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HomeMy WebLinkAboutResolutions - 2007.05.24 - 9288MISCELLANEOUS RESOLUTION #07135 May 24, 2007 BY: Planning and Building Committee, Sue Ann Douglas, Chairperson IN RE: WASTE RESOURCE MANAGEMENT UNIT - RESOLUTION APPROVING THE PROVISIONS OF A BROWNFIELD PLAN FOR THE 4700 LAPEER ROAD PROJECT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen 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 (OCBRA) to facilitate the cleanup and redevelopment of Brownfields within Oakland County's communities: and WHEREAS the 4700 Lapeer Road site in Orion Township is an environmental hazard, a "facility" under state statute and a non-producing parcel: and WHEREAS a Brownfield cleanup and redevelopment plan (the "Plan") has been prepared to restore the environmental and economic viability of this parcel, which the OCBRA has reviewed and modified; and WHEREAS pursuant to OCBRA by-laws, a local committee has been appointed, participated in discussions regarding the proposed plan and project, reviewed the plan, and recommends its approval; and WHEREAS the members of the Township Board have reviewed the Plan, and have been provided a reasonable opportunity to express their views and recommendations regarding the Plan in accordance with Sections 13 (13) of the Act, and have unanimously approved the resolution declaring their concurrence with the provisions of the Plan (attached); and WHEREAS the OCBRA, pursuant to and in accordance with Section 13 of the Act, has unanimously approved a resolution (attached) adopting the Plan, procedures for cost reimbursement, and recommends the adoption of the Plan by the Planning and Building Committee and the Board of Commissioners to be carried out within the Township of Orion, relating to the redevelopment of 4700 Lapeer Road located at M-24 and north of Brown Road (the "Property"). NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby adopt the Plan to be carried out within the Township of Orion. relating to the redevelopment of 4700 Lapeer Road located at M-24 and north of Brown Road (the "Property"). BE IT FURTHER RESOLVED that a public hearing on the adoption of the Brownfield Plan approved by the Oakland County Brownfield Redevelopment Authority for 4700 Lapeer Road in Orion Township shall be held on May 24, 2007, at 9:40 a.m., in the Board of Commissioners' Auditorium, 1200 North Telegraph Road, Pontiac, Michigan. Chairperson, on behalf of the Planning 8, Building Committee. I move the adoption of the foregoing resolution. PLANNING & BUILDING COMMITTEE PLANNING & BUILDING COMMITTEE VOTE: Motion carried on a roll call vote with Jacobsen and Gosselin absent. STATE OF MICHIGAN COUNTY OF OAKLAND CHARTER TOWNSHIP OF ORION RESOLUTION REGARDING PROPOSED BROWNFIELD REDEVELOPMENT PROJECT AT 4700 S. LAPEER ROAD WHEREAS the Charter Township of Orion has a Brownfield project commonly known as the 4700 Lapeer Road Project that it would like to have reviewed and processed by the Oakland County Brownfield Redevelopment Authority; and WHEREAS the Charter Township of Orion has not created a Brownfield Authority; and WHEREAS the Oakland County Brownfield Redevelopment Authority (OCBRA) was created by Oakland County, pursuant to MCL 125.2651 et seq., to assist jurisdictions like the Charter Township of Orion that do not have their own Brownfield Authority; and WHEREAS the Oakland County Brownfield Redevelopment Authority is prepared to assist the Charter Township of Orion by reviewing the proposed 4700 S. Lapeer Road Project, provided that the Charter Township of Orion acknowledges certain rights that the Oakland County Brownfield Redevelopment Authority has, to wit: • OCBRA may collect, pursuant to State statute, an administrative fee not to exceed $75,000.00 per year for the length of the Brownfield plan. In this project, OCBRA intends to collect an administrative fee not to exceed $46,000 over 16 years; and • OCBRA intends to capture and collect an amount up to 100% ($145,000 stretched over five years, 2019-2023) of the eligible costs for the Brownfield project, and that such funds will be placed in the OCBRA revolving loan fund for future remediation projects; and WHEREAS the Charter Township of Orion will have the opportunity to provide public comment on any Brownfield plan (including the amount of the administrative fee to be collected and the amount captured for the revolving loan fund) before it is finally adopted by the OCBRA and/or the Oakland County