premiums and upon such terms as shall be set forth in the Bond
Resolution.
Upon receipt of the proceeds of the sale of the Bonds, all
premium, capitalized interest, 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 an improvement
fund, each of which shall be established by the Bond Resolution
and maintained as a separate depository account of the Authority.
The money in the improvement fund shall be used to pay costs of
the Project, and upon payment of all such costs, any excess money
in the improvement fund will be used as provided in Section 4.
In the event that for any reason after the date upon which
this Lease is executed, but before the Bonds have been issued, it
appears to the County and the Authority that the Project to be
paid by Bond proceeds can be constructed for less than
$17,000,000, or the County shall be able to make payment in
2
advance on the cash rental payments payable pursuant to this
Lease, the Authority may reduce the amount of bonds to be issued
in multiples of $5,000 and reduce the annual maturities or the
years of maturities as the County shall direct.
2. Transfer of Title to and Completion of Prolect. As
soon as practicable after the Bonds have been sold, the County
shall transfer title to the Project to the Authority, and the
Authority shall commence the Project. The plans, cost estimate
and estimated period of usefulness for the Project, all of which
have been filed with the County Clerk and the Secretary of the
Authority, are hereby approved and adopted. The Project shall be
implemented in substantial accordance with such plans which are
incorporated as part of (but not attached to) this Lease. No
major changes in such plans shall be made without the written
approval of both the County and the Authority.
3. Increased Prolect Costs. In the event that it shall
appear, upon taking the necessary bids for the improvement of the
Project and after issuance of the Bonds, that the Project cannot
be completed at the estimated cost, the Authority shall
immediately so notify the County. The County may elect to pay
the increased cost in cash to the Authority in which event the
amount of such cash payment shall be deposited in the improvement
fund for the Project and the Authority shall proceed to construct
and complete the Project. In the alternative, the County and the
Authority may agree, by an amendment to this Lease, that
additional Bonds shall be issued by the Authority in an amount
sufficient to pay the increased Project costs. If, after the
sale and issuance of the bonds, it shall become necessary to
raise additional funds to pay for an increase in the Project
costs and this Lease cannot be amended to provide for the
issuance of additional bonds, or if for any other reason
additional Bonds cannot be issued, the County shall pay to the
Authority in cash an amount which will be sufficient to enable
the Authority to complete the Project in accordance with the
plans of the Project.
4. Funds Remaining After Completion. Any unexpended
balance of the proceeds of the sale of the Bonds remaining after
completion of the Project may be used to improve or enlarge the
Project or for other projects of the Authority provided that such
use of the funds in the improvement fund has been approved by the
Municipal Finance Division of the Michigan Department of
Treasury, if necessary, and the County. Any unexpended balance
not so used shall be paid into the bond and interest redemption
fund, and the County shall receive a credit against the cash
rental payments next due under this Lease to the extent of the
moneys so deposited in the manner provided in the Bond
Resolution.
5. Insurance Requirements During Improvement. The
Authority shall require the contractor or contractors for the
Project to furnish all necessary bonds guaranteeing performance
3
and all labor and material bonds and all owner's protective,
workers' compensation and liability insurance required for the
protection of the Authority and the County. Such bonds and
insurance, and the amounts thereof, shall be subject to approval
of the County on the advice of its counsel. The Authority also
shall require a sufficient fidelity bond from any person handling
funds of the Authority.
6. Lease Term* Possession7 Reconve ance. (a) The
Authority does hereby lease the Project to the County for a term
commencing on the effective date of this Lease (determined as
provided in Section 22) and ending on September 1, 2014, or such
earlier or later date as the principal of and premium, if any,
and interest on the Bonds, the fees and expenses of the paying
agent for the Bonds and all amounts owing hereunder have been
paid in full, but in any event the term of this Lease shall not
exceed 50 years. Possession of the Project shall vest in the
County upon the execution of the Lease. At the end of the term
of this Lease, the Authority shall convey to the County all of
its right, title and interest in and to the Project and any
lands, easements or rights-of-way appertaining thereto, and upon
such conveyance, this Lease shall terminate, and the Authority
shall have no further interest in, or obligations with respect
to, the Project.
(b) The County shall, upon the terms and conditions
set forth in this Lease, acquire and convey to the Authority all
lands, buildings, tenements, hereditaments, easements and rights-
of-way necessary to enable the Authority to complete the Project
in accordance with the plans.
7. Cash Rental* Pled.e 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 redemption. For so long as any Bonds are
outstanding, the County shall pay to the Authority, at least 15
days before each Bond Payment Date, an amount sufficient to pay
the principal and/or interest due on the Bonds on such Bond
Payment Date.
