HomeMy WebLinkAboutResolutions - 2021.08.05 - 34787MISCELLANEOUS RESOLUTION #21321 August 5, 2021
BY: Commissioner William Miller, Chairperson, Economic Development and Infrastructure Committee
IN RE: FACILITIES MANAGEMENT —APPROVAL AND ACCEPTANCE OF PURCHASE AGREEMENT
TO SELL COUNTY OWNED PROPERTY ON BROWN ROAD -AMENDMENT #1
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS in MR #21089, the Oakland County Board of Commissioners approved a Purchase Agreement
for the sale of 1700 Brown Road for $4,001,000 to General Development Company, LLC (GDC); and
WHEREAS GDC is nearing the completion of its due diligence period and requested a $1,500,000 reduction
in the purchase price due to the results of the due diligence investigations; and
WHEREAS the due diligence investigations identified costs associated with numerous improvements
needed before developing the Property, which improvements and costs are explained in the attached
Memorandum; and
WHEREAS the Department of Facilities Management believes most of the improvements were, or should
have been, anticipated by GDC before bidding, but some could not have, and others are likely higher than
anticipated; and
WHEREAS given the nature of certain improvements, the Department of Facilities Management
recommends a $301,000 reduction in the purchase price, resulting in a new purchase price of $3,700,000;
and
WHEREAS the revised purchase price of $3,700,000 is still higher than the second bid to purchase the
Property received in March 2021, which was $3,500.000; and
WHEREAS the attached Amendment #1, prepared and reviewed by the Department of Corporation
Counsel, reduces the purchase price, and removes certain other contingencies; and
WHEREAS the Department of Facilities Management recommends that the Board of Commissioners
approve and authorize the attached Amendment #1 to the Purchase Agreement.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves and
authorizes the attached Amendment #1 with GDC for the revised purchase of $3,700,000 and directs its
Chairperson to sign Amendment #1.
BE IT FURTHER RESOLVED the Chairperson is authorized to sign all documents associated with and to
effectuate the attached Amendment #1.
BE IT FURTHER RESOLVED that the net proceeds are to be receipted into the Building Improvement Fund
(#40100) and the use of Building Improvement Fund resources requires a separate project resolution.
BE IT FURTHER RESOLVED that no budget amendment is required at this time.
Chairperson, on behalf of the Economic Development & Infrastructure Committee, I move the adoption of the
foregoing resolution.
Commissioner William Miller, District #14,
Chairperson, Economic Development &
Infrastructure Committee
ECONOMIC DEVELOPMENT AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried on a roll call vote with Charles absent and Spisz voting no.
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
1700 Brown Road, Auburn Hills Due Diligence
7n12021
Item# Item
Date Scheduled
Notes
Approximate
Completed
Extraordinary costs
1 Soil Borings
03/31/21
Pursuamto borings number 1,2, and 3, there is additional fill that is goingto be required to be
$ 75,000.00
removed forfoundarvoo work or extra deep foundations. Thisfill will need to be removed in order
to getto native ground for bearing capacity.
2 Existing Buildings Demolition
Demo all existingstructures per Blue Stars Quote attached.
$ 320,000.00
3 Site Demolition
Remove all existing chain linkfence, asphalt, concrete, curb and gutter, storm sewer and water
$ 85,000.00
main per D&R's quote attached.
4 Environmental/Asbestos
Environmental provided bythe county did not mention asbestos. Additional environmental done
$ 46,800.00
by General Development/Applied Environmental. Asbestos was found. See attached report and
asbestos abatement approximate price attached.
5 Phone Call with OHM to discuss to onsite
04/19/21
Sanitary Une needs to be relocated in order to develop the site. Both the main at the front ofthe
$ 221,500.00
Utildies/Relocating
site as well as the lead that cuts across the middle ofthe site that feeds the Rousch Building.
