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HomeMy WebLinkAboutResolutions - 2026.08.13 - 43071 AGENDA ITEM: Project Plan Approval of the Lighthouse MI Project located in Pontiac DEPARTMENT: Economic Development MEETING: Board of Commissioners DATE: Thursday, August 13, 2026 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2026-6859 Motion to certify and approve the Project Plan for the Lighthouse MI Project located in the City of Pontiac, having been determined to constitute a public purpose as contemplated by the Economic Development Corporations Act; further, authorize the Oakland County Economic Development Corporation (EDC) to take such steps as are necessary to implement the Project and the financing thereof by the issuance of its limited obligation revenue bonds as contemplated by the Project Plan; further, direct the County Clerk to provide a certified copy of this resolution to the Assistant Secretary of the Board of the EDC. ITEM CATEGORY SPONSORED BY Resolution Yolanda Smith Charles INTRODUCTION AND BACKGROUND The Oakland County Economic Development Corporation ("EDC") is bringing forth the Resolution to Approve Project Plan for Lighthouse MI Project in the City of Pontiac. The EDC has recommended that the Board of Commissioners approve the Project Plan required by the Economic Development Corporations Act (the "Act") for the captioned Project, a copy of which has been presented to this meeting (the "Project Plan"). The EDC's recommendations to the Board of Commissioners were based upon its determinations that the Project is reasonable and necessary to effectuate the purposes of the Act, that the Project Plan satisfies all of the requirements of the Act regarding project plans and that a financial institution acceptable to the EDC will be purchasing the bonds proposed to be issued by the EDC. The governing body of the City of Pontiac, Oakland County, Michigan, has also approved the Project Plan. Previous steps for this project include the Board of Commissioners approving the Project Area and Project District Area through Resolution #2026-6740 _ 26-28 and the appointment of 2 additional Economic Development Corporation Directors, specific to this project, through Resolution #2026- 6741. Pursuant to PA 338 of 1974 and the Internal Revenue Code of 1986, as amended, a public hearing shall be held at the Board of Commissioners meeting on August 13, 2026 at 9:30 am. POLICY ANALYSIS The Lighthouse MI Project aligns with public policies that encourage the expansion of affordable emergency housing and supportive services for vulnerable families. By developing a 98-bed non- congregate shelter with private sleeping and bathing facilities, the project reflects best practices in emergency housing by promoting resident dignity, safety, and improved health outcomes while providing access to on-site support services. From an economic development perspective, the project is expected to generate short-term construction employment and long-term community benefits through expanded housing capacity and supportive services in Pontiac. Overall, the project advances local housing, public welfare, and economic development objectives while maintaining limited financial exposure for the issuing authority. Scope The Lighthouse MI Project includes the acquisition, construction, expansion, furnishing, equipping and improving of a new three-story, 98-bed "Housing Opportunity Center" to be located on the Lighthouse Campus. The Housing Opportunity Center will be operated as a non-congregate shelter (NCS) with individual sleeping and bath facilities for families focused on short-term emergency housing. The Housing Opportunity Center will also feature a two-story community dining center and resident activities and support services building and a one-story connector that links the new building to an existing family NCS, with an elevator to serve all levels of the existing building and connector. The Project is located at 130 Center Street, Pontiac, Michigan 48342. The construction contracts have been executed and construction has started. Construction of the 2026 Project commenced in January 2026 and is estimated to be substantially completed by August 2027. Cost The total project cost is $6,000,000. Bonds The plan