The County hereby pledges its full faith and credit for the
payment of the cash rental when due and agrees that it will levy
each year such ad valorem taxes as shall be necessary for the
payment of such cash rental, which taxes, however, will be
subject to applicable constitutional and statutory limitations on
the taxing power of the County, and which shall not be in an
amount or at a rate exceeding that necessary to pay its
contractual obligation pursuant to this Lease. If the County, at
the time prescribed by law for the making of its annual tax levy,
shall have other funds on hand which have been set aside and
earmarked for payment of its obligations under this Lease for
which a tax levy would otherwise have to be made, then the tax
4
levy shall be reduced by the amount of such other funds. Such
other funds may be raised from any lawful source. The obligation
of the County to make such cash rental payments shall not be
subject to any set-off by the County nor shall there be any
abatement of the cash rental payments for any cause, including,
but not limited to, casualty that results in the Project being
untenantable.
8. E..,-Jenses of Issuing and Payment of Bonds. The
Authority shall pay from the proceeds of the sale of the Bonds
all expenses incurred with respect to the issuance of the Bonds.
The County agrees to pay to the Authority, in addition to the
cash rental provided for in Section 7, all expenses incurred with
respect to the issuance and payment of the Bonds, to the extent
not so paid from the proceeds from the sale of the Bonds. The
obligation of the County to make such payments shall be a general
obligation of the County.
9. Improvement Expenses of the County. Upon the sale of
the Bonds, the County shall give the Authority a full and
complete accounting of the improvement costs and expenses
incurred on or before that date by the County in connection with
the Project, and the Authority shall thereupon reimburse the
County for such costs and expenses to the extent that such costs
and expenses were included in the total cost of the Project to be
paid from Bond proceeds.
10. Maintenance and Repairs. The County shall, at its own
expense, operate and maintain the Project and shall keep the same
in good condition and repair. Operation and maintenance shall
include (but not be limited to) the providing of all personnel,
equipment and facilities, all light, power, heat, water,
sewerage, drainage and other utilities, and all properties and
services of whatever nature, as shall be necessary or expedient
in the efficient and lawful operation and maintenance of the
Project. Premiums for insurance required to be carried upon or
with respect to the Project or the use thereof and taxes levied
upon either party hereto on account of the ownership or use of
the Project, or on account of rentals or income from the Project,
shall likewise be deemed operation and maintenance
expenses. The obligation of the County to pay all costs and
expenses of the operation and maintenance of the Project shall be
a general obligation of the County.
11. Property Insurance and Insurance Proceeds. The County
shall provide, at its own expense, fire and extended coverage
insurance in an amount which is at least equal to the amount of
Bonds outstanding from time to time or to the amount of the full
replacement cost of the Project if that amount be less than the
amount of Bonds outstanding. Such insurance shall be payable to
the County and the Authority as their interests may appear and
shall be made effective from the date of commencing improvements
for the Project. In the event of the partial or total
destruction of the Project during or after improvement, or if the
5
Project is for any reason made unusable, the cash rental payments
provided in Section 7 shall continue unabated. The County shall
have the option to use the proceeds of insurance, in the event of
loss or damage to the Project, for the repair or restoration of
the Project. If the County shall determine not to use the
proceeds of insurance for the repair or restoration of the
Project, the amount of such insurance proceeds shall be paid to
the Authority and by it deposited in the bond and interest
redemption fund, and the County shall receive appropriate credits
on future cash rental payments due under this Lease.
12. Liability Insurance. The County is self insured or
will provide and maintain during the term of this Lease adequate
liability insurance protecting the County and the Authority
against loss on account of damage or injury to persons or
property, imposed by reason of the ownership, possession, use,
operation, maintenance or repair of the Project and the site of
the Project, or resulting from any acts of omission or commission
on the part of the County or the Authority or their respective
officers, employees or agents in the connection with the Project
and shall indemnify, hold harmless and defend the Authority, its
officers, employees or agents against any and all claims for any
such damage or injury. Such insurance shall be made effective
from the date improvement of the Project commences.
13. No Unlawful Use Permitted. The Project shall not be
used or permitted to be used in any unlawful manner or in any
manner which would violate the provisions of any contract or
agreement between the County or the Authority and any third
party. The County shall hold the Authority harmless and keep it
fully indemnified at all times against any loss, injury or
liability to any persons or property by reason of the use, misuse
or non-use of the Project or from any act or omission in, on or
about the Project. The County shall, at its own expense, make
any changes or alterations in, on or about the Project which may
be required by any applicable statute, charter, ordinance or
governmental regulation or order and shall save the Authority
harmless and free from all costs or damages with respect thereto.
14. Alterations of Project. The County, in its sole
discretion, may install or construct in or upon, or may remove
from, the Project any equipment, fixtures or structures, and may
make any alterations to or structural changes in, the Project, as
the County may desire.
