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HomeMy WebLinkAboutMinutes - 49th - December 9, 1982 signed1i'1 MINUTES 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 5:10 p.m., December 9, 1932, in the Council Chambers of the City Hall, 33000 Civic Center Drive, Livonia, Michigan. The Secretary called the roll: Directors Present: Mr. Frank Hand Mr. Alan Helmkamp Mr. Robert Jankowski Ms. Helen Kavanaugh Mr. Ron Mardiros Mr. Angelo Plakas (arrived at 5:17) Mr. Peter Ventura Mr. Stanley Telman Directors Absent: Mr. Kenneth Hale Others Present: Mr. Christopher Ziomek, Risko/Ziomek Funeral Home Mr. Fernon-Feenstra, Livonia City Council Mr. Daniel J. Gilmartin, Executive Director Ms. Marie E. King, Recording Secretary 0n a motion by Mr. Helmkamp, supported by Mrs. Kavanaugh, it was 1182-293 RESOLVED, that the minutes of November 18, 1982, of the Regular 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: Hand, Helmkamp, Jankowski, Kavanaugh, Mardiros, Ventura NAYS: None ABSTENTIONS: Telman The Chairman declared the resolution adopted. Alan Helmkamp gave the Treasurer's Report. There is currently $29,642.30 in the various accounts. Of that amount, $22,211.17 is invested in C.D. Accounts; $644.98 is in the Savings Account; and $6,786.15 is in the Checking Account. On a motion by Frank Hand, supported by Bob Jankowski, it was 1i82-294 RESOLVED, that the Treasurer's Report be accepted as submitted by Mr. Helmkamp. A roll call vote was taken on the foregoing motion with the following results: 324 AYES: Hand, Helmkamp, Jankowski, Kavanaugh, Mardiros, Ventura, Telman NAYS: None Mr. Gilmartin advised the Directors that copies of the Industrial Development Commission's Annual Report was enclosed in their packets for their information. In addition, a copy of the EDC's tentative annual report was enclosed for their review. The report has not been circulated yet. Mr. Ventura suggested that the Board of Directors review the annual reports and reserve any further action until the next regular meeting in January so that they will have time to study the report. Mr. Christopher Ziomek was present to represent the Rislco-Ziomek Funeral Home, which has applied to the EDC for an Inducement Resolution this evening He explained that the Risko-Ziomek Funeral Home, Inc. has proposed the construction of an 8,500 sq. ft. barrier free funeral home at the northwest corner of Wayne and Joy Roads in Section 33. They presently operate a home in Detroit; however, many of the families they have dealt with over the years are moving out to the suburbs. They believe there is a need for them in Livonia. The Detroit unit would continue to operate. The Livonia facility would hire all new people. It would be advantageous to their clientele and the company itself to have a facility in Livonia. *Mr. Plalcas arrived at 5:17 p.m. The applicant has negotiated with the owners of the property and has made an offer to purchase contingent on the EDC financing and the rezoning of the property to PS from RUF. Mr. Hand asked Mr. Ziomek how long they have on their offer to purchase the property. Mr. Ziomek said they have until the 15th of next month. Mr. Hand and Mr. Ventura both thought it would be impossible to accomplish the rezoning in that time period. However, Mr. Ziomek felt confident that they would not have any trouble 325 with the rezoning and that the owners of the property would give them an extension. Mr. Hand questioned whether the inducement resolution should be for $400,000 as indicated on the application, or $750,000 as stated on the prepared Inducement Resolution. Mr. Ziomek said they only wanted the Inducement Resolution to read $400,000. On a motion by Mr. Mardiros, supported by Mrs. Kavanaugh, it was #82-295 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 new funeral home, with furnishings and equipment, and the land therefor to be located in the City of Livonia, County of Wayne, Michigan (the "Incorporating Unit") for use by Risko-Ziomek, Inc., 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 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. 326 3. In order to more fully induce the location of the Project in the proposed project area and subject to the hereinfafter special provisions, the corporation will issue its economic development limited obligation revenue bonds in an amount presently estimated not to exceed Four Hundred Thousand Dollars ($400,000), for the purpose of paying all or part of the costs 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 Incorpora- ting 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. A roll call vote was taken on the foregoing motion with the following results: AYES: Hand, Helmkamp, Jankowski, Kavanaugh, Mardiros, Plalcas, Telman, Ventura NAYS: None The Chairman declared the resolution adopted. 