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Home My WebLink AboutResolutions - 1997.02.13 - 25024February 13, 1997 MISCELLANEOUS RESOLUTION #97014 BY: John Garfield, Commissioner, District No. 9 IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - AMENDMENT #2 TO PURCHASE AGREEMENT BETWEEN THE COUNTY OF OAKLAND AND THE CITY OF ROYAL OAK REGARDING THE SALE OF COUNTY PROPERTY LOCATED IN THE CITY OF ROYAL OAK AND IDENTIFIED AS THE FOURTH ' STREET OFFICE BUILDING (SIDWELL NO. 25-23-128-007); TROY STREET OFFICE BUILDING, (SIDWELL NO. 25-22-104-001); AND PART OF ROYAL OAK FARMER'S MARKET, (SIDWELL NO. 25-22-104-002) To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS on November 7, 1996 in Resolution #96184, the County of Oakland and the City of Royal Oak entered into a Purchase Agreement to sell to the City of Royal Oak County-owned property located in the City of Royal Oak and identified as Fourth Street Office Building, 2401 Fourth Street, Royal Oak, MI 48067 (Sidwell No. 25-23-128-007); Troy Street Office Building, 111 South Troy Street, Royal Oak, MI 48067 (Sidwell No. 25-22-104-001); and part of Royal Oak Farmer's Market, 316 East Eleven Mile Road, Royal Oak, MI 48067 (Sidwell No. 25-22-104- 002); and WHEREAS, on January 9, 1997, by adoption of M.R.#97001, the Board of Commissioners approved an extension of the closing date to no later than February 14, 1997, and WHEREAS the County and the City agreed to close on said properties identified as Fourth Street Office Building, 2401 Fourth Street, Royal Oak, MI 48067 (Sidwell No. 25-23-128-007) and part of Royal Oak Farmer's Market, 316 East Eleven Mile Road, Royal Oak, MI 48067 (Sidwell No. 25-22-104-002) on February 10, 1997, and at that closing several additional items were identified which need to be included in the purchase agreement as follows: Section 5 - CLOSING ON FOURTH STREET AND FARMER'S MARKET Amend the third sentence which originally read "By proceeding with the Closing on these parcels and except as set forth in Sections 8 and 9 below, Purchaser waives any title, structural, environmental or physical defects and accepts the conditions on all three(3) parcels" by adding the following language to the end of that sentence "...except as follows: As to the Troy Street property only: The original building plans, as noted in the Phase I Environmental Site Assessment, identified the presence of a 6000 gallon underground storage tank to the east of the building. It is the County's belief that no tank was actually installed. If, however, it is determined by further investigation that the described tank is present, the County agrees to pay the costs for tank removal and environmental remediation. In addition, the County will be responsible for resolving any environmental impairments to the property which originate between February 10, 1997, and the date possession is turned over to the Purchaser." Section 6 - CLOSING ON TROY STREET The second sentence which originally read - Seller may extend that date by up to one hundred twenty (120) days upon written notification to Purchaser" is deleted in its entirety and replaced by the following new sentences: John Garfield /477 /,' "Seller may extend that date until September 15, 1998, upon written notification to Purchaser; provided however that if Seller extends the closing past May 8, 1998, Seller shall pay Purchaser the difference, if any between (a) the cost of the demolition of the building on the TROY STREET property done at a different time than the demolition of the Elks Building at 203-205 S. Troy Street in Royal Oak, Michigan ("Elks Building") and (0) the cost of the demolition of the building on the TROY STREET property done at the same time as the demolition of the Elks Building. Purchaser agrees to notify Seller of the cost difference, if any, by January 15, 1998." WHEREAS it is mutually agreed it would be beneficial to both parties to adopt these two addendums to the Purchase Agreement; and WHEREAS all other terms and conditions of this Agreement shall remain at full force and effect. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners recommends the adoption of the above-stated Addendum to the Purchase Agreement between the County of Oakland and the City of Royal Oak. BE IT FURTHER RESOLVED the Oakland County Board of Commissioners directs its chairperson or its designee to execute the necessary document to amend said Purchase Agreement for the sale of properties identified as Fourth Street Office Building, 2401 Fourth Street, Royal Oak, MI 480E7 (Sidwell No. 25-23-128-007) and part of Royal Oak Farmer's Market, 316 East Eleven Mile Road, Royal Oak, MI 48067 (Sidwell No. 25-22-104-002) to the City of Royal Oak, in accordance with this resolution. Chairperson, I move the adoption of the foregoing resolution. From: Dave Ross To: Executive.PoissonG, Executive. ClausR Date: 12/20/96 11:47am Subject: U.G. Storage Tank - Troy Street Office Building The recently completed Phase 1 Environmental Site Assessment investigation of the Troy Street Office Building is not accurate. The report states that "a 6000 gallon fuel oil tank is buried on the property," This conclusion was apparently reached based on a fuel oil tank being shown on a site plan for the building and language included in the specifications regarding the tank and an oil fired boiler. However, further investigation also indicates the plans and specifications clearly stated the tank and oil fired boiler were ALTERNATES which means the contractors were to provide a separate price in their bids for installation of the tank and boiler. The plans and specifications in "detail" called for the installation of a gas fired borer which is what was installed. Additionally: 1) The design drawings only included the gas fired boiler. No oil fired boiler or storage tank installation design details are shown anywhere on the drawings or specifications. 2) There is no evidence of a second boiler ever being installed in the building. No concrete pad, piping, pipe hangers, holes in the ceiling,or evidence of any exterior wall penetrations for piping to the oil tank exists. 3) There is no one in the organization that remembers an oil fired boiler ever being in the building. That memory goes back to about 1963. 4) There is no evidence of a oil tank fill pipe, oil tank vent pipe or tank manhole being installed in the reported tank location. 5) Staff used a metal detector in an attempt to locate the tank on 12-19-96 and could not locate a tank. 6) The Troy Street Building is an extremely small building and its original use would not have been considered a critical function. The installation of a second boiler would not have been justified. It also would have been more costly to install an oil fired boiler and storage tank than the cost of a gas fired boiler. 7) It would not make any sense to remove ,3 boiler that was about 10 years old (in 1963). Boilers typically last 25 years or longer. I'm hopeful this information is helpful in clearing up the U.G. oil tank issue. If not, please give me a call. CC: JohnstonR, CampbellP. WessonL, ConnerM Resolution #97014 February 13, 1997 Moved by Garfield supported by Kacznar the resolution be adopted. AYES: Johnson, Kaczmar, Kingzett, Law, McPherson, Millard, Moffitt, Obrecht, Pernick, Powers, Taub, Wolf, Amos, Coleman, Devine, Dingeldey, Douglas, Garfield, Holbert, Huntoon, Jacobs, Jensea. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, 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 13, 1997 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 February 1997. CM9,tr _ Allen, County Clerk