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HomeMy WebLinkAboutMinutes - 60th - February 9, 1984 signedTHE 60th 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 A. Ventura, at approximately 5:05 p.m., February 9, 1984, in the Council Chambers of the City Hall, 33000 Civic Center Drive, Livonia, Michigan. The Secretary called the roll: Directors Present: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Directors Absent: Others Present: Kenneth Hale Frank Hand Alan Helmkamp Ron Mardiros Robert E. McCann Angelo A. Plakas Peter A. Ventura Mr. Robert Jankowski Mr. Stanley Telman Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Jerome Grossman, President - General Fasteners Stephen Carter, V.P. - CNG Fuel Systems Roger George, CNG Fuel Systems Donald Summers, Willowood Investments Badalament, Rossman Co. Douglas Bonner, President - American Community James Ford, Counsel - American Community John Nagy, Planning Director Daniel J. Gilmartin, Executive Director Dennis Neiman, Miller, Canfield, Paddock & Stone Ms. Marie E. King, Recording Secretary On a motion by Mr. Helmkamp, supported by Mr. McCann, it was #84-1 RESOLVED, that the minutes of the December 8, 1983, Regular Meeting of the Economic Development Corporation be approved as submitted. A roll call vote was taken on the foregoing resolution with the following result: AYES: Hale, Hand, Helmkamp, Mardiros, McCann, Ventura NAYS: None ABSTENTIONS: Plakas The Chairman declared the resolution adopted. The first item on the Agenda was the consideration of the application and Inducement Resolution for the Grossman Company. The Executive Director explained that the Grossman Company, a Michigan Partnership, is proposing to acquire an existing building located at 11820 Globe Road. Currently, Mr. Jerome Grossman 382 is President of. General Fasteners Inc., and Mr. David Grossman is an officer of General Fasteners. General Fasteners has been in operation at 12000 Globe Road since 1974. The company warehouses industrial fasteners such as bolts, nuts, screws and washers. As explained by Mr. Grossman, the company must adjust to the "Just in time" concept of supplying materials to major contractors such as automobile companies wherein the vendor bears the brunt of warehousing. The proposed project will cost approximately $1,500,000. The company has discussed financing with the National Bank of Detroit and has received a verbal commitment. Mr. Neiman added that the Grossman Co. would be the obligor of the bonds and General Fastener would be the user of the building on a lease arrangement. Mr. Grossman explained that in order to be competitive and serve the needs of existing customers, they must have additional space. He currently employs 56 persons and expects that to increase by 20% with the new building. 0n a motion by Mr. Mardiros, supported by Mr. Hand, it was #84-2 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 and/or industrial facility to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit" for use by Grossman Company, 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 383 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 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 not to exceed One Million Five Hundred Thousand Dollars ($1,500,000), 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 contract 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 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 Incorporating Unit and the State of Michigan against any other liability and all costs relating to the 384 bonds of 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 resolution with the following result: AYES: Hale, Hand, Helmkamp, Mardiros, McCann, Plakas, Ventura NAYS: None The Chairman declared the resolution adopted. The next item on the Agenda was the consideration of the application and Inducement Resolution for CNG Fuel Systems, a limited Canadian partnership with home offices in Mississauga, Ontario, for the acquisition and installation of equipment to be located in a leased building at 33975 Autry Road. They propose to lease 8,080 sq. ft. from Paragon Properties. Mr. Carter, Vice President, explained that they would like to make natural gas a viable fuel for cars and trucks. They intend to employ 6 to 9 people immediately, and about 30 people 385 within three years. They would be a high technician engineering group involved in very sophisticated research. Dennis Neiman commented that everything is in order for this project. On a motion by Mr. Helmkamp, seconded by Mr. McCann, it was #84-3 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 of leasehold improvements to an industrial facility including the acquisition and installation of machinery and equipment therefor to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by CNG Fuel Systems, a limited partnership under the laws of Alberta, Canada (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 386 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 not to exceed Five Million Dollars ($5,000,000), 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 contract 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 the 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 financial assistance of the Project and issuance of the bonds shall contain such provisions and details as shall absolutely and completely make certin 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 the 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 387 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 resolution with the following result: AYES: Hale, Hand, Helmkamp, Mardiros, McCann, Plakas, Ventura NAYS: None The Chairman declared the resolution adopted. The third application and Inducement Resolution to be considered was Willowood Investments. They are proposing to construct four buildings on a two acre site on the north side of Schoolcraft, west of Merriman. It would be an expansion of an existing facility. The total project cost should be about $1,100,000. The Planning Director, John Nagy, explained that Willowood Investments is currently