HomeMy WebLinkAboutResolutions - 1998.09.24 - 25520RECC JIRMATION
MISCELLANEOUS RESOLUTION #98162
BY: Planning and Building Committee, Charles E. Palmer, Chairperson
IN RE: DEVELOPMENT AND PLANNING DIVISION RESOLUTION APPROVING PROJECT PLAN
& M CORPORATION PROJECT) - CITY OF ROYAL OAK
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 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 Economic Development Corporation'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 Royal Oak, Oakland County,
Michigan, has also approved the Project Plan and given its consent to the
exercise of jurisdiction over the Project by the Economic Development
Corporation; 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 Economic
Development Corporation 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.
BE IT FURTHER RESOLVED that the Economic Development Corporation 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.
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 Economic Development Corporation.
Chairperson, on behalf of the Planning and Building Committee, I move the
adoption of the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Copy of the V & M Corporation Project Plan on file in the County Clerk's
office.
( a c ti orhotaekcprvtpAws s larl\cUitt4s19 khe resolution be adopted.
AYES: Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson,
Millard, Moffitt, Obrecht, Palmer, Schmid, Taub, Wolf, Amos, Coleman, Dingeldey,
Douglas, Garfield, Gregory, Hoffman, Holbert, Huntoon, Jacobs. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
(end action taken at August 6, 1998 Board meeting)
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
V & M Corporation, PROJECT
dba Royal Oak Waste Paper and Metal Co., Expansion
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:
Survey
Legal description of Project Area atMehed 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:
Demolish existing single family homes and one existing single story
commercial building. Construct new railroad siding and dock.
Construct new truck wells and related site improvements. Construct
new office and warehouse. Total time required for completion is
8 months.
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:
Demolish existing structures
Railroad siding
Site work including 5 truckwells
Office/Warehouse additions
Equipment
$ 65,000.00
250,000.00
$ 800,000.00
$1,600,000.00
$2,000,000.00
3
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE:
Demolition 60 Days
Rail siding 30 Days
Site work 60 Days
Building Construction 90 Days
Install Equipment 30 Days
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
East side of building will be left as a greenbelt.
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:
Not Applicable
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:
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):
See Exhibit D
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:
Habib Mamou
Ritchie Atto
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:
V & M Corporation, dba Royal Oak Waste Paper and Metal Co.
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
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
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
comnityNrrY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC
HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS:
Not Applicable
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
OAKLAND COUNTY LAND DESCRIPSIONINQUIRY • '06/15/98 14:38
FOR 72 25-22-304-014
01 T1N, R11E, SEC 22
02 ASSESSOR'S PLAT NO 22
03 LOTS 56, 57 & 58, ALSO
04 LOT 60, ALSO
05 LOTS 88 TO 93 INCL
06 5-11-98 FR 003,005,008T0 013
PF-KEY: 3:HELP 7:NEXT 8:PRIOR 10:MENU PAGE 1 OF 1
Jun-12-98 10:40
JUN Id MI II•..14 PP C zreiLL. ouztricz* 'Armin e...0 2op coed, P . • • V.11.0
Coomesrica Sank
111ralablelint VOW
30500 Van Dike, Suite SOO
MC 7110
Warren, 141 40093
INTEREST RATE,
TERMS AND FEES
SECURITY
GUARANTY
DEMAND DEPOSIT
ACCOUNT RELATIONSHIP
lb 1,11 a.
Fax O
111E, t„
afi
77.144rSg1qc,i51.
Fax 101Licir 54 "ricS
Dept.
06/12/98 FRI 11:49 [TX/RX NO 98951
t MINIM
Jill N. Waite'
Litigant Vice President
Jane Il. 990
Mr. Habib Mamma
Royal Oak Waste Paper 4 Metal Company No. 2 3 dibh 01V Pi Corporation.
411( Hudson An
loyal Oak. MI 4107-3740
Dear Habib:
I wand hie to take this opportunity to iolann you that Canaria Rank hat approved nor request for eider direct fiaancing or Outer of cndit in
nowt Oars 111. Canaria has also 'panned a S500.000 working capital facility. The terms and conditions an Rued below.
