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HomeMy WebLinkAboutMinutes - 7th - October 3, 1979 signed20 MINUTES OF A SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION OF LIVONIA The Special Meeting of the Board of Directors of the Economic Development Corporation of the City of Livonia, Michigan, was called to order by Mr. Hand, Chairman, at approximately 7:40 p.m., E.D.T., Wednesday, October 3, 1979, at the Livonia City Hall, 33000 Civic Center Drive, Livonia, Michigan. Roll was called by the Secretary with the following result: Directors Present: Directors Absent: Others Present: Mr. Frank Hand Mr. Alan C. Helmkamp Mrs. Helen Kavanaugh Mr. Peter Ventura Mr. Addison W. Bacon Mr. Ron Mardiros* Mr. Robert Jankowski Mr. William P. Scruggs Mr. Stanley Telman Mr. M. Kellman and Mr. Thomas A. Zimmer, Bond Counselors Mr. Banner Mr. Temple Mr. Lindhout On a motion by Mrs. Kavanaugh, supported by Mr. Helmkamp, and unanimously adopted it was #79-30 RESOLVED, that the minutes of the Regular Meeting of the Economic Development Corporation of Livonia, held on September 13, 1979, are hereby approved. 0n a motion by Mr. Ventura, supported by Mr. Helmkamp, it was #79-31 WHEREAS, there has been presented to the Board of Directors of The Economic Development Corporation of the City of Livonia (the "Corpora- tion") a proposal relating to the constructing of an office building (the "Project") to be located in the City of Livonia (the "Municipality") for lease to American Community Mutual Insurance Co. (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 Project, it is likely that the Project will require issuance of limited obligation revenue bonds by the Corporation; and 21 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; NOW, THEREFORE, BE IT RESOLVED THAT: 1. Pursuant to Section 8 (1) of the Act, the Board of Directors of the Corporation hereby determines that certain land area described in Exhibit A hereto attached is the land area which will be acquired in the implementation of the Project and hereby designates to the (a) planning commission of the Municipality, and (b) the governing body of the Municipality, said land area described in Exhibit A as the "Project Area," as defined in Section 8 (1) of the Act. 2. Pursuant to Section 12 (1) of the Act, the Board of Directors of the Corporation hereby recommends to the governing body of the Munici- pality that certain land area described in Exhibit B as may be amended from time to time in minor respects hereto attached constitute the Project District Area, i.e. that portion of the territory surrounding, the Project Area which will be significantly affected by the Project. 3. Upon receipt of an application submitted on the Corporation's Approved Project Application Form, with Application Fee, the Secretary of the Corporation be and is hereby directed to communicate the Project Area and the recommended Project District Area boundaries to the governing body of the Municipality by conveying a certified copy of this resolution. 4. In order to induce the location of the Project in the proposed Project Area and, subject to the hereinafter specified provisions, the Corporation will issue its limited obligation economic development revenue bonds in an amount presently estimated not to exceed (Three Million Five Hundred Thousand Dollars ($3,500,000) (the "Bonds"), for the purpose of paying all or part of the cost of the Project and the costs incidental to the issuance of the Bonds. The 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 the Board of Directors of the Corporation and provided, further, that all other neces- sary action is taken in conformance with the Act and provided, further, that the Bonds can be sold. 5. The Corporation intends to commence preparation of a Project Plan and requests that the chief executive officer of the Municipality, with the advice and consent of the governing body of the Municipality, appoint two additional directors of the Corporation who, in accordance with Section 4 (2) of Act 338, shall serve only in respect to the Project, shall be representative of neighborhood residents and business interests likely to be affected by the Project, and shall cease to serve when the Project is either completed in accordance with the Project Plan or abandoned. 6. 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 or the Municipality, or its taxpayers or citizens, ever be required to pay the principal of and interest on, or any other costs relating to, the Bonds from tax revenues 22 or other general funds of the Municipality or from any other funds not related to the Project, and shall, in addition, contain provisions fully protecting the Corporation and the Municipality (and the officials thereof with respect to personal liability), against any other liability or costs relating to the Bonds or the Project, and accordingly by adoption of this resolution, the Corporation assumes no pecuniary obligation or liability to the Company for any loss or damage that may result to the Company from the adoption of this resolution or any non -issuance of the Bonds for any reason, 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. 7. The firm of Dickerson, Wright, McKean, Cudlip and Moon is hereby designated and retained by the Corporation as bond counsel with respect to the Bonds to be issued in connection with the Project, and is authorized and directed to prepare and submit to all appropriate parties all proceed- ings, agreements and other documents as shall be necessary or appropriate in connection with the issuance of such bonds and 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 President or the Secretary, and each of them is authorized to execute such powers of attorney and other documents as may be appropriate in connection with the foregoing, and the legal fees of Dickerson, Wright, McKean, Cudlip and Moon 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. *Mr. Mardiros arrived during discussion of the motion at approximately 8:00 p.m. A roll call vote was taken on the foregoing resolution with the following result: AYES: Ventura, Helmkamp, Mardiros, Kavanaugh, Hand NAYS: Bacon On a motion by Mr. Ventura, supported by Mr. Helmkamp, and unanimously adopted, it was ##79-32 RESOLVED, that this special meeting be adjourned at approximately 8:40 p.m. October 3, 1979. n Francis M. Hand, Chairman ECONOMIC DEVELOPMENT CORPORATION