Loading...
HomeMy WebLinkAboutMinutes - 15th - March 27, 1980 signedMINUTES OF A SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION OF LIVONIA A Special Meeting of the Economic Development Corporation of Livonia was called to order by the Chairman, Peter Ventura, at approximately 7:10 p.m., March 27, 1980, in the Third Floor Conference Room, of the City Hall, 33000 Civic Center Drive, Livonia, Michigan. The Secretary called the roll. DIRECTORS PRESENT: Mr. Kenneth Hale Mr. Frank Hand *Mr. Angelo Plakas Mr. Alan C. Helmkamp Ms. Helen Kavanaugh Mr. Ronald Mardiros Mr. Peter Ventura DIRECTORS ABSENT: OTHERS PRESENT: Mr. Robert Jankowski Mr. Stanley Telman Mr. John Dozier, Levan Group Mr. Richard Wise, Levan Group Mr. Philip Barth, J. L. Mooney Co. Mr. Charles Tangora, Attorney Mr. Hugh Smith, Miller/Canfield Mr. Daniel J. Gilmartin, Executive Director Ms. Marie King, Recording Secretary 0n a motion by Mr. Hand, supported by Mrs. Kavanaugh, it was #80-101 RESOLVED, that the minutes of the meetings of February 14, 1980, and March 13, 1980 of the Economic Development Corporation of Livonia, be approved as submitted. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None The Chairman declared the resolution adopted. The Executive Director introduced Mr. Richard Wise, and Mr. John Dozier, representatives of the Levan Group. They are proposing to construct an office building next to their existing building, The Pfeister Corporation. The additional space would provide space for new tenants to Livonia. The addition will be approximately 11,000 square feet, and will cost about $800,000. *Mr. Plakas arrived at 7:18 p.m. Detroit Banlc and Trust has sent a letter offering their assistance in obtaining financing for this project. 76 On a motion by Mx. Hand, supported by Mr. glakas, it was #80-102 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, acquisition and operation of an office and warehouse facility, involving furnishings and fixtures therefore, to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by Levan Office Group, a Michigan co -partnership (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 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 Eight Hundred Thousand Dollars ($800,000), 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 77 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 an 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 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 and 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, Plakas, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None The Chairman declared the resolution adopted. The next item on the agenda was the consideration of an Inducement Resolution for Phil Barth. Mr. Barth and his legal counsel, Charles Tangora, were present to answer any questions the Board might have regarding this project. Mr. Barth is proposing to build a 13,500 square foot, one story office building on property 78 located on the Southwest corner of Schoolcraft and Newburgh. The proposed cost of the project is not to exceed $600,000. Mr. Barth stated that NBD said they would help him to obtain financing. On a motion by Mr. Hand, supported by Mr. Helmkamp, it was #80-103 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, acquisition and operation of an office building, involving furnishings and fixtures, machinery and equipment therefor, to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by Philip Barth, or a business entity to be formed by him (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 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. 79 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 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, 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 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 and 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, Plakas, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None The Chairman declared the resolution adopted. 80 On a motion by Mr. Hale, supported by Mr. Mardiros, it was #80-103 RESOLVED, that the Treasurer's Report be removed from the agenda until the next Regular Meeting of the Economic Development Corporation of Livonia. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Plakas, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None The Chairman declared the resolution adopted. 1/ At this time, there was some discussion regarding the fee schedule. Mr. Hand indicated that he thinks it seems to be working okay the way it is. Mr. Gilmartin suggested that the logical time to collect the balance of the fee would be at the time of the project plan approval. American Community Mutual Insurance Co. should have their project plan approved this Wednesday, April 2. Mr. Helmkamp suggested that at least one board member should be present from the EDC in case there are any questions. Mr. Mardiros said that he is usually present at all Council meetings as well as Mr. Gilmartin, and Mr. Ventura. It was suggested that the other members might want to rotate turns at these meetings. An application has been received from Ardmore Acres. There was some question as to their eligibility since their project has already been started. Mr. Dennis Neiman of Miller/Canfield is looking into this matter. On a motion by Mr. Hale, supported by Mr. Plakas, it was #80-104 RESOLVED, that the application from Ardmore Acres be tabled until the Regular Meeting of April 10, 1980. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Plakas, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None The next item on the agenda was a letter to Mr. Peter Ventura, Chairman of the Economic Development Corporation, from Mr. Anthony Jablonski, Chairman of the Industrial Development Commission. The Industrial Development Commission is sponsoring an Industrial Cocktail Party on June 25th at City Hall to thank all 81 the industrial residdnts for helping to make Livonia the prosperous town it is today. Livonia's industrial belt is about 85% developed. The Industrial Commission is trying to come up with a viable 'retention program. The cocktail party would be the beginning of such a program, at which time the announcement of a future Livonia Trade Show would be made. The Industrial Commission is looking for help in putting on the cocktail party. On a motion by Mr. Helmkamp, supported by Mr. Hale, it was 1i80-105 RESOLVED, that the Economic Development Corporation of Livonia endorse the idea of an industrial cocktail party in the amount of $1,000 and in the appointment of certain members to help in the planning of the party. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Plakas, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None The Chairman declared the resolution adopted. The Chairman appointed Mr. Helmkamp, Mr. Hand, and Mr. Gilmartin to assist in the planning of the Industrial Cocktail Party. one There was/additional item on the agenda. A letter was received from a Mr. Wyndham F. Gary regarding the conversion of the Western Racquet Club to a combination health, racquetball and tennis club. He would like the E.D.C. to approve $2,000,000 in bonds for this venture. Mr. Hugh Smith of Miller/Canfield advised the Board that he could not say if this conversion would qualify without seeing an application and having some facts. On a motion by Mr. Hand, supported by Mr. Hale, it was 1180-106 RESOLVED, that the Economic Development Corporation of Livonia give Mr. Wyndham F. Gary an application, and that the Board would be in favor of a renovation of the Western Racquet Club, provided this meets all the qualifications of the Act. A roll call vote was taken on the foregoing motion with the following result: AYES: Hale, Hand, Plakas, Helmkamp, Kavanaugh, Mardiros, Ventura NAYS: None 82 On a motion by Mr. Plakas, supported by Mr. Hale, and unanimously adopted, it was #80--107 RESOLVED, that the Special Meeting of the Economic Development Corporation of the City of Livonia be duly adjourned at 8:12 p.m., March 27, 1980. Respectfully submitted, M . Ron Mardos, secretary Economic Development Corporation /k