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Home My WebLink AboutResolutions - 2008.07.31 - 9486r MISCELLANEOUS RESOLUTION #08144 July 17, 2008 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 2401 WEST MAPLE ROAD PROJECT IN THE CHARTER TOWNSHIP OF COMMERCE 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"), has established a redevelopment of Brownfields Redevelopment Authority and Board (OCBRA) to facilitate the clean-up and redevelopment of Brownfields within Oakland County's communities; and WHEREAS the 2401 West Maple Road site in Commerce Township is an environmental hazard, a "facility" under state statute and a non-producing parcel; 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 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 Commerce, relating to the redevelopment of 2401 West Maple Road located at the north side of West Maple between Welch and Southbound M-5, Charter Township of Commerce (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 Commerce, relating to the redevelopment of 2401 West Maple 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 2401 West Maple Road in Commerce Township shall be held on July 17, 2008, at 9:35 a.m., in the Board of Commissioners' Auditorium, 1200 North Telegraph Road, Pontiac, Michigan. Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing resolution. PLANNING & BUILDING COMMITTEE PLANNING & BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Gingell absent. 5 RESOLUTION TO APPROVE A BROWNFIELD REDEVELOPMENT PLAN FOR THE COMMERCE BEAUMONT BROWNFIELD SITE May 15, 2008 WHEREAS, the Commerce Beaumont project has been classified a 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 the proposed plan; now, WHEREAS, to approve the Brownfield Redevelopment Plan for the Commerce Beaumont project as presented and considered at the May 15, 2008 OCBRA Board meeting, along with the procedures for cost reimbursement, both attached; and, THEREFORE, BE IT RESOLVED, the Brownfield Plan for the Commerce Beaumont project was approved by the OCBRA on May 15, 2008 by a majority vote of 7 yeas to 0 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,'EtIcin, Hunter, Lerminiaux, Webster, Williams; Wilson Nays: • -I STATE OF MICHIGAN COUNTY OF OAKLAND (TOWNSHIP OF COMMERCE) RESOLUTION CONCURRING WITH THE PROVISIONS OF A BROWNFIELD PLAN ADOPTED BY THE OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY FOR THE LCOMMERCE BEAUMONT) 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 Commerce Beaumont project in the Township of Commerce is a 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 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 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 Commerce, relating to the redevelopment of the Commerce Beaumont project located at 2401 Maple Road (the "Property"); and NOW THEREFORE BE rr RESOLVED THAT, the Township Council of the Township of Commerce 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. BE IT FUR1HER RESOLVED THAT all resolutions or parts of resolutions in conflict with any of the provisions of this Resolution are hereby repealed. AYES: Abrams, Gross, Kirkwood, Long, Sovel and Zoner NAYS: None ABSTENTIONS: None ABSENT: None CERTIFICATION It is hereby certified that the foregoing Resolution is a true and accurate copy of the Resolution adopted by the Township Council of the Township of Commerce at a meeting 'duly called and held on the 13th day of May, 2008. Township of Commerce BY:k.,9---A-zWz.,kt--/ Sandra S. Abrams, CMC Clerk, Charter Township of Commerce 2 OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD REDEVELOPMENT PLAN Amendment No. FOR 2401 Maple Road Property Commerce Township, Michigan MAY 8, 2008 Prepared For: Commerce MOB LLC 41000 Woodward Avenue, Suite 395 East Bloomfield Hills, MI 48304 Prepared By: ASTI Environmental 10448 Citation Drive Brighton, Michigan 48116 ASTI Project No. 6700 Approved by the Brownfield Redevelopment Authority on Approved by the governing body of the local jurisdiction on OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8, 2008 Table of Contents Project Summary I. INTRODUCTION 1 GENERAL PROVISIONS A. Description of Eligible Property 2 B. Basis of Eligibility 4 PROJECT DESCRIPTION 5 A. Description of Cost to be Paid & Summary of Eligible Activities B. Estimate of Captured Taxable Value and Tax Increment Revenues Impact of Tax Increment Financing on Taxing Jurisdictions 7 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 10 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 Costs of Brownfield Related Activites 6 Table 2: Funding Sources 8 APPENDIX A Figure 1: Site Location Map Figure 2: