HomeMy WebLinkAboutResolutions - 2004.07.22 - 27529REPORT (misc. #04160) July 22, 2004
BY: General Government Committee, William R. Patterson, Chairperson
IN RE: MR #04160 — BOARD OF COMMISSIONERS — SUPPORT FOR OAKLAND
COUNTY'S PERSPECTIVE ON COBO CONVENTION FACILITY
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The General Government Committee, having reviewed Miscellaneous Resolution
#04160 on July 12, 2004, reports with a recommendation that the resolution be adopted.
Chairperson, on behalf of the General Government Committee, I move
acceptance of the foregoing report.
GENERAL GOVERNMENT COMMITTEE
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General Government Committee Vote:
Motion carried on a roll call vote with Coulter voting no.
Miscellaneous Resolution # 04 160
BY: Commissioner Bill Bullard, Jr., District #2
RE: Board of Commissioners - Support for Oakland County's Perspective on Cobo
Convention Facility
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Tourism Action Group (TAG) was established approximately 18 months
ago to study the feasibility and business needs of the Cobo Convention Center; and
WHEREAS the Oakland County Executive established a work group - Oakland Cobo ll -
to identify Oakland County's concerns and to present alternative proposals for action that
are fair to Oakland County taxpayers and effectively support improvements in the region's
tourism and convention economy; and
WHEREAS Oakland County Executive L. Brooks Patterson presented the report, "Cobo
II: An Oakland County Perspective," which contained the primary recommendation that the
City of Detroit should seek financing from the private sector to construct, operate and
maintain a new convention facility - Cobo II - which has an estimated cost of $1 billion; and
WHEREAS the alternative proposals for expansion ranged from $465 million for an
additional 100,000 sq. ft. of exhibit space to $665 million for an additional 225,000 sq. ft.
of exhibit space; and
WHEREAS presently, Oakland, Wayne and Macomb County hotels are assessed a hotel
accommodation tax to cover the annual debt service of approximately $16 million on the
existing Cobo Hall; and
WHEREAS there is also a 4% tax on all liquor sold for consumption in the state that is
placed in the State Convention Facility Development Fund to cover any portion of the
Cabo Hall debt that is not covered by the hotel tax. During the life of the liquor tax,
Oakland County businesses have been required to collect $55.1 million to help pay Cobo
Hall debt. Since Fiscal Year 2000, the Hotel Tax proceeds have been sufficient to cover
the entire annual Cobo debt service. The liquor tax has thus become a windfall for the 80
counties outside of the metropolitan area; and
WHEREAS the region, however, has no input into the bonding decisions of Cobo Hall
facilities. As of June 30, 2003, the outstanding Cobo Hall debt of $123 million was funded
through 2011. The City of Detroit refinanced the Cabo Hall bonds for an additional $36.9
million in debt, extending the debt maturity schedule to 2015; and
WHEREAS the Oakland Cabo ll report further recommends that should a Cobo Hall
Authority be established, the participating counties should include: Wayne, Oakland,
Macomb, Washtenaw, St. Clair, Livingston and Monroe; and
WHEREAS the Oakland Cobo ll report further stipulates conditions precedent for support
of a new revenue stream for a new convention center or the expansion of Cobo Hall - that
Commissioner Bill Bullard, J
District #2
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reflect Oakland County's desire to participate in positive regional development, in a
manner that is fair to Oakland County's residents and taxpayers; and
WHEREAS the conditions include: (1) equitable amendment of the State Convention
Facility Development Act; (2) return of liquor tax revenues to the county in which they were
raised; (3) there must be compulsory financial support from the entire SEMCOG region;
(4) governance role; (5) Oakland County will not support a property tax approach to fund
an expanded Cobo Hall; (6) if regional financing is required to support construction or
expansion of Cobo Hall, then all businesses and individuals living, operating and/or paying
taxes in the region must be placed on equal footing with Detroit-based suppliers and
contractors, when bidding for work at the Cabo Hall facility; (7) the State of Michigan must
commit to a substantial financial contribution - similar to the financial support provided to
regional convention facilities located outside of southeast Michigan; (8) labor must be a
partner and commit to adopting competitive labor rules and rates; (9) Oakland County
government must be provided all studies, reports, plans and estimates relative to the
operation and conditions of the existing Cobo facility and/or regarding the development of
a new or expanded Cob° Hall, and allowed an opportunity to review all estimated project
costs; (10) recognizing that the private sector is best suited to provide conference centers
in a market driven environment - Oakland County will not support expansion of taxpayer
involvement in funding for any suburban conference center; and (11) the State Convention
Facility Development Act must be amended to require the approval of all county
governments whose businesses and citizens are taxed to support Cabo Hall before any
new debt can be issued.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
hereby supports the position presented by Oakland County Executive L. Brooks Patterson
and the Oakland Cobo II work group as reflected in the document, "Cobo II: An Oakland
County Perspective."
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners requests
the Oakland County Clerk to forward copies of this adopted resolution to Governor
Granholm, the Oakland County Delegation to the State Legislature, the Michigan
Association of Counties, the Counties of Wayne, Macomb, Washtenaw, St. Clair,
Livingston and Monroe, the Mayor and City Council of the City of Detroit, the Detroit Metro
Convention and Visitors Bureau, the Detroit Regional Chamber and Oakland County's
Legislative Lobbyists.
Chairperson, we move the adoption of the foregoing Resolution.
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Resolution #04160 June 17, 2004
The Chairperson referred the resolution to the General Government Committee. There were no objections.
, Of,
Resolution #04160 July 22, 2004
Moved by Patterson supported by Middleton the resolution be adopted.
Moved by Patterson supported by Douglas the General Government Committee Report be accepted.
A sufficient majority having voted therefore, the report was accepted.
Discussion followed.
Vote on resolution:
AYES: Jamian, Knollenberg, KowaII, Law, Long, Middleton, Moffitt, Moss, Palmer, Patterson, Potter,
Rogers, Scott, Webster, Wilson, Bullard, Douglas. (17)
NAYS: Hatchett, McMillin, Suarez, Zack, Coleman, Coulter, Gregory. (7)
A sufficient majority having voted therefore, the resolution was adopted.
Re NOT REgiRE COUNTY ream Ave
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
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 July 22, 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,Pounty of Oakland at
Pontiac, Michigan this 22nd day of July, 2004.
G. William Caddell, County Clerk