HomeMy WebLinkAboutResolutions - 2017.02.15 - 22796MISCELLANEOUS RESOLUTION# 17012 January 26, 2017
BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee
IN RE: ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS - RESOLUTION APPROVING THE
PROVISIONS OF A BROWNFIELD PLAN AMENDMENT FOR THE VILLAGE OF BLOOMFIELD - CITY
OF PONTIAC 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"), have 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 the Village of Bloomfield site in The City of Pontiac (the "Property") is a hazard, "functionally
obsolete" under state statute and a non-producing parcel; and
WHEREAS a Brownfield clean up and redevelopment plan amendment (the "Plan") has been prepared to
restore the environmental and economic viability this parcel; and
WHEREAS pursuant to OCBRA by-laws, a local committee has been appointed, participated in
discussions regarding the proposed plan and project, reviewed the plan, and recommends its approval;
and
WHEREAS the City of Pontiac has reviewed the Plan, and has been provided a reasonable opportunity to
express views and recommendations regarding the Plan in accordance with Sections 13 (13) of the Act,
and has concurred with the provisions of the Plan; and
WHEREAS the OCBRA, pursuant to and in accordance with Section 13 of the Act, has approved a
resolution (attached) adopting the Plan, and recommends the adoption of the Plan by the Oakland County
Board of Commissioners to be carried out within the City of Pontiac relating to the Bloomfield Village
redevelopment in the City of Pontiac.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
adopt the Brownfield Redevelopment Plan to be carried out within the City of Pontiac, relating to the
Village of Bloomfield redevelopment.
BE IT FURTHER RESOLVED that a public hearing on the adoption of the Brownfield Plan approved by
the Oakland County Brownfield Redevelopment Authority for the Village of Bloomfield redevelopment in
the City of Pontiac shall be held on January 26, 2016 at 9:30 AM in the Oakland County Board of
Commissioners' Auditorium, 1200 North Telegraph Road, Pontiac, Michigan.
Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing
resolution.
Commissioner Philip Weipert, District #8 )
Chairperson, Planning and Building Committee
,
PLANNING AND BUILDING COMMITTEE
Motion carried unanimously on a roll call vote with Dwyer and McGillivray absent.
ESTABLISHMENT OF A COMMITTEE FOR THE VILLAGE OF BLOOMFIELD BROWNFIELD
SITE
SEPTEMBER 15 2016
WHEREAS, per the Oakland County Brownfield Redevelopment Authority (BRA) Bylaws, Article II
Section 9. Not less than sixty days prior to the submittal of any proposed Bro -wnfield redevelopment plan to the
BOC pursuant to Section 14(a) of the Act, by resolution the Board shall appoint a committee for any such
proposed plan to allow for input of the city, village or township involved. The committee .shall consist of a
minimum of one or more of the Directors of the Board, as well as one elected official, or his/her designee from
the affected city, village, or township. The committee so appointed shall make recommendations to the Board,
which shall include or address any changes to the Brownfield redevelopment plan sought by the city, village or
township, as well as any other significant concerns or issues raised by the city, village or township.
WHEREAS, Dan Hunter (Oakland County BRA) and Deiche Waterman, Mayor City of Pontiac have
been designated to serve on the Local Host Committee since August 1, 2016 for the Village of Bloomfield
project.
WHEREAS, all parties involved with this project and the specific persons nominated for this committee
have meet about this project on August 4, 2016: and,
THEREFORE, be it resolved, to approve and ratify the appointment of Dan Hunter, Oakland County
BRA along with Deidre Waterman, Mayor City of Pontiac to serve on the Village of Bloomfield project
committee.
Yeas- Hunter, Lerminia.ux, Jamieson, Trigger, Webster, Williams
Nays-
nunter
Secretary, Oakland County Brownfield Redevelopment Authority
RESOLUTION TO APPROVE A BROWNFIELD REDEVELOPMENT PLAN
AMENDMENT
FOR THE, VILLAGE OF BLOOMFIELD BROVVNFIELD PROJECT
SEPTEMBER 15, 2016
WHEREAS, Village of Bloomfield in the City of Pontiac has been a non
producing parcel for many years; and,
WHEREAS, the previous Brownfield plan for the Village of Bloomfield
(Bloomfield Park) project was approved by the Oakland County Board of Commissioners
on June 11, 2014 in order to market the property and establish the tax increment
financing incentive for redevelopment activity; and,
WHEREAS, no tax capture was captured under the previous Brownfield plan;
and,
WHEREAS, the local host committee consisting of Mayor Waterman from the
City of Pontiac and Mr. Hunter from the OCBRA have met and have recommended the
approval of the Brownfield plan; and,
WHEREAS, the OCBRA Board has reviewed the proposed Amendment to the
Bro-wnfield Plan and a variety of other pertinent documents; now,
THEREFORE, BE IT RESOLVED THAT, the OCBRA finds as follows:
1. Based upon an extensive discussion that occurred at a meeting held on
September 15, 2016 and based upon a review of extensive documentation
concerning the property, which includes but is not limited to the Phase 1
Condition Report prepared by Desai/NASR updated as of August 16,
2016,a Statement of Obsolescence letter from the Oakland County
Assessor dated September, 13, 2016, a letter from Matthew Gibb (Deputy
County Executive) dated September 6, 2016, the 2016 Baker Tilly
Bloomfield Development Impact Assessment Report, and a letter from
Redico dated September 15, 2016, the OCBRA finds that:
a. That the property and improvements in their current condition and
. configuration are not currently marketable without the assistance
provided in the proposed Amendment to the Brownfield Plan; and
b. The property and improvements cannot be reused or repurposed in
their present state,
c. The property that is the subject of the proposed Amendment to the
Brownfield Plan is functionally obsolete with the exception of
Building D and associated parking structure; and
Dan Hunter
Secretary, Oakland County Brownfield Redevelopment Authority
THEREFORE, BE IT FURTHER RESOLVED, the Amendment to the
Brownfield Plan for the Village of Bloomfield project was approved by the OCBRA on
September 15, 2016 by a majority vote of fa yeas to 0 nays, subject to the following
contingencies;
1. The Brownfield plan is also approved by the City of Pontiac Council at
their meeting on September 22nd; and,
2. The Developer and the OCBRA negotiate and agree upon a mutually
acceptable Reimbursement Agreement that addresses among other issues
the conditions for repayment of any interest expenses, school tax capture
consequences as may be impacted by the approval by MEDC of such
capture or lack thereof, and appropriate conditions for reimbursement of
costs of eligible activities incurred before the adoption of this plan, which
shall be formally approved by the OCBRA at a subsequent meeting; and
3. That the OCBRA receive an opinion satisfactory to the OCBRA that it can
rely upon from Warner Norcross which verifies and concludes that the
Developer is legally entitled to recover eligible costs or are otherwise
eligible activities under Act 381,
4. The proposed Amendment to the Brownfield Plan be modified as follows:
Insert on page 5, "In farther support of the basis of eligibility it has been
demonstrated that the Property and improvements in their current
condition and configuration are not marketable without the assistance of
this Amendment to the Brownfield Plan based on the analyses provided in
the attached; i) letter from the Oakland County Assessor dated September,
13, 2016, ii) letter from Matthew Gibb (Deputy County Executive) dated
September 6, 2016, and iii) letter from Redico dated September 15, 2016."
5, The proposed Amendment to the Brownfield Plan be modified as follows:
Insert on page 17, "The Developer shall not be reimbursed for eligible
expenses for infrastructure, parks, streets, sidewalks, lighting, roads and
surface parking except to the extent that such activities are in the public
right of way or dedicated or conveyed to a public entity."
6. The request for the cost of permits and fees listed on page 17 of the
proposed Amendment to the Brownfield Plan shall be deleted.
BE IT FURTHER RESOLVED, to recommend the adoption of this plan subject
to the above contingencies, by the Oakland County Board of Commissioners, and its
Planning & Building and Finance Committees.
Yeas-Trigger, Williams, Hunter, Lerminiaux, Webster, Williams
Nays-
Absent- Gingell, Jamieson, Wilson, Woodward
OAKLAND COUNTY
BROWNFIELD REDEVELOPMEN T AUTHORITY
AMEN DED BROWN FIELD PLAN
FOR
THE VILLAGE AT BLOOMFIELD
PROJECT
Prepared by:
REDICO, Master Developer for Bloomfield Village Owner LLC
Contact Person: Ken Till
Senior Vice President, Development
One Towne Square, Suite 1600
Smithfield, Michigan 48076
Phone: 248-784-6466
Lynn A. Gandhi, Esq.
Honigman Miller Schwartz and Cohn, LLP
660 Woodward Avenue
Detroit, Michigan 48226
Phone: 313-465-7646
igandhi@honiginamcom
September 15, 2016
OAKLAND COUNTY
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
TABLE OF CONTENTS
I. INTRODUCTION 1
II. GENERAL PROVISIONS 2
A. Description of the Eligible Property (Section 13(1)(h)) and the Project 2
B. Basis of Eligibility (Section 13(1)(b) and Section 2(n)) 4
C. Summary of Eligible Activities and Description of Costs (Section 13(1)(a),(b))5
D. Estimate of Captured Taxable Value and Tax Increment Revenues
(Section 13(1)(c)); Beginning Date of Capture of Tax Increment Revenues
(Section (13)(1)(f); Impact of Tax Increment Financing on Taxing Jurisdictions
(Section 13(1)(g)) 6
E. Plan of Financing (Section 13(1)(d)); Maximum Amount of Indebtedness
(Section 13(1)(e)) 7
F. Duration of Plan (Section 13(1)(1)) 7
G. Effective Date of Inclusion in Brownfield Plan 7
H. Estimate of the Impact of Tax Increment Financing on the Revenues of All
Taxing Jurisdictions in Which the Eligible Property is Located (Section 13(1)(g) 8
I. Displacement or Relocation of Individuals on Eligible Property and Financial
Assistance and Other Reimbursement of Expenses (Section 13(1)(i-1)) 8
ATTACHMENTS 9
ATTACHMENT A 10
ATTACHMENT B 11
ATTACHMENT C 14
ATTACHMENT D 17
ATTACHMENT E 18
ATTACHMENT F .19
ATTACHMENT G 20
ATTACHMENT H .21
ATTACHMENT T .22
ATTACHMENT 3- .23
ATTACHMENT K .26
I. INTRODUCTION
In order to promote the revitalization of environmentally impacted and other eligible
areas within the boundaries of Oakland County, Michigan (the "County"), the County has
established the Oakland County Brownfield Redevelopment Authority (the "OCBRA")
pursuant to Michigan Public Act 381 of 1996, as amended ("Act 381"),
The primary purpose of this Brownfield Plan ("Plan") is to promote the redevelopment of
and private investment in certain properties within the County. Inclusion of property
within. this Plan will facilitate financing of environmental response and other eligible
activities at eligible properties, and provide an incentive to eligible developers willing to
invest in revitalization of eligible sites, commonly referred to as "brownfields". By
facilitating redevelopment of brownfield properties, this Plan is intended to promote
economic growth for the benefit of the residents of the County and all taxing units
located within and supported by the OCBRA.
The Plan project area is within the City of Pontiac pursuant to Michigan Public Act 425
of 1984, as amended ("Act 425").
This Plan is intended to apply to the eligible property identified in this Plan and, if tax
increment revenues are proposed to be captured from that eligible property, to identify
and authorize the eligible activities to be funded by such tax increment revenues.
This Plan is intended to be a living document, which may be modified or amended in
accordance with the requirements of Act 381, as necessary to achieve the purposes of
Act 381. The applicable sections of Act 381 are noted throughout the Plan for reference
purposes.
This Brownfield Plan describes the project to be completed and contains information
required by Section 13(1) of Act 381,
1
IL GENERAL PROVISIONS
A. Description of the Eligible Property (Section 13(1)(10) and the Project
The property comprising the eligible property consists of four (4) parcels and all tangible
personal property located thereon, One (1) parcel has the current address of 1957 S.
Telegraph Road, Pontiac, Michigan. Three (3) of the parcels have no current assigned
addresses, and are located in Pontiac, Michigan. The parcels are functionally obsolete
within the meaning of Act 381, see Section II B.
Bloomfield Village Owner, LLC is the project developer ("BVO" or "Developer"). The
project is the development of approximately 76.76 acres of land into over 900,000 square
feet of development for a variety of mixed commercial and retail uses, including utilities,
roadways and other improvements, and the intended construction thereon of
approximately 350 apartments in the latest contemporary design.
Attachment A includes a site map of the parcel. The property is located on the east side
of Telegraph Road, north of Franklin Road.
Parcel information is indicated below.
Address Parcel Number
1957 S. Telegraph Rd., Pontiac 19-05-159-003
No address, Pontiac , 19-05-159-006
No address, Pontiac 19-05-159-004
No address, Pontiac 19-05459-005
The parcels located thereon and improvements will comprise the eligible property and is
referred to herein as the "Property". See Attachment B for a legal description of the
Property.
The historical developed uses of the Property included agricultural, residential, retail and
commercial uses. Prior to World War H, the Property was primarily agricultural in
nature, planted with row crops. During the post-war decades, the Property was developed
to include commercial offices, miscellaneous retail stores, an automobile dealership, a
gasoline station and a drive-in movie theater to meet the needs of the growing suburban
environment. In addition, in response to the post-war housing demand, the interior of the
Property site was developed with single-family residential dwellings along Hood and
Rotsel Roads. The existing vacant and abandoned structures were constructed during the
late 2000s in conjunction with the now defunct Bloomfield Park project.
2
Attachment C provides a description of the project to be completed at the Property (the
"Project"). The Project description provided herein is a summary of the proposed
development at the time of the adoption of the Plan, The actual development may vary
from the project description provided herein, without necessitating an amendment to this
Plan, so long as such variations arise because of changes in market and/or financing
conditions affecting the project and/or are related to the addition of amenities to the
project. Any material or substantive changes to the project description may be subject to
an amendment as determined by the OCBRA Board of Directors and shall he consistent
with the overall nature of the proposed development, its proposed purpose, and the
purposes of Act 381.
Currently, the Property is burdened with eight (8) structures in various stages of
completion, all of which have been qualified as functionally obsolete by the Oakland
County Assessor. It is anticipated that all structures will need to be demolished, but for
one building and one parking structure. It is hoped that these two structures will be able
to be rehabilitated. The total estimated costs associated with demolition is almost three
(3) million dollars. The rehabilitation of the vacant and blighted Property will provide a
needed stimulus in a geographic area that has undergone significant financial stress (City
of Pontiac). The Property is eligible for "qualified local governmental unit" status (as
known as "core community" status) under Act 381 of 1996, as amended. See,
Memorandum of Warner Norcross & Judd, dated September 14, 2016, Attachment D.
This development is expected to act as a catalyst for further improvements along other
portions of the major corridor that it fronts (i.e. Telegraph Road) and provide retail and
employment opportunities for nearby residents, many of whom rely upon public
transportation for mobility. The development will remove large, vacant and blighted
eyesore along a major corridor.
3
B. Basis of Eligibility (Section 13(1)(h) and Section 2(n))
The Property is considered "eligible property" as defined by Act 381, as the majority of
• the structures at the site have been determined to be "functionally obsolete" as
determined by a Level 3 assessor, as defined by Act 381. See, Attachment E, Statement
of Obsolescence from Assessor, dated September 13, 2016.
Parcels 19-05-159-004, 19-05459-005, and 19-05-159-006 contain structures that are
functionally obsolete. Parcel No 19-05-159-006 is contiguous to parcel 19-05-159-003.
All existing structures have been affected by water incursion. Buildings A, B and C have
constant water leakage and poncling causing concern with the structural integrity of
bearing soils with heaving observed on site. These properties also exhibit concern with
damage to the roofing systems.
Building D has similar foundation issues caused by water leakage and ponding. These
concerns extend -past the foundation and impacted both the precast plank floor and the
loadbearing concrete masonry walls (CMUs). In the parking area of this structure
ponding in the elevator pits and issues with components of the foundation caused by
water were also observed.
The Building E report reflects extensive ponding and silt build-up. The deck is
incomplete and no drawings are available. The DCNE report specifically notes that
without a complete set of recast shop drawings, erection drawings or fabricated members
that this deck cannot be saved.
Building F has the same foundation findings found in A-D, with an additional finding
that the interior pad may not have sufficient frost depth. This building also reflects issues
with loadbearing CMUs.
Foimer Building G was demolished in December 2015 as it posed a safety hazard to the
site maintenance crew.
Building J again reflects similar foundation findings as noted in Buildings A-D, as well
as notable steel frame corrosion, issues with the precast plank floor system, issues with
the cantilevered deck balconies (cracking and corrosion of the steel deck plate) and
concerns with the loadb oaring CMUs. In addition, while access to the high roof was not
available, observation of the low roof indicated that all roofing needed replacement. The
2016 report reflects emergency shoring is required in order to prevent major structural
failure.
The final building is referenced as BF-CTN. It had partially erected foundations and
reinforcing CM-Us which were in poor condition. The report reflects that the area
surrounding this structure is "saturated and swampy." BP-CIN was demolished in August
2016 to maintain site safety.
Utilities, plumbing, heating and sewerage have been rendered ineffective, and the
property is unfit at this time for its intended use.
The property also contains super adequacies in design, particularly due to the parking
structures needed for re-use of the site, The existing parking at the site exceeds the
anticipated needs by over 1,550 parking stalls. Building E is not feasible to complete,
given that it is only 25% complete with no detailed drawings to rely on to complete,
Deck J contains 1,563 additional spaces. These spaces have no known attributable use as
adequate parking is designed for each proposed tenant that is contiguous with the
buildings they will occupy. Costs required to repair structural damages and complete this
Deck are projected at S21.5 million. This cost includes the cost associated to the failing
beam which threatens a partial collapse of the second floor at this time. Retainage of
Deck J would continue this situation of super adequacy relative to reasonable parking on
site ranging from over 1,550 to 2,000 parking stalls.
Marketability of the site was stymied due to the current conditions of the property and
improvements. Despite the best efforts of the Oakland County Economic Development
Community Affairs Division to market the site locally, regionally and globally, as well as
the efforts of several experienced developers, the site was not viable as originally
planned. See, Correspondence from the Economic Development and Community Affairs
Division dated September 6, 2016, Attachment F; Correspondence from REDICO dated
September 15, 2016, Attachment G; Review of Phase 1 — Condition Assessment Report of
Bloomfield Park, updated August 16, 2016 by DNCE, Inc., Attachment H; and
Bloomfield Development Impact Assessment, dated September 2, 2016, by Baker Tilly,
Attachment I.
C. Stuninary of ElliRible Activities and Description of Costs (Section 13(1)(a),(b))
The "eligible activities" that are intended to be conducted at the Property are "eligible
activities" as defined by Section 2 of Act 381, because they include previously incurred,
as well as future, demolition, site preparation, infrastructure improvements, interest costs,
baseline environmental assessment activities,, due care activities, potential additional
response activities, and development and preparation of a brownfield plan and work plan.
Eligible activities include all eligible soft costs directly related to the demolition,
infrastructure improvements, and site preparation improvements, including design,
engineering and testing activities. A summary of the eligible activities and the estimated
cost of each eligible activity intended to be paid with tax increment revenues from the
Property are shown in the table attached hereto as Attachment I. The eligible activities
described in Attachment .1 are not exhaustive. Additional eligible activities may -be
carried out at the Property, without requiring an amendment to this Plan, so long as such
eligible activities are permitted by Act 381 and the performance of such eligible activities
does not exceed the total costs stated in Attachment J by more than 15%.
Demolition activities are anticipated to begin in 2016 and the majority of eligible
activities are expected to be completed in 2019,
The Developer desires to be reimbursed for the costs of eligible activities. Tax increment
revenue generated by the Property will be captured by the OCBRA and used to reimburse
the cost of the eligible activities completed on the Property either before or after approval
5
of this Plan pursuant to the terms of a Reimbursement Agreement with the OCBRA (the
"Reimbursement Agreement"), subject to limits contained in Act 381.
The costs listed in Attachment J are estimated costs and may increase or decrease
depending on the nature and extent of environmental contamination and other unknown
conditions encountered on the Property. The actual cost of those eligible activities
encompassed by this Plan that will qualify for reimbursement from tax increment
revenues of the OCBRA from the Property shall be governed by the terms of the
Reimbursement Agreement. No costs of eligible activities will be qualified for
reimbursement except to the extent permitted in accordance with the terms and conditions
of the Reimbursement Agreement and Section 2 of Act 381. The Reimbursement
Agreement and this Plan will dictate the total cost of eligible activities subject to
payment, however, the total cost of eligible activities subject to payment or
reimbursement under the Reimbursement Agreement shall not exceed the estimated costs
set forth above by more than 15% without an amendment to this Plan. As long as the
total costs, adjusted by the 15% factor, are not exceeded, line item costs of eligible
activities may be adjusted after the date this Plan is approved by the Oakland County
Board of Commissioners.
D. Estimate of Captured Taxable Value and Tax Increment Revenues
(Section 13(1)(c)); Beginning Date of Capture of Tax Increment Revenues
(Section (13)(1)(f); Impact of Tax Increment Financing on Taxing Jurisdictions
(Section 13(1)(g))
This Plan anticipates the capture of tax increment revenues to reimburse the Developer
for the costs of eligible activities under this Plan in accordance with the Reimbursement
Agreement. A table of estimated tax increment revenues to be captured is attached to this
Plan as Attachment K.
An estimate of the captured taxable value and tax increments by year for real property is
indicated in Attachment K. The actual amount will be based upon the total Project costs
and values. Estimated projected amounts to be captured are as follows:
Specific Levy Estimated Capture
School Operating 26,994,712
State Education Tax 8,998,237
City of Pontiac 13,907,826
County (with Parks) 6,495,228
OIS 5,043,962
OCPTA 1,499,406
I-I CMA 321,837
OCC 2,372,385
Seniors 7119,853
Capital Improvement 2,113,236
Sanitation 4,226,622
In addition, the following taxes are projected to be generated but not to be captured during the
life of the Plan;
6
Specific Levy Estimated Generated
MESSA Judgment 47,141
DIA 299,342
Zoo 149,671
in no event shall the duration of the Plan exceed 35 years following the date of the
resolution approving the Plan, nor shall the duration of the tax capture exceed the lesser
of the period authorized under subsection (4) and (5) of Section 13 of Act 381 or
30 years, Further, in no event shall the beginning date of the capture of tax increment
revenues be later than Eve years after the date of the Oakland Cannty Board of
Commissioners resolution adopting the Plan.
