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HomeMy WebLinkAboutResolutions - 2004.11.18 - 27634November 18, 2004 MISCELLANEOUS RESOLUTION 104340 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION APPROVING PROJECT PLAN (ARCS & TECHNOLOGY ACADEMY OF PONTIAC PROJECT) - CITY OF PONTIAC 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 policy of municipal bond insurance will be available to pay debt service in the event of the failure of the Project owner to do so; and WHEREAS the governing body of the City of Pontiac, 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 Arts & Technology Academy of Pontiac Project PROACT".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 Purchases Commitment Letter "C" - Company Certificate Regarding Transfer of Employment - Company Certificate Regarding Payment of Prevailing Wages • Other: "E" — Estimated Sources and Uses of Funds • • - Project Site Plan • - Foundation Plan/Layout - . Modular Building Layout — Middle School October 11, 2004 PROJECT PLAN SUMMARY DESCRIPTION OF ARTS & TECHNOLOGY ACADEMY OF PONTIAC PROJECT OWNER OF PROJECT: • The Arts & Technology Academy of Pontiac ("ATAP"), formerly known as Pontiac Public School Academy, is a Michigan nonprofit corporation. ATAP provides elementary and middle school educational services for approximately 465 kindergarten through 8th grade students. At present, ATAP leases a 35,000 square-foot building (the "Facility"). The Owner and Lessor of the Facility is Baypon Academy Leasing,'" LLC, a Michigan limited liability company ("Baypon"). This financing will allow ATAP to acquire its existing leased facility and provide funds to construct eight additional classrooms and specialty areas. CONTACT PERSON: (Name, address, telephone number) ATAP: . . Sadie Mahone, Chief Administrative Officer 48980 Woodward Avenue, Pontiac, MI 48342 (248) 452-9309 LOCATION OF PROJECT: (Local municipality) 48.980 Woodward Avenue, Pontiac, MI 48342 . PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: The financing will allow ATAP to (a) buy out its Lease with Baypon and acquire the existing 35,000 sq. ft. Facility; and (b) build eight new classrooms and specialty curriculum rooms, thereby expanding enrollmant caPacity to 625 Studehts. " It is anticipated that four modular classrooms, rest rooms and storage space totaling 5,000 sq. ft. will be completed by January 2005; the remaining classrooms and facilities comprising 7,000 sq. ft. of additional space will be completed by June 2005. Thus, the Facility will be expanded by approximately 12,000 sq. ft. to a total of 47,000 sq. ft EMPLOYMENT CREATED OR RETAINED: As of the commencement of the 2004-05 academic year, ATAP employs 49.5 individuals on a full-time equivalency ("FTE") basis. As a result of the Project and the expansion of the Facility, it is anticipated that not only will all these jobs will be retained, ATAP will employ an additional 4 FTEs, for a total employment of 53.5. At the projected maximum capacity of 625 students by approximately 2008, ATAP expects to employ 59.5 FTEs. During expansion of the Facility, approximately 10-20 construction jobs will be created. TOTAL PROJECT COST: Purchase Price of Facility $4,850,000 Expansion of Facility 1,650,000 Total Project Costs $6,500,000 BONDS TO BE ISSUED: $9,290,000 (see Exhibit E — Estimated Sources and Uses of Funds) LETTER OF CREDIT ISSUER OR BOND PURCHASER: Credit enhancement will be provided in the form of a municipal bond insurance policy from ACA Financial Guaranty Corporation ("ACA"). Standard & Poor's will rate the bonds "A" based upon the ACA guarantee. The ACA bond insurance policy will be effective upon the closing date of the financing and will . remain in effect for the life of the Bonds. The policy is non-cancelable. • DATE AND EXPIRATION DATE OF LETTER OF CREDIT OR BOND PURCHASE COMMITMENT: The ACA bond insurance policy will be effective upon the closing date of the financing and will remain in effect for the life of the Bonds. The policy is non-cancelable. • • 2 7.6 ez.44/141)1?