HomeMy WebLinkAboutResolutions - 1994.10.13 - 24267MISCELLANEOUS RESOLUTION NO. 94295
RE: DEVELOPMENT AND PLANNING DIVISION
RESOLUTION APPROVING PROJECT PLAN
(CRANBROOK EDUCATIONAL COMMUNITY PROJECT) -
BLOOMFIELD HILLS
BY: PLANNING AND BUILDING COMMITTEE
CHARLES E. PALMER, CHAIRPERSON
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, The Economic Development Corporation of the
County of Oakland (the "EDC") has recommended that this Board
of Commissioners approve the Project Plan required by the
Economic Development Corporations Act, Act No. 338 of the
Michigan Public Acts of 1974, as amended (the "Act") for the
Cranbrook Educational Community Project, a copy of which
Project Plan is attached hereto as Exhibit A (the "Project
Plan"); and
WHEREAS, the EDC's recommendation to this Board of
Commissioners was based upon its determinations that the
Project is reasonable and necessary to effectuate the purposes
of the Act, that the Project Plan prepared in connection with
the Project satisfies all of the requirements of Section 8 of
the Act regarding project plans, that the persons who will be
active in the management of the project for at least one (1)
year after the projected date of the County Board of
Commissioner's approval of the Project Plan will have
sufficient ability and experience to manage the Plan properly,
and that the proposed method of financing the Project is
feasible and a bond purchaser's commitment has been obtained;
and
WHEREAS, on September 13 , 1994, the governing body of
the City of Bloomfield Hills, Oakland County, Michigan, also
approved the Project Plan; and
WHEREAS, on September 8 , 1994, this Board of
Commissioners held a public hearing to consider whether the
Project Plan constitutes a public purpose as contemplated by
the Act; and
WHEREAS, this Board of Commissioners, following such
public hearing and its review of the Project Plan, concurs in
the determinations of the EDC with respect thereto;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE COUNTY OF OAKLAND, as follows:
1. The Project Plan, in the form attached hereto as
Exhibit A, is hereby determined to constitute a public purpose
as contemplated by the Act.
2. The Project Plan is hereby approved.
3. The EDC is hereby authorized to take such steps as are
necessary to implement the Project and the financing thereof by
the issuance of revenue bonds or notes.
4. 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 adoption of ',.he foregoing resolution.
WAS: Members: Moffitt. Oaks. Obrecht, Palmer. Pernick. Powers,
Schmid, Taub, Wolf, Crake, Dingeldey, Douglas, Garfield,
Gosling. Huntoon, Jensen. Johnson. Kaczmar. Kingzett,
Kramer, McCulloch, McPherson. (22)
EMS: Members: None- (0)
ABSENT: Members: Law. Miltner. Newby. (3)
ABSTENTIONS: Members: J nneLft)
RESOLUTION DECLARED ADOPTED:
Lynn D./Allen
County Clerk
2
STATE OF MICHIGAN )
) SS.
COUNTY OF OAKLAND )
I hereby certify that the foregoing is a true and complete
copy of a resolution adopted at a regular meeting of the Hoard
of Commissioners of the County of Oakland, Michigan held on
the 13th day of ürtnhpr , 1994, the original of which is
on file in my office. Public notice of said meeting was given
pursuant to and in compliance with Act No. 267 of the Michigan
Public Acts of 1976, as amended.
Lynn D/ Allen
County Clerk
Dated: October 13
(RLS/5244)
, 1994
3
PROJECT PLAN
SUMMARY DESCRIPTION OF
CRANBROOK EDUCATIONAL COMMUNITY PROJECT
OWNER OF PROJECT:
Cranbrook Educational Community, a Michigan nonprofit corporation
CONTACT PERSON: (Name, address, telephone number)
George T. Hedgespeth, Jr.