15. Right of Inspection. The Authority, through its
officers, employees or agents, may enter upon the Project at any
reasonable time during the term of this Lease for the purpose of
inspecting the Project and determining whether the County is
complying with the covenants, agreements, terms and conditions of
this Lease.
16. Contractual Rights of Bondholders. Inasmuch as this
Lease, and particularly the obligation of the County to make cash
rental payments to the Authority, provides the security for
payment of the principal of and interest on the Bonds, it is
hereby declared that this Lease is made fo7:7 the benefit of the
holders from time to time of the Bonds as well as for the benefit
of the parties and that such holders shall have contractual
rights under this Lease. In the event of any default under
this Lease on the part of the County, the Authority and the
holders of the Bonds shall have all rights and remedies provided
by law, including in particular all rights and remedies provided
by Act 31. The parties further agree that they will not do, or
permit to be done, any act, and that this Lease will not be
amended in any manner, which would impair the security of the
Bonds or the rights of the holders of the Bonds. An amendment of
this Lease to authorize the issuance of additional Bonds and
providing the payment of additional cash rentals for the payment
of such Bonds shall not be deemed to impair the security of the
Bonds or the rights of the holders of the Bonds.
17. Appurtenant Facilities. The site on which this Project
is to be located includes, or will include, roadways, walks,
drives, parking areas and landscaping which are of benefit to and
necessary to the full use and enjoyment of the Project, and it is
hereby agreed that so long as any Bonds remain outstanding and
unpaid, such appurtenant facilities will be maintained in good
repair and condition by the County or by its lessees and
available to the users and occupants of the Project.
18. Successors and Assigns. This Lease shall inure to the
benefit of, and be binding upon, the respective parties hereto
and their successors and assigns, provided, however, that no
assignment shall be made in violation of the terms of this Lease
nor shall any assignment be made which would impair the security
of the Bonds or the rights of the holders of the Bonds.
19. Abandonment of Prolect. In the event the Bonds to
finance the Project cannot be or are not issued by the Authority
on or before December 31, 1992, the Project shall be abandoned,
the County shall pay from available funds all expenses of the
Authority incurred to the date of abandonment, and neither party
shall have any further obligations under this Lease.
20. Consents, Notices, Etc. The right to give any consent,
agreement or notice required or permitted in this Lease shall be
vested, in the case of the County, in its Board of Commissioners,
and in the case of the Authority, in its Commission. Any notice
required or permitted to be given under this Lease shall be given
by delivering the same, in the case of the County, to the County
Clerk, and in the case of the Authority, to any member of its
Commission.
21. Changes in Law or Corporate Status. In the event there
shall occur changes in the Constitution or statutes of the State
of Michigan which shall affect the organization, territory,
powers or corporate status of the County, the terms and
7
provisions of this Lease shall be unaffected thereby insofar as
the obligation of the County to make the cash rental payments is
concerned. The proceeds of any sale or other liquidation of any
interest of the County or the Authority in the Project are hereby
impressed with a first and prior lien for payment of any
outstanding Bonds or other obligations of the Authority incurred
by reason of the Project or any additions or improvements thereto.
22. Effective Date of Lease. This Lease shall become
effective on the 46th day after publication of a Notice of
Intention in the , a newspaper published
in , Michigan, as required by Act 31, provided
that if a petition for a referendum is filed as provided in (and
meeting all requirements of) Section 8b of Act 31, then this Lease
shall not become effective unless and until approved by a majority
of the electors of the County voting thereon at a general or
special election.
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 to be signed by their duly
authorized officers, and their seals to be affixed hereto, all as
of the day and year first above written.
WITNESSES TO SIGNATURES OAKLAND COUNTY BUILDING AUTHORITY
OF AUTHORITY OFFICERS:
BY:
Chairman of its Commission
BY:
Secretary of its Commission
WITNESSES TO SIGNATURES COUNTY OF OAKLAND
OF COUNTY OFFICERS:
BY:
Chairman, Board of Commissioners
BY:
County Clerk
APPROVED BY:
Daniel T. Murphy, County Executive
8
EXHIBIT A
to
LEASE CONTRACT
Description of Proiect
See Attached Appendix 1
Period of Usefulness of Project
More than 25 years.
