HomeMy WebLinkAboutResolutions - 2021.10.28 - 34978tOAKLANUF-
COUNTY M I CHI GAN
BOARD OF COMMISSIONERS
October 28, 2021
MISCELLANEOUS RESOLUTION #21-437
Sponsored By: William Miller III
IN RE: Sakura Novi -City of Novi Project
Chairperson and Members of the Board:
WHEREAS the Oakland County Board of Commissioners, pursuant to and in accordance with the provisions
of the Brownfield Redevelopment Financing Act. being Act 381 of the Public Acts of the State of Michigan of
1996, as amended (the "Act"), have established a redevelopment of Brownfields Redevelopment Authority and
Board known as the Oakland County Brownfield Redevelopment Authority (OCBRA) to facilitate the cleanup
and redevelopment of Brownfields within Oakland Countv's coimnuunities: and
WHEREAS the Sakura Novi site in the City of Novi (tile "Property ") is defined as a facility tinder state statute:
and
WHEREAS a Brownfield clean up and redevelopment plan (the "Plan") has been prepared to restore the
environmental and economic viability of this parcel: and
WHEREAS pursuant to OCBRA by-laws, a local committee has been appointed, participated in discussions
regarding the proposed plan and prgiect, reviewed the plan, and recommends its approval: and
'WHEREAS the City of Novi has reviewed the Plan, and has been provided a reasonable opportunity to express
views and recommendations regarding the Plan in accordance with Sections 13 (13) of the Act, and has
concurred with the provisions of the Plan: and
WHEREAS the OCBRA, pursuant to and in accordance with Section 13 of tine Act, has approved a resolution
(attached) adopting the Plan, and recommends the adoption of the Plan by the Oakland County Board of
C'onnuissioners to be carried out within the City of Novi relating to the Sakura Novi redevelopment in the City
of Novi; and
WHEREAS the developer, Sakura Novi Company, will assume Brownfield related eligible activity
development costs estimated at S850,000 Costs include baseline envirou niental assessments, asbestos
abatement, vapor barrier installation and demolition activities: and
WHEREAS the cost of these eligible plan activities will be reimbursed to the developer by the OCBRA from
tax capture based on the incremental difference on the taxable value of the property over a five (5) year period.
otal tax capture consists of the following:
Developer Reimbursement $850,000
Zocal Brownfield Revolving Fund S150,000
,State Revolving Fund S149,083
'OCBRA Adinin Fees $25,000
� otalTax Captre $1,174,083
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
adopt the Brownfield Redevelopment Plan to be carried out within the City of Novi, relating to the Sakura Novi
redevelopment,
BE IT FURTHER RESOLVED that a public hearing on the adoption of the Brownfield Plan approved by the
Oakland County Brownfield Redevelopment Authority for the Sak-ura Novi redevelopment in the Charter City
of Novi shall be held on October 29, 2021, at 6:00 PM in the Oakland County Board of Commissioners'
Auditorium, 1200 North Telegraph Road, Pontiac. Michigan,
BE IT FURTHER RESOLVED no budget amendment is required as the budget already includes tat capture
offsets.
Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William hiller I1I.
6z", d Date: October 29, 2021
David Woodward. Commissioner
Date: November 02, 2021
Hilarie Chambers, Deputy County Executive H
Date: November 02, 2021
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2021-10-20 Economic Development & Infrastructure - recommend to Board
2021-10-28 Full Board
VOTE TRACKING
Motioned by Commissioner William Miller III seconded by Conuuissioner Michael Gingell to adopt the
attached Brownfield Plan: Sakura Novi -City of Novi Project,
Yes: David Woodward, Michael Gingell, Michael Spisz. Karen Johat, Kristen Nelson. Eileen Kowall, Philip
Weipert. Gwen Markham, Angela Powell, Thomas Kuhn, Charles Moss, Marcia Gershenson, William Miller
I1I, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray. Robert Hoffman, Adam Kochenderfer
(19)
No: None (0}
Abstain: None (0)
Absent: (0)
The Motion Passed.
ATTACHMENTS
1. EDI Packet Sakura Novi
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 October 28, 202 L
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 Corot at Pontiac.
Michigan on Thursday. October 28, 2021.
Lisa Broil n, Ookknxl Comit.1, Clerk/ Register of Deeds
ESTABLISHMENT OF A COMMITTEE FOR THE SAKi1RA NOVI
BROWNFIELD SITE SEPTEMBER 1, 2021
WHEREAS, per the Oakland County Brownfield Redevelopment Authority
(BRA) Bylaws, Article II Section 9. the Board shall appoint a committee for any such
proposed plan to allow for input of the city, village or township involved. The committee
shall consist of a minimum of one or more of the Directors of the Board, as well as one
elected official, or his/her designee from the affected city, village, or township. The
committee so appointed shall make recommendations to the Board, which shall include
or address any changes to the Brownfield redevelopment plan sought by the city, village
or township, as well as any other significant concerns or issues raised by the city, village
or township.
WHEREAS, Peter Webster and Ingrid Tighe (Oakland County BRA) and Victor
Cardeneas (Assistant City Manager, City of Novi) have been designated to serve on the
Local Host Committee since July 26, 2021 for the Sakura Novi project.
WHEREAS, all parties involved with this project and the specific persons
nominated for this committee have been meeting about this project starting on July 28th
of 2021: and,
THEREFORE, be it resolved, to approve and ratify the appointment of Peter
Webster and Ingrid Tighe (Oakland County BRA) along with Victor Cardeneas
(Assistant City Manager, City of Novi) to serve on the Sakura Novi project committee.
