City Commission Agenda

Transcription

CITY COMMISSION MEETING AGENDA Tuesday, February 18, 2003
Tuesday, February 18, 2003
8:10 a.m. COMMITTEE ON APPOINTMENTS* (Coms. Dean, Rabaut, Schmidt), Conf. Room 901
1)
Resolution confirming the Mayor's appointment of a member to the Grand Rapids Historical
Commission
2)
Resolution confirming the Mayor's appointment of a member to the Rehabilitation Appeals
Board
3)
Discussion of Board/Commission Vacancy List
8:30 a.m.
FISCAL COMMITTEE* (Coms. Bowen, Dean, Schmidt), Conference Room 601
1)
Resolution authorizing an amendment to a professional services contract with Scott D.
Bergthold
2)
Resolution authorizing the subordination of a Housing Rehabilitation mortgage on property
located at 649 Sibley Street, N.W.
3)
Resolution authorizing payment of an invoice from Standard Federal Bank for payroll
services
4)
Proposed modification for FY2003 Budget Ordinance Amendment #11
5)
Weekly Bid List
6)
Comptroller’s Report
A) Weekly Warrant
B) Small Claims Paid Report
C) Travel Report
7)
Treasurer’s Report
*Parking Ramp tickets may be validated by the Recorder after the meeting or at the City Clerk's Office on the 2nd floor
8:30 a.m.
COMMUNITY DEVELOPMENT COMMITTEE* (Coms. Jendrasiak, Rabaut, Tormala),
Conference Room 901
1)
Resolution authorizing the sale of City owned property located at 635 Charles Avenue, S.E.
2)
Resolution granting final approval of the preliminary plat of Northbend Estates No. 2
3)
Resolution rescinding a contract award for demolition of buildings, Contract 2002-2, and
awarding contracts for demolition of buildings, Contract 2003-01
9:00 a.m.
COMMITTEE OF THE WHOLE*, Conference Room 601
1)
Resolution authorizing the execution of Purchase and Development Agreement for property
located at 530 South Division
2)
Resolution authorizing the execution of Purchase and Development Agreement for property
located at 630 South Division
2:00 p.m.
CITY COMMISSION MEETING*, Commission Chambers (agenda attached)
*Parking Ramp tickets may be validated by the Recorder after the meeting or at the City Clerk's Office on the 2nd floor
CITY OF GRAND RAPIDS
CITY COMMISSION MEETING
TUESDAY, FEBRUARY 18, 2003
2:00 p.m.
1.
Call to order
2.
Invocation - Com. Rabaut
3.
Pledge of Allegiance
4.
Roll Call
5.
Approval of Minutes of February 11, 2003
6.
Public Comments on Agenda Items
7.
Petitions and Communications
8.
Reports of City Officers
9.
Ordinances
10.
Consent Agenda - items noted by asterisk (*)
11.
Reports of Standing Committees:
COMMITTEE ON APPOINTMENTS
COMMITTEE OF THE WHOLE
FISCAL COMMITTEE
COMMUNITY DEVELOPMENT COMMITTEE
PUBLIC SAFETY COMMITTEE
12.
Public Hearings
1)
Hearing to consider the application to establish an Obsolete Property
Rehabilitation District or Districts, pursuant to Act 146 of 2000, for
Pinnacle Venture LLC/Pinnacle Corporation Group, located at 1010 Front
Ave., N.W.
13.
Public Comments
14.
Comments by Commissioners
15.
Adjournment
City of Grand Rapids
Focus Teams and Special Committees
Date
Wed., Feb. 19
Meeting
Police/Fire Retirement Brd
General Retirement Brd
Joint Trustees
J. Logie
Time and Location
8:00 a.m., 233 E. Fulton
8:10 a.m
8:15 a.m.
DATE:
February 12, 2003
TO:
Mary Therese Hegarty
City Clerk
FROM:
Kathleen M. Black
Administrative Analyst I
SUBJECT:
Appointment to the Grand Rapids Historical Commission
A resolution has been prepared to confirm the Mayor's appointment of John Douglas to the Grand
Rapids Historical Commission. The appointment is for the remainder of an unexpired term
ending the first Monday of January 2006. Mr. Douglas will fill the vacancy created when Clay
Palmer reached service limitation.
Attached is the Personal Information Form for John Douglas. After this appointment, one
vacancy remains on the Grand Rapids Historical Commission and the composition is as follows:
W1 - 2
W2 - 7
W3 - 2
OSC - 1
Attachment
t:\city clerk\agenda\4 11 Agenda\CA 2 Historical Commission Appt.doc
041103
WM WF BF HM -
6
3
2
1
YOUR COMMITTEE ON APPOINTMENTS recommends adoption of a resolution
confirming the Mayor's appointment of a member to the Grand Rapids Historical
Commission.
____________________________________
____________________________________
____________________________________
Com. _____________________, supported by Com. _____________________,
moved to adopt the following resolution:
RESOLVED that the Mayor's appointment of John Douglas to the Grand Rapids
Historical Commission for the remainder of an unexpired term ending the first Monday of
January 2006, be confirmed.
Drafted by Kathleen Black for Mary Therese Hegarty, City Clerk.
DATE:
February 12, 2003
TO:
City Clerk
FROM:
Kathleen M. Black
SUBJECT:
APPOINTMENT TO THE REHABILITATION APPEALS BOARD
A resolution has been prepared to confirm the Mayor's appointment of James B. Allen to
the Rehabilitation Appeals Board as a CDCC representative. The appointment is for the
remainder of an unexpired term ending the first Monday of January 2006.
