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HomeMy WebLinkAboutMinutes - 54th - June 9, 1983 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 Vice Chairman, Kenneth Hale, at approximately 5:03 p.m., June 9, 1983, in the Council Chambers of the City Hall, 33000 Civic Center Drive, Livonia, Michigan. The Acting Secretary, Robert Jankowski, called the roll: Directors Present: Mr. Kenneth Hale Mr. Frank Hand Mr. Alan Helmkamp Mr. Robert Jankowski Mr. Robert McCann* Mr. Stanley Te3man Mr. Angelo Plakas** Mr. Larry Raschella (MGIII) Mr. Paul Riggio (MGIII) Directors Absent: Mr. Ron Mardiros Mr. Peter Ventura Others Present: Mr. Donald Kelm, Miller/Canfield Mr. Daniel J. Gilmartin, Executive Director Ms. Marie E. King, Recording Secretary On a motion by Mr. Hand, seconded by Mr. Jankowski, and unanimously adopted, it was #83-319 RESOLVED, that the minutes of the May 12, 1983 Regular Meeting of the Economic Development Corporation be approved as submitted. The Executive Director reminded the Board of Directors that this proposal was before the EDC on November 18, 1982, for a Resolution of Inducement; and again on January 13, 1983, for approval of the Project Plan. The Proposal calls for the acquisition of 13 industrial buildings in Livonia by MG -III Associates. The amended Project Plan before the Board tonight has not changed in essence. The changes are technical, and are necessary because of a recent change in the IRS regulations. The new language states: "In addition to improvements of a cost estimated to be 8800,000 (completion of buildings), the project will also involve the acquisition by the applicant of 13 light manufacturing and warehouse buildings at a cost of 87,560,000. The applicant will pay $250,000 at the time of delivery of the bonds, and the balance of the purchase price will be financed by the bonds described in Section (h) thereof. The cost of improvements will be financed with bond proceeds." This can be noted in Exhibit C. *Mr. McCann was present but not voting. 350 Also included for the EDC directors, is Schedule A, the noteworthy change being that the Obligor will pay interest only in the amount of $986,850 per year payable in equal monthly installments . . . . The previous project plan established the amount at $1,000,000. Donald Keim of Miller/Canfield reiterated much of what the Executive Director said and asked if there were any questions from the Board. Mr. Hand wanted to know what commitment has been made regarding the leasing of the buildings currently under construction and what happens if the purchaser goes in default. Mr. Keim replied that if the purchaser were to go into default, in effect, the buildings would go back to the present owner (Paragon Properties). The limited partners are not obligated or personally liable, nor is the EDC liable in any way. ** Mr. Plakas arrived at 5:12 p.m. Mr. Hand said the EDC was involved in a real estate sale and he wasn't sure that that was the purpose of this body. Mr. Keim explained that the applicant must serve a public purpose in order to be eligible for EDC funding. Miller/Canfield determined that MG -III would be serving a public purpose because the present owners would not be able to finish the buildings and create any more jobs without this EDC assistance. Therefore the public purpose would be served by MG -III in bringing business and jobs into the City. On a motion by Mr. HeIMkamp, seconded by Mr Jankowski, it was #83-320 WHEREAS, there exists in the City of Livonia, County of Wayne, Michigan (the "CITY") the need for certain programs to alleviate and prevent conditions of unemployment, to revitalize the City's economy, to assist industrial and commercial enterprises, and to encourage the locatim , expansion or retention of industrial and commercial enterprises, to provide needed services and facilities to the City and its residents and to retain employment opportunities in the City; and WHEREAS, a program to alleviate the aforesaid conditions has been initiated by the Corporation; and 351 WHEREAS, the Corporation in conformity with Act No. 338, Public Acts of Michigan, 1974, as amended ("Act No. 338"), and the Internal Revenue Code of 1954, as amended (the "Code"), prepared a project plan (the "Project Plan"), providing all information and requirements necessary for a project to be undertaken for the benefit of MGIII Associates Limited Partnership (the "Project"), including the issuance of revenue bonds by the Corporation (the "Bonds"); and WHEREAS, the Corporation has been advised by MGIII Associates Limited Partnership, that certain terms in the Project Plan, previously approved by the Corporation on January 13, 1983, have been revised, included but not limited to the amount of the Bonds has been decreased from s8,000,000 to $7,310,000 and the rate of interest on the Bonds has been increased; and these changes have been incorporated into the project plan (the "Amended Project Plan"); NOW, THEREFORE, BE IT RESOLVED: 1. The Amended Project Plan, reflecting the above -referenced revisions, as attached hereto and made a part hereof, meets the requirements set forth in Section 8(4) of Act No. 338, and is hereby adopted and approved. 