Yeas- Menna, Trigger, Jamieson, Tighe, Webster, Woodward
Nays-
4
1
Peter Lbster
Chairperson, Oakland County Brownfield Redevelopment Authority
RESOLUTION TO APPROVE A BROWNFIELD REDEVELOPMENT PLAN
FOR THE SAKITRA NOVI BROWNFIELD SITE
SEPTEMBER 1, 2021
WHEREAS, the Sakura Novi site has been an underutilized parcel and a facility
under state statute; and,
WHEREAS, a clean up and redevelopment plan has been established to restore
the economic viability of this parcel; and,
WHEREAS, the local host committee consisting of Peter Webster and Ingrid
Tighe from the OCBRA and Victor Cardenas from the City of Novi have met and have
recommended the approval of the Brownfield plan; and,
WHEREAS, the BRA Board has reviewed the proposed plan, now,
THEREFORE, BE IT RESOLVED, the Brownfield Plan for the Sakura Novi
project is hereby approved by the OCBRA on September 1, 2021; provided that,
1. The Developer and the OCBRA agree upon a mutually acceptable
Reimbursement Agreement, and the OCBRA authorizes the Board
Chairperson to sign the reimbursement agreement on behalf of the
OCBRA.
2. The City of Novi and the OCBRA will agree upon a mutually acceptable
Interlocal Agreement between the City of Novi Corridor Improvement
Authority and the OCBRA, and the OCBRA authorizes the Board
Chairperson to sign the Interlocal agreement on behalf of the OCBRA.
3. The local taxes will not exceed amounts approved in the 381 Workplan.
4. The developer submits the 2017 BEA report
5. The two parcels (I and 3) identified in the plan are combined with parcels
2 and 4 creating one parcel prior to the Oakland County Board of
Commissioners meeting.
BE IT FURTHER RESOLVED, to recommend the adoption of this plan by the
Oakland County Board of Commissioners, and its Finance and Infrastructure Committee.
Yeas- Trigger, Jamieson, Menna, Tighe, Webster, Woodward
Nays -
Peter Lbster
Chairperson, Oakland County Brownfield Redevelopment Authority
CITY OF NOVI
COUNTY OF OAKLAND, MICHIGAN
RESOLUTION CONCURRING WITH THE PROVISIONS OF A
REVISED BROWNFIELD PLAN ADOPTED BY THE OAKLAND
COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY FOR THE
SAKURA NOVI PROJECT
Minutes of a Meeting of the City Council of the City of Novi, County of Oakland,
Michigan, held in the City Hall of said City on July 26, 2021, at 7:00 o'clock P.M. Prevailing
Eastern Time.
PRESENT: Councilmembers Gott, Staudt, Casey, Crawford, Fischer, Maday, Mutch
ABSENT: None
The following preamble and Resolution were offered by Councilmember Staudt and
supported by Councilmember Maday.
WHEREAS, The City of Novi adopted a "Resolution Concurring with the Provisions
of a Brownfield Plan" in connection with a potential development project known as
Sakura Novi, located at the northeast corner of Grand River Avenue and Town Center
Drive. A copy of that Resolution is attached hereto.
WHEREAS, the applicant in connection with that project has submitted a REVISED
proposed Brownfield Plan that reduces the amount of anticipated cost to no greater
than $850,000.
NOW BE IT THEREFORE RESOLVED the City of Novi hereby concurs with the provisions
of the REVISED Plan, and supports approval of the REVISED Plan by the Oakland County
Board of Commissioners, and implementation of the REVISED Brownfield Plan by the
OCBRA.
IT IS FURTHER RESOLVED the City of Novi acknowledges and understands that
OCBRA intends to collect certain administrative fees and certain taxes for its revolving
loan fund, which will be specified in detail in any Brownfield Plan before it is finally
adopted.
AYES: Gaff, Staudt, Crawford, Fischer, Maday, Mutch (6)
NAYS: Casey (1)
RESOLUTION DECLARED ADOPTED.
Cortney HZ7nson City Clerk
CERTIFICATION
I hereby certify that the foregoing is a true and complete copy of a resolution adopted
by the City Council of the City of Novi, County of Oakland, and State of Michigan, at a
regular meeting held this 26th day of July, 2021, and that public notice of said meeting
was given pursuant to and in full compliance with Act No. 267, Public Acts of Michigan,
1976, and that the minutes of said meeting have been kept and made available to the
public as required by said Act.
Cortney Hanson, City Clerk
City of Novi
OAKLAND COUNTY
SAKURA NOVI
42750 GRAND RIVER AVENUE
NOVI, MICHIGAN
J U LY 27, 2021
Date Approved by BRA:
Date Approved by Board of Commissioners:
Prepared Bv:
I FAUSONE BOHN, LLP
41700 W. Six Mile Rd., Suite 101
Northville, Michigan 48168
Contact Person: Paul F. Bohn
Telephone: (248) 380-0000
TABLE OF CONTENTS
PROJECTSUMMARY...........................................................................
1
I.
INTRODUCTION AND PURPOSE ...................................................
2
II.
GENERAL PROVISIONS...............................................................
2
A.
Description of the Eligible Property (Section 13 (2)(h)) and Project ..........
2
B.
Basis of Eligibility (Section 13 (2)(h) and Section 2(u)) ...........................4
C.