Parcel Map Figure 3: Historic Sampling Map APPENDIX B Legal Descriptions APPENDIX C List of Personal Property APPENDIX D Site Photographs Estimated Total Investment: Annual Tax Revenues Before Project: Annual Tax Revenues After Project: Basis for Eligibility: OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8, 2008 Project Name: Developer: Project Location: Project Overview: Eligible Activities: Eligible Activities: Plan Duration: Estimated MBT Credit: Project Summary Commerce Medical Office Building Commerce MOB LLC Six parcels located at 2401 Maple Road in Commerce Township, Michigan The project will redevelop approximately 35 acres. The property consists of two abandoned buildings and vacant land previously containing several residences and light industrial businesses including Acorn Distributing, Venture RIM Products, Polyurethane, American Fireplace, a restaurant and a gun manufacturing plant. $69,800,000 (not including equipment) $19,120 $937,000 (based on project completion in 2009) All parcels are either contaminated and/or adjacent to contaminated parcels and therefore the Property qualifies as a facility as defined in Part 201 of Michigan Act 451. Eligible activities include demolition, environmental assessment, waste characterization and disposal, excavation, and disposal of impacted soils and groundwater, possible UST removal/closure activities and excavation of unsuitable soils. $1.204,139 5 years $6,228,751 (based on an Eligible Investment of $49,830,007 which includes equipment) II OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8, 2008 I. 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 Michigan 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, and the methods for redevelopment. Once approved, the Plan will serve as a guide for implementation of the project. This Plan Amendment describes the redevelopment of former commercial, light industrial and residential site located at 2401 Maple Road in Commerce Township, Michigan (the Property). The Plan utilizes local and state tax increment financing, and will utilize the Michigan Business Tax Brownfield Tax Credit, and 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; The Michigan Business Tax Act, 2007 Michigan Public Acts 36, M.C.L. § 208.1437, 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 2401 Maple Road Property: 7 • Parcel 17-25-376-026 — • Parcel 17-25-376-035 • Parcel 17-25-376-017 • Parcel 17-25-376-021 • Parcel 17-25-376-031 • Parcel 17-25-376-001 Located on the east side of the Property — Located on the north, center portion of the Property — Located on the southeast corner of the Property — Located on the south, central portion of the Property — Located on the southwest corner of the Property — Located on the northwest corner of the Property IL GENERAL PROVISIONS A. Description of Eligible Property (Section 13(1)(h)) The Property for this Plan is located at 2401 Maple Road, on the north side of W Maple Road between Welch Road and Southbound M-5 in Commerce Township, Oakland County, Michigan (Figure 1). The eligible property for this plan consists of six parcels on approximately 35 acres. The following is a list of parcel numbers and descriptions. Parcel boundaries are illustrated in Appendix A (Figure 2) and legal descriptions can be found in Appendix B. The eastern portion of the Property was vacant and/or utilized for agricultural purposes from at least 1949 to 1954 and was developed with a commercial/industrial earthwork contractor/sand and gravel company (Sterling Garrett) from approximately 1956 to 2000. In 2002 significant earthwork activities occurred on the eastern portion of the Property that were associated with the M-5 highway construction. The central portion of the Property was vacant and/or utilized for agricultural purposes from at least 1949 to 1954 until it was developed with a muffler testing facility, auto insurance company and towing service from approximately 1963 to 1997. From 1997 to the present the central portion of the Property has been vacant. The southwestern portion of the Property was utilized for agricultural purposes from at least 1949 to 1956. By 1956 this portion of the Property had at least two commercial 2 Oakland County Brownfield Plan Amendment 2401 Maple Road Property ' buildings and a residential dwelling. From 1956 to at least 1983, Lorang Products, a coffeemaker manufacturer occupied the larger commercial building, while the smaller commercial building consisted of a drive-in restaurant and barbershop. From 1983 to at least 1997 the larger commercial building -was a machine shop. As of 1997, all buildings on this portion of the site have