of finance for the Project is for not to exceed $6,000,000 in principal amount of limited obligation revenue bonds (the “Bonds”) to be issued by the EDC in one or more series. The Bonds will be structured as tax exempt “qualified 501(c)(3) bonds” under Internal Revenue Code Section 145. The Bonds will be issued pursuant to a Bond Financing Agreement to be entered into among the EDC, the Applicant and PNC Bank, National Association, as purchaser of the Bonds. The proceeds of the Bonds will be loaned to the Applicant pursuant to the Bond Financing Agreement. The Bonds will be limited obligations of the EDC payable solely from funds received from the Applicant. The Bonds will be sold through private placement to PNC Bank, National Association with an anticipated closing date not later than October 31, 2026. FISCAL IMPACT: No Budget Amendment Needed 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 Catherine Rasegan, Administrator Financial Services ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 8/13/2026 AGENDA DEADLINE: 07/30/2026 4:30 PM ATTACHMENTS 1. EDC Project Plan - Lighthouse MI 2. EDC Oakland County - Lighthouse MI - Memo to C. Rasegan re Notice of Public Hearing 3. Lighthouse Public Hearing Notice Final COMMITTEE TRACKING 2026-08-06 Economic Development & Infrastructure - Recommend to Board 2026-08-13 Full Board - Adopt Motioned by: Commissioner Penny Luebs Seconded by: Commissioner Robert Hoffman Yes: Charles Cavell, Ann Erickson Gault, Marcia Gershenson, Robert Hoffman, Brendan Johnson, Karen Joliat, Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen Nelson, Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, David Woodward (16) No: None (0) Abstain: None (0) Absent: Michael Gingell, Philip Weipert (2) Passed THE ECONOMIC DEVELOPMENT CORPORATION OF THE COUNTY OF OAKLAND Oakland County, Michigan Lighthouse MI Project PROJECT PLAN CONTENTS 1. Summary Description of Project (Page 1) 2. Project Plan Certification by Borrower (Page 3) 3. Statutorily Required Information (Page 4) 4. Exhibits "A" - Project Area Legal Description "B” – Lighthouse Campus – Phase 1-1 and 1-2 Sources and Uses "C" - Transfer of Employment Certificate A-1 PROJECT PLAN SUMMARY DESCRIPTION OF LIGHTHOUSE MI PROJECT OWNER OF PROJECT: South Oakland Shelter d/b/a Lighthouse MI (the “Applicant” or the “Borrower”) is a Michigan nonprofit corporation. South Oakland Shelter merged with Lighthouse of Oakland County in 2019 to form a single organization now doing business as Lighthouse MI. Headquartered in Pontiac, Michigan, the organization alleviates poverty and homelessness through emergency shelter, food pantries, affordable housing development, and long-term stability services. Lighthouse provides a variety of essential community services, operating out of key locations across Oakland County, including Lathrup Village and Pontiac. Lighthouse recently broke ground on a multi-phase $40 million investment in its Pontiac campus to consolidate essential services under one roof and expand family shelter capacity. The Project will finance a portion of the costs of the initial phase construction of the Housing Opportunity Center. CONTACT PERSON: (Name, address, telephone number) Lighthouse MI 46156 Woodward Avenue Pontiac, MI 48342 Attn: Erin Casey, Chief of Staff office: 248.920.6000 extension: 2245 email: ecasey@lighthousemi.org LOCATION OF PROJECT: (Local municipality) 130 Center Street, City of Pontiac, Oakland County, Michigan 48342 (“Lighthouse Campus”) PROJECT AREA/DISTRICT AREA: See Exhibit A – Legal Description Attached NATURE OF PROJECT: “Project” means the acquisition, construction, expansion, furnishing, equipping and improving of a new three-story, 98-bed non-congregate shelter (NCS) to be located on the Lighthouse Campus, a two-story community dining center and resident activities and support services building for NCS residents, and a one-story connector that links the new building to an existing family NCS, with an elevator to serve all levels of the existing building and connector. The Housing Opportunity Center will be operated as a NCS with individual sleeping and bath facilities for families focused on short-term emergency housing. TOTAL PROJECT COST: See Exhibit B – Lighthouse Campus – Phase 1-1 and 1-2 Sources and Uses BONDS TO BE ISSUED: Not to exceed $6,000,000 BOND PURCHASER/UNDERWRITER: Bonds to be purchased by PNC Bank, National Association, for its own loan portfolio in a direct placement. 