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HomeMy WebLinkAboutResolutions - 1994.09.08 - 24310. September 8, 1994 • • MISCELLANEOUS RESOLUTION NO. #94265 RE: DEVELOPMENT AND PLANNING DIVISION RESOLUTION APPROVING PROJECT PLAN (ROSE HILL CENTER, INC. PROJECT) - HOLLY TOWNSHIP 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 Rose Hill Center, Inc. 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 July 19, 1994, the governing body of Holly Township, Oakland County, Michigan, also approved the Project Plan; and WHEREAS, on August 18, 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: Dated: , 1994 i 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 Board of Colimi.ssioners 94 the County of Oakland, Michigan held on the 4°tfl day of el:IbmIDIer , 1994, the original of which is on file in my office. Public notice of said meeting was given pursuant to and in complianc wi h Act No. 267 of the Michigan Public Acts of 1976, as am died n Count* Clerk (RLS/5167) . 4 I .. I - EXHIBIT A THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County, Michigan Rose Hill Center Project PROJECT PLAN CONTENTS 1. Summary Description of Project (Page 2) 2. Project Plan Certification by Company (Page 3) 3. Statutorily Required Information (Page 4) 4. Exhibits "A" - Project Area Legal Description "B" - Bond Purchaser's Commitment Letter "C" - Company Certificate Regarding "Prevailing Wages" - Company Certificate Regarding Transfer of Employment Other (RLS -80) PROJECT PLAN SUMMARY DESCRIPTION OF Rose Hill Center PROJECT OWNER OF PROJECT: Rose Hill Center, Inc., A Michigan not-for-profit corporation CONTACT PERSON: (Name, address, telephone number) Ronald L. Stuursma, President 5130 Rose Hill Blvd, Holly, MI 48442 (810) 634-5537 LOCATION OF PROJECT: (Local municipality) Holly Township PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Mental Health Rehabilitation Center EMPLOYMENT CREATED OR RETAINED: Approximately 20 additional employment positions created Exisiting 30 positions retained. TOTAL PROJECT COST: $1,878,000 BONDS TO BE ISSUED: $1 million BOND PURCHASER: Individual investors DATE AND EXPIRATION DATE OF BOND PURCHASE COMMITMENT: July 5, 1994 Expiration Date December 31, 1994 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. Rose Hill Center i Inc By: *jeW,Iureeni. 44A^4o-sir4.0%...- Its: President Dated: 7/11/94 •n••. 2 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING Rose Hill Center 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: No public facilities exist within the project_district area, and none are proposed. Rose Hill Center's 372 acres will be largely retained as a farm with 40 acres for a residential treatment and rehabilitation c -,nter for individuals with serious mental illness. Property will also accommodate housing for up to 25 resident staff and family members. 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: No demolition, repair or alteration. 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: Construction of two new facilities (1) A 20 bed residential building (2) 7 unit apartment building. Construction began April 1994 with an estimated completion date of January 1995. nn• 3 IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: Two facilities will be constructed by January 1995. The first is a 20 bed residential facility for individuals with severe and persistent mental illness. The second is a 7 unit apartment for resident staff. V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: Rose Hill Center's 372 acres includes 190 acres of tillable farm land. As a result of this project, only 20 acres of tillable land will be lost. The remaining land is composed of wooded areas surrounding three small lakes. 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. •m• 4 VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES: None required. VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE BOND PURCHASER'S COMMITMENT LETTER: The project cost will be $1,878,000. $1,000,000 will be covered by this tax-exempt and bond issue. The remander will be covered by $878,000 currently on hand from previous fund raising. 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. 