HomeMy WebLinkAboutResolutions - 2011.11.02 - 18782MISCELLANEOUS RESOLUTION #11265 November 2, 2011
BY: PLANNING AND BUILDING COMMITTEE. DAVID POTTS, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES' DIVISION RESOLUTION
APPROVING THE ISSUANCE OF REFUNDING BONDS (PONTIAC VISION 2000, INC. PROJECT) —
PONTIAC, ROCHESTER, ROCHESTER HILLS, ORION TOWNSHIP, WATERFORD TOWNSHIP AND
WATERFORD
To Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, The Economic Development Corporation of the County of Oakland (the "EDC") has
preliminarily approved the issuance of refunding bonds (the "Bonds") to refinance the bonds issued by the
EDC in 2000 for the benefit of Pontiac Vision 2000, Inc. (the "Prior Bonds") under the Economic
Development Corporations Act (the "Act"): and
WHEREAS, because the Bonds are proposed to mature on a date later than the Prior Bonds, the
Internal Revenue Code of 1986, as amended, requires that the Board of Commissioners (1) hold a public
hearing on the question of whether the Bonds should be issued and (2) following the public hearing,
approve the issuance of the Bonds; and
WHEREAS, the Board of Commissioners, following such public hearing, hereby concurs in the
determination of the EDC to issue the Bonds.
NOW, THEREFORE, BE IT RESOLVED, that the Oakland County Board of Commissioners
hereby approves the issuance of the Bonds, upon such terms and conditions as the EDC and its bond
counsel determine to be necessary and appropriate under the circumstances.
BE IT FURTHER RESOLVED, that the County Clerk is hereby directed to provide four certified
copies of this resolution to the Assistant Secretary of the Board of the EDC.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Nuccio and Jackson absent.
7440619.1
MEMORANDUM
Mary P. Langhauser, Assistant Secretary of
The Economic Development Corporation of the County of Oakland
FROM: Robert L. Schwartz
DATE: October 4, 2011
SUBJECT: Public Hearing Regarding EDC/Archdiocese of Detroit Refinancing
The Economic Development Corporation of the County of Oakland (the "EDC") issued
$16,725,000 principal amount of tax-exempt bonds in August, 2000, for the benefit of Pontiac Vision
2000 Schools, Inc., for the purpose of renovating and improving the non-sectarian portions of several
schools in the County (the "Bonds"). The Bonds are secured by a letter of credit issued by Allied
Irish Banks, p.l.c. (the "Bank"). Due ta the Bank's failing financial condition, the interest rate on the
Bonds is unusually high.
The Archdiocese of Detroit (the "Archdiocese") has agreed to refinance the Bonds, and the
EDC has approved the issuance of new bonds (the "New Bonds") for the Archdiocese, the proceeds
of which will be used to prepay the Bonds. The New Bonds will have a maturity longer than the
Bonds. The Archdiocese expects that a savin2s will be achieved through the issuance of the New
Bonds.
The Internal Revenue Code of 1986 as amended (the "Code '), requires that, if new bonds
are issued to refinance existing bonds, and the maturity of the liew bondc is longer than the maturity
of the old bonds, a public hearing must be held by the governing body of the governmental unit in
which the economic developmenl corporation is located; and the issuance of the new bonds must then
be approved by such governing body.
In the past, in connection with the H.)C's issuance of bonds for new projects, the Board of
Commissioners has always held the public hearing required by the MC Act and the Code and has
approved the issuance of the bonds by the [DC.
To comply with the requirements of the Code, the EDC is now requesting that the Board of
Commissioners similarly hold a public hearing far the proposed refunding bonds, and approve the
issuance of the bonds by the EDC, as it has in connection with other projects in the past.
Please do not hesitate to contact mc if you have any questions regarding the subject matter of
this memorandum or the proposed refinancing.
Respectfully,
Robert L. Schwartz.
7299855,1
I HEREBY APPROVE,THE FOREGOING RESOLUTION
Resolution #11265 November 2, 2011
Moved by Dwyer supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Long, Matis,
McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott, Taub, Weipert, Woodward,
Zack, Bosnic, Covey. (24)
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 November
2, 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 2nd day of November, 2011 ,
Kafz
Bill Bullard Jr., Oakland County