3 PROJECT PLAN CERTIFICATION This Project Plan was prepared for The Economic Development Corporation of The County of Oakland in accordance with the requirements of the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974, as amended. The undersigned has provided all of the information contained herein and hereby certifies as to the accuracy and validity of such information as of this date. The undersigned understands that this Project Plan is statutorily required and, if it contains any material misrepresentation or inaccuracy, could result in the invalidation of the economic development corporation proceedings regarding the Project to which the Project Plan pertains. SOUTH OAKLAND SHELTER, d/b/a LIGHTHOUSE MI, a Michigan nonprofit corporation By: ______________________________________ Name: Jenny Poma Its: Chief Operating Officer Dated: July 21, 2026 PROJECT PLAN STATUTORILY REQUIRED INFORMATION REGARDING LIGHTHOUSE MI PROJECT This Project Plan was prepared in accordance with the Economic Development Corporations Act, Public Act No. 338 of the Michigan Public Acts of 1974, as amended. Below is the requisite information based on Section 8(4) of the Act relating to the 2026 Project. (A) THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER PUBLIC FACILITIES WITHIN THE PROJECT DISTRICT AREA AND THE LOCATION, CHARACTER, AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRIVATE LAND USES THEN EXISTING AND PROPOSED FOR THE PROJECT AREA, INCLUDING RESIDENTIAL, RECREATIONAL, COMMERCIAL, INDUSTRIAL, EDUCATIONAL, AND OTHER USES, AND SHALL INCLUDE A LEGAL DESCRIPTION OF THE PROJECT AREA. Applicant worked with the City of Pontiac, Oakland County, and area utilities to vacate Hovey Street in order to secure the necessary footprint for the project. The Project will also: a. Construct drives, parking and sidewalks in accordance with current civil drawings, b. Extend and install underground utilities to site in accordance with current civil utility plan, and c. Create an underground stormwater retention system. The location of the Project Area is set forth in the legal description attached hereto as Exhibit A. The location of the improvements anticipated on the Project Area is illustrated in the Site Map, a copy of which has been provided to The Economic Development Corporation of the County of Oakland (the “EDC”) with the Applicant’s application. The Applicant owns the Project Area. The Project Area is currently used by the Applicant as a housing shelter and related services. (B) A DESCRIPTION OF EXISTING IMPROVEMENTS IN THE PROJECT AREA TO BE DEMOLISHED, REPAIRED OR ALTERED, A DESCRIPTION OF REPAIRS AND ALTERATIONS, AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION. The site plan has been approved at the City of Pontiac. There will be no significant changes from the submitted site plans that were approved. (C) THE LOCATION, EXTENT, CHARACTER, AND ESTIMATED COST OF THE IMPROVEMENTS, INCLUDING REHABILITATION CONTEMPLATED FOR THE PROJECT AREA AND AN ESTIMATE OF THE TIME REQUIRED FOR COMPLETION. The Project is located at 130 Center Street, Pontiac, Michigan 48342 See Exhibit B attached for the Project budget and sources and uses of funds. (D) A STATEMENT OF THE CONSTRUCTION OR STAGES OF CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF EACH STAGE. The construction contracts have been executed and construction has started. The Project will construct a 3-story building for use as a non-congregate shelter (NCS) for families, as well as a 2-story Dining Center and resident activities and support services building and a 1-story connector that links the two buildings. The connector will also link to an existing family NCS, with an elevator to serve all levels of the existing building and connector. Lighthouse MI owns the existing building, and acquisition or further renovations of the existing building are not part of the scope of the Project. Construction of the 2026 Project commenced in January 2026 and is estimated to be substantially completed by August 2027. (E) A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE. A