Summary of Eligible Activities and Description of Costs (Sec. 13 (2)(a-b))
. 4
D.
Estimate of Captured Taxable Value and Tax Increment Revenues
(Sec. 13 (2)(c))..............................................................................5
E.
Method of Brownfield Plan Financing and Description of Advances
by the Municipality (Sec. 13 (2)(d))....................................................6
F.
Maximum Amount of Note or Bonded Indebtedness (Sec. 13 (2)(e)) .........6
G.
Duration of Brownfield Plan (Sec. 13 (2)(f)).........................................
6
H.
Estimated Impact of Tax Increment Financing on Revenues of
Taxing Jurisdictions (Sec. 13 (2)(g))..................................................
6
I.
Legal Description, Property Map, Statement of Qualifying
Characteristics and Personal Property (Sec. 13 (2)(h)) ..........................
7
J. Displacement/Relocation of Individuals on Eligible Property
(Sec. 13 (2)(i-1))............................................................................ 7
K. Other Material that the Authority or Governing Body Considers
Pertinent (Sec. 13 (2)(m))............................................................... 7
APPENDICIES
Appendix A Legal Description
Appendix B Property Location Boundary
Appendix C Preliminary Site Map
Appendix D Documentation of Eligibility
Table 1: Estimated Costs of Eligible Activities
Table 2: Tax Increment Revenue Capture Estimates
Table 3: Tax Increment Reimbursement Estimates
PROJECT SUMMARY
Project Name: Sakura Novi
Project Location: The property is located at 42750 Grand River Avenue in
Township one north (T.1 N), Range eight east (R.8E), Section
23, Novi, Oakland County Michigan 48375 (the "Property")
Type of Eligible
Property: The property is determined to be a "Facility"
Eligible Activities: Site Assessment and Baseline Environmental Assessment
Activities, Asbestos Containing Materials (ACM) Survey and
Abatement, Contaminated Soils Removal and Disposal,
Demolition, Specialized Foundations, Due Care Activities,
and Preparation of a Brownfield Plan and Act 381 Work Plan.
Developer Reimbursable
Costs: $850,000 (includes eligible activities and 15% contingency)
Years to Complete
Reimbursement: Approximately 5 years from start of capture
Estimated Capital
Investment: Approximately $45-55 million (Including hard and soft costs,
excluding the cost of land)
Project Overview: The project includes demolition of existing buildings and the
construction of an approximately 17-acre mixed -use
development which will include restaurants, supporting retail,
pro office, and 118 townhome apartments. It is estimated that
600 construction jobs will be created. The residential
development will generate two permanent jobs and the
commercial development will generate approximately 170
permanent jobs. The increase in jobs and addition of new
development on the Property will result in an increase of City
tax revenue.
I. INTRODUCTION AND PURPOSE
In order to promote the revitalization of environmentally distressed, historic, functionally
obsolete and blighted areas within the boundaries of Oakland County ("the County"), the
County has established the Oakland County Brownfield Redevelopment Authority
(OCBRA) the "Authority" pursuant to the Brownfield Redevelopment Financing Act,
Michigan Public Act 381 of 1996, as amended ("Act 381").
The purpose of this Brownfield Plan (the "Plan") is to promote the redevelopment of and
investment in eligible property within the City and to facilitate financing of eligible activities
at the property. Inclusion of property within any Plan in the City will facilitate financing of
eligible activities at eligible properties, and will provide tax incentives to eligible taxpayers
willing to invest in revitalization of eligible sites, commonly referred to as "Brownfields."
By facilitating redevelopment of the property, this Plan is intended to promote economic
growth for the benefit of the residents of the City and all taxing units located within and
benefited by the Authority.
The identification or designation of a developers or proposed use for the property that is
subject to this Plan shall not be integral to the effectiveness or validity of this Plan. This
Plan is intended to apply to the eligible property identified in this Plan and to identify and
authorize the eligible activities to be funded. Any change in the proposed developers or
proposed use of the eligible property shall not necessitate an amendment to this Plan,
affect the application of this Plan to the eligible property, or impair the rights available to
the Authority under this Plan.
This Plan is intended to be a living document, which may be modified or amended in
accordance with and as necessary to achieve the purposes of Act 381. The applicable
sections of Act 381 are noted throughout the Plan for reference purposes.
This Brownfield Plan contains information required by Section 13(2) of Act 381, as
amended.
II. GENERAL PROVISIONS
A. Description of the Eliaible Propertv (Section 13 (2)(h)) and Proiect
The eligible property consists of four (4) legal parcels totaling approximately 17 acres with
street addresses of 42750 Grand River Avenue and 42525 West Eleven Mile Road, Novi,
Oakland County, Michigan. These parcels and all tangible personal property located
thereon will comprise the eligible property and is referred to in this Plan as the "Property."
The Property is located on the northeast corner of Grand River Avenue and Town Center
Drive and is bounded by Grand River Avenue to the south, Town Center Drive to the
west, Eleven Mile Road to the north and City -owned wetland to the east. Individual parcel
information is outlined below and legal descriptions for each parcel are included in
Appendix A. A property location map is included in Appendix B.
z
Parcel No. 1 (ID 22-23-126-006) is currently zoned OS-1 (Office Service District) and
OSC (Office Service Commercial). The parcel is partially developed with a closed car
wash and an equipment building.
Parcel No. 2 (ID 22-23-226-008) is currently zoned 1-1 (Light Industrial) and is
undeveloped.
