Loading...
HomeMy WebLinkAboutResolutions - 2025.05.22 - 42130 AGENDA ITEM: Appropriation and Allocation of Funding for the Renovation of 31 E Judson and 51111 Woodward Avenue in Pontiac DEPARTMENT: Executive's Office MEETING: Board of Commissioners DATE: Thursday, May 22, 2025 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2025-5307 _ 25-16 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Budget Amendment Yolanda Smith Charles INTRODUCTION AND BACKGROUND In 2023, the Oakland County Board of Commissioners authorized the purchase of property in downtown Pontiac for a transformational development project, including two buildings located at 51111 Woodward Avenue and 31 E. Judson Street, a parking garage, and several vacant parcels of land. The project involves the renovation of the building located at 31 E. Judson Street (Main Building) and certain floors of 51111 Woodward Avenue, which will house County employees. The County, working with Farbman, HED, and Granger, has arrived at a budget for the renovations and requests approval of the transformational development project in the amount of $174,525,000. POLICY ANALYSIS This is a request to approve a $174.5 million transformational development project in downtown Pontiac, focused on renovating 31 E. Judson Street and parts of 51111 Woodward Avenue for County use. The project includes three components: building renovation, a new conference center, and a solar energy project. Funding will come from a mix of sources, including a Michigan Economic Development Corporation grant, $25 million from the County’s General Fund, and future bond issuance. Several vendors have been contracted for project roles, including Farbman Group, HED, AECOM & Sidewalk Detroit, and Granger Construction. The resolution mandates monthly progress reports to the Economic Development & Infrastructure and Finance Committees. The County Executive’s Office notes that the Construction Manager, Granger, shall pay their subcontractors via ACH within five (5) business days after receipt of funds from Oakland County. All invoices submitted by the Construction Manager will certify that they will pay within 5 business days and certify that they have met that timeframe on past invoices. FISCAL IMPACT: Budget Amendment Attached Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Sean Carlson, Deputy County Executive II ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 5/23/2025 David Woodward, Board of Commissioners Approved - 5/29/2025 David Coulter, Executive's Office Approved - 5/29/2025 Lisa Brown, Clerk/Register of Deeds Final Approval - 6/5/2025 AGENDA DEADLINE: 05/08/2025 4:30 PM ATTACHMENTS 1. CE-Pontiac Project_Schedule A-Budget Amendment 2. BOC ED&I Presentation 5-14-25 COMMITTEE TRACKING 2025-05-14 Economic Development & Infrastructure - Forward to Finance 2025-05-14 Finance - Recommend to Board, as Amended 2025-05-22 Full Board - Adopt, as Amended Motioned by: Commissioner Yolanda Smith Charles Seconded by: Commissioner Linnie Taylor Yes: Ann Erickson Gault, Marcia Gershenson, Brendan Johnson, Penny Luebs, Gwen Markham, William Miller III, Angela Powell, Yolanda Smith Charles, Linnie Taylor, David Woodward (10) No: Charles Cavell, Robert Hoffman, Karen Joliat, Christine Long, Kristen Nelson, Michael Spisz, Philip Weipert (7) Abstain: None (0) Absent: Michael Gingell, Robert Smiley (2) Passed May 22, 2025 RESOLUTION #2025-5307 _ 25-16 Sponsored By: Yolanda Smith Charles Executive's Office - Appropriation and Allocation of Funding for the Renovation of 31 E Judson and 51111 Woodward Avenue in Pontiac Chair and Members of the Board: WHEREAS in August 2023 the County purchased property to spearhead a transformational development project in downtown Pontiac via Resolutions #2023-3203_23-128 and #2023-3241_23- 132; and WHEREAS the County accepted grant funding in the amount of $50,000,000 from the Michigan Economic Development Corporation Grant (Case Number 400219), as amended, to support the cost of improvements to county operations, including, but not limited to, property acquisition, building renovations, blight removal, redevelopment of commercial green spaces, streetmaking, placemaking, and development of safe parking options for county and state workers and residents (Resolution #2024-3996_24-25); and WHEREAS the County has engaged the following vendors to move this project forward, which funding for such vendors has been approved and appropriated the Board of Commissioners: Farbman Group (Farbman) – Owner’s Representative (Resolution #2024-3886_24-010); Harely, Ellis, Devereaux Corporation (HED) - Architect/Engineer/Urban Planning (Resolution #2024-147_24-030); AECOM & Sidewalk Detroit - Community Engagement (Resolution #2024-149_24-031); Granger