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HomeMy WebLinkAboutResolutions - 2000.05.18 - 26149MAY 18, 2000 MISCELLANEOUS RESOLUTION #00121 BY: PLANNING AND BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON In RE: DEPARTMENT OF FACILITIES MANAGEMENT — PURCHASE OF FIVE (5) STORY BUILDING LOCATED AT 2100 PONTIAC LAKE ROAD, WATERFORD, MICHIGAN 48328 TO: OAKLAND COUNTY BOARD OF COMMISSIONERS CHAIRPERSON, LADIES, AND GENTLEMEN: WHEREAS, pursuant to Miscellaneous Resolution No. 4592 dated August 17, 1966, the Oakland County Board of Supervisors entered into a ninety-nine (99) year Lease Agreement with the Oakland Schools Intermediate School District for the use of 20 acres of County owned land located on the County's Pontiac Service Center for the purpose of constructing an Administration Building; and WHEREAS, on February 16, 1999 the Planning and Building Committee authorized the Department of Facilities Management to obtain an appraisal of the five (5) story office building located at 2100 Pontiac Lake Road, Waterford, Michigan for the possible purchase of said building to provide additional needed office space for County operations; and WHEREAS, the Planning and Building Committee at is September 23, 1999 meeting authorized the Departments of Facility Management and Corporation Counsel to negotiate a Purchase Agreement with the Oakland Schools Intermediate School District for the purchase of the five story administrative office building located at 2100 Pontiac Lake Road, Waterford, Michigan 48328; and WHEREAS, on April 6, 2000 an Agreement was reached between the County of Oakland and the Oakland Schools Intermediate School District to purchase the five story office building located at 2100 Pontiac Lake Road, Waterford, Michigan 48328 for the purchase price of $6,275,000 — payable according to the following terms and conditions: (1) At the end of each one (1) full year after the signing of this Agreement, and up until and including the end of the third full year after the signing of this Agreement, there shall be added to the purchase price on a cumulative basis, three and one-half percent of the purchase price basis for that year. This three and one-half percent is calculated to offset inflation. The full purchase price for the Premises will be Six Million Nine Hundred Fifty Seven Thousand Two Hundred Five Dollars ($6,957,205.00) as arrived at pursuant to the following schedule. • $6,275,000 Start of lst year • $6,494,625 Start of 2nd year at 3.5% increase • $6,721,937 Start of 3rd year at 3.5% increase • $6,957,205 End of 3rd year at 3.5% increase (2) If the Seller wishes to Close on the Premises prior to the end of the third year or at any time during the three year term of this Agreement, then the final payment shall be adjusted and prorated on the basis of the three and one-half percent factor for the number of days in the current year that the Seller occupies the Premises. WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed all the necessary agreements and documents and recommend the purchase of the five story 105,358 square foot office building located at 2100 Pontiac Lake Road, Waterford, MI 48328 for the purchase price as stated above. WHEREAS, the Oakland Schools Board of Education has unanimously approved the Purchase Agreement and the sale of the building to Oakland County; and Planning & Bldg. Committee Vote: Motion carried unanimously on a roll call vote with Amos absent. - - NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and agrees to purchase the five story 105,358 square foot office building located at 2100 Pontiac Lake Road, Waterford Michigan 48328 in accordance with the terms and conditions as set forth in the Purchase Agreement dated April 6, 2000 between the County of Oakland and the Oakland Schools Intermediate School District for the purchase amount of $6,275,000 payable according to the following terms and conditions: (1) At the end of each one (1) full year after the signing of this Agreement, and up until and including the end of the third full year after the signing of this Agreement, there shall be added to the purchase price on a cumulative basis, three and one-half percent of the purchase price basis for that year. This three and one-half percent is calculated to offset inflation. The full purchase price for the Premises will be Six Million Nine Hundred Fifty Seven Thousand Two Hundred Five Dollars ($6,957,205.00) as arrived at pursuant to the following schedule. • $6,275,000 Start of 1st year • $6,494,625 Start of 2nd year at 3.5% increase • $6,721,937 Start of 3rd year at 3.5% increase • $6,957,205 End of 3rd year at 3.5% increase (2) If the Seller wishes to Close on the Premises prior to the end of the third year or at any time during the three year term of this Agreement, then the final payment shall be adjusted and prorated on the basis of the three and one-half percent factor for the number of days in the current year that the Seller occupies the Premises. Upon execution of the Purchase Agreement the County shall pay the Oakland Schools Intermediate School District a $20,000 deposit as earnest money. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its chairperson or its designee to execute the necessary documents for the purchase of the five story office building located at 2100 Pontiac Lake Road, Waterford, Michigan 48328. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE CHARCE5 E. PALMER (3) /Sae FINANCE COMMITTEE FISCAL NOTE (Misc. #00121) May 18, 2000 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - PURCHASE OF FIVE (5) STORY BUILDING LOCATED AT 2100 PONTIAC LAKE ROAD, WATERFORD, MICHIGAN 48328 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. Oakland County reached agreement with the Oakland Schools Intermediate School District on April 6, 2000 to purchase the five story office building located at 2100 Pontiac Lake Road, Waterford, Michigan. 2. The purchase price of $6,275,000 is payable according to the terms and conditions specified in the Purchase Agreement, in particular, 3.5% of the purchase price will be added to the purchase price at the end of each full year after the signing of the agreement to offset inflation. 3. The full purchase price at the end of the third year after the signing of the agreement is $6,957,205. 4. A deposit payable to Oakland Schools Intermediate School District of $20,000 is required and will be charged to a prepaid expense General Ledger account. 5. This prepaid expense will be relieved when a transfer of the Designated Fund Balance for Oakland Schools to the Major Projects Fund is initiated. FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Obrecht absent. L Brooks PatterOrk County Executive E FOREGOING REpl Date I IHERr" Resolution #00121 May 18, 2000 Moved by Palmer supported by Schmid the resolution be adopted. AYES: Jensen, Law, McCulloch, McPherson, Melton, Millard, Moffitt, Palmer, Schmid, Sever, Suarez, Taub, Amos, Appel, Causey-Mitchell, Colasanti, Coleman, Dingeldey, Douglas, Galloway, Garfield, Gregory. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. •••••=1 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 18 -I day/of May, 2(140. G. William Caddell, County Clerk