HomeMy WebLinkAboutResolutions - 2006.05.11 - 28238May 11, 2006
MISCELLANEOUS RESOLUTION 106089
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (PROGRESSIVE METAL MANUFA=RING COMPANY PROJECT) -
CITY OF FERNDALE
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 Ferndale, 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 a unanimous roll call vote with Woodward absent
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Progressive Metal Manufacturing Company 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
Progressive Metal Manufacturing Company Project
OWNER OF PROJECT: Progressive Metal Manufacturing Company, a Michigan
corporation
CONTACT PERSON: Eric Borman
1300 Charming Street
Ferndale, MI 48220
Tel.# (248) 546-2827
PROJECT LOCATION:
PROJECT AREA/
DISTRICT AREA:
NATURE OF PROJECT:
EMPLOYMENT CREATED
OR RETAINED:
TOTAL PROJECT COST:
BONDS TO BE ISSUED:
City of Ferndale
See Exhibit A
The Project consists of the acquisition and installation of
machinery and equipment to be located within the Company's
existing manufacturing facility. The Company also intends to
perform certain renovations to its existing facility. The
assets comprising the Project will be owned and operated by
Progressive Metal Manufacturing Company.
20 new jobs are expected to be created and 70 existing jobs will
be retained.
$4,500,000
$4,000,000
LETTER OF CREDIT ISSUER
OR BOND PURCHASER: Comerica Bank
Dated:
P_ROJECT 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.
Progressive Metal Manufacturing Company
By: 2_,
g7e-
2
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
Progressive Metal Manufacturing Company Project
A. 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 Project Area is comprised of the Company's existing manufacturing facility located at 1200,
1300 & 1460 Channing Street, Ferndale, Oakland County, Michigan. All three parcels are
connected. The facility is located directly off of Channing Street and the location is surrounded
by other industrial/commercial buildings to the North and South, a railroad track to the West, and
residential properties to the east of the Channing and Wanda Street intersection.
The location of the Project Area is set forth in the legal description attached hereto.
There will be no alterations of the existing improvements in the Project Area, other than
interior building renovations and interior building improvements which may be ancillary
to the installation of the machinery and equipment comprising the Project.
Legal description of Project Area attached as Exhibit A.
B. 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:
There will be no alterations of the existing improvements in the Project Area, other than
interior building renovations and interior building improvements which may be ancillary
to the installation of the machinery and equipment comprising the Project.
C. 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:
Description of Project Costs Estimated Amounts
Machinery and Equipment 4,200,000
Building Renovations 500,000
Issuance Costs 135,000
TOTAL COSTS $4,835,000
3
D. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
Not Applicable
E. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
There will be no change to areas left as open spaces in the Project Area.
F. 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:
The Economic Development Corporation of the County of Oakland (the "EDC") will not
sell, donate, exchange or lease any portion of the Project Area to or from the
municipality.
G. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
No changes in zoning, streets, street levels, intersections or utilities as a result of the
Project.
H. 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 through the issuance and sale of The Economic
Development Corporation of the County of Oakland industrial revenue bonds in an
aggregate principal amount not to exceed $4,000,000. The bonds will be structured as
variable rate demand obligations secured by a letter of credit issued by a commercial
bank. The Borrower has obtained a commitment from Comerica Bank to provide a letter
of credit to secure the bonds (see Attachment B) and by Comerica Securities to act as
placement agent in the offering and sale of the bonds.
The bonds will not be a general obligation of any governmental unit and will not be
payable from tax revenues or other funds of either the County of Oakland or the State of
Michigan.
The proceeds of the Bonds will be lent to the Applicant pursuant to a loan agreement by
and between the Applicant and the EDC and will be used by the Applicant and the EDC
for the purpose of financing the costs of the Project and certain eligible issuance costs
4
relating thereto. In accordance with the loan agreement, the Applicant will be obligated
to make payments sufficient to make timely payments of principal and interest on the
Bonds. The Bonds will not be a general obligation of the EDC but will be secured by a
pledge of revenues in the loan agreement.
I. 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 C
J. 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:
Eric Borman - President
David Laporte - CFO
K. 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 being undertaken for the benefit of Progressive Metal Manufacturing
Company and its shareholders and will be owned and operated by Progressive Metal
Manufacturing Company. The Project is not expected to be sold or conveyed to any
other party.