E. Plan of Financing (Section 13(1)(d)); Maximum Amount of Indebtedness
(Section 13(1)(0)
The eligible activities are to be financed by the Developer, The OCBRA will reimburse
the Developer for the cost of approved eligible activities, but only from tax increment
revenues generated from the Property. No advances have been or shall be made by the
City or the OCBRA for the costs of eligible activities under this Plan.
All reimbursements authorized under this Plan shall be governed by the Reimbursement
Agreement to be entered into by the parties. The inclusion of eligible activities and
estimates of costs to be reimbursed in this Plan are intended to authorize the OCBRA to
fund such reimbursements and does not obligate the OCBRA, Oakland County or the
City of Pontiac to fund any reimbursement or to enter into the Reimbursement
Agreement providing for the reimbursement of any costs for which tax increment
revenues may be captured 'under this Plan, or which are permitted to be reimbursed under
this Plan. The amount and source of any tax increment revenues that will be used for
purposes authorized by this Plan, and the terms and conditions for such use and upon any
reimbursement of the expenses permitted by the Plan, will be provided solely under the
Reimbursement Agreement contemplated by this Plan.
The OCBRA. shall not incur any note or bonded indebtedness to finance the purposes of
this Plan.
Reimbursements under the Reimbursement Agreement shall not exceed the cost of
eligible activities permitted under this Plan.
F. Duration of Plan (Section 13(1)(f))
The duration of this Plan shall be up to the maximum period permitted pursuant to
Section 13(1)(f) of Act 381.
G. Effective Date of Inclusion in Brownfield Plan
7
The Property will become a part of this Plan on the date this Plan Amendment is
approved by the Oakland County Board of Commissioners.
H. Estimate of the Impact of Tax Increment Financing_ on the Revenues of All
Taxing Jurisdictions in Which the Eligible Property is Located (Section 13(1)(g)
An estimate of the incremental tax financing is attached as Attachment K.
I. Displacement or Relocation of Individuals on Eligible Property and Financial
Assistance and Other Reimbursement of Expenses (Section 13(1)(i4))
There are no persons or businesses residing on the eligible property, therefore there will
be no displacement or relocation of persons or businesses under this Plan,
J. Local Site Remediation Revolving Fund (LSRRF) (Section 13 (1)(rn).1
The OCBRA has established a Local Site Remediation Revolving Fund ("LSRRF"), as
authorized in Section 13(5) of Act 381. The amount of recapture per year will be
deposited into the LSR.RF commencing immediately after the Developer has been fully
reimbursed under this Plan and the administrative fee has been paid to the OCBRA
pursuant to the reimbursement agreement to be entered into by the Developer and the
OCBRA, and shall continue for five (5) years. The amount of estimated tax increment
revenue authorized for capture and deposit in the LSRRF is $8,074,187. This is not a
fixed obligation or commitment and will be dependent upon the taxable value of the
property in the future.
8
HI. ATTACHMENTS
9
AT'FACIIMENT A
Site Map
10
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ATTACEMIENT B
Legal Description of Eligible Property to which the Plan Applies
Legal Description of Eligible Property to which the Plan Applies
Land Situated in the City of Pontiac in the County of Oakland in the State of Michigan:
Parcel 1;
Commonly known as: 1957 S. Telegraph Rd., Pontiac
Tax Id Number(s): 19-05-159-003
Parcel 2:
Commonly known as: No address, Pontiac
Tax Id Number(s): 19-05-159-006
Parcel 3:
Commonlyknown as: No address, Pontiac
Tax Id Number(s): 19-05459-004
Parcel 4:
Commonly kuown as: No address, Pontiac
Tax Id Number(s): 19-05-159-005
Legal Description
CITY OF PONTIAC PARCEL:
ALL OF LOTS 1 THRU 30,41 THRU 50, AND ALL OF LOT 63, ALSOALL OF
ROTSEI, ROAD AND MYRTLE ROAD, AND PART OF VACATED HOOD ROAD,
ALL INCLUSIVE, OF "BLOOMFIELD ACRES", A SUBDIVISION OF PART OF
THE SW 1/4 OF THE NW 1/4 OF SECTION 5, AS RECORDED IN LIBER 41, PAGE
49, OAKLAND COUNTY RECORDS, TOGETHER WITH; LAND SITUATED IN
THE WEST 1/2 OF SECTION 5, T. 2N., R. 10E., BLOOMFIELD TOWNSHIP , THE
CITY OF PONTIAC, AND BLOOMFIELD TOWNSHIP (CONDITIONALLY
TRANSFERRED TO THE CITY OF PONTIAC), OAKLAND COUNTY, MICHIGAN,
AND PART OF THE NE 1/4 OF SECTION 6, T. 2N,, R. 10E., BLOOMFIELD
TOWNSHIP, OAKLAND COUNTY, MICHIGAN, BEING MORE PARTICULARLY
DESCRIBED AS COMMENCING AT THE WEST 1/4 CORNER OF SECTION 5, T.
2N., R. 10E.; THENCE N.02°00'42"W„ 698.60 FEET ALONG THE WEST LINE OF
SAID SECTION 5 TO A POINT ON THE NORTHERLY RIGHT-OF-WAY LINE OF
TELEGRAPH ROAD (204 FEET WIDE), SAID POINT BEING THE POINT OF
BEGINNING; THENCE ALONG THE SAID NORTHERLY LINE OF TELEGRAPH
ROAD N.50°40154"W., 205,17 FEET; THENCE N,39°19 106"E., 125.00 FEET;
THENCE S.50°4054E., 91.05 FEET TO A POINT ON THE WEST LINE OF SAID
"BLOOMFIELD ACRES"; THENCE ALONG SAID WEST LINE N.02°13'10"W.,
768.44 FEET TO THE NORTHWESTERLY CORNER OF SAID "BLOOMFIELD
12
ACRES"; THENCE ALONG THE NORTH LINE OF SAID 'BLOOMFIELD ACRES"
N.87°20'36"E., 890.40 FEET; THENCE N.02°01 100"W., 608.32 FEET; THENCE
N.87°37'40"E., 362.35 FEET; THENCE S.04°10'40"E., 606,70 FEET TO A POINT ON
THE SAID NORTH LINE OF "BLOOMFIELD ACRES"; THENCE N,87°54'40"E.,
1146.85 FEET; THENCE S.05°30'10"E., 120,14 FEET TO THE NORTHWEST
CORNER OF FAIRVIEW" HEIGHTS SUBDIVISION" AS RECORDED IN L1BER 22,
PAGE 7, OAKLAND COUNTY RECORDS; THENCE CONTINUING ALONG THE
WEST LINE OF SAID "FAIRVIEW HEIGHTS SUBDIVISION" AND THE WEST
LINE OF "FRANKLIN GARDENS" A SUBDIVISION AS RECORDED IN L1BER 19,
PAGE 40, OAKLAND COUNTY RECORDS, S.05°21'37"E,, 1527.35 FEET TO THE
CENTER OF SECTION 5; THENCE ALONG THE EAST-WEST 1/4 LINE OF SAID
SECTION 5, S,87°49'01"W., 1018.13 FEET; THENCE N.02°32'.58"W,, 498.50 FEET;
THENCE S .87°10'18"W., 200.00 FEET TO THE NORTHEAST CORNER OF LOT 34
OF SAID "BLOOMFIELD ACRES"; THENCE S.8526'04"W., 58.08 FEET TO THE
NORTHEAST CORNER OF SAID LOT 33; THENCE N.71°29'42"W., 320.95 FEET
TO THE LOT LINE COMMON TO LOTS 30 AND 31 OF SAM "BLOOMFIELD
ACRES", THENCE ALONG SAID LINE S.39°19'10"W., 188.74 FEET TO A POINT
ON THE NORTH LINE OF HOOD ROAD (60 FEET WIDE); THENCE ALONG SAID
LINE N.50°40'54"W., 352.08 FEET TO A POINT ON THE EXTENSION OF THE LOT
LINE COMMON TO LOTS 40, 41, 50 AND 51 OF SAID "BLOOMFIELD ACRES;
THENCE ALONG SAID LINE S.39°19'06"W., 359.96 FEET TO A POINT ON THE
SAID NORTHERLY RIGHT-OF-WAY OF TELEGRAPH ROAD; THENCE ALONG
SAID LINE N.50°40'54"W., 405.99 FEET TO THE POINT OF BEGINNING.
CONTAINING 3,478,923.67 SQUARE FEET OR 79,86 ACRES.
13
ATTACHMENT C
Project Description
14
Project Description
The failure of the Bloomfield Park project in 2008 impacted the local real estate
and construction industries and is still detectable even though almost a decade has passed.
Since the time the original project was conceived the market has irreversibly shifted. The
incomplete and vacant structures left at the site have deteriorated to the point that the
majority are unsalvageable and are a burden to any developer.
As determined by the Oakland County Assessor, the property is burdened with
over 1.5 million square feet of functionally obsolete structures. Bloomfield Village
Owner LLC ("BVO"), having purchased the land assets securing the loans to the original
developer, and all development rights thereto, intends to demolish the majority of the
incomplete structures, while reusing and completing significant portions of the
infrastructure (roads, sanitary and storm sewer, water, electrical, hardscape and
landscape, etc.) intended to serve the original project. Additionally, BYO is pursuing the
adaptive reuse of a 72,000 square foot commercial building and the 1,050 space parking
deck that was constructed as part of the original project. The new project will be called
The Village at Bloomfield. REDICO will be the master developer.
The master plan consists of nearly 900,000 square feet of development
representing a total investment of nearly $200,000,000, and will include the following
uses:
• 350 apartments of varying type, with an average size of +7- 900 square feet,
• 100 unit assisted living community, 120,000 square feet,
• 100 key select-service hotel, 60,000 square feet,
• 220,000 square foot home improvement retail anchor, and
• 170,000 square feet of additional retail and commercial.
The home improvement retail anchor will construct a two-story store, format that
is unique to this market, in order to minimize its footprint. This feat of planning will
encourage dense development elsewhere on the site, making use of the existing parking
deck and inviting a variety of other commercial users to the project. It is anticipated that
the commercial development will be jobs-intensive and include users uncommon in the
local geographic market, such as a specialty grocer.
The 350 unit multifamily development will be the largest market-rate new
construction in the local geographic market in recent memory, and the apartments will
appeal to a broad demographic. The majority of the multifamily housing stock in
Oakland County has a forty-year Or greater vintage, falling far short of contemporary
standards observed in markets throughout the United States. Residents will be drawn to
the community because of its proximity to jobs and transit as well as the amenities of the
Village at Bloomfield, which will include a protected wetland buffer featuring a scenic
public trail network for active recreation.
The Village at Bloomfield is expected to act as a catalyst for further development
along Telegraph Road and in the City of Pontiac, providing a needed stimulus to an
15
economically stratified but predominantly disadvantaged section of Oakland County. It
is anticipated that the development will help stabilize residential and commercial
property values in the area while removing a large, vacant, eyesore. The placement of the
buildings on the property along the street network will enhance the pedestrian experience
by providing shade trees, pedestrian scaled lighting, and seating areas organized to create
a true mixed-use urban space. Wide sidewalks, shaded by canopies and awnings will
allow for outdoor dining, and sidewalks will be carefully aligned and connected with
wide crosswalks using the principals of Complete Street Planning Guidelines, The
Village at Bloomfield will target LEED criteria whenever possible and will continue
REDICO's policy to implement sustainable design practices for all major projects.
Critical regional issues identified by the U.S. Green Building Council will be given
special consideration, including sustainable site development and indoor environmental
quality.
The project is expected to generate approximately 465 direct fall time equivalent
(FTE) construction jobs and approximately 315 secondary indirect and induced jobs.
Once completed, the project estimates approximately 1,125 direct FTE jobs will be
created, and an additional 349 secondary indirect and induced jobs. The development
site plan preserves and protects multiple acres of wetlands, which will be incorporated in
the recreation plan for the project. The plan is conceived as occurring in either one or
several phases, depending on market conditions, and elements of the project can stand
alone to avoid the systemic risks that afflicted the prior development. BVO intends to
use brownfield redevelopment tax increment financing to reimburse the cost of eligible
activities needed to prepare the Property for redevelopment and reuse.
16
ATTACHMENT 11
Memorandum of Warner Norcross & Judd, dated September 14, 2016
17
py arner ioD
IN
ATTORNEYS
OrCSASTOVLAttia-1101LLP
MEMORANDUM
TO; Oakland County Brownfield Authority
FROM: John V. Byl
DATE: September 14, 2016
RE: Eligibility of Bloomfield Park for "Core Community" Status
I, Introduction.
The Oakland County Brownfield Redevelopment Authority (the "Authority") has
requested confirmation that the property located in the area known as Bloomfield Park
("Property") is eligible for "qualified local governmental unit" status, also known as
"core community" status, under Act 381 of 1996, as amended ("Act 381"), For
background, the City of Pontiac ("City") and the Township of Bloomfield ("Township")
entered into an Agreement for Conditional Transfer of Property in November, 2002 ("Act
425 Agreement"), pursuant to which the Property was conditionally transferred from the
Township to the City under Act 425 of 1984, as amended. The City is a core community;
the Township is not. As explained in more detail below, we have concluded that as a
result of the conditional transfer of the Property to the City pursuant to the Act 425
Agreement, the Property has core community status under Act 381.
Analysis.
A. Core Community Status Under Act 381.
Under Act 381, "eligible property" that is in a core community is entitled to
reimbursement of certain "eligible activities" that are not eligible for reimbursement
outside of a core community, most notably infrastructure and site preparation activities.
ln order for the Property to be eligible for such status, it must be located in a core
community.
B. P.A. 425 Agreement.
Under Act 425, a Property can be conditionally transferred from one municipality to
another for purposes agreed to by the municipalities. This is a tool that is frequently used
for purposes of economic development for projects outside of a traditional urban
community. Consistent with this purpose, there have been instances when agreements
entered into under Act 425 have been used to achieve core community status for property
located outside of a core community. One such example is the Harbor Shores project in
St. Joseph / Benton Harbor / Benton Township. The Cities of Benton Harbor and St.
Joseph entered into an Act 425 agreement in 2005, whereby property Located in the City
of St. Joseph (at the time a non-core community) was conditionally transferred to the City
of Benton Harbor. The primary purpose of that agreement was to convey core
community status to the parcels transferred from the City of St. Joseph to the City of
Benton Harbor. That agreement remains in effect today.
The State of Michigan, through the Michigan Economic Development Corporation and
Michigan Strategic Fund Board, has accepted the use of Act 425 agreements, such as the
Harbor Shores agreement, to establish core community status under Act 381. In its
publication titled "Conditional Land Use Transfer, PA 425" the MEDC states the
following: "PA 425 has also been used to gain economic incentive tools that only core or
distressed communities can offer toward support of an economic development projects,"
In short, the MEDC specifically references core communities. As an aside, the MEDC
recommended the use of an Act 425 agreement for the Harbor Shores project so that the
property in the City of St. Joseph could receive core community status.
In this instance, the Act 425 Agreement specifically provides that the Property "shall he
conditionally transferred from the jurisdiction of the Township to the jurisdiction of the
City for all purposes, except as specifically provided otherwise in this Agreement."
There are no provisions in the Act 425 Agreement that would limit the transfer of the
Property to the City for purposes of Act 381. In fact, the Agreement specifically provides
that the Property "shall be within the jurisdiction of the City for all economic
development services and programs operated by the City . . .." While the provision
relating to economic development services does not specify Act 381, there is no language
that in any way excludes Act 381 for purposes of the transfer of the Property to the City.
Conclusion.
For these reasons, it is our view that the Act 425 Agreement conveys core community
status under Act 381 to the Property, since the Property is .deemed to be part of the City
for all purposes other than any specifically excluded purposes.
srd
148E6102
ATTACILVIENT E
Statement of Obsolescence from Assessor, dated September 13, 2016
18
CU NTY 14 4. cn
M ANAG CM. ENT a Rili.070:E.T
.ciAkLAND 0.01)NlY 8XEtLiti/8L.b"RodM' PA'fIERSCK
D 1[1
V48) ase
'
.triAg etiP.100algOv-.00n3
Statement of Obs oteScence Rom. Asse ssor
Parcel Nosi 644-9-05459,00,3.
6449-05459-004
64405.-159-005
The development theis the:811W6d. f thin re quest was originally platmed to includeligh-density mixed
uses with 44 buildhigs and 3 high:A-be parkth g deeks. The n8os-werelo.inolude.retait. offibe and
residential:uses, Consinacti:on Oommeb_eed in 2007 and terminated 41 November of 2008: CuiTentl y, the:
Properly is burdened With '60-it (8) swuaturesJnVarion& ttageS, of completion: Certain stractures, as'
nOted..beloWi were reninved rite: tti. saeety issues.-
Parcels I 015OO4, 1-0.51--1-59-005-; and 19-05,1„.59.-A)06. contain .5t-tiret.ires that lire fanctiOnaIt y
- ob solete-, Parcel No I:94)1459-006 1onti gno0s to. pamel.l90l 59Q0,.
Prefessional reports confirrtu that all e>ds.ting structures. lia17-6: been affected by.Watet iticwti on: Buildin gs
B and 0 have constant water leaka ge and pending causing concern with the struotw.atinte grity. of
bearing soils -with heaving Observed ofir alto. These properties also okhibit concern with dama ge to-the
roofing tystetris, 'Building D. hat M ini:fat-foundation:issues caused by water leakage and ponding, These.
cencenis extend past the four-Ida:a m and impacted both the precast plank floor and the loadbearin g
concrete masonry. w nalls (CMTJsj, I the parking area •of this structure pondingin the elevator pits and
issues with .co.mpenents of the :foundation. caused b y waterwerealso observed. BuildingB -reflects
extensive paneling and silt buildup The deek is incomplete and no drawin gs. are available: 'The:
DesaiNasr Consulting Engineers report spaifically Xiritr that Without a Complete set oflecatt shop
draWingS, erection drawings .rir fahriedted iTherthers that thiS deck cannot-be saved. Buildin g P. has the
same foundation findings, found in.fluildings A--D, with an additional findin g that the interior.p.ad may
not have sufficient ffost depth. This building alse reflects istues with loadbearingCNIUS: Fernier
Building G.WM demolished In.D.ecernbet 2015- as. it posed a safety hazard to the site maintenance crew.
Building S again_rellects timilarfoundation findings-as noted in-Buildings as Well as notable Steel
frame corrosion, istPes with the precast pl ank finer system, issues.with,the cantilevered deck balconies
(cracking and corrosion of -the steel. deck plea): and eoncerns with the loadb cari ng In addition,
while accessto the high roolwas riot available, .obseivattOn of the law roof indicated that all roofing
needed repinernent The; updated 20'16 report reflects emer gency shoring is required in order to prevent;
major structural faitur e,. The final .building is-referenced as ElP.-CIN. It has partially erected. foundationa
arrel reinforcing ClvlIfs which areii poor condition. The report reflects that the area Stu-Minding this i§
saturated. and, swampy"- and based on this buildin g. BPIMwae clemolithed in August 2016, to
250 EIiiabeth• Litko Rand, St6, 1000W 1 Oakland P'ciinti Officer }Inkling I Pontiac ; MI 48541 rax (2481868-20741 oaRgov.corn
maintain site fet. Utilities, plumbing, heating andseWerage hoe ttheti rendered ineffective,. and the
property in unfit at this than fo2 intended use
The ptoperty also. contains' super adoquaties paitiontarly duo to, the parking sinieturos needed
for re-use of the :site. The existing parking at tho site exceeds the -anticipated needs: by over 1,55.0
parking 'stalls,. Building r, is not feasible to 'complete, giveii that it N only 25.% Complete with ndv
detailed drawings to rely On to , complete, Deck .1 contains 1 ,563 additional spaces', These spaces have _m
known attributable use as adequate parking is desi,(4neci for each. proposed -tonal:it that is contiguous , with
the buildings they occupy: Costs tequited. to ;repair stn.iotural darriago& and complefo this Deck are
projected at $2,15 million, This. QOst includes the cOst associated, to the failing, beam whielt:threatena
.partial collapse of the second floor at this time. Retainage &Dock J. welAld: continue:this. Situation', of
sup.er adequaoy-r6lative. tertasonable parking Odi site:ranging fioni. over 1,550 'to 2,00aparking stallg,
Only iluilding t). with its. aJaohed parking deek is considered viable for rehabilitation and completion,
'Thereat ofthe partial constructibnis to be demolished per the current developer;
ta the opinion ofthe assessor, this- property suffers in excesd of 50% functlonal obnolescence.:
Oakland County Equalization
IMAO (3)
Q911.3)1Q16
21 be p.ontiad Lg;e Road I County Executiyo Building 41W 1 SIVatrforci, MI 48628 1 Fax (248) 452-5172 OakGov,corn
ATTACHMENT F
Correspondence from the Economic Development and Community Affairs Division
dated September 6, 2016
19
CPQNTY WI.KRIGAN,
.MaffVontObli
Deptit9 OizVI* Ekeecitl*
L.. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
SepterabOr G., 2O1:6
M. 17)-tev Wastex
aldabd: County BTovoifield Redevelopment Authority
2100 Pontiac Lake Ea — Bldg 4:1W
Waterford,: MI 481J2&
Re; Village; of Bloomfield - Brum-afield Redevelopment Plan
Background Statement Supporting :the; Application
1V.Ir. Webster;
On boll A' of the EconomiciDevelpment and Connanwity Affairs Di ion
(hereinafter "EDON)., please include :this .cannattrikaltien iit the rboord;Of the
Oakland '001-111t5r BTOWIltliad ited4VOOpMMA AttliOVity piltUatit. to it 6041clekatiQn
of thn pan..ding 40ickti.031' known a$. tho "Village . of )31900.fielci",. As the -
Deputy OtAnyty cntivc Overseeing ecQnomiq aevelopraent. within. the county, I am
pm:so:nal:Ty aware of the applicktioat ab_cl the Undei'lyirrg'again and fasts; lending to;
this; opportunity tu .red.Oyetql)111011t, Qt th0 8it0-i This lottex shall aupport the
application and additionally support the finding that the site isin a status of
functional obsolescence anl cannot be redeveloped Without the adoption of a tax,
'increment 'blame based:plan consistent to:that proposed: by: the applicant,
ED CA has exerted-subitantial effOrt to. k6"gtvp:oso and assiSt in ma .cliepositibli
thi8 silo over the last, fauv yeam. The, pfoioot was originally aalgted, ta oig real
estate specialist \vile completed an exhaustive review of title, litigation records ,,
agreexaqnts (including. the 425 Settlement clocunientg, and fins:rite/receivership
il1ingS..Ba8ed -ova( that aaalysig, ED OA_ pxo.coedad with several effortS., Including
but not limited toe;
L. Cost atialy.sis fti. clemch:tica and xatrofitting of' existing structuye,;
Marlot fcneQ asting for; p etential 1;e-use,
3, Contact. and presentation to multiple local and hatienal developinent finas,
EXECLUNE OFFICE BIALDIN,.41 WE8T 23£f 0 RONTINGIASE 140 oep1pg. wATEHFonci, M 48a-.54(5 (240 076-9eao FA); (2.4E0 45:2L,9215'
EMAIL: gibbraqvahow,com
Mr, Peter Webster
Septembel, 6, 2016
Page 2
4. Creation of marketing packages for use in attracting international
investment, including hosting several Chinese companies and real estate
investment firms,
5, Working with the Pontiac Emergency Manager to facilitate status and use of
economic development incentives, including assisting in passing resolutions
and orders ceding organizational administration and authority of any future
brownfield to the Oakland County Brownfield Authority.