PROJECT COSTS
TOTAL $17,000,000
maj
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DESCRIPTION OF BUILDING AUTHORITY PKUJEC
Appendix 1
OAKLAND COUNTY EXECUTIVE
DERARTMENT OF PUBLIC WORKS
FACILITIES ENGINEERING DIVISION
WEST WING EXTENSION
Project 91 -1&. September 17, 1991
In order to provide for the efficient administration of justice as
well as reduce the amdunt of money being spent on rented facilities, the
County Executive is proposing the construction of an extension to the
West Wing. such an extension would be located in the green belt that is
approximately 100 feet wide by 400 feet long located west of the West
Wing. The extension would have a basement and three floors above grade
and be the same height as the West Wing. In total, about 151,000 gross
square feet of space would be provided. The building would include areas
for the Libraries, the Prosecutor, Corporation Counsel, and storage in
the basement. It would also provide a location for the Veterans'
Memorial. A more detailed description of the extension follows and a
PI-ELIMINARY cost estimate is attached.
1. Tho relocation of the Law Library into the new Extension is
pl:ovde space for two additional judges. The timing of the new
judges may, however, require that the Law Library be temporarily
housed elsewhere while the Extension is being built. Details of
this poesible temporary relocation are still in the planning stage
but will be presented to the Committee as a Capital Improvement
Program project at the appropriate time.
to
Appendix 1 page 2
2. Relocation of the Reference Library will provide some expansion
space for departments located in the Executive Office Building.
3. Relocation of Corporation Counsel's office will provide much needed
space for the Jury Assembly/Circuit Court Administration operations
already in the West Wing.
4. Returning the Prosecutor to the Courthouse will obviate the need for
30,000 square feet of rental Space.
5. A new 40,000 sq. ft. basement will provide re]atively cheap, always
needed, storage space for court records.
6. Tho location of the project will give us an opportunity to erect the
Veterans' memorial at minimum cost in a convenient setting that is
accessible to all.
IBIT
to
LEASE CONT*,CT
OAMAND COUNTY BUILDING LUTHORITY
WEST WING BUILDING PROJECT
PRELIMINARY
PRINCIPAL SCHEDULE
DUE
APRIL 1,
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
$ 300,000
475,000
525,000
550,000
575,000
625,000
650,000
700,000
750,000
775,000
825,000
875,000
950,000
1,000,000
1,050,000
1,125,000
1,200,000
1,275,000
1,350,000
1,425,000
$17,000,000
APPENDIX II
NOTICE OF INTENTION OF THE COUNTY 02 0
TO ENTER INTO A LEASE CONTRACT WI.H THE
OAKLAND COUNTY BUILDING AUTHORITY AND NOTICE
OF RIGHT TO PETITION FOR REFERENDUM THEREON
TO ALL ELECTORS AND TAXPAYERS OF
THE COUNTY OF OAKLAND:
NOTICE IS HEREBY GIVEN that the Board of Commissioners
of the County of Oakland, Michigan (the "County"), has
authorized the execution of a full faith and credit general
obligation lease contract (the "Lease") between the County
and the Oakland County Building Authority (the "Authority").
The Lease provides, among other things, for the
construction, reconstruction, remodelling, furnishing and
equipping of a 151,000 square foot, three story addition to
the Oakland County Courthouse Building at 1200 North
Telegraph Road, Pontiac, Michigan, including site
development (the "Project"). The Lease provides further
that the Authority will finance the total cost of the
Project by the issuance of building authority bonds (the
"Bonds") pursuant to the provisions of Act No. 31, Public
Acts of Michigan, 1948 (First Extra Session), as amended
("Act 31"), in anticipation of the receipt of cash rental
payments to be made by the County to the Authority pursuant
to the Lease. The maximum amount of Bonds to be issued
shall not exceed $17,000,000, the term of the Lease shall
not exceed 20 years and the Bonds shall bear interest at a
/-AtP or rates that will result in a net interest cost of not
more than 10% per annum.
FULL FAITH AND CREDIT AND TAXING POWER OF
THE COUNTY OF OAKLAND WILL BE PLEDGED
NOTICE IS FURTHER GIVEN that in the Lease the County
will obligate itself to make cash rental payments to the
Authority in amounts sufficient to pay the principal of and
interest on the Bonds. The full faith and credit of the
County will be pledged for the making of such cash rental
payments. Pursuant to such pledge of its full faith and
credit, the County will be obligated to levy such ad valorem
taxes upon all taxable property in the County as shall be
necessary to make such cash rental payments, which taxes,
however, will be subject to applicable statutory and
constitutional limitations on the taxing power of the
County. In addition to its obligation to make cash rental
payments, the County will agree in the Lease to pay all
costs and expenses of operation and maintenance of the
Project and all expenses of the Authority incidental to the
issuance and payment of the Bonds, to the extent such
expenses are not payable from the proceeds of the Bonds.
page i
APPENDIX II
RIGET TO PETITION roa REFERENDUE
NOTICE IS FURTHER GIVEN to the electors and taxpayers
of the County to inform them of the right to petition for a
referendum on the question of entering into the Lea3e. The
County intends to enter into the Lease without a vote of the
electors thereon, but the Lease shall not become effective
until 45 days after publication of this notice. If, within
such 45-day period, a petition for referendum requesting an
election on the Lease, signed by not less than 10% or 15,000
of the registered electors of the County, whichever is less,
has been filed with the County Clerk, the Lease shall not
become effective unless and until approved by a majority of
the electors of the County voting thereon at general or
special election.