This appointment will fill the vacancy created when LaDeidra Brown-Gais resigned.
Attached is the Personal Information Form for James B. Allen. After this appointment, two
vacancies remain on the Rehabilitation Appeals Board and the composition is as follows:
W1 - 0
W2 - 4
W3 - 1
WM - 4
WF - 1
YOUR COMMITTEE ON APPOINTMENTS recommends adoption of a resolution
confirming the Mayor's appointment of a member to the Rehabilitation Appeals Board.
____________________________________
____________________________________
____________________________________
Com. _____________________, supported by Com. _____________________,
moved to adopt the following resolution:
RESOLVED that the Mayor's appointment of James B. Allen as a CDCC
representative to the Rehabilitation Appeals Board for the remainder of an unexpired term
ending the first Monday of January 2006, be confirmed.
Drafted by Kathleen Black for Mary Therese Hegarty, City Clerk.
DATE:
February 12, 2003
TO:
City Clerk
FROM:
Kathleen M. Black
SUBJECT:
Board/Commission Vacancy List
Attached is a listing of current board/commission vacancies for review by the Committee on
Appointments.
Attachment
t:\city clerk\agenda\2 11 Agenda\CA 5 Vacancy List.doc
021103
CITIZEN BOARDS AND COMMISSIONS
VACANCY LIST
February 18, 2003
COMPOSITION OF
CURRENT MEMBERS
BOARD OF REVIEW (6 members)
Mayoral Appointment
1) UNEXPIRED TERM ending 2/01/06
(to replace John Westman)
W1 - 1
W2 - 2
W3 - 2
WM - 4
BM - 1
BOARD OF ZONING APPEALS (9 members and 2 alternates)
City Commission Appointment
(to replace Cathey Manning)
W1 - 4
W2 - 2 + 1
W3 - 2 + 1
WM - 3 + 2
WF - 4
BM - 1
CITY PLANNING COMMISSION (9 members)
Mayoral Appointment
1) THREE YEAR TERM ending 1/02/06
(to replace Peter Carlberg)
(to replace John Stivers)
W1 - 2
W2 - 2
W3 - 3
WM - 3
WF - 3
BM - 1
COMMUNITY DEVELOPMENT CITIZENS COMMITTEE (15 members)
(Com. Dean's appointment to replace Joe Jones)
(Mayor Logie’s appointment to replace Lori Perkins)
(Com. Tormala’s appointment to replace LaDeidra Brown-Gais)
W1 - 4
W2 - 4
W3 - 4
WM WF BM AIM -
DOWNTOWN DEVELOPMENT AUTHORITY (9 members)
Mayoral Appointment
1) FOUR YEAR TERM ending 1/01/07
(to replace Tom Wesholski)
(to replace Casey Wondergem)
W1 W2 W3 OSC
1
3
1
-2
WM - 5
WF - 1
BM - 1
GRAND RAPIDS HISTORICAL COMMISSION (13 members)
Mayoral Appointment
(to replace Maurilla Blakely)
W1 W2 W3 OSC
2
7
2
-1
WM WF BF HM -
6
3
2
1
GRAND RAPIDS POLICE CIVILIAN APPEALS BOARD (9 members)
(Mayor Logie’s appointment to replace Lori Perkins)
W1 - 2
W2 - 2
W3 - 4
WM BM BF HM AIF -
4
1
1
1
1
HOUSING APPEALS BOARD (9 members and 3 alternates)
Mayoral Appointment
(to replace Karl Butterer – alternate member)
W1 - 5
W2 - 3 + 2
W3 - 1
WM WF BM BF HF -
5
1+1
1+1
1
1
LOCAL OFFICERS COMPENSATION COMMISSION (7 members)
Mayoral Appointment
1) SEVEN YEAR TERM ending 9/30/09
(to replace Mary Alice Williams)
W1 - 2
W2 - 1
W3 - 3
WM WF BM BF -
3
1
1
1
5
4
2
1
NEIGHBORHOOD BUSINESS ALLIANCE GOVERNING BOARD (40 members)
Mayoral Appointment
1) UNEXPIRED TERM ending 3/01/05 for Representative for EAST FULTON
2) UNEXPIRED TERM ending 3/01/05 for Alternate for FRANKLIN-EASTERN
3) UNEXPIRED TERM ending 3/01/05 for Representative for GRANDVILLE
4) UNEXPIRED TERM ending 3/01/05 for Alternate for GRANDVILLE
5) UNEXPIRED TERM ending 3/01/03 for Alternate for MONROE NORTH
6) UNEXPIRED TERM ending 3/01/05 for Alternate for STOCKBRIDGE
REHABILITATION APPEALS BOARD (7 members)
Mayoral Appointment
(to replace Donald Gerard – target area member)
(to replace Suni Musawwir)
W1 - 0
W2 - 4
W3 - 1
WM - 4
WF - 1
TAX INCREMENT FINANCE AUTHORITY (11 members)
Mayoral Appointment
(to replace Robert Buffham)
(to replace Casey Wondergem)
W1 W2 W3 OSC
WM - 8
WF - 1
KMB/ts
3
3
1
-2
DATE:
February 12, 2003
TO:
KURT KIMBALL
Fiscal Committee
FROM:
PHILIP A. BALKEMA
City Attorney
SUBJECT:
FISCAL COMMITTEE RESOLUTION
Executive Arts Studio, Inc. d/b/a Velvet Touch v City of Grand Rapids
AND Intimate Ideas, Inc. v City of Grand Rapids
The attached resolution will authorize an amendment to the City of Grand Rapids existing
contract with Scott D. Bergthold for professional legal services in conjunction with two pending
cases (Executive Arts Studio, Inc. v City of Grand Rapids and Intimate Ideas, Inc. v City of
Grand Rapids) currently pending in the Sixth Circuit Court of Appeals and the Federal District
Court for the Western District of Michigan. This amendment is required as additional litigation
has expanded the assistance which has been required from Mr. Bergthold.
