HomeMy WebLinkAboutMinutes - 57th - October 13, 1983 signedTHE 57th 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 5:00 p.m., October 13,
1983, 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
Mr. Ron Mardiros
Mr. Robert E. McCann
Mr. Angelo A. Plakas*(arrived 5:15 p.m.)
Mr. Stanley Telman
Mr. Ronald Knoll (Hercules Director)
Mr. Thaddeus 0palinski (Hercules Director)
Mr. Joseph F. Waughn (Newburgh Assoc. Director)
Directors Absent: Mr. Robert Jankowski
Mr. Peter Ventura
Mr. Henry Easdon (Newburgh Associates)
Others Present:
Mr. Stephen Hall, Newburgh Associates
Mr. Donald Kelm, Miller/Canfield
Mr. Daniel Gilmartin, Executive Director
Ms. Marie E. King, Recording Secretary
On a motion by Mr. Mardiros, supported by Mr. Telman, it was
#83-333 RESOLVED, that the minutes of the September 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, Helmkamp, Mardiros, McCann, Telman
NAYS: None
ABSTENTIONS: Hand
The Vice Chairman declared the resolutions adopted.
The first item on the Agenda was the application from General Properties
(Elliott Schubiner). The Executive Director explained that Mr. Schubiner has requested
that this item be tabled indefinitely. He is still trying to seek financing.
On a motion by Mr. Mardiros, supported by Mr. Telman, and unanimously
adopted, it was
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#83-334 RESOLVED, that the application from General Properties and
Elliott Schubiner be tabled until further notice is received from the
petitioner.
The next item on the Agenda was the consideration of the Project Plan for
Newburgh Associates. The Executive Director explained that this petition was first
heard, and approved, by the E7)C on July 10, 1980. The project consists of an
approximate 2-acre parcel about 660 feet south of Six Mile Road, on the east side
of Newburgh Road. The land in question is located between
Timothy Presbyterian Church, in the NW 1/4 of Section 17.
proceeded and the current land use finds the two buildings
occupancy.
The "transfer of employment" problems
Newburgh Plaza and St.
The construction
has
in various stages of
created by the guidelines of P.A.
338 have been resolved, and the applicant has received authorizations from affected
municipal jurisdictions. Mr. Donald Keim of Miller/Canfield and Mr. Stephen Hall
of Newburgh Associates were present to answer any questions the board might have.
Mr. Hand commented that it has been taking a long time for the project to
be completed and he wondered what the delay was.
Mr. Hall explained that there was a problem in obtaining financing but
that everything has been taken care of now. The project is completed except for
some of the interiors. Two/thirds of the space has been leased.
Mr. Helmkamp commented that he is leasing space in the project and is
very pleased with the arrangements so far.
Mr. Donald Keim said that the project plan is in order. It contains no
unusual language. However, Miller, Canfield, Paddock and Stone have been asked to
represent the Guardian Life Insurance Company of America which will be the purchaser
of the bonds. Therefore, the Chairman is asked to sign a letter of disclosure which
gives consent to Miller, Canfield, Paddock & Stone to represent both the purchaser of
the bonds and the issuer of the bonds.
On a motion by Mr. Hand, supported by Mr. Mardiros, it was
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03-335 RESOLVED, that the Economic Development Corporation does hereby
give consent to Miller, Canfield, Paddock & Stone to represent the
Guardian Life Insurance Company of America as purchaser of the bonds and
does not see any conflict of interests, and further resolved that the
Chairman or Vice Chairman is authorized to sign the letter of disclosure
on behalf of the Economic Development Corporation of Livonia.
A roll call vote was taken on the foregoing resolution with the following result:
AYES: Hale, Hand, Mardiros, McCann, Telman, Waughn
NAYS: None
ABSTENTIONS: Helmkamp
The Vice Chairman declared the resolution adopted.
On a motion by Mr. McCann, supported by Mr. Hand, it was
#83-336 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 location,
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
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"), has prepared a project plan ( the
"Project Plan"), providing all information and requirements necessary for
a project to be undertaken for the benefit of Newburgh Associates (the
"Project"), including the issuance of revenue bonds by the Corporation (the
"Bonds");
NOW, THEREFORE, BE IT RESOLVED:
1. The Project Plan, 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 Project Plan
have sufficient ability and experience to manage the plan properly.
3. The proposed metnods of financing the Project as outlined in
the Project Plan are feasible and this Corporation has the ability to
arrange, or cause to be arranged, the financing.
4. The 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.
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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
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 Project Plan to the
legislative body of the City for its review.
8. The Secretary is further directed to certify to the legis-
lative body of the City that upon advice of the Project's applicant and
upon this Board's investigation the Project will have the effect of
transferring employment of more than 20 full-time persons from another
Michigan municipality to the City. A resolution consenting to the
transfer of employment has been adopted by the City Council of the City
of Westland and the Township Board of the Township of Northville, the
municipalities from which employment will be transferred, and are attached
hereto.
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: Hale, Hand, Mardiros, McCann, Telman, Waughn
NAYS: None
ABSTENTIONS: Helmkamp
The Vice Chairman declared the resolution adopted.
* Angelo Plakas arrived at 5:15 p.m.
