HomeMy WebLinkAboutResolutions - 2011.10.20 - 18764MISCELLANEOUS RESOLUTION #11253 October 20, 2011
BY: Planning and Building Committee, David Potts, Chairperson
IN RE: WASTE RESOURCE MANAGEMENT UNIT — RESOLUTION TO RESCIND & REVOKE
APPROVAL OF A BROWNFIELD PLAN FOR THE 4700 LAPEER ROAD PROJECT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen.
WHEREAS the Oakland County Board of Commissioners, pursuant to and in accordance with the
provisions of the Brownfield Redevelopment Financing Act, being Act 381 of the Public Acts of the State
of Michigan of 1996, as amended (the -Act"), has established a redevelopment of Brownfields
Redevelopment Authority and Board (OCBRA) to facilitate the cleanup and redevelopment of Brownfields
within Oakland County's communities; and
WHEREAS, a Brownfield Plan for the 4700 Lapeer Road site had been approved on March 27, 2007,
which called for an office building to be built by Kemp Properties; and
WHEREAS, no cleanup or redevelopment has happened, and no future redevelopment is planned; and
WHEREAS, Kemp Properties intends to sell the property to Kensington Church as part of a four-parcel
church redevelopment; and
WHEREAS, Kensington Church is a tax exempt entity and entitled to no tax increment financing tool.
They don't intend to use the Brownfield Plan; and
WHEREAS the Oakland County Brownfield Redevelopment Authority has rescinded and revoked the
approval of the Brownfield Plan for the 4700 Lapeer Road Site; and
WHEREAS the members of the Township Board have also rescinded and revoked the approval of the
Brownfield Plan for the 4700 Lapeer Road Site,
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
rescind and revoke the Brownfield Plan located at 4700 Lapeer Road within the Township of Orion.
Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing
resolution.
PLANNING & BUILDING COMMITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote
I I/
un er
Secretary Oakland County Brownfield Redevelopment Authority
RESOLUTION TO RESCIND & REVOKE APPROVAL OF THE BROWNFIELD
• DEVELOPMENT PLAN
FOR THE 4700 LAPEER ROAD BROWNFIELD SITE
Au 2011
WHEREAS, a Brownfield plan for the 4700 Lapeer Road site had been approved
on March 27 2007 which called for an office building to be built by Kemp Properties;
and,
WHEREAS, no cleanup or redevelopment has happened and no future
redevelopment is planed; and,
WHEREAS, Kemp properties intends to sell the property to Kensington church as
part of a four parcel church redevelopment; and
WHEREAS, Kensington church is tax exempt entity and entitled to no tax
increment financing tool they don't intend to use the Brownfield plan; and,
THEREFORE, BE IT RESOLVED, the Brownfield Plan for the 4700 Lapeer
Road project was rescinded & revoked by the OCBRA on August 23, 2011 by a majority
vote of 5 yeas to 0 Nays.
BE IT FURTHER RESOLVED, to recommend the rescinding and revoking of
this plan by the Oakland County Board of Commissioners, and its Planning & Building
and Finance Committee's
Yeas: Lerminiaux, Trigger, Webster, Williams, Wilson
Nays:
Absent: Gingell, Hunter, Woodward
STATE OF MICHIGAN
COUNTY OF OAKLAND
CHARTER TOWNSHIP OF ORION
RESOLUTION CONCURRING WITH THE RESCINDING & REVOKING OF THE BROWNFIELD
REDEVELOPMENT PLAN FOR THE 4700 LAPEER ROAD BROWNFIELD SITE
RECITATIONS:
WHEREAS, the Oakland County Board of Commissioners, pursuant to and in accordance with the provisions of the
Brownfield Redevelopment Financing Act, being Act 381 of the Public Acts of the State of Michigan of 1996, as amended (the
"Act"), have established a Brownfield Redevelopment Authority and Board (OCBRA) to facilitate the clean up and
redevelopment of Brownfields within Oakland County's communities; and
WHEREAS, a Brownfield plan for the 4700 Lapeer Road site had been approved on March 27 2007 which called for an
office building to be built by Kemp Properties; and,
WHEREAS, no cleanup or redevelopment has happened and no future redevelopment is planed; and,
WHEREAS, Kemp properties intends to sell the property to Kensington church as part of a four parcel church
redevelopment; and
WHEREAS, Kensington church is tax exempt entity and entitled to no tax increment financing tool they don't intend to use
the Brownfield plan; and,
WHEREAS, the Brownfield Plan for the 4700 Lapeer Road project was rescinded & revoked by the OCBRA on August 23,
2011 by a majority vote of 5 yeas to 0 Nays.
