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HomeMy WebLinkAboutResolutions - 2004.09.22 - 27725September 22, 2004 MISCELLANEOUS RESOLUTION #04280 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION APPROVING PROJECT PLAN (EASOM AUTOMATION SYSTEMS, INC.PROJECT) - CITY OF MADISON HEIGHTS 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 Madison Heights, 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 E. 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 Easom Automation Systems, Inc. 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 - Company Certificate Regarding Payment of Prevailing Wages Other PROJECT PLAN SUMMARY DESCRIPTION OF EASOM AUTOMATION SYSTEMS, INC, PROJECT OWNER OF PROJECT: Easorn Automation Systems, Inc. (EAS) as operator of facility owned by Fasom North Reality, LLC (ENR) are related through coirrnon ownership CONTACT PERSON: (Name, address, telephone number) Gary Stade 586-484-7255 12201 Stephane Shelby Tbwnship, MI 48315 LOCATION OF PROJECT: (Local municipality) 32471 Industrial Drive Madison Heights, MI 48071 PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: Rehabilitation EMPLOYMENT CREATED OR RETAINED: Employment retained - 55 employees Future Hires - 20 new hires TOTAL PROJECT COST: $2,675,000 estimated total project BONDS TO BE ISSUED: $2,100,000 bonds being issued LETTER OF CREDIT ISSUER Fifth Third Bank fn 1%. 'IA Af f.A1 S V vvvv DATE AND EXPIRATION DATE OF LETTER OF CREDIT OR BOND PURCHASE COMMITMENT: 'lb be determined by Fifth Third Bank - Dated: 4'76 EASOM AUTOMATION SYSTEMS, INC. By: Vice 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. PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING EASOM AUTOMATION SYSTEMS, INC. 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: See "exhibit A" for legal description The facility is located in an industrial subdivision. There is no residental, recreational, commercial, educational or other use property within the vacinity. 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: See exhibit "E" - Improvements 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: See "Exhibit A" for the location and "Exhibit E" for cost & timing. 3 IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: See "Exhibit E" V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: The entire project area (+ 3 acres) is required for operations. There is no open space contemplated. 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 4 VII. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES: No zoning street or utility changes are required. 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: An IRB in the amount of $2,100,000 is being applied for, while the remainder of the project (est. $600,000) is being funded by ES Copy of Letter of Credit or bond purchaser's commitment letter attached as Exhibit B. By Fifth -Third Bank 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: Gary Stade - Shareholder and V.P. Reginald Kelley - Shareholder and President 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: Eason North Reality, LLC owns the facilityand leases it to Easom Automation Systems, Inc. which is the operator of the site. These entities are related through ccomon ownership. . 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 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 6 COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS: The site is located in an industrial subdivision and will have no impact on families or housing communities. 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 7 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 Exhibit A PROJECT AREA LEGAL DESCRIPTION TIN, R11E, Sec 1 LEHO Industrial Acres NO 4 N 31.49 ft of Lot 108, also all of Lots 10 110, also S 18.51 ft of Lot 111 Disclaimer: The information provided herewith has been compiled from recorded deeds, plats, tax maps, surveys and other public records. It is not a legally recorded map or survey and is not intended to be used as one. Users should consult the irformation sources mentioned above when questions arise MODDEEEDrakl Oakland County Executive L.. BrooNs Patterson ns 0 is f ! 1 i : * i 1 . 