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HomeMy WebLinkAboutResolutions - 2002.08.22 - 26714PLA,NgiNG AND BUILDING COMMITTEE August 22, 2002 MISCELLANEOUS RESOLUTION 1102193 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION APPROVING PROJECT PLAN (M. C. CARBIDE TOOL CO. PROJECT) - CHARTER TOWNSHIP OF LYON 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 Lyon, 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 & Building Committee vote: Motion carried on unanimous roll call vote ith Gregory absent THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County, Michigan M.C. Carbide Tool Co. 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 M.C. Carbide Tool Co. Project OWNER OF PROJECT: M.C. Carbide Tool Co., a Michigan corporation To Be Formed, LLC, a Michigan limited liability company CONTACT PERSON: Mark Boksha 14505 Keel Street Plymouth, MI 48170 Tel.# 734451-2200 LOCATION OF PROJECT: Lyon Township PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: The project consists of the acquisition of land and the construction of an approximately 20,000 square foot manufacturing facility and the acquisition and installation of machinery and equipment, furniture and fixtures. EMPLOYMENT CREATED OR RETAINED: 8-10 new jobs will be created and 19 existing jobs will be retained. TOTAL PROJECT COST: BONDS TO BE ISSUED: $2,665,000 $2,600,000 LETTER OF CREDIT ISSUER OR BOND PURCHASER: Comerica Bank 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. M.C. Carbide Tool Co. 7J U YA/67 Dated: IkAZ2r / P). 2 0 C! 2 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING M.C. Carbide Tool Co. 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 land that will be used as a part of the Project is currently vacant and undeveloped. The parcel is located on the South side of Grand River Road 'At mile west of Napier Road between Napier Road and South Hill Road and is part of a new industrial development named Quadrant Industrial Research Center. 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: M.C. Carbide Tool Co. is in the business of manufacturing a wide variety of "special" rouns, carbide, cutting tools manufactured to customer specifications. The project consists of the acquisition of approximately 2.5 acres of land and the construction of an approximately 20,000 square foot manufacturing facility and the acquisition and installation of certain machinery and equipment for use in its operations. Machinery and equipment purchases will include CNC cutter grinders, CNC O.D. grinders, and various other grinding machines. It is expected that the land, building, site work, and fixtures will cost approximately $1,755,000. Another $750,000 has been budgeted for machinery and equipment. The estimated date for completion of construction of the facility is February 2003. Completion of the project, including the acquisition and installation of machinery and equipment, is estimated to be in the fall of 2003. 3 IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: Site Preparation is anticipated to start in September, 2002. We anticipate building construction to commence in September, 2002. The building is expected to be completed by February 2003. Machinery and equipment will be installed soon thereafter with the facility expected to - be operational by March, 2003. V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: Green areas, less ingress and egress to the road and areas set aside for a parking lot, will surround the building after completion. The site plan has been designed for potential future expansion on the east side of the proposed facility. 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: 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 anticipated to be financed with tax-exempt bonds through the Economic Development Corporation of the County of Oakland secured by a Comerica Bank direct pay letter of credit and with other monies available to the Company. Copy of Letter of Credit commitment 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: Mark Boksha Myron Boksha - Vice President - C.E.O. 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 land and building portion of the Project will be owned by a To-Be-Formed Limited Liability company which will lease such assets to M.C. Carbide Tool Co. for use in its manufacturing operations. M.C. Carbide Tool Co. will own the machinery and equipment, furniture and fixtures portion of the project. The entire project will be used by M. C. Carbide Tool Co. for use in its manufacturing operations. The project is currently being undertaken for the benefit of M. C. Carbide Tool Co. and its shareholders as well as for the members of the To-Be-Formed Limited Liability company, when and if formed. 