Parcel No. 3 (ID 22-23-126-011) is currently zoned 1-1 (Light Industrial) and is developed
with the Ecco Tool building.
Parcel No. 4 (ID 22-23-226-007) is currently zoned 1-1 (Light Industrial) and is
undeveloped.
The Property is anticipated to be rezoned as a Planned Rezoning Overlay to
accommodate the proposed future use.
Standard and other historical sources were used to document that the Property was
developed in 1897 when a residential building and garage were built. By 1940 a second
residence was constructed on the northwestern portion of the Property. The Property
continued to be used for residential purposes until 1967 when it was occupied by the
present-day equipment building located on the southern portion of the Property, and a
large pond/wetland on the western portion of the Property. By 1972, the current car wash
building was present on the southwestern portion of the Property. The first recorded
occupant of the Property was J Anglin Top Soil in 1973.
Robert B. Aikens and Associates, LLC and Sakura Novi Land Development, LLC or any
affiliate, and Robertson Brothers Homes or such other developers, are collectively the
project developer ("Developer"). Robert B. Aikens and Associates, LLC, was founded
over 40 years ago and has since developed over 20 million square feet of retail,
commercial and residential real estate throughout the country. Aikens has successfully
connected retail trends to local communities and provided residents with facilities that
seamlessly blend into the local social and architectural fabric. Similarly, Robertson
Brothers Homes has been building beautiful communities with a wide array of home styles
in Southeast Michigan for over 70 years. The proposed project outlined within this plan is
part of continued efforts by Aikens to produce innovative community -focused
development projects.
The development is intended to be a "best in class" collection of several Asian-themed
restaurants along with supporting retail and 118 units of residential townhomes. The
project will feature a walkable, open air environment, located on a 2-acre pond
surrounded by Japanese -influenced gardens and situated at one of the most highly
populated highway intersections in southeast Michigan. The development will create a
vibrant cultural community after decades of underutilization of the Property. The creation
of the mixed -use space on the Property will create numerous jobs and a regional
marketplace destination. The addition of residential units to the area will also create
desired housing stock within the City of Novi. Both commercial and residential uses will
3
lead to the influx of new employees and residents into the area and result in an increased
spinoff in consumer spending.
Construction is anticipated to begin in late Summer or early Fall of 2022 and be
substantially completed by late Summer/early Fall of 2025. The Developer will invest an
estimated $45 to $55 million in the development, create approximately 600 construction
jobs, and create opportunity for approximately 170 future permanent retail jobs.
A preliminary site plan is included in Appendix C.
B. Basis of Eliaibility_(Section 13 (Mft) and Section 2(uD
The Property is considered "Eligible Property" as defined by Act 381, Section 2 because
it is a "Facility" or adjacent to property that is a facility, The Property was determined to
be a Facility based on environmental site assessments that identified contamination at
levels exceeding the applicable Michigan Department of Environment Great Lakes and
Energy ("EGLE") cleanup criteria as a result of historic land uses on the Property.
C. Summary of Eliaible Activities and Description of Costs (Sec. 13
2 a-b
State school and/or local tax increment revenues where appropriate will be used to
reimburse the costs of "Eligible Activities" (as defined by Section 2 of Act 381) and as
permitted under the Act 381 that include: Site assessment and Baseline Environmental
Assessment activities, Asbestos Containing Material (ACM) survey and abatement,
contaminated soils removal and disposal, Due Care activities, and preparation and
implementation of a Brownfield Plan and Act 381 Work Plan. An itemization of these
activities and associated expenses is included in Table 1.
The following eligible activities and estimated costs are intended as part of the
development of the Property and are to be financed solely by the Developer. All activities
are "Eligible Activities" under Act 381. The Authority is not responsible to finance for any
cost of Eligible Activities and will incur no debt.
1. Preparation and implementation of the Brownfield Plan and Act 381 Work
Plan and associated activities, including reasonable attorney fees for these
efforts, at a cost of approximately $52,000.
2. Site Assessment and Baseline Environmental Assessment Activities
include a Phase I Environmental Site Assessment (ESA), Phase II ESA,
Baseline Environmental Assessment (BEA) as required as part of the pre-
purchase due diligence conducted on the Property at a total cost of $7,950.
3. ACM survey and abatement at an estimated cost of $18,000.
4. Due Care Investigation at an estimated cost of $25,000
4
5. Removal, transport and disposal of contaminated soil at an estimated cost
of $294,000.
6. Due Care Activities at an estimated cost of $30,000.
7. Special Foundations at an estimated cost of $270,000.
8. Demolition at an estimated cost of $50,000.
A 15% contingency of $103,050 to address unanticipated environmental
and/or other conditions that may be discovered through the implementation
of site activities. This contingency excludes the cost of Baseline
Environmental Assessment Activities and preparation of the Brownfield
Plan and Act 381 Work Plan.
The total estimated cost of these Eligible Activities subject to reimbursement from tax
increment revenues is $746,950 with a potential $103,050 contingency, resulting in a total
cost of $850,000.
Therefore, the total cost for reimbursement to the Developer is a not -to -exceed amount
of $850,000 (including contingency), unless the Plan is amended and approved by the
OCBRA and the Board of Commissioners.