Money for the increased contract amount ($14,500.00) exists in the City Attorney’s Office
budget. The proposed amended contract will secure Mr. Bergthold’s services through the
Sixth Circuit appellant process.
DAO/slm
Attachment.
YOUR FISCAL COMMITTEE recommends adoption of the following resolution authorizing
an amendment to a Professional Services Contract between the City of Grand Rapids and
Scott D. Bergthold for litigation purposes.
____________________________________
____________________________________
____________________________________
FISCAL COMMITTEE
Com.
, supported by Com.
moved adoption of the following resolution:
,
RESOLVED that the contract between the City of Grand Rapids and Scott D. Bergthold
for expert professional services necessary in the cases of EXECUTIVE ARTS STUDIO, INC. v
CITY OF GRAND RAPIDS, COA Case No. 02-2183 and INTIMATE IDEAS, INC. v CITY OF
GRAND RAPIDS, COA NO. 03-1091 be and is hereby approved and the Mayor is authorized to
execute a contract in a form to be approved by the City Attorney in an amount not to exceed
Thirty-Five Thousand and 00/100 Dollars ($35,000.00).
FURTHER RESOLVED that the Comptroller be and is hereby authorized and directed to
issue checks not exceeding the amount agreed in the contract when certified by the City Attorney.
Resolution prepared by:
Daniel A. Ophoff, Assistant City A ttorney
DATE:
February 11, 2003
TO:
Victor Vasquez, Jr., Assistant City Manager
Planning & Community Development Services
FROM:
Connie M. Bohatch, Director
Community Development Department
SUBJECT:
Subordination Agreement: 649 Sibley Street NW
Attached is a resolution authorizing a mortgage subordination agreement regarding property
located at 649 Sibley Street NW.
Wells Fargo Home Mortgage, Inc., its successors and/or assigns, of Springfield, Ohio, is
requesting a subordination of our Housing Rehabilitation mortgage because Margaret H.
Sumadji wishes to refinance her loan to obtain a lower fixed interest rate.
The current mortgage payment, including taxes and insurance, is $408.00 per month at 9%
interest. The new monthly mortgage payment, also including taxes and insurance, will be
$325.00 at 6.25% interest. Based on our guidelines, I recommend that the City Commission
approve this subordination request.
Payoff of Current Mortgage
Closing costs & Prepaid items
Amount of New Mortgage
$36,902.00
3,098.00
$40,000.00
Please place this item for consideration on the next available City Commission agenda.
CMB:MT/kz
Attachment
1145actg03a.doc
YOUR FISCAL COMMITTEE recommends adoption of the following resolution
authorizing the subordination of a Housing Rehabilitation mortgage on property located at 649
Sibley Street NW.
_____________________________________
_____________________________________
_____________________________________
FISCAL COMMITTEE
Com
, supported by Com.
moved the adoption of the following resolution:
RESOLVED that the subordination of the City’s mortgage covering land located at 649
Sibley Street NW, Grand Rapids, Michigan 49504, to Wells Fargo Home Mortgage, Inc., its
successors and/or assigns, P. O. Box 5106, Springfield, Ohio 45502, be and is hereby
approved in an amount not to exceed $40,000; and
RESOLVED that the Mayor be and is hereby authorized to execute all necessary
documents in a form approved by the City Attorney relating to said subordination, and the
Community Development Department is authorized and directed to record said subordination
documents with the Kent County Register of Deeds.
_______________
This resolution was reviewed by Connie M. Bohatch, Community Development Director.
1145actg03a.doc
,
FISCAL COMMITTEE
DATE:
February 12, 2003
TO:
Kurt Kimball, City Manager
FROM:
Albert C. Mooney, City Treasurer
SUBJECT:
Payment To Standard Federal Bank For Payroll Services
Please find attached a resolution our Office is asking to have presented to the City Commission
that requests authorization to provide payment to Standard Federal Bank for payroll services
totaling $11,100.69 for the period from January 1, 2002 through December 31, 2002. This billing
for the City's payroll account at Standard Federal Bank is similar to ones processed in the past.
For reference, last year the City paid $7,874.40 for the fees associated with processing City payroll
checks.
The increase in our net annual payment is related to a decrease in the interest rate paid on City
compensating balances. The interest is paid on the float balance that remains in the account while
awaiting payroll checks to clear the banking system. This interest is used to offset the processing
fees.
As referenced in my report to the Fiscal Committee last fall, the City is billed because the fees
incurred exceed the earning credits for monies left on deposit as compensating balances. Under
normal conditions, this allows the City to maximize the interest earnings by leaving payroll monies
invested in our trust accounts where we usually earn a higher interest rate than is paid to the City
for compensating balances. Note should be made that Fred Raabe, Deputy City Treasurer,
recently noted that the trust account interest rates have fallen below the compensating balance
interest rate, so we are no longer in an interest rate environment that benefits the City by funding
the payroll account in increments.
Our Office will continue to monitor the situation to provide for the maximum benefit for the City on
our payroll balances. Please review this matter and contact me at ext. 3285 if you have any
questions or further comments regarding this request. Thank you.