The next item on the agenda was an amendment to the Hercules Drawn Steel
Project. The Executive Director reminded the Board of Directors that Hercules Drawn
which
Steel, 38901 Amrhein, is a Livonia manufacturer/received final EDC bond approval on
December 10, 1981 in the principal amount of $1,275,000 to defray the cost of
acquiring and installing equipment to be used in the company's manufacture of cold
drawn steel bars. The Company has informed the EDC that the project did not use
all the proceeds of the bonds and that there exists a
133,000 surplus. Hercules
would like to have the 9 pieces of equipment listed in Exhibit A included as a
First Amendment and First Supplement to the original project.
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it was
On a motion by Mr. Hand, supported by Mr. Plakas, and unanimously adopted,
#83-337 WHEREAS, on December 10, 1981 the Economic Development Corporation
of the City of Livonia (the "EDC") adopted a Resolution (the "Resolution")
authorizing the issuance of its $1,275,000 Limited Obligation Revenue Bonds
(Hercules Drawn Steel Corporation Project), Series A (the "Bonds") for the
benefit of Hercules Drawn Steel Corporation, a Michigan corporation (the
"Company"); and
WHEREAS, pursuant to the Resolution, the EDC authorized the
execution and delivery of a Loan Agreement, dated as of November 1, 1981
(the "1981 Agreement") between the EDC and the Company for the purpose of
financing the Project, as defined therein; and
WHEREAS, pursuant to the Resolution, the FDC authorized the
execution and delivery of an Indenture, dated as of November 1, 1981 (the
"1981 Indenture") between the EDC and The Toledo Trust Company, an Ohio
banking corporation (the "Secured Party"); and
WHEREAS, pursuant to the 1981 Indenture, the EDC has assigned to
the Secured Party all of its interest (subject to certain specified
exclusions) in the 1981 Agreement and any amendments thereto; and
WHEREAS, pursuant to the Resolution, it was contemplated that
the Company and the EDC may amend the 1981 Agreement with the prior consent
of the Secured Party and that the FDC and the Secured Party may amend the
1981 Indenture; and
WHEREAS, the Company has informed the EDC that the Project as
defined in the 1981 Agreement did not use all the proceeds of the Bonds
and that there are currently surplus Bond Proceeds, as defined in Section
4.4 of the 1981 Agreement, of approximately S133,300 in the Project Fund,
as defined in the 1981 Agreement; and
WHEREAS, the Company has requested the EDC to authorize an
amendment to the 1981 Agreement (the "First Amendment") and a supplement
to the 1981 Indenture ( the "First Supplement"), to add to the definition
of "Project" certain machinery (the "Machinery") closely related to the
Project Purposes, as defined in the 1981 Agreement; and
WHEREAS, the Secured Party has consented in writing to the addition
of the Machinery to the Project.
NOW, THEREFORE, BE IT RESOLVED:
1. Determination of Project Purpose. The Machinery comes within
the definition of Project Purposes as defined in the 1981 Agreement.
2. Approval of the First Amendment and First Supplement. The
form of First Amendment and the form of First Supplement on file with the
Secretary of the NOC are hereby approved.
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3. Execution and Delivery of the First Amendment and First
Supplement. The Chairman or Vice -Chairman of the Board is hereby authorized
to execute and deliver and the Secretary is authorized to attest and seal
the First Amendment and the First Supplement, in the form approved, with
such changes and insertions as may be necessary or desirable, permitted
by Act 338, Public Acts of Michigan, 1974, as amended, and otherwise by law,
and not materially adverse to the EDC.
4. Authorization of Other Documents. The Chairman, Vice Chairman,
Secretary, members, staff and counsel for the EDC or any of them, are
hereby authorized to execute and deliver such other certificates, documents,
instruments and opinions and other papers as may be required by the First
Amendment or the First Supplement, or as may be necessary or convenient to
effectuate the delivery of the First Amendment or the First Supplement.
5. Conflict and Effectiveness, All resolutions and parts of
resolutions or other proceedings of the EDC in conflict herewith are
repealed to the extent of such conflict. This resolution shall become
effective upon adoption.
Alan Helmkamp gave the Treasurer's Report. There is a current Fund Balance
of $25,465.33. The total Fiscal Year To Date 1983 Revenues are
3,514.12. The total
Fiscal Year To Date 1983 Expenses are $9,393.88. The Decrease in Fund Balance,
Year To Date is $5,879.76.
On a motion by Mr. Telman, supported by Mr. Hand, and unanimously adopted,
it was
#83-338 RESOLVED, that the Treasurer's Report presented by Treasurer,
Alan Helmkamp, be accepted as submitted.
At this time, there was some general discussion about the role the EDC
should play in attracting business to Livonia.
The City of Livonia has not actively
sought business because there is very little land left to be developed and there has
been a constant interest in the land by various developers. The EDC has no trouble
attracting business; however, the applicants have trouble finding financial insti-
tutions interested in purchasing the bonds.
On a motion by Mr. Hand, supported by Mr. Plakas, and unanimously adopted,
it was
#83-339 RESOLVED, that the Regular Meeting of the Economic Development
Corporation, held October 13, 1983, be adjourned at 5:45 p.m.
Respectfully Sub'itte
Ron Mardi os Secretary