HomeMy WebLinkAboutResolutions - 2000.05.18 - 26142MAY 18, 2000
MISCELLANEOUS RESOLUTION #00112
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (LYON GEAR & MACHINE, INC. PROJECT) - OAKLAND TOWNSHIP
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 Oakland Township, 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.
Planning and Building Committee Vote;
Motion carried unanimously on a roll call vote with Amos absent.
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
LYON GEAR & MACHINE, INC. PROJECT
PROJECT PLAN
CONTENTS
1. 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
"D" - Company Certificate Regarding Payment of Prevailing Wages
Other
PROJECT PLAN
SUMMARY DESCRIPTION OF
LYON GEAR & MACHINE, INC. PROJECT
OWNER OF PROJECT:
Lyon Gear & Machine, Inc., a Michigan corporation
CONTACT PERSON: (Name, address, telephone number)
Danny T. Beer, President
4371 Territorial Road
Rochester, MI 48306
(248) 651-1751
LOCATION OF PROJECT: (Local municipality)
Oakland Township
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT:
Acquisition of machinery and equipment for existing manufacturing facilities
EMPLOYMENT CREATED OR RETAINED:
12 - 13 new jobs created; 130 retained
TOTAL PROJECT COST:
Approximately $6 - $6.5 million
BONDS TO BE ISSUED:
$6,500,000 maximum
LETTER OF CREDIT ISSUER OR BOND PURCHASER:
Bank One, Michigan
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.
LYON GEAR & MACHINE, INC.
By:
Its: l'e."...--..‘resident
Dated:
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
LYON GEAR & MACHINE, 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:
The Project Area/District Area is presently comprised of land owned by the corporation
on which are located the corporation's two existing manufacturing facilities. The proposed
acquisition of additional equipment will expand the corporation's existing business without
materially altering the Project Area or surrounding areas.
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:
Not Applicable
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:
The new machinery will be installed in the corporation's existing facilities in the Project
Area. The total cost is estimated to be $6 - $6.5 million. Expansion will occur over the next
two to three years.
3
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
Not Applicable
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
Not Applicable
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:
The Project is proposed to be financed with the proceeds of tax-exempt limited
obligation revenue bonds, secured by a letter of credit to be issued by Bank One, Michigan.
The Bonds will be sold by Banc One Capital Markets, Inc.
Copy of Letter of Credit 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 1 (ONE)
YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN:
Danny T. Beer
President
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:
Not Applicable
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
6
NUMBER OF OWNER-OCCUPIED AND RENTER-OCCUPIED 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
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
EXIIII1IT A
LEGAL DESCRIPTION
T4N, R11E, SEC 28
SUPERVISOR'S PLAT NO 1
SELY 1/2 OF LOT 21 &
ALL OF LOTS 22 TO 25 INCL,
ALSO THAT PART OF LOT 26
LYING SELY OF SELY LINE OF
LOT 19 AS EXT NELY TO
NELY LINE OF LOT 26 EXC THAT
PART TAKEN FOR HWY DESC AS
BEG AT SE COR OF LOT 26,
TH N 60-29-40 W 30 FT
ALG SLY LOT LINE,
TH N 19-01-53 E 72.67 FT
TO N LOT LINE,
TH S 35-03-30 E 10 FT
ALG NELY LOT LINE
TO NE LOT COR,
TH S 02-32-00 W 75.36 FT
ALG E LOT LINE
TO BEG
T4N, R11E, SEC 28
GRAMPIAN HILLS SUB
LOTS 1 TO 17 INCL
T4N, R11E, SEC 28
SUPERVISOR'S PLAT NO 1
LOT 20
T4N, R11E, SEC 28
GRAMPIAN HILLS SUB
LOTS 28 TO 34 INCL, ALSO
1/2 VACATED ALLEY
ADJ TO SAME, ALSO
LOTS 82 TO 86 INCL, ALSO
1/2 VACATED ALLEY
ADJ TO SAME.
