HomeMy WebLinkAboutResolutions - 2004.08.05 - 27430August 5, 2004
MISCELLANEOUS RESOLUTION #04187
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (MICHIGAN SEAMLESS TUBE LLC PROJECT) - CITY OF
SOUTH 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, that the Project Plan satisfies all of the
requirements of the Act regarding project plans and that a letter of credit
issued by a financial institution acceptable to the EDC will be available to
pay debt service; and
WHEREAS the governing body of the City of South 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, hereby certifies, approves and concurs in the
determinations of the EDC with respect thereto;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners hereby determines that the Project Plan constitutes a public
purpose as contemplated by the Act; and
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners
hereby certifies and approves the Project Plan; 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 carried on unanimous roll call vote with Coleman absent
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Michigan Seamless Tube LLC 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
"A-1" — Site Overview
"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
MICHIGAN SEAMLESS TUBE LLC PROJECT
OWNER OF PROJECT:
Michigan Seamless Tube LLC, a Delaware limited liability company
CONTACT PERSON: (Name, address, telephone number)
Paul C. Maier, Vice President & Chief Financial Officer, Michigan Seamless Tube LLC, 400
McMunn Street, South Lyon, MI 48178; phone 248-486-0149
LOCATION OF PROJECT: (Local municipality)
City of South Lyon
PROJECT AREA/DISTRICT AREA: See Exhibit A
NATURE OF PROJECT:
The Project will be used primarily for the manufacture of specialty seamless steel (carbon and
alloy steel) mechanical and pressure tubes for a variety of industrial applications, including
Automotive, Oil Field, Steam and Power Generation, Chemical Processing and Aerospace.
The Project includes the October 18, 2002 acquisition of an existing dormant manufacturing
facility (318,000 square foot steel tube mill on a 58-acre site) from Michigan Specialty Steel
out of bankruptcy proceedings. The principal components of the facility are a "Hot Mill" and
a "Cold Mill". The Hot Mill processes SBQ steel bars by heating the bar in a rotary hearth
furnace to approximately 2,250 degrees Fahrenheit. The hot bars are fed between a pair of
rotating rolls that drive the bars over a piercing point to form tube shells which are further
reduced in a rolling mill and then allowed to cool. Pierced and rolled shells are inspected,
pickled and then cold drawn in the cold mill. The Cold Mill then finishes tubes to the
specifications required by the facility's customers. The Company manufactures all of its
products to the specifications of its customers in a broad selection of sizes and wall
thicknesses.
The Project further includes the rehabilitation and renovation of such facilities, the acquisition
and installation of new machinery and equipment, and the construction and equipping of a new
addition to the Cold Mill to be used as a small diameter product finishing line.
EMPLOYMENT CREATED OR RETAINED:
The Project is expected to create approximately 200 full-time jobs within 2 years of the original
acquisition of the facilities. These jobs can be broken down into the following general
categories:
Management & administrative staff: 50
Hourly production employees 150
The Project currently has approximately 172 employees (125 hourly; 47 salaried).
TOTAL PROJECT COST:
$9,000,000
BONDS TO BE ISSUED;
$9,000,000
LETTER OF CREDIT ISSUER OR BOND PURCHASER:
The Company is engaged in negotiations with respect to the terms of letter of credit
commitments with Standard Federal Bank and Comerica Bank.
DATE AND EXPIRATION DATE OF LETTER OF CREDIT OR BOND PURCHASE
CO1V1CMI1MENT:
It is expected that the letter of credit commitments will be issued prior to July 20, 2004 and that
they will be effective for 60 days. The Company intends to close the bond financing in late
August or early September of this year.
2
MICHIGAN SEAMESS/TUBE LLC
By:
C. Maier
Its: Vice President & Chief Financial
Officer
PROJECT PLAN CERTIFICATION
TI-HS 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 WHIC:
THE PROJECT PLAN PERTAINS.
Dated: July 12, 2004
3
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
MICHIGAN SEAMLESS TUBE LLC 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 District Area (which is coterminous with the Project Area) consists of an
approximately 58-acre site, encompassing existing steel processing facilities first developed 78
years ago. The facilities include approximately 318,000 square feet of building space.
There are no public streets or other public facilities within the Project District Area.