ACM:kg/FC - PAYMENT - STANDARD FED2003.WRD
Attachment
cc:
Fred Raabe, Deputy City Treasurer
Linda Wright, Administrative Analyst
Stan Milanowski, City Comptroller
Mary Szyszlowski, Acting Deputy
City Comptroller
FISCAL COMMITTEE
FISCAL COMMITTEE recommends adoption of the following resolution authorizing a
payment of an invoice from Standard Federal Bank for payroll services for the period from January
1, 2002 through December 31, 2002.
______________________________
______________________________
______________________________
FISCAL COMMITTEE
Com.
, supported by Com.
, moved adoption of the following resolution:
RESOLVED, that the City of Grand Rapids is hereby authorized to pay an invoice i n the
amount of $11,100.69 to Standard Federal Bank for certain fees for the payroll account for the
period of January 1, 2002 through December 31, 2002.
Resolution drafted by Albert C. Mooney.
FISCAL COMMITTEE
DATE:
February 12, 2003
TO:
Greg Sundstrom
Assistant City Manager
FROM:
Jacqueline Kato
Budget Director
SUBJECT:
PROPOSED MODIFICATION FOR FY 2003 BUDGET ORDINANCE
AMENDMENT #11
1.
Economic Development - Property Management Fund
The Business Advocate has requested a budget amendment to establish a property
management fund under the Economic Development Office. This fund would be set up
as a subfund under the Neighborhood Improvement Fund, and would account for
revenue and expenses related to the management of non-tax reverted properties. An
initial advance of $24,000 from the General Fund contingent account is needed to
establish the fund and would be paid back to the General Fund from proceeds from the
sale of properties. (See Attachment A).
This would authorize an appropriation in the amount of $24,000 from the contingent
account of the General Operating Fund for transfer to the Neighborhood Improvement
Fund, Property Management Subfund, to account for sales and management of non-tax
reverted properties.
2.
Risk Management – Premium Update
The Risk Management Department is requesting a budget amendment in the amount of
$97,107 to increase the Insurance Premium account in the Insurance Fund. This
increase is to cover the additional premium required by Michigan Municipal Risk
Management Authority (MMRMA) due to the increase in the City’s fleet and to cover the
increase in the Michigan Catastrophic Claims Account (MCCA). (See Attachment B).
This will authorize an appropriation from the retained earnings of the Insurance Fund in
the amount of $97,107.
Greg Sundstrom
Assistant City Manager
February 12, 2003
Page 2
3.
Risk Management – Terrorism Risk Insurance Act of 2002
The Risk Management Department is requesting a budget amendment in the amount of
$15,825 for the cost of insurance premiums for full property coverage up to
$500,000,000 in the event of an act of terrorism. Under the Terrorism Risk Insurance
Act of 2002, the Federal Government will share the risk of loss from certain terrorism
events with insurers. The City’s property insurance carrier, FM Global, has extended a
coverage window to the City of Grand Rapids. (See Attachment C).
This will authorize an appropriation from the retained earnings of the Insurance Fund in
the amount of $15,825.
4.
Fire Department – FEMA Grant
The Grand Rapids Fire Department has been awarded a grant by the Federal
Emergency Management Agency (FEMA) and the US Fire Administration in the amount
of $251,898. This grant requires a 30% local match, totaling $75,569; the balance of
$176,329 represents the Federal share of the grant. The Fire Department is requesting
a budget amendment to recognize the grant and for the local match requirement. The
Fire Department will provide $25,569 from existing capital projects and the balance of
$50,000 will be provided from the contingency account in the General Fund. (See
Attachment D).
This will authorize an increase of $251,898 in both the resources and appropriations of
the General Operating Fund Grants Subfund for the FEMA grant. This will also
authorize the transfer of $25,569 from the Capital Improvement Fund to the FEMA
Grant in the General Operating Fund Grants Subfund. It will further authorize a transfer
from the contingency account in the General Operating Fund in the amount of $50,000
to the Fire Department, for a total of $75,569 for the local match requirement.
JK:jm
Attachments
Mydocs\ba03\BA11
ATTACHMENT A
DATE:
February 7, 2003
TO:
Jackie Kato
Budget Director
FROM:
Susan Shannon, Business Advocate
Economic Development Office
SUBJECT: Establishment of a Property Management Fund
As you know, the City has a budget established (DNR) to account for revenues and expenses
for management, maintenance and sale of tax reverted properties. From time to time, the
Economic Development Office also receives properties to sell for redevelopment that are not
tax reverted. Examples include the Creston Library, the American Laundry properties and 101
South Division, a building the City took as a result of code violations. These properties are put
for sale by our office according to the City’s policy for disposal of non-residential property.
However, the expenses related to maintaining and marketing these properties can not be
charged to the DNR budget.
I am requesting a budget amendment that would establish a budget similar to the DNR budget
which would account for revenues and expenses related to management of these non-tax
reverted properties. While an initial advance from the general fund is needed in the amount of
$24,000, the proceeds of the sales can be used to reimburse the general fund and cover future
expenses. I also believe this would be an appropriate fund for deposit of lease receipts of
other miscellaneous properties we manage.
Could you proceed to establish this budget as soon as possible as we have outstanding bills
for taxes and utilities on these properties. Thank you.
