HomeMy WebLinkAboutResolutions - 2008.06.12 - 9520PLANNING AND BUILDING CO ITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
MISCELLANEOUS RESOLUTION 108121 June 12, 2008
BY: PLANNING AND BUILDING COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
APPROVING PROJECT PLAN (THREE M TOOL & MACHINE, INC. PROJECT) - CITY OF WIXOM
To Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS The Economic Tevelopment Corporation of the County of Oakland
(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"); and
WHEREAS 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 letter of credit
issued by a financial institution acceptable to the EDC will be available to
pay debt service; and
WHEREAS the governing body of the City of Wixom, Oakland County,
Michigan, has also approved the Project Plan and given its consent to the
exercise of jurisdiction over the Project by the EDC; and
WHEREAS the Board of Commissioners has held a public hearing to consider
whether the Project Plan constitutes a public purpose as contemplated by the
Act; and
WHEREAS the Board of Commissioners, following such public hearing and
its review of the Project Plan, hereby certifies, approves and concurs in the
determinations of the EDC with respect thereto.
NOW THEREFORE BE IT RESOLVED that the Oakiand County Board of
Commissioners hereby determines that the Project Plan constitutes a public
purpose as contemplated by the Act.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners
hereby certifies and approves the Project Plan.
BE IT FURTHER RESOLVED that the EDC is hereby authorized 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_
SE IT FURTHER RESOLVED that the County Clerk is hereby directed to
provide four certified copies of this resolution to the Assistant Secretary of
the Board of the EDC.
Chairperson, on behalf of the Planning ana Building Committee, I move
the adoption of the foregoing resolution.
THE ECONOMIC DEVELOPMENT CORPORATION
OF THE COUNTY OF OAKLAND
Oakland County, Michigan
Three M Tool & Machine. Inc. Project
PROJECT PLAN
CONTENTS
1. Summary Description of Project (Page 1)
2. Project Plan Certification by Company (Page 2)
3. Statutorily Required Information (Page 3)
Exhibits
"A" - Project Area Legal Description
"B" - Letter of Credit or Bond Purchaser's Commitment Letter
"C" - Company Certificate Regarding Transfer of Employment
"D" - Company Certificate Regarding Payment of Prevailing Wages
Other
PROJECT PLAN
SUMMARY DESCRIPTION OF
Three M Tool & Machine, Inc. Project
OWNERS OF PROJECT:
CONTACT PERSON:
PROJECT LOCATION:
PROJECT AREA/
DISTRICT AREA:
NATURE OF PROJECT:
EMPLOYMENT CREATED
OR RETAINED:
TOTAL PROJECT COST:
BONDS TO BE ISSUED:
Three M Tool 8z Machine. Inc.. a Michigan corporation
Three M Investments, L.L.C., a Michigan limited liability
company
Michael A. Medwid
Sharon Medwid
8155 Richardson Road
Commerce Township, MI 48390
50759 Century Court, City of Wixom, Oakland County, MI
See Exhibit A
The project consists of the acquisition of 2.95 acres of land, the
acquisition and rehabilitation of an existing approx. 42,600 s.f.
manufacturing facility located on the property, and the
acquisition and installation of machinery and equipment.
20 new jobs are expected to be created and 60 existing jobs will
be retained.
S10.000,000
S10.000,000
Tel.# (248) 363-1555
FAX# (248) 363-4422
LETTER OF CREDIT ISSUER
OR BOND PURCHASER: Comerica Rank
By:
Its: Member President
By:
Its:
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.
Three M Tool & Machine, Inc. Three M Investments, L.L.C.
