Loading...
HomeMy WebLinkAboutResolutions - 2005.12.08 - 27825December 8, 2005 MISCELLANEOUS RESOLUTION #05308 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION APPROVING PROJECT PLAN (THE DETROIT SKATING CLUB, INC. PROJECT) - CHARTER TOWNSHIP OF BLOOMFIELD 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 Charter Township of Bloomfield, 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 voé PROJECT PLAN SUMMARY DESCRIPTION OF THE DETROIT SKATING CLUB. INC. PROJECT OWNER OF PROJECT: The Detroit Skating Club, Inc., a Michigan nonprofit corporation CONTACT PERSON: (Name, address, telephone number) Brian Dilworth Managing Director Detroit Skating Club 888 Denison Court Bloomfield Hills MI 48302 248-332-3000 ext. 103 bdilworth@dscclub.com LOCATION OF PROJECT: (Local municipality) Charter Township of Bloomfield PROJECT AREA/DISTRICT AREA: See Exhibit A NATURE OF PROJECT: improvement and expansion of existing facilities and refinancing of outstanding EDC and bank indebtedness. EMPLOYMENT CREATED OR RETAINED: Approximately 12 created and 72 retained TOTAL PROJECT COST: Approximately S9 million BONDS TO BE ISSUED: .Approximately S9 million, to be issued in one or more series LETTER OF CREDIT ISSUER: Fifth Third Bank THE ECONOMIC DEVELOPMENT CORPORATION OF' rHE COUNTY OF OAKLAND Oakland County, Michigan The Detroit Skating Club, 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 or Prevailing Wa12,es Other PROJECT PLAN SUMMARY DESCRIPTION OF THE DETROIT SKATING CLUB. INC:. PROJECT OWNER OF PROJECT: The Detroit Skating Club, Inc., a Michigan nonprofit corporation CONTACT PERSON: (Name, address, telephone number) Brian Dilworth klanaging Director Detroit Skating Club S8S Denison Court Bloomfield Hills MI 48302 248-332-3000 ext. 103 bd i lvorhTdscclub.coni LOCATION OF PROJECT: (Local municipality) Charter Township or Bloomfield PROJECT AREA/DISTRICT AREA: Sec Exhibit A NATURE OF PROJECT: Improvement and expansion of existing facilities and refinancing of outstanding ED(' and bank indebtedness. EMPLOYMENT CREATED OR RETAINED: Approximately 12 created and 72 retained TOTAL PROJECT COST: Approximately S9 million BONDS TO BE ISSUED: Approximately 59 million, to be issued in one or more series LETTER OF CREDIT ISSUER: Filth Third Bank 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 MISREPRESENTA'FION OR INACCURACY. COULD RESULT IN THE INVALIDATION OF THE ECONOMIC DEVELOPMENT CORPORATION PROCEEDINGS REGARDING THE PROJECT TO WHICH THE PROJECT PLAN PERTAINS, THE DETROIT SKATING CLUB, INC. By: Brian Dilworth Its: Mani.u4ing Director Dated: November 1S. 2005 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING 'HIE DETROIT SKATING CLUB, INC. PROJECT THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER PUBLIC FAC.EL.ITIES WITHIN THE PROJECT DISTRICT AREA; THE LOCATION, CHARACTER, AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRINiATE LAND USES NOW EXISTINCi AND PROPOSED FOR THE PROJECT AREA INCLUDING RESIDENTIAL, RECREATIONAL, COMMERCIAL, INDUSTRIAL EDUCATIONAL AND OTHER USE AND A LEGAL DESCRIPTION OF THE. PROJECT AREA: There are no streets or other public facilities within the project district area. The project area is presently occupied by facilities containing three ice rinks, one Olympic size, for fecreational and educational use, principally figure skating and ice hockey. Legal description of Project Area attached as Exhibit A. H. 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 existing facilities will be upgraded and repaired, existing equipment vill be upgraded, and the existing 100,000 square foot facility will be expanded by 6,000 square feel to accommodate a fitness center, presently contemplated to be operated in conjunction with William Beaumont Hospital (although no agreements have yet been executed in that regard). Some of the upgrades and repairs include replacing the roof, rink heaters, ceilings, cement and stands and .repaving the parking lot. In addition, new equipment to be purchased includes, but is not limited to, dehumidifiers, zambonis. phone system and HVA.C. The