-1-- By: Rniond Seay Its: Board President 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. Dated: October 11, 2004 3 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING ARTS & TECHNOLOGY ACADEMY OF PONTIAC PROJECT 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: 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: .The Project comprises two portions: (1) ATAP will purchase its existing 35,000 sq. ft. • Facility, and (2) expand the Facility by approximately 12,000 sq. ft. .During the first. phase of the expansion, ATAP will add four modular classrooms, rest rooms, and storage space totaling 5,000 sq. ft. that collectively will be-atilized for middle school programs. The first phase is expected to be completed by January 2005. In the second phase of expansion, three new classrooms totaling 4,500 sq. ft. plus a 2,500 sq. ft. addition to the existing gym/multi-use room will be added. = 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: Purchase Price of Facility .• $4,850,000 Expansion of Facility 1,650,000 Total Project Costs $6,500,000 The location of the Project is 48980 Wpoilward Avenue, Pontiac, MI 48342. It is estimated that the time required for completion of the Project is six months. A portion of the new classrooms will be available by January 2005. The remainder of the new classrooms and the rest of the new facilities will be available for the beginning of the 2005-06 academic gear in August 2005. The existing Facility (excluding the expansion) will continue normal operations throughoa the 2004-05 academic year during construction of the new facilities. 4 IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: . . Phase Description Estimated Date of Completion Phase 1 Purchase of Facility Nov./Dec. 2004 Phase 2 Expansion of Facility June 2005 V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: Not applicable, as the Project relates to acquisition and construction of a Charter School 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 UTILIIIES: • 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: Negotiated sale of tax-exempt revenue bonds, rated "A" by Standard & Poor's based on a municipal bond insurance policy provided by ACA Financial Guaranty Corporation. 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 5 X. A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN I (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN: ATAP: Sadie Mahone, Chief Administrative Officer Raymond Seay, Board President 48980 Woodward Avenue, Pontiac, MI 48342 ..•• 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: Arts & Technology Academy of Pontiac _ 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 nn•••••• 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: None 6 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 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 n••n••S XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT: Not Applicable 7 EXHIBIT A LEGAL DESCRIPTION Commitment No.: CM-378117 Land in the City of Pontiac, Oakland County, Michigan, described as follows: PARCEL A: • That portion of the total parcel lying SoutheaSterly of a line extending from the Notthwest comer of Lot 124 of ASSESSOR'S PLAT NO, 119, as recorded in Liber 53, page 39 of plats, Oakland County, Michigan, and extending to a • point on the Southeasterly right of way line of Grand Trunk Western Railroad, 240.00 feet from the most Northerly point of Lot 119 of ASSESSOR'S PLAT NO. 119, and lyinn Northeasterly of a line extcr ding from the above mentioned point on the Southeasterly right of way line of Grand Trunk WesternRailroad to a point on the Northeasterly right of way line of Wide Track Drive, said point being 431.73 feet along a curve to the right, said cnrve having a radius of 617.96 feet, a central angle of 40 degrees 02 minutes 00 seconds and -a long Chord bearing of North 19 degrees 59 minutes 12 seconds East, 423.05 feet from the most Southeasterly point of that part of Lot 116 of ASSESSOR'S PLAT NO. 119 being part of the total parcel. PARCEL C: That portion of Lots 116, 117, 118, 119 and 120 of ASSESSOR'S PLAT NO. 119, according to the plat thereof recorded in Liber 53 of Plats, page 39, Oakland County Records and parts of Lot 66 of SANDERSON & JOHNSTON'S ADDITION, according to the plat thereof recorded in Liber 1 of Plats, page 33, Oakland County Records, and also part of Lots 12 and 13 of NICHOLSON ADDITION, according to the plat thereof recorded in Liber $ of Plats: Page 25, Oakland County Records and including pert ofLots 12 and 13 of DELAND COURT, according to the plat thereof recorded in Liber 7 of Plats, page 6, Oakland County