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 5 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. 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 6 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 Exhibit A PROJECT AREA LEGAL DESCRIPTION Part of the Southeast 1/4 of Section 12, T.11n1., 11,7E., Lyon Township, Oakland County, Michigan, being more particularly described as: commencing at the 'Southeast Corner of said Section 12: thence along the South line of said Section 12 and the centerline of 12 Mlle Road (68,00 feet wide), N.88150`404W1 1013.00 feet to the point of beginning; thence continuing along sold line. N.85 450140hW. 1053.00 feet to the South 1/4 Corner of said section 12; thence N.00423156°E. 540.00 foot; thence S.69 453'181V, 1333,85 feet; thence fq,.00'27'59t. 2081.58 feet to a point on the East and West 1/4 line of said Section 12; thence N.:00145117"E, 68.42 feet; thence 5,6914'43E, 770.00 feet; thence N.19 106148E. 395,07 feet to a point on the South • right—of—way line of Grand River Avenue (100.00 feet wide); thence along sold line, S.7053'12'1E, 755.46 feet; thence S.19'06 t451W, 550.00 feet; thence S.70 153.12*E. 330.00 feet; thence - N.52'03'2214E, 655.38 feet to a point on the said right—of—way line of Grand River Avenue; thence along said line, S.70'53'12 11E. 70,00 feet; thence 5.0021 14"W, 1265.06 feet; thence S.8912100"E, 648,57 feet; thence Stotrovorw. 577,51 feet; thence N.89450'52"W, 292,72 -feet; thence 5,0009'08"W, 350.00 feet; thence S.89 450152"E, 292,72 feet, thence S.00 109'06"W. 387.14 feet to the point of beginning. Containing 6,213,441 square feet or 142,641 acres. Subject to easements . and restrictions of record. Exhibit B LETTER OF CREDIT OR BOND PURCHASER'S COMMITMENT LETTER 07/.22/2002 12:49 734-591-1286 1 COMERICA BANK SBWEST PAGE 06/13 EXHIBIT A SUMMARY OF TERMS AND CONDITIONS a limited liability company to be formed ("Company") July ZA-2002 I. LOAN FACILITIES; SPECIFIC TERMS. Facility A: Facility Description: Up to $2,600,000 Secured Letter of Credit Facility Purpose: Provide enhancement of variable rate or fixed rate taxable bonds which will be issued by the Economic Development Corporation of Oakland County to finance construction of Company's new facility located in Lyon Township, Michigan (the "Project"). Up to 2% of bond proceeds to be used to offset bond issuance costs. Up to 3% of bond proceeds to cover transfer risk costs. Maturity Date: To be determined. Bond Amortization: Interest only for the first 12 months. Amortization of approximately 20 years with monthly sinking fund payments as determined by Comerica. Mandatory Prepayments: Same as bond amortization. Security: Support: Perfected first security interest in all assets of Company including, without limit, accounts, notes, contracts receivable, inventory, general intangibles, machinery and equipment (including fixtures), real property, leases and rents, and all other tangible and intangible personal property whether now owned, or hereafter acquired by Company. Unlimited personal guaranty of Mark Boksha secured by a first priority security interest in all machinery and equipment owned by Mark Bolcsha and leased to M.C. Unlimited guaranty of M.C. Carbide Tool Company, Inc. ("M.C.") secured by a first priority security interest in all assets of M.C. including, without limit, accounts, notes, contracts receivable, inventory, general intangibles, machinery and equipment (including fixtures) and all other tangible and intangible personal property now owned or hereafter acquired by M.C. 07/22/02 MON 11:50 [TX/RX .NO 82591 07/22/2002 12:49 734-591 -1286 COMERICA BANK SBWEST PAGE 07/13 Comerica Bank J Fee: Subject to: Letter of Credit fee to be determined by Comerica, payable quarterly in advance. $150 per draw under the Letter of Credit, 1% Commitment Fee payable upon acceptance of this Commitment. The appraised value of Company's real property must be at - least $1,755,000, and the appraised value of all machinery and equipment must be at least $650,000. In the case of Facility A only, execution of a. Trust Indenture, Loan Agreement and other customary bond documentation reasonably satisfactory to Comerica and its counsel. Delivery to Cornerica of the following documents: a. An ALTA mortgage title insurance commitment with a pending disbursements clause from a title insurance company satisfactory to Comerica, without standard exceptions, in the amount of the