D. Estimate of Caatured Taxable Value and Tax Increment Revenues,
(Sec. 13 QUO)
Incremental taxes on real property included in the redevelopment project will be captured
under this Plan to reimburse eligible activity expenses. The base taxable value of the
Property shall be determined by the use of the 2021 tax year tax value (the majority of
the Property is owned by the City of Novi and has a current taxable value of $0 as tax
exempt property). Tax increment revenue capture will begin when tax increment is
generated by redevelopment of the Property, which is expected to begin in 2022. The
estimated taxable value of the completed development utilized in the tax capture tables
(Table 2 and Table 3) is approximately $19 million. This assumes a three-year phase -in
for completion of the redevelopment, which has been incorporated into the tax increment
financing assumptions for this Plan. An annual increase in taxable value of 1 % has been
used for calculation of future tax increments in this Plan. A Commercial Rehabilitation
Exemption Certificate for the Property redevelopment was assumed to reduce local taxes
beginning in 2022 for a period of eight (8) years. Table 2 details the estimate of captured
tax increment revenues for each year of the Plan from the Eligible Property.
The OCBRA has established a Local Brownfield Revolving Fund (LBRF). Capture for the
LBRF is included in this Plan following Developer reimbursement, currently established
at $150,000. The funds deposited into the LBRF as part of this Plan will be used in
accordance with the requirements of Act 381, as amended.
Payment of Brownfield Redevelopment Authority Administrative Fees of $5,000/year will
occur annually prior to reimbursement of the Developer.
5
Act 381 also requires a portion of the tax increment revenue created by the
redevelopment to be placed in the State Brownfield Fund, which amount is anticipated to
be $149,083.
E. Method of Brownfield Plan Financing and Description of Advances,
by the Municloality (Sec. 13 (2)(d)l
Eligible activities will be financed by the Developer. The Developer will be reimbursed for
eligible costs as described in Section C and outlined in Table 1. Costs for Eligible Activities
funded by the Developer will be repaid with incremental taxes generated by future
development of the Property. The estimated amount of tax increment revenue capture
that will be used to reimburse the State Brownfield Fund, Developer, LBRF, and the
Brownfield Redevelopment Authority is not to exceed $1,174,083. This includes
Brownfield Redevelopment Authority Administrative fees.
No advances will be made by the Authority for this project. All reimbursements authorized
under this Plan shall be governed by a Reimbursement Agreement.
F. Maximum Amount of Note or Bonded Indebtedness (Sec.13 (2)(ell
No note or bonded indebtedness will be incurred by any local unit of government for this
project.
G. Duration of Brownfield Plan (Sec. 13 021(f)),
In no event shall the duration of the Plan exceed 35 years following the date of the
resolution approving the Plan, nor shall the duration of the tax capture exceed the lesser
of the period authorized under subsection (5) of Section 13 of Act 381 or 30 years.
Further, in no event shall the beginning date of the capture of tax increment revenues be
later than five years after the date of the resolution approving the Plan. The Property will
become part of this Plan on the date this Plan is approved by the Oakland County Board
of Commissioners.
H. Estimated Impact of Tax Increment Financing on Revenues of Taxinq
Jurisdictions (Sec. 13121(a))
Taxes will continue to be generated for taxing jurisdictions on local and state captured
millages at the base taxable value of the Ad Valorem parcel throughout the duration of
this Plan totaling annually approximately $12,000.
Non -capturable millages; including the zoo authority, art institute, and school debt will
provide new tax revenue of approximately $35,000 throughout the capture duration of this
Plan. A proposed Commercial Rehabilitation Act tax abatement is also being sought as
part of the local contribution to the project, which is projected to begin in 2022 and run
through 2029.
See Table 2 for a complete breakdown of available tax increment revenue and Table 3
for the estimated tax increment reimbursement.
I. Leaal Description. Property Map. Statement of Qualifvina
Characteristics and Personal Property (Sec. 13 (2)(h)j.
The legal descriptions of the Property included in this Plan is attached in Appendix A.
A Property location map is included in Appendix B.
A preliminary site plan is included in Appendix C
Documentation of characteristics that qualify the property as eligible property pursuant to
Act 381 are provided in Appendix D.
J. Disolacement(Relocation of Individuals on Eliaible Prooertv (Sec. 13
(2)(i-1))
The Property is currently unoccupied with the exception of the Ecco Tool building and car
wash building. No displacement of residents or families is expected as part of this project.
K. Other Material that the Authoritv or Governina Bodv Considers
Pertinent (Sec. 13 (2)(m)l
The Brownfield Redevelopment Authority and the Oakland County Board of
Commissioners as the Governing Body, in accordance with Act 381, may amend this Plan
in order to fund additional eligible activities associated with the project described herein.