Records, also part of the vacated Deland Court; more particularly described as: Beginning at the most Northerly point of said Lot 119, ASSESSOR'S PLAT NO. 119; thence North 20 degrees 25 minutes 44 seconds East, 240.05 feet; thence south 32 degrees 08 mintres 49 seconds East, 237.95 feet to a point on the Northwesterly right of way line of Wide Tract Drive; thence along sair. Northwesterly right of way line, 431.78 feet along the arc of a curve to the left, radius 617.96 feet, chord South4P degrees 57 minutes 57 seconds West, 423.05 feet to a point on the Southeasterly line of said Lot 116 of ASSESSOR'S PLAT NO. 119; thence South 58 degrees 46 minutes 54 seconds West, 52.49 feet; thence North 46 deuces 25 minutes 12 seeonds West, 61.59 feet thence North 46 degrees 07 minutes 55 seconds west, 62.92 feet; thence North 75 degrees 26 minutes 03 seconds West, 36.96 feet; thence North 39 degrees 01 minutes 59 seconds West, 24.30 feet; thence North 45 ileaees 48 minutes 56 seconds West, 37.80 feet; thence 93.71 feet along the arc of a curve to the right, radius 788.00 feet, chord North 15 degrees 38 minutes 43 seconds East, 98,65 feet; thence South 73 degrees 09 minutes 16 seconds East, 12.27 feet to the point of beginning. PARCEL D: Part of Lot 122 of ASSESSOR'S PLAT NO. 119, according to the plat thereof recorded in Liber 53 of Plats, page 39, Oakland County Records, more particularly described as: Beginning at a point distant South 43 degrees 43 minutes 26 seconds West, 187.88 feet along the Southeasterly line of Lot 125 of said ASSESSOR'S PLAT NO. 119 and South 41 degrees 39 minutes 34 seconds West, 150.15 feet from the. most Easterly corner of Lot 125 of ASSESSOR'S PLAT NO. 119 to thd point of beginning; theme continuing South 41 degrees 39 minutes 34 seconds West, 279.48 feet to a point on the Easterly right of way line of Grand Trunk Western Railroad, thence along the snid line, North 20 degrees 25 minutes 44 seconds East, 299.83 feet: thence South 48 degrees 20 minutes 26 seconds East, 108.58 feet to the point of beginning. Tax Item No.(s): 14-29-252-032, as to Parcels A and D, 14-29-252-01'3, as to Parcel C 67 A e 4:. kiNitTe4 • r y r r Lsaajo:dz ar,1114 Disclaimer. The information provided herewith has been compoied from recorded deeds. plats. tax maps surveys and other public records. It is not a legaliy recorded Mao or survey and is not intended to be used as one Users should consult the informatior sources mentioned above when Questions arise. L. Brooks Patte Oakland Count L. Brooks Patterson Oakland County Executive P.) CiC CD r —v. c7 •r,-, 2 )0. c -0 f c — —1 CO XI 112 nAkhanii nnrinev Mannino nevi Frnrinrnir n....Innrna•nt .Cory4rym 1701 MIMI 7-40.nr-trnh Por4r1 Rhin 14 Fp, ct Pnnti.r. AAI 414%11 Phnnia • 24R-R5AA72f1 lAlph• hlinl/www rn nakInnti mi orc/node Exhibit B LETTER OF CREDIT OR BOND PURCHASER'S COMMITMENT LETTER American Capital Access 140 Broadway, 47th floor T 212 375 2000 F 212 375 2100 New York, New York f000s www.aca.corn October 19, 2004 Mr. Mark Holmstedt Westhoff, Cone, and Holmstedt 1777 Botelho Drive, Suite 370 Walnut Creek, Ca. 94596-1777 Re: Oakland County Economic Development Corporation, Michigan Governmental Purpose Revenue Bonds (Arts and Technology Academy of Pontiac) Dear Mark: ACA Capital's municipal credit committee has approved the above captioned securities for a municipal bond insurance policy, pending the structuring of the transaction to meet the -Conditions outlined below. • First mortgage on land, building, furniture and fixtures • Perfected security interest and lien on gross receipts • Fully funded debt service reserve • Liquidity reserve to.be established and maintained in an amount equal to mad/s • Build up of an early redemption account by trapping cash, either from excess revenue or by capturing an amount of the subordinated management fee, so that the account is sufficient to redeem the portion of the bonds used to fund the liquidity reserve within 5 years of closing. • The funding of a renewal and replacement account (in an amount to be determined) by continuing to trap excess cash once the early redemption account has been funded. • 100% subordination of management fees to debt service; 25% subordination of management fees to deposits to the early redemption account. Subordination of management fees may be released once the