HomeMy WebLinkAboutResolutions - 2005.03.10 - 27905REPORT (misC. 105038) March 10, 2005
BY: General Government Committee, William R. Patterson, Chairperson
IN RE: MR #05038 — BOARD OF COMMISSIONERS — SUPPORT FOR SENATE
BILL 118 AMENDING THE STATE CONVENTION FACILITY DEVELOPMENT
ACT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The General Government Committee, having reviewed Miscellaneous Resolution
#05038 on February 28, 2005, reports with a recommendation that the resolution be
adopted.
Chairperson, on behalf of the General Government Committee, I move
acceptance of the foregoing report.
GENERAL GOVERNMENT COMMITTEE
General Government Committee Vote:
Motion carried unanimously on a roll call vote.
Miscellaneous Resolution #05038
BY: Commissioner Sue Ann Douglas, District #12
RE: Board of Commissioners - Support for Senate Bill 118 Amending the State
Convention Facility Development Act
TO: Oakland County Board of Commissioners
Chairperson', Ladies and Gentlemen:
WHEREAS Senate Bill 118 was introduced to amend Sections 3, 10 and 12 of Public Act
106 of 1985 (MCL 207.623 et seq.), entitled the State and Convention Facility
Development Act; and
WHEREAS since 1985, the Detroit Tr-County (Oakland, Wayne and Macomb)
Accommodations Tax has been imposed on hotels and motels, with the proceeds
earmarked for the Convention Facility Development Fund; and
WHEREAS pursuant to Public Act 106, these hotel/motel taxes have been collected in the
tri-county region to pay for the construction and renovation costs of Cobo Hall. In 2002,
Oakland County forwarded $7.4 million to Detroit for debt service payments on Cobo Hall;
and
WHEREAS there is also a 4% tax on all liquor sold for consumption in the state that is
placed in the State Convention Facility Development Fund to cover any portion of the Cobo
Hall debt that is not covered by the hotel tax.
WHEREAS during the life of the liquor tax, Oakland County businesses have been required
to collect $55.1 million to help pay Cobo Hall debt; and
WHEREAS, since Fiscal Year 2000, the Hotel Tax proceeds have been sufficient to cover
the entire annual Cobo debt service. The liquor tax has thus become a windfall for the 80
counties outside of the metropolitan area; and
WHEREAS the region, however, has no input into the bonding decisions of Cobo Hall
facilities. As of June 30, 2003, the outstanding Cobo Hall debt of $123 million was funded
through 2011. The City of Detroit refinanced the Cobo Hall bonds for an additional $36.9
million in debt, extending the debt maturity schedule to 2015; and
WHEREAS provisions in Senate Bill 118 would require a local governmental unit that has
pledged revenue for the payment of bonds under this act shall not refund a bond or
obligation under this act unless it is for a lesser amount; and
WHEREAS Senate Bill 118 also returns these tax revenues to the county in which they
were raised by providing that distributions from the Convention Facility Development Fund
shall be distributed to each qualified county in the same proportion of the amount collected
from all qualified counties; and
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NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
hereby supports Senate Bill 118 to amend Public Act 106 of 1985 (MCL 207.623 et seq.),
entitled the State and Convention Facility Development Act and the provision to prevent
the refunding of Convention Facility Bonds for more than the amount owed.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners requests
the Oakland County Clerk to forward copies of this adopted resolution to Governor
Granholm, the Senate Committee on Finance, the Oakland County Delegation to the State
Legislature, the Michigan Association of Counties, and Oakland County's Legislative
Lobbyists.
Chairperson, we move the adoption of the foregoing Resolution.
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Resolution #05038 February 17, 2005
The Chairperson referred the resolution to the General Government Committee. There were no objections.
Resolution #05038 March 10, 2005
Moved by Molnar supported by Melton the resolutions on the Consent Agenda, be adopted (with
accompanying reports being accepted).
AYES: Coleman, Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, KowaII, Long, Melton,
Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Wilson,
Woodward, Zack, Bullard. (24)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolutions on the Consent Agenda, were adopted (with
accompanying reports being accepted).
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 March 10, 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 10th day of March, 2005. cell ef arkego
Ruth Jol.;;;e: