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HomeMy WebLinkAboutMinutes - 13th - February 14, 1980 signed63 MINUTES OF A REGULAR MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION OF LIVONIA A Regular Meeting of the Economic Development Corporation of Livonia was called to order by the Treasurer, in the absence of the Chairman, Vice Chairman, and Secretary, at approximately 7:15 p.m., February 14, 1980, in the Council Chambers of the New City Hall, 33000 Civic Center Drive, Livonia, Michigan. DIRECTORS PRESENT: DIRECTORS ABSENT: Mr. Kenneth Hale Mr. Frank Hand Mr. Alan Helmkamp Mr. Robert Jankowski Ms. Helen Kavanaugh *Mr. Peter Ventura Mr. Michael O'Connor Mr. Ronald Mardiros Mr. Angelo Plakas Mr. Stanley Telman Mr. Bernard Pickard OTHERS PRESENT: Mr. Daniel Gilmartin, Executive Director Ms. Marie King, Recording Secretary Mr. Timothy Faricy, Allen Group Mr. Richard Kercic (Spectator) Mr. Mark Rosenfeld, Jacobsons Mr. Ray Nagle, Nagle Paving Company Mr. William Brennan, Nagle Paving Company Mr. Dennis Neiman, Miller/Canfield Mr. Hugh Smith, Miller/Canfield The Acting Chairman, Mr. Helmkamp, asked Ms. Kavanaugh to be Acting Secretary for the purposes of this meeting. On a motion by Mr. Hand, supported by Mrs. Kavanaugh, it was #80-91 RESOLVED, that the minutes of the Special Meeting of February 4, 1980, of the Livonia Economic Development Corporation, be approved as submitted. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh NAYS: None The Acting Chairman declared the resolution adopted. The Executive Director explained that the first resolution before the EDC this evening regards the approval of the Project Area for the Jacobson's Department Store project. The resolution designates Exhibit A, a 12.669 acre parcel, as the site to be implemented. It is proposed that an additional resolution to be forwarded 64 to the Planning Commission would broaden the proposed Project District Area to include significantly affected neighborhoods. The format for establishing the Project District Area meets with the approval of Mr. Neiman. The Executive Director introduced Mr. Mark Rosenfeld, Executive Vice President of Jacobson's. Mr. Rosenfeld showed various elevations of the site plan. It will be actually two stores with one joint wall. One store will be strictly for clothing, and the other will be items for the home. *Mr. Ventura arrived at 7:23 p.m. Mr. Ielmkamp returned the gavel to the Chairman at 7:24 p.m. Mr. Rosenfeld said that the Ohio Company is buying all of the bonds and it will be their responsibility to distribute them from there. Mr. Ventura added that the title of the project will rest with the EDC, but the taxes will be the responsibility of Jacobsons. On a motion by Mr. Helmkamp, supported by Mr. O'Connor, it was #80-92 WHEREAS, there exists in the City of Livonia (the "City") the need for certain programs to alleviate and prevent conditions of unemployment and to assist and retain local industries and commercial enterprises and to encourage the location of industries and commercial enterprises in order to strengthen and revitalize the City's economy; and WHEREAS, there has been induced by the Board of Directors of the Corporation a project relating to the construction and operation of a commercial store to be located in the City of Livonia, County of Wayne, Michigan for use by Jacobson Stores, Inc., a Michigan corporation (the "Company"); and WHEREAS, the Corporation in conformity with Act 338 of the Public Acts of 1974, as amended ("Act 338"), has determined a proposed project area; NOW, THEREFORE, BE IT RESOLVED: 1. Pursuant to Section 8(1) of the Act, the Board of Directors of the Corporation upon the advice of the Company hereby proposed that the land area described in Exhibit A attached hereto and made part hereof is the land area which will be acquired in the implementation of the Project and hereby designates to the Incorporating Unit's Planning Board and legislative body said land area described in Exhibit A as the project area for the Project. 65 2. The Secretary of the Corporation be and is hereby directed to (a) communicate the proposed Project area boundaries to the aforesaid Planning Board and legislative body by conveying to each of the foregoing bodies a certified copy of this resolution, and (b) notify the Chief Executive Officer of the Incorporating Unit of this Corporation's intent to commence a project that two additional directors of the Corporation representative of neighborhood residents and business interests likely to be affected by the proposed Project may be appointed. 