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HomeMy WebLinkAboutCOUNCIL MINUTES 1967-06-28 SPECIAL 8826 L MINUTES OF THE ONE HUNDRED THIRTEENTH SPECIAL MEETING OF THE COUNCIL OF THE CITY OF LIVONIA Pursuant to the provisions of Section 8, Chapter IV of the City Charter, the above meeting was held on June 28, 1967, at the City Hall, 33001 Five Mile Road, Livonia, Michigan, and was called to order by the President of the Council at approximately 7:30 P. M.. Roll was called with the following result: Present-- Peter A. Ventura, Rudolf R. Kleinert, Edward H. McNamara, Robert F. Nash, Edward G. Milligan and Jack Salvadore. Absent--Jerry Raymond. Elected and appointed officials present: Addison W. Bacon, City Clerk; Virginia G. Handzlik, Deputy City Clerk; Robert A. Shaw, Director of Public Works; Harry C. Tatigian, Chief Assistant City Attorney; Dan Andrew, Industrial Coordinator. Also present: Stratton S. Brown, Miller, Canfield, Paddock & Stone; David Page, L Allied Supermarkets, Inc. and Mr. A. A. Sharples of Eastman Dillon. By Councilman Kleinert, seconded by Councilman Salvadore, it was #696-67 WHEREAS, the City is a municipal corporation organized and existing under and pursuant to the laws of the State of Michigan and is authorized by Act No. 62, Public Acts of Michigan, 1963, as amended (hereinafter sometimes referred to as "Act No. 62"), to acquire lands within or without its corporate limits and to acquire and construct buildings and improvements thereon and to acquire and install machinery and equipment therein and to lease the same as a project for the purpose of securing and developing industry in or near the City in order to alleviate and prevent conditions of unemployment, to assist and retain local industries, to meet growing competition for new industries and to strengthen and revitalize the economy of the City in general; and WHEREAS, the City is authorized by Act No. 62 to issue Industrial Development Revenue Bonds secured by a mortgage on the Project and payable solely from the revenues derived from leasing the Project thus acquired or constructed through the issuance of such Bonds; and WHEREAS, the City has made necessary arrangements with Allied Supermarkets, Inc. (hereinafter sometimes called "Company') for the location of a Project (as defined in the Lease and Mortgage and Indenture L of Trust approved by this resolution) in the City of Livonia, Michigan, from which Project the City will receive substantial municipal benefits, including, by way of illustration but not limitation, increased employment of its citizens resulting in the alleviation of unemployment within the City, the increased diversification of industry within the City, a material 8827 increase in the City's tax base which will provide a long term source of revenues to the City, and the stimulation of existing and new businesses within the City which may be called upon to assist in the construction of the Project and which, after completion of the Project, will provide numerous services to the Project and to the large number of employees working therein; and WHEREAS, the Company will build the Project and convey the same to the City and the City will lease to the Company under the Lease the Project, which will include, by way of illustration but not limitation, warehousing facilities for such items as groceries, meats, produce, frozen foods and various non-food items, and processing facilities, including a bakery, a milk, ice cream and dairy plant, a potato chip processing facility, a salad preparation processing facility, a meat processing facility, attendant parking facilities and certain other related and supporting facilities; and WHEREAS, the acquisition and leasing of the Project and the issuance of the Bonds by the City, as herein recited and provided, will serve the intended accomplishments and in all respects conform to the pro- visions and requirements of Act No. 62, and WHEREAS, the Bonds to be issued have been authorized by Resolution No. 284-67 of the City Council adopted March 11, 1967, which Bonds are not to be a general obligation of the City and will not be payable from taxes or any other funds or moneys of the City other than rentals to be paid by the Cotapany and which Bonds shall be additionally secured by a Mortgage on the Project; and WHEREAS, the City Council by Resolution No. 491-67 adopted May 13, 1967 did approve the draft Lease of the Project, the draft Mortgage and Indenture of Trust for said Project and the draft of the Underwriting Agreement for the sale of the Bonds, subject to approval by the City Council of the information placed