Board of Commissioners; NOW BE IT THEREFORE RESOLVED that the Charter Township of Orion requests that the OCBRA undertake review of the 4700 S. Lapeer Road Project; and IT IS FURTHER RESOLVED that the Charter Township of Orion acknowledges and understands that OCBRA intends to collect certain administrative fees and capture certain taxes for its revolving loan fund, which will be specified in detail in any Brownfield Plan before it is finally adopted. On a motion by Trustee Gibb, seconded by Trustee Garlicki, the resolution was adopted, as amended, with the Board Members voting as follows: AYES: Young, Porter, Gibb, Bastian, Steimel, Garlicki, Dywasuk. NAYS: None. ABSENT: None. ABSTENSION: None. The Supervisor declared the resolution adopted. CERTIFICATION I. Jill D. Bastian, duly elected Clerk of the Charter Township of Orion, do hereby certii5) that the foregoing is a true and accurate copy of a resolution adopted by the Charter Township of Orion Board of Trustees at a regular meeting held on Monday, March 19, 2007. Jg'b . Bastian, Clerk Charter Township of Orion Date: A .5. 24. o 7 rSTABLISHMENT OF A COMMITTEE FOR THE 4700 LAPEER ROAD BROWNFIELD SITE March 27 2007 WHEREAS, per the Oakland County Brownfield Redevelopment Authority (BRA) Bylaws, Article II Section 9. Not less than sixty days prior to the submittal of any proposed Brownfield redevelopment plan to the BOC pursuant to Section 14(a) of the Act, by resolution 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, Thomas Law (Oakland County BRA) and Gerald Dywasuk (Charter Township of Orion) were designated to serve on the Local Host Committee on Tuesday March 13, 2007 for the 4700 Lapeer Road project. WHEREAS, all parties involved with this project and the specific persons nominated for this committee have been meeting on this project starting in March of 2007: and, WHEREAS, today is the first scheduled meeting in which the Oakland County BRA can vote on this resolution. THEREFORE, be it resolved, to tprove and ratify the appointment of Thomas Law (Oakland County BRA) along„)Niiih 'Gerald Dywasuk (Charter Township of Orion) to serve on the 4700 Lapeer lb* pre*: t committee. Yeas- Crawford, Hunter, Law, Webster, Williams, Wilson Nays- Absent- Coulter, Etkin, Lerminiaux tivi4vvi Thomas A. Law Secretary Oakland County Brownfield Redevelopment Authority RESOLUTION TO APPROVE A BRO'WNFIELD REDEVELOPMENT PLAN FOR THE 4700 LAPEER ROAD BROWNFIELD SITE March 27, 2007 WHEREAS, the 4700 Lapeer Road site has been a long-standing environmental hazard, a "facility' under state statute, and a non-producing parcel for many years; and, WHEREAS, a clean up and redevelopment plan has been established to restore the environmental and economic viability of this parcel; and, WHEREAS, a local committee has been appointed, reviewed the plan and recommends its approval; and, WHEREAS, the BRA Board has reviewed and modified the proposed plan; now, WHEREAS, to approve the Brownfield Redevelopment Plan for the 4700 Lapper Road as presented and considered at the March 27, 2007 OCBRA Board meeting, along with the procedures for cost reimbursement, both attached; and, THEREFORE, BE IT RESOLVED, the Brownfield Plan for the 4700 Lapeer Road project was approved by the OCBRA on March 27, 2007 by a majority vote of six yeas to zero Nays. BE IT FURTHER RESOLVED, to recommend the adoption of this plan by the Oakland County Board of Commissioners, and its Planning & Building and Finance Committee's Yeas: Crawford, Hunter, Law, Webster, Williams, Wilson Nays: Absent: Coulter, Etkin, Lerminiaux L44 at Thomas A. Law Secretary Oakland County Brownfield Redevelopment Authority STATE OF MICHIGAN COUNTY OF OAKLAND CHARTER TOWNSHIP OF ORION RESOLUTION CONCURRING WITH THE PROVISIONS OF A BROWNFIELD PLAN ADOPTED BY THE OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY FOR THE 4700 LAPEER ROAD PROJECT RECITATIONS: 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 Brownfield Redevelopment Authority and Board (OCBRA) to facilitate the clean up and redevelopment of Brownfields within Oakland County's communities; and WHEREAS, the property located at 4700 Lapeer Road in Orion Township is an environmental hazard, a "facility' under 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 which the OCBRA has reviewed and approved; and WHEREAS, pursuant to OCBRA by-laws, a local committee has been appointed, participated in discussions regarding the proposed plan and project, reviewed the plan, and