2. The persons who will be active in the management of the project for not less than one year after approval of the Amended Project Plan have sufficient ability and experience to manage the plan properly. 3. The proposed methods of financing the Project as outlined in the Amended Project Plan are feasible and this Corporation has the ability to arrange, or cause to be arranged, the financing. 4. The Amended Project Plan contains a statement by a person described in Section 8(4)(j) of Act No. 338 indicating the payment to all persons performing work on the construction project of the prevailing wage and fringe benefit rates for the same or similar work in the locality in which the work is performed and the Corporation hereby conclusively relies thereupon. 5. The Project as submitted is reasonable and necessary to carry out the purposes of the Act No. 338. 6. Based upon the information submitted and obtained, the Amended Project Plan as submitted and the Project to which it relates serves to alleviate and prevent conditions of unemployment and strengthen and revitalize the City's economy and, therefore, constitutes a vital and necessary public purpose. 7. The Secretary of this Board (the "Secretary") be and is hereby authorized to convey this resolution and the Amended Project Plan to the legislative body of the City for its review. 8. The Secretary is further directed to certify to the legislative body of the City that upon advice of the Project's applicant and upon this Board's investigation the Project will not have the effect of transferring employment of more than 20 full-time persons from another Michigan municipality to the City. 352 9. 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: Hand, Helmkamp, Jankowski, Raschella, Riggio, Hale NAYS: Plakas ABSTENTIONS: Te7man The Chairman declared the resolution adopted. Alan Helmkamp gave the Treasurer's Report. The Total Current Fund Balance is $26,171.42. Of that amount, 24,500.00 is invested in Certificates of Deposit, $2,097.66 is in a savings account, and $18.32 is in the checking account. On a motion by Angelo Plakas, seconded by Frank Hand, and unanimously adopted, it was #83-321 RESOLVED, that the Treasurer's Report be accepted as submitted. Councilman Robert Bishop came into the meeting. At this time, the Chairman asked if there was any discussion regarding the recent Business Appreciation Day held at Roma's of Livonia. The general feeling of the Board was that it was not very well attended. Over 4,000 invitations were sent out, and it is estimated that only about 500 people attended. Each of the Directors gave his opinion as to why this event was not a success and yet the Salute to Industry held two years ago was a great success. Mr. Telman felt that being held at City Hall was the key, A City sponsored event seems to have more appeal to the businessman. The Business Appreciation Day held at Roma's was just another cocktail party. Mr. Hale suggested a trade show would be more beneficial. Mr. McCann suggested Eddie Edgar Arena would be available for a Trade Show during the summer months. Mr. Bishop thought an outdoor event might be nice for a change A large tent could be rented in case of inclement weather. However, a committee should be formed right now to plan for such an event next year. It will take a lot of planning. 353 Mr. Raschella said he and his wife have had a lot of experience with trade shows. They require a very large facility. Specific rules for exhibitors must be made and the exhibitors must be notified way in advance. Several committees should be formed. A fee for renting exhibit space should be set. He would be willing to bring in more information if anyone is interested. Mr. Plakas said the fee should not be so high that small businesses would be excluded. Mr. Hand said that this community could afford to put on something like this. It does not have to be self-supporting. The City would make many gains from an event of this nature. On a motion by Mr. Telman, seconded by Mr. Plakas, and unanimously adopted, it was #83-322 RESOLVED, that the Regular Meeting of the Economic Development Corporation of the City of Livonia, held June 9, 1983, be adjourned at 5:50 p.m. Respectfully submitted, /Ron Mardiros, Secretary RM/mk