0 o r iks -I)N., cn CI) 71 a) . ‘-< CD g) ,- i-, g = -1. a ' 13; O. ,7,' 0 rn Oakland County Planning and Economic Development Services 1200 North Teiegraph Road Bldg. 34 East Pontiac, MI 48341 Phone: 248-858-0720 Web: http://www.co.00kland.mi.uslpeds Exhibit B LETTER OF CREDIT OR BOND PURCHASER'S COMMITMENT LETTER TO be provided by Fifth Third Bank Fifth Third Bank, an Ohio banking corporation Attention: Trade Services Department 1850 E. Paris, SE Grand Rapids, MI 49546 MD ROPS81 Date of Issue: October 1, 2004 Letter of Credit No. R The Bank of New York Trust Company, N.A. Corporate Trust Department 719 Griswold Suite 930 Dime Building Detroit, Michigan 48226 Dear Sir/Madam: Fifth Third Bank, an Ohio banking corporation (the "Bank"), hereby establishes, at the request and for the account of Easom Automation Systems, Inc., a Michigan corporation, and Easom North Realty, LLC, a Michigan limited liability company, with main offices at 2761 Stair, Detroit, Michigan 48209 (the "Borrower"), in your favor, as Trustee under the Trust Indenture, dated as of October 1, 2004 (the "Indenture") between The Economic Development Corporation of the County of Oakland (the "Issuer") and you, pursuant to which Two Million One Hundred Thousand and 00/100 Dollars ($2,100,000.00) in aggregate principal amount of the Issuer's Variable Rate Demand Limited Obligation Revenue Bonds (Easom Automation Systems, Inc. Project), Series 2004 (the • "Bonds"), are currently outstanding, our Irrevocable Letter of Credit No. R , in the total amount of Two Million One Hundred Twenty-Six Thousand Five Hundred and 00/100 Dollars ($2,126,500.00), effective immediately and expiring on October 1, 2009, or such later date to which the stated expiration date has been extended in accordance with the terms hereof (the "Expiration Date") or earlier termination as hereinafter provided, which among other things secures the Bonds. We hereby irrevocably authorize you to draw on us upon presentation of your sight draft(s) in the forms of Annex 1A in conjunction with certificate(s) in the form of either Annex A, B or C, as appropriate, attached hereto, as provided below: A. One or more drawings with respect to payment of interest on the Bonds, (each an "Interest Drawing") made in the form of Annex A, each Interest Drawing to be in an amount not exceeding Twenty-Six Thousand Five Hundred and 00/100 Dollars ($26,500.00), which represents 45 days' interest on the Bonds assuming an annual maximum rate of 10% for a year of 365 days; and - B. One or more drawings with respect to payment of principal payments on the Bonds, whether by maturity, acceleration, optional redemption, or mandatory redemption (each a "Principal Drawing"), made in the form of Annex B, such Principal Drawings to be in an amount not exceeding Two Million One Hundred Thousand and 00/100 Dollars ($2,100,000.00) in aggregate; and C. One or more drawings with respect to payment of the purchase price of the Bonds (based on a purchase at par plus accrued interest to the date of purchase), (each a "Purchase Letter of Credit Drawing") made in the form of Annex C, each Purchase Drawing to be in an amount not exceeding Two Million One Hundred Twenty-Six Thousand Five Hundred Ninety and 00/100 Dollars ($2,126,500.00), [principal plus 45 days' interest on the Bonds assuming an annual maximum rate of 10% for a year of 365 days]. The amount available for payments with respect to Interest Drawings will be automatically reduced by the amount we pay on any Interest Drawing. However, unless within five (5) calendar days from the date we honor such an Interest Drawing you receive our notice that we will not reinstate such amount, your right to draw that amount shall be automatically and irrevocably reinstated, effective on the sixth (6 th) calendar day from the date we honor the Interest Drawing. This procedure for the automatic reinstatement of the amount available with respect to Interest Drawings shall apply to successive Interest Drawings, so long as this Letter of Credit shall not have been terminated as set forth below. The amount available under this Letter of Credit shall be automatically and immediately reduced by the amount we pay on any Principal Drawing or the principal portion of a Purchase Drawing. The amount of such reduction in the case of the payment of a Purchase Drawing shall be subject to reinstatement as set forth in the next paragraph. Amounts by which this Letter of Credit is reduced due to Purchase Drawings shall be automatically and irrevocably reinstated effective when we notify you in writing under the Pledge and Security Agreement, dated as of October 1, 2004, by and among the Borrower, us and you (the "Pledge and Security Agreement"), that the conditions precedent to release of the Bonds as to