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HomeMy WebLinkAboutResolutions - 2026.05.21 - 42974 AGENDA ITEM: Purchase of 2110 Executive Hills Ct for Storage of the Oakland County Sheriff's Office DEPARTMENT: Facilities Management MEETING: Board of Commissioners DATE: Thursday, May 21, 2026 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2026-6550 _ 26-18 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Real Estate Yolanda Smith Charles INTRODUCTION AND BACKGROUND The Oakland County Sheriff Office (OCSO) currently leases a storage facility for certain equipment and vehicles. A summary of certain lease terms is shown in the following table. Facility Lease Expiration SF Annual Rent[1] Annual Operating[2] Quality Pontiac (OCSO - Storage) 11/29/2026 End of Last Extension 47,141 $258,105 ($5.48/SF) $93,550 ($1.99/SF) [1] Annual Rent for current rental period. [2] Estimated Annual Operating expenses for current rental period (e.g. property taxes, insurance, and utilities). The expenses may be higher due to a contractual obligation to reimburse the Lessor for certain maintenance, repairs, or other expense. At the January 14, 2026 ED&I Committee Meeting (Closed Session), County Administration received approval to begin the process of submitting a either letter of intent to lease or purchase agreement to buy a facility (Sam’s Club located at 495 Summit Drive having 117,000 SF on 14 acres with 245 parking spots) which would have addressed the OCSO’s storage and training needs. County Administration and the owner of the Sam’s Club could not come to an agreed lease or purchase price for that facility. At the March 25, 2026 ED&I Committee Meeting (Closed Session), County Administration and the OCSO provided an update on the additional properties that could be leased or purchased. At this time, the County Administration is presenting a Purchase Agreement for 2110 Executive Hills Ct. in Auburn Hills (Property) to serve as the OCSO storage facility. The Property is approximately 86,416 square feet comprised of warehouse (~53,206 square feet) and office (~27,210 square feet) space on 9.74 acres (the “Property”) and will give adequate room for operations and storage, replacing the need for the leased space at 2470 Elizabeth Lake Road, Waterford, Michigan. POLICY ANALYSIS The Sheriff’s Office is proposing a strategic transition from its current leased storage into a permanent facility located at 2110 Executive Hills Ct in Auburn Hills. This move would nearly double the operational footprint, expanding from the current 47,141 square feet of storage to a comprehensive 86,416 square foot facility that integrates both warehouse and office space. The transition is timed to coincide with the natural conclusion of the current lease, which expires November 29, 2026. This allows the Sheriff’s Office to utilize the existing space for staging and logistics while simultaneously managing the estimated $1.7 million build-out and furnishing of the new location. Financially, the acquisition involves an $11.3 million purchase price. The monthly payment would be approximately $61,882 (level, annual debt service at 4.25% for a period of twenty-five (25) years would be $743,574 or $66,882 per month). While this shifts the department to a more substantial monthly debt service, the investment secures a long-term capital asset and provides the necessary infrastructure to support both storage and administrative needs. Oakland County intends to issue bonds to reimburse Oakland County for or pay a portion of the costs of acquiring the Property or equipment and making necessary capital improvements. FISCAL IMPACT: Subsequent QR Budget Amendment Required 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 Edward Joss, Director Facilities Management-APP Brian Lefler, Chief Financial Officer Timothy Willis, Undersheriff Gaia Piir, Fiscal Officer ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 5/22/2026 David Woodward, Board of Commissioners Approved - 5/22/2026 David Coulter, Executive's Office Approved - 5/26/2026 Lisa Brown, Clerk/Register of Deeds Final Approval - 5/26/2026 AGENDA DEADLINE: 05/07/2026 4:30 PM ATTACHMENTS 1. AH Executive PSA - Seller Signed 4.28.26 COMMITTEE TRACKING 2026-05-13 Economic Development & Infrastructure - Forward to Finance 2026-05-13 Finance - Recommend to Board 2026-05-21 Full Board - Adopt Motioned by: Commissioner Michael Gingell Seconded by: Commissioner Penny Luebs Yes: Ann Erickson Gault, Michael Gingell, Marcia Gershenson, Robert Hoffman, Karen Joliat, Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen Nelson, Angela Powell, Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David Woodward (17) No: Charles Cavell (1) Abstain: None (0) Absent: Brendan Johnson (1) Passed May 21, 2026 RESOLUTION #2026-6550 _ 26-18 Sponsored By: Yolanda Smith Charles Facilities Management - Purchase of 2110 Executive Hills Ct for Storage of the Oakland County Sheriff's Office Chair and Members of the Board: WHEREAS Oakland County currently leases a 47,141 square foot storage facility at 2470 Elizabeth Lake Road, Waterford, Michigan for storage and operations for the Sheriff Office, which lease will end on November 29, 2026; and WHEREAS the Department of Facilities Management with the assistance of Corporation Counsel has negotiated the terms and conditions of the attached Purchase Agreement; and WHEREAS the building at 2110 Executive Hills Ct, Auburn Hills, Michigan is approximately 86,416 square feet comprised of warehouse (~53,206 square feet) and office (~27,210 square feet) space on 9.74 acres (the “Property”) and will give adequate room for operations and storage, replacing the need for the space at 2470 Elizabeth Lake Road, Waterford, Michigan; and WHEREAS the Departments of Facilities Management and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached Purchase Agreement and recommend its approval; and WHEREAS the Department of Facilities Management recommends that the Board of Commissioners approve the attached Purchase Agreement. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the attached Purchase Agreement and directs its Chair to execute such Purchase Agreement and further authorizes the Director of Facilities Management or their designee to sign the closing documents and all other documents needed to effectuate the purchase by and transfer of the Property to Oakland County. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes an appropriation not to exceed Thirteen Million Dollars ($13,000,000) from the Strategic Investment Plan (GL383554) to the appropriate fund to facilitate the purchase of the Property, to be included in a subsequent quarterly forecast report. BE IT FURTHER RESOLVED that Oakland County intends to issue bonds to reimburse Oakland County for or pay a portion of the costs of acquiring the Property or equipment and making necessary capital improvements, 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 Property and related capital improvements to the Property, including eligible soft costs, 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 Property, including issuance costs, is $13,000,000. 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 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. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: May 22, 2026 David Woodward, Commissioner Date: May 26, 2026 David Coulter, Oakland County Executive Date: May 26, 2026 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2026-05-13 Economic Development & Infrastructure - Forward to Finance 2026-05-13 Finance - Recommend to Board 2026-05-21 Full Board - Adopt Motioned by Commissioner Michael Gingell seconded by Commissioner Penny Luebs to adopt the attached Real Estate: Purchase of 2110 Executive Hills Ct for Storage of the Oakland County Sheriff's Office. Yes: Ann Erickson Gault, Michael Gingell, Marcia Gershenson, Robert Hoffman, Karen Joliat, Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen Nelson, Angela Powell, Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David Woodward (17) No: Charles Cavell (1) Abstain: None (0) Absent: Brendan Johnson (1) Passed ATTACHMENTS 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 21, 2026, 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 21, 2026. Lisa Brown, Oakland County Clerk / Register of Deeds