L. 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
M. 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
5
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
N. A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT
AREA:
Not Applicable
0. 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
P. 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
Q. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS
PERTINENT:
Not Applicable
6
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
Land in the City of Ferndale, County of Oakland, State of Michigan
02/13/2006 13:18 313-222-5759 MMB I METRO E PAGE 02/02
LEGAL DESCRIPTION
Situated in the City of Ferndale, Oakland County, Michigan, described as:
PARCEL
The East 5 feet of Lot 123, all of Lots 124., 125 and 125 and the West 25 feet of
Lot 127, of SOMERSET SUSOlVISION, of parr of the East 112 of the Southwest 114
of Section 35, Town 1 North, Range 11 East. City of Ferndale, Oakland County,
Michigan, according to the plat thereof as recorded in fiber 13 of ptats, page
13, of the Oakland County Records, lying Easterly of a line extending from a
point on the South fine of Lot 165, in said Somerset Subdivision, distant
Westerly 25,05 feet from. the Southeast corner of said Lot 165, in a
Northwesterly direction to a point on the North line of said Lot 122, distant
Westerly 24.51 feet from the Northeast corner of said Lot 122 and any portion of
vacated Charming (Evelyn) Avenue contiguous thereto ., also including the North
1/2 of the vacated public alley lying to the South thereof.
Parcel Identification No -.-2.5-35-328-:011. ALSO COVERS OTHER LAND
Commonly known as: 1300 CHANNING.
PARCEL 11: .
The Easterly 5 feet of Lot 127 and ail of Lots 128 through 134, both inclusive,
and Lots 96, 97, 98, 99, 100 and unvacated part of Lots 101, 102, 103, 122 and
123, excepting the East 5 feet of the South 100 feet of Somerset Subdivision,
including any portion of vacated Channing (Evelyn) Avenue contiguous thereto,
also including the North 112 of the vacated public alley lying to the South
thereof and the South 1/2 of the vacated public alley lying to the North
thereof,
Parcel Identification No. 25-35-327-013. ALSO COVERS OTHER LAND
Commonly known as: 1200 CHANNING.
PARCEL Ill:
Lots 135 through 140, both inclusive, including North 1/2 of vacated public
alley to the South, SOMERSET SUBDIVISION, according to the plat thereof as
recorded in liber 13, page 13, of Plats, Oakland County Records.
Parcel identification No. 25-35-328-010.
Commonly known as: 1450 CHANNING.
Michael D. Mal
Vice President
Exhibit B
LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER
04/10/2006 16:12 313-222-5759
Opmerica Bonk
MMB I METRO E PAGE 02/02
IMMik
P.O. Box 7500o
Detroit, tieichigern 48275
April 11, 2006
Mr. Eric 13011112/1
President
Progressive Metal Manufacturing Company
1300 Chaaming Street
Ferndale, MI 48220
Dear Eric,
We are pleased to confirm that Comerica Bank (Bank) has approved a Letter of Czedit
("LOC') to support an Economic Development Corporation of the County of Oaldand
("EDC”) tax exempt bond financing of up to $4,000,000 principal amount for machinery and
equipment and renovation and improvements to your existing facility, all to be placed in service
within the City of Ferndale, Michigan and operated by Progressive Metal Manufacturing
Company (the "Obligor). This letter is Bank's offer to commit to said LOC to support such
financing, subject to the terms and conditions described in the approval Ind to documentation
satisfactory in form and content to Bank, Bmzel Long, PC, as Bond Counsel, the BDC, and
subject to an appropriate volume cap allocation by Michigan Department of Treastuy.
This offer to commit shall expire at Bank's option if (a) Bank has not received Obligor's
acceptance by the Acceptance Date, or (b) there is a rnatzrial adverse change in the financial
condition and affairs of Obligor from that represented to Bank.
We will help in any way we can and look forward to working with you on this Project. Please
call me at any time if there are any questions on the content of this letter or the contemplated
transaction.
Very truly yours,
COMERICA BANK
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Progressive Metal Manufacturing Company Project)
The undersigned, Progressive Metal Manufacturing Company, 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 Progressive Metal Manufacturing Company 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 Ferndale, Michigan, the municipality in which the Project will be
located, unless the Company has first obtained a consent to the proposed transfer of
employment from the governing body of each municipality from which employment is to be
transferred.
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.
Progressive Metal Manufacturing Company,
a Michigan corporation
By; 474,
Its: e
Dated:
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Progressive Metal Manufacturing Company Project)
The undersigned, Progressive Metal Manufacturing Company, 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 Progressive
Metal Manufacturing Company 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,
Progressive Metal Manufacturing Company
By:
Its: e
Dated:/I,'—OC
D-1
Resolution #06089 May 11, 2006
Moved by Coulter supported by Rogers the resolutions (with fiscal notes attached) on the Consent Agenda
be adopted.
AYES: Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, Kowa'', 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 in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted.
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 May 11, 2006, 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 11th day of May, 2006.
Ruiti$4011sYn, County Clerk