WHEREAS, the OCBRA, pursuant to and in accordance with Section 13 of the Act, shall recommend that the Oakland
County Board of Commissioners Rescind and Revoke the Brownfield Plan in the Township of Orion, relating to the
redevelopment of the property located at 4700 Lapeer Road (the "Property"); and
WHEREAS, the members of the Township Board have reviewed the Plan, and have been provided a reasonable opportunity
to express their views and recommendations regarding the Plan in accordance with Sections 13(13) of the Act; and
NOW THEREFORE BE IT RESOLVED THAT, the Township Board of Trustees of the Charter Township of Orion
hereby concurs with the rescinding and revoking of the Plan by the Oakland County Board of Commissioners and by the
Oakland County Brownfield Redevelopment Authority.
BE IT FURTHER RESOLVED THAT should any section, clause or phrase of this Resolution be declared by the courts
to be invalid, the same shall not affect the validity of this Resolution as a whole nor any part thereof other than the part so
declared to be invalid.
BE IT FURTHER RESOLVED THA.T all resolutions or parrs of resolutions in conflict with any of the provisions of this
Resolution are hereby repealed.
AYES: SHULTS, YOUNG, CRANE, PORTER, STEIMEL, FLOOD, VAN TASSEL.
NAYS: NONE
ABSTENTIONS: NONE
ABSENT: NONE
CERTIFICATION
It is hereby certified that the foregoing Resolution is a true and accurate copy of the Resolution adopted by the Township
Board of the Charter Township of Orion at a meeting duly called and held on the 19Th day of September, 2011.
By:
Penny'S. Shults, CLERK
OAKLAND COUNTY
BROWNFIE 11) REDEVELOPMENT AUTHORITY
BROWNFIELD REDEVZLOPMENT FL/A
Amendment No.
FOR
4700 S. LLver Road Property
Orion Township, Michigan
March 26, 2007
Prepared For:
Kemp Building and Development
275 West Girard
Madison Heights, MI 48071
Prepared By
ASTI Environmental
10448 Citation Drive
Brighton, Michigan 48116
ASTI Project No. 6081
OAKLAND COUNTY
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
4700 S. LAPEER ROAD PROPERTY
MARCH 26, 2007
Table of Contents
Project Summary ..... ......ii
II. GENERAL PROVISIONS .................. ..... ...... ....... ......... ..... . ...... 2
A. Description of Eligible Property ...... . ....... ....... ....... ........................... 2
B. Basis of Eligibility 3
III. PROJECT DESCRIPTION . ....... . ...... 4
A. Description of Cost to be Paid & Summary of Eligible Activities 4
B. Estimate of Captured Taxable Value and Tax Increment Revenues
Impact of Tax Increment Financing on Taxing Jurisdictions 6
C. Impact of Tax Increment Financing on Taxing Jurisdictions 9
D. Method of Financing & Description of Advnnos.. ...... . .......... 9
E. Plan of Financing Maximum Amount of Indebtedness ........... ..... 9
F. Duration of Plan 9
G. Effective Date of Inclusion In Brownfield Plan ........... 10
H. Displacement/Relocation of Individuals ...... ................. ..... ..... ........ 10
I. Local Site Remediation Revolving Fund ..... 10
J. Other Material ................ ....... ......... ...... . .............. ..... 10
TABLES
Table 1: Estimated Tax Recature....... ..... 5
Table 2: Example Tax Capture................. ........ .......... ........ ......... ......
Table 3: Funding Sources 11
ATTACHMENTS
Figure 1: Site Location Map
Figure 2: Site Features Map
Estimated Total
Investment:
Annual Tax Revenues
Before Project:
Annual Tax Revenues After
Project:
Basis for Eligibility:
Eligible Expenses:
Years for Reimbursement:
OAKLAND COUNTY
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
4700 S. LAPEER ROAD PROPERTY
MARCH 26, 2007
Project Name:
Developer:
Project Location:
Project Overview:
Eligible Activities:
Project Summary
Kemp & Peyerk Orion
Kemp Building and Development
Single parcel located at 4700 S. Lapeer Road in Orion
Township, Michigan
The project will redevelop 3.87 acres of former
industrial property. The Property consists of vacant land
previously containing a single building. Historically the
site was light industrial use including a steel fabrication
and metal working operation from the 1960s, until it
burned down in 2006. Remediation of environmental
impacts will be completed as part of this project.
