HomeMy WebLinkAboutResolutions - 2018.06.13 - 23631MISCELLANEOUS RESOLUTION #18231 June 13, 2018
BY: Commissioner Michael Spisz, Chairperson, Economic Development & Community Affairs Committee
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS —
RESOLUTION APPROVING PROJECT PLAN (THE DETROIT SKATING CLUB, INC. PROJECT) —
CHARTER TOWNSHIP OF BLOOMFIELD
To Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Economic Development Corporation of the County of Oakland (the "EDC") has
recommended that the Board of Commissioners approve the Project Plan required by the Economic
Development Corporations Act (the "Act') for the captioned Project, a copy of which has been presented
to this meeting (the "Project Plan"); and
WHEREAS the EDC's recommendations to the Board of Commissioners were based upon its
determinations that the Project is reasonable and necessary to effectuate the purposes of the Act, that the
Project Plan satisfies all of the requirements of the Act regarding project plans and that a financial
institution acceptable to the EDC will be purchasing the bonds proposed to be issued by the EDC; and
WHEREAS the governing body of the Charter Township of Bloomfield, Oakland County, Michigan, has
also approved the Project Plan; and
WHEREAS the Board of Commissioners has held a public hearing to consider whether the Project Plan
constitutes a public purpose as contemplated by the Act; and
WHEREAS the Board of Commissioners, following such public hearing and its review of the Project Plan,
hereby certifies, approves and concurs in the determinations of the EDC with respect thereto.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
determines that the Project Plan constitutes a public purpose as contemplated by the Act.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby certifies and
approves the Project Plan.
BE IT FURTHER RESOLVED that the EDC is hereby authorized to take such steps as are necessary to
implement the Project and the financing thereof by the issuance of its limited obligation revenue bonds as
contemplated by the Project Plan.
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 Economic Development & Community Affairs Committee, I move the
adoption of the foregoing resolution.
Commissioner MchaeISy1sz,Dis
Chairperson, Economi evelopment &
Community Affairs Committee
ECONOMIC DEVELOPMENT AND COMMUNITY AFFAIRS COMMITTEE
Motion carried unanimously on a roll call vote.
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
The Detroit Skating Club, Inc. Project
PROJECT PLAN
CONTENTS
1. Summary Description of Project (Page I)
2, Project Plan Certification by Company (Page 2)
3. Statutorily Required Information (Page 3)
4. Exhibits
• - Project Area Legal Description
• Company Certificate Regarding Transfer of Employment
• - Company Certificate Regarding Payment of Prevailing Wages
Other
BLOOMFIELD 9723.25 2070315v2
PROJECT PLAN
SUMMARY DESCRIPTION OF
THE DETROIT SKATING CLUB, INC. PROJECT
OWNER OF PROJECT:
The Detroit Skating Club, Inc. (the "Applicant" or the "Club") is a Michigan nonprofit
corporation formed in 1938. The Club is organized on a membership basis and has been
determined to be a 501(c)(3) corporation. The charitable purpose of the Club includes fostering,
supporting, developing and promoting amateur athletes who are training for, and/or participating
in, national or international figure skating competition, national or international speed skating
competition, national or international hockey competition or national or international curling
competition. The Club's skating facility (the "Facility") is located at 888 Denison Court,
Bloomfield Township, Oakland County, MI. The Facility includes two NHL sized ice rinks and
an Olympic sized ice rink.
CONTACT PERSON: (Name, address, telephone number)
Jerod Swallow, Managing Director
Detroit Skating Club, Inc.
888 Denison Court
Bloomfield Hills, MI 48302
LOCATION OF PROJECT: (Local municipality)
888 Denison Court, Bloomfield Township, Oakland County, Michigan
PROJECT AREA/DISTRICT AREA: See Exhibit A — Legal Description Attached
NATURE OF PROJECT:
1. New Money Component, The Club is replacing the cold refrigerated floor in the C arena, due
to frost heaving across the center line. This requires the existing concrete floor to be cut out and
all underground plumbing replaced. The Club will be hosting the 2019 U.S. Figure Skating
Championships in the C arena in January 2019. The ice floor needs to he level and operating to
the standard expected for the Championships. The sub soil heating system which prevents frost
from forming underground will be replaced with a more efficient heating grid and more robust
pumps. In addition to the C arena project the Club is upgrading the electrical service for the
entire Facility (119,000 sq. ft). The current electrical service is undersized and outdated. The
project includes new electrical service to the building, new transformers, and new switch gear.
