HomeMy WebLinkAboutResolutions - 2004.09.09 - 27748September 2004
MISCELLANEOUS RESOLUTION #04253
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN :.(PRATT & MILLER ENGINEERING AND FABRICATION, INC.
PROJECT) - LYON CHARTER TOWNSHIP
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.finandial institution acceptable to the EDC will be available to
pay debt service, and '
WHEREAS the governing body of Lyon Charter Township, 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 Projectand the financing thereof by
the issuance of Its limited obligation revenue bondsas 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 theEDC: _
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::.1
Motion carried on unanimous roll call vote with Douglas and Rogers absent
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Pratt & Miller Engineering and Fabrication, 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 Commitment Letter
"C" - Company Certificate Regarding Transfer of Employment
- Company Certificate Regarding Payment of Prevailing Wages
Other
PROJECT PLAN
SUMMARY DESCRIPTION OF
PRATT & MILLER ENGINEERING AND FABRICATION, INC. PROJECT
OWNER OF PROJECT:
Pratt & Miller Engineering and Fabrication, Inc., a Michigan corporation
CONTACT PERSON: (Name, address, telephone number)
Thomas P. Mikrut
Vice President-Treasurer
248600 Wm. K. Smith Drive
New Hudson, MI 48165
(630) 990-4576
(630) 990-6850 (fax)
tmikrut@aol.com (e-mail)
LOCATION OF PROJECT: (Local municipality)
Lyon Charter Township
PROJECT AREA/DISTRICT AREA:
See Exhibit A
NATURE OF PROJECT:
Acquisition of approximately 4 acres of land adjacent to existing manufacturing facility
and construction and equipping of an approximately 38,500 square foot manufacturing
facility.
EMPLOYMENT CREATED OR RETAINED:
Approximately 50 new permanent jobs created through 2005 (estimated 25 in 2004 and
25 in 2005).
TOTAL PROJECT COST:
$4,500,000
BONDS TO BE ISSUED:
$4,000,000
LETTER OF CREDIT ISSUER:
LaSalle Bank National Association
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.
PRATT & MILLER ENGINEERING AND
FABRICATION, INC.
PA-/“
_ Its: Vice President - Treasurer
Dated:
By:
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
PRATT & MILLER ENGINEERING AND FABRICATION, 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:
The location of the proposed project will be adjacent to P&M's current facility located at
248600 William K. Smith Drive, New Hudson MI. To complete the project, William K.
Smith Drive will be extended (at P&M's expense) to provide access to the new facility
which will be developed on an existing vacant parcel of land. There will be no
requirements affecting the current use of public or private land adjacent to the
development.
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:
Not applicable. Other than the requirement to extend the existing road, as mentioned
above, there will be no other improvements associated with the project to existing
structures.
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:
Not applicable — no improvements.
IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH
STAGE:
The project represents the acquisition of —4 acres of vacant land and the construction of a
—38,500 square foot office/manufacturing facility to be developed adjacent to P&M's
existing facility. .
Site plan approval has been obtained from the Township and site preparation is expected
to commence in September, 2004. Structural work is scheduled to begin in October, 2004
with a March, 2005 completion date. Certificate of occupancy is to be received on or
around March 15, 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 all "usable" space to be utilized for the project.
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 UTILITIES:
None.
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:
The Project will be financed with the proceeds of sale of the Economic Development
Corporation's limited obligation revenue bonds. The bonds will be payable from and
secured by a letter of credit to be issued by LaSalle Bank National Association. The
bonds will be placed or underwritten by LaSalle Capital Markets.
Copy of Letter of Credit commitment letter attached as Exhibit B.
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
4
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:
Pratt & Miller (owner):
Gary Pratt and Tom Mikrut
Quadrants (general contractor):
Bill Clark
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 Project is to be undertaken for the benefit of Pratt & Miller Engineering and
Fabrication, Inc.
)CII. 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
COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC
HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS:
Not Applicable
5
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
XVII. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS
PERTINENT:
Not Applicable
6
EXHIBIT
Legal Description
ETh<
u-1 Cs
WEST PARCEL
PART OF THE SOUTHEAST 1/4 OF SECTION 2, TOWN 1 NORTH, RANGE 7 EAST, LYON TOWNSHIP,
OAKLAND COUNTY, MICHIGAN, DESCRIBED AS BEGINNING AT A POINT LOCATED N 87' 26' 55 6 E
656.21' FROM THE SOUTH 1/4 CORNER OF SECTION 2, TOWN 1 NORTH, RANGE 7 EAST; THENCE
N 01' 52' 14" W 430.52'; THENCE N as" 34' 25" E 146.48'; 'THENCE S 82" 39' 34" E 189.10';
THENCE S 01' 52' 14" E 402.82'; TO THE SOUTH UNE OF SECTION 2; THENCE S87' 26' 55" W
333.02' ALONG THE SOUTH UNE OF SECTION 2, TO HE POINT OF BEGINNING.
