HomeMy WebLinkAboutResolutions - 2001.03.21 - 26465March 8, 2001
MISCELLANEOUS RESOLUTION #01089
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (SCHAIN MOLD & ENGINEERING, INC. PROJECT) - CITY OF
ROCHESTER HILLS
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 Rochester Hills, 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.
AND BUILDING COMMITTEE
Planning & Building Committee vote:
Motion carried on unanimous roll call vote with Palmer absent
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Schain Mold & Engineering, 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 Commitment Letter
"C" - Company Certificate Regarding Transfer of Employment
"D" - Company Certificate Regarding Payment of Prevailing Wages
Other
PROJECT PLAN
SUMMARY DESCRIPTION OF
SCHAIN MOLD & ENGINEERING, INC. PROJECT
OWNER OF PROJECT: Schain Mold & Engineering, Inc., a Michigan corporation
CONTACT PERSON: (Name, address, telephone number)
Robert A. Prainto
Vice President
32335 Howard
Madison Heights, MI 48071
(248) 589-0880
LOCATION OF PROJECT: (Local municipality)
City of Rochester Hills
PROJECT AREA/DISTRICT AREA: See Exhibit A
2776 Commerce Drive Rochester Hills Michigan
NATURE OF PROJECT:
Acquisition of approximately 31,538 existing manufacturing facility, renovation and equipping
of that facility.
EMPLOYMENT CREATED OR RETAINED:
Approximately 14 new jobs created and 63 jobs retained
TOTAL PROJECT COST:
Approximately $2,500,000
BONDS TO BE ISSUED:
$3,000,000 maximum principal amount
LETTER OF CREDIT ISSUER: Bank One
By:
Its:
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.
SCHAIN MOLD & ENGINEERING, INC.
Dated: iii 0 1
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
SCHAIN MOLD & ENGINEERING, INC. PROJECT
I. THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER
PUBLIC FACILMES 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 includes the acquisition of a 31,538 square foot industrial building that is located
on 2.3 acres of land. The facility is located at 2776 Commerce Dr. Rochester Hills, Michigan.
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:
Alterations will be made to the offices and a tool room will be added to the interior of the
building. New windows will be installed and walls will be repaired and painted. The building
will also be painted on the inside and outside.
LII. 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 rehabilitation of the facility will take 100 to 125 days and will cost approximately
$400,000.
3
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES • OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
Begin construction March 2001
Complete construction June 2001
V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO .BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
No changes will be made to the existing green areas.
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 changes are necessary.
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.
Copy of Letter of Credit commitment letter attached as Exhibit B.
4
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:
Robert A Prainito
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 will be owned by Schain Mold & Engineering, Inc., which will operate the Project
property.
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
5
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. 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 LITIGAT.ION 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
6
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
Lots 23 & 24 of "Northfield Industrial Park Subdivision"
A subdivision of port of the S.W.1/4 of Section 28, T.3N., R.11E., City of Rochester Hills,
Oakland County, Michigan as recorded in Liber 167 of Plats, Pages 28, 29 and 30, Oakland
Cqunty Records more particularly described as follows: Beginning at the N.E. corner of said Lot
23; thence Due South, 250.00 ft. along the Easterly line of Commerce Drive ( 60 ft. Wide) anc
the Easterly line of said Lots 23 and 24 to the southeast comer of sold Lot 24; thence
S.8973124W., 400.00 ft. (Measured as S.8971'20W., 399.92 ft.) along the South
line of said Lot 24 to the Southwest corner of said Lot 24; thence Due North, 250.00 ft. along
the West line of said Lots 23 and 24 to the Northwest corner of said Lot 23; thence
N.8923'24E., 400.00 ft. (Measured as N.8921'20"E., 399.92 ft.) along the North
line of sold Lot 23 to the point of beginning.
Exhibit B
LETTER OF CREDIT
COMMITMENT LETTER
Michael 1. Marrinen
Assistant Vice President
Bank One, Michigan
Fill 8923
2155 West Big Beaver Road
Troy, Michigan 48084
tel 248 816 0236
fox 248 816 0254
•• BANK'ONE /WI
February 9, 2001
Mary P. T,anghauser
Supervisor Financial Services
Oakland County, Michigan
Development and Planning
1200 N. Telegraph Road
Pontiac, MI 48341-0412
Dear Mary:
Bank One has approved up to a $3,000,000 standby letter-of-credit ('S/L/C") to support the
issuance of an Industrial Revenue Bond to benefit Schain Mold & Engineering Inc. and/or related
borrowers. Issuance of the 5/L/C is contingent on the satisfactory receipt and review of an
appraisal of the real property located at 2776 Commerce Drive, Rochester Hills, MI expected by
February 23, 2001. Bank One will provide you with a copy of the commitment letter further
detailing the terms of the transaction upon execution anticipated by the end of next week.
SCHAIN MOLD & ENGINEERING, INC.,
a Michigan corporation
By:
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Schain Mold & Engineering, Inc. Project)
The undersigned, Schain Mold & 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 Schain Mold & 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 the City of Rochester Hills, Michigan, the municipality in which the
Project will be located.
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.
Viet- 3et-4 .0.14NA-
Dated:
Its:
C-1
vi
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Schain Mold & Engineering, Inc. Project)
The undersigned, Schain Mold & 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 Schain Mold
& 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.
SCHAIN MOLD & ENGINEERING, INC.
By:
Its:
Dated:
GAE\EconDev \Oakland \BONIA.Schain\Project Plan.doc
Resolution #01089 March 22, 2001
Moved by Palmer supported by Webster the resolution be adopted.
AYES: Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson,
Melton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub,
Webster, Amos, Appel, Brian, Buckley, Causey-Mitchell, Crawford. (23)
NAYS: None (0)
A sufficient majority having voted therefor, the resolution was adopted.
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 March 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 22;td daydoof March, 2001.
William Caddell, County Clerk