recommends its approval; and WHEREAS, the OCBRA, pursuant to and in accordance with Section 13 of the Act, shall consider recommending that the Oakland County Board of Commissioners approve the Brownfield Plan to be carried out within the Township of Orion, relating to the redevelopment of the property located at 4700 Lapeer Road (the "Property -); and WHEREAS, the members of the Township Board have reviewed the Plan, and have been provided a reasonable opportunity to express their views and recommendations regarding the Plan in accordance with Sections 13(13) of the Act; and NOW THEREFORE BE IT RESOLVED THAT the Township Board of Trustees of the Charter Township of Orion hereby concurs with the provisions of the Plan including approval of the Plan by the Oakland County Board of Commissioners and implementation of the Plan by the Oakland County Brownfield Redevelopment Authority. BE IT FURTHER RESOLVED THAT should any section, clause or phrase of this Resolution be declared by the courts to be invalid, the same shall not affect the validity of this Resolution as a whole nor any part thereof other than the part so declared to be invalid. By: ILL D. BASTIAN, CLERK BE IT FURTHER RESOLVED THAT all resolutions or parts of resolutions in conflict with any of the provisions of this Resolution are hereby repealed. AYES: BAST/Ad) 37-Er 1\1E4, Po kTgak) yodN6, 6/66, ARL /c41,73YWASUk, NAYS: NONE, ABSTENTIONS: iV N ABSENT: N O/1f CERTIFICATION It is hereby certified that the foregoing Resolution is a true and accurate copy of the Resolution adopted by the Township Board ççf the Charter Township of Orion at a meeting duly called and held on the 7 6 4-A— day of 6J4J1t , 2007. CHARTER TOWNSHIP OF ORION 2 OAKLAND COUNTY BROWN FIELD REDEVELOPMENT AUTHORITY BROWNFIELD REDEVELOPMENT PLAN Amendment No. FOR 4700 S. Lapeer Road Property Orion Township, Michigan March 6, 2007 Prepared For: Kemp Building and Development 275 West Girard Madison Heights, MI 48071 Prepared By: ASTI Environmental 10448 Citation Drive Brighton, Michigan 48116 ASTI Project No. 6081 OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 4700 S. LAPEER ROAD PROPERTY MARCH 6, 2007 Table of Contents Project Summary I. INTRODUCTION 1 II. GENERAL PROVISIONS 2 A. Description of Eligible Property. 2 B. Basis of Eligibility 3 III. PROJECT DESCRIPTION 4 A. Description of Cost to be Paid & Summary of Eligible Activities 4 B. Estimate of Captured Taxable Value and Tax Increment Revenues Impact of Tax Increment Financing on Taxing Jurisdictions 6 C. Impact of Tax Increment Financing on Taxing Jurisdictions 9 D. Method of Financing & Description of Advances 9 E. Plan of Financing Maximum Amount of Indebtedness 9 F. Duration of Plan 9 G. Effective Date of Inclusion in Brownfield Plan 10 H. Displacement/Relocation of Individuals 10 I. Local Site Remediation Revolving Fund 10 J. Other Material 10 TABLES Table 1: Estimated Tax Recature 5 Table 2: Example Tax Capture 7 Table 3: Funding Sources 11 ATTACHMENTS Figure 1: Site Location Map Figure 2: Site Features Map Estimated Total Investment: Annual Tax Revenues Before Project: Annual Tax Revenues After Project: Basis for Eligibility: Eligible Expenses: Years for Reimbursement: OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 4700 S. LAPEER ROAD PROPERTY MARCH 6, 2007 Project Name: Developer: Project Location: Project Overview: Eligible Activities: Project Summary Kemp & Peyerk Orion Kemp Building and Development Single parcel located at 4700 S. Lapeer Road in Orion Township, Michigan The project will redevelop 3.87 acres of former industrial property. The Property consists of vacant land previously containing a single building. Historically the site was light industrial use including a steel fabrication and metal working operation from the 1960s, until it burned down in 2006. Remediation of environmental impacts will be completed as part of this project. $4,800,000 $10,900 (based on adjustment for vacant land) $101,000 (total tax based on estimated value of real property as of 2008 when project is complete) The parcel is contaminated and therefore qualifies as a facility as defined in Part 201 of Michigan Act 451. Eligible activities include remediation of environmental impacts, environmental investigations, due care, administrative controls, and preparation of environmental reports. $275,000 11 (using assumptions described in the Plan, Table 1) BROWNFIELD PLAN 4700 S. LAPPER ROAD PROPERTY JANUARY 13, 2007 1. INTRODUCTION The Oakland