been demolished, and the area is presently vacant. The northwestern portion of the Property was developed for agricultural use from at least 1949 to 1963, when it was developed with two buildings, a main commercial building and a storage building. From 1993 to 2007 the Property has operated as Acorn Distributing Company, American Fireplace Company, a gun manufacturing facility, Venture RIM Products, I01 Polyurethanes, an outdoor storage facility, and a cabinet showroom and manufacturing company. These buildings are now vacant. The developer, Commerce MOB LLC (the Developer) intends to construct and lease a medical center and physician office building on the Property. It is anticipated that a portion of the property will be used for a community fire station. Personal Property: Because of the nature of this redevelopment, personal property will be a major component of the investment and 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 Michigan Business Tax Credit for the project. A list of personal property to be included in the Michigan Business Tax Credit Application is provided in Appendix C. The Property and improvements, including tangible personal property to be located thereon, will comprise the eligible property (the Eligible Property). 3 Oakland county Brownfield Plan Amendment 2401 Maple Road Property 7.6 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. The following documents were reviewed to determine the eligibility of the Property: • Baseline Environmental Assessment, Hospital Parcel, December 22, 2006 by SME • Baseline Environmental Assessment, East Parcel — 8 Acres, December 22, 2006 by SME • Baseline Environmental Assessment, West Parcel 7.5 Acres, December 22, 2006 by SME 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, in specific parcels 17-25-376-001, 17-25-376-031, 17-25-376-035, and 17-25-376-026 are impacted. Environmental conditions were initially observed during a Phase I Environmental Site Assessments (ESAs) conducted on October 8, 2004. Baseline Environmental Assessments (BEAs) were first conducted at the Property on October 14, 2004 in regard to historical uses first identified during the Phase I investigation. On August 14, 2006, a Phase I ESA was conducted at each portion of the Property. Subsurface investigations indicate soil impacts in the eastern, western and central portion of the Property. The impacted soil samples were collected from a depth of 0 to 18 feet below ground surface. Concentrations of arsenic in soils exceeded Part 201 residential cleanup criteria for Drinking Water Protection on the northwest portion and southern-central portion of the Property. Concentrations of arsenic in the northwest portion also exceed Direct Contact. Concentrations of 1,2,4-trimethylbenzene, napthalene, and phenanthrene exceed GSI at the southeastern portion of the property. Chromium in the northwestern portion of the Property also exceed GS1. Trichloroethene was also found on the northwestern portion of the Property in levels that exceed Part 201 Drinking Water Protection Criteria. Additional soils impacts have been discovered during site preparation activities and are currently being investigated. 4 Oakland County Brownfield Plan A mendment 2401 Maple Road Property 1 Groundwater on the western portion of the Property is also impacted. Arsenic, trichloroethene, benzene, cis-1,2-dichloroethene, and vinyl chloride throughout the western portion of the Property were found to exceed Part 201 residential cleanup criteria for Drinking Water. A map containing the historic sampling locations and areas of environmental impact can be found in Appendix A (Figure 3). In addition to subsurface impacts on the Property, the subgrade soils are not suitable for site development and construction. According to previous geotechnical reports conducted in February of 2008, the soils have a high silt and clay content which have silt and sand seems and layers. Soils of this composition may become unstable under repeated construction traffic. These soils are also susceptible to frost heave and may deteriorate with wet weather. 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, additional response activities (specifically soil remediation and UST closure), due care, and site preparation, which are defined as those activities necessary to identify and remedy impacts above the applicable clean-up criteria and those activities necessary to prepare the site for construction. In general, these activities include, but are not limited to, the following: 1. Environmental investigations, Rernediation and Due Care Soil and/or groundwater investigations, including preparation of reports and Brownfield documents. Removal of waste materials, waste characterization and management of impacted groundwater. Due Care 5 Oakland County Brownfield Plan Amendment 2401 Maple Road Property plans and activities. Contingencies for the removal of contaminated soils and underground storage tanks, and associated closure sampling and documentation. 