11151111111.e1
BORROWER Royal Oak Waste Paper & Metal Company No. 2 a dib/a/ot Y& M
Corporation
AMOUNT OF LOAN Up to 53.700.000 in direct financing or a letter of credit iii support of an IRIL
USE OF LOAN PROCEEDS 900,000 to pay off orining debt at Standard Federal
200,000 re pay of miscellaneous debt
600.000 repay off misalbnesos lova with Camino
1.500,000 for beading expansion
500.000 for purchase of new machinery
To be negotiated at a future date.
A first second position on .all assets, including, but not limited to, accounts receivable, invemory.
machinery equipment.
first and second nal matt mortple mid assignment at lois and rents on commercial property
located at 414 E Nathan An. Royal Oak, 11141067-3740 (is adding to the lots tint are attached
to the borders el this property). This will require de athordinatisn by the SBA of their leas on
these properties.
Unlimited personal plarantem of Kabib and Jacquelyn Mama.
The lank is to remain the primary delimiter,' institution of the borrowers.
Post-It'" brand fax transmittal memo 7671 I r et Mu •
MINIS
REDINIZAZ
BORROWER
Jun-12-98 10:40 .
14 ',U /1.44 PK zre4LL pumiNez Nurtem 4.40 ,C° 4044,1 1U 4.4.44710KAJW0.7 . . P . 02
June 12, IM
Page Two
SUBJECT TO Comas satisfactory receipt aid review .1 9w following:
- Plans and specifications for the building expansion.
- Appraisal on building and machinery& equipment with maximum loan to value of 10% on
each.
- Fixed price outran or a cost plus contact with 3 cant.
- CPA prepared 1191 year-end financial stattmenu and mut mare interim financial statement of
Royal Oak Waste Paper & ?fetal Company No.1 a Oh of V 111 Corporation.
• Satisfactory review by Comma of the Environmental Flom 1 and II report.
Royal Oak Waste Paper A Metal Company No. 2 a d/b/a/ of V A M
Corporation
AMOUNT OF LOAN
USE OF LOAN PROCEEDS
INTEREST RATE
AND FEES
S500,0110 maned line of credit
Working Capital
To be negotiated iii (mum date.
SECURITY
ADVANCE FORMULA
GIMPIAKTY
DEMAND DEPOSIT
ACCOUNT RELATIONSHIP
SUBJECT TO
A lint secured position on all issta, including, but not limited to account) ',nimble, inventory,
machinery & equipment
70% 01 90 day eligible accounts receivables.
1.14mited r,transd gammen of Ilzbib znd latquelyn Plamet.
The Sank is to remain the pritrary depository institution of the borniwen.
- CPA prepared 1997 year-end Galatia, staternencs and most mane interim financial statement of
Royal Oak Waste Paper & Metal Compaq No. 2 a tUbia of Y & II Corporation.
- This working capital bcifiry is subject to an accounts receivable audit by the lank. The cost of
this audit is to be paid Ay the borrower.
06/12/98 FRI 11:49 [TX/RX NO 98951
Jun-12-98 10 : 40 JUN 14 'VW li:J4 t-tt WMILL UUWINWWW NUKIM 44Id VIWW eeise IU 14411:)41.3Wb l'.W4,Wto
, • • n . . so' t e -7;1 . , IIIIIIIIIIIIk
P . 03
June I3,19411
Pap Three
This ban commitment is subject the items listed above and also to the blowing:
I) Tour written acceptance inuu be received by the Bank by June 19, 1991 or this conunittneen letter becomes null and
void. If these terms and conditions are acceptable, plum sign this letter and return to the Bank.
2) This 10311 arrangement is provided on a demand bash. C.omerica lank is not obligated to make any advances under this attfit
I) As a condition to fending this credit facility, (emeriti' lank most be provided with all decumeou and information required by Cowin
lank in form and abstain satisfactory to (omerica lank. A further condition of dosing this mitt facility is Comerica larits continued
satisfaction with bormwee's amid condition, operations and economic environmeot wild may be miewed by Camera lank at any
time.