Vice President
Finance and Administration
Cranbrook Educational Community
380 Lone Pine Road
P.O. Box 801
Bloomfield Hills, MI 48303-0801
(810) 645-3111
LOCATION OF PROJECT: (Local municipality)
City of Bloomfield Hills
PROJECT AREA/DISTRICT AREA: (See Exhibit A)
NATURE OF PROJECT:
Construction of a new wing and renovation to the Brookside lower school (located
on Cranbrook Road). New wing will consist of three buildings for music studios,
science laboratories and an early childhood center. Total new square footage is
21,000 and 10,000 square feet in renovated space. Construction of an addition
and renovations to the Institute of Science. The expansion and renovation will
add approximately 20,000 square feet of new public space and will provide
additional space for exhibits, programs, visitor services and parking with improved
visitor accessibility and traffic flow. Reimbursement and future expenditures for
various major capital repairs and improvements as identified within a
comprehensive facilities audit completed in 1993. Such projects to include life
safety/serious damage concerns, stabilization of campus buildings, and
restoration. Build an architectural entrance feature that will reflect the legacy and
heritage of Cranbrook Architecture as well as serve as an entrance point to the
campus. Acquisition and installation of information technology including
computer hardware, software and systems.
EMPLOYMENT CREATED OR RETAINED:
Existing employees retained. Numerous construction jobs created. (Total full-time
employment approximately 450 employees).
TOTAL PROJECT COST:
Approximately $51,800,000
BONDS TO BE ISSUED:
$37,000,000 maximum.
BOND PURCHASER:
Underwritten by McDonald and Company with a rating from a national rating
agency.
DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT:
By: r
Its: Vice President
for Finance and
Administration
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.
aHE 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.
CRANBROOK EDUCATIONAL COMMUNITY,
a Michigan nonprofit corporation
Dated: Cf—F —YV
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
CRANBROOK EDUCATIONAL COMMUNITY 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:
Existing land within the Project Area/District Area is all owned by Cranbrook
Educational Community and contains no publicly-owned streets or other facilities.
the site contains the Cranbrook Academy of Art, Cranbrook Academy of Art
Museum, Cranbrook Institute of Science, and Cranbrook Schools. The Project
Area/District Area will be the site for the construction of a new wing and
renovation to Brookside lower school; expansion and renovation to the Institute of
Science; reimbursement and future expenditures for various major capital repairs
and improvements as identified within a comprehensive facilities audit;
reimbursement and future acquisition and installation of information technology,
including computer hardware, software and systems; and building of an entrance
feature; collectively constituting the project.
Legal description of Project Area attached as Exhibit A.
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:
Existing facilities will be retained; improvements described in I above.
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:
Reimbursement for capital expenditures and preliminary expenditures
(architectural, legal, etc-)
Approximately $3 million immediate.
1 year 2 year 3 year 4-5 year
Brookside 950,000 4,350,000 1,900,000
Institute of Science 1,000,000 4,300,000 8,000,000 6,100,000
Capital Repairs and 3,800,000 4,500,000 4,500,000 8,100,000
Improvements
Technology 300,000 350,000 350,000
Entry Feature 300,000 - -
6,350,000 13,500,000 14,750,000 14,200,000
IV. A DESCRIPTION OF THE CONSTRUCTION OF STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
Brookside construction and renovation expected to begin in Fall, 1994 and
continue until completion in Spring of 1997. Architectural work in process.
Institute of Science construction and renovation expected to begin in Spring of
1995 and continue until completion in 1998. Architectural work in process.
Capital repairs and improvements are in process and will continue through 1999.
Technology upgrades are in process and will continue through 1997.
Entry feature is in process and continue until complete in 1995.
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
No alterations of existing open space expected except areas impacted by building
additions.
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:
Not applicable
VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
No zoning changes are requested
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE
PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S
COMMITMENT LETTER:
McDonald and Company Securities, Inc. will purchase the bonds for resale with a
rating from a national rating agency.
Copy of bond purchaser's commitment letter attached as Exhibit B.
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 1
(ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN:
George T. Hedgespeth, Jr., Vice President for Finance and Administration
XI. DESIGNATION OF THE PERSONS 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:
Not applicable.
XII. IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT WITH A
PERSON OR PERSONS, NATURAL OR CORPORATE, THAT THE PROJECT WILL BE
LEASED, SOLD, OR CONVEYED TO THOSE PERSONS, THE PROCEDURES FOR
BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECT
UPON ITS COMPLETION:
Not applicable.
X111. 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 RANGES
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:
Not applicable. No people presently reside in the Project Area, no families
or individuals will be displaced by the Project, and no f es i de n ces are located in the
Project Area.