2. Refunding Component. A portion of the proceeds of the Bonds will be used to refinance the
outstanding balance ($3,246,666) of a term loan made by Fifth Third Bank to the Club for the
purpose of redeeming certain Limited Obligation Variable Rate Demand Revenue Bonds (The
BLOOMFIELD 9723-25 2070315v2
Detroit Skating Club, Inc.), Series 2005 issued in the original principal amount of $6,510,000 by
the EDC for the benefit of the Club. The proceeds of the Series 2005 Bonds were used to (i)
finance the expansion and improvement of the Facility ($2,135,000) and (ii) refund certain Series
1996 Bonds issued by the EDC for the benefit of the Club to finance capital improvements to the
Facility ($4,222,553).
EMPLOYMENT CREATED OR RETAINED:
24 jobs retained
TOTAL PROJECT COST:
Refunding Component $3,246,666
New Money Component; 800,000
Costs of issuance of Bonds 78334
Total Uses $4,125,000
BONDS TO BE ISSUED:
$4,125,000
BOND PURCHASER/UNDERWRITER:
Bonds to be purchased by Bank of Ann Arbor for its own loan portfolio in a direct placement.
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BLOOMFIEIX 9723-25 2070315v2
PROJECT PLAN CERTIFICATION
THIS PROJECT PLAN WAS PREPARED FOR THE
ECONOMIC DEVELOPMENT CORPORATION OF THE
COUNTY OF OAKLAND IN ACCORDANCE WITH THE
REQUIREMENTS OF THE ECONOMIC DEVELOPMENT
CORPORATIONS ACT, ACT NO. 338 OF THE MICHIGAN
PUBLIC ACTS OF 1974, AS AMENDED.
THE UNDERSIGNED HAS PROVIDED ALL OF THE
INFORMATION CONTAINED HEREIN AND HEREBY
CERTIFIES AS TO THE ACCURACY AND VALIDITY OF
SUCH INFORMATION AS OF THIS DATE.
THE UNDERSIGNED UNDERSTANDS THAT THIS PROJECT
PLAN IS STATUTORILY REQUIRED AND, IF IT CONTAINS
ANY MATERIAL MISREPRESENTATION OR
INACCURACY, COULD RESULT IN THE INVALIDATION
OF THE ECONOMIC DEVELOPMENT CORPORATION
PROCEEDINGS REGARDING THE PROJECT TO WHICH
THE PROJECT PLAN PERTAINS.
THE DETROIT SKATING CLUB, INC.
By:
fad Swallow
Its: Managing Director
Dated: April 26, 2018
3 BLOOMFIELD 9723-25 2070315v2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
THE DETROIT. SKATING CLUB, INC. PROJECT
I. THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER
PUBLIC FACILITIES WITHIN THE PROJECT DISTRICT AREA; THE LOCATION,
CHARACTER, AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRIVATE LAND
USES NOW EXISTING AND PROPOSED FOR THE PROJECT AREA, INCLUDING
RESIDENTIAL, RECREATIONAL, COMMERCIAL, INDUSTRIAL, EDUCATIONAL, AND
OTHER USES; AND A LEGAL DESCRIPTION OF THE PROJECT AREA:
See attached Exhibit A (legal description) and site plans submitted with EDC application.
II. A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE PROJECT AREA
TO BE DEMOLISHED, REPAIRED, OR ALTERED; A DESCRIPTION OF REPAIRS AND
ALTERATIONS; AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION:
Work on the Project commenced in January 2018. The skating rink improvements are
expected to be substantially completed in June 2018. The electric system building upgrades are
expected to be substantially completed by October 2018.
III. THE LOCATION, EXTENT, CHARACTER, AND ESTIMATED COST OF
THE IMPROVEMENTS, INCLUDING REHABILITATION CONTEMPLATED FOR THE
PROJECT AREA, AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION:
Estimated costs of Facility improvements to be financed with Bonds: $800,000
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE:
See IL above
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
No changes to existing open spaces at Project Site.