construction timetable is described in III below. III. THE LOCATION, EXTENT, CH.ARACTER, AND ESTIMATED COST OF THE IMPROVEMENTS, INCLUDING 'REHABILITATION CONTEMPLATED FOR THE PROJECT AREA, AND AN ESTIMAT.E OF THE TIME REQUIRED FOR COMPLETION: All improvements, as described in II above, will be made on or to the existing facility. Capital improvements to the facility and equipment acquisition will be made beginning in the Fall of 2005 and completed by Fall of 2007. Site preparation for the addition is scheduled to begin in the Fall of 2006, with construction to commence in the Spring of 2007 and be complete in the Fall of 2007, IV. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF CONSTRIJCHON PLANNED. AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE: See III above V. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE: Existing open space around the facility will be affected only to the extent necessary to accommodate the new 6,000 square foot addition. 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: None VIII. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE PROJECT, INCLUDING AT- riis.CHMENT OF A COPY OF THE LETTER OF CREDIT COMMITMENT LETTER: The project is contemplated to be financed with the proceeds of tax-exempt bonds to be issued in one or more series by The Economic Development Corporation of the County of Oakland in the approximate aggregate amount of $9 million. The bonds will be secured by an irrevocable direct-pay letter of credit issued by Fifth Third Bank and underwritten by Fifth Third Securities, Inc. Copy of Letter of Credit commitment letter attached as Exhibit B. [X. 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 5 X. A 1.IST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH JUL MANAGEMEN1 OF TliE PROJECT FOR A PERIOD OF NOT LESS JuAN (ONE) YEAR FROM TI IL DATE OF APPROVAL OF THE PROJECT PLAN: Brian Dilworth, Manning Director Ed Kmit, President, Board of Directors XI. DESIGNATION OF THE PERSON OR PERSONS, NATURAL OR CORPORATE, TO WI.40M THE PROJECT IS TO BE LEASED, SOLD OR CONVEYED AND FOR WI-10SE BENEY.II THE PROJECT IS BEING UNDERTAK.EN, TO "ITIE EX 'T ENT THAT .INFORMATION IS PRESENTLY AVAILABLE: Not Applicable XII. IF THERE 1S NOT AN EXPRESS OR IMPLIED AGREEMENT WITH A PERSON OR PERSONS, NATURAL OR CORPORATE, THAT THE PROJECT WIT I BE LEASED, SOLD, OR CONVEYED TO THOSE PERSONS, THE PROCEDURES FOR BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECI UPON ITS COMPLETION: Not Applicable .X1.11. ESTIMATES OF THE NUMBER OF PERSONS RESIDING IN THE PROJECT AREA AND THE NUMBER OF FAMILIES AND INDIVIDUALS TO BE DISPLACED. IF OCCUNED RESIDENCES ARE DESIGNATED FOR ACQUISITION AND CLEARANCE, INCLUDE SURVEY OF THE FAMILIES AND INDIVIDUALS TO BE DISPLACED, INCLLIDING THEIR INCOME AND RACIAL COMPOSITION, A STATISTICAL DESCRIPTION OF 71HE HOUSING SUPPLY IN THE COMMUNITY, INCLUDING THE NumBER. OF PRIVA.TE AND PUBLIC uNrrs IN EXISTENCE OR UNDER CONSTRUCTION, THE CONDITION OF THOSE IN 'EXISTENCE, T.HE NUMBER OF OWNER-OCCUPIED AND RENTER-OCCUPIED UNITS, THE ANNUAL RATE OF 6 TURNOVER OF THE. VARIOUS TYPES OF HOUSING AND THE RANGE OF RENTS AND SALE PRICES, AN ESTIMATE OF THE ToT AL DEMAND FOR HOUSING IN THE COM.MUNIFY, AND TI iF ESTIMA'f ED CAPACITY OF PRIVATE AND PUBLIC HOUSING AV.AILABLE TO DISPLACED FAMILIES AM) INDIVIDUALS: Not Applicable 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 I3Y THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSEMENT OF EXPENSES, INCLUDING LITIGATION EXPENSES AND EXPENSES INCIDENT 10 11-11 'TRANSFER OF TITLE, IN ACCORDANCE WITH THE STANDARDS AND PROVISIONS OF 'FITE FEDERAL UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970, 42 U.S.C. 460i 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 EXP.E.NSES -PC) DISPLACED PERSONS; Not Applicable "XVII, OTHER. MATERIAL AS THE ECONOMIC DEVELOPMENT CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS 'PERTINENT: Not Applicable 8 Exhibit A PROJECT AREA LEGAL DESCRIPTION Land in the Township of Bloomfield. County of Oakland. State of Michigan, described as fellows: Lots 7 through 