2, Demolition Demolition of existing buildings, substructures, pavement, utilities and wells. 3. Site Preparation Land balancing and removal of unstable subsoils. In addition to the eligible activities described above, this Plan includes administrative fees forthe Authority and funding for a local Revolving Loan Fund. The estimated costs for the eligible activities are listed in Table 1 below and reimbursement is illustrated in Table 2 attached. Some of the eligible activity costs for environmental assessment activities have already been incurred. Table 1 Estimated Costs of Brownfield Related Activities Estimated Activity Cost 1. Environmental $359,400 I nvestig ation/Remedi atio n 2. Demolition 1 $101,677 3. Site Preparation $586,000 Contingency (15%)_. $157,062 Total Eligible Activities 1 $1,204,139 . The above costs are estimates and may increase or decrease depending on the actual conditions encountered on the Property. If necessary, this Plan may be amended to add, delete, or modify eligible activities and their estimated costs. Financial support will be provided by the Authority in the form of Tax increment Financing (TIF) and a contribution to remediation costs, in order to reimburse the Developer, including its successors and assignees, for the actual cost of eligible 6 Oakland County Brownfield Plan Amendment 2401 Maple Road Property 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 Michigan Business Tax Credit. The cost for any activities shall not be reimbursed by taxes unless they are activities implemented pursuant to a development agreement. 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 111(A) above is estimated at 3 years. As described below, 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 III(A) above. The following assumptions have been used to prepare Table 2. • The developer-funded portions of the project will be completed in 2008 and tax capture will begin in 2009. • Local and state tax capture are included in calculating recapture. • The Initial Taxable Value is based on 2008 tax records. • Personal property, although anticipated to be part of the value added.to the Property, has not been included in the tax table in order to provide a conservative estimate of Plan duration. • The projected taxable value is assumed to be 40% of the post-construction property value. • Some state taxes were not captured in order to comply with the Proportionality Test. 7 Oakland County Brownfield Plan Amendment 2401 Maple Road Property $ FINANCIAL ANALYSIS Table 2 - Example Total Tax Capture Commerce Medical Office Center May 8, 2E18 Jurisdiction: Oakland County School District: Welled Lelia Property Type: Curnmerclal Assumption§ Prepeily Value: $ 53,029,175 Projected Taxable Value: S 21,211,670 101601 Taxable Wee; $ 445,480 incremental Taxable Value: 1-.21:73,79r Eligible. Activity Environmental Response Activities: 5 413,310 Redevelopment Activities: $ 750,829 Total Eligible Espaneet S 1.204,139 100% $ 25,539,794 25,539,794 Veer Percent Complete Incremental Taxable Value Persenal Property Toial Taxable Value $ Total Total Miliege CationU MillaI$I000 80977 Township Total 3.5411 S $ Library 0.91395 $ - $ ISD 3.3590 $ 222.731 S College 1.5844 $ - $ County Operating 4.1500 5 - S County Forks/Ran 0.2415 $ - 9 County ITCMA 0.2148 5 - - S - - $ - $ - 5 School Debt 4.7900 $ - $ School Operating 18.0000 $ 1,170.20? $ School SET 6.0000 S 360,094 $ Total inorernanlel Tax 42.9201 S 1,783,107 $ 100% 100% 100% 23.372.530 3 24,073,706 5 24.755.917 - 5 .5 22,691 777 $ 23,372,530 5 24,073,706 $ 24,795,917 Total Tax Capture for All Elinible Activities - $ - $ - $ - $ - $ - $ - $ - S - $ - $ - $ - $ - 9 72,060 $ 74,222 S 76,449 $ - 5 - $ - $ - $ - $ - $ - $ - 5 - $ - 9 - $ - 9 - $ - s - $ - s - s - $ - $ - s - $ - s - $ - $ - $ - I - $ - S - S - $ - 5 - $ • $ - S - $ - 1 - $ - $ - 9 - 9 - 9 • 3 - $ - $ - S - S - $ - $ - $ - $ - $ - $ - $ - $ - $ - S - $ - S - $ - I - $ - S - $ 375,428 5 389,979 § 401,875 5 - $ - $ - $ 126,143 5 129,993 $ 133.958 $ - $ - $ - $ 575,831 5 594,193 S 612.262 5 - 5 - 5 100% $ 26,305,988 9 27,095,168 -s S 25,305,986 S 27,095,168 - s - - s - S - s - - - I - - $ $ - - $ - - $ - - - $ • $ - 9 - - S - - S - S - S - - S - $ - 5 - S 2008 2009 201.0 2011 2012 2013 2014 2015 2016 2017 0% 190% 100% 100% - S 