which the Letter of Credit is to be reinstated (the "Bonds to be Released") have been satisfied. Prior to such notification and release you shall not draw on the Letter of Credit with respect to Bonds held by you under the Pledge and Security Agreement. After such notification, the Letter of Credit shall be irrevocably reinstated in the amount of the face amount of the Bonds to be Released. If we receive your Interest Drawing, Purchase Drawing or Principal Drawing certificate(s) at our office at the address set forth above, all in strict conformity with the terms and conditions of this Letter of Credit, we will honor the same by 1:00 p.m., Detroit, Michigan time on the next business day with respect to such Drawings presented prior to 12:00 noon Detroit, Michigan time (with respect to such Drawings presented after such time, we shall honor the same by 1:00 p.m. Detroit, Michigan time on the second business day after presentation thereof) in accordance with your payment instructions; provided, however, that any Purchase Drawing, with the accompanying certificate, drawn in strict conformity with the terms and conditions of this Letter of Credit and presented at our office as hereinafter set forth prior to 5:00 p.m. (Detroit, Michigan time) on any business day shall be honored by us before 12:30 p.m. (Detroit, Michigan time) on the next business day if specified in your payment instructions. Payment under this Letter of Credit shall be made by transfer or deposit of immediately available funds to your account as provided in the respective certificate. We agree that all payments made by us hereunder will be made with our own funds and not with any funds which could be deemed to belong to the Borrower. All documents presented to us in connection with any demand for payment hereunder, as well as all notices and other communications to us in respect to this Letter of Credit, shall be in writing and addressed and presented to us at our above address, and shall make specific reference to this Letter of Credit by number. Such documents, notices and communications shall be personally delivered to us or may be sent to us by telecopier to the following number: (616) 653-8168, Attention: International Trade Services, or at any other office which may be designated by us by Letter of Credit written notice delivered to you three (3) Business Days preceding the date on which such change of address shall be effective. As used herein "Business Day" means any day other than (i) a Saturday, (ii) a Sunday, (iii) a day on which banking institutions in the city in which your corporate trust office (or its bond registrar, paying agent or tender agent offices) designated for payment of the principal, interest and purchase price of the Bonds is located or the principal office of the Remarketing Agent (as defined in the Indenture, initially Fifth Third Securities, Inc.) is located or the office of the undersigned at which action is to be taken to realize moneys under the Letter of Credit are required or authorized by law or executive order to be closed, or (iv) a day on which the payment system of the Federal Reserve System is not operational. This Letter of Credit shall automatically expire and terminate upon the earliest to occur of (i) the payment in full by us of funds authorized to be drawn under this Letter of Credit, (ii) your surrendering this Letter of Credit to us for cancellation as a result of (A) the payment in full of the Bonds pursuant to the provisions of the Indenture, or (B) the acceptance by you of an Alternate Letter of Credit (as defined in the Indenture), as certified by you to us, (iii) the Expiration Date, (iv) the business day following the Conversion Date (as defined in the Indenture) unless waived in writing by us prior to the Conversion Date, or (v) the close of business on the date which is fifteen (15) days after receipt by you of a written notice from us under Section 7.01(f) of the Indenture of the occurrence of an "event of default" under the Reimbursement Agreement and directing you to accelerate immediately all outstanding Bonds, which has not been rescinded. This Letter of Credit may be extended by us pursuant to the terms of the Reimbursement Agreement between us and the Borrower dated as of October 1, 2004. This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce, Publication No. 500 (the "Uniform Customs"). This Letter of Credit shall be deemed to be made under the laws of the State of Michigan, including