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HomeMy WebLinkAboutResolutions - 2017.11.09 - 23182( ommissioner Philip Weipert, District #8 Chairperson, Planning and Building Committee MISCELLANEOUS RESOLUTION #17314 November 9, 2017 BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION APPROVING THE ISSUANCE OF REFUNDING BONDS (ROCHESTER COLLEGE PROJECT) — CITY OF ROCHESTER HILLS To Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS The Economic Development Corporation of the County of Oakland (the "EDC") has been requested by Rochester University (d/b/a Rochester College, the "College") to approve the issuance of refunding bonds in a maximum principal amount of $20,000,000 (the "Bonds") to refinance certain outstanding indebtedness of the College incurred for College campus improvements, including indebtedness representing bonds originally issued by the EDC in 1996 and 2001 under the Economic Development Corporations Act (the "Act"); and WHEREAS because (i) the Bonds are proposed to include costs of issuing the Bonds and (ii) the maturity of the Bonds will exceed the maturity of the outstanding indebtedness to be refinanced, the Internal Revenue Code of 1986, as amended, requires that the Board of Commissioners (1) hold a public hearing on the question of whether the Bonds should be issued and (2) following the public hearing, approve the issuance of the Bonds; and WHEREAS the Board of Commissioners, following such public hearing, hereby concurs in the determination of the EDC to issue the Bonds. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves the issuance of the Bonds, upon such terms and conditions as the [DC and its bond counsel determine to be necessary and appropriate under the circumstances. BE IT FURTHER RESOLVED that the County Clerk is hereby directed to provide four certified copies of this resolution to the Assistant Secretary of the Board of the EDC. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. DiouNsoN(VSTRIGHTp.L.Lc MEMORANDUM TO: Mary P. Langhauser, Assistant Secretary of 1 The Economic Development Corporation of the County of Oakland FROM: Robert L. Schwartz DATE: October 20, 2017 SUBJECT: Public Hearing Regarding EDC/Rochester College Refinancings The Economic Development Corporation of the County of Oakland (the "EDC") issued bonds for the benefit of Rochester College (now, Rochester University d/b/a Rochester College, the "College"), a Michigan nonprofit corporation, in 1996 and 2091 for the purpose of financing various improvements to the College's campus. Those bonds have since been refinanced and additional financing undertaken for additional campus improvements (collectively, the "Loans"). The College is desirous of refinancing the Loans, and the EDC has preliminarily approved the issuance of new bonds (the "New Bonds") for the College, the proceeds of which will be used to prepay the Loans and pay bond issuance costs. The College expects that a significant savings will be achieved through the issuance of the New Bonds. The Internal Revenue Code of 1986, as amended (the "Code"), requires that, if new bonds are issued to refinance existing bonds, and the principal of the new bonds is larger than the outstanding principal of the old bonds or the maturities of the new bonds is longer than the maturity of the refinanced debt, a public hearing must be held by the, governing body of the governmental unit in which the economic development corporation is located, and the issuance of the new bonds must then be approved by such governing body. In the past, in connection with the EDC's issuance of bonds for new projects, the Board of Commissioners has always held the public hearing required by the EDC Act and the Code and has approved the issuance of the bonds by the EDC. To comply with the requirements of the Code, the EDC is now requesting that the Board of Commissioners similarly hold a public hearing for the proposed refunding bonds, and approve the issuance of the bonds by the EDC, as it has in connection with other projects in the past. Please do not hesitate to contact me if you have any questions regarding the subject matter of this memorandum or the proposed refinancing. Respecifully, Robert L. Schwartz BLOOMFIELD 9723-24 1941475v1 Rochester College Project , Rochester Hills EDC No. 18-01 Company: Project: Location: Project Cost: Job Impact: Financing: Rochester College is a 501c3 organization formed in 1959 as an institution of higher learning. The college is fully accredited by the Higher Learning Commission North Central Association, offering 38 bachelor degrees and one master degree program. Rochester College provides educational programming for nearly 1,200 students. Rochester College intends to refinance long teiill debt of approximately $19.6 million as well as financing and professional fees. The EDC issued bonds in 1996 and 2001 for improvements to the campus. These bonds were refinanced along with additional financing for campus improvements. The college will realize significant savings through the issuance of new bonds. 800 West Avon Road Rochester Hills, Michigan 48307 Refinancing $19,600,000 Jobs Retained 141 Jobs Created 15 Flagstar Bank 5151 Corporate Drive Troy, Michigan 48098 Owner: Rochester College f/A / Resolution #17314 November 9, 2017 Moved by Fleming supported by Bowman the resolutions (with fiscal notes attached) on the amended Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Fleming, Gershenson, Gingell, Hoffman, Jackson, Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (21) 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). 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 November 9, 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 9th day of November, 2017. Lisa Brown, Oakland County