HomeMy WebLinkAboutMinutes - 2023.07.27 - 40330
1200 N. Telegraph Road, Bldg. 12 East, Pontiac, MI 48341
Board of Commissioners
David T. Woodward, Chair
July 27, 2023 at 8:30 AM
MINUTES
1. Call Meeting to Order
Chair David T. Woodward called the meeting of the Board of Commissioners to order at
11:23 AM in Commissioners' Auditorium 1200 N. Telegraph Road, 12 E, Pontiac, MI
48341.
2. Roll Call
MEMBERS PRESENT: Janet Jackson, Brendan Johnson, Charles Cavell, William Miller
III, Ajay Raman, Yolanda Smith Charles, Angela Powell, Kristen Nelson, Gwen Markham,
Karen Joliat, Marcia Gershenson, Robert Hoffman, Christine Long, Philip Weipert, David
Woodward, Michael Spisz (16)
MEMBERS ABSENT WITH NOTICE: Penny Luebs, Michael Gingell, Gary McGillivray (3)
3. Invocation - Gwen Markham
4. Pledge of Allegiance to the Flag
5. Approval of Minutes
a. Board of Commissioners - dated July 20, 2023
Resolution #2023-3205 _
Charles Cavell moved approval of the Minutes dated July 20, 2023, as
presented. Seconded by Janet Jackson.
Motion Passed.
Vote Summary (16-0-0)
Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Christine
Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles
Cavell, Brendan Johnson, Ajay Raman
No: None
Abstain: None
6. Approval of Agenda
Yolanda Smith Charles moved approval of the agenda, as presented. Seconded by
Angela Powell.
Motion Passed.
Vote Summary (16-0-0)
Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Christine Long,
Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan
Johnson, Ajay Raman
No: None
Abstain: None
7. Public Comment
The following people addressed the Board during Public Comment #1: Michael
McGuinness, Melanie Rutherford and Khalfani Stephens.
8. Regular Agenda
a. Executive's Office - Approval and Acceptance of Assignment of Purchase
Agreement to Purchase and Lease Certain Property in the City of Pontiac
Resolution #2023-3203 _ 23-128
Chair David Woodward addressed the Board to announce Finance Committee item entitled
Executive's Office - Approval and Acceptance of Assignment of Purchase Agreement to
Purchase and Lease Certain Property in the City of Pontiac to include public space rights.
MR #23128
Contract Approval and Acceptance of Assignment of Purchase Agreement
to Purchase and Lease Certain Property in the City of Pontiac
Sponsored By: David Woodward
WHEREAS on May 17, 2023, the Economic Development & Infrastructure
Committee approved an Assignment of Purchase Agreement for the purchase
and lease of the following (collectively referred to as the “Properties”):
A. Office building located at 51111 Woodward Avenue, Pontiac, Michigan
48342, known as Ottawa Tower 1
B. Vacant office building located at 31 East Judson Street, Pontiac,
Michigan 48342, known as Ottawa Tower II
C. Vacant land parcels as more thoroughly described in the Purchase
Agreement
D. Assignment of Ottawa Tower I office leases
E. Assignment of all interest in a Lease that covers the Phoenix Center
Parking Structure;
WHEREAS the Purchase Agreement outlined an Inspection Period for
purchaser, Farbman Acquisition LLC (Farbman Group), to conduct their due
diligence on the purchase of the Properties;
WHEREAS due diligence was conducted by the Farbman Group and various
professional organizations on the Properties.
WHEREAS the due diligence covered environmental reports, property condition
reports, surveys, title, parking deck report, lease abstract reports on Ottawa
Tower I and lease abstract on the Phoenix Center Parking Structure, and
income and expense reports on Ottawa Tower I and on the parking lease.
WHEREAS the due diligence did not uncover any material finding during the
inspection period. The inspection period concludes on July 24, 2023.
WHEREAS during the inspection period two appraisals were
conducted. Integra Realty Resources performed one appraisal of the Properties
and found a prospective market value as stabilized of $19.9 million
dollars. Newmark Valuation & Advisory, LLC performed the other appraisal of
the Properties and found a market value as is of $19.6 million dollars.
WHEREAS the County Executive’s Office desires to purchase for
$19,200,000.00 the Properties, has reviewed and approved the attached
Assignment of Purchase Agreement, and recommends that the Oakland County
Board of Commissioners approve and execute the attached Assignment of
Purchase Agreement.
