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HomeMy WebLinkAboutMinutes - 41st - January 14, 1982 signedMINUTES OF A SPJCIAL 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 5:03 p.m., January 14, 1982, in the Council Chambers of the City Hall, 33000 Civic Center Drive, Livonia, Michigan. The Secretary called the roll: Directors Present: Mr. Kenneth Hale Mr. Frank Hand Mr. Alan Helmkamp Mr. Robert Jankowski Ms. Helen Kavanaugh Mr. Ron Mardiros *Mr. Angelo Plakas Mr. Peter Ventura Directors Absent: Mr. Stanley Telman Others Present: Mr. Rodman Myers, Attorney for Strand Co. Mr. Dennis Neiman, Miller/Canfield Mr. Daniel Gilmartin, Executive Director Ms. Marie King, Recording Secretary On a motion by Mr. Mardiros, supperted by Mr. Hale, it was #182-256 RESOLVED, that the minutes of December 10, 1981, of the Special Meeting of the Economic Development Corporation of Livonia be approved as submitted. A roll call vote was taken on the foregoing motion with the following results: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Mardiros, Ventura NAYS: None The Chairman declared the resolution adopted. *Mr. Plakas arrived at 5:07 p.m. The Chairman introduced Mr. Rodman Myers. He is an attorney representing the Charles A. Strand Co, Project. Mr. Myers explained that when the Strand Co. received their inducement resolution from the EDC (January 15, 1981), it was at a time when they were thinking of purchasing three plus acres and constructing a building of around 25,000 square feet. They came back to the EDC in March of 1981 and expanded their project site from 3.8 acres to 7.6 acres. Now, after examining their program further, they would like to construct a 45,000 square 281 feet building rather than.25,000 square feet. Therefore, they seek an amount not to exceed $7,000,000 in bonds rather than $2,000,000 as previously approved by the EDC. Mr. Ventura asked when they will be starting construction. Mr. Jankowski said they are looking to break ground in the latter part of 1982, or early part of 1983. Mr. Hand asked if there would be an increase in their fee now that they are raising the amount of the bonds. Mr. Gilmartin said the company should be made aware that they will now owe an additional $5,000.00 in fees. Our application reads that the fee is 1/10 of 1% of the project cost. Mr. Mardiros asked if they did not use all of the $7,000,000, would the EDC have to refund part of the $5,000? Mr. Helmkamp replied that one of the EDC's concerns was to encourage the accurate estimate of what the project would cost. We do not want companies to underestimate the cost and then come back for amendments. Mr. Myers requested the Board go on to the next item on the agenda while he tried to reach Mr. Hedke by phone and see how accurate the $7,000,000 figure is. The next item on the agenda was discussion of the EDC policy regarding withdrawing inducement resolutions when a project fails to move forward after a specified period of time. The Executive Director explained that all applicants who we have not heard from for a while were sent letters regarding their intentions. Two (2) letters were received and three (3) verbal communications were transmitted to the Executive Director. No information was forthcoming from the five other applicants who were sent letters: DeMarco Investment Co., Levan Group, Phil Barth, Drury Inns, Inc., J. D. Dinan Co. 282 Mr. Helmkamp asked if there were still some outstanding fees from these applicants? Mr. Gilmartin replied yes,there were fees due at the time the inducement resolution was passed. Mr. Hand said that once we pass the inducement resolution, we are entitled to the balance due. The longer these petitions lay dormant, the less chance of our ever seeing any action. Mr. Hale said how does it hurt us if an applicant takes a long time to complete his project? As long as he pays his fee, why do we care how long it takes. Dennis Neiman explained that once an applicant's building is completed and placed in service, he only has one year in which to complete the EDC proceedings. If he does not complete it within that time, he must seek another method of financing. Mr, Plakas said he could see two problems the EDC is faced with - 1) trying to collect the money; and 2) stale resolutions. He suggested the applicant should be told to bring in his check prior to the inducement resolution or that night. On a motion by Mr. Hale, supported by Mrs. Kavanaugh, it was #82-257 RESOLVED, that upon adoption of an inducement resolution, the balance of the fee must be paid prior to the adoption of the minutes of that meeting, or the resolution is rescinded. A roll call vote was taken on the 'foregoing motion with the following results: AYES: Hale, Hand, Kavanaugh, Jankowski, Mardiros, Ventura NAYS: Helmkamp, Plakas The Chairman declared the resolution adopted,. The Executive Director asked the Chairman if this meant that the staff should not forward any material on to the City Council until the minutes are approved. The Chairman said that until payment is made, no action should be taken. 