Construction (Granger) - Construction Manager (Resolution #2024-4538_24-75); and WHEREAS the transformational development project involves the renovation of a building located at 31 E. Judson Street (Main Building) and certain floors of 51111 Woodward Avenue, which will house County employees; and WHEREAS the County, working with Farbman, HED, and Granger, has arrived at a budget for the renovation of the Main Building and certain floors of 51111 Woodward Avenue; and WHEREAS the renovation was divided into three categories to allow: 1) Main Building (including certain floors of 51111 Woodward Avenue); 2) Conference Center Addition to the Main Building; and 3) Solar Project for the Main Building in the amount of One and Seventy-Four Million, Five Hundred Twenty- Five Thousand Dollars ($174,525,000) (collectively, the “Project”); and WHEREAS the County Executive’s Office requests that the Board of Commissioners appropriate and allocate funds as set forth below for the Project. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the Project in the amount of One and Seventy-Four Million, Five Hundred Twenty- Five Thousand Dollars ($174,525,000). BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the appropriation of Twenty-Five Million ($25,000,000) from the Strategic Investment Plan (GL383554) to the Pontiac Project Fund (FND42110), as detailed in the attached Schedule A-Budget Amendment. BE IT FURTHER RESOLVED that Oakland County intends to issue bonds to pay a portion of the Project costs 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 Project 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 $174,525,000. (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 renovated project is 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 Construction Manager, Granger, shall pay their subcontractors via ACH within five (5) business days after receipt of funds from Oakland County. All invoices submitted by the Construction Manager will certify that they will pay within five (5) business days and certify that they have met that timeframe on past invoices. BE IT FURTHER RESOLVED that Oakland County will be responsible for ensuring that the Construction Manager, Granger, shall competitively bid for all construction work identified in this project. All solicitations will be issued as Request for Proposals and be reviewed and approved by Oakland County Procurement prior to being issued. All solicitations will be outlined the criteria for evaluation, points will be assigned to bidders, which are: 1. Located in Certified Michigan Opportunity Zones/Certified Federal Hubzones (10 points); 2. Certified Veteran-Owned or Service Disabled Veteran Owned (10 points); 3. Small Business Micro (fewer than 10 employees) or Small Business Enterprises (10–49 employees - 10 points). BE IT FURTHER RESOLVED that the Oakland County Pontiac Project Development team will provide a monthly report to the Economic Development & Infrastructure Committee and Finance Committee, that identifies authorized expenditures to date and the remaining balance on funding that is authorized in this resolution. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: May 29, 2025 David Woodward, Commissioner Date: May 29, 2025 David Coulter, Oakland County Executive Date: June 05, 2025 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2025-05-14 Economic Development & Infrastructure - Forward to Finance 2025-05-14 Finance - Recommend to Board, as Amended 2025-05-22 Full Board - Adopt, as Amended Motioned by Commissioner Yolanda Smith Charles seconded by Commissioner Linnie Taylor to adopt as amended the attached Budget Amendment: Appropriation and Allocation of Funding for the Renovation of 31 E Judson and 51111 Woodward Avenue in Pontiac. Yes: Ann Erickson Gault, Marcia Gershenson, Brendan Johnson, Penny Luebs, Gwen Markham, William Miller III, Angela Powell, Yolanda Smith Charles, Linnie Taylor, David Woodward (10) No: Charles Cavell, Robert Hoffman, Karen Joliat, Christine Long, Kristen Nelson, Michael Spisz, Philip Weipert (7) Abstain: None (0) Absent: Michael Gingell, Robert Smiley (2) Passed ATTACHMENTS 1. CE-Pontiac Project_Schedule A-Budget Amendment 2. BOC ED&I Presentation 5-14-25 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 May 22, 2025, 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 on Thursday, May 22, 2025. Lisa Brown, Oakland County Clerk / Register of Deeds Oakland County, Michigan COUNTY EXECUTIVE - APPROPRIATION AND ALLOCATION OF FUNDING FOR THE RENOVATION OF THE BUILDING LOCATED AT 31 E JUDSON AND 51111 WOODWARD AVENUE, PONTIAC, MICHGIAN Schedule "A" DETAIL R/E Fund Name Division Name Fund # (FND) Cost Center (CCN) # Account # (RC/SC) Program # (PRG) Grant ID (GRN) # Project ID # (PROJ) Region (REG) Budget Fund Affiliate (BFA) Ledger Account Summary Account Title FY 2025 Amendment FY 2026 Amendment FY 2027 Amendment R Pontiac Development Fund Non Departmental FND42110 CCN9010101 RC695500 PRG148020 BFA10100 695500 Transfer In 25,000,000 -- Total Revenues 25,000,000 -- E Pontiac Development Fund Non Departmental FND42110 CCN9010101 SC760126 PRG148020 761000 Capital Outlay Miscellaneous 25,000,000 -- Total Expenditures 25,000,000 -- R General Fund Non Departmental FND10100 CCN9010101 RC665882 PRG196030 665882 Planned Use of Fund Balance 25,000,000 -- Total Revenues 25,000,000 -- E General Fund Non Departmental FND10100 CCN9010101 SC788001 PRG196030 BFA42110 788001 Transfer Out 25,000,000 -- Total Expenditures 25,000,000 -- Oakland County Pontiac Office Building Renovation Project5/13/2025 1 PONTIAC PROJECT | ED&I UPDATE 5/14/2025 OAKLAND COUNTY Oakland County Pontiac Office Building Renovation Project5/13/2025 2 REVISED URBAN PLANNING CONCEPTS DESIGN RECOMMENDATIONS / CONSIDERATIONS •Reinforce Saginaw Street •Connect County site to Park •Encourage diversity of active uses •Acknowledge the Clinton River •Reduce parking demand through street side parking, small/medium parking structures •Build connections to the northern downtown blocks Oakland County Pontiac Office Building Renovation Project5/13/2025 3 JUDSON ST. AUBURN ST. (PARALLEL PARKING) FUTURE PARK NEW PROMENADE NEW PARKING STRUCTURE 51111 WOODWARD 31 E JUDSON SURFACE PARKING (80 SPACES) SAGINAW ST. (ANGLED PARKING) REVISED URBAN PLANNING CONCEPTS DESIGN RECOMMENDATIONS / CONSIDERATIONS Oakland County Pontiac Office Building Renovation Project5/13/2025 4 REVISED URBAN PLANNING CONCEPTS DESIGN RECOMMENDATIONS / CONSIDERATIONS Oakland County Pontiac Office Building Renovation Project5/13/2025 5 REVISED URBAN PLANNING CONCEPTS DESIGN RECOMMENDATIONS / CONSIDERATIONS Oakland County Pontiac Office Building Renovation Project5/13/2025 6 EXISTING BUILDING FACADE Oakland County Pontiac Office Building Renovation Project5/13/2025 7 SOUTH FAÇADE SOLAR SHADE Roof Monitor (North Facing w/ Power Shade) Oakland County Pontiac Office Building Renovation Project5/13/2025 8 PERSPECTIVE SECTION THROUGH BUILDING Oakland County Pontiac Office Building Renovation Project5/13/2025 9 MEETING CENTER ENLARGED This plan requires less overall footage and relies on the existing tower to operate as a Prefunction and service aisle. It covers more of the north lobby which is not beneficial. This concept is not able to function with out the use of the towers north lobby. Oakland County Pontiac Office Building Renovation Project5/13/2025 10 SUSTAINABILITY APPROACHES REVIEW POTENTIAL SUSTAINABILITY TARGETS AND STRATEGIES Carbon Reduction Strategies: 1.Reduction and/or elimination of on-site fossil fuels 2.Alternative energy exploration (solar & geothermal) 3.Mindful material selection, reuse of materials 4.On site water collection for irrigation & greywater use 5.Conduct whole building Life Cycle Cost Analysis (LCA) CURRENT BASIS OF DESIGN IS LEED SILVER: The HED team has preliminarily evaluated the LEED checklist and determined the project currently aligns with “LEED Certified”. Additional points may be evaluated to pursue a higher level of Certification. TO GET TO LEED GOLD [Additional 6M] Adding Geothermal and Photovoltaic can add the following: o Extra 1-6 points for LEED Credit EA Optimize Energy Performance o Extra 1-2 points for LEED Credit EA Renewable Energy Production Adding Automatic Window Shading System can add the following: o Extra 1-2 points for LEED Credit IEQ Daylight Oakland County Pontiac Office Building Renovation Project5/13/2025 11 First Cost $$ / Oper Cost $$$ SUSTAINABILITY APPROACHES THE EXISTING BUILDING IS PERFORMING AT EUI 54 (KBTU/SF) ASSUMES NEW BUILDING ENCLOSURE First Cost $$$ / Oper Cost $First Cost $$$$/ Oper Cost $$ System Option 2: DOAS with VRF (Variable Refrigerant Flow) Heat and Cool $20 M – $24.4 M System Option 3: DOAS with Heat Recovery Chiller with Geothermal $25.6 M - $31.2 M Replace Like for Newer version of Like: VAV with Hydronic Re-heat / Centrifugal Chiller and Gas Fired Boiler $17.6 M - $21.6 M HED RECOMMENDS MORE INVESTIGATION AND COMPARISON OF THESE SYSTEMS 48% +/- Reduction 43% +/- Reduction 2035 = 50% reduction 2050 = Net Zero Carbon Emissions Oakland County Green House Gas Reduction Initiatives 20% +/- Reduction Oakland County Pontiac Office Building Renovation Project5/13/2025 12 SOLAR CONCEPTS REVIEW POTENTIAL SUSTAINABILITY TARGETS AND STRATEGIES Solar: Consideration for array at roof of penthouse Current Basis of Design provide setup infrastructure (Solar Ready) to have a system installed in the future. Install Now: $1.4M Install Down the Road: 2.4M