$4,800,000
$10,900 (based on adjustment for vacant land)
$101,000 (total tax based on estimated value of real
property as of 2008 when project is complete)
The parcel is contaminated and therefore qualifies as a
facility as defined in Part 201 of Michigan Act 451.
Eligible activities include remediation of environmental
impacts, environmental investigations, due care,
administrative controls, and preparation of
environmental reports.
$275,000
11 (using assumptions described in the Plan, Table 1)
II
BROWNFIELD PLAN
4700 S. LAPPER ROAD PROPERTY
MARCH 26, 2007
INTRODUCTION
The Oakland County Brownfield Redevelopment Authority (the Authority) was created
by Oakland County (the County) under the Brownfield Redevelopment Financing Act,
Michigan Public Act 381 of 1996, as amended (Act 381). The primary purpose of Act
381 and the Authority is to encourage the redevelopment of contaminated property by
providing economic incentives through tax increment financing for eligible activities and
Brownfield Redevelopment Single Business Tax Credits for eligible investments.
The Oakland County Brownfield Plan (the Plan) describes what defines a property as an
"eligible property", including conditions for classifying a property as a "facility". In
addition, it describes the extent of the proposed redevelopment project, the methods for
redevelopment, and the amount of tax dollars generated by the project that will be used
to finance the redevelopment. Once approved, the Plan will serve as a guide for
implementation of the project,
This Plan Amendment describes the redevelopment of a former light industrial and steel
fabrication facility located at 4700 S. Lapeer Road in Orion Township, Michigan. The
Plan Amendment includes all information required by the Authority for review and
approval. All terms used in this Plan are defined as provided in the applicable statues,
including; The Brownfield Redevelopment Financing Act, 1996, Michigan Public Acts
381, M.C.L. § 125.2651 et seq., as amended; Sections 38d and 38g of the Single
Business Tax Act, 1975 Michigan Public Acts 228, M.C.L. § 208.1-208.145, as
amended; and Part 201 of the Natural Resources and Environmental Protection Act,
1994 Michigan Public Acts 451, M.C.L. § 324.20101 et seq., as amended (Part 201).
All references in section headers are for The Brownfield Redevelopment Financing Act,
1996, Michigan Public Acts 381, M.C.L. § 125.2651 et seq., as amended.
1 Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
II. GENERAL PROVISIONS
A. Description of Eligible Property (Section 13(1)(h))
The eligible property for this Plan consists of a single parcel of approximately 3.87 acres
located on Lapeer Road, just north of Brown road and west of S. Lapeer Road in Orion
Township, Oakland County, Michigan (Figure 1). The Property is currently vacant,
consisting of the former building slab foundation, two truck wells, asphalt parking area,
concrete drive, wooded and lowland areas, and landscaping (Figure 2).
The Property was used as a farmstead from at least 1940 through the 1960s. Between
1963 and 1972, a light industrial building was constructed on the eastern portion of the
Property. The building was renovated and approximately 20,000 square feet were
added to the building in 1974. The building was used for storage by Canterbury Village
between 1996 and the time the building burned on January 6, 2006. The Property is
currently zoned for light industrial use.
The developer, Kemp Building and Development (the Developer) intends to construct
and lease a light industrial building on the property.
The legal description for the Eligible Property is as follows.
T4N, R10E, SEC 35 PART OF E 1/2 OF WEST 1/2 OF SEC BEG
AT PT DIST N 87-50-35 E 1295.30 FT & N 01-01-51 w 1679.33
FT & n 89-35-34 E 577 FT FROM SW SEC COR, TH N 89-35-
34 E 616 FT, TH N 00-24-26 W 225 FT, TH S 89-35-34 W 420
FT, TH N 00-24-26W 150 FT, TH S 89-35-34W 200.20 FT, TH
S 01-02-56 e 375.02 FT TO BEG 3.87 A3-22-96 FR 017
Personal Property: Personal property will be included as part of the Eligible Property
and the value of the personal property is an eligible investment for the purpose of
calculating the amount of the Brownfield Redevelopment Single Business Tax Credit for
2
Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
the project. As described below, personal property is not included in the estimates of
incremental taxable value provided in Table 2.
The Property and improvements, including tangible personal property to be located
thereon, will comprise the eligible property (the Eligible Property).
B. Basis of Eligibility (Section 13(1)(h))
The Property is an eligible property because it is a "facility" as defined by Part 201 of
Michigan Act 451.