County Brownfield Redevelopment Authority (the Authority) was created by Oakland County (the County) under the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as amended (Act 381). The primary purpose of Act 381 and the Authority is to encourage the redevelopment of contaminated property by providing economic incentives through tax increment financing for eligible activities and Brownfield Redevelopment Single Business Tax Credits for eligible investments. The Oakland County Brownfield Plan (the Plan) describes what defines a property as an "eligible property", including conditions for classifying a property as a "facility". In addition, it describes the extent of the proposed redevelopment project, the methods for redevelopment, and the amount of tax dollars generated by the project that will be used to finance the redevelopment. Once approved, the Plan will serve as a guide for implementation of the project. This Plan Amendment describes the redevelopment of a former light industrial and steel fabrication facility located at 4700 S. Lapper Road in Orion Township, Michigan. The Plan Amendment includes all information required by the Authority for review and approval. All terms used in this Plan are defined as provided in the applicable statues, including; The Brownfield Redevelopment Financing Act, 1996, Michigan Public Acts 381, M.C.L. § 125.2651 et seq., as amended; Sections 38d and 38g of the Single Business Tax Act, 1975 Michigan Public Acts 228, M.C.L. § 208.1-208.145, as amended; and Part 201 of the Natural Resources and Environmental Protection Act, 1994 Michigan Public Acts 451, M.C.L. § 324.20101 et seq., as amended (Part 201). All references in section headers are for The Brownfield Redevelopment Financing Act, 1996, Michigan Public Acts 381, M.C.L. § 125.2651 et seq., as amended. 1 Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Properly II. GENERAL PROVISIONS A. Description of Eligible Property (Section 13(1)(h)) The eligible property for this Plan consists of a single parcel of approximately 3.87 acres located on Lapeer Road, just north of Brown road and west of S. Lapeer Road in Orion Township, Oakland County, Michigan (Figure 1). The Property is currently vacant, consisting of the former building slab foundation, two truck wells, asphalt parking area, concrete drive, wooded and lowland areas, and landscaping (Figure 2). The Property was used as a farmstead from at least 1940 through the 1960s. Between 1963 and 1972, a light industrial building was constructed on the eastern portion of the Property. The building was renovated and approximately 20,000 square feet were added to the building in 1974. The building was used for storage by Canterbury Village between 1996 and the time the building burned on January 6, 2006. The Property is currently zoned for light industrial use. The developer, Kemp Building and Development (the Developer) intends to construct and lease a light industrial building on the property. The legal description for the Eligible Property is as follows. T4N, R10E, SEC 35 PART OF E 1/2 OF WEST % OF SEC BEG AT PT DIST N 87-50-35 E 1295.30 FT & N 01-01-51 w 1679.33 FT & n 89-35-34 E 577 FT FROM SW SEC COR, TH N 89-35- 34 E 616 FT, TH N 00-24-26 W 225 FT, TH S 89-35-34 W 420 FT, TH N 00-24-26 W 150 FT, TH S 89-35-34 W 200.20 FT, TH S 01-02-56 e 375.02 FT TO BEG 3.87 A3-22-96 FR 017 Personal Property: Personal property will be included as part of the Eligible Property and the value.of the personal property is an eligible investment for the purpose of calculating the amount of the Brownfield Redevelopment Single Business Tax Credit for Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Property 2 the project. As described below, personal property is not included in the estimates of incremental taxable value provided in Table 2. The Property and improvements, including tangible personal property to be located thereon, will comprise the eligible property (the Eligible Property). B. Basis of Eligibility (Section 13(1)(h)) The Property is an eligible property because it is a "facility" as defined by Part 201 of Michigan Act 451. A review of historical sampling data indicates concentrations of VOCs and metals in soil and groundwater at several locations throughout the Property that exceed the MDEQ's Generic Residential Cleanup Criteria (refer to the Baseline Environmental Assessment dated November 3, 2006). Most of the impacted boring locations are on the western portion of the Property, to