6, Facilitating direct offers of acquisition, pursuant to diligence, to Wells Fargo,
the note holder on the site,
7, Assisting parties under option and/or contract in building a financial plan
that would allow the site to be redeveloped through traditional and non-
traditional financing,
8. Engaging outside legal counsel to assist in drafting a concept brownfielel
plan, slowing any potential user to complete financial diligence with the
assurance that a brownfield, including look back capture, was eligible for the
site,
9. Coordinating approval of concept brownfield language with brokerage on the
site to enhance marketing of the site, and participating in developer
attraction including attending and working events such as ICSO,and. making
direct investment presentations to national and international firms such as
Cordish, Stark and DDI in Shanghai.
10. Proactively reassembling the Joint Development Council pursuant to the 425
Agreement and hosting meetings to open the schedule and concept of a new
development.
All of those efforts, and more, resulted in only a handful of realistic investment
scenarios. We were very close on landing a Chinese Automotive collaboration but
the diligence revealed that the acquisition cost would have to be less than $4
million, and. would require a Michigan Strategic Fund. grant in excess of what we
had ever achieved. A China based hotel company was very close to signing, but
Wells Fargo elected to broker the site, which changed the acquisition numbers. A
very strong local developer placed the site under contract but its diligence revealed
that to make any opportunity work the original brownfield would need to be
reinstated. We undertook that question and it was determined that a new
brownfield would be necessary. Unfortunately, the cost of diligence and the inning
M. Peter wehtta?
eli-Niait?,0.' a, NIG
Nge
of the effort resulted in the firm having W walk away as the number became, too
excessive. An of these opportunities were further hampered by the fact that Wells.
Vargo wan not sailing the property, but only the fOreclosure rights and the note, The
-time .and. added Cost alone of completing foreclosure and clahning: title w ao_
prohibitive, to many.
Eti2biTaftt to the entirety.of our .diligence; was deterininod that the site must be
substantially altered to attract :a. user, lit its ourrent - condition, there is-no -a8a that
could: re-plupg se the buildings and parking infrastructure to a .feasible
deVelopmerit. Without substantial.denielition arid •reinediation, the 5ite5 hr
qurrent foxin, cannot he redeveloped.
The conceptual brown:held, whieh._ was ap.pr.ov-ed by the Oakland OeIVAY -Pro.w..rifield
Redevelopment. Authority and confirmed by resolution of theguard of
CominiI5sioners, was an idea fro in this office in ackno.wledgment of the fat: that the
numbers did not work on this site. Unless the foreclosure and note coUld. be •
acqpired for less: than_ $4 million. (noting the broker was given a hard floor eleser. to
$.17inillionY and we could find an additional $20Anillion or more- in incentives, this
site could nut be redeveloped, ERCA therefore recommended the approval of a
concept plan allowing for a 'broa=cl lFbaad capture district. that inahule d
nieaBurabia and qualifying w•enses for both.prior paid and evidenced expenses,
mut necessary futiva improvements, I- plan to attend the sahecitile meeting of .the
BRA on September 15 ; 2016 in the. event you; or -any members have questions
concerning-the extensive effort -undertaken to re-purpose thin blight into a place- for -
jobs and. economic growth.
SDUAha wo4c-ed extensively with Radice to refine a re;---de-veloprnerit
including detailed review and -comment on the proposed brownfield plan. It is the
opinion of this office that the site, which is a detrimental negative influence on area
property valuation and growth, cannot- be re-purposed and developed without Ole
approval and adviinistration of the brownfield plan as submitted for your
consideration. We encourage your diligent consideration and approval.
YOUTS% Sincerely,
Matthew A. GilAN,../
Deputy County Exe cutiv0
ATTACHMENT G
Correspondence from REDICO dated September 15, 2016
20
NCO
September 15,2016
Mr, Peter Webster - Chairman
Oakland County Brownfield Redevelopment Authority
2100 Pontiac Lake Rd— Bldg 4IW
Waterford, MT 4832k
Dear Mr. Webster:
REDICO, headquartered in Southfield, Michigan, is a national real estate development,
investment, construction and property management leader. Our expertise offers a diverse
portfolio of capabilities including: real estate development, investment, asset management,
property management, capital partnering, design, construction, leasing, full-spectrum property
and facility services, advisory services for office, retail, medical office, public works, seniors
housing and entertainment assets. We are the master developer behind Bloomfield Village
Owner LLC and The Village at Bloomfield project, Based on our experience and expertise in
the Oakland County real estate market, the majority of the partially constructed facilities at the
project site are not financially viable to re-use, retain or repair, due to their current condition and
existing real estate market needs.
REDICO's early planning efforts for the Village at Bloomfield incorporated as many
components of the original plan that we could conceivably imagine uses for, under the
assumption that we could find value in the fragments of Bloomfield Park, We looked to ways in
which to reuse the largest and most complete structures, Buildings D and S. In October 2014 we
engaged Desai/Nasr Engineers of Bloomfield Township to evaluate the structural integrity of
these buildings, and what measures it might take to ensure their reuse. The engineers determined
that Building T was constructed to a level that made it especially vulnerable to serious structural
issues: its partially complete roof invites water to intrude at concentrated points, and the
extensive fireproofing of structural members retains this water, This saturation effect in turn
accelerates corrosion and gradual structural deterioration that wasn't evident in other buildings
on the site, Ironically the other less complete structures, although flawed, had aged less
considerably over the seven to eight year period in which they'd stood open and exposed to the
elements.
We believed at the time that Building J might still be salvageable without extraordinary
efforts, and we evaluated whether we could redevelop for multifamily apartments on our own
account. We hired Clark Construction—a General Contractor with whom REDICO has a long
relationship and who happened to be involved in the original Bloomfield Park—to estimate the
costs of repairing the structure, and to conceptually price a scheme for its reuse.
ONE TOWN SQUARE I SUITE 1600 1 SOUTHFIELD I MICHIGAN 48076 I T 248 827 1700 I F 248 827 1717
WWW,REDICO,COM
We knew from the original plans and marketing materials that the building had been
designed for two- and three-bedroom luxury condos in excess of 1,100 square feet, for which
there was questionable marketability then and certainly no demand today, Given the luxury
product the previous developers imagined and the prices they expected residents to pay, interior
courtyard-facing apartments were likely seen as undesirable and so the condo units were planned
in an unusual "single-loaded" corridor design. This arrangement is rarely seen in mid-rise
multifamily construCtion because it is spatially (and economically) inefficient. We engaged
SmithGroupER---a reputable architecture and planning firm—to redesign the interior under the
assumption that we may at some point be permitted to deviate from the original plan and develop
apartment units with more typical and marketable sizes of 700 to 1,000 square feet.
SmithGroup.I.TR determined that the single-loading corridor would have to remain under
any scenario due to the tower's thin floor plate widths. We also observed at this time that the
Building's commercial-grade construction—steel and concrete as opposed to the more typical
and economical "stick-built" structure atop a podium—compounded the Building's inefficiency,
Consequently the redevelopment scenarios could not generate a pro forma return on
investment—every plausible scenario showed a loss of capital.
We nevertheless invited four other developers who had expressed some level of interest
to see if they could make sense of the project (three of whom are among the larger apartment
owners and developers in the US, each having developed and managed well in excess of 10,000
units), along with one well-capitalized upstart_ We toured the property with each of their
respective heads of development and in some eases with their architects and project managers.
The developers repeatedly came to the same conclusion; that Building J had deficiencies that
went beyond its structure, and it was unviable as a multifamily project.
It was on one of these tours that an architect first noticed something that wasn't apparent
during Desai/Nasr's original structural investigations: the bowing of metal studs which can be an
early warning sign that the second floor slab may be collapsing, something we now know to be
the case. As it began to dawn on us that Building I might not even be safe for conducting walk-
throughs, its prospects for reuse dimmed to the point that our focus turned towards demolishing
this structure.
As noted in the professional reports obtained (Desai/Nasr Consulting Engineers, Inc, –
Phase 1 Condition Assessment Report - Updated August 16, 2016; Baker Tilly – Bloomfield
Development Impact Assessment – August 2016), the project site is burdened with eight (8)
structures in various stages of completion, all of which have been qualified as functionally
obsolete by the Oakland County Assessor. It is anticipated that all structures will need to be
demolished, but for one building and one parking structure. All existing structures have been
affected by water incursion, Buildings A, B and C have constant water leakage and ponding
causing concern with the structural integrity of bearing soils with heaving observed on site.
These properties also exhibit concern with damage to the roofing systems.
Building D has similar foundation issues caused by water leakage and ponding. These
concerns extend past the foundation and impacted both the precast plank floor and the
loadbearing concrete masonry walls (ClvlUs). In the parking area of this structure ponding in the
elevator pits and issues with components of the foundation caused by water were also observed.
Building E reflects extensive pending and silt build-up. The deck is incomplete and no drawings
are available. The Desaiasiasr Consulting Engineers, Inc. report specifically notes that without a
complete set of recast shop drawings, erection drawings or fabricated members that this deck
cannot be saved. Building F has the same foundation findings found in A-D, with an additional
finding that the interior pad may not have sufficient frost depth. This building also reflects issues
with loadbearing CMUs. Building .T reflects similar foundation findings as noted in A-D, as well
as notable steel frame corrosion, issues with the precast plank floor system, issues with the
cantilevered deck balconies (cracking and corrosion of the steel deck plate) and concerns with
the loadbearing CMUs. In addition, while access to the high roof was not available, observation
of the low roof indicated that all roofing needed replacement. The 2016 report reflects
emergency shoring is required in order to prevent major structural failure.
Additionally, the property contains super adequacies in design for current market
conditions, particularly as to the parking structures. The existing parking at the site exceeds the
anticipated needs by over 1,550 parking stalls. Deck .1 contains 1,563 additional spaces. 'These
spaces have no known attributable use as adequate parking is designed for each proposed tenant
that is contiguous with the buildings they will occupy. Costs required to repair structural
damages and complete Deck I are projected at $21.5 million. This cost includes the cost
associated to the failing beam which threatens a partial collapse of the second floor at this time.
Retainage of Deck J would continue this situation of super adequacy relative to reasonable
parking on site ranging from over 1,550 to 2,000 parking stalls.
Based upon the above, and in our experience, the re-use, retain or repair of the existing
structures, except for Building D, is not financially viable,
Regards,
Ken Till
Senior Vice President
ATTACHMENT H
Review of Phase 1 — Condition Assessment Report of Bloomfield Park, updated August 16, 2016 by ONCE, Inc.
21
Phase I — Gond tion Assessment Report
of
Bloomfield Park
Bloomfield Township, Michigan
Prepared for:
REDICO
1 Towne Square, #1600
Southfield, MI 48076
Updated: August 16, 2016
ONCE Project No. 8895
Prepared By:
Desai/Nasr Consulting Engineers, Inc.
5765 Daly Road
West Bloomfield, MI 48322
Phone: (248)932-2010
CONSULTING ENGINEERS This report is prepared for sole use by REDICO and Its Direct Client only. The report
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entitles without written permission of RED/CO and Desai/Nasr Consulting Engineers, Inc.
CONSULTING ENGINEERS
Phase I Condition Assessment
Bloomfield Park
Bloomfield Township, MI
TABLE OF CONTENTS
1. Executive Summary
2. Introduction
3. General Building Descriptions
4. Document Review
5. Code Compliance and Accessibility
6. Condition Assessment
7. Floor Plans and Photographs
8. SK-01 Temporary Shoring Detail
Pages 2 — 9
Page 10
Pages 10— 15
Page 15
Page 16
Pages 16 — 30
Pages 31 — 84
Page 85
Page 1 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
1. EXECUTIVE SUMMARY
REDICO, authorized DeSai/Nasr Consulting Engineers to update the Phase I Condition
Assessment for the partially completed building structures located at the Bloomfield Park
Development in Bloomfield Township, Michigan.
The following is a summary of the findings contained in the original Condition Assessment Report
as well as additional issues identified during the visual assessment carried out on Tuesday,
August 9 and Thursday August 11,2016. The latest issues are highlighted in RED.
1.1 Buildings A. B and C
In general the building structure appears have survived the expose to the elements with
little signs of serious structural issues.
1.1.1 Foundations Grade Beams and Slab on Grade
These buildings appear to bear on shallow pad foundations. A major concern is the
effect water is having on the structural integrity of the bearing soils and interior
foundation.
• Testing of the existing soils for bearing capacity and depth of foundations is
required to determine if frost heave and water saturation has negatively
affected the Interior pad foundations.
• Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
Interior slab on grade should be removed and replaced to repair damage
caused by frost heave.
• Many damaged and deteriorated rebar dowels need to be cut of and
replaced with new dowels drilled and epoxy adhered to the foundation
(08/16/16).
1.1.2. Structural Steel Framing
In general, as observed, the structural steel frame is in good condition with only
minor signs of corrosion of exposed steel members.
• in areas of moderate steel corrosion, corroded steel should be cleaned and
corroded bolts replaced.
• Spray applied fire proofing should be stripped and replaced. This will
require a monumental effort especially to remove it from the open web steel
joist members (08/16/16).
• The corrosion observed on multiple steel beams and joists at roof level is
beyond superficial surface corrosion and will require the damaged member
to be removed and replaced or reinforced with steel plates and section in
the field. (08/16/16).
• Metal pan stairs may need to be replaced due to corrosion of thin plate
sections (08/16/16).
Page 2 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
1.1.3 Exterior Facade
The front and side exterior facade is in varying stages of construction.
• The exterior façade should be stripped down to bare steel frame and CMU
backup.
• Waterproofing should be re-applied to exterior CMU before replacing
veneer.
• Damaged cement board siding should be replaced and suitable drain pipes
installed on the stair fewer roofs to prevent further damage.
• Damaged metal panels at the high parapets to be repaired/replaced
(08/16/16).
• Stepped cracking in the interior CMU wall is a sign of frost heave moving
the wall up and down resulting in shear failure of the mortar joints. The
damaged walls and foundation need to be demolished and re-constructed
(08/16/16).
1.1.4 Roof
• Roof membrane and insulation should be inspected and removed and
replaced as required. Potentially all roofing and insulation needs to be
replaced,
1.2 Building D
Two Story Mixed Use
Water and exposure are starting to have a noticeable negative impact on the two story
mixed use portion of building D.
1.2.1 Foundations, Grade Beams and Slab on Grade
The building appears to bear on shallow pad foundations. Water is constantly
leaking into the building, pending and disturbing the soils around the interior and
exterior pad foundations.
• Testing of the existing soils for bearing capacity and depth of foundations is required to determine if frost heave and water saturation has negatively
affected the pad foundations.
• Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
• Interior slab on grade should be removed and replaced to repair damage
caused by frost heave.
• CMU retaining wall on south side to be removed and replaced after
vegetation has been removed.
• Some bent and deteriorated rebar dowels may need to be replaced with epoxy set dowels (08/16/16),
• Removal of excessive mushrooming of exterior concrete grade beams may
be required (08/16/16).
Page 3 of 84
CONSULTING EN G INFERS
Phase 1 Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
1.2.2 Structural Steel Framing
In general, the structural steel framing supporting the roof and 2"d floor appears in
acceptable condition, Minor corrosion of steel and loss of shop applied primer was
observed.
• The condition of the exposed anchor rod threads and nuts need to be
investigated further. The exposed rods and nuts need to be cleaned down
to base metal and their condition assessed (08/16/16).
1.2.3 Precast Plank Floor System
• The precast topping and plank to be dried out. Chain drag tests are
required to identify areas of delamlnation. Delaminated topping should be
removed and replaced as required,
1.2.4 Loadbearing CMU Walls
The Loadbearing CMU walls of the stair and elevator towers as well as the east
partition wall are saturated and showing signs of spelling and deterioration caused
by freeze/thaw cycle.
• After the CMU walls have dried out, a detailed inspection and testing needs
to be carried out. Delaminated and damaged face shells removed and
repaired as required. Additional core grouting may be required to restore
the structural integrity of the loadbearing CMU walls (08/16116).
• Steel bearing plates and beam to bearing plate welds inspected, cleaned
and repaired as required.
• The damage observed appears to be limited to small areas, and has not
compromised the overall structural integrity of the building.
1.2.5 Exterior Facade
• All exterior stone and siding should be removed and reconstructed. The
existing metal stud walls can remain, provided the knee wall at grade is not
damaged.
6.2.6 Roof
No roofing material has been applied to the exposed galvanized metal roof deck.
Continued exposure is resulting in corrosion and deterioration of the roof puddle
welds.
• Puddle welds need to be inspected and tested to ensure adequate load
capacity in shear and tension is still available (08/16116).
Parking Structure
In general the precast parking structure is In excellent conditions even though it has not
been completed,
1.2.7 Foundations, Grade Beams and Slab on Grade
• Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
• Interior slab on grade should be removed and replaced to repair damage
caused by frost heave.
Page 4 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
• Soil Test recommended in saturated areas to ensure adequate soil bearing
capacity is still available (08/16116).
1.2.8 Precast Structural Frame
Minor issues observed during the walk-through that need to be addressed are:
• A small section of un-tcpped Double Tee flange has been damaged.
• The elevator pits are filled with water and need to be inspected to check for
localized damage. The potential for damage is small.
Large areas of epoxy coated reinforcing, concrete topping and concrete
wash still need to be completed.
• The mesh screens at openings in interior Lite Wall along switchback ramp have not all been installed,
• Minor spelling of concrete at corroding lifting inserts is occurring at stair
tower roof planks.
• Graffiti on upper level wails and panels need to be removed.
• Minor spell in concrete wash at roof level.
• Joint sealant between Double Tee's and control joints has not been
applied.
• Exposed epoxy coated VVWF showing signs of corrosion should be
removed and replaced before concrete topping is cast (08/16/16).
• Proper maintenance Is required throughout the parking structure to prevent
water penetrating into the concrete members (especially at grout pockets)
(08/16/16).
1.3 Building E
In general the precast parking structure is in very good conditions even though it has not
been completed.
1.3.1 Foundations, Grade Beams and Slab on 'Grade
• Saturated soils and sift should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed,
1.3.2 Precast Structural Frame
Minor issues observed during the walk-through that need to be addressed are:
• The elevator pits are filled with water and need to be inspected to check for
localized damage. The potential for damage is small.
• The majority of epoxy coated reinforcing placement, concrete topping and
concrete wash still need to be completed,
• Graffiti on walls will need to be removed (08/16/16),
• The mesh screens at openings in interior Lite Wall along switchback ramp have not been installed.
• Minor spelling of concrete at corroding lifting inserts is occurring at stair
tower roof planks.
• Joint sealant between Double Tee's and control joints has not been
applied.
Page 5 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
• Double Tee bearing pads have oozed out (0 to 10% locations) mainly at top
level. When work resumes, the bearing pads will need to be inspected and
reset as necessary (08/16/16).
• The structure is only partially erected. Without a complete set of
precast shop drawings and erection drawings, or fabricated members,
the deck will require extensive re-engineering and modification to
enable completion — major effort to re-engineer required.
1.4 Building F
Building F Is a split level two and three story structure. The structural framing floors and
roof deck are complete, with partial completion of exterior envelope and roof.
1.4.1 Foundations, Grade Beams and Slab on Grade
• Testing of the existing soils for beating capacity and depth of foundations is
required to determine if frost heave and water saturation has negatively
affected the pad foundations.
• Survey of elevations will determine if movement has occurred at interior
foundations.
• Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
• Interior slab on grade should be removed and replaced to repair damage
caused by frost heave.
1.4.2 Structural Steel Framing
Overall, the structural steel frame is in good condition with signs of miner to
moderate corrosion of exposed steel members in limited areas.
In areas of moderate steel corrosion, corroded steel should be cleaned and
corroded bolts replaced. Allowance needs to be made for testing of cleaned
steel to determine corroded area and limited reinforcing of steel by welding new plate to existing sections.