XIV. A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT
AREA:
Not applicable.
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 RELATION ASSISTANCE AND REAL
PROPERTY ACQUISITION POLICIES ACT OF 1970, 42 U.S.C. 4601 TO 4655:
Not applicable.
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:
Not applicable.
XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AUTHORITY, OR GOVERNING BODY CONSIDERS
PERTINENT:
Not applicable.
EXHIBIT A
The Project Area/District Area is comprised of the
property located in the City of Bloomfield Hills which is owned
by or for the benefit of Cranbrook Educational Community
including the property designated by the following sidwell
numbers:
12-19-14-351-013 1
12-19-14-351-013 2
12-19-22-426-003
12-19-22-426-005
12-19-22-200-002
12-19-22-176-001
12-19-22-176-002
12-19-22-200-001
12-19-23-176-009
12-19-23-101-002 1
12-19-23-101-002 2
12-19-23-101-003
12-19-23-301-001
12-19-23-301-002
12-19-23-301-004
12-19-14-351-012
12-19-15-451-002
12-19-14-351-015
12-19-14-351-016
12-19-14-351-017
12-19-14-351-011
12-19-11-351-014
(RLS/2601)
McDONALD & COMPANY
SECURITIES, INC.
EXHIBIT .B
- .11 •
MEA421151t3PWIlk SAX* t-vCHANGE
2(4:1 E. BROWN STREET • SUITE 150
IHRMDIGHAM, MICHIGAN 48009
1110-54n-5230 • FAX: 810,540-8886
Robert L Schwartz, Esq.
Dykema Gossett
505 North Woodard Avenue
Suite 3000
Bloomfield Hills, Michigan 48013
Re: Cranbrook Educational Community
$45,000,000 The Oakland County
Economic Development Corporation
Series 1994 '
Dear Bob:
This letter serves to confirm to you, as counsel to the Issuer, that McDonald & Company
Securities, Inc. ("McDonald") has been engaged to act as Underwriter of the captioned
bond issue. We presented Cr-anbrook to Moody's Investor Services last week and we
anticipate a decision on the rating process within the next week. It is expected that the
Bonds will be marketed and closed as soon as possible thereafter.
Please contact me if you should have any questions regarding the referenced transaction.
Since
L.
Catherine L Vaughan
First Vice President
CLV/firth
By:
Exhibit C
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Cranbrook Educational Community Project)
The undersigned, Cranbrook Educational Community, a
Michigan nonprofit corporation (the "Company"), hereby
certifies to The Economic Development Corporation of the County
of Oakland (the "EDC") as follows:
1. This Certificate is made and based upon the best
of the Company's knowledge and belief.
2. 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 Cranbrook Educational
Community 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.
3. Within the meaning and intent of Section 8(4)(h)
of the Act, 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.
CRANBROOK EDUCATIONAL COMMUNITY, a
Michigan nonprofit corporation
Its: Vice President
for Finance and
Administration
Dated:
Exhibit D
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Cranbrook Educational Community Project)
The undersigned, Cranbrook Educational Community, a
Michigan nonprofit corporation (the "Company"), hereby
certifies to The Economic Development Corporation of the County
of Oakland (the "EDC") as follows:
1. This Certificate is made and based upon the best
- of the Company's knowledge and belief.
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 Cranbrook Educational
Community 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.
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 Bloomfield Hills, Michigan, the
municipality in which the Project will be located.
5. The Company agrees that during the life of the
bonds proposed to be issued by the EDC to finance the costs of
the Project for the Company, the Company will not permit a
lease or sublease in connection with the Project which would
have the effect of transferring, as to such lease, sublease or
group of leases or subleases which are interrelated (i.e.
"interrelated" means leases negotiated as part of one set of
negotiations or leases with lessees who are related by more
than 50% common ownership), employment of more than 20
full-time persons from a municipality of this State to
Bloomfield Mills, Michigan unless the Company or such lessee or
for Finance and
Administration
By: AU dfrf - 7 Its: Vice Pres dent
sublessee has first obtained a consent to the proposed transfer
of employment from the governing body of each municipality from
which employment is to be transferred.
6. 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.
CRANBROOK EDUCATIONAL COMMUNITY, a
Michigan nonprofit corporation
Dated: E---7-1V