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 motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura, O'Connor NAYS: None The Chairman declared the resolution adopted. The next item on the agenda was the consideration of an inducement resolution for The Allen Gruop. The Executive Director explained that adoption of the pre- pared resolution would offer the Allen Group the inducement privileges and would enable the company to implement financing. The Allen Group seeks to double the size of its existing Advanced Technology and Testing Division, at 12921 Stark Road. Mr. Timothy Faricy, Vice President, appeared at the January 10, 1980 meeting and is here again to answer any questions the Board of Directors may have. Mr. Faricy explained that the expansion is needed because of the continued growth in the company. Twenty-five additional people will be added in 1980 and more in 1981. There may be some consolidation but it will be primarily used for growth. On a motion by Mr. Hand, supported by Mr. Hale, it was #80-93 WHEREAS, there has been presented to the Board of Directors of The Economic Development Corporation of the City of Livonia (the "Corporation") a proposal relating to the acquisition, construction and operation of an industrial facility to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") con- sisting of an expansion to an existing industrial facility together with the site and machinery and equipment therefor for use by The Allen Group Inc., a Delaware corporation (the "Company"); and 66 WHEREAS, said proposal appears to have merit as a "Project" as defined in Act 338, Michigan Public Acts of 1974, as amended (the "Act") and to meet the need for programs, services and facilities as described in the Act; and WHEREAS, although a "Project Plan" as defined in the Act has not yet been completed or approved with respect to the proposed facility (the "Project"), it is likely that the Project will require issuance of revenue bonds by the Corporation; and WHEREAS, it is desirable to begin proceedings under the Act with respect to the Project and to retain the services of bond counsel to begin preparation of documents with respect to such revenue bonds in order to induce the Company to implement the proposal so as to provide to the Incorporating Unit and its citizens necessary programs, services and facilities; NOW, THEREFORE, BE IT RESOLVED THAT: 1. Pursuant to Section 8(1) of the Act, the Board of Directors of the Corporation upon the advice of the Company hereby proposes that the land area described in Exhibit A attached hereto and made part hereof is the land area which will be acquired in the implementation of the Project and hereby designates to the Incorporating Unit's Planning Board and legislative body said land area described in Exhibit A as the project area for the Project. 2. The Secretary of the Corporation be and is hereby directed to (a) communicate the proposed Project area boundaries to the aforesaid Planning Board and legislative body by conveying to each of the foregoing bodies a certified copy of this resolution, and (b) notify the Chief Executive Officer of the Incorporating Unit of this Corporation's intent to commence a project that two additional directors of the Corporation representative of neighborhood residents and business interests likely to be affected by the proposed Project may be appointed. 3. In order to more fully induce the location of the Project in the proposed project area and subject to the hereinafter special provisions, the Corporation will issue its economic development limited obligation revenue bonds in an amount presently estimated of not to exceed Two Million Dollars ($2,000,000), for the purpose of paying all or part of the cost of the Project and the costs incidental to the issuance of the bonds. Said bonds will be issued pursuant to the Act provided that a lease, lease purchase contract or installment sales contract, and other documents and details pertaining to the bonds are prepared with such provisions and details as are acceptable to and approved by this Board of Directors and provided, further, that all other necessary action is taken in conformance with the Act and provided, further, that the bonds can be sold. 4. The proceedings and agreements relating to the Corporation's acquisition of the Project and issuance of the bonds shall contain such provisions and details as shall absolutely and completely make certain that under no circumstances will the Corporation, the Incorporating Unit, the State of Michigan, or any of its taxpayers or citizens, ever be required to pay the principal of and interest on, or any costs relating to the bonds from tax revenues or other funds of such governmental units, 67 and shall in addition contain provisions fully protecting the Corporation, the Incorporating Unit, and State of Michigan against any other liability and all costs relating to the bonds or the Project. 5. By adoption of this resolution the Corporation assumes no obligation or liability to the Company for any loss or damage that may result to the Company from the adoption of this resolution and all costs of the issuance of the bonds and any and all other costs relating to the acquisition, financing, ownership or operation of the Project shall be paid from the proceeds of sale of the bonds or by the Company. 