A review of historical sampling data indicates concentrations of VOCs and metals in soil
and groundwater at several locations throughout the Property that exceed the MDEQ's
Generic Residential Cleanup Criteria (refer to the Baseline Environmental Assessment
dated November 3, 2006). Most of the impacted boring locations are on the western
portion of the Property, to the east of the truck well.
Environmental conditions were initially observed by ASTI Environmental of Brighton,
Michigan during a Phase I environmental site assessment conducted on April 28, 2006.
A subsurface investigation was conducted at the Property on June 28, 2006 in regard to
historical uses first identified during the Phase I investigation. On October 6, 2006, an
additional subsurface investigation was conducted to delineate soil and groundwater
impacts identified during the June 2006 investigation. A total of 14 soil borings have
been completed throughout the Property during the two subsurface investigations.
Subsurface investigations indicate impacts in the western and central portion of the
Property. The impacted soil samples were collected from a depth of 10 to 12 feet below
ground surface. Concentrations of VOCs in excess of the Csat and/or industrial closure
criteria have been identified in the western portion of the site, to the east of the truck
well. Concentrations in excess of Csat values indicate potential for free product.
3
Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
Ill. PROJECT DESCRIPTION
A. Description of Cost to be Paid With Tax Increment Revenues & Summary of
Eligible Activities (Section 13(1)(b))
The "eligible activities" planned for the site are identified by Act 381, and include
environmental investigation, remediation, due care, administrative costs, and closure
documentation, which are defined as those activities necessary to identify and remedy
impacts above the applicable clean-up criteria in order to prepare the site for
construction. In specific, these activities include, but are not limited to, the following:
1. Environmental Investigations:
Soil and/or groundwater investigations; 1) to further delineate the nature
and extent of identified impacts that have occurred from historical uses; 2)
to assess environmental conditions on the subject property; and 3) as
required to provide closure documentation following soils remediation.
2. Environmental Remediation and Due Care Activities
Soil contamination identified on-site will be remediated. An estimated
4,500 cubic yards of soil will be excavated from the impacted area and
transported to an appropriate waste disposal facility. The upper portion of
the excavated soils may be used for backfill material if laboratory analysis
determines that the soils are appropriate for backfill. Approximately
15,000 square feet of concrete overlying the impacted remediation area
will be broken up and transported to a concrete recycling facility. Removal
of concrete and contaminated soils, preparation of Due Care Plans and
due diligence documentation, and preparation of work plans are included
in this activity.
3. Contingency
A 15% contingency factor has been included to accommodate unexpected
conditions that may be encountered during redevelopment.
In addition to the eligible activities described above, this Plan includes administrative
fees for the Oakland County Brownfield Redevelopment Authority (OCBRA) at 10% of
the total tax increment revenues for each year, and capture of an additional five years of
taxes for the local Revolving Loan Fund.
4
Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
The estimated costs for the eligible activities are listed in Table 1 below and
reimbursement is illustrated in Table 2 attached.
Table 1
Estimated Costs of Eligible Activities
Eligible Activities
1. Environmental Investigation
2. Environmental Remediation and
Due Care
Contingency (15%)
Total Eligible Activities
Estimated
Tax
Capture
$6,000
$232,808
$35.821
$274,629
The above costs are only estimations and may increase or decrease depending on the
actual conditions encountered on the Property. If necessary, this Plan may be
amended to add or delete eligible activities and their estimated costs.
Financial support will be provided by the Authority in the form of Tax Increment
Financing (TIF) to reimburse the Developer, including its successors and assignees, for
the actual cost of eligible activities on the Eligible Property, as authorized by Act 381,
and to allow a qualified taxpayer to apply for a State of Michigan Brownfield
Redevelopment Single Business Tax Credit. No cost shall be reimbursed by taxes
unless they are activities implemented pursuant to a development agreement approved
by the Township
B. Estimate of Captured Taxable Value and Tax Increment Revenues (Section
13(1 )(c))
The Brownfield Plan total estimated cost of the eligible activities to be reimbursed
through the capture of tax increment revenue is provided in Table 2. Based on the
assumptions listed below, tax capture for reimbursement of eligible activities as
described in Section III(A) above is estimated at 11 years. The Township will capture
an additional five years, for a total duration of 16 years. As described below,
5
Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
conservative assumptions were included in the captured taxable value and tax rates.
These assumptions are used for illustrative purposes only, and are not intended to limit
reimbursement of the actual annual tax capture amount described in Section III(A)
above.
The following assumptions have been used to prepare Table 2.