6 DTE Power
04/29/21
DTE Planner's Contact Info:
$ 29,000.00
Tony Billinger
tony.billinger@dteenergy.com
(248)427-2981
Met on site with DTE on 4/29. Primary power is being ran from Brown Road. DTE is confirmingthat
we can re-route the existing power that is tied hack to the Cell tower at the rear of this site so that
we may eliminate all other poles that run north south through the site.
Still waiting on DTE 5/17/21
7/1- DTE has verbally quoted $79,000 for pole removal
6/15 - DTE has stated in their letter that they do not have enough power available to adequately
service this site from their existing ci rcu R. Although they have not provided us a quote to upgrade
their service equipment, from past experience this cost could be from 5250,00D up to $1,000,000.
7/2- Moh amad from DTE confirmed on 7/2 that the new project shown on the PDF attachment
on the north side of Brown Road will use up the remainder of the power on the circult serving the
area. Therefore we are antin cipating a $500,000 cost for a new dreu it.
1700 Brown Road, Auburn Hills Due Diligence
7/1/2021
Item# Item Date Scheduled Notes Approximate
E#raordina�( Costs
7/2- Mohamad from DTE confirmed on 7/2 that the new project shown on the PDF attachment $ 5
0
b,000.0(
on the north side of Brown Road will use up the remainder of the power on the circuit serving the
area. Therefore we are antincipating a $5D0,000 cost for anew circuit.
7 Consumers Gas 04/15/21 Confirmed on 4/15 with Benjamin Lewis that we can get 2 PSI at this site
8 New Curb Cut on Brown Road West of Traffic Signal 04/19/21 Curb Cut on Brown Road would need to be right turn in, right turn out ( NO LEFT TURNS) unless $ 255,000.00
per RCOC a new center left turn lane on Brown Road is Installed. Bm ce meeting with OHM (City of
Aubum Hills Engineering Consultant) on 5/5 to determine issues and viablIrty of adding renter
lane.
Also center Ian a will be required.
Priced out work with ASI.
9 Current Driveway off Brown Rd East of Traffic Signal Current drive is half on our property and half on RCOC property. RCOC knows we need them to -
deed us the land for the whole road and we will swap the rest ofthe panhandle land (see attached
sketch). Waiting on RCOC to decide ffthey will do this. Have Oakland County and Auburn H1115 City
Manager working on this.
Letter sent with proposal to Matt VWIIson at RCOC on 5117/21
7 1- Matt Willson from RCOC finalizing easement agreement.
10 Dynamic Fire Sprinklerto complete a flow test 04/14/21 esults came back at 90 PSI -
11 THle Work Review Letter 05/05/21 To be sent out on May Sth. Waiting on county 5/17/21. -
Tots I� $ 1,532,300.00
Completed
AMENDMENT #1 - PURCHASE AGREEMENT
THIS AMENDMENT #1 ('Amendment") made and entered into ,
('Effective Date") by and between General Development Company LLC, Two Towne Square,
Suite 850, Southfield, Michigan, 48076, on behalf of an entity to be formed, ('Purchaser") and the
COUNTY OF OAKLAND, a Constitutional and Municipal Corporation, 1200 N. Telegraph Road,
Pontiac, Michigan 48341 ("Seller"), for the purchase of 1700 Brown Road, Auburn Hills,
Michigan 48326, with a Tax Identification Number of 14-03-100-028 ("Premises").
The Parties entered into a Purchase Agreement on March 25, 2021 for the purchase of the Premises
('Agreement").
Pursuant to the Agreement, on May 12, 2021, the Parties extended the Inspection Period to July
31, 2021.
Purchaser is nearing the completion of its due diligence period and requested a reduction in the
purchase price due the results of the due diligence investigations.
Due to the nature of the results of the due diligence investigations and in consideration of the
mutual covenants contained herein, the Parties agree to amend the Purchase Agreement as follows:
Section 1.1 - Purchase Price. Section 1.1 of the Agreement is entirely deleted and
replaced with the following: "Subject to the adjustments and prorations provided for in
this Agreement, the purchase price of the Premises shall be Three Million, Seven Hundred
Thousand ($3,700,000.00) payable as set forth in this Agreement."