copy of the Site Plan for the Project is on file with the office of the EDC and incorporated by reference herein. The Site Plan indicates the planned usages of the Project Area, including such areas which could be characterized as “open space.” (F) A DESCRIPTION OF PORTIONS OF THE PROJECT AREA WHICH THE CORPORATION DESIRES TO SELL, DONATE, EXCHANGE OR LEASE TO OR FROM THE MUNICIPALITY AND THE PROPOSED TERMS. The EDC will not sell, donate, exchange or lease any portion of the Project Area to or from the County of Oakland or the City of Pontiac. (G) A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN STREETS, STREET LEVELS, INTERSECTIONS AND UTILITIES. No changes to streets, or intersections for the public. Borrower is changing an internal road and utilities will be removed from the old structures and new utilities added for the new structure. The site was rezoned to CO to accommodate the intended use. No further change to zoning or public streets are necessary for the Project. (H) A STATEMENT OF THE PROPOSED METHOD OF FINANCING THE PROJECT INCLUDING A STATEMENT BY A PERSON DESCRIBED IN SUBPARAGRAPH (J) INDICATING THE PAYMENT TO ALL PERSONS PERFORMING WORK ON THE CONSTRUCTION PROJECT OF THE PREVAILING WAGE AND FRINGE BENEFIT RATES FOR THE SAME OR SIMILAR WORK IN THE LOCALITY IN WHICH THE WORK IS TO BE PERFORMED, AND A STATEMENT OF THE ABILITY OF THE CORPORATION TO ARRANGE THE FINANCING. THE PREVAILING WAGE AND FRINGE BENEFIT RATES SHALL BE DETERMINED PURSUANT TO ACT NO. 166 OF THE PUBLIC ACTS OF 1965, AS AMENDED, BEING SECTIONS 408.551 to 408.558 OF THE MICHIGAN COMPILED LAWS. The plan of finance for the Project is for not to exceed $6,000,000 in principal amount of limited obligation revenue bonds (the “Bonds”) to be issued by the EDC in one or more series. The Bonds will be structured as tax exempt “qualified 501(c)(3) bonds” under Internal Revenue Code Section 145. The Bonds will be issued pursuant to a Bond Financing Agreement to be entered into among the EDC, the Applicant and PNC Bank, National Association, as purchaser of the Bonds. The proceeds of the Bonds will be loaned to the Applicant pursuant to the Bond Financing Agreement. The Bonds will be limited obligations of the EDC payable solely from funds received from the Applicant. The Bonds will be sold through private placement to PNC Bank, National Association with an anticipated closing date not later than October 31, 2026. With respect to the payment of prevailing wage and fringe benefit rates, Act No. 166 of 1965, as amended, MCL 408.551 to 408.558, was repealed in 2018. Michigan’s current prevailing wage law (Act No. 10 of 2023, as amended, MCL 408.1101, et. seq.) only covers construction workers employed on state financed or sponsored construction projects. The 2026 Project does not qualify as a state financed or sponsored construction project and is therefore not subject to the state prevailing wage law. (I) A LIST OF PERSONS WHO WILL MANAGE OR BE ASSOCIATED WITH THE MANAGEMENT OF THE PROJECT FOR A PERIOD OF NOT LESS THAN 1 (ONE) YEAR FROM THE DATE OF APPROVAL OF THE PROJECT PLAN. Ryan Herz, President & Chief Executive Officer Erin Casey, Chief of Staff Dr. Rita Fields: Chief Talent & Strategy Officer Mary Riegle: Chief Philanthropy Officer Todd Burk: Chief Real Estate and Community Development Officer Kris Bishop: Chief Financial Officer Jenny Poma, Chief Operating Office (J) DESIGNATION OF THE PERSONS OR PERSONS, NATURAL OR CORPORATE, TO WHOM THE PROJECT IS TO BE LEASED, SOLD OR CONVEYED AND FOR WHOSE BENEFIT THE PROJECT IS BEING UNDERTAKEN IF THAT INFORMATION IS AVAILABLE TO THE CORPORATION. The Project is being undertaken for the benefit of the Applicant. The land and buildings are owned by the Applicant or its affiliate. The Project will provide emergency housing corresponding services for homeless families in Oakland County. The Project is not expected to be sold or conveyed to any other party. (K) IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT BETWEEN THE CORPORATION AND PERSONS, NATURAL OR CORPORATE, THAT THE PROJECT WILL BE LEASED, SOLD, OR CONVEYED TO THOSE PERSONS, THE PROCEDURES FOR BIDDING FOR THE LEASING, PURCHASING OR CONVEYING OF THE PROJECT UPON ITS COMPLETION. Not applicable. (L) ESTIMATES