5 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: Ronald L. Stuursma, Executive Director and President of Rose Hill Center will have overall management of this project. TRACEN INC., of Clarkston, MI have been retained to serve as construction managers. 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: The project will neither be leased nor sold nor conveyed to the ownership of any other corporation. Rose Hill Center, Inc. will own and operate the project for the benefit of individuals with serious mental illness. 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: The project will be retained and operated by Rose Hill Center Inc. 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 - 6 - 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: Not applicable. No people presently reside in the Project Area, no families or individuals will be displaced by the Project, and no residences are located in the Project Area. Fifteen-staff and approximately 25 mentally ill residents live on the Rose Hill property. No one will be displaced as result of this project. 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 RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970, 42 U.S.C. 4601 TO 4655: Not applicable. 7 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 AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT: Not applicable. 8 EXHIBIT A Land situated in the Township of Holly, Oakland County, Michigan, described as follows: Parcel I: Part of the Southeast 1/4 of Section 10, Town 5 North, Range 7 East, lying Easterly of the center line of Fagan Road. Subject to the rights of the public and of any governmental unit in any part thereof taken, used or deeded for street, road or highway purposes. Parcel No. 01-10-400-001. Parcel II: The Northwest 1/4, also the West 3/4 of the Southwest 1/4, Section 11, Town 5 North, Range 7 East. Subject to the rights of the public and of any governmental unit in any part thereof taken, used or deeded for street, road or highway purposes. Parcel No. 01-11-100-001 Parcel III: The Northeast 1/4 of the Northeast 1/4 of Section 15, Town 5 North, Range 7 East, Subject to the rights of the public and of any governmental unit in any part thereof taken, used or deeded for street, road or highway purposes. Parcel No. 01-15-226-001. ALSO COVERS OTHER LAND. 0:/MAL/DMAL0666 A LAHRING RD GRANGE HALL RD N. HOLLY RD DIXIE Rost ROSE HILL CENTER HOLLY TOWNSHIP, MI V V RD HOLLY E. HOLLY RD LOCATION MAP R 05E HILL NBD Bank, N.A. One East First Street Flint, Michigan 48502 Phone 313.760.8411 Todd A. Graham Vice President July 5, 1994 Mr. Ronald L. Stuursma, President Rose Hill Center, Inc. 5130 Rose Hill Blvd. Holly, Michigan 48442 Dear Ron: On behalf of NBD Bank, N.A., I am pleased to inform you that the following credit facilities have been approved. Borrower: Rose Hill Center, Inc. Credit Facility A: $1,045,206 authorization expiring 12-31-94 to issue a secured Standby Letter of Credit (S/L/C) expiring not later than 12-31-99 Pricing: 11/2% of S/L/C payable annually in advance. Fees: Facility and Closing Fees: $10,452 (1%) fee with $5,226 payable upon acceptance (non- refundable) and the balance due at issuance. All legal expenses of NBD Bank, N.A. and Bond Counsel, together with all out-of-pocket costs to be paid by subject. Disbursement Fee: $100 fee for each draw by the Trustee under the S/L/C. Placement/Remarketing Fee: 1. 1 1/2% of Bond at closing. 2. 1/8% of Bond payable annually in advance. Purpose: To insure payment of $1,000,000 Industrial Revenue Bonds to be issued to assist Rose Hill Center in financing Phase II costs. Drawing Rights: Drawing under the S/L/C by the Trustee may result from: 1. Payment of principal and/or interest on the Bonds when due. 2. Default under the Bond Indenture or under the Reimbursement Agreement. 3. The tender of bonds at the bondholder's option. Subsidiary of NBD Bancorp, Inc. July 5, 1994 Mr. Ronald L, Stuursma, President Rose Hill Center, Inc. Page -2- Collateral: First real estate mortgage on land and buildings located at 5130 Rose Hill Blvd, Holly, MI. Supporting Documents: Reimbursement Agreement between NBD Bank and Rose Hill Center as follows: 1. Default rate is NBD Bank prime plus 3% 2. Deferred reimbursement rate is NBD Bank prime plus 1 1/2%. 3. Capital adequacy adjustment to maintain an after tax return to be established at closing. 