in the blanks contained in each of said documents and together with such other changes as the City Council may agree to; and WHEREAS, the necessary information to complete said Lease of the Project, Mortgage and Indenture of Trust for said Project and Under- writing Agreement for the sale of said Bonds is now available; and WHEREAS, a Preliminary Official Statement and a Final Official Statement for the sale of said Bonds have been prepared; and WHEREAS, it is necessary under the charter of the City and the laws of the State of Michigan that the City Council approve the proposed Lease, Mortgage and Indenture of Trust, Underwriting Agreement and said Preliminary Official Statement and Final Official Statement; and WHEREAS, each of said documents has been reviewed by the City Council; NOW, THEREFORE, BE IT RESOLVED THAT: 8828 1. Franklin National Bank of New York, New York is hereby designated as Trustee under the Mortgage and Indenture of Trust referred to in the preambles hereto. 2. William E. McCahill, Jr. of New York, New York is hereby designated as Co-Trustee under the Mortgage and Indenture of Trust referred to in the preambles hereto. 3. Franklin National Bank of New York, New York is hereby designated as Escrowee under the Mortgage and Indenture of Trust referred to in the preambles hereto. 4. Said Bonds shall be sold to the underwriters listed in the Underwriting Agreement hereinafter approved in accordance with the terms and conditions set forth in said Underwriting Agreement, said Bonds to mature, have mandatory call provisions, bear interest and have provi- sions with respect to redemption prior to maturity and in all other respects to conform to the details spelled out in the Mortgage and Indenture of Trust hereinafter approved. The Mayor, City Clerk and City Treasurer or their authorized deputies are hereby authorized and empowered to execute said Bonds and the coupons attached thereto in the manner pro- vided by law and to deliver the same pursuant to the terms of said Underwriting Agreement. 5. The Lease of the Project on file with the City Clerk and on which has been endorsed by the City Clerk the date of adoption of this resolution, is hereby approved, and the Mayor and City Clerk or their authorized deputies are hereby authorized and directed to execute and deliver said Lease for and on behalf of the City and the City Clerk is directed to affix the City Seal to said Lease. The Mayor and City Clerk or their authorized deputies are authorized and empowered to consent to and make such changes in said Lease as are necessary or desirable to effectuate delivery of the Bonds, provided that such changes do not materially alter the substance of said Lease hereby approved. 6. The Mortgage and Indenture of Trust for said Project on file with the City Clerk and on which has been endorsed by the City Clerk the date of adoption of this resolution, is hereby approved, and the Mayor and City Clerk or their authorized deputies are hereby authorized and directed to execute and deliver said Mortgage and Indenture of Trust for and on behalf of the City and the City Clerk is hereby authorized to affix the City Seal to said Mortgage and Indenture of Trust. The Mayor and City Clerk or their authorized deputies are authorized and empowered to consent to and make such changes in said Mortgage and Indenture of Trust as are necessary or desirable to effectuate delivery of the Bonds, provided that such changes do not materially alter the substance of said Mortgage and Indenture of Trust hereby approved. 7. The Underwriting Agreement for the sale of the Bonds referred to in the preambles hereto and on which has been endorsed by the City Clerk the date of adoption of this resolution, is hereby approved, and the Mayor and City Clerk or their authorized deputies are hereby authorized and directed to execute and deliver said Underwriting Agreement 8829 for and on behalf of the City and the City Clerk is hereby authorized to affix the City Seal to said Underwriting Agreement. The Mayor and City Clerk or their authorized deputies are authorized and empowered to consent to and make such changes in said Underwriting Agreement as are necessary or desirable to effectuate delivery of the Bonds, provided that such changes do not materially alter the substance of said Underwriting Agree- ment hereby approved. 