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
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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
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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
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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