before the Planning Commission for a waiver use to have general offices in a Professional Service zoning. He said the Planning Commission does not have any problems with consenting to the waiver use on this project. Mr. Summers added that he has already had many inquiries regarding the leasing of the facility, so it is a marketable project. On a motion by Mr. McCann, seconded by Mr. Hale, it was #84-4 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 to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by Willowood Investments, a Michigan Partnership (the "Company"); and WHEREAS, said proposal appears to have merit as a 388 "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 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 389 bonds in an amount presently estimated not to exceed One Million One Hundred Thousand Dollars ($1,100,000), 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 contract 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 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 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 the 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 applilcation 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 390 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 resolution with the following result: AYES: Hale, Hand, Helmkamp, Mardiros, McCann, Plakas, Ventura NAYS: None The Chairman declared the resolution adopted. The last application and Inducement Resolution to be considered was that of American Community Mutual Insurance Company. The Executive Director reminded the Board of Directors that American Community was one of the Economic Development Corporation of Livonia's first completed projects. They are once again before the Board because they would like to double the size of their present facility. Mr. James Ford explained that American Community is at its limit as far as space right now. They have had very good growth in the past four years and they anticipate this growth to continue. Therefore, they need more room. The present American Community headquarters houses about 260 employees. The applicant states that its expansion program will result in the creation of an immediate 20 new jobs and that it foresees the need for another 100 new employees over a period of two years following construction. The total project cost is $3,500,000. Dennis Neiman commented that American Community is a very impressive organization. 0f their original $3.4 million EDC project amount in 1980, only $600,000 remains to be paid. Mr. Neiman also commented that Miller/Canfield is acting as counsel for American Community in a lawsuit; however, it is not a conflict of interest as far as the EDC would be concerned. On a motion by Mr. Plakas, seconded by Mr. Hand, it was #84-5 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 391 to the construction and operation of an addition to a commercial office facility to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by American Community Mutual Insurance 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 begin preparation of documents with respect to such revenue bonds in order to induce the Company to implment 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 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 not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000), for 392 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 contract 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 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 Incorporating Unit and the 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. 393 A roll call vote was taken on the foregoing resolution with the following result: AYES: Hale, Hand, Helmkamp, Mardiros, McCann, Plakas, Ventura NAYS: None The Chairman declared the resolution adopted. Mr. Helmkamp read the Treasurer's Report. Our total cash is $23,381.08. This amount includes monies in checking, savings, Certificates of Deposit and Petty Cash. We have a decrease in our fund balance, year-to-date of $476.85. On a motion by Mr. Hand, seconded by Mr. Plakas, and unanimously adopted, it was #84-6 RESOLVED, that the Treasurer's Report be accepted as submitted. The Chairman announced that the Executive Director, Mr. Daniel Gilmartin, is leaving the City to take another position elsewhere. He remarked that all of Dan's work has certainly been appreciated, and he will be missed. The Chairman also said that he has talked with the Mayor, and with Mr. John Nagy, the Planning Director, and Mr. Nagy has agreed to accept the position of Executive Director. On a motion by Mr. Plakas, seconded by Mr. Helmkamp, and unanimously adopted, it was #84-7 RESOLVED, that the Economic Development Corporation of Livonia, Michigan does hereby designate Mr. John Nagy as Executive Director of the Economic Development Corporation, subject to the approval of the Mayor. Mr. Hale said that he thinks the EDC should present Mr. Gilmartin with a plaque thanking him for his time and effort on behalf of the EDC and recognizing the contribution he has made in the development of this organization. The other directors were in total agreement. The Chairman directed Mr. Mardiros and Mr. McCann to order a plaque for Mr. Gilmartin. The Executive Director advised the Board of Directors that he has 394 received a letter from Corporate Communications Inc. requesting permission to make a presentation to the Board regarding the designing and producing of brochures and direct mail literature. The Chairman said that the Chamber has notified him that they are putting together a campaign and brochure to promote Livonia and would like some support from the EDC. He directed Mr. Hand and Mr. Mardiros to pursue the possibility of the EDC adding a section to their brochure to promote the advantages of EDC financing. On a motion by Mr. Plakas, supported by Mr. Mardiros, and unanimously adopted, it was #84-8 RESOLVED, that the Regular Meeting of the Economic Development Corporation held February 9, 1984, be adjourned at 6:05 p.m. Respectfully submitte on Mardiro,s,'Se retary RM/mk