XV17B1Robertson BrotherslSakura Way\BrownFleld Plan Docs1- Amended Brownfield Plan Documents\FINAL GSA Brownfield
Plan DRAFT RB Redline 7.27.21.docx
APPENDIX A
LEGAL DESCRIPTIONS
SAKURA NOV)
LEGAL DESCRIPTIONS OF ELIGIBLE PROPERTY
PARCELI
ID Number: 22-23-126.006
A parcel of land located In and being part of the east 1/2 of the northwest ; A of Section 23, TAN.,
RAE., City of Novi, Oakland County, Michigan, being more particularly descr i. ad as follows:
Commencing at the North 1/4 comer of said Section 23, thence proceeding South 89 Degrees 34
Minutes DO Seconds West 290.50 feet along the North line of said Section 23 and the centerline of
Eleven Mlle Road to the point of beginning; thence South 00 Degrees 26 Minutes 00 Seconds East
891.67 feet (recorded as South 00 Degree 17 Minutes 20 Seconds East 891.25 feet) to a point on the
centerllne of Grand River Avenue (US-16); thence North 71 Degrees 44 Minutes 00 Seconds West
652.02 feet (recorded as 650.70 feet) along said centerline of Grand River Avenue (North half 50 feet
wide), thence North 682,64 feet (recorded as 682.62 feet) to a point on the North line of said Section
23, said point being located North 89 Degree 34 Minutes GO Seconds East 433.84 feet (recorded as
419.90 feet and assessed as 433.70 feet) from the 1/16 comer located at the Northwest corner of the
East 1/2 of the Northwest 1/4 of said Section 23; thence continuing North 89 Degrees 34 Minute 00
Seconds East 612.44 feet (recorded as 613.40 feet) along said North line of Scctlon 23 and centerline
of Eleven Mile Road (South half 33 feet wide) to the point of beginning.
ARCEL 2
ID Number: 22,23-226.008
Land situated In the City of Novi In the County of Oakland in the State of Nil. Part of the Northeast
1/4 of Section 23, Town i North, Range 8 East, described as: ,
Beginning at a point distant North 89 degrees 00 minutes East 99.53 feet from the North 114 corner
of Section 23, thence North 89 degrees 00 minutes East, 165,14 feet; thence South 0 degrees 49
minutes 20 seconds East, 527,55 feet; thence South 89 degrees 00 minutes W=st,165.14 feet; thence
North 0 degrees 49 minutes 20 seconds West, 527.55 feet to the point of begnning,
PARCEL3
ID Number; 22-23-126.011
Part of the Northwest 1/4 of Section 23, Town 01 North, Range 08 East, Nov' Township (now city
of Nov]), Oakland County, MI described as: Beginning at a point distant South 89 degrees 00
minutes QO seconds West 65.61 feet from North 1/4 corner of Section 23; thence South 00 degrees
44 minutes 20 seconds East 527.55 feet; thence South 89 degrees 00 minutes 00 seconds West
61.82 feet; thence North 71 degrees 53 minutes 30 seconds West 170.00 feet; thence North 01
degrees 00 minutes 00 seconds West 471,87 feet; thence North 89 degrees 00 minutes 00 seconds
EasD224.89 feet to the point of beginning,
i
PA CEC
i
i ID Number: 22-23-226-007
i
Part of the Northwest 1/4 of Section 23, Town 01N, R, 08E„ Novi Township (now Clty of Novl) Oakland
County, Michigan. Described as beginning at the North 1/4 corner of Section 23, thence North 89
degrees 00 minutes 00 seconds East 99,53 feet; thence South 00 degrees 44 minutes 20seconds East i
527,55 feet; thence South 89 degrees 00 minutes 00 seconds West 165,1-9 feet; thence North 00
degrees 44 minutes 20 seconds West 527.55 feet; thence North 89 degrees 00 minutes 00 seconds
East 65,51 feet to the point of beginning.
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APPENDIX 13
LOCATION MAP
a
nnwsavuun 31It MAY
`DATnlin/za(2o10 (30UACEt GOODIE MAPS)
Ercironmanlci tte tours+s Grovn
APPROVEDWhOlS PROPOSED SARURA WAY DEVELOPMENT
scAtfir-240' 02750 GRANO RIVER AVENUE
sREen2ova NOVI, MICHIGAN 40375 ,
APPENDIX C
PRELIMINARY SITE PLAN
IAO
`�b \
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1 14
IMpalli
1
Ap eAv o° %AGXW%-A""
DOC-1001XVIOV4
.1
1
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TABLE 1
Brownfield Eligible Activities Costs
Sokura Way, Novi Michigan
Amount
Brownfield Plan & Act 381 Work Plan
1.
Preparation and implementation
$
52,000
12,
Environmental Site Assessments and BEA
$
7,9501
13.
Asbestos Survey and Removal
$
18,000
14.
Due Care Investigation
$
25,000
15.
Contaminated Soil Management
$
294,000 I
16.
Due Care Activities
$
30,000
17.