Article 5 of the Uniform Commercial Code as now in effect in the State of Michigan, and shall be governed by and construed in accordance with the laws of the State of Michigan. As to any matter of conflict between the provisions of the Uniform Customs and the laws of the State of Michigan, the Uniform Customs shall govern this Letter of Credit. Notwithstanding anything in Article 48 of the Uniform Customs to the contrary, this Letter of Credit is transferable in its entirety (but not in part) to any transferee who has succeeded you as Trustee under the Indenture. Each letter of credit issued upon any such transfer may be successively transferred. Transfer of the available drawing(s) under this Letter of Credit to such transferee shall be effected by the presentation to us of this Letter of Credit accompanied by a certificate in the form of attached Annex D. Upon such presentation we shall forthwith transfer the same to your transferee or, if so requested by your transferee, issue an irrevocable letter of credit to your transferee with provisions therein consistent with this Letter of Credit. - This Letter of Credit sets forth in full our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by reference to any document, instrument or agreement referred to herein, except only by the certificate(s) and the draft(s) referred to herein, including the Amendment Certificate attached hereto as Annex E, for extension of the Expiration Date and other matters set forth therein; and any such reference shall not be deemed to incorporate herein by reference any document, instrument or agreement except for such certificate(s). Letter of Credit By: , is • • Exhibit C COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT (Easom Automation Systems, Inc. Project) The undersigned, Easom Automation Systems, Inc., 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 Easom Automation Systems, Inc. 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 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 Madison Heights, Michigan, the municipality in which the Project will be located, but the necessary approval under the Act of such transfer from the City of Detroit will be obtained prior to the closing of the proposed financing. 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. EASOM AUTOMATION SYSTEMS, INC., a Michigan corporation Its: Vice Pre6ident Dated: ‘- EASOM AUTOMATION SYSTEMS, INC., a Michigan corporation By: Its: Vice President Dated: Exhibit D COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES (Easom Automation Systems, Inc. Project) The undersigned, Easom Automation Systems, Inc., 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 Easom Automation Systems, Inc. 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. BH 568110v1 8/23/04 10/15/04 8/14/04 11/15/04 HVAC Construction - Paint & Floor covering subt 7/1/04 7/31/04 $750,000 7/1/04 8/15/04 Inspections Environmental Work subt. total I 4 Easom Automation Systems, Inc. Madison Heights Facility Exhibit E Improvements and Time Lines 1* Start Completion Cost Date Date $1,525,000 7/1/04 8/13/04 Facility Purchase Land & Building Cranes - Compressor - Electrical Buss - Etc. Improvements to acquired building: Immediate Upgrades Exterior Roof 8/19/04 8/31/04 Parking 8/14/04 9/1/04 Collapsed Drain 8/14/04 8117/04 Misc. - Landscape- siding repair - paint - block repair 8114/04 10/31/04 Floor repair 8/23/04 8/31/04 Paint interior 8/17/04 9/4/04 Electrical/cranes - clean up &repair 8/14/04 10131/04 Misc. 8/14/04 11/15104 Shop Offices Miscellaneous subt. Machinery & Equipment Immediate acquisitions Phones Computers Office Furnishings Shop equipment upgrades Future Equipment and Computer Upgrades Production Equipment Computer Engineering equipment Total Program costs (Est.) 8/31/04 10/1/04 10/1/04 11/15/04 10/15/04 11/15/04 $150,000 8/15/04 11/15/04 $2,425,000 7/1/04 11/15/04 $150,000 11/15/04 12J31/05 $100,000 11/15/04 12/31/05 $250,000 $2,675,000 711104 12/31105 Easom-Brothers-Bldg-improv,As 8/26/04 1 r /04 ,11011M G. William Caddell, County Clerk e• Resolution #04280 September 22, 2004 Moved by Palmer supported by Suarez the resolution be adopted. AYES: Law, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack, Bullard, Coleman, Coulter, Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII. (25) 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 September 22nd, 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 22nd day of September, 2004.