21 369,175 9 22 030,851 9 22,691,777 - - - $ - 21 389,176 $ 22,030,851 $ 100% Total lax Capture [or Reimbursement: $ 7,204-,139 $ Capture for Brownfield Authority' 30,000 5 Capture for Bond Repayment - $ Ceplure for RLF 100.000 $I Total Capture' $ 1,334,139 $ Notes' Property and Taxable Values assume conservative costs and lax retes es described in the Elrowriffelrf Plan, are for illasindion only. and do not represent aclual costs. rho Mille( taxable Value is based on tax records. - $ 566.631 $ 584,193 9 53.314 S - 1 14.000 $ 10.000 5 10,500 $ - S - $ - S - $ - s - s - § 100,000 $ - $ 576.531 $ 594,193 5 163.314 $ $ - $ - $ - $ s - a - a - s S - a - $ - s $ - 3 - $ - s $ - $ - $ - s 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: Administrative Fees: $30,000 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. 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: Walled Lake Public School District 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. 9 Oakland County Brownfield Plan Amendment 2401 Maple Road Property F. Duration of Plan (Section 13(1)(f)) The Plan will remain in effect for 5 years, which provides a contingency of two years based on the assumptions used in this plan. 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. H. Displacement/Relocation of Individuals. on Eligible Property (Section 13(1)(1-1)) 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 two years following the complete capture of taxes for reimbursement of eligible activities described 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)) Because of the challenges and costs associated with redevelopment of a former commercial/industrial facility and the location of the project in the DDA which reduces 10 Oakland County Brownfield Plan Amendment 2401 Maple Road Property Developer investment MIMI= capture for eligible activities, this project requires Brownfield incentives to succeed. Challenges include impacts to soil and groundwater especially in the western portion of the site, petroleum contamination on the southeast corner of the site from a potential UST, unknown fill material found in the northeast corner of the site, unstable soils, the discovery of additional impacts during site preparation activities, and the potential for additional unanticipated impacts to be discovered during site preparation and construction. Funding for these expenses is anticipated to come from the following sources. As described above and illustrated below, the Developer may apply for the Brownfield Michigan Business Tax (MBT) Credit. Table 3 Funding Sources Summery of Funding Sources Environmental TR- Redevelopment Township I3134 Investments Total Cost Funded TIF Funded Funded $O $359,400 $0 SO Site Acguistlion Environmental investigationAemediation Site Preparation Infrastructure Demolition Construction Costs Other Construction Costs Equipment/Personal Property $13,000,000 $468,200 55.562,345 51.211,143 $101,677 535.607,384 $4,421,791 57.723.057 $0 $O $566,000 $0O $o $101,677 $O $O $O $O $O $0 $0 $13,600,050 $50,000 $o 558.800 $0 $O 55.276,345 SO $0 $1,211,143 $O $O SD $0 $4,450,923 501,156,461 SO so $4,421,791 $965,382 $6,757,675 Total Above $65.395,597 $359,400 $687.677 $50,000 35,416,305 161,882,215 Contingency 15% IS% 15% 15% 15% 15% 510.259,340 553.910 5103,152 57.500 5812,446 $9282.332 Total With Contingency $78,654,936 $413,310 $790,829 $57,500 56228,751 571,164,547 Upon approval of a Brownfield Plan for eligible property or the inclusion of additional parcels of eligible property in a Brownfield Plan where the owner/operator proposes to seek reimbursement of costs for eligible activities at eligible property, the Oakland County Brownfield Authority (OCBRA) shall require the owner/operator to comply with the terms and conditions specified herein including the schedules governing the capture of taxes, requests for reimbursement, required documentation, determination of eligible activities and reimbursement process as more fully defined below. 11 Oakland County Brownfield Plan Amendment 2401 Maple Road Property Parties seeking reimbursement of costs of eligible activities attn-butable to eligible property should submit to the OCBRA requests for reimbursement on a monthly basis. These requests should include the following: 1. Reference to the Approved Brownfield Plan and parcel. 2. The total amount of the current monthly reimbursement request. 3. The total amount of the reimbursement requests sought to date pursuant to the Approved Brownfield Plan. 4. Identification of each eligible activity as a line item, the associated costs, with copies of detailed invoices for the eligible activities and proof of payment. (Parties seeking reimbursement should request detailed billings from contractors splitting out fees and costs of eligible activities from other services.) 