11 inclusive, Bloomfield Industrial Park Subdivision, according to the recorded Plat thereof, as recorded in Liber 126, of Plats, Pages 1 and 2. Oakland County Records, and that part of the Southeast 1/4 of Section 5, Town 2 North, Range 10 East. Bloomfield Township. Oakland County, Michigan, described as: Commencing at the Southeast corner of said Section 5: thence North 89 degrees 53 minutes 21 seconds West, 344.45 feet along the South line of said Section 5: thence North 00 degrees 02 minutes 59 seconds East, 232.81 feet; thence North 58 degrees 23 minutes 55 seconds West. 462.47 feet: thence North 00 degrees 02 minutes 33 seconds West, 776.49 feet to the Point of beginning: thence South 89 degrees 57 minutes 27 seconds West, 400.00 feet: thence North 00 degrees 02 minutes 33 seconds West, 299.59 feet; thence North 89 degrees 57 minutes 27 seconds East, 400.00 feet; thence South 00 degrees 02 minutes 33 seconds East, 299.59 feet to the point of beginning. Parcel P19-05-476-088 Exhibit B LETTER OF CREDIT COMMITMENT LETTER B- 1 By: Exhibit C COMPANY CERTIFICATE REGARDING TRANSFER OF EMPLOYMENT (The Detroit Skating Club, Inc. Project) The undersigned, The Detroit Skating Club, Inc., a Michigan nonprofit corporation (the "Company"), hereby certifies to The Economic Development Corporation of the County of Oakland (the "EI)C") as follows: 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) oldie Economic Development Corporations Act, Act Na. 338 olthe 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 Detroit Skating Club, 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 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 the Charter Township of Bloomfield, 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. THE DETROIT SKATING CLUB, INC., a Michigan nonm1191corporation Brian Dilworth Its: Maniwing Director Dated: November 18, 7005 C -1 Exhibit D COMPANY CERTIFICATE REGARDING PAYMENT OF PREVAILING WAGES (The Detroit Skating Club. Inc. Project) The undersigned, The Detroit Skating Club, Inc., a Michigan nonprofit corporation (the "Company"), hereby certifies to The Economic Development Corporation of the County of Oakland (the "EDC") as follows: 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 Detroit Skating Club, 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 detennined pursuant to Act No. 166 of the Michigan Public Acts oil965, as amended. THE DETROIT.SKATING CLUB, INC. By: Brian Dilworth Its: Managing Director Dated: November 18, 2005 1311 6142870 THE DETROIT SKATING CLUB, INC. CREDIT, UNDERWRITING AND REMARKETING SERVICES TAX-EXEMPT VARIABLE RATE DEMAND REVENUE BONDS, LETTER OF CREDIT FACILITY I: Issuer: Obligor: Par Amount: Purpose: Security Structure: Security for Bonds: Letter of Credit Term: Collateral: Bond Underwriter: Remarketing Agent: Bond Trustee: Bond Underwriter & Bank Counsel: The Detroit Skating Club, Inc. The Detroit Skating Club, Inc. Not to exceed $8,800,000 Letter of Credit to include an interest coverage component of 10% for 45 days (monthly interest payments) or 10% for 98 days (quarterly interest payments). Retire current $4,045,000 tax-exempt bond debt owed by Detroit Skating Club and balance of the issuance to be used to renovate the facilities of The Detroit Skating Club, Inc. in Bloomfield Hills, Michigan. Letter of Credit Enhanced Non-Taxable Variable Rate Demand Bonds Irrevocable Direct Pay Letter of Credit issued by Fifth Third Bank (LOC) will be used for the Par Amount of Bonds, plus 45 days interest coverage at 10% (monthly interest payments) or 98 days interest coverage at 10% (quarterly interest payments). Required payment amount will be amortized over 20 years. The original term of the Letter of Credit commitment will be at the Borrower's option: 3 or 5 years. First real estate mortgage position on real estate assets with adequate value to secure the letter of credit at an 80% advance ratio. Fifth Third Securities, Inc. Fifth Third Securities, Inc. The Bank of New York Trust Company, N.A., Detroit, Michigan. Law firm approved by the Borrower, Fifth