HomeMy WebLinkAboutResolutions - 1998.05.21 - 25439May 21, 1998
MISCELLANEOUS RESOLUTION #98129
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: DEVELOPMENT AND PLANNING DIVISION RESOLUTION APPROVING PROJECT PLAN
(SLP ENGINEERING, INC. PROJECT) - CITY OF WIXOM
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 and that the Project Plan satisfies all of
the requirements of the Act regarding project plans; and
WHEREAS the governing body of the City of Wixom, Oakland County,
Michigan, has also approved the Project Plan and given its consent to the
exercise of jurisdiction over the Project by the EDC; 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, concurs in the determinations of the EDC with
respect thereto;
NOW THEREFORE BE IT RESOLVED that the Project Plan is hereby determined
to constitute a public purpose as contemplated by the Act and is hereby
approved; and
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; and
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 Planning and Building Committee, I move
the adoption of the foregoing resolution.
.1Br7NNItiG AND BUILD.MG—QMMITTEE
Motion carried unanimously on a roll call vote.
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE couNTy OF OAKLAND
Oakland County, Michigan
SLP Engineering, Inc. Project
PROJECT PLAN
CONTENTS
I. Summary Description of Project (Page 1)
2. Project Plan Certification by Company (Page 2)
3. Statutorily Required Information (Page 3)
4. Exhibits
"A" - Project Area Legal Description
"B" - Letter of Credit or Bond Purchaser's Commitment Letter
"C" - Company Certificate Regarding Transfer of Employment
- Company Certificate Regarding Payment of Prevailing Wages
Other
PROJECT PLAN
SUMMARY DESCRIPTION OF
SLP ENGINEERING, INC. PROJECT
OWNER OF PROJECT: SLP Engineering, Inc.
CONTACT PERSON:. (Name, address, telephone number) Sam A. Eidy
1465 Axtell Road
Troy,Miehigan 48084 (248) 288-3888
LOCATION OF PROJECT: (Local municipality)
Wixom,Michigan
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT: Procurement of Building and Capital Manufacturing
Equipment for the purpose of making and validating Specialty
Automobiles and Automotive test products.
EMPLOYMENT CREATED OR RETAINED: 90-110 new job positions.
TOTAL PROJECT COST: 5.75 Million Dollars
BONDS TO BE ISSUED: W.Y. Campbell & Company
Approximately $6,000,000.00
LETTER OF CREDIT ISSUER OR BOND PURCHASER: Comerica Bank
DATE AND EXPIRATION DATE OF LETTER OF CREDIT OR BOND PURCHASE
COMMITMENT: Letter of Credit Date - February 27, 1998
Termination Date of Letter of Credit June 1, 2001
Its : e•-,1.:riLifit. 4-
Dated: 6 91'
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
INFORNIATION 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 PROCEED-
INGS REGARDING THE PROJECT TO WHICH THE PROJECT
PLAN PERTAINS.
SLP ENGINEERING, INC.
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
SLP ENGINEERING, 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:
Legal description of Project Area attached as Exhibit A.
IL 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:
60,900 Sq.ft.,Building currently under Construction
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:
New 60,900 Sq. Ft. Facility currently under construction
on Pontiac Trail - Cost $2,970,000.00
Estimated time of completion - June 1, 1998.
Capital Equipment Facilitation and Expenditure
per Exhibit "E" attached.
3
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE:
See Item III - Above.
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS
OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
None.
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
4
VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
No changes to Zoning, Streets, or Intersections
Desire use of municipal water source.
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE
PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER:
Industrial Revenue Bonds to Issue from W.Y. Campbell & Co.
secured by letter of Credit from Comerica Bank.
Copy of Letter of Credit or 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):
Not Applicable.
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:
Ed Hamburger - President - SLP Engineering, Inc.
Mark Alfes - General Manager - SLP Engineering, Inc.
XL 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:
None.
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:
None.
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
None.
6
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:
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
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By:
R. -01 S (WED) 5 : 54 GOER I CA CORP. BNKG TEL:810 644 5262 P. 002
comedca Bank
February 27, 1998
Edward Hamburger, President
SLP Engineering, Inc.
1465 Axtell Road
Troy, Michigan 48084
Dear Ed,
I am pleased to inform you that Comerica Bank ("Comerica") has agreed to make a letter of
credit facility and working capital facility (the "Loans") to SLP Engineering, Inc. (the
"Borrower") for those purposes and on those terms and conditions set forth on the attached
Term Sheet (the °Commitment").
As a condition to funding the Loans, Comerica must be provided with all documents and
information required by Comerica in form and substance satisfactory to Comerica. A further
consideration of closing the Loans is Comerica's continued satisfaction with Borrower's
financial condition, operations, management and economic environment Which may be
reviewed by Comerica at any time.
Please indicate your acceptance of this Commitment by signing below where indicated, and
return you signed copy of this letter to me by March 10, 1998. If your written acceptance is
not received by me within said period of time, this Commitment shall automatically become
null and void. This Commitment may only be accepted as drawn, and may not be accepted
in part, conditionally or subject to modification. The Loans must be fully closed, if at all,
on or before June 1, 1998.
Please call me at the above number if you have any questions regarding the terms of this
Commitment or the closing of this transaction.
Sincerely
COKERICA BANK
Its: 'Vice Vice President
ZxX.,y "17"
* r
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(SLP Engineering, Inc. Project)
The undersigned, SLP Engineering, Inc., a Michigan 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 SLP Engineering, 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 Wixom , 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 Wixom , Michigan unless the Company or
such 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.
C-1
Dated: /Vcir
1. I . • - 4414,
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.
SLP ENGINEERING, INC. , a
Michigan corporation
C-2
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(SLP Engineering, Inc. Project)
The undersigned, SLP Engineering, Inc., a Michigan 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 SLP Engineering, 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, 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.
SLP ENGINEERING, INC.
6-0,0k-2/1C- G-0 oul5
Dated: 3/ /0/ f
Its:
'6374 oak edes ip' pro jp Ian. oak
D-1
Resolution #98129 May 21, 1998
Moved by Palmer supported by Amos the resolution be adopted.
AYES: Huntoon, Jacobs, Jensen, Johnson, Kaczmar, Kingzett, McCulloch,
McPherson, Millard, Moffitt, Obrecht, Palmer, Powers, Schmid, Taub, Wolf, Amos,
Coleman, Devine, Douglas, Garfield, Gregory, Holbert. (23)
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 May 21, 1998 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 21st day of May 1998.
Lynll D. Allen, County Clerk