OF THE NUMBER OF PERSONS RESIDING IN THE PROJECT AREA AND THE NUMBER OF FAMILIES AND INDIVIDUALS TO BE DISPLACED. IF OCCUPIED RESIDENCES ARE DESIGNATED FOR ACQUISITION AND CLEARANCE BY THE CORPORATION, A PROJECT PLAN SHALL INCLUDE A SURVEY OF THE FAMILIES AND INDIVIDUALS TO BE DISPLACED, INCLUDING THEIR INCOME AND RACIAL COMPOSITION, A STATISTICAL DESCRIPTION OF THE HOUSING SUPPLY IN THE COMMUNITY, INCLUDING THE NUMBER OF PRIVATE AND PUBLIC UNITS IN EXISTENCE OR UNDER CONSTRUCTION, THE CONDITION OF THOSE IN EXISTENCE, THE NUMBER OF OWNER-OCCUPIED AND RENTER-OCCUPIED UNITS, THE ANNUAL RATE OF TURNOVER OF THE VARIOUS TYPES OF HOUSING AND THE RANGE OF RENTS AND SALE PRICES, AN ESTIMATE OF THE TOTAL DEMAND FOR HOUSING IN THE COMMUNITY, AND THE ESTIMATED CAPACITY OF PRIVATE AND PUBLIC HOUSING AVAILABLE TO DISPLACED FAMILIES AND INDIVIDUALS. The only residents residing within the Project Area are Lighthouse’s non-congregate shelter clients. There are no non-Applicant affiliated residents residing in the Project Area; consequently, none will be displaced. (M) A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT AREA. Not applicable. No persons are being displaced by the 2026 Project. (N) PROVISION FOR THE COSTS OF RELOCATING PERSONS DISPLACED BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSEMENT OR EXPENSES, INCLUDING LITIGATION EXPENSES AND EXPENSES INCIDENT TO THE TRANSFER OF TITLE, IN ACCORDANCE WITH THE STANDARDS AND PROVISIONS OF THE FEDERAL UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970, 42 U.S.C. 4601 TO 4655. Not applicable. No persons are being displaced by the 2026 Project. (O) A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF THE PUBLIC ACTS OF 1972, BEING SECTIONS 213.321 TO 213.332 OF THE MICHIGAN COMPILED LAWS. Not applicable. No persons are being displaced by the 2026 Project. (P) OTHER MATERIAL AS THE CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS PERTINENT. None A-1 EXHIBIT A Project Area Land in the City of Pontiac, Oakland County, Michigan described as: LOTS 1, 2, 3, 4, 5, 6, 7, AND 8, THE VACATED ALLEY ADJACENT TO SAID LOTS, 1/2 OF VAC ALLEY ADJACENT TO LOTS 9 AND 10, ALL IN BLOCK 1 AND THAT PORTION OF HOVEY STREET (50 FEET WIDE) OF THE MAP OF TREGENT AND STOCKWELL'S PLAT OF PONTIAC MICHIGAN, ACCORDING TO THE PLAT THEREOF AS RECORDED IN UBER 4 OF PLATS, PAGE 34, OAKLAND COUNTY RECORDS, LOCATED IN THE NORTHWEST 1/4 OF SECTION 33, T. 3 N., R. 10 E., CITY OF PONTIAC, OAKLAND COUNTY, MICHIGAN, AND BEING MORE PARTICULARLY AS FOLLOWS: COMMENCING AT A POINT ON THE INTERSECTION OF THE SOUTHERLY RIGHT-OF- WAY LINE OF COTTAGE STREET (WIDTH VARIES) AND THE EASTERLY RIGHT-OF- WAY LINE OF WOODWARD AVENUE (WIDTH VARIES); THENCE N. 87°07'52" E. 325.00 FEET ALONG THE SOUTHERLY RIGHT-OF-WAY LINE TO A POINT ON THE WIESTERL Y RIGHT-OF-WAY LINE OF SAID HOVEY STREET, ALSO BEING THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID SOUTHERLY LINE N. 87°07'52" E. 331.45 FEET TO A POINT ON THE WESTERLY RIGHT-OF-WAY LINE OF CENTER STREET (60 FEET WIDE); THENCE ALONG SAID LINE S. 03°00'48" E. 155.00 FEET TO A POINT ON THE NORTHERLY LINE OF SAID LOT 1 O; THENCE S. 87°06'04" W. 122.49 FEET ALONG SAID NORTH LINE OF LOTS 10 AND 9 TO A POINT ON THE WIESTERL Y LOT LINE OF SAID LOT 9; THENCE S. 02° 44'34" E. 140.07 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY LINE OF PARK PLACE (89 FEET WIDE); THENCE ALONG SAID LINE S. 87°04'08" W. 211.50 FEET TO A POINT ON THE WESTERLY RIGHT-OF- WAY LINE OF SAID HOVEY STREET; THENCE ALONG SAID LINE N. 02°23'32" W. 295.37 FEET TO THE POINT OF BEGINNING. TAX PARCELS: 14-33-152-001, 14-33-152-002, 14-33-152-003, 14-33-152-004, 14-33-152-005, 14-33-152-006, 14-33-152-007, 14-33-152-008, 14-33-152-011, 14-33-152-013 AND VACATED HOVEY STREET. EXHIBIT B Project Budget Sources Private Philanthropy/Governmental Funding Sources Phase 1-1 -2 Received $11,715,693 Committed - Not received 5,744,273 FHLBI AHP Award 1,000,000 Bond Proceeds 4,914,697 $ Acquisition Cost – Land $1 $1 Construction Hard Costs Predevelopment Costs 87,491 - 87,491 Construction Costs 11,529,907 7,842,364 19,372,271 P&P Bonds - 100,000 100,000 Builder's Risk - 100,000 100,000 Building Permits 152,000 100,000 252,000 FF&E 200,000 200,000 400,000 Owner Contingency 449,671 324,441 