5. Other information and documentation that may assist the OCBRA in determining whether the costs are for eligible activities attributable to an eligible property and that the costs are reasonable. This documentation may include evidence of a competitive biding process and/or evidence that the costs are for eligible activities. 6. Certification by an authorized representative of the party seeking reimbursement that a) he or she has reviewed the request for reimbursement, b) the costs are for eligible activities attributable to eligible property, c) the request is for costs incurred and paid and d) he/she is authorized to seek reimbursement and to make the certification on behalf of the party seeking reimbursement. The OCBRA will make the final determination of eligibility for all requests for reimbursement. Reimbursements will take place as tax capture allows. Reimbursement payment is expected to occur biannually: Within 90 days of receipt of taxes. No payments will be made if property taxes on any of the eligible properties are delinquent. The OCBRA will make every effort to follow the reimbursement schedules as specified in the OCBRA•Brownfield Plans. For a specific Brownfield Plan, the OCBRA will not 12 Oakland County Brownfield Plan Amendment 2401 Maple Road Property reimburse prior to or in excess of the amount of taxes captured from the eligible property. Shortfalls in capture will result in proportionate reductions in allocations made for eligible activity reimbursements. OCBRA administrative and legal costs for establishment and administration of the Brownfield Plan governing the eligible property take priority for reimbursement over all other eligible costs. Any residual administrative allocations not expended in a fiscal year will be carried forward to reimburse eligible administrative costs of the OCBRA. The OCBRA reserves the right to deny or make partial reimbursement of requests for reimbursement, which it deems not in accordance with the Brownfield Plan, the Act and procedures, established by OCBRA for reimbursement. 13 Oakland County Brownfield Plan Amendment 2401 Maple Road Property APPENDIX A MAPS OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8, 2008 1,000 1,000 Feet Commerce Township, Michigan 2401 Maple Road Created for: Commerce Township MOB, LLC Created by: DKB, March 20, 2008 Ti Environmental Figure 1 - Site Location Map 2401 Maple Road 11, Commerce Township, MI Figure 2 - Parcel Map ENV/RDNUIENTAt_ Created for: Commerce MOB LLC Created by: DKB, April 29, 2008 S7PTEIY8ER 79114 Syr. SCiL -PROBE uicKhow SEPTEMBER 291.1.4 SEE .TEST PIT LOCATION £FXRUARY -20;6 SNSE tor-Amos, ▪ P.045 SUE S. nosE LOCATIO>.1 NOLEMBER2Uj'ME rjIL:ARaBE LOCATION GINEIRAL AREA 'Or LIM DC rtitIliNDWMFYI imPAC I : I . • - , frit-Lda R L : _j;r7 • . H 1 I 1;1 . .11 ; , L.H.1....611.1L'itil2JJL.L1111.3-rj—ThElitiLiai ' •LI '------- 1 -" GRAPHiC SCALE CENERAL - 2401 Maple Road Commerce Township, MI Figure 3 - Historic Sampling Map ENVIRONMENTAL Created for: Commerce Township MOB LLC Map provided by: SME APPENDIX B LEGAL DESCRIPTIONS OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8,2008 tub Taxable 279 IND twine iuud Plain Lendscsped 'Swamp • 2_40. Tretitiid rkt; e ' Acreagg 1080 WELCH 1 Township of Commerce MAW =p1r-va,rrw-vilerraam..- PAIArittorwin 01-0011efasiFking 8PL421.1*148114ces: afaWiLWO C11$-,.-97:2-1711113 44-1 7.1.311! Last Sale Cale 0 Last Sale-Amount L IC) •:14 Over ida Vekie 07:7:7TiTif 100 %Coirakbil FajWf.--r1-1.1TMEZT Store, Warehobse .ShoWroom Building/. Section 1 NT fella TnIsifloor Aro 32,91 0 % of Fir Area Covered by 0 Furict % Econ. %Good RTYPs m Heat Type e 1 Fire-Resistant? INSS -MMT.11-720.1 ; il4M—.L.f_77,,Ii:MITVIL4 - • - If • maenad Rale Pi Good I Mak • N blank, than depreciation is with Swift° Pr_rnrE2-7.7. 16114, Kommim-Larfailimm cik. Rd Ham Gravel Rd Paved Rd Storm Sewer 111EM SkieWeit crirout It -7--fayatiTfidwiTiu-kman im&itififawailimiumam imormilmirs rimmo tithe! 