SS/saw
Wier:Budget:Establish Prop Mgmnt Fund
cc:
Eric R. DeLong
ATTACHMENT B
DATE:
February 10, 2003
TO:
Jacqueline M. Kato
Budget Director
FROM:
David Etheridge
Human Resources Director
SUBJECT: Michigan Municipal Risk Management Authority (MMRMA)
Updated Premium
An updated Contribution for MMRMA Participation (premium) was received in this office. The
City previously paid $281,898 for the period 7/1/2002-2003. At this time an additional premium
is owed in the amount of $97,107. There are two primary reasons for this increase in
premium.
The fleet of City vehicles licensed for highway use has increased from 625 to 805. The
MMRMA guarantees any premium increase will not exceed 3% unless there is a significant
exposure increase. The increased vehicle count represents a significant increase in auto
liability exposure. The MMRMA has increased its premium to cover this exposure as outlined
on the Coverages per Member Coverage Overview (attached) – an overall increase in the
amount of $37,982 or 13.5%.
In addition, this year the Michigan Catastrophic Claims Fund (MCCA) charge is $69 per
vehicle. It is a cost that the MMRMA passes to its participants in the Loss Fund Deposit. This
per vehicle charge represents a significant increase over what was projected. The total cost to
the City with its increased fleet is $56,442. This Loss Fund Deposit is also used to cover any
claims expense incurred by the City, certain meeting costs and deficits from the previous year.
A budget amendment is being requested to increase the Insurance Premium account in the
Insurance Fund.
ATTACHMENT C
DATE:
February 10, 2003
TO:
Jacqueline M. Kato
Budget Director
FROM:
David Etheridge
Human Resources Director
SUBJECT: Terrorism Risk Insurance Act of 2002
Under the Terrorism Risk Insurance Act that became effective November 26, 2002, the
Federal government will share the risk of loss from certain terrorism events with insurers. As
required by law, the City’s property insurance carrier, FM Global, has extended a coverage
window to the City of Grand Rapids.
This coverage includes full property coverage limits of $500,000,000. The City’s current policy
restricts terrorism coverage to $1,000,000 per occurrence and an annual aggregate of
$5,000,000. The pro-rata premium from November 26, 2002 to the City’s property renewal
date of July 1, 2003, is $15,825.
Under the Act, the City’s carrier must receive the City’s signed Notice of Coverage form
indicating whether the City intends to purchase the terrorism coverage within 30 days or
February 24, 2003. It is the recommendation of the City’s Agent of Record that the City
purchase this coverage.
A budget amendment is being requested to increase the Insurance Premium account in the
Insurance Fund.
Attachment
ATTACHMENT D
DATE:
February 11, 2003
TO:
Jacqueline Kato
Budget Director
FROM:
Mike Burton
Fire Chief
SUBJECT:
CAPITAL SUBSTITUTION REQUEST FOR 2002 FEMA GRANT
The Grand Rapids Fire Department was recently awarded a grant by the Federal Emergency
Management Agency (FEMA) and the United States Fire Administration from the 2002
Assistance to Firefighters Grant Program. The grant is for $176,329, representing the 70%
federal share; the 30% local match requirement is $75,569, for a project total of $251,898.
The grant award will be used by the Fire Department to provide critical training and
equipment to its firefighters for a variety of citizen rescue scenarios, including High-rise
Building Firefighting and Rescue, Water Rescue, and Ice Rescue. This grant will also
be used to purchase three (3) hand-held thermal imaging cameras. Other Fire
Department needs covered by this grant include closed-circuit video training equipment,
Intranet web-streaming of training materials and programs, and certain types of medical
and fitness testing for firefighters.
On February 4, 2003, the City Commission formally accepted this grant, and approved the
$75,569 local match. Of this total, $50,000 will come from the FY03 contingency account in
the General Fund. The remaining $25,569 would be taken from existing Fire Department
capital funds.
At this time, it is proposed that $25,569 be transferred from existing Fire Department capital
project 18C393 - Physical Fitness, for the Fire Department share of the local match to the
FEMA grant.
FOR IMMEDIATE EFFECT
Your Fiscal Committee recommends adoption of the following amendment to the
Budget Ordinance for Fiscal Year Ending June 30, 2003.
_______________________________
_______________________________
_______________________________
Fiscal Committee
Com.
, supported by Com.
moved adoption of the following Ordinance:
ORDINANCE NO. 2003 ________
THE PEOPLE OF THE CITY OF GRAND RAPIDS DO ORDAIN:
Section 1. That the following constitutes amended additions to the designated line items of
Section 1 of Ordinance 2002-32, the Budget of the City of Grand Rapids for Fiscal Year 20022003, as amended previously:
GENERAL OPERATING
FUND
Resources:
Other
Total Amended Resources
Appropriations:
Fire Department
Contingent Account
G/A - Property Mgmt Fund
Total Amended Appropriations
$
201,898
$ 129,803,022
$
251,898
(74,000)
24,000
$ 129,803,022
NEIGHBORHOOD IMPROVEMENT FUND
Resources:
Other
$
$
24,000
844,387
Appropriations:
$
$
24,000
844,387
CAPITAL IMPROVEMENT
FUND
Resources:
From (To) Fund Balance
$
$
(25,569)
4,817,386
Appropriations:
$
$
(25,569)
4,817,386
INSURANCE FUND
Resources:
From (To) Retained
Earnings
$
112,932
$
28,664,336
Appropriations:
$
$
112,932
28,664,336
Your Fiscal Committee recommends the adoption of the following resolution authorizing the
Purchasing Agent to proceed with awards to the following bidders.
__________________________________________
__________________________________________
__________________________________________
Fiscal Committee
Com.____________________________, supported by Com.____________________________
moved adoption of the following resolution.