This notice is given by order of the Board of
Commissioners pursuant to Act 31. Further information may
be obtained at the office of Lynn D. Allen, Oakland County
Clerk, Oakland County Building, Pontiac, Michigan 49201.
Lynn D. Allen
Oakland County Clerk
DATED: , 1991
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page ii
Resolution # NOVEMBER 7; 1S91
Moved by Caddell supported by McCulloch the -resolution be adopted.
AYES: Pappageorge, Pernick, Price, Rewold, Schmid, Serra, Skarritt, Wolf,
Aaron, Bishop, Caddell, Crake, Ferrens, Gosling, Huntoon, Johnson, Law,
• McConnell, McCulloch, McPherson, Millard, Moffitt, Oaks, Olsen, Palmer. (25)
NAYS: Krause. (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, do hereby certify that the foregoing .
resolution is a true and accurate copy of a resolution adopted by the Oakland County
.Board of Commissioners on November 7 7091
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County
of Oakland at Pontiac, Michigan this 7th ' day af—j November 2, 1991
Lynni0. Allen, County Clerk
CERTIFICATE OF EXPIRATION
OF REFERENDUM PERIOD
STATE OF MICHIGAN)
) ss.
COUNTY OF OAKLAND)
Lynn D. Allen, being first duly c;worn, deposes and says
that he is the County Clerk of the County of Oakland,
Michigan; that the attached Notice of Intention of the
County of Oakland to Enter Into a Lease Contract and Notice
of Right to Petition for Referendum thereon was published in
the Oakland Press on November 18, 1991 and the Daily
Tribune, Royal Oak, Michigan on November 18, 1991; that 45
days or more have elapsed since such publication; and that
during such 45 day period, no petition for such referendum
was filed in my office as County Clerk.
7,
7},
Lynn-D. Allen
Oak14nd County Clerk
Subscribed and sworn to before
me this day of , 1992.
Notary T?ubliC, Oakland County
State of Michigan
My Commission Expires: /6-//,3
scl.oak-ref
publication of said 90ice were......,..............•-77 •••—; i
/
••••••••••?Se,:asae•00 ,99••••• .a .nWf..1; .............................................
if
Subscribed a nd sworn to before me this day of
wt.?"'
NOTARY PURLIC, OAKLAND COUNTY, MICHIGAN
/ '91 NM 26 A 8 :37
BY
County of Oakland, ss. STATE OF MICHIGAN,
deilses and says that I am
THE OAKLAND PRESS, a newspaper printed and ekrculated
daily in Oakland County, Michigan, and-that I held suct{ position
during the publicat)yn of the notice hereto annexed; that a notice
of which the annexed notice is a true copy, was published in the
said OAKLAND PRESS ....... ............... ........ ......
....................................immediately preceding the
.of ..... that the annexed printed copy of said notice
Wa's taken from the said newspaper. That the dates of
beinqduysworn, LEE Lai GOUY LI FlidC _
Nit," -rts.‘,IGn Expir(i.s
yrtri D. Allen
-fakiand County Clerk
DATED: November 16, 1
i\JOD
%WD CREDiT AND TAX
HE COUNTY OF OAKLA
LL BE PLEDGI
GIVEN that in the Lea;e the County will
„ meke cash rent& payments to the
' nt to pay the princ000l of and intere!, c e Pr
: dit of the Coonty will be pH
rental o' Pursuant to
fu ii u oc:11 me Coto , be obligated to I 1 O. at
:oil o.-o-ool t...o.-o.ofents,
•,.r.i costs an ,,.- ,-..oe'enses of
i rf...foiFct
and ell .....; t.,...Hoos of thE ; . • I ood payment of .,,ioe Oootds, to too
able from the procuofo. oc„. thc L .-
V.
tots coo. osfe,
rity incidentot issuanco
oot such expen ...oe aft not poy-
APF;D!X Ii
NOTICE OF INTENTION OF THE
OUNTY OF OAKLAND TO ENTER IN'
A LEASE CONTRACT WITH THE
OAKLAND COUNTY BUILDING
AUTHORITY AND NOTICE OF RIGHT
PETITION FOR REFERENDUM THEREC
TO ALL ELECTORS AND TAXPAYERS OF
THE COUN' F OAKLAND:
RIGHT TO PETITION FOR REFER 4DUM
r L IVEN to the elt,o.toN and tax;o•roors of the
tiym of theright oi oo•,o;loo. for a C000.adLt.,
oing into thc Count,' ir,o_oo°: to ‘ereilet -
e, vote of thereon, !out the Lease
otvo until C:4=3I publication of this
ror00 00 voo,o;H du.y ç ioo-Olon for referendum re-
i0-1(T.'; by not less than 10% or, ;1
15,000 o; o'oroiors of the County, whichever is less,
has been filed with IL Ccuy Clerk, the Lease shall not become ef-
fective unless and unti - apaved by a moiority of the electors of the
County voting thereon at general or special election.