school achieves 1.35x coverage of debt service (management fees must be included as an operating expense) by net revenue available for debt service for 3 consecutive years, enrollment has stabilized at a minimum of 550 students, and the early redemption account has been fully funded. ACA Capital's premium rate will be 6% of total principal and interest due on the bonds, payable at closing. Thank you for giving us the opportunity to participate in this financing. I look forward to working with you and the rest of the team to structure a successful transaction. Thea Okin Director Cc: Mark Holmstedt Robert Smith Arts & Technology Academy of Pontiac, a Michigan Nonprofit Corporation • Ríymond Seay Its: Board President Exhibit C COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT (Arts & Technology Academy of Pontiac Project) The undersigned, Arts & Technology Academy of Pontiac, a Michigan nonprofit 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 Arts & Technology Academy of Pontiac 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 Pontiac, 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. Dated: October 11,2004 n•n••• Arts & Technology Academy of Pontiac, (21-L--1/14A,F4-Lit-1 By: Reymond Seay Its: Board President Exhibit D COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES (Arts & Technology Academy of Pontiac Project) The undersigned, Arts & Technology Academy of Pontiac, a Michigan nonprofit corporation (the "Company"), hereby certifies to The Economic Development Corporation of the County of Oakland (the "ED C") 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 Arts & Technology Academy of Pontiac 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. Dated: October 11, 2004 Exhibit E ESTIMATED SOURCES AND USES OF FUNDS $9,290,000 Oakland County Economic Development Corporation Governmental Purpose Revenue Bonds (Arts & Technology Academy of Pontiac) Sources of Funds Principal Amount of Debt . $9,290,000.00 Uses of Funds Project Costs: Purchase Price of Facility $4,850,000.00 Expansion of Facility 1,650,000.00 • • Title Insurance/ Phase I Environmental 15,000.00 Contingency. 5,356.62 Subtotal Project Costs $6,520,356.62 Reserve Fund (MADS) 648,550.00 Liquidity Fund (MADS) 648,550.00 ACA Insurance (1) 1,205,130.88 Costs of Issuance: Bond Counsel 45,000.00 Underwriter's/Disclosure Counsel 25,000.00 OCEDC Issuance Fee (2) 11,612.50 OCEDC Application Fee 500.00 OCEDC Inducement Fee 500.00. OCEDC Project Plan Approval Fee 500.00 School's Counsel 15,000.00 Rating (S&P) 10,000.00 Trustee & Counsel 9,700.00 Printing - Official Statement 10,000.00 CUS1P 250.00 Underwriter's Discount (1.5%) - 139,350.00 Subtotal Costs of Issuance 267,412.50 Total Uses of Funds (1) ACA Insurance based on 6% of total Debt Service. (2) Equals 0.125% of the bond amount. $9,290,000.00 `M. SEOGEWICK & FERWEDA ARCHITECTS Me MIMM 1...1.1.1.1. WM.. r: • • vf • 0 • 11..1 SEOGEWICK & OJEDA ARCHIE'S Ae7, 4 7ealiJor-c4Y AGAbetlY Pok•rriAe. W0,94.1"t45 1404, pogrvz... tr-7a14JPArioxi pc-041-1 nn••n .1,11. DOI •14 1.00.15101ibil/.7 1,1*(1. le.n••n•1 YAM 1111.014-11..20 .174't f4tr. 1077122.1.• PAUerlanOreraws..• 414.1e4. il."70,1c7Fini'Vr4S04047„q.le.i.-4.75=g4te lirgyNekL,, $4,4:4;1--.11snti 14-re' g• SCHO */ 7 AWSERIESt-MUL'11=CEASSROOM. BUILDINGSIA:tt,-,t — - e1•71104rNeKtP. YrtPM ; um- The standard Scholar Series building includes four or six classrooms with or without restrooms. if required, buildings can be easily modified to include additional classrooms, administrative offices, conference rooms, lunch rooms, and assembly space. Innovative Modeler tolutiohs 1555 Naperville/Wheaton koad, 6ufte 106 NapeArille, Illinois 60563 Phone: 1-800-357-4699 Fax 1-630-305-3695 Online: www.innovativemodujar.com E-mail: schools@innovativernodolar.com. Resolution #04340 November 18, 2004 Moved by Palmer supported by Hatchett the resolution be adopted. AYES: Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack, Bullard, Coleman, Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Law. (24) NAYS: None. (0) A sufficient majority having voted therefore,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 November 18th, 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 County of Oakland at Pontiac, Michigan this 18th day of November, 2004. 5/4"1.714,-46.5.4._ " G. William Caddell, County Clerk