the east of the truck well. Environmental conditions were initially observed by ASTI Environmental of Brighton, Michigan during a Phase I environmental site assessment conducted on April 28, 2006. A subsurface investigation was conducted at the Property on June 28, 2006 in regard to historical uses first identified during the Phase I investigation. On October 6, 2006, an additional subsurface investigation was conducted to delineate soil and groundwater impacts identified during the June 2006 investigation. A total of 14 soil borings have been completed throughout the Property during the two subsurface investigations. Subsurface investigations indicate impacts in the western and central portion of the Property. The impacted soil samples were collected from a depth of 10 to 12 feet below ground surface. Concentrations of VOCs in excess of the Csat and/or industrial closure criteria have been identified in the western portion of the site, to the east of the truck well. Concentrations in excess of Csat values indicate potential for free product. 3 Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Property III. PROJECT DESCRIPTION A. Description of Cost to be Paid With Tax Increment Revenues & Summary of Eligible Activities (Section 13(1)(b)) The "eligible activities" planned for the site are identified by Act 381, and include environmental investigation, remediation, due care, administrative costs, and closure documentation, which are defined as those activities necessary to identify and remedy impacts above the applicable clean-up criteria in order to prepare the site for construction. In specific, these activities include, but are not limited to, the following: 1. Environmental Investigations: Soil and/or groundwater investigations; 1) to further delineate the nature and extent of identified impacts that have occurred from historical uses; 2) to assess environmental conditions on the subject property; and 3) as required to provide closure documentation following soils remediation. 2. Environmental Remediation and Due Care Activities Soil contamination identified on-site will be remediated. An estimated 4,500 cubic yards of soil will be excavated from the impacted area and transported to an appropriate waste disposal facility. The upper portion of the excavated soils may be used for backfill material if laboratory analysis determines that the soils are appropriate for backfill. Approximately 15,000 square feet of concrete overlying the impacted remediation area will be broken up and transported to a concrete recycling facility. Removal of concrete and contaminated soils, preparation of Due Care Plans and due diligence documentation, and preparation of work plans are included in this activity. 3. Contingency A 15% contingency factor has been included to accommodate unexpected conditions that may be encountered during redevelopment. In addition to the eligible activities described above, this Plan includes administrative fees for the Oakland County Brownfield Redevelopment Authority (OCBRA) at 10% of the total tax increment revenues for each year, and capture of an additional five years of taxes for the local Revolving Loan Fund. Oakland County Brownfield Plan Amendment 4700 5'. Lapeer Road Property 4 The estimates costs for the eligible activities are listed in Table 1 below and reimbursement is illustrated in Table 2 attached. Table 1 Estimated Costs of Eliaible Activities Estimated Tax Eligible Activities Capture 1. Environmental Investigation $6,000 2. Environmental Remediation and $232 ,808 Due Care Contingency (15%) $35,821 , Total Eligible Activities $274,629 The above costs are only estimations and may increase or decrease depending on the actual conditions encountered on the Property. If necessary, this Plan may be amended to add or delete eligible activities and their estimated costs. Financial support will be provided by the Authority in the form of Tax Increment Financing (T1F) to reimburse the Developer, including its successors and assignees, for the actual cost of eligible activities on the Eligible Property, as authorized by Act 381, and to allow a qualified taxpayer to apply for a State of Michigan Brownfield Redevelopment Single Business Tax Credit. No cost shall be reimbursed by taxes unless they are activities implemented pursuant to a development agreement approved by the Township B. Estimate of Captured Taxable Value and Tax Increment Revenues (Section 13(1)(c)) The Brownfield Plan total estimated cost