• Stone support angles need to be cleaned and coated with cold galvanizing,
a Zinc Rich Coating (ZRC).
• Spray applied fire proofing should be stripped and replaced.
1.4.3 Structural Floor Slabs
The concrete on composite metal deck floor slabs appear in acceptable condition.
Hairline cracking is noticeable at many areas. The concrete Is generally in
acceptable condition, however, depending upon final floor finish system,
some of these cracks may need to be treated/repaired (08/16116),
1.4.4 Loadbearing CMU Walls
The Loadbearing CMU walls of the stair and elevator towers are saturated and
showing signs of minor deterioration caused by freeze/thaw cycle of trapped water.
CMU walls need to be dried out. A detailed inspection and survey needs to
be carried out, Delaminated and damaged face shells removed and
repaired as required.
• Steel bearing plates and beam to bearing plate welds inspected, cleaned
and repaired as required.
Page 6 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
▪ The damage observed appears to be minor and limited to one stair/elevator
tower, and has not compromised the overall structural integrity of the
building.
1.4.6 Exterior Facade
The front and side exterior facade is in varying stages of construction.
• The exterior façade should be stripped down to bear cold formed metal
framing.
• New sheathing and vapor barrier installed before replacing veneer and
metal panel veneer.
• All interior vapor barrier, sheathing and insulation should be removed and
replaced.
• Few areas show signs of mold formation. All areas will need to be cleaned,
mold will need to be removed using industry acceptable standards
(08/16/16).
1.4.6 Roof
The roof is in varying stages of construction.
• All roof membrane including flashing, carts and insulation should be
removed and replaced.
1.5 Building G
The partially erected steel framing and roof deck appears to be in acceptable condition
with little signs of corrosion or deterioration. The steel frame has not been completely
erected or tightened down or braced.
• The impact of frost heave on foundation could not be assessed. Testing of
foundation depth and condition and survey of foundation elevations would
be required to determine if any adverse movement has occurred.
• If no foundation issues are identified by testing, the steel frame can be
completed as designed and detailed,
• If heaving of the foundation has occurred then the steel framing can be
removed and sold as scrap or reconstructed on new foundation system.
Building G has been completely demolished and the existing foundations removed and
site cleared (08/16/16).
1.6 Building J
Six Story Mixed Use
Water and the elements are starting to have a noticeable negative impact on the exposed
six story mixed use portion of building J.
1.6,1 Foundations, Grade Beams and Slab on Grade
• Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor harrier and slab on grade is installed.
• Interior slab on grade should be carefully assessed and areas of excessive
displacement due to heave removed and replaced.
Page 7 of 84
CONSULTING ENOINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
1.6,2 Structural Steel Framing
In genera!, the structural steel framing on the six story portion of building J is
showing the most severe corrosion. Steel corrosion was observed throughout the
steel framing. Steel corrosion is most severe along the exterior spandrel line facing
the parking structure.
• Sand or shot blast as required to remove spray applied fireproofing and
expose structural steel framing and connections.
• Detailed inspection and testing required to determine the full extent and
severity of steel corrosion.
• Adequate allowance should be made for structural repairs such as bolt
replacement and beam reinforcing with welded plates.
• Significant repairs of structural steel and connection will be required.
• Architectural exposed structural steel canopies need to be removed and
replaced (08116/14
• Cracked concrete will need to be removed and replaced along with steel
spandrel beam repairs (08/16/16).
• The damaged bearing plate and concrete pockets needs to be
addressed or the beam shored to prevent a partial collapse of the 2" floor slab (08/16/16) Refer to attached sketch SK-01 for temporary
shoring details,
1.6.3 Precast Plank Floor System
• The precast topping and plank need to be dried out. Chain drag test will
identify areas of delamination. Delaminated topping should be removed and
replaced as required.
1.6,4 Concrete on Metal Deck Balconies
• Repairs to concrete at cantilevered balconies is required. Deterioration of
concrete has accelerated (08/16/16), •
1.6.5 Loadbearinq CMU Walls
• After the CMU walls have dried out a detailed inspection and survey needs
to be carried out. Defaminated and damaged face shells removed and
repaired as required,
• Steel bearing plates and beam to bearing plate welds inspected, cleaned
and repaired as required.
• The condition of the CMU stair walls is deteriorating rapidly and testing is
required to determine their structural integrity (08/16/16).
1.6.6 Exterior Facade
• The architectural precast wall panels appear in good condition.
• All exterior metal siding, sheathing and cold formed metal studs on the
exterior facade facing the parking structure are in poor condition and should
be removed and replaced.
Large areas of vandalized and broken glass need to be replaced
(08116/16),
Page 8 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
6.6.7 Roof
No access to the high roof was available. The low roof at the second floor appears
in poor condition with ponding, vegetation growth and delamination visible.
• Roofing and insulation should be removed and replaced.
Parking Structure
In general the precast parking structure is in very good condition with its structural frame,
concrete toppings, washes, expansion joints and sealing joints completed.
1,6,8 Foundations, Grade Beams and Slab on Grade
The structural drawings prepared by Rich and Associates indicate that columns
and bearing and shear wall are supported by deep drilled pier foundations,
1.6.9 Precast Structural Frame
Minor issues observed during the walk-through that need to be addressed are:
▪ Minor signs of "crazy cracking" observed in roof level shear wall.
• The elevator pits are filled with water and need to be inspected to check for
localized damage. The potential for damage is small.
• Minor cracking and spalling of concrete wash at precast stairs.
• Graffiti on upper level walls and panels need to be removed.
• Minor spall in concrete wash at roof level near expansion joint.
6.7 Building BP -CIN
DNCE recommends that CMU walls and foundations In this area are removed and
replaced with new construction.
Demolition contractor is currently removing all concrete pad and strip foundation
(08/16/16).
Page 9 of 84
CONSULTING ENGINEERS
Phase 1 Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
2. INTRODUCTION:
Mr. Timothy McCafferty, Vice President Construction, REDICO, authorized Desai/Nasr Consulting
Engineers to update the Phase I Condition Assessment Report prepared by Desai/Nasr in 2014
for the existing partially completed buildings located at the Bloomfield Park Development in
Bloomfield Township, Michigan.
A walk-through of the captioned property was conducted on Tuesday, August 9 and Thursday
August 11, 2016, The walk-through was conducted by Marc Steinhobel, PE, SECB and Mr, Jay
Desai, PE, SE, SECB, CBIE Desai/Nasr Consulting Engineers, Inc.
The purpose of the walk-through was to assess the general condition of the partially constructed
structures. The walk-through inspection was limited to observations of elements that are readily
accessible and visible. For many building types, this means that portions of the structure will not
be observed because they are concealed by finishes or fireproofing. Reasonably accessible
structural components, such as structure above "lay-in" type ceilings were observed on an
intermittent basis, and where building structural components have been intentionally left exposed
by assumed design intent.
No destructive or non-destructive testing was performed. As such although it Is useful for
detecting gross issues, it may not detect every issue, especially subtle or hidden conditions.
The scope of the report does not include full ADA compliance (although general compliance to
current ADA requirements was visually assessed). Environmental issues, such as mold,
asbestos, or any other hazardous material should be covered in the Phase I Environmental Site
Assessment.
3. GENERAL BUILDING DESCRIPTIONS
Nine partially completed structures were observed during the site visit. A brief description of the
construction type and material for each follows:
3.1 Buildings A, B and C
Buildings A, B and C are mixed use retail and office spaces. All are similar In construction
type and material. They are all two story steel framed structures bearing on conventional
pad foundations. Portions of the back and sides of each building is single story with stair
towers projecting through the lower roofs for access to the second floor space. Interior pits
and floor openings are provided for elevator shafts.
EPDM roofing membrane over rigid insulation supported by 1 1/2" galvanized steel roof
deck span to open web steel joists. The steel joists are spaced at approximately 6 feet
centers and supported by steel beams. The steel beams span to wide flange steel
columns. The roof steel slopes to internal roof drains.
Second floor construction is concrete slab on steel floor deck spanning to open web steel
joists and beams.
Lateral wind and seismic forces are resisted by tube steel "X bracing and steel moment
frames.
Page 10 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Spray on fireproofing has been applied to joists, beam and columns below concrete floor
and deck, joists, beams and columns below the roof areas. Spray on fireproofing
operations is in various stages of completion.
The exterior façade is constructed of Cast Stone Masonry veneer over 8" Concrete
Masonry Units (CMU) backup on the front and side facades, Steel tubes and brick frames
support CMU and veneer above the second floor and window openings.
The exterior back wall Is constructed of painted single wythe CMU. The second floor area
adjacent to the lower roof is painted fiber cement panels and battens supported by cold
formed metal studs with batt insulation between the studs.
Limited areas of slab on grade are present with an exterior concrete strip along the back
side of each building.
The estimated leasable building areas of each building as provided on Built Form
Architecture Drawings are:
• Building A = 58,947sft
9 Building B = 61,812sft
• Building C = 37,570sft
3.2 Buildfrip D
Building D is a mixed use with retail, entertainment and parking spaces. Constructed of a
two story combined steel frame and loadboaring CMU building adjacent to a 9 level double
ramp precast concrete parking structure. It appears the two story building bears on
conventional pad foundations. The 9 level parking structure bears on deep drilled piers
with an allowable bearing of 60ksf.
An expansion joint separates the two StrUctures along the north and west interface.
The two story building is EPDM membrane roofing over rigid insulation supported 1 1/2"
steel roof deck spanning to steel beams spaced approximately 6 feet on centers. Steel
beams are supported by interior steel girders and exterior spandrel beams on the north,
west and south sides, Steel girders and spandrel beams are supported by wide flange,
round and square hollow structural sections (pipes and tubes). The ioadbearing CMU
partition wail adjacent to the parking structure on the east side provides support for the
steel beams arid girders.
The elevated second floor structure is 2" topping on 8" precast cast hollow core planks
spanning to steal girders. The steel girders are supported by steel columns and
load bearing CMU walls.
Lateral wind and seismic forces are resisted by CMU shear walls located in the stair towers and along the east partition wall.
The exterior façade is constructed of Cast Stone Masonry veneer with 8" Concrete
Masonry Units (CMU) backup at the south recess. The remaining south, west and north
Page 11 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
CONSULTING ENRINEERS
facades are exposed sheathing supported by cold formed metal studs. No insulation nor
interior drywall is present.
Limited areas of slab on grade are present in the building located at the southwest corner.
The attached 9 level parking structure is pre-stressed precast concrete. The dock is three ramped 60 feet bays wide. Two bays slope in one direction and remaining bay switched
back. Precast Double Tee's span north-south supported by:
• Spandrel panels and columns on the south side,
• Lite Wall panels at the first interior bay, at the ramp switchback,
• Inverted Tee beams at the second interior bay and end bays, and
• Architectural Wall panels with window openings on the south side.
Spandrel panels provide vehicle and safety barriers on the east and west sides. Precast
wall panel and embedded steel tubes frame around precast stairs located on southeast,
southwest and northwest corners. Two elevator towers surrounded by precast panels are
located adjacent to southwest and northwest stairs.
The majority of the precast Double Tee's are pre-topped with recesses for diaphragm
reinforcing and concrete wash at the ends. A limited amount of un-topped Double Tee's
are located above the high bay restaurant and retail areas on northeast corner.
The lower levels ramp down below grade to various depths with solid precast planks used
to provide recessed areas which may have been provided to accommodate mechanical
and electrical systems. The below grade areas are surrounded by cast-in-place concrete
retaining walls.
Lateral wind and seismic forces are resisted by precast shear walls.
The complete, precast frame has been erected but field work has not been completed.
The estimated gross building area as provided on Meacham & Apel Architects Drawings is
483,665sft.
3.3 Building E
Building E is a partially completed 6 level precast parking structure with retail space an the
first floor. Approximately 60% of the structure has been completed. Foundation and
elevator pits exposed on the remaining site.
The structure is pre-stressed precast concrete. The deck is two approximately 60 feet
bays wide. One bay slopes to provide access ramp. The overall length is 424-10" with an
expansion joint breaking the deck in two.
The precast Double Tee's span north-south and supported Spandrel Panels an the south
side, Light Wall panels at the center and Architectural wall panels on the north side. The
Architectural wail panels extend around the west and part of the south façade.
Page 12 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
One stair and elevator towers surrounded by precast panels is constructed near the
southwest corner. A partially completed elevator tower is located at the east end of the
erected structure. A pit for an additional elevator tower is located along the southeast side.
The majority of the precast Double Tee's are pre-topped with recesses for diaphragm
reinforcing and concrete wash at the ends. A limited amount of un-topped Double Tee's
are located on the lower levels assumed to be over occupied spaces below.
The lower level ramp down below grade with solid precast planks used to provide
recessed areas which may have been provided to accommodate mechanical and
electrical systems. The below grade areas are surrounded by cast-in-place concrete
retaining walls.
The estimated gross building area as provided on Meacham & Apel Architects Drawings Is
205,501sft.
3,4 Building F
Building F is mixed use with retail on the first floor and offices above. Structure is a partial
two/three story steel frame with loadbearing CMU building stair and elevator towers. It
appears the building bears on conventional pad foundations.
The building is EPDM membrane roofing over rigid insulation supported 1 1/2" steel roof
deck spanning to steel beams spaced approximately 6 feet on centers. Steel beams are
supported by interior steel girders and exterior spandrel beams. Steel girders and spandrel
beams are supported by wide flange structural steel columns. The loaelbearing CMU wall
around the stair and elevator shafts provides support for the steel beams and girders in
lieu of columns.
The elevated second and partial 3rd floor structure is concrete topping on 2" composite
steel floor deck spanning to composite steel bearns,and composite steel girders.
Lateral wind and seismic forces are resisted by tube steel "X" bracing in east-west
direction and moment resisting steel framing in the north-south direction.
An expansion joint splits the building located on the west side of the south recessed area.
The exterior facade is constructed of Cast Stone Masonry veneer, vapor barrier and
plywood sheathing supported by cold formed metal stud backup. The construction of the
facade is incomplete, exposing the vapor barrier and sheathing in areas.
The estimated gross building area as provided on Meacham & Apel Architects Drawings is
117,572sft.
3.5 Building G
Building G is a partial completed single story high bay exposed steel frame, retail space.
Partially completed 1 1/" steel roof deck spans to incomplete open web steel joists
spanning to steel girders supported by steel wide flange and square tube columns. The
columns bear on conventional shallow pad foundations.
Page 13 of 84
CONSULTING ENGINEERS
Phase] Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Lateral wind and seismic forces appear to be resisting by steel moment frames in both
directions.
The steel frame has not be completed, properly shaken out (aligned and bolted together)
and temporary erection cables are still in-place as temporary stabilization.
The estimated building area as provided on Meacham & Apel Architects Drawings is
33,477sft.
Building G has been demolished and all foundation removed from site (08/16/16).
3.6 Building J
Building J is a mixed use building with a six story combined steel frame and loadbearing
CMU building adjacent to an 8 level double ramp precast concrete parking structure. It
appears the six story building bears on conventional pad foundations. Per the structural
drawings the 8 level parking deck bears on deep drilled pier foundations with an allowable
bearing pressure of 60ksf.
An expansion joint separates the two structures along the south and east interface.
The six story, u-shaped building is EPDM membrane roofing over rigid insulation
supported by precast concrete hollow core planks spanning to steel beams. Steel beams
are supported by interior steel girders and exterior spandrel beams. Steel girders and
spandrel beams are supported by wide flange steel columns.
The elevated floor structure Is 2" topping on 8'' precast cast hollow core planks spanning
to steel girders and spandrel beams. The steel girders are supported by steel columns and
loadbearing CMU walls. The steel girders are tucked up into the precast planks to reduce
the overall depth of the floor plate.
The interior portion between the parking structure and u-shaped six story is single story
with roof aligning with the 2nd floor.
Lateral wind and seismic forces appear to be resisted by CMU shear wails located in the
stair towers. Steel moment resisting frames may be used but spray on fireproofing
prevented a clear assessment of the beam to column connections.
The exterior façade is constructed of architectural precast wall panels supported at each
floor level with vapor barrier and sheathing supported by cold-formed metal stud backup
on the east, south and west sides. The exterior facade on the interior sides of the u-shape
are metal panels attached over vapor barrier and sheathing that is backed up with cold-
formed metal studs.
Concrete on metal deck balconies cantilever out from the sides of the structure at the
upper levels.
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Bloomfield Township, MI
CONSULTING ENGINEERS
The attached 8 level parking structure is pre-stressed precast concrete. The deck Is three
ramped approximately 60feet bays wide. Two bays slope in one direction and remaining
bay switched back. Precast Double Tee's span east-west are supported by:
• Spandrel panels and columns on the west side,
• Lite Wall panels at the first interior bay, at the ramp switchback,
• Inverted Tee beams at the second Interior bay and end bays, and
• Architectural wall panels with window openings on the east side.
Spandrel panels provide vehicle and safety barriers on the north and south sides. A
precast stair tower is located on the northwest corner. Two stair and elevator towers are
located on the south and east sides.
An expansion joint splits the deck, into four column bays to the south and five bays on the
north.
The concrete washes are completed and joints between precast Double Tee's have been
caulked. The top level of the deck appears to have a sealing coat applied to the upper
surface.
The lower level ramp down below grade to various depths used to provide recessed areas
which may have been provided to accommodate mechanical and electrical systems, The
below grade areas are surrounded by cast-in-place concrete retaining walls.
Lateral wind and seismic forces are resisted by precast shear walls.
The estimated gross building area as provided an Meacham & Ape] Architects Drawings is
711,699sft
3.7 Building BP-CIN
Building BP-CIN consists of exposed foundation and partially completed reinforced CMU
wails and pits.
The estimated building area as provided on NF Engineers ALTAJACSM Land Title Survey
is not provided.
Building BP-CIN has been demolished and all foundation removed from site (08116/16),
4. DOCUMENT REVIEW
After completion of the walk-through in 2014, REDICO provided Desai/Nasr with a set of Revised
Site Submission Drawings dated 09126/08, prepared by Meacham & Ape] Architects located in Columbus, OH (buildings 0, E, F and J), and Built Form Architecture located In Chicago, II
(buildings A, B and C). The site submission drawings do not contain any structural information but
do provide valuable information regarding the layout, geometry and general architecture including
exterior finishes. These drawings were utilized to assist in assessment and highlight structural
issues observed.
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Bloomfield Park
Bloomfield Township, Ml
CONSULTING ENGINEERS
A full set of structural drawings for the parking structures at buildings D and J prepared by Rich &
Associates dated 08/27/07 were also in the documents provided by REDICO. The structural
drawings match the conditions observed in the field.
5. CODE COMPLIANCE AND ACCESSIBILITY
New buildings and building renovations completed after 1992 are required to comply fully with the
Americans with Disabilities Act Accessibility Guidelines (ADAAG).
A full ADA Compliance Survey was net included in the scope of this report and actual
measurements were not taken to verify compliance. Limited visual observations of the rest rooms
and accessible routes, concluded that the facility appears to be in general compliance with ADA
requirements.
6. CONDITION ASSESSMENT
The sections to follow further describe the findings noted in Section 1 EXECUTIVE SUMMARY of this report. Visible issues, deterioration and / or defects that were observed
during the condition assessment are noted or highlighted with photographic references.
The general observed conditions, and those issues that were observed and noted as
exceptions, are detailed below for each section. The original observation are captioned in
black, with all new observations from the August 2016, site visits added in RED.
6.1 Buildings A, B and C
In general the building structure appears have survived the exposure to the elements with
little signs of serious structural issues (as observed in 2014) (Refer to photograph. PA-1 in
Section 7 at the end of the Report). Over the past two years there has been 6cidiVonal noticeable deterioration of the structural components. These issues are added to the
original observations (08/16/16).
6.1.1 Foundations, Grade Beams and Slab on Grade
These buildings appears to bear on shallow pad foundations. Water is constantly
leaking into the building, pending and disturbing the soils around the interior and
exterior pad foundations (refer to photograph PA-2, PA-3). There is a significant
water leak in Building B which has saturated the loose soils around the adjacent
foundations and floor slab (refer to photograph PA-12)(08/16/16).
A major concern is the effect this water is having on the structural integrity of the
bearing soils. Saturation and erosion of the soils may have reduced the load
bearing capacity of the in-situ foundations.
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Bloomfield Park
Bloomfield Township, MI
Depending on the design and construction factors the interior foundation may or
may not have been extended to frost depth. If the foundation does not extend to
frost depth potential problems related to frost heave may exist, however, no clear
sign of these problems were observed In any of the steel framing or elevated
structure.
Heaving due to freeze thaw cycle was observed in the areas of slab on grade
(refer to PA-4). Cracks in slab on grade due to frost heave continue to grow and
widen (08/16/16).
Rebar extending out of perimeter grade beams continue to corrode and many are
bent beyond their yield limit (refer to PA-13)(08/16/16).
Comments/Recommendations:
o Testing of the existing soils for bearing capacity and depth of
foundations is required to determine if frost heave and water
saturation has negatively affected the pad foundations.
o Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
o Interior slab on grade should be removed and replaced to repair
damage caused by frost heave.
o Many damaged and deteriorated rebar dowels need to be cut off
and replaced with new dowels drilled and epoxy adhered to the
foundation (08/16/16).
6.1.2 Structural Steel Framing
In general, as observed, the structural steel frame is in good condition with only
minor signs of corrosion of exposed steel members. Very limited and small areas
of moderate steel corrosions was observed. The areas of moderate corrosion are
not significant and will not adversely affect structural integrity.
Continued exposure has resulted in moderate to severe corrosion of several beam
and roof joists in Buildings A and B. This corrosion has developed significant rust
pack and a detailed investigation and field testing would be required to determine
the structural integrity of these members (refer to PA-14) (08/16/16).
Projecting anchor rod threads and nuts continue to corrode and deteriorate.
Testing would be required to determine the structural integrity of these parts (refer
to PA-15) (08/16/16).
Spray applied fire proofing has weathered and is damaged to varying degrees.