WHEREAS, the Fiscal Committee has considered the attached bids.
NOW THEREFORE, BE IT RESOLVED, that the Purchasing Agent be authorized to proceed
with awards to the following bidders, that contracts be prepared between the City and vendors as
noted (*), and the Mayor be authorized to sign the contracts on behalf of the City in a form to be
approved by the City Attorney.
Neal’s Truck Parts
Heco
America’s Flag Source
Kool Chevrolet
Grand Equipment
Bandit Industries
United Rentals
Ellis Sales
Graybar
Standard Electric
Elasco
Champion
GE Supply
(Brake Repair & Service, Fire Apparatus)
(Vibration Monitoring)
(Flags, Cemetery, U.S.)
(Pickup Trucks)
(Tandem Axle Trailer)
(Wood Chipper)
(Forklift)
(Lease Golf Carts)
(Fuses)
This resolution drafted by Linda Satchfield
02/18/03
Various Prices
Various Prices
$16,133.00
Various Prices
Various Prices
$33,853.00
$23,795.00
Various Prices
Various Prices
CITY COMMISSION MEETING
02/18/03
Following are brief reports relative to bids, which have been taken and evaluated by the Purchasing
Department. Award of the bids as listed is hereby recommended.
Linda Satchfield
Purchasing Agent
Neal’s Truck Parts
(Brake Repair & Service, Fire Apparatus)
Various Prices
On 01/20/04, File #70787, the City Commission approved a one-year “Term” contract with two, oneyear renewal options for brake repair service and parts for fire apparatus for Fire from Neal’s Truck
Parts for the annual of $35,00.00. At this time, Motor Equipment Services is requesting to be added
to the term for routine fleet equipment on an “as needed” basis. This would increase the annual by
$15,000.00, for a new annual of $50,000.00. There is no bid tab for this item. The Vendor’s
Affirmative Action Plan has been approved.
Heco
(Vibration Monitoring)
Various Prices
On 10/25/02, the Purchasing Agent approved a one-year “Term” with two, one-year renewal options
for vibration monitoring for the Wastewater Treatment Plant and Lake Michigan Filtration from
Heco for an annual of $6,000.00. At this time Facilities Management has identified a need for
services that require them to be added to the “Term”, increasing the annual by $25,000.00 for a new
annual of $31,000.00. There is no bid tab for this item. The Vendor’s Affirmative Action Plan has
been approved.
America’s Flag Source
(Flags, Cemetery, U.S.)
$16,133.00
Lowest and best bid is recommended for the purchase of U.S. cemetery flags from America’s Flag
Source $16,133.00. The flags will be placed on veteran’s graves on Memorial Day. Lower bid by
Orca Identification was not bid as specified. The award is pending approval of the Vendor’s
Affirmative Action Plan.
Kool Chevrolet
(Pickup Trucks)
Various Prices
Low bid is recommended for the purchase of two pickup trucks for Motor Equipment Systems from
Kool Chevrolet for $43,300.00. These are replacement vehicles for the Fire Department. The
Vendor’s Affirmative Action Plan has been approved.
Grand Equipment
(Tandem Axle Trailer)
Various Prices
Low bid is recommended for the purchase of a tandem axle trailer with air-type suspension option
for Motor Equipment Systems from Grand Equipment for $16,277.00. The award is pending
approval of the Vendor’s Affirmative Action Plan.
Bandit Industries
(Wood Chipper)
$33,853.00
Lowest and best bid is recommended for the purchase of a wood chipper for Motor Equipment
Systems from Bandit Industries for $33,853.00. Lower bid by Vermeer Great Lakes is not Bandit
brand and is not acceptable to Motor Equipment. The Vendor’s Affirmative Action Plan has been
approved.
United Rentals
(Forklift)
$23,795.00
Low bid is recommended for the purchase of a forklift for Traffic Safety from United Rentals for
$23,795.00. The Vendor’s Affirmative Action Plan has been approved.
Ellis Sales
(Lease Golf Carts)
Various Prices
Only bid received is recommended for a one-year “Term” with two one-year renewal options for
the lease of golf carts for the Indian Trails Golf Course for the Parks Department from Ellis Sales for
an annual of $31,495.00. The other vendor’s choose not to bid at this time. The Vendor’s
Graybar
Standard Electric
Elasco
Champion
GE Supply
(Fuses)
Various Prices
Lowest and best bids are recommended for a one-year “Term” contract with two, one-year renewal
options for purchase of various fuses for Central Stores as follows:
Vendor
Graybar
Standard Electric
Elasco
Champion
GE Supply
Section
V
III
IV, VI, VII
VIII, IX
I, II
Annual
$ 5,888.09
$ 2,458.92
$ 6,207.32
$ 15,153.75
$ 3,853.48
Lower bids by Standard Electric for section V, by Reed City Power for sections V and IX, and by GE
Supply for sections V and IX are lower as these bidders did not bid on all items. Champion’s
BID TAB
BID REF #020-04-02
BID OPENING DATE: 01/31/03
FOR: WOOD CHIPPER
# BIDDERS SOLICITED: 16
BUYER: AM
DEPT: MES
ITEM #1
WOOD
CHIPPER
$/EA
VERMEER GREAT LAKES
*$32,392.00
MI CAT
$34,990.00
BANDIT INDUSTRIES
$33,853.00
*DOES NOT MEET THE
SPECIFICATIONS AS STATED
IN THE BID DOCUMENT.