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BLOOMFIELD 9723-25 2070515v2
VI. A DESCRIPTION OF PORTIONS OF THE PROJECT AREA WHICH THE
ECONOMIC DEVELOPMENT CORPORATION OR THE COMPANY DESIRES TO SELL,
DONATE, EXCHANGE OR LEASE TO OR FROM THE MUNICIPALITY AND THE
PROPOSED TERMS:
N/A
VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
N/A
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE
PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE LEITER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER:
Bank of Ann Arbor will purchase the Bonds in a private placement transaction.
IX. A STATEMENT REGARDING THE PAYMENT OF PREVAILING WAGE
AND FRINGE BENEFIT RATES AS DETERMINED PURSUANT TO ACT NO. 166 OF THE
MICHIGAN PUBLIC ACTS OF 1965, AS AMENDED (REGARDING WAGES ON STATE
CONTRACTS):
See Exhibit C
X. A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH
THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN I (ONE)
YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN:
Jerod Swallow, Managing Director.
XI. DESIGNATION OF THE PERSON OR PERSONS, NATURAL OR
CORPORATE, TO WHOM THE PROJECT IS TO BE LEASED, SOLD OR CONVEYED
AND FOR WHOSE BENEFIT THE PROJECT IS BEING UNDERTAKEN, TO THE EXTENT
THAT INFORMATION IS PRESENTLY AVAILABLE:
N/A
XII. IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT WITH A
PERSON OR PERSONS, NATURAL OR CORPORATE, THAT THE PROJECT WILL BE
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BLOOM FIELD 9723-25 2070315v2
LEASED, SOLD, OR CONVEYED TO THOSE PERSONS, THE PROCEDURES FOR
BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECT
UPON ITS COMPLETION:
N/A
XIII. ESTIMATES OF THE NUMBER OF PERSONS RESIDING IN THE PROJECT
AREA AND THE NUMBER OF FAMILIES AND INDIVIDUALS TO BE DISPLACED, IF
OCCUPIED RESIDENCES ARE DESIGNATED FOR ACQUISITION AND CLEARANCE,
INCLUDE A SURVEY OF THE FAMILIES AND INDIVIDUALS TO BE DISPLACED,
INCLUDING THEIR INCOME AND RACIAL COMPOSITION, A STATISTICAL
DESCRIPTION OF THE HOUSING SUPPLY IN THE COMMUNITY, INCLUDING THE
NUMBER OF PRIVATE AND PUBLIC UNITS IN EXISTENCE OR UNDER
CONSTRUCTION, THE CONDITION OF THOSE IN EXISTENCE, THE NUMBER OF
OWNER-OCCUPIED AND RENTER-OCCUPIED UNITS, THE ANNUAL RATE OF
TURNOVER OF THE VARIOUS TYPES OF HOUSING AND THE RANGE OF RENTS
AND SALE PRICES, AN ESTIMATE OF THE TOTAL DEMAND FOR HOUSING IN THE
COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC
HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS:
N/A
XIV. A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT AREA:
N/A
XV. PROVISION FOR THE COSTS OF RELOCATING PERSONS DISPLACED
BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSEMENT OF
EXPENSES, INCLUDING LITIGATION EXPENSES AND EXPENSES INCIDENT TO THE
TRANSFER OF TITLE, IN ACCORDANCE WITH THE STANDARDS AND PROVISIONS
OF THE FEDERAL UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION POLICIES ACT OF 1970,42 U.S.C. 4601 TO 4655:
NIA
XVI. A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF THE MICHIGAN
PUBLIC ACTS OF 1972, WHICH PERTAINS TO PROVIDING FINANCIAL ASSISTANCE,
ADVISORY SERVICES AND REIMBURSEMENT OF CERTAIN EXPENSES TO
DISPLACED PERSONS:
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BLOOMFIELD 9723-25 2070315v2
N/A
XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AGENCY, OR. GOVERNING BODY CONSIDERS
PERTINENT:
N/A
7 BLOOMFIELD 9723-26 2070315v2
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
Land situated in the Township of Bloomfield, County of Oakland, State of Michigan described
as:
T2N R10E, SEC 5 BLOOMFIELD INDUSTRIAL PARK SUB LOTS 710 11 INCL, ALSO 'A
VAC DENISON CT ADJ TO SAME, ALSO PART OF SE % BEG AT PT DIST N 87-37-02 W
344.45 FT & N 02-19-18 E 232.81 FT & N 56-07-36 W 462.47 FT & N 56-14-48 W 67.46 FT &
N 52-21-00 W 419.57 FT N 02-18-52 E 498,14 FT FROM SE SEC COR, TH N 02-18-52 E
299.59 FT, TH S 87-41-08 E 399.84 FT, TH S 02-18-52 W 299.59 FT, TH N 87-41-08 W
Tax Parcel Number: C-19-05-476-088
Commonly known as 888 Denison Court