283 At this time, Mr. Myers returned to the room. He contacted Mr. Hedke, Vice President of Strand Co., and was advised to have the resolution of inducement be in an amount not to exceed $5,000,000, not $7,000,000 as stated earlier. On a motion by Mr. Mardiros, supported by Mrs, Kavanaugh, it was 1182-258 WHEREAS, there exists in the City of Livonia (the Municipality) the need for certain programs to alleviate and prevent conditions of unemployment and to assist and retain local industries and commercial enterprises in order to strengthen and revitalize the economy of the Municipality and provide needed services and facilities to the Muni- cipality and the residents thereof; and WHEREAS, as one of its programs to alleviate the aforesaid conditions and accomplish said purposes, the Economic Development Corporation of the City of Livonia (the "Corporation") in conformity with Act 338, Michigan Public Acts, 1974, as amended (."Act 338"), has initiated proceedings with respect to the potential issuance of its limited obligation economic development revenue bonds to assist in the financing of the Project captioned in the title of this resolution; 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, the Corporation on January 15, 1981 adopted a Resolution of Inducement for the Project in an amount of $2,000,000 (the "Resolution"); and WHEREAS, the Resolution was amended by the Corporation on March 17, 1981 to amend the Project area for said Project; and WHEREAS, the Corporation has now been advised by Chas. A. Strand Co. (the "Applicant") that because of rising building costs, and enlargement of the project, it would be advisable to increase the principal amount of the bonds which the Corporation proposes to issue under Act 338 to an amount not exceeding $5,000,000; NOW, THEREFORE, BE IT RESOLVED THAT: 1, Paragraph 3 of the Resolution,. as amended is hereby amended by deleting therefrom the phrase "Two Million Dollars ($2,000,000)" and substituting therefor the phrase "Five Million Dollars ($5,000,000)". 2. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are rescinded. 284 A roll call vote was taken on the foregoing motion with the following results: AYES: Hale, Hand, Helmkamp, Kavanaugh, Mardiros, Plakas, Ventura NAYS: None ABSTENTIONS: Jankowski The Chairman declared the resolution adopted. On a motion by Mr. Hand, supported by Mr. Hale, it was #82-259 RESOLVED, that those applicants who have paid their fees but are unable to proceed with their project at this time, should be advised that they can be put on an inactive status until such time that they are ready to move forward. A roll call vote was taken on the foregoing motion with the following results: AYES: Hale, Hand, Helmkamp, Kavanaugh, Mardiros, Plakas, Jankowski, Ventura NAYS: None The Chairman declared the resolution adopted, The next item on the agenda was a discussion regarding changing the times of the regular meetings from 7:00 p.m. to 5:00 p.m. Mr. Hand did not wish to see the time changed because he would not have enough time to review the materials in advance of the meeting. 0n a motion by Mr. Hale, supported by Mr. Helmkamp, it was #i82-260 RESOLVED, that the starting time for the regular meetings of the Economic Development Corporation of Livonia be changed from 7:00 p.m. to 5:00 p.m. A roll call voted was taken on the foregoing motion with the following results: AYES: Hale, Helmkamp, Kavanaugh, Jankowski, Mardiros, Plakas, Ventura NAYS: Hand The Chairman declared the resolution adopted, *Mr. Mardiros left the meeting at 5:52 p.m.. Mrs. Kavanaugh gave the Treasurer's Report. There is currently $20,742.00 in the various accounts. $19,726.53 is invested in C.D. Accounts; $805.49 is in the Savings Account;; and $209.98 is in the Checking Account. 285 On a motion by Mrs. Kavanaugh, supported by Mr. Hand, it was #82-261 RESOLVED, that the Treasurer's Report be accepted as submitted. A roll call vote was taken on the foregoing motion with the following results: AYES: Hale, Hand, Helmkamp, Jankowski, Kavanaugh, Plakas Ventura NAYS; None The Chairman declared the resolution adopted.. On a motion by Mr. Hale, supported by Mr. Hand, and unanimously adopted, it was #82-262 RESOLVED, that the Special Meeting of January 14, 1982, of the Economic Development Corporation of Livonia be adjourned at 6:02 p.m. Respectfully submitted, Frank Hand, Secretary FH/mek