This notice i:, !.2y order of the Board of Commissioners pur-
suant to Act 31. Farther information may be obtained at the office
of Lynn D. Allen, Oakland County Clerk, Oakland County Building,
ontiac, Michigan 48341.
; of Commissioners c
": fumy"), his authorize'
no crea. i-,1cmeral lease car
th- County and Vdand Cc
117
t three )i
cd ,r,!kkciuz, at
indudiniz Ate
ie
'rther
is of building
-,visions of Act No
max;ooLoi.
$17,000,00fo t terio of oose si.oli 11'3'; exceed 20 years
' the Bonds shall bear interest c a rate or rates that will result
net interest cost of not more than 10% per annum.
1 ,oer
redo,-
-; `,e Lease,
shun not ex
i 1 lorem tcw,as upon all taxable property in the County as shall lac
cessary to make such cash rental payments, which taxes, how
will be subiect to applicable statutory and constitutioroll on ita . ,
'UL
APPENDIX II
NOTICE OF INTENTION OF THE
OUNTY OF OAKLAND TO ENTER INTO
A LEASE CONTRACT WITH THE
OAKLAND COUNTY BUILDING
AUTHORITY AND NOTICE OF RIGHT TO
PETITION FOR REFERENDUM THEREON
0 ALL ELECTOR'S AND TAXPAYERS OF
E COUNT! OF OAKLAND:
only"), the I
-dfaith c,, ,ieneral obligaJr.
Lease") bet' ,-- C„unty 7rid he Oa, County
,ority (the "Authority"). :lc I -ase pro. mang
itruction, P
sior
unly Coonhouse BuiLnç 12 or
Pontiac, Michigan, including site ekp
. The Lease pr.,,i ,:).es ito -:'ner that the
al r2ct if the P suance at+
bonds (th: ')pu, -
C ;;;:t. ;,4 6 (hisi r.x;ra or ded
31"), in ai of the recr..iipt f cos. 7":f:tal payments to
mH by the Cr.- .mty to the Authority pursuant to the Lease. The
ituiium amount of Bonds to be issued shall not exceed
$17,00,000, the term of the Lease shall not exceed 10 years and
the bonds shall bear interest at a rate or rates that will result in a
et interest cost of not more than 10% per annum.
AND CREDIT AND TAXING
THE COUNTY OF OAKLAND
'HILL BE PLEDGED
,-:OTICE IS FURTHER GIVEN that in the Lease the County will ob-
: ii7:-fle itself to make cash rent& payments to the Authority in
Tiounts sufficient to pay the of and interelit -:, the Bonds.
Vo foil and credit of .pity Lvflie a: d £7'r the
mcKintti ts:tu rash rental payn, eursuant to sr; piuege of its _
hi iith ond credit, the County mil be obligated to levy such ad va-
lorem taxes upon all taxable property in the County as shall be ne-
! cessary to Mae such cash rental payments, which taxes, however,
will be subiect to applicable statutory and constituti ,-ral limitations
rd of Commissicm ::: the ',31Vf,'„1"4, T.,(,-..rd of Commissiof,-N,- the
STEPHANIE SCHRC,
Chief Deputy County
858-0586
SUE PAY NE
Chief Deputy Register
858-0610
.,-
RICHARD A. ELLIOTT
DEPUTY CLERK — REGISTER
858-0561
JANET F. STICKLEY
Director of Elections
858-0563
IN D. AL1.1.:N
OLKLAND COUNTY CLERK — REGISTER OF DEEDS
PONTIAC, MICHIGAN 48341-0413
858-0560
November 12, 1991
The Daily Tribune
Attn: Linda Addis
210 E. Third
Royal Oak, MI 48067
Dear Linda:
Please publish the enclosed "NOTICE OF INTENTION OF THE
COUNTY OF OAKLAND TO ENTER INTO A LEASE CONTRACT WITH
THE OAKLAND COUNTY BUILDING AUTHORITY AND NOTICE OF
RIGHT TO PETITION FOR REFERENDUM THEREON" on Monday,
November 18, 1991.
The notice should be a display advertisement 114 page in
size.