4) The working capital facility is subject to an n1011013 receivabk audit by the lank. The cost of this Audi is to be paid by the borrower.
effort a loan closing can take place the Borrower is required to provide the lank with the following documents (more documents may be needed
keener):
An insurance binder WI any We taken as collateral with tomerica lank named AS loss payee of
After the loan has been closed the following item are the continuing information requirements die Borrower is 'equated in provide the dank:
Frequenq Information Required
Monthly • Account Receivable Aging to be Received 10 days after month end.
Quarterly • CPA compiled financial statements to be received within 4S day of the tad of quarter.
Annually CPA reviewed financial statements tube received '0 dap after &cif par end.
• federal tax mow of Borrower due 30 days after Sling deadline.
• Pummel financial nutmeats for all pervious to be supplied with year end statements.
• federal tan remnu hr all guarantors.
06/12/98 FRI 11:49 (TX/RX NO 98951
Jun-12-98 0 4 1
Jur I 1.1. • 1 L'• Fn., A..Loa., P . 0 4
(—n
low 12, 1992
Par Four
I hope yogi yaw the loan urangeosenu favorably. Corwin Iamb prides itself us lull service Bank to Man not only your tompany's lenrInt needs.
bin any corporate tnot or cask outagemen seniors, as well u person!.
Should you han any questions nudity/ this lean accommodation. pilin feel free to CDPOU me at (810) $82-11617. I Wok fonard to hearing
from you.
Sincerely,
90 'mph'
Jill N. Webler
Assistant vice President
ACKNOWLEDGED AND AGREED
IT: NoyaI Oak Waste Paper I Metal Company No.2 a d/b/a/ of V 1 PI Corporation
Habib Hamm
IMILt
GUMAKTO2 ACINOWSGi
As a porantor. I bate freely offered my pannty as suppon for Conmeica is wad credit to loyal Oak Waste Paper I Metal
Company No. 2 a eliWa/ of V 1 14 Corporation.
IT:
Habib Nassau
IT:
jaopnlyn flanou
Dated:
** TOTAL PE. 05 s*
06/12/98 FRI 11:49 [TX/RX NO 98951
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
V & M Corporation, dba Royal Oak Waste Paper and Metal Company
(Fmansian_ Project)
V & M Corporation, dba Royal Oak Waste Paper and Metal Co . The undersigned,
a Michigan corporation ((lie "Company"), hereby certifies to The Economic
Development Corporation of the County of Oakland (the "EDC") as follows:
I. 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 V & M Corp., dba Royal. Oak Waste Paper arid mpral Cn expansigtiojec t
(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 will 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 Royal Oak , 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 Roya 1 Oak ,-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- I
By:
sr-air la"Vis
• 1 0
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.
V & M Corporation, dba Royal Oak
Waste Paper and Metal Canpany a
Michigan corporation
Habib Mamou,
Its: President
Dated: Cs S- -
I * elk 11011P
• IP
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
V & M Corporation, dba Royal Oak Waste Paper and Metal Ccmpany
Expansion Project)
V & M Corporation, dba
The undersigned, Royal Oak Waste Paper and Metal Company , a Michigan
corporation (the "Company"), hereby certifies to The Economic Development
Corporation of the County of Oakland (the "EDC") as follows:
I. 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 ((he "Act") which, if improperly made or based upon any material
misrepresentation or inaccuracy, might invalidate the proceedings regarding the
Royal Oak Waste Paper & Metal Expansion 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.
I • j
Its:
Dated: C-
T T t. : A R ru.1 . 1 I I IA-n
President
M117.1'1113I,Ir 1. I e 11 II Tnirl3f1
D-1
Resolution #98162 (item c.) September 24, 1998
Moved by Palmer supported by Law that Planning and Building Committee
agenda items b, c and d* be adopted.
AYES: Law, McCulloch, McPherson, Millard, Moffitt, Obrecht, Palmer,
Schmid, Taub, Wolf, Amos, Coleman, Dingeldey, Douglas, Garfield, Gregory,
Hoffman, Holbert, Huntoon, Jacobs, Jensen, Johnson, Kaczmar, Kingzett. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolutions were adopted.
*The Chairperson stated the adoption of Miscellaneous Resolutions #98162 and
#98177 were being reconfirmed due to deficient Public Hearings.
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 September 24, 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 24th day oS te 998.
Selle
Lynn'D. Allen, County Clerk