774,112 Total Construction Hard Costs 12,419,069 8,666,805 21,085,874 Soft Costs Architectural 575,176 380,291 955,467 Engineering & Survey (Inc. Geotechnical) 90,000 25,000 115,000 Rezoning/SPA signage 1,331 1,331 2,662 Consulting & Owner's Rep - Real Estate 100,000 100,000 200,000 Draw Accounting 24,000 24,000 48,000 Lender Inspections / 3rd-party reports inc. appraisal 25,000 25,000 50,000 Environmental 36,000 - 36,000 Title Insurance 38,116 20,000 58,116 Legal Fees - Owner 150,000 - 150,000 Consulting 8,100 - 8,100 Soft Cost Contingency 50,000 50,000 100,000 Bridge/Source Loan Interest Reserve 265,039 184,961 450,000 Loan Fees - Lenders 50,324 35,119 85,443 Legal Fees - Lenders 17,669 12,331 30,000 1,430,755 858,033 2,288,788 A-1 EXHIBIT C TRANSFER OF EMPLOYMENT CERTIFICATE (Lighthouse MI Project) The undersigned, South Oakland Shelter d/b/a Lighthouse MI, a Michigan nonprofit corporation (the "Applicant"), hereby certifies to The Economic Development Corporation of the County of Oakland (the "EDC") as follows: 1. This Certificate is made and based upon the best of the Applicant's knowledge and belief, only after thorough investigation and discussion with all owners of the Applicant and others who might have knowledge regarding the subject matter. 2. The Applicant acknowledges that this Certificate will be employed by the EDC as the sole basis for the EDC's certification to the Board of Commissioners of the County of Oakland as to transfer of employment as required by Section 8(3) of the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974, as amended (the "Act"). 3. The Applicant understands that the EDC's Certification to the Board of Commissioners of the County of Oakland is a statutory requirement which, if improperly made or based upon any material misrepresentation or inaccuracy, might invalidate the proceedings regarding Lighthouse MI (the "Project") pursuant to which the EDC expects ultimately to issue its limited obligation economic development revenue bonds to finance all or part of the Project. 4. As of the date hereof, the Project shall not have the effect of transferring employment of more than 20 full-time persons from a municipality (as that term is defined in the Act) of this State to the City of Pontiac, the municipality in which the Project will be located. 5. The Applicant understands that a covenant to effectuate the purposes of this Certificate will be included in those covenants to be made by the Applicant when bonds are issued by the EDC for the benefit of the Project. SOUTH OAKLAND SHELTER, d/b/a LIGHTHOUSE MI, a Michigan nonprofit corporation By: ______________________________________ Name: Jenny Poma Its: Chief Operating Officer Dated: July 21, 2026 4930-9265-9898 v2 [9723-32] MEMORANDUM TO: Catherine J. Rasegan, Assistant Secretary of The Economic Development Corporation of the County of Oakland FROM: Craig W. Hammond, Dickinson Wright PLLC DATE: July 21, 2026 SUBJECT: Public Hearing regarding issuance of EDC of the County of Oakland/Lighthouse MI Series 2026 Bonds South Oakland Shelter, d/b/a Lighthouse MI, a Michigan nonprofit corporation (“Lighthouse”), has requested the EDC’s assistance in financing (i) the acquisition, construction, expansion, furnishing, equipping and improving of a new three-story, 98-bed non-congregate shelter (NCS), a two-story community dining center and resident activities and support services building for NCS residents, and a one-story connector that links the new building to an existing family NCS, with an elevator to serve all levels of the existing building and connector located at 130 Center Street, City of Pontiac, Oakland County, Michigan, and (ii) the costs of issuing the Bonds. The proposed bond issuance would not exceed $6,000,000. The Internal Revenue Code of 1986, as amended (the “Code”), requires that, as a condition precedent to the issuance of tax -exempt private activity bonds, a public hearing must be held by the governing body of the governmental unit in which the economic development corporation is located, and the issuance of the new bonds must then be approved by such governing body. In the past, in connection with the EDC’s issuance of bonds for new projects, the Board of Commissioners has always held the public hearing