The majority of the spray applied fire proofing is beyond repair and will all need to
be removed and re-applied (08/16/16).
The metal pan stairs are showing signs of moderate to severe corrosion (refer to
PA-16) (08/16/16).
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Bloomfield Park
Bloomfield Township, MI
Comments/Recommendations:
o In areas of moderate steel corrosion, corroded steel should be
cleaned and corroded bolts replaced.
o Spray applied fire proofing should be stripped and replaced. This
will require monumental effort, especially to remove it from the open
web steel joist members (08/16/16).
o The corrosion observed on multiple steel beams and joists at roof
level is beyond superficial surface corrosion and will require the
damaged member to be removed and replaced or reinforced with
steel plates and section in the field (08/16/16).
o Metal pan stairs may need to be replaced due to corrosion of thin
plate sections (08/16/16).
6,1.3 Exterior Facade
The front and side exterior façade is in varying stages of construction. There are
areas Of exposed CMU backup where the applied waterproofing has washed off
(refer to PA-5). There are areas of partial to full height stone veneer. There are
areas where the windows have been installed and sealed (refer to PA-6).
The back facades of painted CMU and painted cement board siding is generally in
good condition with some minor cracking observed at steel lintels located next to
masonry control joints (refer to PA-7). Weathering and damage to cement board
siding was observed at roof scupper where high roof of stair towers drawings onto
lower roof (refer to PA-8).
The condition of the cement board siding had deteriorated substantially with more
paint pooled off and cracked and damaged boards observed (refer to PA-17)
(08/16/16).
The metal panel parapet is beginning to come apart with many loose panels
observed on buildings A, B and C (refer to PA-18) (98/16/16).
Cracking and damage to veneer was observed at one location of building B (refer
to PA-9).
Stepped cracking in interior CMU wall observed at Building C (refer to PA-19)
(08/16/16).
Comments/Recommendations:
o The exterior façade should be stripped down to base steel frame
and CMU backup.
a Waterproofing should be re-applied to exterior CMU before
replacing veneer.
o Damaged cement board siding should be replaced and adequate
drain pipes installed to prevent further damage.
o Damaged metal panel parapet to be repaired/replaced (08/16/16).
o The stepped cracking in the interior CMU wall is a sign of frost
heave moving the wall up and down resulting in shear failure of the
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Bloomfield Park
Bloomfield Township, MI
mortar joints. The damaged walls and foundation need to be
demolished and re-constructed (08116/16),
6.1.4 Roof
The roof is in varying stages of construction, Large areas of the roofing
membranes and insulation appear intact and weatherproofed (refer to PA-10).
However, there are areas that are damaged, delaminated or incomplete (refer to
PA-11),
Comments/Recommendations:
o Hoof membrane and insulation should be inspected and removed
and replaced as required. Potentially all roofing and insulation
needs to be replaced.
6.2 Building D
Two Story Mixed Use
Water and the elements are starting to have a noticeable negative impact on the exposed
two story mixed use portion of building D.
6.2A Foundations, Grade Beams and Slab on Grade
The building appears to bear on shallow pad foundations. Water is constantly
leaking into the building, ponding and disturbing the soils around the interior and
exterior pad foundations (refer to photograph P0-1).
A major concern is the effect this water is having on the structural integrity of the
bearing soils. Saturation and erosion of the soils may have reduced the load
bearing capacity of the in-situ foundations.
Depending on the design and construction factors the interior foundation may or
may not have been extended to frost depth. If the foundation do not extend to frost
depth potential problems related to frost heave may exist, however, no clear sign
of these problems were observed in any of the steel framing or elevated structure.
Heaving due to freeze thaw cycle of the slab on grade was observed in the
masonry enclosed stair towers (refer to PD-2 and PD-3). Frost heave continued to
deteriorate the slab on grade (08116116).
The south side of the first floor is higher than the exterior grade. The interior grade
is retained by a low reinforced and grouted CMU knee wall. The vegetation and
trees growing adjacent to the knee wall have displaced it horizontally (refer to PD-
4)
The rebar dowels extending out of the exterior perimeter strip foundation are
corroding and bent over. The exterior strip foundation along the north and east
sides appears to have excessive mushrooming that may be causing frost heave
issues (refer to PD-31) (08/16/16).
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Bloomfield Park
Bloomfield Township, Ml
Comments/Recommendations:
o Testing of the existing soils for bearing capacity and depth of
foundations is required to determine if frost heave and water
saturation has negatively affected the pad foundations.
o Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
o Interior slab on grade should be removed and replaced to repair
damage caused by frost heave.
o CMU retaining wall on south side to be removed and replaced after
vegetation has been removed.
o Some bent and deteriorated rebar dowels may need to be replaced
with epoxy set dowels (08/16/16).
o Removal of excessive mushrooming of exterior concrete grade
beams may be required (08/16/16),
6.2.2 Structural Steel Framing
In general, the structural steel framing supporting the roof and 2nd floor appears in
acceptable condition. Minor corrosion of steel and loss of shop applied primer was
observed primarily along the east &de where the steel frames into the loadbearing
CMU partition wall (refer to PD-5), Some bolts at roof level may need to be
removed and replaced due to corrosion (08116/16),
Corrosion of anchor rods and nuts at base of columns continues. It is now at a
stage where it is deteriorating the bolt threads (refer to P0-32) (08/16/16).
Comments/Recommendations:
o Sand or shot blast as required to remove moderate rust scale and
apply primer coat.
o The condition of the exposed anchor rod threads and nuts need to
be investigated further. The exposed rods and nuts need to be
cleaned down to base metal and their condition assessed
(08/16/16).
6.2.3 Precast Plank Floor System
The precast floor system has a complete 2" concrete topping, The entire floor
system is saturated by free flow of water through unfinished root (refer to PD-6).
The amount of water impacting the topping is resulting in deterioration of the
concrete topping (refer to P0-7).
Water leaking through roof continues to weather and deteriorate the concrete
topping (refer to P0-33) (08/16/16).
Comments/Recommendations:
o The precast topping and plank to be dried out. Chain drag tests can
identify areas of delamination. Delaminated topping should be
removed and replaced as required. It can be assumed that large
areas of concrete topping will need to be removed and replaced
(08/16/16).
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Bloomfield Park
Bloomfield Township, Ml
6.2.4 Loadbearing CMU Walls
The Loadbearing CMU walls of the stair and elevator towers as well as the east
partition wall are saturated and showing signs of spalling and deterioration caused
by freeze/thaw cycle of trapped water (refer to PD-8, P0-9 and P0-10), The water
infiltration appears to be worst at the beam bearing pockets (refer to PD-11).
Trapped water freezing and thawing continues to damage and deteriorate the
Loadbearing CMU walls (refer to P0-34) (08116116).
Vertical cracks in CMU wall observed (refer to P0-35). May be caused by frost
heave of interior foundations (08/16/16).
• Comments/Recommendations:
o CMU wails need to be dried out. Inspection and survey needs to be
carried out. Delaminated and damaged face shells removed and
repaired as required. Additional core grouting may be required to
restore the structural integrity of the loadbearing CMU walls
(08/16/16).
o Steel bearing plates and beam to bearing plate welds inspected,
cleaned and repaired as required.
o The damage observed appears to be limited to small areas, and has
not compromised the overall structural integrity of the building.
6.2.5 Exterior Facade
Only a small area of stone veneer has been constructed on the south side (refer to
P0-12). The remaining facades are exposed, damaged and deteriorated sheathing
on cold formed metal stud backup (refer to PD-13).
• Comments/Recommendations:
o All exterior stone and siding should be removed and reconstructed.
The existing metal stud walls can remain provided the knee wall at
grade is not damaged.
6.2.6 Roof
No roofing material has been applied to the exposed galvanized metal roof deck.
The metal deck appears in good condition with minor corrosion observed at the
deck to beam puddle welds (refer to P0-14).
Continued exposure is resulting in corrosion and deterioration of the roof puddle
welds (refer to P0-36) (08/16/16).
Comments/Recommendations:
o Puddle welds need to be inspected and tested to ensure adequate
load capacity in shear and tension is still available (08/16/16).
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Bloomfield Park
Bloomfield Township, MI
Parking Structure
In general the precast parking structure is in very good condition even though it has not
been completed. (Refer to PD-15).
6.2.7 Foundations, Grade Beams and Slab on Grade
The structural drawings prepared by Rich and Associates indicate that columns
and bearing and shear wall are supported by deep drilled pier foundations.
Extensive ponding, silt buildup and erosion of soils due to uncontrolled storm water
was observed in the on grade portions of the parking structure (refer to PD-16, PD-
17 and PD-18).
Erosion of soils around interior columns continues with tops of foundation now
exposed (refer to PD-37) (08116116).
Heaving due to freeze thaw cycle was observed in the areas of slab on grade at
the southwest elevator tower (refer to PD-19).
Comments/Recommendations:
o Saturated soils and silt should he removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed,
o Interior slab on grade should be removed and replaced to repair
damage caused by frost heave.
o Test soils in saturated areas to ensure adequate soil bearing
capacity is still available (08/16/16).
6.2,8 Precast Structural Frame
The precast framing members consisting of Double Tee's, Inverted Tee beams,
Light Walls, Spandrel panels, Architectural wall panels and columns are all in
excellent condition (refer to P0-20, PD-21 and P0-22). Minor issues observed
during the walk-through follow:
• A small section of un-topped Double Tee flange has been damaged (refer
to PD-23)
• The elevator pits are filled with water and need to be inspected to check for
localized damage (refer to PD-24). The potential for damage is small.
• Large areas of epoxy coated reinforcing, concrete topping and concrete
wash still need to be completed (refer to PD-25 and PD-26).
• The mesh screens at openings in interior Lite Wall along switchback ramp
have not all been installed (refer to PD-27).
• Minor spelling of concrete at corroding lifting inserts is occurring at stair
tower roof planks (refer to P0-28).
• Graffiti on upper level walls and panels need to be removed (refer to PD-
29).
• Minor spell in concrete wash at roof level (refer to P0-30).
• Joint sealant between Double Tee's and control joints has not been applied
(refer to P0-20).
• Exposed epoxy coated Welded Wire Fabric VVVVF is beginning to show
signs of corrosion (refer to PD-38) (08/16/16).
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Bloomfield Park
Bloomfield Township, MI
CONSULTING ENGINEERS
• Minor signs of "crazy cracking" observed at top of precast columns. This is
caused by lack of maintenance of the grout plugs used to fill pockets at
lifting inserts (refer to P0-39 and P0-40) (08116/16).
• Comments/Recommendations:
o In general the precast structure is in excellent condition with only
minor issues that need to be addressed as detailed above,
o Exposed epoxy coated WWF showing signs of corrosion should be
removed and replaced before concrete topping is cast (08116/16).
o Proper maintenance is required throughout the parking structure to
prevent water penetrating into the concrete members (especially at
grout pockets) (08/16/16).
6.3 Building E
In general the precast parking structure is in very good condition even though it has not
been completed. (Refer to photograph PE-1).
6,3.1 Foundations, Grade Beams and Slab on Grade
It is assumed that this structure bears on deep drilled pier foundations similar to
the parking structure at D and J. No structural drawings of this deck are available,
Extensive ponding, silt buildup and erosion of soils due to uncontrolled storm water
was observed in the on grade portions of the parking structure (refer to PE-2). The
soil wash and erosion does not appear to have negatively impacted the cast-in-
place concrete structures.
• Comments/Recommendations:
o Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed
6.3.2 Precast Structural Frame
The precast framing members consisting of Double Tee's, Inverted Tee beams,
Light Walls, Spandrel panels, Architectural wall panels and columns are all in
excellent condition. The (refer to PE-3, PE-4 and PE-5). Minor Issues observed
during the walk-through follow:
• The elevator pits are filled with water and need to be inspected to check for
localized damage (refer to PE-6). The potential for damage is small.
• The majority of epoxy coated reinforcing placement, concrete topping and
concrete wash still need to be completed (refer to PE-7 and PE-8).
• The mesh screens at openings in interior Lite Wall along switchback ramp
have not been installed.
• Minor spoiling of concrete at corroding lifting inserts Is occurring at stair
tower roof planks (refer to PE-9).
• Joint sealant between Double Tee's and control joints has not been applied
(refer to PE-10).
• Graffiti on walls observed (refer to PE-11) (08/16/16).
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Bloomfield Park
Bloomfield Township, MI
GONSULTiNG ENGINEERS
,• Double Tee bearing pad have oozed out (8 to 10% of locations) mainly at
the top level (refer to PE-12, PE-13 and PE-14) (08/16/16).
Comments/Recommendations:
o In general the partially erected precast structure is in excellent
condition with only minor issues that need to be addressed as
detailed above.
o The remaining exposed foundation appears to be in acceptable
condition,
o Graffiti on walls needs to be removed. (08/16/16).
o Double Tee bearing pads will need to be inspected and up to 10%
will need to be reset as necessary (08/16/16).
o The structure is only partially erected. Without a complete set
of precast shop drawings and erection drawings, or fabricated
members the deck will require extensive re-engineering and
modification,
6.4 Building F
Building F is a split level two and three story structure. The structural framing floors and
roof deck are complete, with partial completion of exterior envelope and roof (refer to
photograph PF-1).
6.4,1 Foundations, Grade Beams and Slab on Grade
These buildings appear to bear on shallow pad foundations. Water is constantly
leaking into the building, ponding and disturbing the soils around the interior and
exterior pad foundations (refer to PF-2 and PF-3),
A major concern Is the effect this water is having on the structural integrity of the
bearing soils, Saturation and erosion of the soils may have reduced the load
bearing capacity of the in-situ foundations.
Depending on design and construction factors, the interior foundation may or may
not have been extended to frost depth. If the foundation does not extend to frost
depth, potential problems related to frost heave may exist, however, no clear sign
of these problems were observed in any of the steel framing or elevated structure.
Heaving due to freeze thaw cycle was observed in the areas of slab on grade
(refer to PF-4).
• Comments/Recommendations:
o Testing of the existing soils for hearing capacity and depth of
foundations is required to determine if frost heave and water
saturation has negatively affected the pad foundations.
o Survey of elevations will determine if movement has occurred at
interior foundations.
o Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
o interior slab on grade should be removed and replaced to repair
damage caused by frost heave.
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Bloomfield Park
Bloomfield Township, MI
6,4.2 Structural Steel Framing
Overall, the structural steel frame Is in good condition with signs of minor to
moderate corrosion of exposed steel members in limited areas.
Minor to moderato corrosion of steel was observed at the base of the steel
columns and base plates (refer to PF-5).
Minor to moderate steel corrosion has occurred along the line of the central
expansion joint (refer to PF-6 and PF-7).
Moderate corrosion observed at steel beam and column framing on second floor
below low roof area (refer to PF-8 and PF-9).
Stone support angles attached to channel frames are not galvanized and showing
signs of minor corrosion (refer to PF-10).
Spray applied fire proofing has weathered and is damaged to varying degrees.
Comments/Recommendations:
• In areas of moderate steel corrosion, corroded steel should be
cleaned and corroded bolts replaced. Allowance needs to be made
for testing of cleaned steel to determine corroded area and limited
reinforcing of steel by welding new plate to existing sections.
o Stone support angles need to be cleaned and coated with cold
galvanizing, a Zinc Rich Coating (ZRC),
o Spray applied fire proofing should be stripped and replaced,
6.4.3 Structural Floor Slabs
The concrete on composite metal deck floor slabs appear in acceptable condition.
Minor shrinkage cracking along column lines, typical to this type of construction
were observed (refer to PF-11).
Hairline cracking Is noticeable at many areas. Generally in acceptable condition,
however, depending on final floor finish system, some of these crack may require
treatment/repair (refer to PF-18 and PF 18) (08/16/16).
6.4.4 Loadbearine CMU Walls
The Loadbearing CMU walls of the stair and elevator towers are saturated and
showing signs of minor deterioration caused by freeze/thaw cycle of trapped water
(refer to PF-12 and PF-13).
Comments/Recommendations:
o After the CMU walls have dried out a detailed inspection and survey
needs to be carried out. Delaminated and damaged face shells
removed and repaired as required.
o Steel bearing plates and beam to bearing plate welds inspected,
cleaned and repaired as required.
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Bloomfield Park
Bloomfield Township, MI
o The damage observed appears to be minor and limited to one
stair/elevator tower, and has not compromised the overall structural
integrity of the building.
6.4.5 Exterior Facade
The front and side exterior façade is in varying stages of construction.
Areas have stone veneer Installed to varying heights (refer to PF-14). Areas where
vapor barrier has weathered away and plywood sheathing is warped and
weathered (refer to PF-15). Areas with bare cold formed metal stud framing is in
place.
Interior exposed soffit sheathing and Insulation are- showing signs of deterioration
and mold at recessed balcony on northwest corner (refer to PF-16)
Few areas show signs of mold formation (refer to PF-20 through PF-22)
(08/16/16).
Comments/Recommendations:
o The exterior façade should be stripped down to bare cold formed
metal framing.
o New sheathing and vapor barrier installed before replacing veneer
and metal panel veneer.
o All interior vapor barrier, sheathing and insulation should be
removed and replaced.
o All areas showing signs of mold will need to be cleaned. Mold
removal will need to be compliant with industry acceptable
standards (08/16116).
6.4.6 Roof
The roof Is in varying stages of construction. Large areas of the roofing
membranes and insulation appear intact and weatherproof. However, there is a
large area on the lower roof that has no roof membrane and the exposed insulation
is saturated (refer to PF-17).
• Comments/Recommendations:
• All roof membrane and insulation should be removed and replaced.
6.5 Buildinci G
The partially erected steal framing and roof deck appears to be in acceptable condition
with little signs of corrosion or deterioration. The steel frame has not been completely
erected or tightened down or braced (refer to photograph PG-1). The depth of interior
foundation could not be assessed, nor the impact of potential frost heave (refer to PG-2).
Building G has been demolished and its foundation removed (08/16/16).
Comments/Recommendations:
o The impact of frost heave on foundation could not be assessed.
Testing of foundation depth and condition and survey of foundation
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Bloomfield Township, MI
elevations would be required to determine if any adverse movement
has occurred.
o If no foundation issues are identified by testing the steel frame can
be completed as designed and detailed.
o If heaving of the foundation has occurred then the steel framing can
be removed and sold as scrap or reconstructed on now foundation
system.
6.6 Building J
Six Story Mixed Use
Water and the elements are starting to have a noticeable negative impact on the exposed
six story mixed use portion of building J (refer to photograph PJ-1).
6.6.1 Foundations, Grade Beams and Slab on Grade
The building appears to bear on shallow pad foundations. Water is constantly
leaking into the building, ponding and disturbing the soils around the interior and
exterior pad foundations (refer to PJ-2).
Heaving due to freeze thaw cycle of the slab on grade was observed in the interior
areas throughout (refer to PJ-3).
• Comments/Recommendations:
O Saturated soils and silt should be removed and the sub-grade re-
compacted before new vapor barrier and slab on grade is installed.
o Interior slab on grade should be carefully assessed and areas of
excessive displacement due to heave removed and replaced.
6,6.2 Structural Steel Framing
In general, the structural steel framing on the six story portion of building J is
showing the most severe corrosion. Steel corrosion was observed throughout the
steel framing;
• the base of the steel columns (refer to PJ-4),
• the beams supporting the second floor roof area (refer to PJ-5),
• columns supporting upper levels (refer to PJ-6),
• Beams framing into interior loadbearing CMD stair/elevator towers (refer to
PJ-7). Corrosion of top flange is severe enough to crack and displace
concrete topping (refer to PJ-8),
• Spandrel beams exposed to elements (refer to PJ-9), and
• Beam to column connections (refer to PJ-10).
Steel corrosion is most severe along the exterior spandrel facing the parking
structure. This is due to water infiltration and saturation of batt insulation,
fireproofing and sheathing.
Corrosion of steel has increased noticeably with delaminating steel and thick rust
pack observed (refer to PJ-32) (08/16/16).
Page 27 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Architecturally exposed canopy steel is corroding and will need to be replaced
(refer to PJ-33) (08/16/16).
A large crack has appeared in the concrete topping along the interior spandrel
steel line (refer to PJ-34). This cracking is caused by severe corrosion of steel
girder below (08/16/16).
The bearing plate supporting a second floor steel girderm framing onto the
concrete elevator shaft wall, is severely corroded. This corrosion has
damaged and blown out the concrete bearing for the beam. This is
developing into a potential dangerous situation as the beam bearing could
fail at any time resulting in a partial collapse of the structure (refer to PJ-35)
(08/16/16). Refer to SK-01 for temporary shoring detail at end of this report.
• Comments/Recommendations:
o Sand or shot blast as required to remove spray applied fireproofing
and expose structural steel framing and connections.
o Detailed inspection and testing required to determine the full extent
and severity of steel corrosion.
o Adequate allowance should be made for structural repairs such as
bolt replacement and beam reinforcing with welded plates.
o Significant repairs of structural steel and connection will be required.
o Architectural exposed structural steel canopies need to be removed
and replaced (08/16/16).
o Cracked concrete will need to be removed and replaced along with
steel spandrel beam repairs (08/16/16).
o The damaged bearing plate and concrete pockets needs to be
addressed or the beam shored to prevent a partial collapse of
the 2"' floor slab (08/16/16).
6.6,3 Precast Plank Floor System
The precast floor system has a complete 2" concrete topping. The floor system is
saturated in areas by free flow of water through unfinished window openings (refer
to PJ-11). Due to the amount of water impacting and signs of deterioration of the
concrete topping, significant areas of topping will need to be removed and replaced
(refer to PJ-12).
• Comments/Recommendations:
o The precast topping and plank to be dried out and a chain drag test
is carried out to identify areas of delamination, Delaminated topping
should be removed and replaced as required.
6.6.4 Concrete on Metal Deck Balconies
Concrete on metal deck balconies cantilever off the side of the structure at the
upper levels. Many of these balconies are showing signs of cracking and
deterioration of the concrete due to corrosion of the steel edge plate (refer to P.1-
13). Deterioration of concrete has accelerated (08/16116).