A legal description of the Project Area is attached as Exhibit A.
A site overview depicting all categories of use is attached as Exhibit A-1.
II. A DESCRIPTION OF EXISTING IMPROVEMENTS IN TILE PROJECT AREA
TO BE DEMOLISHED, REPAIRED, OR. ALTERED; A DESCRIPTION OF REPAIRS AND
ALTERATIONS; AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION:
The Company acquired the existing dormant specialized steel manufacturing facilities located in
the Project Area from Michigan Specialty Steel out of bankruptcy proceedings on October 18,
2002. Prior to being able to commence manufacturing operations at the site, the Company had to
expend approximately $700,000 in repair, rehabilitation and maintenance costs. Refurbishment
included repairing the pickling tanks and associated equipment, rehabilitating and installing
waste water treatment equipment, and making substantial repairs to production equipment and
annealing furnaces. Since start-up, the Company has continued to expend considerable amounts
in refurbishing existing buildings and in repairing and replacing existing equipment through to
current date, with significant additional rehabilitation scheduled over the next two years.
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 approximate costs of the Project to be financed with proceeds of the Bonds are as
follows:
4
Existing manufacturing building $1,200,000
Existing machinery & equipment 2,850,000
Land 95,000
Rehabilitation/renovation including
(DX units & other) 1,050,000
New machinery and equipment
(roll stands & other) 810,000
New Cold Mill small diameter
finishing line construction
and equipment 3,545,000
TOTAL $9,000,000
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE:
Original acquisition: October 18, 2002
Two month period of rehabilitation and repair necessary to start-up
Continuing rehabilitation through August 2006.
Installation of new machinery and equipment through August 2006.
Construction of Cold Mill building expansion to be determined
V. A DESCRIPTION OF. THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
Other than the Cold Mill expansion, there are no immediate plans to alter the general site layout
as depicted on Exhibit A-1.
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:
5
VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, rNTERSECTIONS AND 'UTILITIES:
None
VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FrNANCING THE
PROJECT, INCLUDING ATTACHMENT OF A COPY OF THE LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER:
The Company requests the assistance of the EDC in issuing tax-exempt industrial development
bonds in a principal amount not to exceed $9,000,000, payment of debt service on which will be
secured by an irrevocable direct pay letter of credit of either Standard Federal Bank or Comerica
Bank. The bonds are expected to be structured as variable rate demand bonds, and to be
purchased and sold, or privately placed, by an investment banking firm which may or may not be
affiliated with the issuer of the letter of credit.
Copy of Letter of Credit or bond purchaser's commitment letter to be attached as Exhibit D prior
to July 20,2004 meeting of the EDC.
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:
The Company is a privately-held Delaware limited liability company, headquartered at the site
of the Project. The Applicant was organized in 2002 for the purpose of acquiring the
dormant manufacturing facilities of Michigan Specialty Steel out of bankruptcy proceedings.
6
The principal management personnel are:
Russell W. Maier, President and Chief Executive Officer
Paul C. Maier, Vice President and Chief Financial Officer
. James M. Royce, Controller
Les Whitver, Vice President-Operations.
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 Company will be the sole owner and operator of the Project.
XII. IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT WITH A
PERSON OR PERSONS, NATURAL OR CORPORATE, THAT THE PROJECT WELL 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
XIEL 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:
There are no persons residing in the Project Area.
7
XIV. A PLAN FOR ESTABLISHENG PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT rN 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
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
8
XVII, OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS
PERTINENT:
Not Applicable
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
, SOUTH LYON, MI 48178-1392
View Pliotos View Map .