-Special Foundations
$
270,000 1
$
50,0001
rDemolition
)total Eligible Activities
$
746,950 1
1
115% Contingency for items 3-8
$
103,050 1
linterest on Capital Costs
1pTAL
Table 2
Tax Increment Revenue Capture Schedule
Salcura Novi, Novi Michigan
Plan Approval
Tax Capture
Erdmated Taxable Value pry increase slate:
1% per year
„PbinYearj
Base Year
I 1
2 34
5 6 7 8 Stablhand TOTAL
Calendar Year
20n
2DZ2
2023 2024 225
2026 2027 202E 2Z9 _ 2030
Base Taxable Value
$ 281,010
$ 281010
$ 281010 S 281,030 ,$ 281,030
$ 2 1010 $ Z81,010 $ 283A10 5 281,010 $ -
FstimatedLand TaxableValue-
:i '.� - s �
::3!g-74p5 <?'�$pe<fi` '-''+a0i5Commemlai
--:`01—
Roien ValueEstimatetlCommeroalRehabValue'
�ACra:. _em
EstimusendillanuAdValorc-w,r^
Value
S 19 fiW S o
School Capturelnaementsl Difference!(land-Base)+Frozen+Rehab
$ Sn,317
$ ZUSX7 $ 114575,317 S 18,146,256
S 18,321,965 S 18,499.4n $ 28,678,573 $ 18,859,707 $ -
Local Capture Incremental 01f1erenca((land-Base)+Frozen
$ 575317
S 575,317 $ Sni317 $. 575,317
5 575317 S 5'75317 $ 575317 $ 575317 $ -
State Education Tax(SET) 6.0000
School Operating Tax 17.2784
School Total M27M
General My
4.7563S
Library
O.T312
Streets
L4215
PaBr4/Fire
1.3535
Parks S. Rec
03M
Drains
05978
Schoolsink
0.4713
Recreation
0.9365
Capital Improvement
0.9526
PA359 Emn Nip
0.0123
Oak Caunty HCMA
0.2304
Oak [So Voted
3.0362
0akISDAlloc
111918
Oak County PK&RC
D3500
Oak County OF testing
4.0200
Oak Comm College
15184
Local Capturable Total
20S251
S LS96 S
3.452 S
12,452 S
B ASI S
S 4,835 $
9341 $
3S.SSB S
192,725 S
5 URI $
13392 $
49,310 S
246176 S
5 1337 5
2.736 $
2.736 5
2.736 $
5 205 S
4n S
421
421. 5
S 399 S
B38 $
an 5
B18 S
5 380 9
779 S
T79 S
779 5
S 103 5—no $
n0 $
210 S
5 163 S
3" S
3" S
3" S
s 132 S
2715
Z71$
ins
5 263 5
539 S
539 S
339 S
5 268 S
548 $
Sae S
Bass S
5 3 S
7 S
7$
7$
$ 59 S
221 S
121 S
221 S
S 853 S
2.747 S
L747 S
L747 S
5 54 S
no 5
no S
110 S
S 98 S
201 S
21 5
201 5
5 1130 $
2313 5
2313 S
2313 S
S 427 S
$74 S
674 S
874 S
S 5,880 $
12,039 S
12,039 $
12,039 S
'Tax revenue chart uses current rates as of the date of the plan as appraveri by Cal County Equalization
Actual rates of the taxing jurisdictions svlll be users moving f ntat rrla in the plan
308,678 S
199,932 S
n'0,."7 S
112,072
5
;n.159
S - $
634392
313MS S
316574 S
319.541 S,
322.739
S
325MG
S -
S
L826830
423.416 $
426AS S
430,637 $
434330
S
439,024
$ -
$
2,461Z71
2.736 S
2,736 S
2.736 S
2.736
S
2-736
S -
$
2LB91
_ 421 S
421 5
421 S
421
$
421
5 -
S
3365
me S
SIB S
SIB S
SIB
S
819
S -
S
6543
779 S
779 $
779 S
779
S
779
S
S
is
6.230
210 S
210 S
n0 5
210
S
210
S
1.681
3" S
Sala S
3" $
3"
S
3"
S -
�S
2.751
271S
271 S
in S
271
S
271
S
5
L169
539 S
539, S
S39 S
Bills
S
SIB
$ .
IS
4320
Sag II
- _ 549 S
Sag S
548
S
Sea
S -
IS
4.384
7 S
7 S
7 S
7
5
7
S -
S
57
121 S
121 S
121 S
III
S
In
S -
5
is
96R
1.747 $
1,747 S
L747 S
1,747
S
1747
S -
n374
110 S
no S
310 S
IM
S
no
S
S
883
201 S
201 S
201 S
its
S
201
S
S
is
L611
2313 S
2313 $
2313 S
2.313
5
2313
S -
18.502
874 S
B74 S
974 S
874
S
874
S -
1
6388
IZ,O39 S
SZ,O39 S
221039 5
12,039
S
17.039
S -
j$
96,309
Table 2
Tax Increment Revenue Capture Schedule
Sakum Novi, Novi Michigan
PlanApOMVA Tax Capture
asximmiTmbb ttilue{tY tnc eax Rite: 1%w
mr
.. .Plan Year
Base Yea,
1
2 !
3
4-
'S
fi
7
.8
StabGmd ,.