Page 28 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
• Comments/Recommendations:
O Repairs to concrete at cantilevered balconies is required.
6.6.5 Loadbearing CMU Walls
The Loadbearing CMU walls of the stair and elevator towers as well as the east
partition wall are saturated and showing signs of spelling and deterioration caused
by freeze/thaw cycle of trapped water (refer to PJ-14, PJ-15 and PJ-16).
Trapped water in the CMU vertical cores continues to freeze and thaw resulting in
many locations where the face shells have been blown off the wall (refer to PJ-36)
(08/16/16).
Comment/Recommendations:
o After the CMU walls have dried out a detailed inspection and survey
needs to be carried out. Delaminated and damaged face shells
removed and repaired as required.
O Steel bearing plates and beam to bearing plate welds inspected,
cleaned and repaired as required.
o The damage observed appears to be limited to small areas, and has
not compromised the overall structural integrity of the building.
O The condition of the CMU stair walls is deteriorating rapidly and
testing is required to determine their structural integrity (08/16/16).
6.6.6 Exterior Facade
The majority of the architectural wall panels have been erected on the exposed
exterior sides (refer to PJ-17), A small number of windows have been installed.
Portions of the metal panel finish have been instaiied on the exterior facade facing
the parking structure (refer to PJ-18). The remaining exterior facing the parking
structure is exposed with damaged and deteriorated sheathing (refer to PJ-19).
The top and bottom cold formed metal stud wall support tracks in contact with steel
arid concrete are corroding and beyond repair (refer to PJ-20 and PJ-21).
Large panels of glass have been broken by vandals on a number officers at the
elevator tower (refer to liJ-37) (08/16/16),
• Comments/Recommendations:
o The architectural wall panels appear in good condition.
O All exterior metal siding, sheathing and cold formed metal studs on
the exterior façade facing the parking structure are in poor condition
and should be removed and replaced.
O Large areas of damaged glass need to be replaced (08/16/16).
6.6.7 Roof
No access to the high roof was available.
The low roof at the second floor appears in poor condition with pending and
vegetation growth and delarnination clearly visible (refer to PJ-22).
Page 29 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
• Comments/Recommendations:
o Roofing and insulation should be removed and replaced.
Parking Structure
In general the precast parking structure is in very good condition with its structural frame,
concrete toppings, washes, expansion joints and sealing joints completed. (Refer to PJ-
23, PJ-24, PJ-25 and PJ-26).
6.6,8 Foundations, Grade Beams and Slab on Grade
The structural drawings prepared by Rich and Associates indicate that columns
and bearing and shear wall are supported by deep drilled pier foundations.
There is minor cracking in slab on grade of lower ramps (refer to PJ-27).
6.6.9 Precast Structural Frame
The precast framing members consisting of Double Tee's, Inverted Tee beams,
Light Wails, Spandrel panels, Architectural wall panels and columns are all in
excellent condition. Minor issues observed during the walk-through follow:
Minor signs of "crazy cracking" observed in roof level shear wall (refer to
PJ-28)
• The elevator pits are filled with water and need to be inspected to check for
localized damage. The potential for damage is small.
• Minor cracking and spalling of concrete wash at precast stairs (refer to PJ-
29).
• Graffiti on upper level walls and panels needs to be removed (refer to PJ-
30).
• Minor spell in concrete wash as roof level near expansion joint (refer to PJ-
31).
Comments/Recommendations:
o In general the precast structure is in excellent condition with only
minor issues that need to be addressed as detailed above,
6.7 Building BP-CIN
The partially erected foundations and reinforcing CMU walls are in poor condition (refer to
photograph PP-1 and PP-2). The areas surrounding the foundations is saturated and
swampy (refer to PP-3). Many of the exposed anchor rods have been bent or sheared off
(refer to PP-4).
The pad and strip foundations in this area are currently being removed (08/16/16).
Comments/Recommendations:
o DNCE recommends that CMU and foundations in this area be
removed and replaced with new construction.
Page 30 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
7. FLOOR PLANS AND PHOTOGRAPHS
Page 31 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Ml
• .4. )
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Building A – First Floor Plan
, A • •
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Building B – First Floor Plan
-2_;•0.51_,---"f;:m.-'''''' --• – . `
Building C – First Floor Plan
Page 32 of 84
Phase Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PA-2: Water and silt around interior foundation
PA-3: Erosion of soils around existing interior foundation
Page 33 of 84
PA-4: Slab on grade cracks due to frost heave_
, 112111111Wik.. ' PA-6: Windows installed at upper level
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Page 34 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PA-9: Damaged Cast Stone Veneer (building B)
Page 35 of 84
Phase Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Ml
PA-12: Water leak (building B) (08/16/16)
Page 36 of 84
PA-10" Roof in good condition (building A)
Phase J Condition Assessment UPDATED
Bloomfield Park
Bloomfield Township, MI
PA-14: Severely corroded steel (building B) (08116/16)
PA-15; Corroding anchor rods and nuts
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Ml
PA-16: Corroding metal pan stairs (building B) (08/16/16)
PA-17: Damaged/deteriorated cement board siding (building A) (08/16/16)
PA-18: Damaged/deteriorated metal panel parapet (building B) (08/16/16)
Page 38 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PA-19: Stepped cracking in CMU wall (building C) (08/16/16)
Page 39 of 84
CONSULT% ENGINEERS
Building D — First Floor Plan
PD-1: Water infiltration, ponding and erosion at interior foundations
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Page 40 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Ml
PD-3: Frost heave of slab on
P0-4: Damage to retaining CMU wall by vegetation
Page 41 of 84
P0-5: Minor corrosion of steel due to exposure
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
P0-6: Typical section through floor construction (potential delamination of topping)
P0-7: Deterioration of concrete topping due to roof leaks
Page 42 of 84
of CMU due to water infiltration
Phase 1 Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Ml
PD-10: Deterioration of CMU due to water infiltration
Page 43 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-11: Deterioration of CMU at beam
veneer — partial hel
PD-13: Damaged and deteriorated sheathing on metal studs
Page 44 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Mi
PD-15: Precast parking structure exterior facade
• rl;-: •
P0-16; Eroded and saturated soils at intone
Page 45 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-18: Eroded soils at shear wall foundation
PD-19: Slab on grade cracking due to frost heave
Page 46 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-22: precast at roof level (excellent condition)
Page 47 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-23: Damaged Lin-topped Double Tee at lower ramp
PD-25: Areas were concrete topping work stopped
Page 48 of 84
CONSULTING ENGINEERS
PD-26: ReInforcin and concrete wash incomplete
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-28: Spelling at erection inserts — Stair tower roof
Page 49 of 84
CONSULTING ENGINEERS
PD-30: Minor spell at concrete wash
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-29: Graffiti at roof level to be removed
PD-31: Bent and damaged rebar in mushroomed foundation (08/16/16)
Page 50 of 84
Phase l Condition Assessment UPDATED
Bloomfield Park
Bloomfield Township, MI
s
PD-32: Corrosion on anchor rods and nuts (08/16/16)
PD-33: Weathered and deteriorated topping (08/16/16)
P0-34: Spelling and deteriorating CMU wall (08/16/16)
Page 51 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-35: Vertical cracks in CMU wail (08/16/16)
PD-37: Continued soil erosion around interior pad foundations (08/16116)
Page 52 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PD-38: Epoxy coated WWF beginning to corrode (08/16/16)
PD-39; Crazy cracking on extended precast column (006/16)
PD-40: Grout packets at lifting inserts failing (08/16/16)
Page 53 of 84
CONSULTING ENGINEERS
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Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
rt,
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Building E— First Floor Plan
PE-1: Partially complete structure in good condition
Page 54 of 84
Phase Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, NH
Ingsgasisma4m60490—x-v o
soils and silt wash at lower lave
PE-4: Precast ramps and walls In excellent condition
Page 55 of 84
Architectu afprecast in excellent condition
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PE-7: Placement of reinforcing incomplete
Page 56 of 84
PE-9: Minor spalling at liftino inseris (stair roof slab•
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PE--10: Sealant joints incomplete
Page 57 of 84
Phase 1 Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PE-12: Bearino Dad oozed out (08/16/16)
Page 58 of 84
CONSULTING ENRINEERS
PE-11: Graffiti on walls (08116/16)
PE-13: Bearing pad oozed out (08/16/16)
Phase! Condition Assessment - UPDATED
Bloomfield Park
Bloomfieici Township, MI
PE-14: Bearing pad oozed out (08/16/16)
Page 59 of 84
CONSULTING ENGINEERS
Phase i Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-1: Exterior elevation of building F
Page 60 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-2: Potential interior foundation problems due to water leaks
, 0.arskoft. • • ..-215SSFA
PF-3: Saturated soils and pondino at interior column foundations
PF-4: Frost heave of interior slab on grade
Page 61 of 84
Moderate steel corrosion at
eel corrosion at expansion Oh
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-7; Moderate steel corrosion at expansion joint
Page 62 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
eel roof support beams corroding due to roof leaks
4, ,• CI -F.M n • .,,,MMEMMINNInblimade,T- / W01.14414
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PF40: Exposed veneer support angle not galvanized
Page 63 of 84
PF-12: Water in elevator
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-11: Crackimi in concrete typical for composite beam on metal deck construction
PE-13: Potential damage to CMU walls due to water infiltration
Page 64 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-14: Partially completed
11
Cast Stone Masonry veneer
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PF-16; Soffit sheathing deteriorating and mold forming
Page 65 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-17: Partially completed roof resulting in leaks and steel corrosion below
PF-18: Concrete slab on metal deck — cracking (08/16/16)
PF-19: Concrete slab on metal deck — cracking (08/16116)
Page 66 of 84
PF-22: Mold formation (08116/16)
Phase 1Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PF-21: Mold formation (08/16/16)
Page 67 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Building G — First Floor Plan
PG-1: Exposed steel framing with partially installed roof deck
Page 68 of 84
Phase Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
P0-2: Cracking in foundation due to frost heave
Page 69 of 84
CONSULTING ENGINEERS
-1.
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Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
Building J— First Floor Plan
PJ-1: Exterior elevation showing incomplete façade
Page 70 of 84
Phasel Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-2: Deterioration of interior concrete foundation due to water leaks
PJ-4: Corroding and rust scale at interior column base
Page 71 of 84
Phase 1Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-5: Moderate to severe corrosion of stee beam
PJ-6: Moderate corrosion o steel at elevated level
PJ-7: Corrosion of steel beam bearing on CMU wall
Page 72 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
_ •
PJ-8: Cracking in conc:Tete topping due to corrosion of steel beam flange below
PJ-9: Corrosion and deterioration of steel spandrel beams
PJ-10: Corrosion of connection — beam to column
Page 73 of 84
Phase 1 Condition Assessment - UPDATED
Bloornfield Park
Bloomfield Township, MI
PJ-11: Ev:dence of long term water ex ..osUr.',. on preast topping • •
. ,
in good condition
• 6,4 AW
PJ-13: Damage to balconies due to freeze thaw
Page 74 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-15: Damage to CMU due to corroding embedded steel beam
PJ-16: Face shell failure and damage due to trapped water
Page 75 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, Ml
Exterior elevation showing Incomplete facade
PJ-18: Elevation showing incomplete metal panel erection
PJ-19: Elevation showing damaged and deteriorating exposed sheathing and metal studs
Page 73 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
"
" E-4
PJ-20: Cold forme(
PJ-21: Cold formed metal track and studs cc
PJ-22: Pending on low roof
Page 77 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-24: Precast Double Tee's with sealed joints in excellont condition
PJ-25: Roof precast with sealer
Page 78 of 84
PJ-26: Expansion loints In excel 4-4
R.1-27: Minor crackino in slab on qrade due to frost heave
walovioatt
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-28: Minor crazy cracking in exposed shear wall at roof level
Page 79 of 84
PJ-30; Graffiii on wall and
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-31: Minor spell at expansion joint wash
Page 80 of 84
CONSULTING ENGINEERS
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-32: Severe corrosion of beam web with sirificant rust pack (08/16116)
PJ-33: Surface and pitting corrosion on exposed steel canopy framing (08/16/16)
PJ-34: Severe crack in floor topping due to corroding steel below (08/16/16)
Page 131 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PJ-35: Failing beam pocket— NEEDS TO BE SHORED OR REPAIRED (08/16/16)
PJ-36: CMU face shells bursting due to entrapped water (08/16116)
PJ-37: Vandalized window panels (multiple levels) (08/16/16)
Page 82 of 84
CONSULTING ENGINEERS
PP-2: CMU wal, in poor condition
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PP-3: Swampy soils around pad foundation
Page 83 of 84
Phase I Condition Assessment - UPDATED
Bloomfield Park
Bloomfield Township, MI
PP-4; Anchor rods sheared of at leveling plate
Page 84 of 84
FAILING BEARING
POCKET
EX PRECAST
PLANKS
EX STEEL BEAM
W6x15 JUNIOR
BEAM CLAMP TO
BEAM FLANGE AND
SHORING POST CAPS
----------- (2)H ILOAD OR SHORE-X
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AND BRACED TOGETHER
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SUPPORT 11KIPS ALLOWABLE
LOAD.
EXCAVATE LOOSE SOIL AND
PROVIDE MIN. 4'-0"x6-0"xl'-4"
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EX
ELEVATOR
PIT
CONSULTING ENGINEERS
BLOOMFIELD PARK -
TEMPORARY
SHORING FOR FAILED
BEAM BEARING
Enter address here
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MDS MDS
SkEtCHIU.
08/23/16 SK-1 8895
6785 DALY ROAD
WEST BLOOMFIELD, MI
48322
T6: 248.932.2010
Pax: 248.932.3088
Emali: infc§desalnasr.carn
Wdx www.desainasr.corn
ATTACHMENT I
Bloontfield Development Impact Assessment, dated September 2, 2016, by
Baker Tilly
22
Candor. Insight. Results.
Bloomfield Development
Impact Assessment
471EM
-
'BAKER T I LLY
Background
Bloomfield Park was planned by developer Craig Schubiner as a $500 million upscale retail and housing
project. Bloomfield Park has sat dormant on the edge between Bloomfield Township and Pontiac,
Michigan since 2008. Half-finished buildings and parking garages are still standing on the property, after
the construction came to a halt and the property went into foreclosure, After a long litigation process of
the original project's owners, investors, and creditors was settled, Bloomfield Village Owner, LLC (BV0),
based in Southfield, Michigan, purchased the foreclosure rights to Bloomfield Park from Wells Fargo
Bank NA in 2014. BV0 is currently in the process of receiving approvals for a revised concept from the
applicable public agencies.
Project details as proposed and provided to Baker Tilly show 13VO's mixed-use plan includes residential,
dining, grocery, entertainment, and healthcare components with more than 116,000 S.F. of retail space,
in addition to a large anchor home improvement retail tenancy, and additional office, restaurant,
hospitality and entertainment components. The site plan also includes a proposal for 452 units of
multifamily rental residential housing and 100 units of independent living senior housing. The site plan
has components that will be owned and operated by separate parties. For the purpose of this report,
the entire site and its proposed uses have been analyzed as a whole, regardless of future ownership and
operating structures.
Baker Tilly, LIP has been contracted by Bloomfield Village Owner, LLC ("BV0") to provide an
independent third-party analysis on the site proposal to evaluate the likely impacts to local
employment, tax revenue, and economic outputs of the various components of the Project. All data
used in the report is based upon sources received from BVO or publicly available industry indexes.
Please see Appendix I for a detailed overview of IMPLAN, the industry analysis program used for this
analysis.
Additionally, Baker Tilly, LIP has been contracted to provide an opinion as to the overall condition and
potential functional obsolescence of existing buildings located within the Bloomfield Park master
planned mixed-use site located in Pontiac, Michigan, pei Michigan Act 381 Combined Brownfield and
Work Plan standards.
Village at Bloomfield Concept Plan
236,640 SF
28400 SF
22,189 SF
7,031 SF
100 units
452 units
100 guest rooms
Construction Impacts
Construction on the Project is to be undertaken through multiple developers and at staggered but
coordinated points in time, For the purposes of this analysis, community benefit and economic
development impacts from construction have been derived for the entire site from market analysis and
internal documents provided by CVO, even as some components analyzed will be owned and
constructed by third parties. Timeframes anticipated for construction, costs and other attributes were
derived from the data provided by the documents received.
Based upon information provided to Baker Tilly from BVO, using the proposed site design available, it is
estimated that during construction, the Bloomfield Development is anticipated to create 555 direct FTE
construction jobs, with an additional 692 jobs anticipated through secondary indirect and induced
sources, for a total construction employment impact of 1,248 FTE jobs.'
Wages from the jobs created by the Project may bring valuable spending power to the community. It is
estimated that more than $52.5 million in direct construction wages would be realized by the Project.
Accounting for secondary employment, an additional $40.8 million in wages are estimated from
construction activities, creating a total of more than $93,5 million in labor income from construction,
Accounting for material and equipment supply purchases, it is estimated that Bloomfield Development
will incur more than $1131,5 million in direct construction output, based upon hard costs, and will incur
an additional $101.7 million in secondary output, for a total impact of $233,35 million in gross local
product during construction. Tax impacts on construction purchases are accounted for later in this
report.
Bloomfield Park Site Panorama
1A FIE job is based on 1,820 hours of employment, per annum.
Based upon the information provided by
BVO, it is estimated that combined across
commercial and residential uses, 830
direct ETE jobs will be created by the
Project, with 31.4 additional jobs created
from indirect and induced employment
sources, for a total impact to Bloomfield
and Pontiac's community of 1,144 FTE
jobs.
Wages frorn these jobs are estimated to
create more than $215 million from the
Project's direct employment, and an
additional $24.29 million in wages from
secondary employment sources, for a
total of $53.8 million annually in labor
income to the local economy.
Site Operational Impacts
Community benefit and economic development impacts from BVO's proposal can be measured through
projected operations and can be observed through catalytic community output derived from sales and
gross margins, employment levels, and labor income.
The Project site is expected to have multiple uses spread out across the "Village" campus. Given industry
standards vary by use and size, and for the number of employees required to staff the anticipated
varied-use spaces. The likely wages and output and estimates have been evaluated separately to arrive
at anticipated community impacts from the Project as a whole.
V.7,-. -ZiP rw, _-.. f..,±1 _--
Direct
Residential 'WOW. i' .F -., .,-
28
$883,320 $5,479,906 '
7•10 ''''kli'._4#0"5-trWar;-.1, ,,,Z.SFrii-1,_.R1 • --...--- - - ,,,4,-,-- -,,,-,..:-_,...--,,-...g,------,,--- .
$534,184 $1,023,455
,.„,„,,-_,••, • ,..._ ,,,
.. $4,525,474 $8,141,398
...4-MTVT•p/R•A'%Wpin. IT Mg `-i3/46.p•.:*,,,,,,,,,k,-..,.-,,,,-1..7-;-,. - ,-,,,
-- ITg- .`7•ri -'• .•- - ,-?-ffra...., . •-•,..:,•-•-:-.-
1$
—,-_,-,•,„,•-,,,,,..:._-„--.
81
W-sv,fiSt.W-t, WI.,•;:-.--,
Senior Housing
Direct
•._•,- .:-.,
Direct
Home Irn prove ment Retail ,...,,,-4,..qi-st
'.44':ft-'2271...,.'
Direct
Retail - ._ I i ra
383
1 --4.._ xi ,-,.. .1
$14,151,972 $25,439,232 st•it,0.- waias- - - k, 1147 ,6, :. ri970,,-- ..,, .6. i
Direct Restaurant . 203
...-:,',4..V-!' ' • 777;;IA'—'5-air
$4,891,800 $13,313,400
''''.--- fp-x---3,-..7.--iii.,,-di
Direct
71m--011-----":2;
• 7
-frig=4—nr-
$568,964 $2,103,300
*s'itmgi
Direct
Hotel
63 $1,933,248 $7,251,317
Direct Grocery/Market art
Si
rg.-MMI
$2,152,785 $3,723,131
VTZ.t , Te4M1r0:Min.
.;,..,...,._ .. Direct
,.,..:.:..,:.:.:.-.....::::...:.:..,......, ...:.: '..._::': '.','
FullDevelopment 5ite -;'•:-. ' • ..838.:,,y.',' • . •-.. 529,541;7,47 ,': f:.•.: $66/01;139
The Project's tenants are estimated to directly create more than $66.49 million in economic output, with
another $52.5 million created through secondary sources, for a total annual output effect of more than
$119 million to the local economy.
Tax Impact Projections
Taxes to the Bloomfield Project site can be evaluated for both periods of construction and operations
across purchases and sales, payroll, property taxes, room taxes, and corporate income tax. Current mill
rates of Pontiac, Ml from their winter 2015 and summer 2016 tax statements have been utilized to
project future taxes from the Project. 2
For operations, the project's total development cost (TDC), including land, real property and Personal
Property & Equipment (PP&E) has been estimated at $145.6 million across all uses, Closing costs and
fees are not included as part of TDC, The Project's site development market value for Real Property was
assumed at 95% of TDC, or $121.6 million, while market value for PP&E was discounted to 60%, or $4.39
million. Land costs were not discounted, and its Market Value is estimated at $10.3 million. The
Assessed Value for Real Property, Land and PP&E is assumed at 50% of the Market Value. Overall, the
Estimated Assessment Values for Land and Real Property improvements are $65.97 million, with $2,198
million estimated for PP&E Assessment Value.
z A total rniliage rate of 0,055530 was utilized for Real Property and Land, while a millage rate of 0.003530 was
utilized for PP&E, broken out across the following tax descriptions: County Operating, 015 Allocated, 013 Voted,
OCC Voted, State Education, School Operating, City Operating, Oper TWP PA425, CAP IMP, Sanitation, Library,
Senior Services, School OPER FC, Pontiac Schools, Messa Judgment, Sinking Fund, Admin Fee, County PKS & REC,
HCMA, OCPTA, Zoo Authority, Art Institute, Admin Fee,
14 er
- 4
Direct Local Income Tax (1%)
indirect & Induced Local Income Tax (1%)
Total Local Income Tax (1%)
Property Taxes -Bliaomffeld Winter 2016
Property Taxes - Bloomfield Summer 2017
Property Taxes Pontiac Winter 2016
Property Taxes- Pontiac Summer 2017
Direct Sales 82, Use Tax
Indirect & Induced Sales &. Use Tax
Direct M l Payroll Tax
Indirect & Induced MI Payroll Tax
oTAMDISNI).0.90ti
$526,792
$408,631
$935,423
$7,897,697
$6,103,349
Bloomfield Village Owner, LLC projects that,
pending a timely start to construction, the project
site will be placed in service or land will be sold to
third parties by the end of October, 2017. BVO is
currently paying taxes on the subject properties,
The last tax bills for the Project site received were
the 2016 Summer Tax Statements, payable
effective through July 31, 2016,
Between now and October, 2017, additional winter
and summer tax statements are anticipated to be
received for the subject parcels. It is therefore ,
expected that the project site parcels will
contribute a total of $225,940 in property taxes
during construction, with $81,500 in property taxes
payable to Bloomfield Township
and $144,430 payable to the City of Pontiac,
assuming current taxation and mill rates,
Key Construction Tux Findings:
• Overall, the project is estimated to collect more than $19.1 million in taxes, with more than
$10.8 million from direct construction sources.