6. The firm of Miller, Canfield, Paddock and Stone of Detroit, Michigan, is hereby designated and retained by the Corporation as bond counsel with respect to the revenue bonds to be issued in connection with the Project, and is authorized and directed to prepare and submit to all appropriate parties all proceedings, agreements and other documents as shall be necessary or appropriate in connection with the issuance of such bonds, to make application on behalf of the Corporation to the United States Internal Revenue Service and other governmental agencies for such income tax and other rulings and approvals as may be necessary in rela- tion to the issuance of such bonds, and the Secretary of this Corporation is authorized to execute such powers of attorney and other documents as may be appropriate in connection with the foregoing. The legal fees of Miller, Canfield, Paddock and Stone for work done in connection with the Project shall be paid from the proceeds of sale of such bonds or by the Company and in any event shall be at no cost to the Corporation. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: None The Chairman declared the resolution adopted. The next project before the Board was the Nagle Paving Company. The Nagle Paving Company has been in the asphalt contracting business for 22 years. They are seeking EDC approval to finance the purchase of two pieces of equipment which would replace existing equipment with technologically -sound improvements. Mr. Neiman pointed out, however, that for the purposes of the EDC Act, it would be considered a structure because it is permanently fixed. Mr. Ventura questioned whether this would be allowed under the Livonia Zoning Ordinances, because it is a non -conforming use and therefore not allowed to make any alterations or additions. Mr. Hand agreed with Mr. Ventura that if it is a valid non -conforming use, it may not be altered. 68 Mr. Nagle commented that he had talked with Mr. Kerby, Chief Building Inspector, and Mr. Kerby seemed to think he would be able to issue Nagle Paving a building permit. The Board agreed that these alterations would greatly improve the atmosphere around the Nagle Paving Company, and the traffic would be less because they would keep shorter working hours. However, the concern of the Board was that Nagle Paving Company would have to pay the EDC its fee at the time of the issuance of the Inducement Resolution and then would probably be turned down by the Planning Commission and/or Council because of the Zoning Ordinance, and the money is not refundable. Mr. Nagle was confident that the Company would be able to make these alterations and was willing to take the risk. Mr. Ventura commented that it was not the job of the EDC to uphold the Zoning Ordinances. That would be the function of the Planning Commission and the City Council. On a motion by Mr. Hale, supported by Mrs. Kavanaugh, it was #80-94 WHEREAS, there has been presented to the Board of Directors of The Economic Development Corporation of the City of Livonia (the "Corporation") a proposal relating to the construction and operation of a commercial facility, involving structures, machinery and equipment therefor, to be located in the City of Livonia, County of Wayne, Michigan (the "Incoporating Unit") for use by Nagle Paving Company, a Michigan corporation (the "Company"); and WHEREAS, said proposal appears to have merit as a "Project" as defined in Act 338, Michigan Public Acts of 1974, as amended (the "Act") and to meet the need for programs, services and facilities as described in the Act; and WHEREAS, although a "Project Plan" as defined in the Act has not yet been completed or approved with respect to the proposed facility (the "Project"), it is likely that the Project will require issuance of revenue bonds by the Corporation; and WHEREAS, it is desirable to begin proceedings under the Act with respect to the Project and to retain the services of bond counsel to 69 begin preparation of documents with respect to such revenue bonds in order to induce the Company to implement the proposal so as to provide to the Incorporating Unit and its citizens necessary programs, services and facilities; NOW, THEREFORE, BE IT RESOLVED THAT: 1. Pursuant to Section 8(1) of the Act, the Board of Directors of the Corporation upon the advice of the Company hereby proposes that the land area described in Exhibit A attached hereto and made part hereof is the land area which will be acquired in the implementation of the Project and hereby designates to the Incorporating Unit's Planning Board and legislative body said land area described in Exhibit A as the project area for the Project. 