Dated:
PROJECT PLAN
STATUTORILY REQUIRED INFORMATION REGARDING
Three M Tool & Machine, Inc. Project
A. THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER
PUBLIC FACILITIES WITHIN THE PROJECT DISTRICT AREA; THE LOCATION,
CHARACTER, AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRIVATE
LAND USES NOW EXISTING AND PROPOSED FOR THE PROJECT AREA,
INCLUDING RESIDENTIAL. RECREATIONAL, COMMERCIAL, INDUSTRIAL,
EDUCATIONAL, AND OTHER USES; AND A LEGAL DESCRIPTION OF THE
PROJECT AREA:
The Project site that is a part of the Project Plan is comprised of an existing approximately
42,600 s.f. manufacturing facility situated on 2,95 acres of land located on the North side of
Century Court approximately 1/10 mile West of Century Drive. Century Court is located .2
miles south of Pontiac Trail South off Century Drive. Century Drive is located on the South
side of Pontiac Trail approximately .9 miles West of Wixom Road. The facility location is
surrounded to the East, West, North and South by light industrial/heavy industrial.
The location of the Project Area is set forth in the legal description attached hereto.
There will be no alterations of the existing improvements in the Project Area, other than
interior building renovations and interior building improvements which may be ancillary
to the installation of the machinery and equipment comprising the Project.
Legal description of Project Area attached as Exhibit A.
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:
There will be no alterations to the existing improvements in the Project Area, other than
interior building renovations and interior building improvements which may be ancillary
to the installation of the machinery and equipment comprising the Project.
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:
Three M Tool & Machine, Inc. intends to make renovations to the facility over the next year.
Proposed renovations include interior cement work for rebuilding and refurbishing the floors
and machinery & equipment foundations, renovating the electrical, plumbing and air
compression arid circulation systems, installation of a heating and air conditioning system, and
performing various interior and exterior renovations. These renovations are estimated to cost
approx. $500,000. All renovations are expected to be completed within a 1 year time frame
from the date of issuance of the Bonds.
3
Description of Bond Project Costs Estimated Amounts
Land 425,000
Building 2,075,000
Machinery and Equipment 7,000.000
Building Renovation 500.009
TOTAL COSTS 10,000.000
D. A DESCRIPTION OF THE CONSTRUCTION OR STAGES OF
CONSTRUCTION PLANNED, AND THE ESTIMATED TIME OF COMPLETION OF
EACH STAGE:
Not Applicable
E. A DESCRIPTION OF THE PARTS OF THE PROJECT AREA TO BE LEFT
AS OPEN SPACE AND THE USE CONTEMPLATED FOR THE SPACE:
There will be no change to areas left as open spaces in the Project Area.
F. A DESCRIPTION OF PORTIONS OF THE PROJECT AREA WHICH THE
ECONOMIC DEVELOPMENT CORPORATION OR THE COMPANY DESIRES TO
SELL, DONATE, EXCHANGE OR LEASE TO OR FROM THE MUNICIPALITY AND
THE PROPOSED TERMS:
The Economic Development Corporation of the County of Oakland (the "EDC") will not
sell, donate, exchange or lease any portion of the Project Area to or from the
municipality,
G. A DESCRIPTION OF DESIRED ZONING CHANGES AND CHANGES IN
STREET, STREET LEVELS, INTERSECTIONS AND UTILITIES:
No changes in zoning, streets, street levels, intersections or utilities as a result of the
Project.
H. A DESCRIPTION OF THE PROPOSED METHOD OF FINANCING THE
PROJECT. INCLUDING ATTACHMENT OF A COPY OF THE LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER:
4
The project will be financed through the issuance and sale of The Economic
Development Corporation of the County of Oakland industrial revenue bonds in an
aggregate principal amount not to exceed $10,000.000. The bonds will be structured as
variable rate demand obligations secured by a letter of credit issued by a commercial
bank. The Borrower has obtained a commitment from Comerica Bank to provide a letter
of credit to secure the bonds (see Attachment B) and by Comerica Securities to act as
placement agent in the offering and sale of the bonds.
The bonds will not be a general obligation of any governmental unit and will not be
payable from tax revenues or other funds of either the County of Oakland or the State of
Michigan.
