HomeMy WebLinkAboutResolutions - 2001.02.22 - 26388February 22, 2001
MISCELLANEOUS RESOLUTION #01038
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (CADILLAC IRON, INC. PROJECT) - OXFORD CHARTER 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 the Charter Township of Oxford, 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
Planning & Building Committee vote:
Motion carries on unanimous roll call vote with Melton absent
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Cadillac Iron, 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
- Company Certificate Regarding Payment of Prevailing Wages
Other
PROJECT PLAN
SUMMARY DESCRIPTION OF
CADILLAC IRON, INC. PROJECT
OWNER OF PROJECT:
AMPM Industries, LLC / Cadillac Iron, Inc
CONTACT PERSON: (Name, address, telephone number)
David Vanecek
6780 19 1/2 Mile Rd.
Sterling Heights, Michigan 48314
810 254 6440
LOCATION OF PROJECT: (Local municipality)
Oxford Charter Township
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT:
Acquisition of land and construction thereon of an approximately 22,000 square foot
manufacturing facility and the acquisition of machinery and equipment therefor.
EMPLOYMENT CREATED OR RETAINED:
6 new jobs created
39 existing jobs retained
TOTAL PROJECT COST:
$2,000,000
BONDS TO BE ISSUED:
Approximately $1,600,000
LETTER OF CREDIT ISSUER:
Comerica
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.
CADILLAC IRON, INC.
By:
Its: v
Dated: c(51(
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
CADILLAC IRON, 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:
No streets or other public facilities are located within the Project District Area. The
land is presently vacant. See III. below regarding proposed improvements.
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 project consists of the acquisition of 4.6 acres of land and the construction of a 22,000
square foot manufacturing facility. In addition the project will include the purchase of new
equipment. The estimated time needed for completion is approximately seven months.
3
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
The land will be acquired in March of 2001 with construction beginning in early April 2001.
The project is estimated to be complete by October 15, 2001.
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
Normal green areas and 'A of an acre for future expansion needs.
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
VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
No zoning changes are needed, or change in street, street levels, intersections or utilities.
4
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 will be financed with the proceeds of sale of the EDC's limited obligation
revenue bonds. The bonds will be underwritten by WY Campbell & Company and secured by
a letter of credit issued by Comerica.
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
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:
David Vanecek
Fred Burkhardt
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:
The Project is being undertaken for the benefit of AMPM, a Michigan limited liability
company, and Cadillac Iron, Inc., a Michigan corporation, which are related through common
ownership.
5
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 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. PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT
AREA:
Not Applicable
6
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
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
7
EX:TITBIT ,
LEGAL DESCRRITION
The easterly portion of Parcel C below approx.. 320 Li. along X-Celsior Drive to a depth
of approx. 635 l.f. North. Subject to final survey and property split including all
easements.
Part of the Southwest % of Section 9, Town 5 North, Range 10 East, Oxford Township,
Oakland CoUnty,,Chigan. Being more particularly described as commencing at the
Southwest coiner Of said Section 9; thence South 87°53'30" East 1,510.04 feet along the
South line of said Section 9 to a point; thence North 01°16'23" East 1,832.55 feet to the
point of beginning; thence proceeding North 01°16'23" East 610.02 feet to a point on the
East-West 14 .1ine of said Section 9; thence North 89°24'00" East 756.06 feet along the
East-West .% line of Said Section 0 to a point; thence South 00°36'00" East 225.00 feet to
a point; 'thence Soitth 01 6).6'23" West 409:86 feet to a point;.thence North 88°43'37"
West 763.06.feet:to the point of beginning. Containing 10.885 acres (gross area).
Reserved therefrom all easements and right of ways of record. Also together with and
subject to easement rights for ingress and egress with public; utilities described hereafter.
•
DESCRiPilop" OF EASEMENT KM PRIVATE ROAD RIGHT OF WAY
A private easement for ingress and egress with Public Utilities over, across and under
strip of land 66 feet in perpendicular width as described as part of the East V2 of the
Southwest % of Section 9, Town 5 North, Range 10 East, Oxford Township, Oakland
County, Michigan. Being more particularly described as commencing atthe Southwest
corner of said Section 9; thence South 8r53'30" East 1,910.10 feet along the South line
of said Section,9 to the point of beginning; thence proceeding South 87°53'30" East
66.00 feet along the South line of said Section 9 to a point; thence North 01°16'23" East
1,806.34 feet to a point;:thence'SoUth 88°43'37" East 897.17 feet to apoint on the
Westerly Right of Way line of M-24 Highway, as widened; thence North 18°27'55" West
70.1; feet along the Westerly Right of Way line of M-24 Highway, as widened to a point;
thenceNorth88°,43'37"-West 939.48 feet to a point; thence South 01°1623" West
1,871J8'feetio the point Of beginning. Reserved therefrom all easements and right of
ways of reccire (Also'known as X-Celsior Drive.)
Exhibit B
LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER
III. Letter of Credit Facility
Customer: AMPM L.L.C.
P.
Purpose: Credit support for Industrial Revenue Bond for construction
of real property and. purchase of equipment located in
Oxford, Michigan.
Amount: Up to $1,600,000 (80% loan to value).
Term:
Collateral:
3 years based on 15 year amortization payable in equal
monthly payments of interest. Annual principal payments
of $106,666 will be due commencing one year from bond
closing. A sinking fund of $26,666 quarterly will be
required to fund the annual principal payments.
Payment to be charged directly to Customer's checking
account.
A first mortgage on new construction located in Oxford,
Michigan, an assignment of lease income from Cadillac
Iron, Inc. and first secured interest in new equipment
purchased. Cross collateralized with all other facilities.
Fees: A) 125 basis points on the outstanding amount of the
Bonds payable in advance on an annual basis, plus
B) All out of pocket costs of Comerica, including
without limit for appraisal, survey, title insurance,
filing fees and internal review costs; plus
C) All legal fees of inside and/or outside counsel for
Comerica.
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Z0021 NOHI DVTIIavD Li69i7SZoTET 117,1 tVoT TO/LT/To
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CADILLAC IRON, INC., a
Michigan corporation
--
Its:
Dated: \.
"Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Cadillac Iron, Inc. Project)
The undersigned, CADILLAC IRON, INC., a Michigan corporation, for itself and on
behalf of AMPM, a Michigan limited liability company (collectively, 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 Cadillac Iron, 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 will have the effect of transferring
employment of more than 20 full-time persons from the City of Sterling Heights to Oxford
Charter Township, Michigan, the municipality in which the Project will be located, but a
consent to such transfer will be obtained from the City Council of the City of Sterling Heights
as required by the Act.
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.
/ By:
Its:
Dated: cb,'" -
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Cadillac Iron, Inc. Project)
The undersigned, Cadillac Iron, Inc., a Michigan corporation, for itself and on behalf
of AMPM, a Michigan limited liability company (collectively, 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 Cadillac Iron,
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.
CADILLAC IRON, INC.
G: \E \EconDev \Oakland \BOND \Cadillac \Project Plan.doc
Resolution #01038 February 22, 2001
Moved by Webster supported by Moss the resolution be adopted.
AYES: Douglas, Galloway, Garfield, Gregory, McPherson, Melton, Millard,
Moss, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel, Brian, Buckley,
Causey-Mitchell, Crawford, Dingeldey. (20)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
E FOREGOING RESO! '
2-LA)
on. County Executive Date
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 February 22, 2001 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 22nd day gX February, 2001.
GA William Caddell, County Clerk