8. The Preliminary Official Statement and the Final Official Statement for the sale of said Bonds, more particularly described in the preambles hereto and on each of which has been endorsed by the City Clerk the date of adoption of this resolution, are hereby approved, and the Mayor or his authorized deputy is hereby authorized and directed to execute and deliver said Preliminary Official Statement and Final Official Statement for and on behalf of the City. The Mayor or his authorized deputy is authorized and empowered to consent to and make such changes in said Preliminary Official Statement and Final Official Statement as are necessary or desirable to effectuate delivery of the Bonds, provided that such changes do not materially alter the substance of said Preliminary Official Statement and Final Official Statement. 9. The Mayor, City Clerk and City Treasurer or their authorized deputies and other officials of the City are hereby authorized and directed to execute and deliver such other opinions, certificates, affidavits or other documents or instruments as may be required by said Lease, Mortgage and Indenture of Trust or Underwriting Agreement or take any and all such action which may be necessary or convenient to effectuate the execution and delivery of said documents or the Bonds referred to in the preambles hereto. 10. All prior resolutions and actions of the City Council and City officials relating to this transaction, including specifically Resolution No. 284-67 adopted on March 11, 1967, Resolution No. 491-67 adopted on May 13, 1967 and Resolution No. 492-67 adopted on May 13, 1967, are hereby ratified, confirmed and approved, provided that all resolutions and parts of resolutions in conflict with this resolution or with the Lease, Mortgage and Indenture of Trust or the Underwriting Agreement approved hereby are rescinded or amended to the extent of such conflict. A roll call vote was taken on the foregoing resolution with the following result- AYES : Kleinert, McNamara, Nash, Salvadore, Milligan and Ventura. NAYS: None. At 8:00 P. M., a recess was called with the full understanding of. the members of. t, e. Council that the meeting would be resumed at approximately 9:15 P.M. Lfor the purpose of considering the additional items set forth in the letter from the Mayor dated June 26, 1967 requesting that a special meeting of the Council be called for the specific purposes set forth therein. At 9:55 P. M. the meeting was resumed with all members present who were named as present in the original roll call of this meeting with the exception of Councilman Salvadore. 8830 The following preamble and resolution were offered by Councilman Kleinert and supported by Councilman Milligan: #697-67 WHEREAS, June 28, 1967, at 8.00 o'clock p.m. , Eastern Standard Time (9:00 o'clock p.m. , Eastern Daylight Saving Time), has been set as the date and time for opening bids for the purchase of $345,000.00 Motor Vehicle Highway Fund Bonds (1967 Series) of the City of Livonia, County of Wayne, Michigan; AND WHEREAS, said bids have been publicly opened and read; AND WHEREAS, the following bids have been received; Bidder Maturity Interest Rate Premium Reynolds & Co. 1968-76 5% $ 7.25 1977-82 4.4o Net interest cost $151,942.75 or 4.54238% Clark, Dodge & Co. 1968-73 5% $93.15 1974 4-3/4% 1975-82 4-1/2% Net interest cost $152,356.85, or 4.5547% City National Bank 1968•-75 5% $60.72 19^6-82 4-1/2% Net interest cost $153,539.28 or 4.59011, National Bank of Detroit 1968-73 5% $24.50 1974 4.90 1975-78 4-3/4 1979-80 4.45 1981-82 4-1/2 Net interest cost $154,123.00 or 4.60756% AND WHEREAS, the bid of Reynolds and Company has been determined to produce the lowest interest cost to the City; NOW, THEREFORE, BE IT RESOLVED THAT: 1. The bid of Reynolds and Company, as above stated, be and the same is hereby accepted. 2. Checks of the unsuccessful bidders be returned to each bidder's representative or by registered mail. 3. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded. A roll call vote was taken on the foregoing resolution with the following result: AYES: Kleinert, McNamara, Nash, Milligan and Ventura. NAYS : None. 8831 By Councilman McNamara, seconded by Councilman Milligan, it was #698-67 RESOLVED, that the City Clerk or the Department of Law enter into renegotiations with the State Highway Department relative to City of Livonia share of cost of Plymouth Road Reconstruction, and construction of Interstate Route Number I-96, prior to making July 1, 1967 payment as set forth under present agreement. A roll call vote was taken on the foregoing resolution with the following result. AYES: Kleinert, McNamara, Nash, Milligan and Ventura. NAYS: None. By Councilman Milligan, seconded by Councilman McNamara, it was #699-67 RESOLVED that, Burton Share, 26711 Woodward, Huntington Woods, Michigan, as proprietors, having requested the City Council to approve