75 Sd tlikties •". lJa• 'mid. Mites ME1111111nMIN MI/Kr 02 T=VOKI VI I 113111271111.1111111. "dal 1111=11.1111111.11Pund ow Stied(2) 04101105 E -17-25-376-001 • , fam 02,014:." _ • -r2N, geE, SEC 25 PART (50: SW 114 BEG AT PT DIST N p0-06-00 E 545 FT FROM SW SEC COR, TH S139-41 7 471714173111/11111 riv47 NIELelliglaMiiintiM 091 11101101 092 • 992 11/13/011 gss • 0412tve6 EtufictingPermft BuildingPermtt BuildingPeTrtait altteriOrReaVieW 2 4 Income Statement Used For: rr Informational Purposes ‘. Income CaPitalization Calculation Giis Rent Multiplier -ealctilatian L_ Vi.:7APP.M.LtpagEttrAblefittV7::_r,,:":? Pakland Cointry:Equaliziliell Division 248-8E8-074 vetiriefica oakland,rni us/equal PorcentAdustment 16o. Ft. Acit 'Reason ntiMIUNIMBRII MIN 1111•1111111111 111111•1111 r=1173 MEM ypotl _ Area *-2 e 12 FAMIgiMINNERSAMI; NEIN ov6rdi . MIL Heat#2 Vexr iU 12 1.85 Quality (51 Good apace Heaters, Radiant % orFirArsa Covered bvrt Heat/1M :13eekei0e Heating & Coating 32.910 I 64 t !itloy; l ikyo 8 Ft rer IR° V2712:=311.1111./EIMMI Has Elevators No LLU1 • T • „1:,-;•. i• "k,. 1 ;$ Perin). 'Page: 1 Document Name: untitled SCL470CM LAND DESCRIPTION INQUIRY -08/19/04 0923 FOR E 17-25-376-017 01 T2N, R8E, SEC 25 02 PART OF SW 1/4 03 BEG AT PT DIST 04 S 89-41-00 E 1204.40 FT & 05 N 00-41-00 E 50 FT 06 FROM SW SEC COR, 07 TH N 00-41-00 E 400 FT, 08 TH S 89-41-00 E 125 FT, 09 TH S 00-41-00 W 400 PT, 10 TH N 89-41-00 W 125 FT 11 TO BEG 1.15 A PP-KEY: 3:HELP 7:PRIOR 8:NEXT 10:MENU PAGE 1 OF 1 Date: 8/19/2004 Time: 9:13:52 AM Page: 1 Document Name: untitled SCL470CM LAND DESCRIPTION INQUIRY 08/19/04 09:21 FOR E 17-25-376-021 01 T2N, R8E, SEC 25 -02 PART OF SW 1/4 03 BEG AT PT 01ST 04 S 89-41-00 E 629 FT 05 FROM SW SEC COR, 06 TH S 89-41-00 E 220.20 FT, 07 TH N 00-11-00 E 400 FT, 08 TH N 89-41-00 W 220.80 FT, 09 TH S 00-06-00 W 400 FT 10 TO BEG EXC 11 THAT PART TAKEN FOR WIDENING 12 OF MAPLE RD 1.13 A 13 6-15-95 FR 005 PF-KEY: 3:HELP 7:PRIOR B:NEXT 10:MENU PAGE 1 OF 1 Date: 8/19/2004 Time: 9:12:46 AM Page: 1 Document Name: untitled SCL470CM .LAND DESCRIPTION INQUIRY 08/19/04 09:23 FOR E 17-25-376-026 01 T2N, R8E, SEC 25 .02 PART OF E 1/2 OF SW 1/4 03 BEG AT PT DIST 04 589-41-00 E 1329.40 FT & 05 N 00-41-00 E 50 FT 06 FROM SW SEC COR, 07 TH S 89-41-00 E 282.09 FT, 08 TH N 00-41-00 E 1630.73 FT, 09 TH S 58-12-00 W 331.90 FT, 10 TH S 00-41-00 W 1457.64 FT 11 TO BEG EXC 12 THAT PART IN PCL 13 BEG AT PT DIST 14 N 87-12-15 E 1010.59 FT 15 FROM SW SEC COR, 16 TH N 02-47-45 W 173.99 FT, 17 TH N 88-26-12 E 368.85 FT, PF-KEY: 3:HELP 7:PRIOR 18 TH N 88-26-12 E 123.93 FT, 19 TH ALG CURVE TO RIGHT, 20 RAD 4090.72 FT, CHORD BEARS 21 N 09-44-27 E 1377.51 FT, 22 DIST OF 1384.10 FT, 23 TH S 70-33-58 E 139 FT, 24 TH ALG CURVE TO LEFT, 25 RAD 3951.72 FT, CHORD BEARS 26 S 08-36-21 E 1484.78 FT, 27 DIST OF 1493.65 FT 28 TO POINT ON S SEC LINE 29 WHICH IS 30 N 87-12-15 E 626.80 FT 31 FROM SD POINT OF BEG 32 PH S 87-12-15 W 33 TO BEG 34 12-5-95 FR 007 8:NEXT 10:MENU PAGE 1 OF 8.18 A Date: 8/19/2004 Time: 9:14:11 AM LAND DESCRIPTION INQUIRY FOR E 17-25376-031 • 05/07/03 14:12 SCL470 Cm MM-1111.111111111alia =mat VL Page: 1 Document Name: untit led 01 T2N, R8E, SEC 25 18 DIST OF 415.90 FT, 02 PART OF W 1/2 OF SW 1/4 19 TH S 05-37-19 E 126_.57 FT, 03 BEG AT PT DIST N 50 FT . 20 TH S 87-12-15 W 470.74 FT 04 FROM SW SEC COR, 21 TO BEG 3.83 A 05 TH N 495 FT, 22 4-16-98 FR 002 & 003 06 TH E 429 FT, 07 TB S 495 FT, 08 TH W 429 FT 09 To BPG EXC 10 THAT PART IN PCL 11 BEG AT SW SEC COR, 12 TH N 02 -52 -41 W 535 FT, 13 TR N 87-07-19 E 50 FT, 14 TH S 02 -52 -41 E 440.37 FT, 15 TH ALG CURVE TO RIGHT, 16 RAD 7699.44 FT, CHORD BEARS 17 N 82-49-50 E 415.85 FT, PF-KEY: 3:HELP 7:PRIOR 8:NEXT 10:HENU PAGE 1 OF 1 Page: 1 Document Name: untitled SCL470CM LAND DESCRIPTION INQUIRY . 08/19/04 09:-21 FOR E 17-25-376-035 01 T2N, R8E, SEC 25 102 PART OF SW 1/4 03 BEG AT PT DIST 04 S 89-41-00 E 849.28 FT & 05 N 00-41-00 E 50 FT 06 FROM SW SEC COR, 07 TH S 89-41-00 E 355.12 FT, 08 TH N 00-41-00 E 400 FT, 09 TN S 89-41-00 E 125 FT, 10 TH N 00-41-00 E 1057.64 FT, 11 TH S 58-26-00 W 974.20 FT, 12 TH ALG CURVE TO RIGHT, f3 RAD 2646 FT, CHORD BEARS 14 S 58-07-56 W 101.47 FT, ,15 01ST OF 101.89 FT, • 16 TH S 00-06-00 W 394 FT, 17 TH S 89-41-00 E 200 FT, PF-KEY: 3:HELP 7:PRIOR 18 TH S 00-06-00 W 145 FT, 19 TH S 89-41-00 E 220.80 FT, 20 TH S 00-11-00 W 350 FT 21 TO BEG EXC 22 THAT PART LYING SLY 23 OF LINE DESC AS 24 BEG AT PT DIST 25 N 02-52-41 W 94.63 FT & 26 0 87-07-19 E 50 FT 27 FROM SW SEC COR, 28 TH ALG CURVE TO RIGHT, 29 RAD 7699.44 FT, CHORD BEARS 30 N 82-49-50 E 415.85 FT, 31 DIST OF 415.90 FT, 32 TH N 05-37-20 W 40 FT, 33 TH ALG CURVE TO RIGHT, 34 RAD 7739.44 FT, CHORD BEARS 8:NEXT 10:MENU PAGE 1 OF 2 Date: 8/19/2004 Time: 9;12:16 AM Page: 1 Document Name: untitled SCL470CM LAND DESCRIPTION INQUIRY 08/19/04 09:21 FOR E 17-25-376-035 35 N 86-24-27 E 548.14 FT, .36 DIST OF 548.25 FT, 37 TH N 88-26-12 E 400 FT 38 TO PT OF ENDING 18.21A 39 11-29-99 FR 016 PF-KEY: 3:HELP 7:PRIOR 8:NEXT 10:MENU PAGE 2 OF 2 Date: 8/19/2004 Time: 9:12:23 AM APPENDIX C PERSONAL PROPERTY LIST OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8, 2008 Personal Property List