required by the EDC Act and the Code and has approved the issuance of the bonds by the EDC. To comply with the requirements of the Code, the EDC is now requesting that the Board of Commissioners similarly hold a public hearing for the proposed bonds and approve the issuance of the bonds by the EDC, as it has in connection with other projects in the past. Please do not hesitate to contact me if you have any questions regarding the subject matter of this memorandum or the proposed bonds. Respectfully, Craig W. Hammond 4848-6256-0497 v2 [9723-29] NOTICE OF PUBLIC HEARING REGARDING THE ISSUANCE OF BONDS that the Board of Commissioners of the County of Oakland, Michigan, will hold a hearing in the Commissioners’ Auditorium, 1200 North Telegraph Road, Pontiac, Michigan, on Thursday, August 13, 2026, beginning at 9:30 a.m. Eastern Time. The hearing shall consider whether the Board of Commissioners should approve the issuance of bonds (the “Bonds”) by The Economic Development Corporation of the County of Oakland (the “EDC”) for South Oakland Shelter d/b/a Lighthouse MI, a Michigan nonprofit corporation (the “Borrower”). The hearing is required by the Internal Revenue Code of 1986, as amended (the “Code”), because the proceeds of the Bonds proposed to be issued will be used to finance the 2026 Project described below and to pay costs of issuing the Bonds. A public hearing is a condition precedent under the Code to issuing tax-exempt bonds for such purposes. 2026 Project Description: A portion of the proceeds of the Bonds will be used to finance all or a portion of the costs of the acquisition, construction, expansion, furnishing, equipping and improving of a new three- story, 98-bed non-congregate shelter (NCS), a two-story community dining center and resident activities and support services building for NCS residents, and a one-story connector that links the new building to an existing family NCS, with an elevator to serve all levels of the existing building and connector (collectively, the “2026 Project”) located on the Borrower's Campus at 130 Center Street, City of Pontiac, Oakland County, Michigan (the “Lighthouse Campus”), and to pay costs of issuing the Bonds. The Bonds will be issued in a maximum principal amount of $6,000,000 for the 2026 Project and bond issuance costs. The owner and operator of the 2026 Project to be financed with the proceeds of the Bonds is the Borrower, a Michigan nonprofit corporation with a charitable mission to alleviate poverty and homelessness through emergency shelter, food pantries, affordable housing development, and long-term stability services. The Bonds will be limited obligations of the EDC, payable only from loan repayments to be made by the Borrower to the EDC and certain other security to be provided by the Borrower. The Bonds will not constitute an indebtedness of the EDC, the County of Oakland or any political subdivision thereof within the meaning of any constitutional or statutory provision and will not constitute or give rise to a charge against the general credit of the EDC or the credit or taxing power of the County of Oakland or any political subdivision thereof. The EDC has no taxing power. The Board of Commissioners will consider whether to approve the issuance of the Bonds by the EDC, which are authorized to be issued by the EDC pursuant to Act 338, Public Acts of Michigan, 1974, as amended, as required by the Code. Information related to the Bonds and the 2026 Project is available for public inspection at the Office of Oakland County Economic Development & Community Affairs, Bldg. 41 West, 2100 Pontiac Lake Road, Waterford, Michigan, between the hours of 8:00 a.m. and 5:00 p.m., weekdays. Any aspect of the planned financing may be discussed at the public hearing and all interested persons will be given an opportunity to be heard. The hearing will provide the fullest opportunity for expression of opinion, arguments on the merits and introduction of documentary evidence relative to the financing. If you would prefer to send written comments for consideration, please forward them to Catherine Rasegan, Administrator, Financial Services, at the above address. If you have questions, you may call (248) 858-5101. Lisa Brown Oakland County Clerk Register of Deeds