327 At this time, Councilman Fernon Feenstra was introduced to the Board of Directors. He explained how about two weeks ago, after a meeting between him and the Mayor, a committee was formed to help a company who had been a victim of a cruel hoax -- Hygrades. He said they thought that the company and its employees could benefit from some good publicity. There are approximately 20 people on this committee, including department heads from the various City Departments, the Superintendent of Schools, and the Chamber of Commerce. The basic premise was that the promotion would not cost Hygrades anything. what Mr. Feenstra was seeking this evening was a commit- ment from the Economic Development Corporation to donate $2,000 for this promotion. He had attempted to talk with Mr. Ventura, the Chairman, but he was out of town. He then talked with Mr. Hale, the Vice Chairman, who said he thought this was a worthy project but suggested Mr. Feenstra talk to Mr. Ventura. Mr. Feenstra stated that he believes this project would fall within the charter of the EDC because it would be a business retention program. The Chairman said he believed that the EDC could not make any decision as to the use of the EDC funds without a resolution being passed by the board approving such action. Mr. Mardiros said that during this period when immediate action was required, there was no resolution by City Council, no proclamation by the Mayor, and there was a lot of discussion as to whether this was a worthy project. It was decided that it was a worthy project and everyone just volunteered their time to help. He said he knows of no project or anything that has received the favorable response of the people as this project. And this is not only in Livonia, but throughout the state, and throughout the country. This project portrays Livonia as a City concerned about its business residents. If other companies hear about this in other cities or states, they just might think about coming to Livonia. Mr. Mardiros continued, that he thinks what we are doing speaks well of Livonia. 328 Mr. Helmkamp said he thought this was a great project, but he was concerned about this setting a precedent for the future. Mr. Feenstra said this was supposed to be more of a volunteer thing. The EDC is looking for ways to attract business, and this is a good way. The EDC has not been committed, however; and if they turn this project down, there are other ways to get money. "We can knock on doors." Mr. Helmkamp said he would like bond counsel's opinion before passing any definite resolution, as to whether this is a permissible use of EDC funds. Mr. Plakas said he shares the Chairman's sentiments, but this a good viable idea. Its enthusiasm has just spread over. This particular body is one of the few creatures of government that seems to share positive aspects of business. The kinds of projects that we undertake are good. He went on to say that he thinks what has happened to Hygrades is a unique situation. His two main concerns were: (1) The EDC does have a substantial amount of money to work with, keeping in mind that this is for the EDC to operate over the years; he would hope that the burden of supporting this project would be passed around. (2) He would like to have Mr. Neiman's opinion as to whether or not this is permissible under the EDC bylaws. The way he reads them, it is okay. He would recommend that the EDC participate on some financial basis, maybe not to the magnitude of $2,000, but something to show that the EDC would stand behind its community's industry. The Chairman handed the gavel over to Mr. Jankowski. On a motion by Mr. Ventura, supported by Mr. Hand, it was RESOLVED, that this item be tabled until the January meeting at which time we will have benefit of counsel and all the bills for the Hygrade project will have been turned in. A roll call vote was taken on the foregoing motion with the following results: AYES: Hand, Ventura NAYS: Helmkamp, Jankowski, Kavanaugh, Mardiros, Plakas, Telman The motion was denied. 329 Mr. Jankowski returned the gavel to Mr. Ventura. On a motion by Mr. Helmkamp, supported by Mr. Mardiros, it was #82-296 RESOLVED, that in the event that expenditure of funds from this EDC is permissible under the applicable statutes and EDC Charter, the Livonia EDC resolves to assist the "Hygrades' Week" activities by its financial commitment in an amount to be determined, upon the presentment and consideration of bills for expenses associated by the "Hygrades' Week" activities. A roll call vote was taken on the foregoing motion with the following results: AYES: Hand, Helmkamp, Jankowski, Kavanaugh, Mardiros, Plakas, Telman, Ventura NAYS: None The Chairman declared the resolution adopted. On a motion by Mr. Mardiros, supported by Mrs. Kavanaugh, and unanimously adopted, it was #82-297 RESOLVED, that the Regular Meeting of December 9, 1982 of the Economic Development Corporation of Livonia be adjourned at 5:55 p.m. Respectfully subiitted, Ron Ma RM/mk secretary