Exhibit B
LETTER OF CREDIT COMMITMENT LETTER
Commercial
Banking
Services
-64ANC =Olt
Proposed Summary Term Sheet
Borrower: Lyon Gear & Machine, Inc. (the "Borrower")
Bank: Bank One, Michigan (the "Bank")
Facility A:
(the "Credit Facility"):
Standby Letter
of Credit: $6,073,973 supported three year reducing Standby Letters of Credit
(S/L/C) expiring not later than 15 days following the anniversary of the
issuance of the Industrial Revenue Bond.
Pricing:
Standby Letter
of Credit: 1.25% per annum.
Fee Income:
Commitment &
Closing Fees: 2/3% of the bond closing amount. $18,000.00 will be due at the signing
of the commitment letter and all remaining portions will be payable at the
closing of the bonds. All legal expenses of Bank One and Bond
Counsel, together with all out-of-pocket costs to be paid by subject.
Disbursement
Fee:
Repayment
Program:
$100 fee for each draw by the Trustee under the S/L/C.
Monthly payments of interest only with annual principal reductions as
outlined below.
Lyon Gear & Machine_ Inc, Page 1_1
March 2000
Commercial
Banking
Services
HAM C =OM
Bond Maturities: Aiinual principal redemptions under the reimbursement agreement are as
follows:
Year 1 $ 430
Year 2 570
Year 3 710
Year 4 860
Yetu. 5 860
Year 6 860
Year 7 860
Year 8 425
Year 9 285
Year 10 141
$ 6,000
Collateral: First priority lien on all machinery and equipment. Loan-to-Value not to
exceed 100% of cost.
Facility 13:
(the 'Credit Facility"):
Authorization: $6,000,000 supported authorization to include interim advances expiring
9-30-00. To fund machinery and equipment purchases prior to issuance
of the Industrial Revenue Bond.
Pricing: 0.25% under Bank One prime rate floating.
Repayment
Program: Monthly payments of interest only.
Repayment
Source: Funding from Industrial Revenue Bond.
Lyon Gar 84 Machine. Inc. Page 1.2
March 2000
Commercial
Banking
Services
DAIVIC=ON
Facility C:
(the "Credit Facility"):
Authorization:
Pricing:
Repayment
Program:
Collateral:
Servicing
Requirements:
Collateral: First security position on all machinery and equipment 100% financing
of cost_
$1,000,000 supported authorization expiring 9-30-00.
0.25% under Bank One prime rate floating.
Monthly payments of interest only.
Accounts receivable.
1) Annual Reviewed financial statements.
2) Quarterly internally prepared financialstatements.
3) Monthly account payable agings, when borrowing.
4) Monthly account receivable agings, when borrowing.
Lyon Gear & Machine, Inc. Page 13
March 2000
By:
Its: President
• Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(LYON GEAR & MACHINE, INC. PROJECT)
The undersigned, Lyon Gear & Machine, 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 Lyon Gear & Machine, 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 Oakland Township, Michigan, the municipality in which the Project
will be located.
5. 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.
LYON GEAR & MACHINE, INC., a
Michigan corporation
Dated: 4 . 0 .
C-1
t
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(LYON GEAR & MACHINE, INC. PROJECT)
The undersigned, Lyon Gear & Machine, 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 Lyon Gear &
Machine, 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.
LYON GEAR & MACHINE, INC.
By:
Its: President
Dated: 4- oc... •
GAElEconDev Oaidand\130ND \LYONGEAR \Project Plan.doc
HERFRIJAROVE THE FOREGOING RESOLUTION
rAd/a) I
Date L Brooks Patngson. County Executive Date
0 T #
• •
Resolution #00112 May 18, 2000
Moved by Suarez supported by Law the resolutions on the Consent Agenda be
adopted and reports be accepted.
AYES: Appel, Causey-Mitchell, Colasanti, Coleman, Dingeldey, Douglas,
Galloway, Garfield, Gregory, Jensen, Law, McCulloch, McPherson, Melton, Millard,
Palmer, Sever, Suarez, Taub, Amos. (20)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolutions on the Consent
Agenda were adopted and the reports were accepted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 18, 2000 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 18t day pf May, 2000.
G. William Caddell, County Clerk