Brownfield Plan 2401 Maple Road Property Name (Number). Activity Table (1) Analyzer (5) Audiometer (2) Balance System (1) Bariatric Lift (1) Bath (1) Bicycle (1) Biofeedback Unit (2) Biopsy System (1) Cable Column (1) Cardboard Bailer (1) Centrifuges (5) Clinical Recliner (1) Computers (63) Copier (1) CT Scanner (1) Defibrillator (1) Defibrillator (3) Densitometer (1) Dictation system (2) Dishwasher (1) Dose Shielded Workstation (1) Dryer (1) EEG (2) Elliptical Exerciser (1) Ergometer (1) Exam Tables (7) Film Printer (1) Fluidotherapy Unit (1) Force plate (1) Freezer (1) Fume Hood (2) Gamma Camera (2) Gamma Counter (1) Heater (1) Hood (1) Hydrocollator (2) Hyperbaric Chamber (1) Injector (1) Lab System (1) Laser Image (1) Leg Press (1) Mat Table (2) Microscope (1) Microwave (1) Total Amount $1,800 $410,808 $7,890 $7,500 $3,100 $708 $1,500 $3,550 $234,000 $4,400 $11,590 $20,343 $2,590 $139,807 $1,199 $2,010,912 $7,995 $9,630 $70,000 $10,600 $580 $21,500 $469 $47,600 $4,999 $2,795 $36,176 $18,400 $4,200 $7,500 $946 $14,600 $1,623,345 $1,700 $718 $4,380 $4,220 $128.000 $29,905 $10,000 $18,000 $5,000 $27,475 $12,500 $209 Name (Number). Mixer (1) Monitor - Radiation (1) Monitors (60) Multihip (1) Ophthalmoscope (2) Oven (5) PAC Monitor (1) PACS Allowance (1) PACS Impax (1) PACS lmpax QC (1) PACS Viewing Station (3) PACS, Impax (1) Paraffin Bath (1) Patient Lift (1) Plate Readers (1) Printer - Film PACS (1) Printer (20) Pulley System (1) Pulmonary Function Test (1) PUMP (5) Range (1) Rebounder (1) Refrigerator (16) Scanner (8) Scoliosis (1) Simulator (1) Slide Stainer (1) Stimulator (1) Stress Test System (2) Television (20) Treadmill (1) Ultrasound (4) Ultrasound Imaging (1) Vaginal EMG (1) Vascular Diagnostics (1) Ventilator (1) Viewbox, Mammography (5) Viewer X-Ray (1) Warmer (4) Warming Cabinet (1) Water Purification (1) Work Simulator (1) X-Ray unit (4) X-Ray Workstation (1) Total Above Total Amount $386 $650 $72,870 $5,000 $1,580 $2,700 $200,000' $60,000 $17,500 $17,500 $117,153 $17,500 $450 $2,500 , $138,869 $25,000 $54,815 $2,000 $114,152 $7,975 $530 $1,000 $29,929 $7,010 $15,000 $5,000 $2,995 $2,995 $45,000 $34,424 $6,495 $449,236 $150,000 $480 $34,363 $11,500 $4,506 $17,750 $2,074 $6,016 $6,115 $31,900 $890,000 $125 000 $7,723,057 ,r. APPENDIX D SITE PHOTOGRAPHS OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN 2401 MAPLE ROAD PROPERTY MAY 8, 2008 V291M Figure 4a — Site Photo Center Parcel Facing South a M. C 111 I ENVIRONMENTAL Created for: Commerce Township MOB LLC Created by: DKB, May 7, 2008 EMI IMI=2 Figure 4b — Site Photo Northwest Parcel Storage Building 2401 Maple Road Commerce Township, M Jan Created for: Commerce Township MOB LLC ENVIRONMENTAL Created by: DKB, May 7, 2008 p. 4- 1' 1, Resolution #08144 July 17, 2008 The Chairperson referred the resolution to the Finance Committee. There were no objections. FISCAL NOTE (MISC. #08144) July 31, 2008 BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON IN RE: WASTE RESOURCE MANAGEMENT UNIT - RESOLUTION APPROVING THE PROVISIONS OF A BROWNFIELD PLAN FOR THE 2401 WEST MAPLE ROAD PROJECT IN THE CHARTER TOWNSHIP OF COMMERCE TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The resolution adopts a Brownfield Plan relating to the clean-up and redevelopment of property located at 2401 West Maple Road in Commerce Township to restore the property's environmental and economic viability. 2. The developer, Commerce MOB LLC, has assumed environmentally related development costs estimated at $1,204,139 including remediation of environmental impacts, environmental investigations, due care, demolition, and site preparation. 3. The cost of these eligible plan activities will be reimbursed to the developer by the Oakland County Brownfield Redevelopment Authority (OCBRA) from tax capture based on the incremental value of the property. 4. No General Fund/General Purpose amendment or appropriation is required. FINiCE C I ITTEE I • FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Rogers, Potter and Woodward absent. r/270 s/ , Resolution #08144 July 31, 2008 Moved by Rogers supported by Nash the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Burns, Coleman, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel, Hatchett, Jacobsen,- KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Woodward, Zack, Bullard. (24) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). I HEREBY APPROVE THE FOREGOING RESOLUTION 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 July 31, 2008, 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 County of Oakland at Pontiac, Michigan this 31st day of July, 2008. eat Ruth Johnson, County Clerk