Loading...
HomeMy WebLinkAboutResolutions - 2017.07.19 - 23020MISCELLANEOUS RESOLUTION #17203 July 19, 2017 BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee IN RE: ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS - RESOLUTION ABOLISHING OF THE BROWNFIELD PLAN FOR THE 4080 WEST 11 MILE- CITY OF BERKLEY 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 a Brownfield Plan for the 4080 West 11 Mile site had been approved on June 17, 2008 via miscellaneous resolution #08146; and WHEREAS cleanup and redevelopment of the site has occurred; and WHEREAS the developer had requested $107,539.96 in eligible expenses to be reimbursed; and WHEREAS tax increment financing being captured on the project has not and will not generate enough to begin to pay the developer back for their eligible activity for the project; and WHEREAS the Oakland County Brownfield Redevelopment Authority (OCBRA), the City of Berkley and the developer have all agreed to abolish the Brownfield plan for the 4080 West 11 Mile project. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby abolish the Brownfield Redevelopment Plan relating to the 4080 West 11 Mile project located in the City of Berkley. Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing resolution. Vommissioner Philip Weipert, District #8 Chairperson, Planning and Building Committee PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. RESOLUTION TO ABOLISH A BROWNFIELD REDEVELOPMENT PLAN FOR THE 4080 WEST 11 MILE BROWNFIELD SITE May 11, 2017 WHF,REAS, the 4080 W. 11 Mile Brownfield plan was established on May 15, 2008 WHEREAS, the cleanup and redevelopment plan has been established to restore the environmental and economic viability of this parcel; and, WHEREAS, all eligible activities were completed and a reimbursement request was submitted totaling $107,539.96; and, WHEREAS, there was only $142.40 in tax increment capture in 2016; and, WHEREAS, the OCBRA administrative fee is set at $1,000 per year during the duration of the Brownfield plan; and, WHEREAS, the tax increment financing will not generate enough to pay back the developer in accordance to the Brownfield plan; and, WHEREAS, IBK , LLC, the developer of 4080 W. 11 Mile has agreed to abolishing the Brownfield plan for 4080 W. 11 Mile; and, THEREFORE, BE IT RESOLVED, the Brownfield Plan for the IBK, LLC, project at 4080 W. 11 Mile shall be abolished effective May 11, 2017. Yeas- Williams, Hunter, Trigger, Webster, Wilson Nays- Abstained- an Hunter Secretary, Oakland County Brownfield Redevelopment Authority OAKLAND COUNTY, MICHIGAN BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN FOR: 4080 WEST ELEVEN MILE ROAD BERKLEY, MICHIGAN May 2008 Oakland County Brownfield Redevelopment Authority (OCBRA) Contact: Mr. Bradley Hansen Environmental Program Coordinator Oakland County Government 2100 Pontiac Lake Road 41W Waterford, Michigan 48238 Phone 248-858-8073 Prepared with the assistance of: PM Environmental, Inc, 22655 South Chrysler Drive Hazel Park, Michigan 48030 Approved by the Brownfield Redevelopment Authority on: Approved by the governing body of the local jurisdiction on: TABLE OF CONTENTS 1. INTRODUCTION AND PURPOSE 11. GENERAL DEFINITIONS AS USED IN THIS PLAN .1 III. ELIGIBLE PROPERTIES WITHIN THE BROWNFIELD ZONE .1 A. Description of Costs to Be Paid for With Tax Increment Revenues and Summary of Eligible Activities 3 B. Estimate of Captured Taxable Value and Tax Increment Revenues 4 C. Method of Financing and Description of Advances by the Municipality .4 D. Maximum Amount of Note or Bonded Indebtedness .4 E. Duration of Brownfield Plan 5 F. Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions 5 G. Legal Description, Property Map and Personal Property 5 H. Estimates of Residents and Displacement of Families 5 I. Plan for Relocation of Displaced Persons 5 J. Provisions for Relocation Costs 5 K. Strategy for Compliance with Michigan's Relocation Assistance Law 5 L. Description of Proposed Use of Local Site Remediation Revolving Fund 6 M. Other Material that the Authority or Governing Body Considers Pertinent 6 N. OCBRA Eligible Activity Cost Reimbursement Procedures 6 APPENDICES Appendix Append ix Append ix Appendix Appendix A Summary of Information Demonstrating the Site is a Facility • Proposed Site Development Diagram • Summary of Tax Increment Financing • Legal Description • Map of the Property with Current Site Features I. INTRODUCTION AND PURPOSE The Oakland County Brownfield Redevelopment Authority (Authority; OCBRA) is authorized to exercise its powers within the municipal limits of the City of Berkley. This Brownfield Plan applies to the subject property located at 4080 West Eleven Mile Road, which is within the boundaries of the City of Berkley, Oakland County, Michigan. The subject property is the site of a proposed commercial