• The project is estimated to bring more than $225,900 in total property taxes during
construction.
• Total Payroll taxes for the State of Michigan from construction wages are estimated at more
than $3.67 million, assuming a 4.25% tax rate. The potentially applicable City resident 1%
income tax is not computed as it is not possible to predict with any reliability the number of
construction workers who would be drawn from this labor pool. Therefore, to the extent that
new workers are drawn to the community as residents or current workers see a significant rise
in income this estimate could be seen as conservative, bearing in mind that these are temporary
positions. (Please note that these are State and not Federal tax estimates).
• Total Local Payroll taxes from construction wages are estimated at more than $935,000, with
more than 526,000 from direct employment sources.
Total Sales & Use tax off of construction activities is estimated at more than $14 million,
assuming a 6% tax rate,
-nuat,Cupetationa ax
Once the Project Is fully constructed, annual
taxes can be estimated across the Project's uses:
• Overall, the project is estimated to
collect more than $17.6 million in taxes
annually, more than $13.4 million of
which are from direct sources, Estimates
of income taxes derived for the City of
Pontiac are not a part of the analysis as
the corporate structure of the tenant
base is not known, and only C Corps
would pay this tax. Hence these
projections may be conservative.
• The project is estimated to create more
than $7,33 million in total property taxes
annually across all uses and owners,
• More than $496,800 in local income
taxes from wages of retail and
commercial operations are estimated to
be earned from the Project's tenant
businesses, and $306,900 from the
Bureau.3
Payroll taxes for the State of Michigan
from the employment generated from
the Project once placed in service is
estimated at more than $2,1 million
annually, with more than $1.25 million
from direct employment sources. Similar
to the construction worker payroll taxes,
no attempt to apply the city income tax
has been made, hence this number may
be considered conservative as it is likely
that a portion of the workers will
•
. . ... ...
Estimated Annual Property & Operations Tax Impacts
Property Taxes - Real & Land $7,326,740
Property Taxes - PP&E $7,759
Total Property Taxes
Room Tax - Oakland Co. (1.5%)
Convention 81. Visitor Fee (2%)
Sales Tax (6%)
$7,334,500
$34,369
$45,826
$139,539
Total Hotel Taxes
Direct MI Payroll Tax
Indirect & Induced MI Payroll Tax
$219,734
$1,255,524
$855,943
Total IV11 Payroll Tax (4.25%)
Total Residential Local Income Tax
Direct Commercial Local income Tax
Indirect St Induced Commercial Local Tax
$2,111,467
$306,900
$295,417
$201,398
Total Local Income Tax (1%)
Direct Sales & Use Tax
Indirect & Induced S/11 Tax
$803,716
$3,989,468
$3,152,220
Total Sales &Use Tax (6%) $7,141,689
Annual Operational .Taxes_ • •
Direct Taxes::: . •.. • '
Indirect & Induced Taxes .:
$i7,611,106 7
-.'..$ 13,401,544 . . ... ..
..: $ :4,209,561
.
... .: TOW .......... 'gst...Stablized ..E.1. .Annual
..p.evelapment...:...jiksleiOci..0,1,:::Propeoy,..,
. . Coil i.......:-.;::•..-. Value ,:r.?"' - '... Taxes • •
Home Impivvemant Wail $19,062.889 $9,064,729 01,005,616
Retail & Office $23,388,118 $11,189,356 $1,233,805
Multi-Family Residential 657,978,288 627,348,087 $3,037,456
Senfor Housing $15,396,142 57,313,157 0812260
Hate/ $12,575,000 55,973,126 5683,375
Land 188 Acres) $10,341,800 55,170,947 0574,285
Total Land & Real Property $138,342,055 660,871,011 $7,326,740
Total Pge,e Mr All Uses $7,327,188.50 $2,168,167 67,759
TOTAL SITE IMPACT.f':. L7.•••!../451,689.45-,"--..'-:-T6,7.0.8.,805-..$7,-334,5130
Project's apartment residents.
The Project's 100-room hotel is estimated to provide more than $34,300 in local room taxes to
Oakland County annually, and more than $45,800 to the Detroit Metro Convention and Visitor's
migrate to the community making for a base of new incomes from which the city would derive
new taxable resident income base,
3 Average Daily Room Rate was assumed at $93, with 67.5% occupancy. o
- 6 -
• Direct Sales and Use taxes across site operations is estimated at more than $7.1 million
annually, with more than $4.3 million from direct site sources,
The Project is proposing 552 units of rental housing as a component of the site. Of this 100 units are
proposed for service enriched elderly housing which is anticipated to be fully absorbed by renters
directly from within Pontiac based on age of the housing stock and availability of renters within this age
cohort, Reviewing the available housing stock in Pontiac, Michigan, it is apparent that very little newly
built housing is available. Out of more than 27,600 housing units, only some 2,300 units were built since
the year 2000, (8.2% of all available housing), with more than 79% of the housing built prior to 1980,
and more than 20% built prior to 1939.4 Out of more than 23,200 occupied housing units, more than
12,900, or 55.6% are renter-occupied. The mean household income in Pontiac is $37,719— with current
poverty statistics at 33.4% and a renter burden rate of 52% (i.e. the percentage of renters paying In
excess of 30% of income for rent).
Average monthly rent for an apartment in Pontiac is $730, while average rents in Oakland County are
approximately $940. Within Oakland County, there are roughly 50,000 individuals currently living within
the county that could presumably afford the likely rents on the project. Assuming a 30% income
benchmark for rent-to-Income levels, $62,500 per annum is required for household income to support
the Project's anticipated base rent. Of the overall renter base only 123 currently rent at the proposed
average rent for the market rate structure planned on the Bloomfield Village site.
The Project will have to attract tenancy exterior to the immediate community. The bulk of rents within
the City of Pontiac run from $500-$999, with 28.8% of the City's rental units occupying rents of $500-
$749, 28.8% of rents from $750 to $999, and 17.8% of rents from $1000 to $1499— with an overall
median rent of $730. Within the City of Pontiac, only 1% of the total rent paying subset pay rents in
excess of $1,500 per month the Project has an anticipated average rent of $1,546 (inclusive of utilities
— which is not common to the area where 87% of renters pay utilities separate from rent).
Making an assumption that the current renters in Pontiac who rent at rates from $1500 and up would
choose to move into units which are at minimum 6 years to 16 years of age newer, the project would
absorb 123 renters at most from within Pontiac. This indicates that the primary market base reflected
by the developer for this portion of the site, which was Oakland County is more likely to hold true than
not. This would mean absorbing 359 renters from outside of the current renter base at minimum into
the city. The area has a population base with roughly 214,376 with incomes at or over this level. The
relative age of the housing stock in Oakland is similar to that of Pontiac, though the percentage of stock
dating prior to 1939 is lower. Extrapolating from the percentage of renters to home-owners reduce the
potential pooi, provides a base of 65,837 potential renters or a projected capture rate of 198.6:1 for the
359 units requiring absorption.
Furthermore, preliminary estimates for potential added income tax value from the new residents based
on spreading the units across income bands using the mid-point of the income hand from the ACS and
4 American Community Survey, 2014 data.
Functional Obsolescence Review
the percentage of persons paying rent in the band to weight absorption (excluding any whose payments
were $2,000 or more [based on the "or more" statement as this income could not be adjusted for] can
be made.) Assuming the existing income distribution across households for Oakland County in relation
to the likely tenancy of the Project, the net gross income of new tenancy is projected at $30.69 million,
with an estimated $1,3 million in annual Michigan state tax income produced by the rental residents,
assuming an income tax rate of 4.25%, Furthermore, the project is estimated to increase local income
taxes by $306,900, benefiting the City of Pontiac, assuming a local income tax rate on residents of 1%.5.
The relative split to Pontiac of this additional tax base is not reflected in the tax base analysis discussion
noted prior. In addition, the ripple effect of the attraction of the added gross income base to the
community has not been calculated into the overall gross economic output of the project as a whole. It
is therefore important to consider the additional value anticipated to be achieved upon attraction of this
new projected resident base. (It should be further noted that the 1% resident tax is anticipated to sunset
in 2072. subject to legislative change).
Baker Tilly has been contracted to provide an opinion as to the overall condition and potential functional
obsolescence of existing buildings located within the Bloomfield Park master planned mixed-use site
located in Pontiac, Michigan,
Scope of Memorandum:
The scope of work completed for BVO's request for information included the following:
• A review of the "Brownfield Redevelopment Plan" approved by the Pontiac Brownfield
Redevelopment Authority provided by AKT Peerless Environmental Services.
• A review of the prior."Property Assessment for Oetermination of Eligible Property Status" provided
by AKT Peerless Environmental Services,
• Review of Phase 1— Condition Assessment Report of Bloomfield Park Dated September 26, 2014 by
MICE, Inc., and updated August 16, 2016,
• A review of photographs provided by BVO highlighting the current condition of the partially
constructed buildings
• A review of the "Act 381 Guidance for Brownfield Plans, Work Plans and Combined Plans" produced
by the Michigan Department of Environmental Quality and the Michigan Economic Development
Corporation
• Reliance on statements made by BVO relating to the history of the site and redevelopment as well
as the current condition of the partially constructed buildings and overall site
• Review of projected parking requirements for the proposed BVO site both surface and covered as
prepared by the developer by building use and the anticipated operating costs of covered parking by
Square Footage
s For the purposes of refining the assumptions the income in the band ranges are placed at mid-point with the
married filing jointly deduction taken, using this at the base assumption the calculation would drive an alternate
tax value of $1,630,612.
- 9 -
• Review of the offering memorandum reflecting the overall parking currently on-site
• No site visit was completed by Baker Tilly as part of the scope of this project
Legislative Review & Existing Site Uses
Per Michigan's Brownfield Redevelopment Financing Act, 1995 PA 381, as amended, Brownfields are
defined as properties that are contaminated, blighted, functionally obsolete, and can include historic
properties. Regardless of their classification, all brownfieid properties face economic impediments to
reuse and redevelopment. Act 331 authorizes ond permits the use of school and local tax increment
financing to help reduce the burden of Brownfield related costs when redeveloping affected properties,
To be considered eligible, property must qualify as either a facility, functionally obsolete, blighted or
historic and have Brownfield activity costs associated with it.
The definition given in Michigan's Brownfield Redevelopment Financing Act, 1996 PA 381, and in the
"Brownfield Redevelopment Plan" for the term functionally obsolete includes the following,
"a property that is unable to be used adequately to perform the function for which it was intended
due to a substantial loss in value resulting from factors such as overcapacity, changes in technology,
deficiencies or super adequacies in design or other similar factors that affect the property itself or
the property's relationship with other surrounding property."
Further under Act 381 it is noted that a property meets the qualifications to be termed as "blighted" if it
meets any of the following criteria:
(I) Has been declared a public nuisance in accordance with a local housing, building plumbing
fire or other related code or ordinance
(ii) Is an attractive nuisance to children because of physical condition, use or occupancy
(iii) Is afire hazard or is otherwise dangerous to the safety of persons or property
(iv) Has had the utilities, plumbing, heating or sewerage permanently disconnected, destroyed,
removed or rendered ineffective so that the property is unfit for its intended use
(v) Is tax reverted property by a local unit of government...
It should be noted that the original determination of functional obsolescence for the Project site was
based on building composition which has since changed for a portion of the site developed in 2007-
2008. In 2003 and subsequently under the 2004 amendment, the site contained a subset of residential
and commercial property as well as a demolished drive-in theater. These properties were found to be
functionally obsolete based on substantially deteriorated conditions (dilapidated roofing, walls and
other construction support systems), the presence of a deteriorated parking lot and functionally
obsolete substructure for the prior drive-in and properties in which the basic building support systems
were no longer functional (heating, water and electricity). This is a significantly simplified presentation
of the findings from that report.
The 2014 study reviews the unfinished plans to revitalize the site based on the unfinished structures
located on the site. The assessment appears to provide similar data which would lead to a
corresponding conclusion of functional obsolescence with the current structures and likely supports
evidence of blight.
The assessment reviews the elements that are in place, notably, elements reflecting primary building
systems such as water, sewer, heating, air and electric are not discussed, Virtually every building is
noted as having issues with water incursion, Buildings A, B and C are noted as having constant water
leakage and pending causing concern with structural integrity of bearing soils with heaving observed on
site. These properties also exhibited concern with damage to the roofing systems.
Building 0 had similar foundation issues caused by water leakage and pending. These concerns extend
past the foundation and impacted both the precast plank floor and the ioadbearing concrete masonry
walls (CMUs). In the parking area of this structure pending in the elevator pits and Issues with
components of the foundation caused by water were also observed.
The Building E report reflects extensive pending and silt build-up. It is specifically stated that the deck is
incomplete and no drawings are available. DCNE specifically notes in their report that without a
complete set of recast shop drawings, erection drawings or fabricated members that this deck cannot be
saved,
Building F repeats the foundation concern findings found in A-D, adding a concern that the interior pad
may not have sufficient frost depth. This building also reflects issues with loadbearing CMOs. Building G
has only a partially erected steel frame. The report reflects that all roof membrane and insulation should
be replaced based on saturation. The report reflects that the foundation could not be adequately
assessed.
Building G was demolished in December 2015 as it posed a safety hazard to the site maintenance crew.
Building J again reflects similar foundation concerns as noted in 4-0, added to this is notable steel frame
corrosion, issues with the precast plank floor system, issues with the cantilevered deck balconies
(cracking and corrosion of the steel deck plate) and concerns with the loaclbearing CMOs. In addition,
while access to the high roof was not available, observation of the low roof indicated that all roofing
needed replacement. The 2015 report reflects emergency shoring is required in order to prevent major
structural failure.
The final building is referenced as BP-CIN. It has partially erected foundations and reinforcing CMUs
which are in poor condition. The report reflects that the area surrounding this is "saturated and
swampy" and based on this building. BP-CIN was demolished in August 2016 so that the site could be
maintained.
Photographs provided of the site provide evidence of the deterioration noted by DCNE and additionally
reflect graffiti on the buildings, evidencing that the property has become an attractive nuisance to
children due to its physical condition and likely due to its lack of occupation. Further, based on the
DCNE report it appears relatively clear that the properties have had the utilities, plumbing, heating and
sewerage rendered Ineffective for their intended use and that the property is unfit at this time.
While Baker Tilly has not completed a site visit, based on the definition of functional obsolescence and
based on our review and understanding of the above mentioned sources of data, it is our opinion the
subject redevelopment site continues to be functionally obsolete and could iikely be deemed as blighted
for the intended proposed uses by BVO.
Baker Tilly reviewed the overall site plan and the existing structures relative to the adequacy or super
adequacy of the parking structures. Building E is not feasible to complete, given that it is only 25%
complete with no detailed drawings to rely on based on the DCNE report, this parking deck was not
considered in the estimation of parking relative to the parking currently "on-site". Buildings 0 and .1
remain as the parking decks under consideration for review in this context. BVO has planned uses which
require parking for retail, office, hospitality and residential spaces. All of the residential parking is
planned as surface parking, adjacent to the properties. These surface lots will be under the control of
the ownership and management of the residential developers who will maintain, light and secure the
parking areas. It is anticipated that there will be 880 residential parking spaces created for the site. One
bedroom units and elderly units are projected with a parking slot per unit; 2 bedroom units with two
stalls and 3 bedroom units with 3 spaces.
There will be 5 free standing facilities, 4 of which are anticipated to utilize surface parking without
reliance on deck parking. All of the planned surface parking is contiguous to the retailers and as noted in
discussion with BVO meets the plans and specifications of the anticipated tenancy. The parking
requirements per 1,000 square feet (SF) may vary by the tenant; however an average of 5.0 spaces per
1,000 SF is assumed, The total additional surface parking is projected at 1,010 stalls. The 100 room
- 12-
Conclusion -
hotel is the only anticipated commercial use not calculated based on square footage. This use is
calculated based on the number of rooms with anticipated occupancy at 1.2 spaces per room allotted.
These are also the only use that is spread between surface and deck parking with 27 spaces of surface
parking immediately adjacent and the remaining spaces in Deck D.
The developer plans to maintain the parking in Deck D. Based on the report it appears that this deck Is
In the best location relative to the planned uses and perhaps the best condition as well. As planned the
deck has capacity for 1,058 parking slots. It is anticipated that the hotel will utilize 93 of these spaces
and that 400 of the spaces will be used by office and retail tenancy in the Building D. The remaining
spaces are "surplus". Baker TIliy reviewed the projections and based on its assumptions derived a non-
material variation on the parking estimate leaving 546 surplus spaces In the parking deck.
The parking deck reflected as Building J holds 1,563 additional spaces. These spaces currently have no
known attributable use as adequate parking Is designed for each proposed tenant that is contiguous
with the buildings they will occupy. Costs required to repair structural damages and complete this Deck
are projected at $21.5 million. This cast includes the added cost associated to the failing beam which
threatens a partial collapse of the second floor at this time. The estimated annual cost for maintaining
this deck is $240,000 per annum (exclusive of tax) with an escalator of 3% - based on extrapolation of
the costs to operate the parking at Deck D. This building is currently earmarked for demolition given
super adequacy of parking at the site and the projected costs to maintain parking which exceeds the
anticipated needs by over 1550 stalls.
As several of the areas highlighted in the study were not yet redeveloped, we concur with the
conclusions of the 2004 study "Brownfield Redevelopment Plan" in consideration of the added data
provided on current property conditions noted in the 2014 DCNE report "Property Assessment for
Determination of Eligible Property Status" (and subsequent 2016 update), as well as, the photos
submitted by 13V0 of the property's current condition, that the property can be classified as functionally
obsolete real estate. Further, based on a review of the existing parking structures relative to planned
uses, it appears that the retainage of Deck J would recreate a situation of super adequacy relative to
parking on site ranging from over 1,550 to 2,000 stalls allowing for roughly 100 stalls to be "carried" for
potential overflow usage above and beyond the current anticipated needs.
Bloomfield Township and the City of Pontiac are anticipated to gain meaningful tax revenue, jobs, and
economic impact from the mixed-use Project BVO is proposing. This site, located on the east side of
Telegraph Road north of Square Lake Road, has been generating limited tax revenues as a vacant site
with half-built structures and is now projected to drive over $13.2 million annually in direct taxes in
addition to significant employment once the Project is placed into service.
- 13 -
IMPLAN is economic modeling software that creates a model of the local economy and estimates the
impact of a change in local spending on output, employment, and wages. Using development data
provided by the Developer and the identified area of impact, we quantified the economic impacts for
NMTC development using IMPLAN, Purchases for final use (final demand) drive the IMPLAN input-output
model.
Analysis definitions
> Direct Impacts: Direct impacts are those impacts occurring in the impacted sector and related
industries as a direct result of the activity generated by the project, This includes output, income,
and employment generated from direct investments in the project.
Indirect Impacts: Indirect impacts are those created based on the local expenditures generated from
the changes in inter-industry purchases (supplier to supplier) as they respond to the demands of the
directly affected industries. This includes output, income, and employment effects arising from local
spending for goods and services.
Induced Impacts: Induced impacts are estimated based on the increase in local incomes attributable
to the project. This includes output, income, and employment effects on all local industries caused
by the expenditures of household income generated by the direct and indirect impacts,
Output: Output estimates represent the estimated increase in total production for all industries in
the region supported by the project - a measure of overall economic activity, Output can also be
thought of as the increase in the value of total sales 25 "Gross Local Product",
Employment: Employment estimates represent the estimated total jobs created and supported by
the project, on both a temporary and ongoing basis.
important assumptions
Construction impacts of the project arise from the activity of building the project, and occur only
while the project is being built. When the project is cornplete, these construction impacts end.
Ongoing impacts such as the impact of the operations of the built facility are presumed to be "on-
going" and are described on an annual basis.
Data sources
Data used for IMPLAN software analysis includes the market area determined by Bridge House. Data
sources include North American Industrial Classification System (NAICS) codes; Regional Economic
Information System Sectoring (REIS); Bureau of Labor Statistics Sectoring; Bureau of Economic Analysis
Input-Output Sectoring; and, County Business Patterns; BLS CEW (Covered Employment and Wages
program).
The description of IMPLAN Methodology was adapted from the IMPLAN Version 2 User's Manual, 3rd
edition, 2007.
Appendix II — Key Parties
About the impact consultants: Baker Tilly Virchow Krause, LIP
Baker Tilly is the 12th largest CPA and business consulting firm in
BAKER TILLY the country, according to the 2014 Accounting Today's "Top 100."