The proceeds of the Bonds will be lent to the Applicant pursuant to a loan agreement by
and between the Applicant and the EDC and will be used by the Applicant and the EDC
for the purpose of financing the costs of the Project and certain eligible issuance costs
relating thereto. In accordance with the loan agreement. the Applicant will be obligated
to make payments sufficient to make timely payments of principal and interest on the
Bonds. The Bonds will not be a general obligation of the EDC but will be secured by a
pledge of revenues in the loan agreement,
I. A STATEMENT REGARDING THE PAYMENT OF PREVAILING WAGE
AND FRINGE BENEFIT RATES AS DETERMINED PURSUANT TO ACT NO. 166 OF
THE MICHIGAN PUBLIC ACTS OF 1965, AS AMENDED (REGARDING WAGES ON
STATE CONTRACTS):
See Exhibit D
J. 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:
Michael A. Medwid - President
Sharon Medwid- Untitled
K. DESIGNATION OF THE PERSON 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. TO THE
EXTENT THAT INFORMATION IS PRESENTLY AVAILABLE:
The Project is being undertaken for the benefit of Three M Investments, L.L.C. and Three
M Tool & Machine. Inc. and their shareholders and will be operated by Three M Tool &
Machine, Inc. The land and building will be owned by Three M Investments, L.L.C. and
will be leased to Three M Tool & Machine, Inc. The Machinery and Equipment portion
of the Project will be owned by Three M Tool & Machine, Inc. Three M Investments,
L.L.C. and Three M Tool & Machine, Inc. are related through common ownership. No
5
portion of the Project is not expected to be sold or conveyed to any other party. The
entire facility will be operated by the Three M Tool & Machine, Inc.
L. IF THERE IS NOT AN EXPRESS OR IMPLIED AGREEMENT WITH A
PERSON OR 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
M. 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, 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:
Not Applicable
N. A PLAN FOR ESTABLISHING PRIORITY FOR THE RELOCATION OF
PERSONS DISPLACED BY THE PROJECT IN NEW HOUSING IN THE PROJECT
AREA:
Not Applicable
0. PROVISION FOR THE COSTS OF RELOCATING PERSONS DISPLACED
BY THE PROJECT AND FINANCIAL ASSISTANCE AND REIMBURSEMENT OF
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
P. A PLAN FOR COMPLIANCE WITH ACT NO. 227 OF THE MICHIGAN
PUBLIC ACTS OF 1972, WHICH PERTAINS TO PROVIDING FINANCIAL
6
ASSISTANCE, ADVISORY SERVICES AND REIMBURSEMENT OF CERTAIN
EXPENSES TO DISPLACED PERSONS:
Not Applicable
Q. OTHER MATERIAL AS THE ECONOMIC DEVELOPMENT
CORPORATION, LOCAL PUBLIC AGENCY, OR GOVERNING BODY CONSIDERS
PERTINENT:
Not Applicable
7
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Page 1 of
GENERAL INFORMATION
Site Address
50759 CENTURY CT WIX0M,MI 48393-2066
Postal Address>
8155 RICHARDSON RD COMMERCE TOWNSHIP,MI_48390-
Parcel ID
2206101027
Owners
THREE M INVESTMENTS. LLC
Municipality
CITY OF WIXOM
ASSESSMENT INFORMATION
Assessed Value
1134050
Taxable Value
1134050
Use
INDUSTRIAL IMPROVED
School District
WALLED LK CNSLDTD SC-I
Neighborhood Code
IM4
Date Added
6/2/1998
Property Description
TIN, R8E, SEC 6 OAKLAND COUNTY CONDOMINIUM PLAN NO 1045 CENTURY
INDUSTRIAL PARK UNIT 27 L 17259 P 095 5-13-98 FR 100-009
Exhibit A
PROJECT AREA LEGAL DESCRIPTION
Land in the City of Wixom. County of Oakland, State of Michigan
Exhibit B
LETTER OF CREDIT OR
BOND PURCHASER'S COMMITMENT LETTER
Connate* Bank
Middle Market Banking
18? N, Old Woodward Avenue
Birmingham. Mr 48009
(2481 988-2623; Fax: (248) 644-5262
Thomas G. Hour
Vice President
May 15, 2008
Mr. Michael A. Medwid
President
Three M Tool & Machine, Inc.