As requested in our phone conversation, please fax us a
copy of the ad before publishing for us to proof. (FAX
number is 858-1533)
Please charge to the account of the Oakland County Clerk
and send two (2) tear sheets and two (2) Affidavits to
the attention of Becky Wischman in the County Clerk's
Office.
Sincerely,
Lynn D. Allen, County Clerk
By Becky Wischman,
Deputy Clerk
Phone - 858-0566
Attached: Notice
APPENDIX II
- NOTICE OF INTENTION OF THE COUNTY OF OAKLAND
TO ENTER INTO A LEASE CONTRACT WITH THE
OAKLAND COUNTY BUILDING AUTHORITY AND NOTICE
OF RIGHT TO PETION FOR REFERENDUM THEREON
TO ALL ELECTORS AND TAXPAYERS OF
THE COUNTY OF OAKI TO:
NOTICE IS HElen.le.' that the Board of Cemnissioners
of the County of 0nd, Michigan (the "Ceenv"), has
autln.e:iee! the execution of a full faith and eeedlt geeeeal
oblieon lease contract (the "Lease") between the C.(_eey .
and The Oakland County Building Authority (the "Authori -L±').
The Lease provides, among other things, for the
construction, reconstruction, remodelling, furnishing and
equipping of a 151,000 square foot, three story addition to
the Oakland ,CeInty Cee.rthouse Building at 1200 North
Telegraph Pd, Pontac, Michigan, including site
development (':7,e "Preeet"). The Lease provides further
that the Authority will firence the total enee of the
Project by the issuance of :lding authority Londs (the
"Bonds") pureuan'n to the proeisions of Act No. 31, Public
Acts of Michigan, 1943 (First. Extra Session), as amended
("Act 31"), in anticipation of the receipt of cash rental
payments to be made by the County to the Authority iAursuent
to the Lease. The mat. amennt of Bolide ne iee.end
shall not eYce ,...- $17,090000, tne term of tn.e Leaee
not exceed 20 nea:cs and t_le Bone shall beaT interest at a
rate or rates t .nat will result in a net interest cost of not
more than 10% per annum.
FULL FAITH AND CREDIT AND TAXING POWER OF
THE COUNTY CF OAKLAND WILL LE PLEDGED
NOTICE IS FURTHER GIVEN' that in the I the County
will obligate itself to make cash rental ents to the
Authority in amounts sufficient to pay the anel of and
interest on the Bonds. . The fell faith -erA.:'t of the
Counte , will be p1e10 for the -,i-ta_of , n 2
pn--Teis. Pursuant to such pl ,, of its 'ill
credit, the County will be obligete,.z to levy such ad v
taxes upon all tax;ODle property 711 the County as
necessary to mak , el a cash ,L peynents, whi-
however will statue
constitutional Li' 't -tions en , mg power
County. In additicel to its ohli: Lion to make cash le.eal
payments, the County will agree in the Lease to pay all
costs and expenses of operation and maintenance of the
Project and all expenses of the Authority incidental to the
issuance and payment of the Bonds, to the extent such
expenses are not payable from the proceeds of the Bonds.
AP;-;MIX II
HT TO PETITION roR REFE:NDUM
NOTICE IS FURTHER GIVE the
of the County to inform the the for a
referendum on t1-1: tion of intering The
County ,7-r int- the Lease without a vote of the
electors r-ase shall :lot become effective
until 45 c,.s '.,1 77 -7on of th Tf, within
such 45-da,'' pe 'it'Hin for re-reyc an
election on thc_ -igned by not leE',s cf- 15,000
of the registered of the County, irber is less,
has been filed with the County Clerk, the Lease shall not
become effective unlc.L:z and until approved by a majority of
the electors of the County voting thereon at general or
special election.
This noticc, is given by order of the Board of
Commissioners pursuant to Act 31. Fue_ information may
be obtained at the. office of Lynn D. Allen, Oakland County
Clerk, Oakland County Building, Pontiac, Michigan 49201.