building redevelopment. The purpose of this Plan, to be implemented by the Authority, is to satisfy the requirements for a Brownfield Plan as specified in Act No. 145 of the Public Acts of 2000, M.C.L. § 125.2651 et. seq., as amended, which is known as the "Brownfield Redevelopment Financing Act." Tax increment financing through OCBRA will be used to assist PM Environmental, Inc. (Business Entity to own the subject property is IBK, L.L.C.) in performing eligible activities needed to prepare the brownfield subject property for redevelopment. II. GENERAL DEFINITIONS AS USED IN THIS PLAN All terms used in this Brownfield Plan are defined as provided in the following statutes, as appropriate: The Brownfield Redevelopment Financing Act, 1996 Mich. Pub. Acts. 381, M.C.L. § 125.2651 et seq., as amended. Section 38d and 38g of the Single Business Tax Act, 1975 Mich. Pub. Acts. 228, M.C.L. § 208.1 —208.145, as amended. Part 207 of the Natural Resources and Environmental Protection Act, 1994 Mich. Pub. Acts 451, M.C.L. § 324.20101 et seq., as amended. III. ELIGIBLE PROPERTIES WITHIN THE BROWNFIELD ZONE Subject Prop erty The subject property is located in the City of Berkley at 4080 West Eleven Mile Road. The subject property consists of two (2) parcels located at the northeast corner of West Eleven Mile Road and Ellwood Street. The northern parcel (25-18-352-031) contains 0.31 acres and contains a surface parking lot and a 500 square foot storage building in the southeastern portion of the subject property. The southern parcel (25-18-352-029) contains 0.31 acres and is developed with an approximately 8,935 square foot vacant light industrial building. Asphalt paved parking is present north of the building, and landscaped areas are present south and west of the building. Original development of the subject property occurred in 1946 with the construction of the western portion of the current building. The southeastern portion was constructed between 1952 and 1957, and the northeastern portion was constructed in 1974 when the subject property was joined with the east adjoining property (4000 West Eleven Mile Road). The northern 1 parcel was also converted from vacant land into the current parking lot in 1974. Occupants of the subject property have included tooling and machining operations from 1946 until 2003. Additionally, the western portion of the building contained general offices and medical offices in the late 1970's, early 1980's, and late 1980's into the early 1990's. The subject property is located within a commercial and residential area of the City of Berkley and is currently zoned M-1 Industrial. West Eleven Mile Road is a commercial thoroughfare, with residential neighborhoods on side streets adjacent to the commercial properties. The property is bounded by Ellwood Avenue to the west and Eleven Mile Road to the south. The property is bordered to the north by residential developments and to the east by a surface parking lot and associated commercial business. Identification of the Property as a "Facility" The subject property is identified as a "facility' based on the presence of arsenic and chromium in soil at concentrations that exceed MDEQ Part 201 Tier 1 Drinking Water Protection (DWP), Groundwater Surface Water Interface Protection (GSIP), and/or Soil Direct Contact (SDC) Cleanup Criteria. A Category "N" Baseline Environmental Assessment (BEA), dated March 21, 2008, documenting the "facility" status is provided in Appendix A. Current plans envision redevelopment of the property into a commercial building to be utilized by PM Environmental, (PME) which is an Environmental and Engineering Consulting firm. Successful redevelopment is currently hindered by the presence of hazardous substances and environmental impacts on the property. Project Description PME has selected 4080 West Eleven Mile Road in the City of Berkley as its Metro Detroit Regional and field services dispatch office. This office will also serve as PME's national environmental risk management processing center and a dispatch location for environmental field services. Refer to Appendix B for a Proposed Site Redevelopment Diagram. These services include environmental due diligence, Phase I and II Environmental Site Assessments (ESAs), property condition assessments (PCAs), environmental drilling and monitoring well installation, remedial investigations, corrective action plan preparation and implementation and mold and asbestos inspections. The development will consist of the complete renovation of an existing former tool and die building. The building is over 60 years old and will be renovated to the block walls and floor. A new Geothermal heating and cooling ventilation system and heat pumps will be utilized along with new electrical, roof, plumbing, windows and doors and all interior