Bidtab.Excel
Revised 8/1999
Page 1 of 1
BID TAB
BID REF #070-48-55
FOR: PICKUP TRUCKS
BUYER: AM
DEPT: MES
ITEM #1
TRUCK
MED-DUTY
BED CAP
$/EA
ITEM #2
TRUCK
MED-DUTY
W/COMBO
BED CAP
$/EA
$21,300.00
$22,000.00
$21,736.00
$22,441.00
W/STANDARD
KOOL CHEVROLET
GOOD GMC
Bidtab.Excel
Revised 8/1999
Page 1 of 1
BID TAB
BID REF #070-81-01
FOR: TANDEM AXLE TRAILER
BUYER: AM
DEPT: MES
ITEM #1
TRAILER
TANDEM
AXLE
ITEM #1A
AIR
TYPE
$/EA
$/EA
$16,045.00
NB
$14,225.00
$2,052.00
SUSPENSION
GIAR & SONS EQUIPMENT INC.
GRAND EQUIPMENT
Bidtab.Excel
Revised 8/1999
Page 1 of 1
Page 1 of 1
BID TAB
BID REF #285-34-17
BID OPENING DATE: JANUARY 10, 2003
FOR: FUSES
BUYER: TW
DEPT: CENTRAL STORES
SECTION I
TOTAL:
FUSE,
CARTRIDGE
SECTION II
TOTAL:
FUSE,
KTK
SECTION III
SECTION IV
TOTAL:
TOTAL:
FUSE, BOOTS, FUSELINKS,
HOLDERS,
CUTOUTS,
BUSSMAN
S&C ELEC.
SECTION V
TOTAL:
FUSE,
MISC.
SECTION VI
TOTAL:
FUSE,
BAY-O-NET
SECTION VII
TOTAL:
FUSED
CUTOUT,
AB CHANCE
SECTION VIII
TOTAL:
FUSED
RELAY,
RCOC
SECTION IX
TOTAL:
FUSELINKS
$1,072.68
$3,485.00
$2,371.44
$1,798.10
$5,370.92
$612.48
$5,417.70
$17,117.55
$349.44
$1,128.54
$3,670.00
$2,496.36
$1,892.90
$5,594.38
$645.12
$5,702.79
$18,018.60
$367.92
$1,189.80
$3,869.00
$2,627.52
$1,992.10
$5,888.90
$679.02
$6,002.85
$18,966.95
$387.36
$1,013.22
$3,298.00
$2,240.52
$1,699.00
*$4,748.00
$578.10
$16,166.70
$336.60
$1,059.60
$3,449.00
$2,344.08
*$1,238.30
$1,101.32
$3,617.00
$2,458.92
*$1,238.70
YEAR 1
YEAR 2
YEAR 3
GRAYBAR
STANDARD ELECTRIC
*$2,826.48
$745.20
$4,410.00
*$143.52
*$2,995.92
$4,656.00
*$151.92
*$3,175.44
$4,929.00
*$160.80
REED CITY POWER
$1,238.50
$428.70
$4,194.00
$1,274.90
$441.36
$4,319.70
$1,303.40
$454.62
$4,449.30
ELASCO
$1,262.50
$14,440.00
$246.36
$1,329.00
$14,650.00
$260.00
$1,399.00
$14,880.00
$273.75
$14,846.90
*$174.48
CHAMPION
$933.48
$2,920.00
$933.48
$2,920.00
$933.48
$2,920.00
GE SUPPLY
*DID NOT BID ON ALL ITEMS.
Bidtab.Excel
Revised 8/1999
$3,204.96
$1,560.30
*$4,223.62
$553.68
$4,699.05
BID TAB
BID REF #350-70-21
BID OPENING DATE: FEBRUARY 7, 2003
FOR: CEMETERY FLAGS, U.S.
BUYER: TW
DEPT: PURCHASING
ITEM 1:
FLAG,
CEMETERY,
U.S.
$/GR
ZEBRA HILL MARKETING
$155.23
TASCO
$153.234
*ORCA IDENTIFICATION
*$93.60
JENNINGS OF MI
$144.00
AMERICA'S FLAGSOURCE
$94.90
LIBRA INDUSTRIES
$141.12
METRO FLAG
$113.76
*DOES NOT MEET THE
SPECIFICATIONS AS STATED IN
THE BID DOCUMENT.
Bidtab.Excel
Revised 8/1999
Page 1 of 1
BID TAB
BID REF #560-75-20
FOR: FORKLIFT
BUYER: AM
DEPT: TRAFFIC SAFETY
ITEM #1
1 EA
FORKLIFT
$/EA
UNITED RENTALS
$23,795.00
CROWN LIFT TRUCKS
$24,832.00
QUALITY MATERIAL HANDLING
$29,028.00
MICHIGAN INDUSTRIAL EQUIP.
$31,975.00
Bidtab.Excel
Revised 8/1999
Page 1 of 1
BID TAB
BID REF #975-50-02
FOR: LEASE GOLF CARTS
BUYER: AM
DEPT: PARKS
ITEM #1
40 EA
LEASE
GOLF
CARTS
$/YR
ITEM #2
1 EA
LEASE
UTILITY
CART
$/YR
$29,800.00
$1,695.00
$29,800.00
$1,695.00
$29,800.00
$1,695.00
YEAR 1
YEAR 2
YEAR 3
ELLIS SALES
Bidtab.Excel
Revised 8/1999
Page 1 of 1
Date:
February 18, 2003
To:
Mayor John H. Logie and City Commissioners
From:
Stan Milanowski, City Comptroller
Subject
COMPTROLLER'S REPORT FOR PERIOD OF
February 5, 2003
THROUGH
February 11, 2003
Cash payments released totaled
$
10,001,017.57 including $
3,866,439.48 for Payroll expenditures and
$
78,411.60
Tax warrants for the above captioned period. A detailed list of other disbursement transactions by fund is included in report FAMRS025 on file
with the City Clerk. A summary of disbursements by entity follows:
AMOUNT
PAYROLL
ENTITY
Grand Rapids Building Authority
Downtown Development Authority
Tax Increment Financing Authority
Brownfield Redevelopment Authority
Retirement Systems Office
$
3,824,129.79
30,644.63
1,859.80
$
OTHER
FUNDING BANK ACCT.