WHEREAS Oakland County has been awarded a $50,000,000.00 enhancement
grant by the State of Michigan for public infrastructure purposes, has allocated
$10,000,000.00 of federal Local Fiscal Recovery Funds for the Pontiac office
relocation project, and may consider issuing bonds in the future for a portion of
the overall project.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approves the attached Assignment of Purchase Agreement and
authorizes and directs its Chairperson to execute the attached Assignment of
Purchase Agreement upon receiving a fully executed Memorandum of
Agreement for the Pontiac Redevelopment Project between The County of
Oakland and the City of Pontiac prior to the closing date.
BE IT FURTHER RESOLVED that the Oakland County Board of
Commissioners authorizes an appropriation in the amount of $19,200,000.00 for
the purchase of the Properties and an additional amount not to exceed
$350,000 in closing costs related to the purchase of the Properties, both from
the General Fund Strategic Investment Plan Assigned Fund Balance (GL
Account #383554).
BE IT FURTHER RESOLVED that the Oakland County Board of
Commissioners authorizes an appropriation in the amount of $250,000.00 from
the General Fund Strategic Investment Plan Assigned Fund Balance (GL
Account #383554) for the management of the properties listed above for a
period of 12 months, to begin on the closing date identified in the Purchase
Agreement.
BE IT FURTHER RESOLVED that County Executive Office and Board of
Commissioners intend to reimburse the General Fund at a later date for these
appropriation with revenues received from a combination of the State of
Michigan’s $50,000,000 enhancement grant to Oakland County and
$10,000,000 in Local Fiscal Recovery Funds received under the federal
American Rescue Plan Act.
BE IT FURTHER RESOLVED that Oakland County intends to issue bonds to
pay for the costs associated with acquiring the Properties and the purchase
price for the Properties and makes the following declarations for the purpose of
complying with the reimbursement rules of Treas. Reg. § 1.150-2 pursuant to
the Internal Revenue Code of 1986, as amended:
a. Oakland County reasonably expects to reimburse itself with proceeds of
the bonds for certain costs of the Properties which were paid or will be
paid from funds of Oakland County subsequent to sixty (60) days prior to
today.
b. The maximum principal amount of debt expected to be issued for the
acquisition of the Properties, including issuance costs, is $20,000,000.
c. A reimbursement allocation of the capital expenditures described above
with the proceeds of the Bonds will occur not later than 18 months after
the later of (i) the date on which the expenditure is paid, or (ii) the date
the Properties are placed in service or abandoned, but in no event more
than three (3) years after the original expenditure is paid. A
reimbursement allocation is an allocation in writing that evidences
Oakland County’s use of the proceeds of the bonds to reimburse
Oakland County for a capital expenditure made pursuant to this
resolution.
BE IT FURTHER RESOLVED that the Oakland County Board of
Commissioners authorizes and directs Deputy County Executive Sean Carlson
to execute all closing documents and any other documents required during the
closing process for the transaction contained in the Assignment of Purchase
Agreement and all other documents which may be required to effectuate the
transaction contained in the Assignment of Purchase Agreement.
BE IT FURTHER RESOLVED that the FY 2023 budget is amended as reflected
in the Schedule A – Budget Amendment document.
Angela Powell moved to adopt the attached Approval and Acceptance of
Assignment of Purchase Agreement to Purchase and Lease Certain
Property in the City of Pontiac. Seconded by Kristen Nelson.
Discussion followed.
Motion Passed.
Vote Summary (11-5-0)
Yes: David Woodward, Kristen Nelson, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles
Cavell, Brendan Johnson, Ajay Raman
No: Michael Spisz, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert
Abstain: None
Attachments:
1. Schedule A - Budget Amendment - Property City of Pontiac
2. Assignment of Purchase Agreement - Ottawa Tower Properties - Farbman
- Oakland County (Final Version)
3. FinalReport Ottawa Tower Property.7.26.23
4. 23-0188994-1 - 31 E Judson St 51111 Woodward Ave Pontiac
MI.Final.7.26.23
5. County-Pontiac MOA re Phoenix Center Ottawa Towers (DRAFT.
7.27.23).v12 as Amended, Exhibit A and B
9. New & Miscellaneous Business
10. Announcements
Commissioner Gwen Markhan addressed the Board to announce the Pioneer Historical
Society will be hosting their annual ice cream social this Saturday and Sunday.
Commissioner Michael Spisz addressed the Board to announce the Oakland County
Circuit Court case regarding the Oxford hearing.
11. Public Comment
The following people addressed the Board during Public Comment #2: Michael
McGuinness and Melanie Rutherford.
12. Adjournment to August 3, 2023, or the Call of the Chair
The meeting adjourned at 12:05 PM.