the proposed preliminary plat of the following subdivision: Plymouth-Levan Industrial Subdivision No. 2, located in the S.W. 1/4, Section 29, City of Livonia, the said proposed preliminary plat being dated December 6, 1965, and it further appearing that tentative approval of such preliminary plat was given by the City Planning Commission, after due notice and a public hearing on July 6, 1965; and it further appearing that such preliminary plat, together with Development Plans and Specifications for improvements therein have been examined and approved by the Department of Public Works as is set forth in the report of that department dated June 28, 1967; therefore, the City Council does hereby approve of the said preliminary plat on the following conditions• (1) All of the improvements, utilities and grading shall be constructed, installed and accomplished in conformity with the provisions of the ordinances of the City of Livonia, including the Plat Ordinance, Ordinance No. 500, as amended, the subdivision regulations of the Planning Commission; the regulations and specifications of the Department of Public Works and the development plans submitted by the proprietor and approved by such Department, all such improvements to be constructed, installed, accomplished and completed within a period of two (2) years from the effective date of this resolution; failing this, the approval contained herein shall be considered null, void and of no effect whatsoever; (2) That all inspection fees and other charges due to the City of Livonia shall be fully paid in the time and manner provided in the said Plat Ordinance, as amended; (3) That the installation of such improvements shall be subject at all times to the supervision and inspection and final approval of the Department of Public Works and such improvements shall not be considered as having been satisfactorily and completely installed until there is filed with the City Council the certificate as provided in Section 7.03 of said Plat Ordinance, as amended; 8832 (4) That the proprietor enter into an agreement with the City of Livonia agreeing to construct, within the prescribed period of time and in the prescribed manner, all improvements required to the extent required by the City of Livonia and as shown on the approved development plans; (5) That the following cash payments be made to the City: Trees (not applicable) Traffic Control Signs $ 69.75 Review of plans, inspection and administration (5% before contingencies) $6,425.00 (6) That the final true record plat of the aforesaid subdivision shall be submitted and must receive final approval of the City Planning Commission as evidence that such plat is in compliance with existing subdivision regulations; (7) That the final true plat of the aforesaid subdivision shall be submitted and must receive the final approval of the City Council within two (2) years from the effective date of this resolution; the City Council shall approve final plats of the aforesaid proposed subdivision if drawn in substantial conformity with the proposed plat as approved herein and provided there has been compliance with all other requirements of the Plat Act, Plat Ordinance, and this resolution. (8) That, for the purpose of obtaining approval of final plats prior to the completion of all required improvements, the proprietor may file with the City of Livonia, surety bond, certified check, cash bond or other financial assurance in such form as may be approved by the Department of Law, guaranteeing the satisfactory installation of all such improvements, utilities and grading by the proprietor within the prescribed period; that in the event the proprietor elects to deposit such financial assurances, the same shall be in the following amounts: General Improvement Bond - $141,300.00, of which at least 10,000.00 shall be in cash. Sidewalk Bond - Not applicable. (9) That the distribution lines for telephones and electric service are to be placed underground and ornamental street lights are to be provided throughout the subdivision, in accordance with City Ordinances. (10) Developer will install 31 foot wide, 9" reinforced concrete pavement throughout the subdivision, to be widened to 37 foot wide at Plymouth Road intersection. A roll call vote was taken on the foregoing resolution with the following result: AYES- Kleinert, McNamara, Nash, Milligan and Ventura. NAYS: None. By Councilman Milligan, seconded by Councilman McNamara, and unanimously adopted, this 113th Special Meeting of the Council of the City of Livonia, was duly adjourned at 10:05 P. M., June 28, 1967. .41 ADDISON W. BACON Clerk