1. The development project will be completed in 2008.
2. Only local taxes are included in calculating recapture.
3. Although the most recent taxable value of the Property is $528,460, for purposes of
calculating the incremental taxable value, the Initial Taxable Value of the Property is
assumed to be the purchase price as indicated in Table 2.
4. Personal property, although anticipated to be part of the value added to the Property,
has not been included in the tax table.
Estimated Tax Increment Revenue Captured by the Authority: Over the life of the Plan
the maximum tax increment captured by the Authority will be as follows.
Oakland County Brownfield Redevelopment Authority
Administrative Fees (16 years): $46,000
Revolving Loan Fund (5 years) $145,000
The Initial Taxable Value will be set by the next assessment role for which equalization
will be completed following the date the resolution adding the eligible property in the
Brownfield Plan is adopted.
The captured incremental taxable value and associated tax increment revenue will be
based on the actual increased taxable value from all taxable improvements on the
Property and the actual millage rates levied by the various taxing jurisdictions during
each year of the Plan.
6 Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
Eligible Activity
Environmental Response Activities:
Redevelopment Activities:
Total Eligible Expense:
274,629
274,629
Year
Percent Complete
Incremental Taxable Value
Personal Property
Total Taxable Value
100% 100%
$ 1,538,730 5 1,584,892
- s
100%, 100%
$ 1,532.47P $ 1,681,412
- $
100%
O 1,783,810 $
- $
5 1,783,810 $
100%
1,602,444 $
- $
1.692.444 $
21_110/ 2008 2009 2010 2041 2012
100%
$ 1,731,055
$ 1,538,730 5 1,584,892 5 1,632,439 S 1,681,412 $
100%
1,837,325
1,837.725
0% 100%
1,049,716
FINANCIAL ANALYSIS
Table .1 . xample Total Tax Capture
4700 S. Lapeer Rea
March 6, 2007
Jurisdiction: Orion Township
School District: Lake Orion Schools
Property Type: Industrial
Assumptions
Property Value: $ 3,362,826
Projected Taxable Value: $ 1581,413
Initial Taxable Value $ 187,500
Incremental Taxable Value. $ 1,493,913
Total Total
MI11531000
12,1165 $ - $
1.3900 $ 43,112 $
2.8000 $ 86,845 $
1.5844 5 49.142 $
3.3690 5 104,493 $
0.2415 $ 7490 $
0.2146 S 6.655 $
0.9916 S 30.755 $
1.9832 $ 61,511 5
1.4189 $ 44.009 5
0.8200 ,$ 25.433 $
Total Tax Capture for All Eligible Activities Millage Category
Vitayr Operating
Courtly Operating
County Education
OCC Operating
ISD (All)
County Parks
Metro Parks
Fire
Police
Library Operating
Township General
Safety Rallis
Lake Orion School Debt
School Operating
School SET
Total Incremental Tax
$ - S - $ - $
$ 2,139 $ 2203, $ 2.269 $
$ 4,308 $ 4,438 $ 4,571 $
$ 2,438 $ 2,511 $ 2.506 s
$ 5,184 $ 5,340 $ 5,500 5
$ 372 $ 383 $ 394 $
$ 330 $ 340 $ . 350 $
$ 1,526 $ 1,572 $ 1,619 $
$ 3,052 $ 3,143 $ 3,237 $
$ 2,183 $ 2,249 $ 2,316 $
$ 1,262 $ 1,300 $ 1,339 $
0.2382 $ 7.388 $ - $ 367 $ 376 $ 389 $
7 4910 $ - $ - $ - $ - $ - $
18 0000 $ - $ - $ - $ - $ - $
6.0000 $ - $ - $ - $ - $ - $
$ - $ - $ - $ -
2,337 $ 2,407 5 2.479 5 2,554 $ 2,630 $ 2,709
4,708 $ 4,849 $ 4,995 $ 5.145 $ 5,299 $ 5,458
2,664 $ 2,744 $ 2,826 5 2,911 9 2,998 $ 3,088
5,665 $ 5,535 $ 6,010 $ 6,199 $ 6,376 $ 6,567
406 $ 410 $ 431 $ 444 $ 457 5 471
361 $ 372 $ 383 $ 394 5 405 $ 418
1,667 $ 1,717 $ 1,769 9 1,822 5 1,877 $ 1,933
3,335 11 3,435 9 3,538 $ 3.644 9 3,753 5 3,866
2,365 $ 2,457 $ 2,531 $ 2.607 $ 2,685 $ 2,766
1,379 5 1 420 $ 1,463 $ 1,507 $ 1,552 $ 1,598
491 $ 413 $ 425 $ 438 5 451 $ 464
- $ - $ - S - s - a _
- $ - $ - $ - s - $ _
- 5 - $ - $ - $ _
58.6589 5 466,834 $ - $ 23,160 $ 23,855 $ 24,570 $ 25,308 $ 26,067 $ 26.849 $ 27,654 5, 28.484 $ 29,338
Total
$ 274,628 $
46,683 $
- $
Tan Capture for Reimbursement:
Capture for Brownfield Authority7
Capture for Bond Repayment
Capture for RLF
Total Capture:
Notes:
Properly and Taxable Values assume conservative costs and lax
rates as described in the Brownfield Flan, are tor Nusbaumn only,
and de not represent actual costs.