4. Cross default to other NBD Bank debt. 5. Principal covenants on the company as follows: a. Debt service coverage ratio no less than 1.2:1.0 (Defined as excess revenues plus pledges divided by annual debt). b. No other loans, liens, leases without prior NBD Bank approval. c. Total annual capital expenditures not to exceed $100 without prior NBD Bank approval. D. Maintain State of Michigan license. 6. Draws by the account parties from the restricted cash fund will be limited as follows: a. Loan-to-value not to exceed 60% b. Capital expenditures by Rose Hill Center to total 40% of Phase II costs prior to disbursement. c. Date down endorsement and lien waivers required prior to disbursements. Conditions Precedent: 1. Designation of Bond Counsel and trustee acceptable to NBD Bank. 2. All documents must be satisfactory in form and substance to NBD Bank and its legal counsel. 3. Satisfactory compliance with NBO's Environmental Policy. 4. Satisfactory receipt and review of appraisal. Loan to value not to exceed 60%. 5. Construction manager acceptable to NBD Bank. 6. Satisfactory review of fixed price contracts. Bond Maturities: Interest paid quarterly; annual principal payments of $100,000 in years 6 through 15. Letter of Credit Maturities: Not later than 30 days following fifth anniversary unless extended by NBD. Servicing Requirements: 1. Annual audited financial statement. 2. Quarterly direct financial statements. July 5, 1994 Mr. Ronald L. Stuursma, President • Rose Hill center, Inc. Page -3- Credit Facility B $150,000 authorization expiring 4-30-95 Pricing: 1% over that rate announced from time to time by NBD Bank, N.A. as its prime rate. Purpose: Working capital needs. Servicing Requirements: 1. Annual audited financial statement. 2. Quarterly direct financial statements. Please indicate your acceptance of this commitment by signing the enclosed copy and returning it to my attention together with a check in the amount of $5,226 made payable to NBD Bank, N.A. no later than July 22, 1994. Ron, we at NBD are pleased to be of continued service to Rose Hill in meeting its financial needs. Rose Hill's progress has certainly been noteworthy and we look forward to a long and mutually beneficial relationship. Sincerely, P Todd A. Graham Commercial Lending Division Accepted and Agreed to this /1 day of Rose Hill Center, Inc. By: Ronald L. Stuursma Its: President , 1994 By: Exhibit C COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES Rose Hill Center, Inc. Project) The undersigned, Rose Hill Center, Inc. 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, 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 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 Rose Hill Center. 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. 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. Rose Hill Center, Inc., , a Michigan 1 nprnfit rorpnratinn Its: President Dated: 7111/94 Exhibit D COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT ( Rose Hill Center, Inc. Project) The undersigned, Rose Hill Center, Inc. a Michigan non profit 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, 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 Rose Hill Center, 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. 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 Holly Township , 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 Holly Township Michigan unless the Company or such - 10 - lessee or 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. Rose Hill Center, Inc , a Michigan non profit corporation By: j:ZA,eal,..261.deLme2k.,... Its: President Dated: 7/11/94 RESOLUTION DECLARED ADOPTED: Lynn D: Allen County Clerk OP' IHERE: .PPRO.- E FOREGOING RESOLUTION 4l1. A.,5,,PRn fheiht( L :rooks PattelirA0 County Executive Date 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 the foregoing resolution. Ade:d P-rNNING AND erLDING COMMITTEE Moved by Palmer supported by Johnson the resolution be adopted. YEAS: Members: McCulloch. McPhQrson. Miltner. Moffitt. Newhy. Oaks, Obrecht, Palmer, Powers, Schmid, Taub, Wolf, Crake, DingPldey. Douglas. fiarfiPld. Gosling Huntonn, Jensen, Johnson, Kaczmar, Kingzett, Kramer, Law. (24) NAYS: Members: None_ CO} ABSENT: Members: Pernick. (1) ABSTENTIONS: Members: None. JSO 2