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HomeMy WebLinkAboutMinutes - 45th - August 12, 1982 signedMINUTES 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 Chairman, Peter Ventura, at approximately 5:05 p.m., August 12, 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 Ms. Helen Kavanaugh Mr. Ron Mardiros Mr. Stanley Telman Mr. Peter Ventura Directors Absent; Mr. Robert Jankowski Mr. Angelo Plakas Others Present: Jeanne Paluzzi, President JGP Public Relations, Inc. Dennis Neiman, Miller, Canfield, Paddock & Stone Daniel J. Gilmartin, Executive Director Marie E. King, Recording Secretary Director Hale introduced Ms. Jeanne G. Paluzzi, President of JGP Public Relations, Inc. Ms. Paluzzi was invited here this evening to make a presentation on her recommendations to the EDC for its proposed seminar in the Fall. Ms. Paluzzi distributed a packet of material to each director. Beginning with page 1, she explained in great detail what the objectives of the seminar should be in relation to the EDC. For the seminar, the purpose is to create an awareness of, and the use of, the services of the EDC for commercial and industrial businesses who are planning to expand in a variety of ways and/or relocate, The aim of the EDC, in general, is to stabilize, and increase the city's tax base, by: retaining existing businesses and jobs, and by attracting new businesses and jobs. The major target audience would be the business leaders themselves. She suggested that the date be pushed back to October or November, rather than September as originally discussed, so that there would be more time for preparation and publicity. She checked with the Holidome and the Thursday evenings available in this time frame are: October 21 and 28 and November 4 and 11. She detailed what her suggested promotional program would entail as far as ads and news releases. 303 Mr. Mardiros asked what this would cost all together, including refreshments. Ms. Paluzzi estimated it would probably be around $10,000, but there are many variables. Costs could be reduced, if necessary, in several areas. Mr, Hand remarked that $10,000 would be around 50% of our budget balance. Mr. Hale asked Mr. Neiman if other EDC's have done things like this. Mr. Neiman said that maybe not quite as extensively as what is being discussed here, but something similar. Mr. Ventura asked Ms. Paluzzi how much time she would need if we decided to go through with this. She said she should have at least 6 weeks,preferably longer. Mr. Helmkamp asked what a realistic anticipated goal would be as far as a response to the seminar. Ms. Paluzzi said she would think from 50 to 150 people would be a fair guess. Mr. Helmkamp asked if we should consider a co-sponsor. Mr. Ventura thought that was a good suggestion and should definitely be considered by the committee, He thanked Ms, Paluzzi for coming to our meeting and said we would be getting back with her very soon. Mr. Ventura asked Mr. Hale to call a meeting of his committee within the next week to make some definite decisions; and if necessary, a special meeting of the Board of Directors will he called prior to September. Mr. Hand wanted to explain his previous remark. "The purpose of this EDC is not to accumulate money; however, this EDC does have to exist and function for many years, the life of projects we have already issued. I am personally in favor of using that money to inform and educate business people as to the function of the EDC, and how they might utilize it. I don't know exactly what form that should take." 304 Mr. Mardiros requested that Mr. Gilmartin find some other brochures from other EDC's so we might get an idea of what we would like. Mr. Gilmartin said he would do that. On a motion by Mr. Hale, supported by Mrs. Kavanaugh, it was #82-274 RESOLVED, that the minutes of the Regular Meeting of July 8, 1982, 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, Kavanaugh, Mardiros, Ventura NAYS: None ABSTENTIONS: Hand, Helmkamp, Telman The Chairman declared the resolution adopted. Mr. James Taylor, an attorney representing Robert Gillow and Action Oldsmobile, was introduced to the Board of Directors. He explained that Mr. and Mrs. Gillow were out-of-town and unable to be present tonight; therefore, he is representing them. He distributed a copy of Exhibit B, a site plan, for the proposed expansion. Gillow Properties proposes to renovate and add around 10,000 sq. ft. to the existing building (Action Oldsmobile, 33850 Plymouth Road). The applicant has discussed bond issuance with Manufacturers Bank and Trust Co. Manufacturers currently reviewing the financial National Bank, National Bank of Detroit, and Detroit National Bank and Detroit Bank and Trust Co. are information of the applicant and Action Oldsmobile, Inc. and have expressed an interest in the potential issuance of an irrevocable letter of credit to allow bonds for the project to be sold at a private sale or by public offering. However, the applicant has not obtained a specific commitment to purchase the bonds or issue the letter of credit as yet. It is estimated that renovation and expansion would commence by September 15, 1982 and would be completed by May 1, 1983. Ten new jobs would be created the first year, and fifteen new jobs the second year. The total anticipated project cost is $800,000. 305 On a motion by Mr. Telman, Supported by Mr. Mardiros, it was 1#82-275 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 renovation, expansion and operation of an existing commercial facility including machinery, equipment and the site therefor to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by Gillow Properties, a Michigan copartnership (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 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 legislative body by conveying to the foregoing body a certified copy of this resolution, and (b) notify the Chief Executive Officer of the Incor- porating 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 not to exceed One Million Dollars ($1,000,000), 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, installment sales contracts, or loan agreement 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 306 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 financial assistance 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 Incorpor- ating Unit and the State of Michigan aaain^t 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 the 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 results: AYES: Hale, Hand, Helmkamp, Kavanaugh, Mardiros, Telman, Ventura NAYS: None The Chairman declared the resolution adopted. Mrs. Kavanaugh read the Treasurer's Report. There is currently $23,053.01 in the various accounts. 0f that amount, $21,612.76 is invested in C.D. Accounts, $931.60 is in the Savings Account, and $408.65 is in the Checking Account. 307 0n a motion by Mr, Helmkamp, supported by Mr. Hale, it was #82-276 RESOLVED, that the Treasurer's Report be accepted as presented by Mrs. Kavanaugh. A roll call vote was taken on the foregoing motion with the following results: AYES: Hale, Hand, Helmkamp, Kavanaugh, Mardiros, Telman, Ventura NAYS: None The Chairman declared the resolution adopted, In response to the Board request that Mr. Gilmartin consider the request by the Wayne County EDC to assist in the ACAP program and make a recommendation to the Board, Mr. Gilmartin made the following comments: "We do not know enough about the ACAP proposal to use the Board's good name in recommending contact with the County by approximately 150 Livonia businesses. It would be difficult for us in Livonia to give the impression that we are recommending an outside agency that could be of help. The County staff of 11 probably could make the personal contacts wherein the Livonia EDC staff would not have that ability. I would be unwilling to introduce Livonia businesses to so- called economic help within the county when I was not sure that help would be forthcoming. The ACAP program has been discussed well over a year, and I have not seen it go beyond the presentation stage; and I feel that many businesses today are not complimentary of government bureaucracy. At the present time, for us to recommend that they get involved in another bureaucratic program which we do not know everything about, we may be exposing them to a government letdown. "If directed, I will contact atleast seven Livonia companies on the list supplied by the county and request that each of these seven Livonia businesses evaluate the ability of the ACAP program to be an aid in their business. Then the Board would have a business input into what currently is simply a glossy, quasi government - sponsored public relations program." 308 The Chairman asked Mr. Gilmartin to put this recommendation in written form and send a copy to each Board Member. 0n a motion by Mr. Hand, supported by Mr. Telman, and unanimously adopted it was #82-277 RESOLVED, that the Regular Meeting of August 12, 1982, of the Economic Development Corporation of Livonia be adjourned at 5:50 p.m. Respectfully submitted, 1A... r‘ f.A,.nn, Frank Hand, FH/mek ecretary