Letter of Credit, insuring the mortgage securing the Letter of Credit obligations to be a first lien on the Project, subject only to those exceptions acceptable to Comerica, and. agreeing to insure construction advances. Coincrica must receive either a title policy or marked-up commitment effective as of closing. The policy shall contain zoning compliance, comprehensive, creditor's rights and any other endorsements required by Comerica. b. An ALTA mortgage survey satisfactory to and certified to Comerica and the title company, by a surveyor approved by . Comerica, showing no encroachments or adverse rights, other than those acceptable to Comerica and showing ingress and egress, all recorded easements affecting the Project, whether or not the Project lies in a flood plain area, and such other information as Comerica or the title company requests, all in compliance with Cornerica's survey requirements. c. Evidence of casualty, builder's risk and public liability insurance all satisfactory to Comerica as to form, amount and insurer. In addition, Company shall provide evidence of flood insurance, if required by applicable law. d. Final plans and specifications, together with all amendments and change orders, all of which shall be subject to Comerica's approval. e. Evidence satisfactory to Comerica that utility service to the Project is adequate and available to the Project at normal expense. 07/22/02 MON 11:50 (TX/RX.NO 82591 COMERICA BANK SBWEST PAGE 08/13 07/22/2002 12:49 734-591 -1286 P IN=11\ Camerica Bunk f A breakdown and computation, satisfactory to Comerica, of the cost of the Project and a proposed construction schedule. g_ Copies of all required building and other permits. h A copy of the approved site plan, and other governmental • approvals related to the Project. 1. A satisfactory written environmental assessment report prepared by a consultant acceptable to Comerica. • j. A copy of a soil evaluation test of the Project and a certificate from the Project engineer regarding suitability of soil conditions for construction of the Project. k. A pre-construction audit satisfactory to Comerica, prepared by an independent architect and/or engineer to be selected by Comerica. Cornerica will retain an inspector, at Company's expense to provide the following: (i) a review of the final plans and specifications and any changes thereto; (ii) a review of the Project cost breakdown and construction schedule; (iii)a review of each construction draw package based upon regular on-site inspections; OR Facility B: Facility Description: Up to $2,600,000 Secured Construction Line of Credit Purpose: To fmance the construction of Company's new facility located in South Lyon, Michigan. if Facility A does not close Maturity Date: 12 months from closing Rate: Comerica's Prime Rate, as it may change from. time to time. Interest payable monthly. Security Same as Facility A_ Support: Same as Facility A. Fee: 1% of the loan amount payable upon acceptance by Company of this Commitment 07/22/02 MON 11:50 (TX/RX.NO 82591 Exhibit C COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT (M.C. Carbide Tool Co. Project) The undersigned, M.C. Carbide Tool Co., 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 M.C. Carbide Tool Co. 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 Lyon Township, Michigan, the municipality in which the Project will be located, unless the Company 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. Dated: 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. M.C. Carbide Tool Co., a Michigan corporation iii J /1/s..t.‹.• PAR-4-tels-Al By: Its: Dated: 7 Exhibit D COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES (M.C. Carbide Tool Co. Project) The undersigned, M.C. Carbide Tool Co., 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 M.C. Carbide Tool Co. 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. M.C. Carbide Tool Co. By: tp7i Its: A:\Master #2/Oakland EDC - Project Plan Form.doc • • ir Resolution #02193 August 22, 2002 Moved by Crawford supported by Palmer the resolutions on the Consent Agenda, be adopted. AYES: Appel, Brian, Buckley, Causey-Mitchell, Coleman, Crawford, Douglas, Garfield, Gregory, Law, McPherson, Melton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos. (22) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda, were adopted. 1 HEREE2x 'We HE FOREGOING RESOLLIM Date I L Brooke Person. County Executive 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 August 22, 2002, 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 of August, 2002. G. William Caddell, County Clerk