The Initial Taxable! Vaff e is an adjusted value based on recent
and purchase price.
$ 20,844 $ 21,469 $ 22,113 $ 22,777 $ 23.460 $ 24,164 $ 24,869 5 25.636 $ 26,405
$ 2,316 $ 2,385 $ 2,457 $ 2,531 $ 2,607 $ 2,585 $ 2,765 $ 2.848 $ 2,934
$ - $ - $ - $ - $ - $ - $ - $ - 5
$ 145,523 $ - 5 - $ - $ - $ - 5 - $ - $ - $ - S -
$ 466,834 11 - $ 23,160 $ 23,855 $ 24,570 $ 25,308 $ 26.067 $ 26,849 $ 27,654 5 28,484 3 29.338
Printed 3/62007 7
20 18 ....11n1'.,1:4,2019 2020 2021 2. 22 2023 2024 2025 2026 2027 EINEM!
100111 100% 100%
$ 2.259 677 $ 2,327,458 $ 2,397,292
- $
$ 2,259,677 $ 2,327,468 $ 2,397.292
100% 1000', 100%
$ 2,469,211 $ 2,543,287 $ 2,519,585 $ 2,608,173
- $ - s - $
$ 2.469,211 $ 2,543,287 $ 2,619,585 $ 2,600 173
100%
2.193,862
2,193;362
100%
- $ -
- $ - $
- $ - $ s
- $ - $
IINANCIALANA 1 IS
Table 2 - Exarnp *total Tax Capture
4700 S. Lapeer Road
March 6, 2007
Jurisdiction, Orion Township
School District: Lake Orion Schools
Property Type: Industrial
Assumptions
Property Value: S '3 362,826
Projected Taxable Value: 0 1,681 13
Initial Taxable Value $ 187,500
Incremental Taxable Value: $ 1,493,913
Eligible Activity
EnvIronrnentel Response Activities: $ 274,629
Redevelopment Activities: $
Total Eligible Expense: $
Year
Percent Complete 100% 100% 100%
Incremental Taxable Value $ 2,007,694 $ 2,067,925 $ 2.129,963 $
Presonal Property $ - $ - $ - $
Total Taxable Value $ 2,007,694 $ 2,067,925 5 2,129,963 $
Total
Millage Category Mills/$1000 Total Tax Capture for All Eligible Activitiea
Village Operating 12.1165 $ - $ - $ - $ - $ - $ - $ - $ - S - $
Caunly Operating 1.3900 $. 2791 $ 2,874 $ 2,961 $ 3,049 $ 3,141 $ 3.235 $ 3,332 $ - $ - S
County Education 2.8000 $ 5,622 5 5,790 $ 5,964 $ 6,143 $ 6,327 $ 6,517 $ 6,712 $ - $ - 5
OCC Operaling 1.5644 $ 3,181 $ 3,276 $ 3,375 $ 3,476 $ 3,580 $ 3,690 $ 3799 $ - $ - $ - $
ISO (All) 3.3690 $ 6.764 5 6,967 $ 7,176 $ 7,391 $ 7,613 $ 7,841 $ 8,076 $ - $ - $ - s '
County Parks 12415 $ 485 S 499 $ 514 $ 530 $ 546 $ 562 $ 579 $ - $ - $ - S
Metro Parks 0.2146 $ 431 S 444 $ 457 $ 471 $ 485 $ 499 $ 514 $ - $ - $ - S
Fire 0.9916 $ 1,991 $ 2,051 $ 2,112 $ 2,175 $ 2,241 $ 2,308 $ 2,377 $ - $ - $
Police 1.9832 $ 3,982 $ 4,101 5 4,224 $ 4,351 $ 4,481 $ - 4,616 5 4,754 $ - $ - $ - S
Library Operating 1.4189 $ 2,849 5 2,934 $ 3,022 $ 3,113 $ 3,206 $ 3,302 $ 3,402 5 - $ - $
Township General 0.8200 $ 1,646 $ 1,696 $ 1,747 $ 1,799 $ 1,853 $ 1,909 $ 1,966 $ - $ - $ - $
Safely Paths 0.2382 $ 478 5 493 $ 507 $ 523 $ 538 $ 554 $ 571 $ - $ - $ - $
Lake Orion School Debt 7.4910 $ - $ - S - $ - $ - $ - $ - 5 - $ - $ - $
School Operating 18 0000 $ - $ - S - $ - $ - $ - $ - $ - $ - $
School SET 6.0000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Total Incremental Tax 58.6589 $ 30,219 $ 31,125 $ 32.059 $ 33.021 $ 34,011 $ 35,032 $ 36,083 5 - $ - $
274,629
Tax Capture for Reimbursement: $ 27,197 $ 28,013 $ 7.)62 5 - $ - $ - $ - $
Capture for SM,Nnfield Authority: $ 3,022 $ 3,113 $ 3,206 S 3,302 $ 3,401 $ 3,503 $ 3,608 S
Capture for Bond Repayment $ - $ - $ - s - $ - $ - $ - s
Capture for RLF 5 :.- '.11- i 5 P9.7113 .1.- -00.O-K 5 21,52 S . .
Total Capture $ 30,219 $ 31,125 $ 32,059 5 33,021 5 34.011 $ 35,032 $ 36,083 $