40
P revel ID
21-30-203-003
msuacoauty
CITY OF SOUTH
LYON
Owner(s)
MICHIGAN SPECIALTY TUBE
Parcel ID
21.30-2057001
Municipality
CITY OF SOUTH
• tycv •
Owner Mailing Address
400 MCMUNN An ix CONTROLLER, SOUTH LYON,lvil 48178-1392
Praperv Description
TIN, R7E, SEC 30 C HEI,MUTH'S ADD LOTS 6 TO 15 INCL, ALSO S 1/2 OF VAC
LIBERTY ST ADJ. TO SAME, ALSO W 24.75 FT OF VAC HA.GADORN ADJ TO SAME, -
ALSO ALL OF VAC LENOX ST ADJ TO SAME
Parcel ID
21-30-126-004
MunicOaltty
CTIY OF SOUTH
. • LYON
Owner(s)
• MICHIGAN SPECIALTY TUBE
Owner Malin:Address
400 MCMUNN AU TX CONTROLLER, SOUTH LYON, MI 481784392
• ProperV DescrVIon
T1N, R7E, SEC 30 PART OF NW FRC 1/4 BEG AT PTDIST S 01-28-00 E 970.90 FT FROM
N 1/4 COR,111 S 01-28-00E 580.65 FT, TH S 84-48-30W ALGNLY UNEOF GTW RR R/W
1482.30 FT, 7TH N 00-38-00W 686.20 FT 'MN 88-53-30 E 1470 FT TO BEG 21.37 ACM 6C
Parcel ID
21-30-233-003 • crry OF SOUTH
• LYON
Owner(s)
MICHIGAN SPECIALTY TUBE
Owner Mailing Actdress
400 MCMUNN AIT TX CONTR.OLLER., SOUTH LYON, MI 48178-1392
•=111M
• Property Description
T1N, R7E, SEC 30 CALKINS ADD LOTS 1 TO 10 Nu, ALSO ALL OF VAC LEWIS ST
API TO SAME, ALSO THAT PART OF OUTLOT 3 LYING N OF MAL RR R/W BLK 9
Ownerr)
MICHIGAN SPECIALTY TUBE
Owner Mailing Address
400 mcmumi An TX CONTROLLER, SOUTH LYON, MI 48178-1392
• - • • Property Description • • .•, :
TiN,.R7E, SEC 19 & 30 PART OF NE 114 OF SEC 30 & PART OF SE 1/4 OF SEC 19 BEG
AT N 1/4 COR OF SEC 30, TH N 01-13-00 E.62.41 FT, TH S 81-47-25 E 276.04 FT, TH S 00-
34-45 E 332.54 FT, THN 89-25-30 E 43.50 Fr, TH S 01-10-45 E424.41 FT, TH ELY 352.42
FT, TH N 198 FT, THE ALG S LINE OF 1KINGSLEYCALKINS ADD' 642.73 FT, TH S ALG
W LINE OF WEST ST 910.25 FT, 7TH WLY ALGNLY LINE OF GTRR R/W 1261.25 FT TO
N & S 1/4 LINE, TIN 01-28-00W 1550.52 FT TO BEG 31.27 ACJ12
rr.
' • •
• ". •
GENERAL INFORMATION
Site Address
400 MUM
SOUTH LYON.M148178-1392
Pesti' kklress
450 MCMLNI ATI Ix CONTROLLER
SOUTrl LYON,M1.48176-1392
Pa meld)
21801'5001
Prods)
MINGAN SEAMLESS TUBE
MunicOalily
OrlY Of SOUTH LYON
ASSESSMENT INFORMATION
Assessed Value
1011850
Taxable Value
101 Igo
Use
NDUSTRIAL IMPROVED
School District
saini DO% SCHOOLS
Neighborhood Code
MST
Date Added
Property lkscron
TIN. R7E, SEC i 9 8 30 FART Of AE 1,4 OF SEC 30
PART OF SE 1,4 Cf SEC 19 BEG AT N 14 CCR OF
SEC 30, TH N01-13-00 E 6241 FT, TN S 8141•25E
276.04 FT. Th 500-3445 E 332 54 FT. TH N 89-25-30 E
43.50 Fr. IllS 01-1045 E 424 41 FT. TN ELY 35242
FT, IAN 130F1, TH E ALG S LINE OF
TINGSLEYCALKNS ADD' 642.73 FT, 11-IS ALG W
LNE Of WEST ST 910.25 FT. 11 SKY ALG
1-YLl1-EOFGTRWI261.25FTTO NOS 14
LNE, IAN 01-28-50W 1550.52 FT TO BEG
31.27 ACJ12
2002 Color
Disclaimer: The information provided in this
system has been compiled from recorded deeds,
plats, tax maps. surveys and other public records
and data. It is not a legally recorded map or
survey and is not intended to be used as one.