Third Securities, Inc., and Fifth Third Bank. FACILITY i CONT: Letter of Credit Annual Fee: Letter of Credit Commitment Fee: Letter of Credit Draw Fee: Rate tiered to Debt to Net Worth Ratio as indicated below. Rate is a percentage of the outstanding Letter of Credit amount. Payable annually in advance. Three Year Letter of Credit Commitment 85 basis points (0.85%) Five-Year Letter of Credit Commitment 90 basis points (0.90%) $11,500, payable at closing. $100 per draw. See attached Bond term sheet for Bond interest rate options, up-front and annual bond issuance fees, underwriter's discount and remarketing fee. Loan Documentation: The LOC will be evidenced by a Letter of Credit Reimbursement Agreement which will include the terms and financial covenants, and shall be further supported by any mortgage, security agreement, financing statements, and such other documents as shall be required by Fifth Third Bank. The form and substance of the loan documentation must be satisfactory to Fifth Third. FACILITY II: Borrower: Loan Amount: The Detroit Skating Club, Inc. $500,000 secured revolving line of credit. Purpose: Support the operations of The Detroit Skating Club, Inc. Interest Rate: Fifth Third Bank's Prime Rate (currently 7.00%), floating. Term: The line of credit will mature 12 months from date of closing. Payments: Monthly interest payments. Collateral: First lien position on all assets of The Detroit Skating Club, Inc. Bank Fee: $425.00 loan processing fee with automatic deduction of monthly payments. Additional requirements applying to proposed credit facilities. Covenants: - Debt Service Coverage of 1.15:1.00, measured annually. - Total Liabilities to Net Worth not-to-exceed 4.45:1.00, measured annually. - All debt cross-liened and cross-defaulted. Closing Costs: Customer to reimburse bank for all out-of- pocket costs, including legal fees, if any. Additional Requirements: The Borrower will agree to provide the Bank the following (at the Borrower's expense): - Satisfactory background investigation of The Detroit Skating Club, Inc. - Certified real estate appraisals on the property securing the letter of credit. The amount of the letter of credit will be limited to the lesser of 80% of the appraised value or $8,800,000. - Environmental screening on the properties securing the letter of credit from a firm acceptable to the Bank. The results and content of the report must be reviewed and approved by the Bank prior to funding. Additional Requirements cant: Mortgage title insurance on the properties securing the letter of credit with all encroachments and exceptions acceptable to the Bank. Survey on the properties securing the letter of credit. Any other information that may be reasonably requested by the Bank. Accounts: Borrower to maintain its deposit accounts with Fifth Third Bank. Reporting Requirements: - Annual audited consolidated financial statement of The Detroit Skating, Club, Inc. - Quarterly company prepared financial statements of The Detroit Skating, Club, Inc. - Annual Projections for The Detroit Skating Club, Inc. - Annual Compliance Report. This outline is for discussion purposes only and does not represent the Bank's commitment to lend. This term sheet is intended as an outline and does not purport to summarize all the terms, conditions, representations, warranties, and other provisions to be mutually agreed upon and contained in definitive loan documentation. I HEREBY APPROVE THE JOREGOING RESOLUTION /21/ Resolution #05308 December 8, 2005 Moved by Palmer supported by Jam ian the resolution be adopted. AYES: Jamian, KowaII, Long, Melton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Woodward, Zack, Bullard, Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett. (22) NAYS: None. (0) A sufficient majority having voted in favor, the resolution was adopted. e""' STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, 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 December 8, 2005, 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 8th day of December, 2005. RutitttitisYn, County Clerk