A-1 BLOOMFIELD 9723-25 2070315v2
THE DETROIT SKATTNG CLUB, INC., a
Michigan nonprofit cotporjition
By:
erod Swallow
- Managing Director
Exhibit B
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(The Detroit Skating Cluh, Inc. Project)
The undersigned, The Detroit Skating Club, Inc., a Michigan nonprofit corporation (the
"Company"), hereby certifies to The Economic Development Corporation of the County of
Oakland (the "EDC") as follows:
I. This Certificate is made and based upon the best of the Company's knowledge and
belief, only after thorough investigation and discussion with all owners of the Company and
others who might have knowledge regarding the subject matter.
2. The Company acknowledges that this Certificate will be employed by the EDC as
the sole basis for the EDC's certification to the Board of Commissioners of the County of
Oakland as to transfer of employment as required by Section 8(3) of the Economic Development
Corporations Act, Act No. 338 of the Michigan Public Acts of 1974, as amended (the "Act"),
3. The Company understands that the EDC's Certification to the Board of
Commissioners of the County of Oakland is a statutory requirement which, if improperly made
or based upon any material misrepresentation or inaccuracy, might invalidate the proceedings
regarding The Detroit Skating Club, Inc. (the "Project") pursuant to which the EDC expects
ultimately to issue its limited obligation economic development revenue bonds to finance all or
part of the Project.
4, As of the date hereof, the Project shall not have the effect of transferring
employment of more than 20 full-time persons from a municipality (as that term is defined in the
Act) of this State to the Charter Township of Bloomfield, the municipality in which the Project
will be located.
5. The Company understands that a covenant to effectuate the purposes of this
Certificate will be included in those covenants to be made by the Company when bonds are
issued by the EDC for the benefit of the Project.
Dated; April 26, 2018
B4
BLOOMFIELD 9723-25 2070315v2
THE DETROIT SKATING CLUB, INC, a
Michigan nonprofit corporation
By:
d Swallow
'Managing Director
Exhibit C
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(The Detroit Skating Club, Inc. Project)
The undersigned, The Detroit Skating Club, Inc., a Michigan nonprofit corporation (the
"Company"), hereby certifies to The Economic Development Corporation of the County of
Oakland (the "EDC") as follows:
1. The Company understands that this Certificate is a statutory requirement under
the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974,
as amended (the "Act") which, if improperly made or based upon any material misrepresentation
or inaccuracy, might invalidate the proceedings regarding The Detroit Skating Club, Inc. Project
(the "Project") pursuant to which the EDC expects ultimately to issue its limited obligation
economic development revenue bonds to finance all or part of the Project.
2. Within the meaning and intent of Section 8(4)(h) of the Act, to the best of the
knowledge and belief of the undersigned, all persons performing work on the construction of the
Project will be paid the prevailing wage and fringe benefit rates for the same or similar work in
the Locality in which the work is to be performed, as determined pursuant to Act No. 166 of the
Michigan Public Acts of 1965, as amended,
Dated: April 26,2018
BLOOMFIELD 9723-25 2070315v2
Resolution #18231 June 13, 2018
Moved by Hoffman supported by Zack the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Crawford, Fleming, Gershenson, Hoffman, Jackson, Kochenderfer, Kowall, Long,
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 amended
Consent Agenda were adopted (with accompanying reports being accepted).
I HEREBYAPIDAOVi/141-8 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 June 13, 2018,
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 13th day of June, 2018.
Lisa Brown, Oakland County