Notes:
Property and Taxable Values assume conservative costs and tax
rates as described in the Bromfield Plan, are Per illustration only,
and do not represent actual costs.
The Initial Taxabte, Value is an adjusted value bounder recent
land purchase price.
P,rtted 3/5/2007
C. Impact of Tax Increment Financing on Taxing Jurisdictions (Section 13(1)(g))
See Table 2 attached to this Plan for a detailed breakdown of the estimated impact of
tax increment financing on the revenues of the taxing jurisdictions in which the Eligible
Property is located.
The Property includes one school district: 63230- Lake Orion Schools
D. Method of Financing and Description of Advances by the Municipality (Section
13(1)(d))
The Development will be financed through private financing arranged by the Developer.
E. Maximum Amount of Indebtedness (Section 13(1)(e))
The Authority is not responsible for any cost of eligible activities and will incur no debt.
No advances have been or shall be made by the Township or the Authority for the costs
of eligible activities under this Plan.
F. Duration of Plan (Section 13(1)(f))
The Plan will remain in effect for as many years as is required to fully complete the
reimbursement of eligible expenses for the project, or 30 years, whichever is less.
G. Effective Date of Inclusion in Brownfield Plan
The Property will become a part of this Plan on the date this Plan is approved by the
Authority.
9
Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
H. Displacement/Relocation of Individuals on Eligible Property (Section 13(1)(i-I))
There are no persons residing on the eligible propefty to which this Plan applies, and
therefore there are no families to be displaced or relocated.
I. Local Site Remediation Revolving Fund (Section 13(1)(m))
Taxes will be captured from this Project for the Local Site Remediation Revolving Fund
during the five years following the complete capture of taxes for reimbursement of
eligible activities described in Section III(A) above. These funds will be used for
investigation and remediation on other Brownfield sites located within the Authority.
No funds from the Local Site Remediation Revolving Fund shall be used to finance the
costs of eligible activities on the Eligible Property under this Plan.
J. Other material that the Authority or Governing Body Deems Pertinent (Section
13(1)(n))
Because of the challenges and costs associated with redevelopment of an industrial
facility, this project requires Brownfield incentives to succeed. Challenges include
impacts to soil in the western portion of the site, the potential for difficulties during the
excavation process, and the potential for unanticipated impacts to be discovered during
site preparation and construction. Costs associated with site preparation needed to
mitigate challenges created by previous site usage and development are anticipated to
be over $270,000 as described in this Plan.
Funding for these expenses is anticipated to come from the following sources. As
described above and illustrated below, the Developer may apply for school tax capture
and the Brownfield single business tax credit.