walls. The building will house PME's current 15 Metro Detroit employees and have additional capacity for 20 new employees over the next four years. These are hourly environmental field scientists with pay ranging from $12 to $20/hour and salaried engineers, geologists and environmental scientists with pay ranging from $30,000 to $100,000 annually with excellent benefits. PME operates regional offices in Fort Wayne, IN, Decatur, AL, and Miami, FL, and will add staff in Michigan to service these growing markets. The total capital investment is expected to be $750,000 with approximately $400,000 in eligible investments. L.L.C. intends to use brownfield redevelopment tax increment financing to reimburse the cost of eligible environmental activities needed to prepare the property for safe redevelopment 2 and reuse. Additionally, IBK, L.L.C. may seek a "mini" Michigan Business Tax (MET) credit for the project. A. Description of Costs to Be Paid for With Tax Increment Revenues Cost Summary. The following summary lists potential costs based on previous site characterization investigation results. This Plan includes a summary of estimated Eligible Activities. If further site activities determine that these estimates must be modified, a Brownfield Plan amendment (if necessary) will be prepared for review and approval by OCBRA to finalize the tax increment component of this Plan. Tax increment revenues will be used to reimburse IBK, L.L.C. for Eligible Activities necessary to (a) evaluate the nature and extent of contamination or other hazardous substances present at unacceptable levels in soil and/or groundwater on the subject property, (b) identify and remove and/or remediate, if necessary, some or all of the soils and/or groundwater determined to contain hazardous substances in unacceptable concentrations or which are not suitable for the construction of buildings thereon, (c) implement due care activities required by law (i.e., landscaping and repaving asphalt parking lot areas to eliminate Direct Contact pathway), and (d) implement other activities permitted under the Brownfield Redevelopment Financing Act. The activities would be implemented as follows: a. Preparation of Phase I Environmental Site Assessment (ESA), Baseline Environmental Assessment (BEA), and Due Care Plan at a cost of approximately $6,000. b. Preparation of Work Plans and Brownfield Plan and associated activities (e.g. meetings with OCBRA, etc.) at a cost of approximately $10,000. c. Approximately $30,000 may be spent for demolition of building windows, roofing materials, overhead doors, and miscellaneous interior structures. d. Approximately $55,000 may be spent for landscaping and mill and repave asphalt parking lot to eliminate Direct Contact exposure for due care.. e. Approximately $7,500 may be spent to remove contaminated soil encountered during installation of Geothermal wells for the proposed Geothermal heating and cooling ventilation system. f. A contingency of $16,275 (approximately 15% of estimated project costs) is established to address unanticipated environmental and/or other conditions that may be discovered through the implementation of site activities. All activities are intended to be "Eligible Activities" under the Brownfield Redevelopment Financing Act. The total estimated cost of Eligible Activities subject to repayment or 3 reimbursement from tax increment revenues is approximately $108,500, with a potential $16,275 contingency, resulting in an approximate total cost of $124,775. In addition to the Eligible Activities described above, this Plan includes administrative fees for the OCBRA at $1,000/year and capture of an additional five (5) years of taxes for the local Revolving Loan Fund at $5,000/year. 13. Estimate of Captured Taxable Value and Tax Increment Revenues Incremental taxes on real property included in the redevelopment project will be captured under this Brownfield Plan to reimburse eligible activity expenses. The taxable value of the real property was $186,440 for the current tax year; no personal property is associated with the site. The estimated market value of the completed development is $750,000 at completion of the development in 2008. This assumes a one-year phase-in for completion of the redevelopment, which has been incorporated into the tax impact and cash flow assumptions for this plan. An annual increase in taxable value of 3% has been used for calculation of future tax increments in this plan. The estimated captured taxable value and tax increment revenues for the eligible property for each year of the plan are presented in Appendix C. The tax increment and capture year data presented in Appendix C are estimates based on currently available information. It is the intent of this Plan to provide for capture of all eligible tax increments