End of Inspection Period and Waiver of Contineencies. Notwithstanding any other
provisions contained in the Agreement, upon execution of Amendment #1 the Inspection
Period shall end and Purchaser waives and deems satisfied all contingencies contained in
the Agreement (subject to the Deposit being refundable to Purchaser as defined in Section
3 herein), except for the contingencies contained in Section 3 of this Amendment #l.
Easement with Road Commission. At this time, Purchaser is negotiating an easement
(the "Easement") with the Board of Road Commissioners for Oakland County ("Road
Commission") related to the entrance and entrance drive to the Premises from Brown Road.
The Inspection Period shall automatically be extended beyond July 31, 2021 (the Easement
Contingency Period") solely for Purchaser to obtain the Easement with terms acceptable
to Purchaser, in Purchaser's sole and absolute discretion (the "Easement Terms"). If the
Road Commission provides Purchaser with the Easement subject to the Easement Terms
and the Road Commission approves such Easement (and provides an executed and
recordable easement), then: (1) Purchaser shall waive the Easement Contingency Period,
(2) the Deposit shall become non-refundable subject to a Seller default, and (3) Purchaser
shall proceed to close the transaction pursuant to Section 6 of the Agreement. In the event
the Road Commission does not provide Purchaser the Easement or provide the Easement
Terms acceptable to Purchaser, then upon notice by Purchaser to Seller of such event: (1)
the Deposit shall be immediately returned to Purchaser, (2) the Agreement shall terminate
1700 BROWN ROAD, AUBURN HILLS, MI
AMENDMENT HI FINAL VERSION
upon the date notice is sent by Purchaser, and (3) the Parties hereto shall have no further
obligation to the other party, except for any obligations designated in the Agreement to
survive the Agreement termination. If the Road Commission does not approve the
previously described Easement within Ninety (90) calendar days from the Effective Date,
then Seller (through its Director of Facilities Management or its successor), in its sole
discretion, may terminate the Agreement subject to the following: (t) Purchaser waiving
its rights under the Easement Contingency Period, or Easement Terms and (2) Purchaser
willing to close on the transaction without the Easement.
4. Entire Agreement. Any and all provisions set forth in the Agreement shall remain in full
force and effect and shall not be modified, diminished, changed, or altered by this
Amendment #l, except as expressly provided herein.
1700 BROWN ROAD, AUBURN FULLS, NB 2
AMENDMENT#1 FINAL VERSION
SELLER:
County of Oakland a Michigan Municipal
and Constitutional Corporation
By: David T. Woodward, Chairperson
Oakland County Board of Commissioners
The Agreement was acknowledged before me in Oakland County, Michigan on this
day of , 20 by
, Notary Public
Oakland County, Michigan
Acting in Oakland County, Michigan.
My Commission expires:
PURCHASER(S):
The Agreement was acknowledged before me in Oakland County, Michigan on this
day of 20 by
, Notary Public
Oakland County, Michigan
Acting in Oakland County, Michigan.
My Commission expires:
1700 BROWN ROAD, AUBURN HILLS, MI
AMENDMENT#1 FINAL VERSION
Resolution #21321 August 5, 2021
Moved by Miller seconded by McGillivray the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Kowall, Kuhn, Long, Luebs, Markham, McGillivray, Miller, Moss, Nelson, Powell, Weipert,
Woodward, Cavell, Charles, Gershenson, Gingell, Jackson, Kochenderfer. (18)
NAYS: Spisz. (1)
A sufficient majority having voted in favor, the resolution was adopted.
r
I HEREBY APPROVE THE FOREGOING RESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 August 5, 2021,
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 Circuit Court at Pontiac,
Michigan this 5th day of August, 2021.
,�'
Lisa Brown, Oakland County