In addition to being a CPA and consulting firm, we have affiliated
entities that allow us to uniquely serve our client base of developers, project owners, contractors, and
community development entities. Since 2001, the Baker Tilly practice has provided a variety of tax credit
and development services to project developers, including the preparation of pre-development and
post-development community Impact assessments,
About the Client: Bloomfield Village Owner, LIC/REDICO
Bloomfield Village Owner, LLC's managing member is REDICO° (Real
Estate Development and Investment Company), headquartered in
Southfield, Michigan. is a national real estate development,
investment, construction and property management leader. Their
expertise offers a diverse portfolio of capabilities including: real estate development, investment, asset
management, property management, capital partnering, design, construction, leasing, full-spectrum
property and facility services, advisory services in the office, retail,
ATTACHMENT J
Description of Expected Eligible Activities
23
Description of Expected Eligible Activities
Eligible activities currently are expected to include the following:
1. Preparation of a Brownfield Plan and Work Plan ("Plan") and submittal of the
Plan to the OCBRA for review and approval.
2. Baseline environmental assessment investigation activities such as sampling and
other site investigations conducted.
3. One or more baseline environmental assessments may be conducted on portions
of or the entire property that is the subject of the brownfield plan.
4. One or more documentations of due care compliance may be prepared for
portions of or the entire property that is the subject of the brownfield plan,
5. Qualified environmental professionals will observe and obtain samples of soils
and water encountered during construction in portions of the property where
hazardous substances may be present at levels exceeding unrestricted residential
criteria applicable to the property. Samples will be evaluated to determine if off-
site disposal or other additional response activities should be conducted.
6. One or more no further action reports or certificates of completion may be
prepared and submitted to the Michigan Department of Environmental Quality
depending upon the results of response activities conducted at the property.
7. Soils exceeding unrestricted residential criteria will be excavated from a portion
of the property that was previously used as an orchard and disposed of in an
appropriate disposal facility. Testing and reports will be prepared with respect to
this work.
8. Based upon the results of groundwater sampling, it is possible that extraordinary
construction dewatering techniques will be implemented to properly manage
groundwater during construction activities,
9. Due to the nature of previous filling activities, impacted soil and other material
will need to be excavated and disposed of off-site in accordance with applicable
laws.
10. Demolition, including a pre-demolition survey; demolition of the majority of
existing structures, demolition and removal of certain infrastructure; fill
compaction and rough grading to balance the site where improvements were
located; and engineering and design work directly associated with demolition
activities,
Ii. Site preparation, including geotechnical engineering; clearing and grabbing;
temporary construction access; temporary traffic control; temporary site control;
storm sewer relocations; and utility relocations and installation; engineering and
design work directly associated with site preparation.
12. Infrastructure improvements, including installation of parking lots and parking
structures, sidewalks, curbs, gutters and bus stops; engineering and design work
related to infrastructure improvement activities,
13. Approved interest costs.
14. Project management and meetings.
24
Description of Eligible Activities Estimated Cost
Demolition 2,908,534
Site Preparation 11,308,237
13,569,495 Infrastructure
Parks, Streetscape, Sidewalks 2,149,156
Lightening 440,000
Roads 720,651
Parkin_ 16,645,582
Engineering, Architect, Structural, Environmental
Fees 2,537,016
Permits and Review Fees 745,833
Testing 1,345,102
Interest 1,086,108
Contin_ency (15%) 7,816,592
Subtotal Site Eligible Activities 59,927,203
OCBRA Administrative Costs 150,000
Brownfield Plan and Work Plan Preparation 35,000
Total Estinjated Costs to be Funded Through TIF 60,112,203
25
ATTACHMENT K
TIF Table
22121719 7
26
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A I B I c D I E 1 F T G a I L I 1 I K I L I rA 1 N I 0 l• s 1 0, J. 2 The Village at Bloomfield - Attachment K, Estimated Tax 3 Increment Revenue 4 5 Est. Stabilized Value upon completion $ -7"mm Br Plan Year 1 2 3 4 8 6 7 a 9 19 11 12 13 14 6 I TV I 2017 2018 2019 2920 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Base Year Initial TV -. POntiac 2,631,680 s 9 Est. True cash value of Pontiac Property 5,368,627 5,476,000 51,375,012 80,065,9130 81,667,300 83,300,645 84,966,659 860555,992 88,399,312 90,157,298 91,970,644 53,810,057 95,686,258 97,599,963 10 Est Taxable Value of Pontiac Property 2,684,314 2,738,000 25,687,506 40,032,990 40,633,660 4'1,650,323 42,483,329 43,332,996 44,199,056 45,083,649 45,985,322 46,905,028 47,643,125 48,799,992 11 Est Incremental TV of Pontiac Property 23,055,826 37,401,310 38,201,970 39,018,643 39,851,649 40,701,316 41,587,976 42,451,969 43,353,642 44,273,348 45,211,449 48,168,312 12 Assumed annual TV increase rate 2.00% 13 14 Incremental Tax Estimates: Millages 19 School Taxes 16 School Operating 18.0000 - - 415,005 573,224 687,635 702,336 717,330 732,624 743224 764,135 780,356 796,920 813,806 831,030 17 State Educ Tax 5.0000 _ - 138 335 224,408 229 212 234,112 239,110 244 208 245,408 254,712 260,122 265,640 271,269 277,010 19 Total School Taxes Capturable 24.0000 553,340 1397,631 916,847 938,447 956,440 976,832 997,631 1,018,847 1,040,487 1,062560 1,085.075 1,108,039 19 20 Non-School Tares 21 City (includes 1.00101' Library)* 282,980 459,052 468,580 478,903 489,127 499,556 510,193 521,043 532,110 543,398 554.912 565,656 zz County {includes 0.2392 Parks) - 98,660 160,048 163,474 166,959 170,533 174,159 177,878 181,660 185,519 189,456 193,469 197,563 23 015 - 77,002 124913 127,587 130,314 133,097 135,934 138,829 141,781 144,792 147,854 150,997 154,193 24 OCPTA (trans) 0.9941 - 22,920 37,181 37,977 38,788 39,617 43,461 41,323 42,202 43,098 44,012 44,945 45896 25 HCMA 0.2146 - - 4,948 8,026 8,198 8,373 8,552 8,735 6,920 9,110 9,304 9,501 9,702 9,908 26 Oakland Community College - - 30.214 58,746 60,004 61,287 62,685 63,930 85,291 56.679 68,096 69,540 71,014 72517 27 Seniors 11,528 18,701 19,101 19,509 15926 20,351 20,784 21,228 21,677 22,137 22,606 23,084 zs Capital Improvement 1.4091 - 32,488 52,702 53,830 54,981 56,155 57,352 58,573 59,819 61,090 62,386 63,707 65,055 29 Sanitation 2.8163 - - 64,978 105,408 107,665 109,965 112,314 114,709 117,151 119,642 122,184 124,776 127,419 130,116 30 Total Non-School Capturable 27.3996 631.718 1.024,777 1,048 715 1,069.091 1,091,915 1 115 196 1 1 38.942 1.163163 1197.868 1 213 068 1,236,771 1,264,989 31 Total School and Local Capturable .51.3995 0 0 1,185,058 1,922,409 1,963,562 2,005,539 2048,355 2,092,027 2,135,573 2,182,010 2,228,356 2,275,628 2,323,846 2,373,028 32 33 Taxes Generated but Not Captured 34 MESSA Judgment (not captured) 0.4000 - 9,222 14,951 15,281 15,607 - - - - - - - 35 DIA Tax (not captured) 0,1581 - 4,567 7,409 7,568 7,730 7,895 13,063 8,235 8,410 8,588 8,771 8,956 9,146 36 ZOO Tax (not captured) 0.0990 - 2,283 3,703 3,782 3,863 3,945 4,029 4,115 4,203 4,292 4,383 4,479 4,571 37 Total Not Captured 0.6971 - - 16,072 28,072 26,631 27,200 11,840 12,092 12,350 12,512 12,880 13,154 13,432 13,717 38 39 Yearly Incremental Taxes Captured - - 1,185,058 1,922,409 1,963,562 2,005539 2,048,355 2,052,97 2,136,573 2,182,010 2,228,356 2,275,628 2,323,845 . 2,373,028 40 41 42 43 Combined Yearly Incremental Taxes Captured - 1,185,058 1,922,409 1,963,562 2,005,539 2,048,355 2,092,027 2,136,573 2,182,010 2228,356 2,275,628 2,323,846 2,373,028 44 45 Administrative Fee to BRA (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) 46 Deposit to State Brownfield Revolving Fund - - (69,167) (112,204) (114,606) (117,058) (119,555) (122,104) (124,704) (127,355) (130,051) (132,820) (135,834) (138,505) 47 Annual Remaining Taxe.s Available - - 1,110,890 1,805,205 1,843,956 1,883,493 1,923,800 1,964,923 2.006,869 2,049,654 2,093,295 2,137,808 2,183,212 2,229,523 48 Cumulative Remaining Taxes Captured - 1,110,890 2,916,095 4,760,051 6,643,534 8,567,334 10,532,257 12,539,127 14,588,781 18,682,075 18,819,883 21,003,095 23,232,618 49 Total Est. Eligible Costs 60,000,090 50 Annual Disbursements to Developer or Local Rev. Fund - 1,110,890 1,805,205 1,843,956 1,883,483 1,923,800 1,964,923 2,006,869 2,049,654 2,093,295 2,137,808 2,183,212 2,229,523 51 Disbursements to Developer from School Taxes - 484,172 785,428 802,241 819,392 835,885 854,728 872,927 891,491 910,426 929,740 949,440 969,535 52 Disbursements to Developer from Non-School Taxes - - 625,718 1,019,777 1,041,715 1,064,091 1,066,915 1,110,196 1,133,942 1,158,163 1,182,868 1,208,058 1,233,771 1,259,989 53 Beginning Unreimbursed Eligible Costs 60,000,000 60,000,000 60,000,000 58,869,110 57,083,905 55,239,949 53,356,465 51,432,666 49,467,743 47,460,873 45,411,219 43,317,925 41,180,117 38,998,905 57 Cost Reimbursements Paid to Developer (1,110,890) (1,805,205) (1,843,956) (1,853,483) (1,923,800) (1,964,923) (2,006,869) (2,049,654) (2,093,295) (2,137,808) (2,183,212) (2,229,523) se Ending Unreimbursed Casts 90,000,000 60,000,000 58,889,110 57,083,905 55,239,949 53,356,456 51,432,666 49,467,743 47,460,873 45,411,219 43,317,925 41,180,117 38,996,905 36,767,382 59 Annual Taxes Captured for Local Revolving Fund - - - to Cumulative Taxes Captured for Local Revolving Fund - - 55 66 67 • PA 425 agreement requires City to pay Two equivalent of 3 mills 58 99 70 71 72 73 75 22649011
R I 5 I 7 1 U I V I W I X r I Z dAA I AS I AC I A0 I AE .1 AF I AG I Ali I Al I AS 3 4 5 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 6 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 204-8 Total 7 8 9 99,551,983 101,543,022 103,573,883 105,645,361 107,758,268 109,913,433 112111,702 114,353,936 116,641,015 118,973,835 121,353,312 123,780,378 126,255,985 128,781,105 131,356,727 133,983,862 136,663,539 139,396,810 10 49,775,991 50,771,511 51,786,941 52,822,680 53,879,134 54,956,717 56,055,851 57,176,968 58,320,507 59,486,917 60,676,656 61,890,189 63,127,993 64,390,553 65,678,364 66,991,931 68,331,769 69,698,405 ii 47,144,311 48,138831 49,155261 50,191,000 51,247,454 52,325,037 53,424,171 54,545,288 55,688,827 56,855,237 58,044,976 59,258,509 60,496,313 51,758,873 63,048,884 64,3603251 65,700,089 67,066,725 n 13 14 15 15 848,598 866,517 884,795 903,438 922,454 941,851 961,635 981,815 1,002,399 1,023,394 1,044,810 1,066,653 1,088,934 1,111,660 1,134,840 1,158,485 1,182,602 1,207,201 26,994,712 17 282,666 285.839 294,932 301.146 307,485 313,950 320545 327,272 334,133 341,131 348270 355,551 362,978 370.553 378,280 386,162 394,201 402,400 8,998,237 18 1,131,463 1,155,356 1,179,726 1,204,584 1,229,939 1,255,801 1,282,180 1,309,087 1,336,532 1,364526 1,393,079 1,422,204 1,451,912 1,482,213 1,513,120 1544,646 1576,802 1,609,601 35,992,950 19 - 20 - 21 578,635 590,654 603,317 616,029 628,996 642,222 655,712 669,473 683,508 697,824 712,427 727,321 742,514 758,010 773,816 789,938 806,383 823,157 18,406.945 22 201,740 206,000 210,345 214,777 219,298 223,909 228,613 233,410 238,304 243,295 248,366 253,579 256,876 264,279 269,789 275,410 281,144 286,992 6,417,543 za 157,453 160,777 164,169 167.825 171,166 174,755 178,426 182,170 185,990 189,885 193,859 197,912 202,046 206,262 210,563 214,950 219,425 223,989 5,008719 24 46,866 47,656 48,865 49,895 50,945 52,016 53,109 54,223 55,360 56,520 57,703 58909 60,139 61,394 62,675 63,981 65,312 66871 1,490,858 25 10,117 10,331 10,549 10,771 10,998 11,229 11,465 11,705 11,951 12,201 12,456 12,717 12,983 . 13,253 13,530 13,812 14,099 14,393 321,837 25 74,060 75,613 77,208 78,835 60,494 82,187 83,913 85,674 87,470 89,303 91,171 98077 95,022 97,005 99,027 101,091 103,195 105,342 2,355,589 27 23,572 24,070 24,578 25,096 25,924 26,163 26,712 27,273 27,844 28,428 29,022 29,629 30,248 30,879 31,523 32,180 32,850 33,533 748853 28 56,431 67,834 69,265 70,724 72,213 73,731 75,280 76,860 78,471 80,115 81,791 88501 85,245 87,024 88,839 90,699 92,578 94504 2,118236 29 132,667 135,672 138,534 141,453 144,431 147,468 150,565 153,725 156,948 160,235 163,588 167,008 170,497 174,055 177,684 181,386 185,163 189,014 4,228622 30 1 291 731 1 319 007 1 346,830 1.375.208 1.404.155 1 433.660 1 463.796 1454,514 1.525,846 1557.805 1,590.403 1 623 654 1,657,569 1,692,162 1 727 448 1 763,439 1.800.150 1,837.595 41,091,201 31 2,423,194 2,474,363 2,526,556 2,579,792 2,634,094 2,689,481 2,745,976 2,803,601 2,862,378 2,922,331 2,983,483 3,045,858 3,109,480 3,174,375 3,240,568 3,308,085 3,376,952 3,447,196 77,084151 32 33 - 34 - - - - - - - - - - - - - 55,071 - - - - 35 9,339 9,537 9,738 9,943 10,152 10,366 10,583 10,605 11,032 11,263 11,499 11,739 11,984 12,234 12,490 12,750 13,015 13,286 297,092 35 4,667 4,786 4,866 4,969 5,073 5,180 5,289 5,400 5,513 5,629 5,746 5,867 5989 6,114 6,242 6,372 6,504 6,640 148,471 37 14,007 14,302 14,604 14,912 15,226 15.546 15,672 16,205 16,545 16,892 17,245 17,606 17,973 18,349 18,731 19,121 19,519 19.926 500,634 38 39 2,423,194 2,474,363 2,526,556 2,579,792 2,634,094 2,689,481 2,745,976 2,803,601 2,662,378 2,922,331 2,983,483 3,045,858 3,109,480 3,174,375 3,240,568 3,309,085 3,376,952 3,447,196 77,084,151 ao . . • . 41 42 - 43 2,423,194 2,474,363 2,526,556 2,579,792 2,634,094 2,689,481 2,745,976 2,803,601 2,862,378 2,922,331 2,983,483 3,045,858 3,109,480 3,174,378 3,240,568 3,308,085 3,376,952 3,447,196 77,064,151 (5,000) (5,000) (5,000) (5,000) (5,009) (5,000) (5,009) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (150,000) 45 45 (141,433) (144,419) (147,466) (150,573) (153,742) (156,975) (160,273) (163,636) (167,066) (170,566) (174,135) (177,776) (1131 ,489) (185,277) (185,140) (193,081) (197,100) (201,200) (4,499,119) 47 2,276,761 2,324,944 2,374,090 2,424,219 2.475,351 2.527,506 2,580,703 2,534,965 2,690,311 2,746,765 2,804,348 2,863,082 2922,991 2,984.099 3,046.428 3,110,004 3,174,851 3,240,996 48 25,509,379 27,834,323 30,208,413 32,532,632 35,107,983 37,935,489 40,216,192 42,851,157 45,541,468 48,288,233 51,092,581 53,955,663 58878,655 59,562,753 62,909,181 66,015,185 69,194,037 72,435,033 49 - 50 2,276,761 2,324,944 2,374,090 2,424,219 2,475,351 2,527,506 2,580,703 2,634,965 2,690,311 2,746,765 2,804,348 2,863,082 2,922,991 2,984,099 3,046,428 3,110,004 3,174,651 3,240,996 72,435,033 51 890,031 1,010,838 1,032,260 1,054,011 1,076,197 1,098,826 1,121,908 1,145,451 1,169,465 1,193,960 1,218,944 1,244,429 1,270,423 1,296,936 1,323,980 1,351,565 1,375.702 1,408,401 31,493,831 52 1,286,731 1,314,007 1,341,830 1,370,208 1,399,155 1,428,580 1,458,796 1,489,514 1.520,846 1,552,805 1,585,403 1,618,654 1,652,569 1,687,162 1,722,448 1,758,439 1,795,150 1,832,595 40,941,201 53 36,767,382 34,490,621 32,165,677 29,791,587 27,367,368 24,892,017 22,364,511 19,783,808 17,148,843 14,458,532 11,711,767 8,907,419 6,044,337 3,121,345 137,247 - 17 (2,276,761) (2,324,944) (2,374,090) (2,424,219) (2,475,351) (2,527,506) (2,580,703) (2,634,965) (2,690,311) (2,746,766) (2,804,348) (2,863,082) (2,922,991) (2,984,099) (137,247) - - (60,000,000) 91 34,490,621 - 32,165,677 - 29,791,587 - 27,367,368 24,892,017 - 22,364,511 - 19,783,808 17,148,843 14,458,532 - 11,711,767 - 8,907,419 6,044,337 - 3,121,345 - 137,247 (2,909,181) - (3,110,004) - (3,174,851) - (3,240,996) 59 60 - - - (2,909,181) (6,019,185) (9,194,037) (12,435,033)
FISCAL NOTE (MISC.#17012 , January 26, 2017
BY: Commissioner Tom Middleton, Chairperson, Finance Committee
IN RE: ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS - RESOLUTION APPROVING THE
PROVISIONS OF A BROWNFIELD PLAN AMENDMENT FOR THE VILLAGE OF BLOOMFIELD- CITY
OF PONTIAC PROJECT
To The Oakland and County Board of Commissioners
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced
resolution and finds:
1. The resolution adopts a Brownfield Plan relating to the clean-up and redevelopment of property at
Village of Bloomfield site in The City of Pontiac to restore the property's environmental and
economic viability.
2. The developer, Bloomfield Village Owner LLC, has assumed Brownfield related eligible activity
development costs estimated at $60,112,203 including remediation of environmental impacts,
environmental investigations, due care, demolition, site preparation, infrastructure, parking,
administrative controls, and preparation of environmental reports.
3. The cost of these eligible plan activities will be reimbursed to the developer by the Oakland
County Brownfield Redevelopment Authority (OCBRA) from tax capture based on the incremental
difference on the taxable value of the property; estimated at $6,417,543 for Oakland County
capture amount over a thirty (30) year period.
4. No budget amendment is required as the budget already includes estimated tax capture offsets.
mmiSsioner Ten Middleton, District #4
Chairperson, Finance Committee
Resolution #17012 January 26, 2017
Moved by Kochenderfer supported by McGillivray the resolutions (with fiscal notes attached) on the
amended Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Crawford, Fleming, Gershenson, Gingell, Hoffman, Jackson, Kochenderfer, KowaII, Long,
McGillivray, Middleton, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (19)
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, Lisa Brown, 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 January 26,
2017, 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 26th day of January, 2017.
Lisa Brown, Oakland County
Resolution #17012 February 15, 2017
Moved by Bowman supported by Middleton to reconsider Miscellaneous Resolution #17012 - Economic
Development and Community Affairs - Resolution Approving the Provisions of a Brownfield Plan
Amendment for the Village of Bloomfield - City of Pontiac Project.
Discussion followed.
AYES: Hoffman, Jackson, Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz,
Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman, Crawford, Dwyer, Fleming,
Gershenson, Gingell. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was before the Board for reconsideration.
Discussion followed.
Moved by Bowman supported by Taub the resolution be amended to add:
MISCELLANEOUS RESOLUTION #17012
BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee
IN RE: ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS - RESOLUTION APPROVING
THE PROVISIONS OF A BROWNFIELD PLAN AMENDMENT FOR THE VILLAGE OF
BLOOMFIELD - CITY OF PONTIAC PROJECT
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commicsioncrs does
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does
hereby approve and adopt, subject to the six contingencies set forth in the OCBRA September
16, 2016 resolution (attached), the Brownfield Redevelopment Plan to be carried out within the
City of Pontiac, relating to the Village of Bloomfield redevelopment.
Vote on amendment:
AYES: Jackson, Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub,
Tietz, Weipert, Woodward, Zack, Berman, Bowman, Crawford, Dwyer, Fleming, Gershenson,
Gingen, Hoffman. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the amendment carried.
Vote on resolution, as amended:
AYES: Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert,
Woodward, Zack, Berman, Bowman, Crawford, Dwyer, Fleming, Gershenson, Gingell, Hoffman,
Jackson. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution, as amended was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 February 15,
2017, with the original record thereof now remaining in my office.
In Testimony Whereof, I have
p_caiac, Mich hi 5th d
I HER )// ?
THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PUR$UANT TO MCL 45.559A (7)
Lisa Brown, Oakland County
eunto set my hand and affixed the seal of the County of Oakland at
ebruary, 2017.