Users of this data are hereby notified Mat the
information sources mentioned above should be
consulted for verification of the information.
,
EXHIBIT A-1
SITE OVERVIEW / FACILITY SITE MAP
I
Uri
S i
0
Ci
El
Nri
rla Haggadorn St, *MICHIGAN 403 klaturcl
tsarina., tube South ILYDA.MIckllisc 45178
LONG 83° 39' 45'
Mcliattie st,
Si MAIM BO
Vence Drain
;
-115WE tt — ... _ _
...
1
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a.
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1*' —
ys 1 I Lift- /
11441,.............e.1.--- '...r I
s.` .....„,-,,t.::, 4. •
• -••
N.
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..s.
.4.6..9
.,
1 1 i
,Il SLUDGE DRYti.B.,E5(/ i .
•n•.:n"' '14 .7 I i
— —.....n••
Liberty Street
f ;
tit
a
Lenox St,
TABLE OF IDENTIFIED FEATURES
1. Administration Offices 14.
2. EDP (Computer) Building 15.
Cooling Tower
Gas and Dismal Strage Tanks (Diked)
3. East MaInteriance - Store Room 16. Sulfuric Acid Tanks (Diked)
4. Hot Mili Complex IT, Cooling Panda
5. Electrical Shop 18. Waste Oil Tank (Diked)
5. Laboratory 10. Hazardous Waste storage Building
T. Cafeteria, Women's Restroom 20. Chemical & Drum Storage
8. Employes Locker Room 21. Loading Dock (Pit)
0 g. Engineering Offices. Stare 22_ Acid Recover Building
Room. Machine Shop 23. Wastsvrater Treatment Building C-3 8 § 10. Guard House 24. Clarifiers
g 11. Fuel cli Storage Tanks 28. Chemical Storage Building
0 12. Neutralization Treatment Plant 20- Steelyard - Steel Bar Storage
13. Main Entrance 27. EDISON Sub-Station
—III
°
]
__._-....t...-,. - ____ ....... ___....0-....
I II
SLUDGE DRYING BED t i." . Ce ttt Y. It "' ." --- — '' It = ..74-.;-c. -•.:".. , ...
%," ,,,..• `..••••n V
To 'fades Gran— FORMA GUM& KM
WY, HURON VALLEY TAAL Y135035 Drain
NORTH
tiaitteamr
Scale In Feet
FACILITY SITE MAP
MICHIGAN SEAMLESS TUBE, LIG
400 tvICMUNN
SOUTH LYON, MICHIGAN 48178
OAKLAND COUNTY
Revised 6,302004
...11DComfort1DGINAsite_pm_2004.dgn 6/30/20044:12:49 PM
Exhibit B
LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Michigan Seamless Tub e LLC Project)
The undersigned, Michigan Seamless Tube LLC, a Delaware limited liability company
(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 Companys 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 Michigan Seamless Tube LLC 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 South Lyon, 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 • /
•LLC, a.
By:
hul C.Xaier
Its: Vice Pfesident & Chief Financial
Officer
Dated: July 12, 2004
Michigan Seamless
Delaware / / r
/
C-1
• •
Michigan Seamless/TifilniLLC /
By:
aul C/Maier
Its: Vice 'resident & Chief Financial
Officer
a
a
I •
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Michigan Seamless Tube LLC Project)
The undersigned, Michigan Seamless Tube LLC, a. Delaware limited liability company
(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 Michigan Seamless Tube LLC
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 inie. 9atd.
Dated: July 12, 2004
BH 561467v1
BI-1011471113.3
IDOVB
D-1
4 • •
4 a
August 5, 2004 Resolution #04187
Moved by Palmer supported by Potter the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Hatchett, Jamian, Knollenberg, KowaII, Law, Long, McMillin, Middleton, Moffitt, Moss,
Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Bullard, Coulter, Crawford,
Douglas, (22)
NAYS: None, (0)
A sufficient majority having voted therefore, the resolution was adopted.
I 1111P APPRNE THE RIMS IESOWTION
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 5, 2004
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 "inty of Oakland at
Pontiac, Michigan this 5th day of August, 2004.
fi
'./1"64;io • 611'aL
G. William Caddell, County Clerk