in whatever amounts and in whatever years they become available until all project costs described in this plan are paid. Estimates Tax Increment Revenue Captured by the Authority: Over the life of the Plan the maximum tax increment captured by the Authority will be as follows: Oakland County Brownfield Redevelopment Authority Administrative Fees (24 years): $23,000 Revolving Loan Fund (5 years): $25,000 C. Method of Financing and Description of Advances by the Municipality Redevelopment activities at the property will be initially funded by IRK, L.L.C., the property owner. Costs for eligible activities funded by IBK, L.L.C. will be repaid under the Michigan brownfield redevelopment financing program (Michigan Act 381 of 1996, as amended) with incremental taxes generated by future development of the property. No advances will be made by the OCBRA or the City of Berkley for this project. IL Maximum Amount of Note or Bonded Indebtedness No note or bonded indebtedness will be incurred by any local unit of government for this project. 4 E. Duration of Brownfield Plan Incremental tax capture is expected to begin in 2008 and continue for up to 19 years. The OCBRA will capture an additional five (5) years for a total duration of 23 years. The Brownfield Plan will remain in effect for that time period. Extension of the Brownfield Plan will be at the discretion of the OCBRA, upon a request for extension from IBK, L.L.C. F. Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions Tax increment revenues generated by the redevelopment will be captured by the OCBRA. The impact of the BRA tax capture on local taxing authorities is presented in Appendix C. G. Legal Description, Property Map and Personal Property The legal description of the property included in this plan is attached in Appendix D. A map of the property with current site features is included in Appendix E. Personal property is not included at par of the eligible property and tax increment capture. H. Estimates of Residents and Displacement of Families No persons reside at property and no families or individuals will be displaced as result of this development. No occupied residences are involved in the development. Therefore, a demographic survey and information regarding housing in the community are not applicable and are not needed for this Plan. I. Plan for Relocation of Displaced Persons No persons will be displaced as a result of this development. Therefore, a plan for relocation of displaced persons is not applicable and is not needed for this plan. J. Provisions for Relocation Costs No persons will be displaced as a result of this development and no relocation costs will be incurred. Therefore, provision for relocation costs is not applicable and is not needed for this Plan. K. Strategy for Compliance with Michigan's Relocation Assistance Law No persons will be displaces as result of this development. Therefore, no relocation assistance strategy is needed for this plan. No persons will be displaced as a result of this development, and therefore, no relocation costs will be incurred. 5 L. Description of Proposed Use of Local Site Remediation Revolving Fund Taxes will captured from this project for the Local Site Remediation Revolving Loan Fund during the five (5) years following the complete capture of taxes for reimbursement of Eligible Activities described in Section III (A) above. These funds will be used for investigation and remediation on other Brownfield sites located within the Authority. No funds from the Local Site Remediation Revolving Fund shall be used to finance the costs of Eligible Activities on the eligible property under this Plan. M. Other Material that the Authority or Governing Body Considers Pertinent The total estimated cost of eligible activities incurred by IBK, L.L.C. to be reimbursed from tax increment revenue under this Plan is $124,775. The actual amount of tax increment revenue utilized for the purpose of reimbursing the cost of eligible activities shall not exceed the amount of $124,775 without this Plan being amended by OCBRA. IBK, L.L.0 and OCBRA shall enter into a Reimbursement Agreement containing additional terms and conditions related to the project described in this Plan. In accordance with this Plan and the Reimbursement Agreement the Authority will repay the amount advanced by 1BK, L.L.C. for Eligible Activities solely from the tax increment revenues realized from the Property in accordance with the terms of the Reimbursement Agreement between IBK, L.L.0 and OCBRA. N. OCBRA Eligible Activity Cost Reimbursement Procedures Eligible Activity Cost Reimbursement Upon approval of a Brownfield Plan for eligible property or the inclusion of additional parcels of eligible property in a Brownfield Plan where the owner/operator proposes to seek reimbursement of costs for eligible activities at eligible property, the OCBRA shall require the owner/operator to comply with the terms and conditions specified herein including the schedules governing the capture of the taxes, requests for reimbursement, required documentation, determination of eligible activities and reimbursement process as more fully defined below. Documentation of Eligible Costs Parties seeking reimbursement of costs of eligible activities attributable to eligible property should submit to the OCBRA requests for reimbursement on a monthly basis. These requests should include the following: 1. Reference to the Approved Brownfield Plan and parcel. 