2. The Secretary of the Corporation be and is hereby directed to (a) communicate the proposed Project area boundaries to the aforesaid Planning Board and legislative body by conveying to each of the foregoing bodies a certified copy of this resolution, and (b) notify the Chief Executive Officer of the Incorporating Unit of this Corporation's intent to commence a project that two additional directors of the Corporation representative of neighborhood residents and business interests likely to be affected by the proposed Project may be appointed. 3. In order to more fully induce the lcoation of the Project in the proposed project area and subject to the hereinafter special provisions, the Corporation will issue its economic development limited obligation revenue bonds in an amount presently estimated of not to exceed Six Hundred Thousand Dollars ($600,000), for the purpose of paying all or part of the cost of the Project and the costs incidental to the issuance of the bonds. Said bonds will be issued pursuant to the Act provided that a lease, lease purchase contract or installment sales contract, a memorandum of agreement in the form of Exhibit B attached hereto, and other documents and details pertaining to the bonds are prepared with such provisions and details as are acceptable to and approved by this Board of Directors and provided, further, that all other necessary action is taken in conformance with the Act and provided, further, that the bonds can be sold. 4. The proceedings and agreements relating to the Corporation's acquisition of the Project and issuance of the bonds shall contain such provisions and details as shall absolutely and completely make certain that under no circumstances will the Corporation, the Incorporating Unit, the State of Michigan, or any of its taxpayers or citizens, ever be required to pay the principal of and interest on, or any costs relating to the bonds from tax revenues or other funds of such governmental units, and shall in addition contain provisions fully protecting the Corporation, the Incorporating unit, and State of Michigan against any other liability and all costs relating to the bonds or the Project. 5. By adoption of this resolution the Corporation assumes no obliga- tion or liability to the Company for any loss or damage that may result to the Company from the adoption of this resolution and all costs and 70 expenses in connection with the construction of the Project and all costs of the issuance of the bonds and any and all other costs relating to the acquisition, financing, ownership or operation of the Project shall be paid from the proceeds of sale of the bonds or by the Company. 6. The firm of Miller, Canfield, Paddock and Stone of Detroit, Michigan, is hereby designated and retained by the Corporation as bond counsel with respect to the revenue bonds to be issued in connection with the Project, and is authorized and directed to prepare and submit to all appropriate parties all proceedings, agreements and other documents as shall be necessary or appropriate in connection with the issuance of such bonds, to make application on behalf of the Corporation to the United States Internal Revenue Service and other governmental agencies for such income tax and other rulings and approvals as may be necessary in relation to the issuance of such bonds, and the Secretary of this Corporation is authorized to execute such powers of attorney and other documents as may be appropriate in connection with the foregoing. The legal fees of Miller, Canfield, Paddock and Stone for work done in connection with the Project shall be paid from the proceeds of sale of such bonds or by the Company and in any event shall be at no cost to the Corporation. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: None The Chairman declared the resolution adopted. It was suggested to the Executive Director that on questionable matters such as Nagle Paving Company's ability to alter his construction to house the new equipment, Mr. Gilmartin check with the City Attorney to get his interpre- tation of the ordinance. Then, the Executive Director could report to the Board. The Executive Director suggested that the Board consider the possibility of amending the application regarding the fees. Presently, it reads that 1/10 of 1% of the project cost is due at the time of the Inducement Resolution. The Executive Director would like to see that changed to be due at the time the Project Plan is approved. Mr. Neiman agreed that this would be better because the applicant would be able to give a more accurate figure for the total project cost. At this time, Mr. Hand gave his report regarding the R. L. Jones Insurance Company insuring the members of the Board. 