of the eligible activities to be reimbursed through the capture of tax increment revenue is provided in Table 2. Based on the assumptions listed below, tax capture for reimbursement of eligible activities as described in Section III(A) above is estimated at 11 years. The Township will capture an additional five years, for a total duration of 16 years. As described below, Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Property 5 conservative assumptions were included in the captured taxable value and tax rates. These assumptions are used for illustrative purposes only, and are not intended to limit reimbursement of the actual annual tax capture amount described in Section 111(A) above. The following assumptions have been used to prepare Table 2. 1. The development project will be completed in 2008. 2. Only local taxes are included in calculating recapture. 3. Although the most recent taxable value of the Property is $528,460, for purposes of calculating the incremental taxable value, the Initial Taxable Value of the Property is assumed to be the purchase price as indicated in Table 2. 4. Personal property, although anticipated to be part of the value added to the Property, has not been included in the tax table. Estimated Tax Increment Revenue Captured by the Authority: Over the life of the Plan the maximum tax increment captured by the Authority will be as follows. Oakland County Brownfield Redevelopment Authority Administrative Fees (16 years): $46,000 Revolving Loan Fund (5 years) $145,000 The Initial Taxable Value will be set by the next assessment role for which equalization will be completed following the date the resolution adding the eligible property in the Brownfield Plan is adopted. The captured incremental taxable value and associated tax increment revenue will be based on the actual increased taxable value from all taxable improvements on the Property and the actual millage rates levied by the various taxing jurisdictions during each year of the Plan. Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Property 100% 9 1,681,412 5 - 5 1,681,412 $ 1,731,855 $ 1,783,810 $ 1,837,325 $ 1,892,444 $ 1,949,218 - $ - $ - 3 - s 1,731,855 $ 1,783,810 $ 1,837,325 $ 1,892,444 $ 1,949,218 100% 100% 100% 100% 100% 190% 100% 190% FINANCIAL ANALYSIS 4700 S. Lapeer Road Table 2- Example Total Tax Capture Jurisdiction :Orion Township School District: Lake Orlon Schools Property Type: Industrial A5sorts:111one Property Value: $ 3,362,826 Projected Taxable Value: 1,681,413 Initial Taxable Value $ 187,500 Incremental Taxable Value: $ 1,493.913 Eligible Activity Environmental Response Activities: $ 274,629 Redevelopment Activities: $ Total Eligible Expense: $ 274,629 March 6, 2007 Year Percent Complete 0% 100% 100% Incremental Taxable Value $ - $ 1,538,730 $ Personal Property $ - $ - $ Total Taxable Value 3 - $ 1,538,730 $ Total Total Millage Category MIllat$1 Boo c.spk_ne 2007 2008 2009 2010 2011 1.02. 2013 2914 21116 208 Total Tax Capture for All Eligible Activities 100% 1,584,892 $ 1,632,439 - 1,584,892 5 1,632,439 ViNage Operating 12.1165 § - $ - $ - $ - $ - $ - 3 - 3 - 3 - $ - $ - County Operating 1.3900 3 43,112 $ - 3 2,139 3 2,203 5 2,269 $ 2,337 3 2,407 9 2,479 $ 2,554 $ 2,630 9 2, /09 County Education 2.8000 5 86,845 $ - $ 4,308 $ 4,438 $ 4,571 $ 4,708 3 4,849 $ 4,995 5 5,145 $ 5,299 5 5,458 OCC Operating 1.5844 $ 49,142 $ - 3 2,438 9 2,511 $ 2,586 $ 2,664 $ 2,744 $ 2,826 5 2,911 $ 2,998 $ 3,088 ISO (All) 3.3690 5 104,493 $ - $ 5,184 5 5,340 3 5,500 5 5,665 $ 5,835 $ 6,910 $ 6,190 $ 6,376 3 6,567 County Parks 02419 3 7,490 $ - $ 372 $ 383 3 394 $ 406 $ 418 3 431 $ 444 $ 457 $ 471 Metro Parks 0.2146 $ 6,656 $ - 9 330 $ 340 $ 350 $ 361 $ 372 $ 383 $ 394 $ 466 $ 418 Fire 0.9916 $ 30,765 5 - 3 1,628 3 1,572 $ 1,619 2 1,667 $ 1.717 $ 1,769 $ 1,822 $ 1,877 9 1,933 Police 1.9832 $ 61,511 $ - 9 3,052 $ 3,143 $ 3,237 $ 3,335 $ 3,435 $ 3,538 $ 3,644 $ 3,753 $ 3,866 Library Operating 1.4189 5 44,009 $ - $ 2,183 3 2,249 $ 2,316 $ 2,386 3 2,457 $ 2,531 $ 2,607 $ 2,685 $ 2,766 Township General 0.8200 $ 25,433 $ - $ 1,262 3 1,300 $ 1,339 $ 1,379 $ 1,420 $ 1,463 $ 1,507 $ 1,552 3 1,598 Safety Paths 0.2382 $ 7.388 $ . $ 367 8 378 $ 389 $ 401 $ 413 $ 425 $ 438 $ 451 $ 464 Lake Orion School Deal 7.4919 5 - 5 - 3 - $ - $ - 3 - $ - 3 - $ - $ - 3 - School Operating 18.0000 $ - $ - $ - $ - $ - $ - $ - $ - 3 - $ - $ - School SET 6.0000 $ - $ - 5 - $ - $ - $ - 3 - $ - 9 - 3 • 5 - Total Incremental Tax 58.6589 9 466,834 $ - s 23,160 $ 23,855 $ 24,570 $ 25,308 $ Total Tax Capture for Reimbursement: 5 274,628 5 - $ 20,844 9 21,469 3 22,113 $ 22,777 9 23,460 $ 24,164 $ 24,889 5 25.636 $ 26.405 Capture for Brownfield Authority: 3 46,683 $ - $ 2,316 $ 2,385 3 2.457 $ 2,531 $ 2,607 $ 2,685 $ 2,765 5 2,848 $ 2,934 Capture la Bend Repayment $ - $ - $ - 5 - $ - $ - $ - $ - 3 - $ - $ - Capture for RLF $ 145,523 $ - $ - $ - 3 - $ - $ - - $ - Total Capture: 3 466,834 $ - $ 23,160 3 23,855 3 24,570 $ 25,308 9 26,067 1 26,849 $ 27,654 $ 28,484 3 29,338 Notes: Property and Taxable Values assume conservative costs and tax rates as described in the Brownfield Man, are for illustration only, and do not rerresent actual costs. The Initial Taxable Value Is an adjusted value based on recent land purchase price 26,067 $ 26,849 $ 27,654 $ 28,464 S 29.338 Printed 31412007 Year Percent Complete Incremental Taxable Value Personal Properly Total Taxable Value Meese Category Village Operating County Operating County Education OCC Operating ISO 1A11) County Parks Metro Parks Fire Ponce Library Operating Township Genera! Safety Paths Lake Orion School Debt School Operating School SET FINANCIAL ANALYSIS 4700 S. Lapeer Road Table 2- Example Total Tax Capture Jurisdiction: Orlon Township School District: Lake Orlon Schools Property Type: Industrial Aesometions Property Value: $ Projected Taxable Value: Initial Taxable Value $ Incremental Taxable Value: -$ Eligible Activity Environmental Response Activities: 274,629 Redevelopment Activities: $ Total Eligible Expense: 3 274,629 March 6, 2007 3,362,826 1,681,413 181,500 1,493,913 2019 2029 2021 2022 023 2024 2025 m 2027 100% 1110% 100% 100% 100% 100% 100% 100% 100% 100% 100% $ 2,007,694 5 2,067,925 $ 2,129,963 $ 2,193,862 $ 2,259,677 3 2,327,468 $ 2.397,292 $ 2,469;711 $ 2,543,287 $ 2,619,585 3 2,698,173 $ - $ - $ - 3 - $ - 5 - $ - $ - $ 2,007,694 $ 2,067,925 S 2,129,963 $ 2,193,962 $ 2,259,577 $ 2,327,466 $ 2,30/,292 3 2,469.211 2,543,287 2,519,585 2.658,173 Total l'ili_1M.1 12 1165 5 - 5 - 5 - 5 - $ • 5 - 3 - $ - $ - S - $ 1.3900 $ 2,791 $ 2,874 $ 2,961 $ 3,049 $ 3,141 $ 3,235 5 3,332 $ - $ • 3 2.8000 $ 5,622 $ 5,790 $ 5,964 $ 6,143 $ 6,327 $ 5,517 $ 6,712 $ - 5 - $ - 3 1.5844 3 3,191 $ 3,276 $ 3,375 $ 3.476 5 3,550 $ 3,6913 3 3,798 $ - $ - $ - $ 3.3690 $ 6,764 5 6,967 $ 7,176 § 7,394 $ 7,613 3 7,841 $ 8,076 9 - 5 - 3 - $ 0.2415 5 486 $ 499 $ 514 $ 530 $ 548 $ 682 $ 579 $ - $ - 3 - $ 0.2146 $ 431 $ 444 $ 457 $ 471 $ 485 $ 499 $ 514 3 - 3 - $ - 5 0.9916 3 1,991 $ 2,051 5 2,112 $ 2,176 $ 2,241 $ 2,308 $ 2,377 3 - $ - $ - $ 1,9832 $ 3,982 $ 4,101 9 4,224 $ 4,351 $ 4,481 $ 4,616 $ 4,754 $ - $ - $ - $ 1.4189 3 2,846 $ 2,934 $ 3,022 $ 3,113 9 3,206 $ 3,302 $ 3,402 $ - $ - $ - 3 . 0.8200 S 1,646 $ 1,696 $ 1,747 $ 1,799 $ 1,853 $ 1,909 $ 1,966 $ - $ - $ - $ 0.2382 5 478 3 493 $ 507 3 523 3 538 $ 554 $ 571 5 - $ - $ - 5 74910 9 - $ - 3 - $ - 5 - $ - 3 - 5 - 5 - $ - $ 18.0009 $ - $ - 3 - $ - $ - $ - $ - $ - $ - $ - $ 6.0060 9 - $ - $ - $ - $ - $ - 5 - $ - $ - $ - $ 2017 2018 Total Tax Capture for All Eligible Attivities Total Incremental Tax 58.6569 $ 30,219 $ 31,125 5 32,059 5 33,021 34,011 9 35,032 5 36,083 $ - 5 - s - $ Tax Capture for Reimbursement: Capture tor Brownfield Aulhorityi Capture for Bond Repayment Capture Tor RLF Total Capture: Notes: Property and Taxable Values assume conservatnre costs and tax rates as described in the Browneekl Plan, are for illustration only, and do not represent actual costs. The initial Taxable Value lo an adjusted value based on recent land purchase price. $ 27,197 $ 26,013 9 7,662 3 - S - 5 _ $ - $ - $ 5 3,022 5 3,113 $ 3,206 $ 3,302 5 3,401 3 3,503 $ 3,608 $ - $ - $ - 3 $ - $ - $ - $ - $ - $ - s - $ - $ - $ - $ - $ 21,191 $ 29,719 $ 30,610 $ 31,528 5 32,474 $ - $ - $ - 5 $ 30,219 3 31,125 $ 32,059 3 33,021 $ 34,011 5 35,032 5 36,083 $ - 3 - $ - $ C. Impact of Tax Increment Financing on Taxing Jurisdictions (Section 13(1)(g)) See Table 2 attached to this Plan for a detailed breakdown of the estimated impact of tax increment financing on the revenues of the taxing jurisdictions in which the Eligible Property is located. The Property includes one school district: 63230- Lake Orion Schools D. Method of Financing and Description of Advances by the Municipality (Section 13(1)(d)) The Development will be financed through private financing arranged by the Developer. E. Maximum Amount of Indebtedness (Section 13(1)(e)) The Authority is not responsible for any cost of eligible activities and will incur no debt. No advances have been or shall be made by the Township or the Authority for the costs of eligible activities under this Plan. F. Duration of Plan (Section 13(1)(f)) The Plan will remain in effect for as many years as is required to fully complete the reimbursement of eligible expenses for the project, or 30 years, whichever is less. G. Effective Date of Inclusion in Brownfield Plan The Property will become a part of this Plan on the date this Plan is approved by the Authority. 