CONTAINING 3.250 ACRES (141,575 S.F.),
D 1/4- c 1-k.61-5`r
EAST PARCEL
PART OF THE SOUTHEAST 1/4 OF SECTION 2, TOWN 1 NORTH, RANGE 7 EAST, LYON TOWNSHIP,
OAKLAND COUNTY, MICHIGAN, DESCRIBED AS BEGINNING AT A POINT LOCATED N 87' 26' 55" E
656.21' AND N 01' 52' 14" W 430.52' FROM THE SOUTH 1/4 CORNER OF SECTION 2, TOWN
NORTH, RANGE 7 EAST; THENCE N 01' 52' 14" W 106.24'; 'THENCE S 82 39' 34" E 698.46';
THENCE S 01' 52' 14" E 416.76'; TO THE SOUTH UNE OF SECTION 2; THENCE S 87' 26' 55" W
356.48' ALONG THE SOUTH UNE OF SECTION 2; THENCE N 01' 52' 14" W 402.82'; THENCE
N 82' 39' 34" W 189.10'; THENCE S 85' 34' 25" W 146.48' TO THE POINT OF BEGINNING.
CONTAINING 4.296 ACRES (187,129 S.F.).
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
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L. Brooks Patterson
Oakland County Executive
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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 information
sources mentioned above when questions arise.
Stiltc4?.
Oakland County Planning and Economic Development Services 1200 North Telegraph Road Bldg. 34 East Pontiac, MI 48341 Phone: 248-858-0720 Web: http://www.co.oakland.mi.us/peds •
Exhibit B
LETTER OF CREDIT COMMITMENT LETTER
Kyle G. Freimuth
Vice President
135 South LaSalle Street
Chicago, Illinois 60603
(312) 904-4623
August 13, 2004
Economic Development Corporation of the County of Oakland
RE: $6,300,000 Oakland County Michigan (Preliminary)
Variable Rate Tax-Exempt Industrial Revenue Bonds
(Pratt & Miller Engineering and Fabrication, Inc. Project) Series 2004
Dear Sir or Madam:
Pratt & Miller Engineering and Fabrication ("Pratt") is a valued customer of LaSalle Bank, N.A.
Pratt currently has a 7-figure line of credit with LaSalle in addition to a 7-figure letter of credit
that is used as credit enhancement to existing Oakland County issued Industrial Revenue Bonds.
All of the loans and depository accounts that Pratt has with LaSalle Bank have been handled as
agreed.
Subject to final credit approval, negotiation of mutually beneficial terms and conditions, and
acceptable legal documentation, LaSalle Bank, N.A. is prepared to issue a $4 million letter of
credit on Pratt's behalf for the purpose of supporting the issuance of the above mentioned
Industrial Revenue Bonds. It is anticipated that the letter of credit will be secured by a first
mortgage on the existing property as well as the property to be constructed.
LaSalle Bank, N.A. is a commercial bank offering a wide range of banking and trust services to
its customers in the Chicago metropolitan area, throughout the United States and around the
world. As of December 31, 2003, LaSalle Bank N.A. had total assets in excess of $60 billion.
LaSalle Bank N.A. is a wholly owned subsidiary of ABN AMRO North America which is a
member of the ABN AMRO Group with headquarters in the Netherlands and total worldwide
assets in excess of $500 billion.
We look forward to working with the Economic Development Corporation of the County of
Oakland and Pratt on this financing. If you have any questions, please feel free to contact me at
312-904-4623.
Sincerely,
Kyle G. Freimuth
Vice President
Dated: St-O`i
Its: Vice President - Treasurer
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Pratt & Miller Engineering and Fabrication, Inc. Project)
The undersigned, Pratt & Miller Engineering and Fabrication, 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 Pratt & Miller Engineering and Fabrication, 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 will not have the effect of transferring
employment of more than 20 full-time persons to Lyon Charter Township, Michigan, the
municipality in which the Project will be located, from any other municipality in the State of
Michigan.
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.
PRATT & MILLER ENGINEERING AND
FABRICATION, INC., a Michigan corporation
. By:
•
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
Pratt & Miller Engineering and Fabrication, Inc. Project
The undersigned, Pratt & Miller Engineering and Fabrication, 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 Pratt & Miller Engineering and
Fabrication, 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.
PRATT & MILLER ENGINEERING AND
FABRICATION, INC., a Michigan corporation
p
Its: Vice President - Treasurer
Dated: 7 (
BH 570113v1
GMEconDev \Oakland \BOND\Pratt 2004\Project Plan.doc
By:
Wi7/ o r
G. William Caddell, County Clerk
September 9, 2004 Resolution #04253
Moved by Palmer supported by Potter the resolution be adopted.
AYES: KowaII, Law, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers,
Scott, Suarez, Webster, Wilson, Zack, Bullard, Coulter, Crawford, Douglas, Gregory, Jamian,
Knollenberg. (23)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
I HEREBY APPROVE Tlf FOREGOING RESOLUTION
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
9th, 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 9th day of September, 2004.