71 0n a motion by Mr. Hale, supported by Mrs. Kavanaugh, it was #I80-95 WHEREAS the Economic Development Corporation of the City of Livonia will be added to the City of Livonia's comprehensive liability coverage as an additional insurer, providing the members all the rights and benefits of the City's policy for all activities nominal or incidental to our position in carrying out the duties of the position; and WHEREAS the Economic Development Corporation of the City of Livonia will also be added to the City of Livonia's Officer's and Director's Policy for a premium charge of $100, providing protection against suits naming the corporation as well as individual board members were they named in the suit; and WHEREAS, R.L. Jones Insurance Co. has bound with the Insurance Co. of North America a treasurer's bond in the amount of $50,000 effective 2/14/80 for an annual premium charge of $65.00. NOW THEREFORE BE IT RESOLVED, that the EDC hereby requests a certification of insurance from R. L. Jones Insurance Co. (Agency handling City of Livonia's Insurance program) indicating general liability and officer's and director's insurance is in force on behalf of the EDC. This certificate to be maintained as evidence of coverage. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: None The Chairman declared the resolution adopted. Mr. Hand added that the bonding of the Treasurer was conditioned on the amending of the bylaws to require that all checks must be signed by at least two members of the board. After reading the bylaws, the Board decided that an amendment was not necessary, per Article IV, Section 2, a simple resolution by the Board shall determine who shall sign the checks. On a motion by Mr. Helmkamp, supported by Mr. Hand, it was #80-96 RESOLVED, that all checks issued in the name of the corporation shall be signed by any two of the following three individuals: the Treasurer and two other board members who shall be appointed by the Chair. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: None The Chairman declared the resolution adopted. The Chairman appointed Mr. Hand, Mr. Hale and Treasurer, Mr. Helmkamp to sign checks. 72 The Executive Director submitted proposed new language for question #28 on the application. It is brief, but requires an applicant to address site plan work which will arise at the level of seeking Planning Commission approval of a Project Area or Project District Area. Further, it will enable the EDC to receive a more thoughtful outline of a project from an applicant. On a motion by Mr. Hand, supported by Mr. Jankowski, it was #80-97 RESOLVED, that question #28 on the application should be changed to read as follows: 28. Submit 12 copies of proposed site plan (schematic) and specify scale. The site plan should show location of land and proposed construction, parking, ingress and egress, area to be landscaped, significant topography, easements (public and private), general location of utilities, any existing buildings, and any other pertinent material which the EDC may deem appropriate. The general floor plan of the proposed building should show the size of the facility, its architectural character and specify exterior materials proposed for use on the building or buildings. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: None The Chairman declared the resolution adopted. Mr. Helmkamp gave a brief Treasurer's report. There is $5,825.42 in the EDC account. Four checks were written on February 14, 1980 in the amount of $460.83 to cover the file cabinet, binders, and petty cash items including $300.00 for reimbursing the Executive Director and Recording Secretary according to our resolution, for time spent at meetings. 0n a motion by Mr. Hale, supported by Mr. Hand, it was #80-98 RESOLVED, that the Treasurer's Report submitted by Mr. Helmkamp be accepted as submitted. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: None The Chairman declared the resolution adopted. 73 After brief discussion on the pros and cons of having legal counsel separate from our bond counsel, On a motion by Mr. Helmkamp, supported by Mrs. Kavanaugh, it was #80-99 RESOLVED, that the law firm of Stempien & Stempien be approved as legal counsel for the Economic Development Corporation of Livonia. A roll call vote was taken on the foregoing motion with the following result: AYES: Helmkamp, Jankowski, Kavanaugh, Ventura NAYS: Hale, Hand The Chairman declared the resolution adopted. Mr. Ventura added that a procedure should be established stipulating the necessary steps to be taken to call legal counsel in for a meeting, and who should have the authority to do so. A letter from Mr. Anthony Jablonski, Chairman of the Industrial Development Commission, has been received and filed. The Executive Director submitted a suggested stationery logo stylized by Ralph Bakewell, of the Planning Department. Mr. Ventura directed the Executive Director to procure a printer and have the stationery made up with the logo in color. Mr. Hand suggested that the Board review the fee schedule at the next meeting. On a motion by Mr. Hand, supported by Mrs. Kavanaugh, and unanimously adopted, it was #80-100 RESOLVED, that the Regular Meeting of the Economic Development Corporation of the City of Livonia be duly adjourned at 8:45 p.m., February 14, 1980. Respectfully submitted, Nts..Helen Kavanaugh, Actimg Secretary Economic Development Corporation /k