8155 Richardson Road
Commerce Township, MI 48390
Dear fvlike,
We are pleased to vont= that Come rica Bank ("Bank") has approved a Letter of Credit ("LOC") to support an
Economic Development Corporation of the County of Oakland ("F.DC") tax exempt bond financing of up to
$10,000,000 principal amount for the acquisition of land and an existing building, improvements to the land and
building, and the acquisition and installation of machinery and equipment till to be placed in service within the
City of Wixom, Michigan and operated by Three M Tool & Machine, Inc. (the "Obligor"). This letter is Bank's
offer to commit to said LOC to support such financing, subject to the terms and conditions of a separate
supplemental commitment letter by the Bank to Obligor and certain affiliated entities dated May 12, 2008
("supplemental letter"), and also subject to the terms and conditions described in the approval and to
documentation satisfactory in form and content to Bank, Blaze] Long. PC, as Bond Counsel, the EDC, and
subject to an appropriate volume cap allocation by Michigan Department of Treasury.
This offer to commit shall expire at Bank's option (a) if Bank ha F not received the fully signed supplemental
letter by the applicable acceptance date. or (b) the Bank's corm-Minuet is terminated or cancelled as provided in
the supplemental letter.
We will help in any way we can and look forward to workina with you on this Project Please call me at any
time if there are any questions on the content of this letter or the contemplated transaction.
Very truly yours,
COPT1CA BANK
Bv: 41nLOW By:
Thomas G. Hoger
Its: Vice President
)emur,. ).4499:
Exhibit C
COMPANY CERTIFICATE REGARDING
TRANSFER OF EMPLOYMENT
(Three M Tool & Machine, Inc. Project)
The undersigned, Three M Tool & Machine, Inc., a Michigan corporation and Three
M Investments, L.L.C., a Michigan limited liability company (collectively, the "Company"),
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 Company's knowledge
and belief, only after thorough investigation and discussion with all owners of the Company
and others who might have knowledge regarding the subject matter.
2. The Company 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 Company 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 the Three M Tool & Machine, Inc. Project (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 frill-time persons from a municipality (as that term is defined in
the Act) of this State to Wixom. Michigan, the municipality in which the Project will be
located, unless the Company has first obtained a consent to the proposed transfer of
employment from the governing body of each municipality from which employment is to be
transferred.
5. The Company understands that a covenant to effectuate the purposes of this
Certificate will be included in those covenants to be made by the Company when bonds are
issued by the EDC for the benefit of the Project.
Three M Tool & Machine, Inc. Three M Investments. L.L.C.
By: --1:14,11-7 By:
Its: President Its: Member
Dated: 1C72-
Member
By:
Its: President
By:
Its:
Exhibit D
COMPANY CERTIFICATE REGARDING
PAYMENT OF PREVAILING WAGES
(Three M Tool & Machine, Inc. Project)
The undersigned, Three M Tool & Machine, Inc.. a Michigan corporation and Three
M Investments, L.L.C., a Michigan limited liability company (collectively, the 'Company"),
hereby certifies to The Economic Development Corporation of the County of Oakland (the
"EDC") as follows:
1. The Company understands that this Certificate is a statutory requirement under
the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of
1974, as amended (the "Act'') which, if improperly made or based upon any material
misrepresentation or inaccuracy, might invalidate the proceedings regarding the Three M Tool
& Machine, Inc. Project (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.
2. Within the meaning and intent of Section 8(4)(h) of the Act, all persons
performing work on the construction of the Project will be paid the prevailing wage and fringe
benefit rates for the same or similar work in the locality in which the work is to be performed,
as determined pursuant to Act No. 166 of the Michigan Public Acts of 1965, as amended.
Three M Tool & Machine, Inc. Three M Investments, L.L.C.
Dated:
C /17 /O y
Resolution #08121 June 12, 2008
Moved by Douglas supported by Potter the resolution be adopted
Vote on resolution:
AYES: KowaII, Long, Middleton. Nash, Potter, Potts, Rogers, Scott, Spector, Woodward, Zack,
Bullard, Burns, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel,
I-Patchett, Jacobsen. (23)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
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 June
12, 2008, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand anci affixed the seal of the County of Oakland at
Pontiac. Michigan this 12th day of June. 2008.
Gat
Ruth Johnson, County Clerk