TOTAL
CalendsrVear
2021
2022
2023
2024
2025
2D26
2027
2028
2029
230
easeTiombl4Value S
281,010
S
22LO10
$ 281=0 $
281,010 S
29i,010
$
281A2D-
5 2MO10 $
2934010-
$
28L010
5 -
EstimatedUndTaxabkVafue'
;$_.yB7�yp,:fit%,?fi7:��i;£'.',.`:?�7.i?`�0;5,:,:'`787tinU;�$.;:;:.•J$7.id0.;s$"787.i4,0,�?$,.':��.i,`+40'j5';:?87,Sfi0i5
'
Cmnmerd l frozenvalue
?S--
?2^${:z
5:'
'88,38X`,{-a�;:'�f!$:3.B7
iS'
:£8.7&7.<3.$'
.:.6Bt787 5'
:;,`. „782:5,
SBy7$,li
$ -
EsdmatedCommerdoMehabValue•
i.5`-^,::a
,.jtrS"si5�'.Wd
:S``'`'10:000;'CCU?;
;II
-
EsbmazedNewAdVatoremValue
Su`•
Sdroot Captureinm,vnea al Difference{(Wad-Same)+Frozen+Rehab
$
579317
$ 2PS417 $
20,575317 $ 1s v4B256
$ 18322,965
$ SSAS A3= $ 18,6MSM
$ 18A53,707
S -
ltr4NDett 03471 $
m
5
2W
5 200 $
200 S
2W
5
2W
5 2W 5
2W
5
200
S -
5 11599
School Datz Z00 0 5
L967
5
4.027
$ 4,027 $
4.M7 S
4.017
$
4.027
$ 4,017 8
4.027
$
4,027
S -
$ 32215
Oak Caonsv2oo 0490 $
27
$
56
5 56 $
56 $
56
5
SS
S 36 S
56
5
55
$ -
$ 444
Oak C.mwArc a2923 S
54
S
UO
S 210 $
no $
110
:S
=0
$ 110 S
120
S
110
S
S SSD
Tetat Non taptvrzbk Taws 7.6349 S
2,145
$
4392
5 4^a92 S
4,352 $
4392
S
4,S92
$ 4352 S
4,392
S
439Z
S -
S 35240
SL3384
Total Sase Tax S
14,567
TotulrWnae am Revenue MR)AvlOable forCapwm
$
23,431
$ W349 $
258215 S
434AS4
$
438,545
$ 44ZS76 $
446348
S
451,062
$ -
5 77BA49
TotalT CUmub6ueAWhblsfor6pture
S
25,431
$ 85,780 $
343MS S
778A49
S
111094
S 1,659,669 $
2206318
$
2557,580
$ 2,557,5W
Abmmtaament
$
-
5 42,940 $
28S,6W $
501AZE
$
$06,944
$ 511.913 S
S17,032
S
522.202
$ 2.5BB,Z57
IFoou+otez:
'Estimated tanbk values o niyr advat tanbte value m be determined by CdY Assessor
Table 3
Tax Invemem Reverve Relcal,. arartARn4ationTable
Sale Novi
N04MIcbigan
.....:.+vi✓t�.�I111��IiIRbmh'tltSelRdn't�.:`'"�'a:.r`.�'P(LP01'L{'Qk�
R311nI8t[d CapmlG
State
MrA
Admini. five Fee$
$
25,000
-_--- Local - �-
71M
State Bmamfietd RedN`dapment Fund
5
149,11M
.TOTAL ....
,.
Local Brimfield RevoNNng Fund
$
150.000
EG1E
S00.0X
ONdopv RGlmbms[mem
$
850A00
MS
0.0X
TOTAL $
1,174,083
1 1
3
4
5
2M3 !.
2424 A . .
202S
2025
TOTAL
Total State lnvtmental Reeenue
$
13,392 5 48,310 $
20,176 S
422A16 $
426.506 5
?,356,891
State BrowMdd Revolving Fund (50%ofSM
$
2,726 $ SIM $
3y726 $
54,439 6
S4,966 $
140,M
Stain TRAvaBxble for Relobutsemcnt
5
111667 3 41A34 $
214,451 $
36T,977 S
371,540 5
1,007,718
Tow Loallnnemaml Revenue
$
12A39 5 12A39 $
12A39 $
12,039 S
32,039 $
60A33
BRAAdn,WrtnVvep e
S
SA00 $ 5,000 $
5,000 $
5,000 5
5=0 S
25A00
Local TiRAvaipblefor Reimbursemem
$
TAM $ 7,M 5
71039 S
7,M9 $
7A39
35,143
:
��5yyaa
• •:
&$npittg
DEVELOPER , <-
Balance
,Okift .. ,. •.. •,• .. ` ....,....:�.„�5-'°�`,isr`ESd.'�0�'Sc.�_^831T.IF:�`3'c�:78L:i�:�£'�.:3'G0,68i'1'k`a`.::485y6GB:'(a�'�r•.�
_—_ _—_____—_--..._---
:..
-------------.moo---- ---------------- ..-.-._..._.S.
aASF ll.a, rmeorw cosss $.
L�S. -,:
- 5. S. -• ..--I'S
a $
:-.5
1
Stele 7azRdmbursemeM
(
'15
-
$
L.W TWW.bursement
5
-
5 - Is
IS
- 15
$
-i
TotathtSFReunbursemertt BaGvxe
� 5
.._'I S. -I S.
._ -(5
- -.15.
- S
f
•!
.E'ElF_Erni nmmeal Cnar"49.M'
S'
.. -=489
5'
375Affi I5.-
378573
..
...
StateTuRdmbu=M
I
_
5
11.667 I5 42A84 5
214.451
5
367,977
585,66E
S
832845
WcalTaxRelmburummt
5
7,03915 7A39 t S
TA39,
S
7.039 is
-
S
=54 i
Total MDEQReimbursemeMBabM
5 .
8312951$ . 742.M I S�
-560.6t I $
.18560 t $
- - S
85'DAw I
tint O'lIx m S
--�5
-I5 - -..•i$
-I5:
-I
..i5
-!
Local Tax RdmbursemeM
Tomltaal Only Reimbursem¢Meahme
I S
_ -.
I
}<ugy
S
{i
S$TOS 1 S 67,B28 1 $
. '28.4,317' S.
..66Q,332I S.
,83Q.D00 $
' BSQOOQ'
LOCAL BROWNFIELD REVOLVING FUN
1BPF Deposits
5
- S -
5tateTaxc.mra
-15
Ile.= $
Loaf Tax Caoturn
5
-IS
-�,J S. -3.5
-
S
_IS
-7,000 45
_I
Tote um Capwre
! ..
I - 7 .
. _
15
. =,,am 15 ssacna
�Fpmn[t[S:
[ 1>rop¢rtionaTRy $ndudes issuame of hcaltommetdal Facilities Eapmptwnte�ate
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