Table 3
10
Oakland County Brownfield Plan Amendment
47005. Lapeer Road Property
$6,400
15%
$960
$7,360
$238,808
15%
$35,821
$274,629
Total Above $4,202,726
Contingency 15%
$630,409
Total With Contingency $4,833,135
$298,783 $3,593,735
15% 15%
$44,817 $539,060
$343,600 $4,132,796
Funding Sources
Environmental TIF Do. ..ys,11:43p.r.
Investments Total Cost Grant Funded Fund ::0•1: SET Credit —rer'AIWY
$0
$6,400
$0
Site Acquisition $403,750
Environmental I nvestig ation/Rerned lotion $269,150
Site Preparation $70,000
Infrastructure $412,000
Demolition $60,000
Construction Costs $2,230,000
Other Construction Costs $757,826
SO $0 $403,750
$238,808 $0 $23,942
SO $0 $70,000
$0 $0 $0 $347,000
$0 $0 $0 $60,000
$0 $0 $223,000 $2,007,000
$0 $0 $75783 $682,043
Upon approval of a Brownfield Plan for eligible property or the inclusion of additional
parcels of eligible property in a Brownfield Plan where the owner/operator proposes to
seek reimbursement of costs for eligible activities at eligible property, the Oakland
County Brownfield Authority (OCBRA) shall require the owner/operator to comply with
the terms and conditions specified herein including the schedules governing the capture
of taxes, requests for reimbursement, required documentation, determination of eligible
activities and reimbursement process as more fully defined below.
Parties seeking reimbursement of costs of eligible activities attributable to eligible
property should submit to the OCBRA requests for reimbursement on a monthly basis.
These requests should include the following:
1. Reference to the Approved Brownfield Plan and parcel.
2. The total amount of the current monthly reimbursement request.
3. The total amount of the reimbursement requests sought to date pursuant to
the Approved Brownfield Plan.
4. Identification of each eligible activity as a line item, the associated costs, with
copies of detailed invoices for the eligible activities and proof of payment.
(Parties seeking reimbursement should request detailed billings from
11
Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
contractors splitting out fees and costs of eligible activities from other
services.)
5. Other inforrnation and docume,ntatioi-1 that may ss he OCBRA in
determining whether the costs are for eligible activities attributable to an
eligible property and that the costs are reasonable. This documentation may
include evidence of a competitive biding process and/or evidence that the
costs are for eligible activities.
6. Certification by an authorized representative of the party seeking
reimbursement that a) he or she has reviewed the request for reimbursement,
b) the costs are for eligible activities attributable to eligible property, c) the
request is for costs incurred and paid and d) he/she is authorized to seek
reimbursement and to make the certification on behalf of the party seeking
reimbursement.
The OCBRA will make the final determination of eligibility for all requests for
reimbursement. Reimbursements will take place as tax capture allows. Reimbursement
payment is expected to occur biannually: Within 90 days of receipt of taxes. No
payments will be made if property taxes on any of the eligible properties are delinquent.
The OCBRA will make every effort to follow the reimbursement schedules as specified
in the OCBRA Brownfield Plans. For a specific Brownfield Plan, the OCBRA will not
reimburse prior to or in excess of the amount of taxes captured from the eligible
property. Shortfalls in capture will result in proportionate reductions in allocations made
for eligible activity reimbursements. OCBRA administrative and legal costs for
establishment and administration of the Brownfield Plan governing the eligible property
take priority for reimbursement over all other eligible costs. Any residual administrative
allocations not expended in a fiscal year will be carried forward to reimburse eligible
administrative costs of the OCBRA.
12 Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
The OCBRA reserves the right to deny or make partial reimbursement of requests for
reimbursement, which it deems not in accordance with the Brownfield Plan, the Act and
procedures, established by OCBRA for reimbursement.
13 Oakland County Brownfield Plan Amendment
4700 S. Lapeer Road Property
Attachments
OAKLAND COUNTY
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
4700 S. LAPEER ROAD PROPERTY
MARCH 6, 2007
3.87-Acre Property 4700 S. Lapeer Road, Orion, Twp, MI mumnsw Feet -7
2,000 1,000 0 2,000 E,14:1P
Created for: Kemp Building & Development
Created by: ALM, May 8, 2006, ASTI Project 6235 Site Location Map
The Site Features map has been excluded from this copy of the
Brownfield Plan
I HEREBY APPROTHE FOR
Resolution #11253 October 20, 2011
Moved by Taub supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Covey, Crawford, Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman,
Jackson, Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott,
Taub, Weipert, Woodward, Zack, Bosnic. (25)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., 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 October
20, 2011, 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 20 th day of October, 2011.
dQ4
Bill Bullard Jr., Oakland County