9 Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Property H. Displacement/Relocation of Individuals on Eligible Property (Section 13(1)(i-I)) There are no persons residing on the eligible property to which this Plan applies, and therefore there are no families to be displaced or relocated. I. Local Site Remediation Revolving Fund (Section 13(1)(m)) Taxes will be captured from this Project for the Local Site Remediation Revolving Fund during the five years following the complete capture of taxes for reimbursement of eligible activities described in Section 111(A) above. These funds will be used for investigation and remediation on other Brownfield sites located within the Authority. No funds from the Local Site Remediation Revolving Fund shall be used to finance the costs of eligible activities on the Eligible Property under this Plan. J. Other material that the Authority or Governing Body Deems Pertinent (Section 13(1)(n)) Orion Township has entered into a development agreement with Kemp & Peyerk Orion LLC dated , 2007 (the "Development Agreement"). This Brownfield Plan is subject to the terms and conditions of the Development Agreement and any future amendments to the Development Agreement. Because of the challenges and costs associated with redevelopment of an industrial facility, this project requires Brownfield incentives to succeed. Challenges include impacts to soil in the western portion of the site, the potential for difficulties during the excavation process, and the potential for unanticipated impacts to be discovered during site preparation and construction. Costs associated with site preparation needed to mitigate challenges created by previous site usage and development are anticipated to be over $270,000 as described in this Plan. 10 Oakland County Brownfield Plan Amendment 47005. Lapeer Road Property SBT Credit Developer Investment Funding for these expenses is anticipated to come from the following sources. As described above and illustrated below, the Developer may apply for school tax capture and the Brownfield single business tax credit. Table 3 Funding Sources Environmental TIF Investments Total Cost Grant Funded Funded Site Acquisition Environmental Investigation/Remediation Site Preparation Infrastructure Demolition Construction Costs Other Construction Costs $403.750 $0 $0 $0 $403,750 $269,150 $6,400 $238,808 $0 $23,942 $70,000 $0 $0 $0 $70,000 $412,000 $0 $0 $0 $347,000 $60,000 $0 $0 $0 $60,000 $2,230.000 $0 $0 $223,000 $2,007,000 5757.826 $0 $0 $75,783 $682,043 Total Above 54,202 726 $6,400 $238.808 $298,783 $3,593,735 Contingency 15% 16% 15% 15% 15% 3630.409 $960 $35,821 $44.817 $539,060 Total With Contingency $4,833.135 $7,360 $274,629 $343,600 $4,132,796 11 Oakland County Brownfield Plan Amendment 4700 S. Lapeer Road Property Attachments OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 4700 S. LAPEER ROAD PROPERTY MARCH 6, 2007 0 2,000 1,000 187-Acre Property Created for: Kemp Building Est Development Created by: ALH, May 8, 2006, ASTI Project 6235 4700 S. Lapeer Road, Orion, Twp, MI =Feet v... Mal I 2,00-n Site Location Map LEGEND — — Property Line 0 Transformer Well Storage Trailer En Former 10,000 Gallon UST /1511 Environmenta1 Site Features Features Map 400 600 Approximate Scale in Feet 3.87-Acre Pro ert Created for: Kemp Building & Development ASTI Project 6235, ALB, May 9.2005 4700 S. La seer Road Orion T MI rJ Resolution #07135 May 24, 2007 Moved by Douglas supported by Gingell the resolution be adopted. AYES: Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Suarez, Woodward, Zack, Bullard, Burns, Coleman, Coulter, Crawford. (25) NAYS: None. (0) A sufficient majority having voted in favor, the resolution was adopted. HEREBY APRS! THE MGM RESOW11011 S7a_ STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, 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 24, 2007, 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 Count Michigan this 24th day of May, 2007. nd at Pontiac, Ruth Johnson, County Clerk