2. The total amount of the current monthly reimbursement request. 3. The total amount of the reimbursement requests sought to date pursuant to the Approved Brownfield Plan. 6 4. Identification of each eligible activity as a line item, the associated costs, with copies of detailed invoices for the eligible activities and proof of payment. (Parties seeking reimbursement should request detailed billings from contractors splitting out fees and costs of eligible activities from other services.) 5. Other information and documentation that may assist the OCBRA in determining whether the costs are for eligible activities attributable to an eligible property and that the costs are reasonable. This documentation may include evidence of a competitive bidding process and/or evidence that the costs are for eligible activities. 6. Certification by an authorized representative of the party seeking reimbursement that a) he or she has reviewed the request for reimbursement, b) the costs are for eligible activities attributable to eligible property, c) the request is for costs incurred and paid and d) he/she is authorized to seek reimbursement and to make the certification on behalf of the party seeking reimbursement. The OCBRA will make the final determination of eligibility for all requests for reimbursement. Reimbursements will take place as tax capture allows. Reimbursement payment is expected to occur biannually: Within 90 days of receipt of taxes. No payments will be made if property taxes on any of the eligible properties are delinquent. The OCBRA will make every effort to follow the reimbursement schedules as specified in OCBRA Brownfield Plans. For a specific Brownfield Plan, the OCBRA will not reimburse prior to or in excess of the amount of taxes captured from the eligible property. Shortfalls in capture will result in proportionate reductions in allocations made for eligible activity reimbursements. OCBRA administrative and legal costs for establishment and administration of the Brownfield Plan governing the eligible property take priority for reimbursement over all other eligible costs. Any residual administrative allocations not expended in a fiscal year will be carried forward to reimburse eligible administrative costs of the OCBRA The OCBRA reserves the right to deny or make partial reimbursement of requests for reimbursement, which it deems not in accordance with the Brownfield Plan, the Act and procedures, established by OCBRA for reimbursement. 7 trrininirr -11Hrrni Middleton, District#4 Chairperson, Finance Committee FISCAL NOTE (MISC. #17203) July 13, 2017 BY: Commissioner Tom Middleton, Chairperson, Finance Committee IN RE: ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS — RESOLUTION ABOLISHING OF THE BROWN FIELD PLAN FOR THE 4080 WEST 11 MILE- CITY OF BERKLEY 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 abolishes the Brownfield Plan relating to the cleanup and redevelopment of the 4080 West 11 Mile site located in the City of Berkley. 2. A reimbursement request totaling $107,540 was submitted by PM Environmental for completion of all eligible activities needed to prepare the brownfield property for redevelopment. 3. The project has not and will not generate sufficient tax increment financing to reimburse PM Environmental for the eligible expenses. 4. Abolishment of the Brownfield Plan for 4080 West 11 Mile project has been agreed upon by the Oakland County Brownfield Redevelopment Authority (OCBRA), the City of Berkley and PM Environmental. 5. A budget amendment is not required. FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Zack absent. Resolution #17203 July 19, 2017 Moved by Crawford supported by Quarles the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Fleming, Gingell, Hoffman, Jackson, Kochenderfer, Kowall, McGillivray, Middleton, Quarles, 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 Consent Agenda were adopted (with accompanying reports being accepted). 5Th 2/-.) 7( 2 i HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (7) 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 July 19, 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 19th day of July, 2017.