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HomeMy WebLinkAboutResolutions - 1995.02.09 - 24443MISCELLANE= RESOLUTION #9500 February 9, 1995 BY: Planning & Building Committee, Charles E. Palmer, Chairperson RE: FACILITIES MANAGEMENT - PROPOSED OFFER TO PURCHASE OAKLAND POINTE OFFICE PARK I AND II TAX SIOWELL NUMBERS 14-30-251-001 AND 14-30-251-002 LOCATED IN THE CITY OF PONTIAC To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS on November 1, 1994, the Planning and Building Committee authorized the Department of Facilities Management to negotiate the possible purchase of Oakland Pointe Office Park I and II, tax sidwell numbers 14-30-251-001 and 14-30-251-002, pursuant to (Miscellaneous Resolution #91090) Board of Commissioners' Procedure for Sale and Purchase; and WHEREAS, Oakland Pointe Office Park I and II have been appraised in the amounts of $3,930,000, $4,100,000 and $4,300,000; and WHEREAS, The Planning and Building Committee instructed the Department of Facilities Management to submit an offer to purchase which was not to exceed the mid-point of the two lowest appraisals ($4,015,000) for the acquisition of Oakland Pointe Office Park I and II; and WHEREAS, an Offer to Purchase in the amount of $3,800,000 was submitted and accepted by the owners of the Oakland Pointe Office Park I and II subject to the approval of the Oakland County Board of Commissioners and contingent on a satisfactory and approved Phase I Environmental Site Assessment; and WHEREAS, the County Executive has reviewed and recommends the purchase of Oakland Pointe Office Park I and II, tax sidwell numbers 14-30-251-001 and 14-30-251-002, in the amount of $3,800,000; and WHEREAS, The 1995 Capital Improvement Program included $6,440,000 for the acquisition and renovation of new office buildings to provide office space for Friend of the Court and other County operations; and WHEREAS, a loan is requested from the Delinquent Tax Revolving Fund (DTRF) in the amount of $6,440,000. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorize the purchase of Oakland Pointe Office Park I and II in the amount of $3,800,000 from Riggs National Bank, Washington, D.C., as trustee of the Multi-Employer Property Trust (MEPT). BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes its Chairperson to execute the necessary documents to effect the same. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is authorized to execute the attached Borrowing Agreement in the amount of $6,440,000 with the County Treasurer as the agent of the Delinquent Tax Revolving Fund. Chairperson, on behalf of the Pla_nTling to4-al4ilding Committee, move the adoption of the foregoiA re401u PANNING & BUILDING COMMITTEE REVOLVING FUND BORROWING AGREEMENT WHEREAS the County of Oakland is desirous of borrowing monies from the Oakland County Delinquent Tax Revolving Fund, and WHEREAS the Delinquent Tax Revolving Fund Agent has determined sufficient monies are available to loan to the County, THEREFORE. in consideration of agreements setforth below it is hereby agreed by and between the parties as follows: The County will borrow the principal sum of $6,440,000 from the Delinquent Tax Revolving Fund to be paid back in annual principal and interest payments not to exceed seven (7) years. Said payments shall be deducted from the annual Revolving Fund distribution made to the County on or about June 1st of each year. Interest on each payment will be based on the average monthly rate paid during the term of the Fund for that year's outstanding borrowing: or in the event no borrowing occurs for the DTRF, principal and interest payments will be made in accordance with the previously established "Loan of County Funds Policy", (Misc. Resolution #89276). The schedule of principal payments will be: Year Principa[ 1 $920,000 2 920,000 3 920.000 4 920,000 5 920,000 6 920,000 7 920,000 Total $6,440,000 It is further agreed that the County may pay off the loan at any time plus accrued interest without penalty_ Agent for Revolving Fund Chairperson Board of Commissioners E AND PERSONNEL COMMITTEE FINA FISCAL NOTE (Misc. # 95030 ) February 9, 1995 BY: FINANCE AND PERSONNEL COMMITTEE, John P. McCulloch, Chairperson IN RE: FACILITIES MANAGEMENT - PROPOSED OFFER TO PURCHASE OAKLAND POINTE OFFICE PARK I AND II TAX SIDWELL NUMBERS 14-30-251-001 AND 14-30-251-002 LOCATED IN THE CITY OF PONTIAC To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution # 95030 and finds: 1) The resolution authorizes the purchase of Oakland Point Office Park I and ll from Riggs National Bank, Washington, D.C., as trustee for the Multi-Employer Property Trust (MEPT) for $3,800,000. 2) The 1995 Capital Improvement Program included $6,440,000 for the acquisition and renovation of new office buildings to provide office space for Friend of the Court and other County operations. 3) An advance in the amount of $6,440,000 is being requested from the Delinquent Tax Revolving Fund. Interest on each payment will be based on the average monthly rate paid during the term of the Fund for that year's outstanding borrowing; or in the event no borrowing occurs for the DTRF, principal and interest payments will be made in accordance with the previously established "Loan of County Funds Policy", (Misc. Resolution #89276). 4) The County currently leases 33,200 square feet of space from Oakland Pointe Park at a monthly cost of $52,598 through August 14, 1995. If negotiations are completed by March 14. 1995, five months rental ($262,991) shall be applied to the first payment. The remaining portion of the 1995 payment shall be paid from the Facilities & Operations Fund balance. 5) The 1996 budget will reflect increases in Building Space Rental for the appropriate departmental budgets for the principal payment and in the non-departmental appropriation, Building Fund (Account #4-10100-901-01-00-8410), for the interest portion. Therefore, no additional funding is requested at this time. In Testimony Whereof, I have hereunto set my hand and af,g4xed the seal o County of Oakland at Pontiac, Michigan this 9th day of Wbivar r..r.A.u., • pr. Lynn. Allen, County Clerk Resolution *495030 February 9 , 1995 Moved by Palmer supported by Kingzett the resolution be adopted. DisCussion followed. AYES: Holbert, Huntoon, Jacobs, Jensen, Kaczmar, Kingzett, Law, McCulloch, McPherson, Moffitt, Obrecht, Palmer, Powers, Quarles, Schmid, Taub, Wolf, Amos, Crake, Devine, Dingeldey, Douglas, Garfield. (23) NAYS: Johnson. (1) A sufficient majority having voted therefor, the resolution was adopted. I HERE)dookr&PROV -.09 Allk Ais jeah...dierrier 12-Brooks Patter County Executive OREGOINP. PESOLUTION Date STATE OF MICHI3AN) COUNTY OF OAKLAND; 1, Lynn D. Allen, 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 February 9, 1995 with the original record thereof now remaining 111 my office.