ri D. Allen
akland County Clerk
DATED: November 18 1991
IN CASE OF TRANSMISSION ERROR
CALL (313) 469-4510
11/15/91 12:00 234313 469 4846 ADAMS CLASSIFIED O.C. ELECTIONS a001/002
,
STHE MACOMB DAILY
III THE DAILY TRIBUNE
im SUBURBAN SUNDAY
• THE ADVISOR
THE SOURCE
ADAMS PUBUSHINO OOOICN
FACSIMILE COVER SPEET Fax Phone (313) 469-4846
Date' 1)7/5 /1/
To:
Qr-' ecl-Ly Wj kc4 ,91 1 -7
No. of Pages Including Cover Sheet'
AN" 13 m s PtIBLISMINO CORPORATION 11•111mEnt 7,----7 -7-T-g"4"—As,:
67 is Avenue
P.O. 661101
Mount Clement. Michigan 46046
'/'.5/91 12:01 /T313 469 4846 ADAMS CLASSIFIED 0. C. ELECTIONS 002/002
dtm1-1118 w °Aland County
APPENDIX II
NOTICE OF INTENTION OF THE COUNTY Uf. OAKLAND
TO ENTER INTO A LEASE CONTRACT WITH THE
OAKLAND COUNTY BUILDING AUTHORITY AND NOTICE
OF RIGHT TO PETITION FOR REFERENDUM THEREON
0 ALL ELECTORS AND TAXPAYERS OF
THE COUNTY OF OAKLAND:
NOTICE IS HEREBY GIVEN that the Board of Commissioners of the County of Oakland,
Michigan (the "County"), has authorized the execution of a full faith and credit gen-
eral obligation lease contract (the 'lease") between the County and the Oakland
County Building Authority (the "Authority"), The Lease provides, among other things,
for the construction, reconstruction, remodelling, furnishing and equipping of a
151,000 square foot, three story addition to the Oakland County Courthouse Building
at 1200 North Telegraph Road, Pontiac, Michigan, including site development (the
"Project"), The Lease provides further that the Authority will finance the total cost of
the Project by the Issuance of building authority bonds (the "Bonds") pursuant to the
provisions of Act No, 31, Public Acts of Michigan, 1948 (First Extra Session), as
amended ("Act 31"), In anticipation of the receipt of cash rental payments to be
made by the County to the Authority pursuant to the Lease, The maximum amount of
Bonds to be Issued shall not exceed $17,000,000, the term of the Lease shall not ex-
ceed 20 years and the Bonds shall bear Interest at a rate or rates that will result in a net
interest cost of not more than 10% per annum.
FULL FAITH AND CREDIT AND TAXING POWER OF
THE COUNTY OF OAKLAND WILL BE PLEDGED ccis ca5 OcrY IrWewnPtcsi 1.51)i iV A t) ttyPA b?RilrirriurifiaKt itt l 'aViR8 11:51'r iVicet 6166`h 8
interest on the Bonds. The full faith and credit of the County will be pledged for the
making of such cash rental payments. Pursuant to such pledge of its full faith and
credit, the County will be obligated to levy such ad valorem taxes upon all taxable
property in the County as shall be necessary to make such cash rental payments,
which taxes, however, will be subject to applicabk stcliutory and constitutional limi-
tations on the taxing power of the County. in addition to its obligation to make cash
rental payments, the County will agree In the Lease to pay all costs and expenses of
operation and maintenance of the Project and all expenses of the Authority inciden-
tal to the issuance and payment of the Bonds, to the extent such expenses are not
BUILDING AREA FOR NEW WEST WING
Beginning at the S. W. corner of the existing West Wing of the
Oakland County Courthouse, said corner having a coordinate of
N355.48, W223.67, in the County Service Center Coordinate System;
thence North 300 ft.; thence West 750 ft.; thence South 500 ft.;
thence East 750 ft.; thence North 200 ft. to the pt. of beginning;
said parcel of land containing 8 -.609 acres.
WEST WING EXTENSION
1. Library
A. Law 15,250 net sq. ft.
B. Reference 8,150 net sq. ft.
C. Blind 8,722 net sq. ft.
D. Genealogical 2,800 net sq. ft.
E. General Space 4,600 net sq. ft.
F. Administration 600 net sq. ft.
Sub-Total: 40,122 n.s.f. (1)
2. Prosecuting Attorney 41,756 (2)
3. Corporation Counsel 3,801 (2)
Total: 85,679 net sq. ft.
Converting to gross: 88,834 x 1.3 = 111,383 gross sq. ft.
The existing West Wing is three stories high plus a basement (each of which
contains approximately 15,500 gross square feet). To get by with only three
stories plus a basement in the West Wing Extension, each floor would have to
be:
111,383 = 37,128 (say 40,000 gross sq. ft.)
3
Such a size could fit on the site adjacent to, and west of, the West Wing.
For the preliminary cost estimate, use $98.75 per square foot and adjust it
for size, location, and time and add two elevators and a full basement. (3)
Main Building (111,383)($98.75)(0.9)(1.06)(1.05)
Remodeling - 18,500 sq. ft. @ $35.00
Two Elevators @ $100,000 each
Full Basement - 40,000 sq. ft. @ $22.70
Electrical Feeder "C"
= $11,020,000
650,000
200,000
910,000
300,000
Construction Sub-Total: $13,080,000
Total Project Cost: $13,080,000 x 1.3 = $17,000,000
(1) Library Building Program
(2) MYA Report for the year 2008
(3) 1991 Means Estimating References