6,000,926.47
50,236.94
5,003.08
General Bank Acct. - NBD - 994-390-6
Community Development Acct. - 5/3B - 280-663-9
Home Investment Partnership Program - 5/3B - 265-520-4
Grand Rapids Bldg. Auth. B&I - SFB-1402-18562-1
Grand Rapids Bldg. Auth. Constr. -5/3B-7510839074
General Bank Acct. -NBD-994-390-6
863.42
8,941.84
$
3,866,439.48
$
6,056,166.49
During the above captioned period a total of
700
Income Tax Refunds and 748
those Accounts Payable Checks over $10,000 detailed on the following schedules for your reference.
Total
Accounts Payable checks were issued including
CHECKS ISSUED TO VENDORS $10,000 to $20,000
FOR THE PERIOD FEBRUARY 5 TO FEBURARY 11, 2003
DEPT
CHECK #
VENDOR
AMOUNT
DESCRIPTION
Engineering
786162
PPC Electric Inc
18,350.11 Improvements to the Lighting System at Ionia/Pearl Parking Ramp
Payroll
786186
ICMA Retirement Trust 401
17,726.88 Employer Contribution 401A, Employee Deduction Withheld, and Loan Payments
PPE 01/31/03
Payroll
786196
GREIU
16,554.89 Union Dues Withheld PPE 01/31/03
Payroll
786208
American United Life-Group
17,027.61 456 Plan 2 Withholding - Pay Period Ending 01/31/03
Water
786305
Consumers Energy
18,311.21 Electricity - Billing Period - 12/24/02-1/24/03
Comm Dev.
786368
Kent Area MicroBusiness
Loan
13,500.00 Microloans Agreement
Payroll
Payroll
786386
786387
American Fidelity Assurance
American Fidelity Assurance
Payroll
786428
Fifth Third Bank
18,658.04 Medicare Supplement - GREIU, APA, Fire, Police Comm.,Police Officer & Sgt., & ECO's
PPE - 1/31/03
Motor Equipment
786445
Lemmen Oil Co
13,925.90 Regular Unleaded Gas
Musuem
786471
Ascom Inc
19,780.00 Installation of Sound Domes for Two Stand Alone Displays, Installation of Theater for
the Dead Sea Scrolls Exhibit
Police
786588
Lamberth Consulting LLC
11,526.70 4th Installment for Contracted Personnel
Motor Equipment
786648
Lemmen Oil Co
12,969.32 Regular Unleaded Gas & #2 Diesel LS Dyed
Streets & Sant.
786662
Petoskey Plastics Inc
14,341.20 (1000)Bags & Tags
Planning
786720
Devries Development
11,686.00 Rent - 1120 Monroe NW
WWTP
786726
Earth Tech
13,400.00 Contract Management of Wastewater Treatment Plant - Professional Services Ending 12/03
9,295.06 125 Plan Insurance Withheld and 125 Plan reimbursement accts 5,776.76 Pay Period Ending 01/31/03
1
CHECKS ISSUED TO VENDORS $10,000 to $20,000
DEPT
CHECK #
VENDOR
AMOUNT
DESCRIPTION
61st DC
786747
State of Michigan Judges
13,678.84
Judge's Retirement System
Traffic Safety
786769
Consumers Energy
15,240.40
Electricity - Billing Period 1/1/03-1/31/03
Fire
786778
Argus Supply Co
12,606.00
Hazmat Boots (50), (3) Q-Rae Lel, & (1) Portacount Tester & Accessories
Central Stores
786811
Electrical Resources
13,020.00
Inventory - (14) D-MA33-K-60-S8-5-H-PC-MH-BCR-NP-ABG
Fac. Mgmt
786813
DTE Energy
11,594.44
Natural Gas - 12/19/02-1/23/03
Fire
786819
West Shore Fire Inc
16,359.96
Maintenance & Repair and Supplies
Engineering
786827
State of Michigan
12,234.98
Reconstruction of East Paris - 28th & Camelot and Widening of I-196 at US131
2
CHECKS ISSUED TO VENDORS > $20,000
DEPT
CHECK #
VENDOR
AMOUNT
DESCRIPTION
Treasurer
786087
Keeler Brass Co
Traffic Safety
786142
Consumers Energy
143,465.30 Electricity - Billing Period 12/13/02-1/15/03
Motor Equip
786154
Berger Chevrolet
166,230.00 (15) 2003 Chevrolet Cavaliers
LMFP
786160
Proliance Energy LLC
Info. Tech.
786168
Northrop Grumman Inform.
279,624.03 Data Processing Charges for December 2002
Payroll
786203
IMCA Retirement Trust 457
101,571.69 457 Plan Withholding ICMA PPE 01/31/03
Payroll
786213
MISDU
31,481.57 FOC (Friend Of Court) Withholding - MISDU - PPE 01/31/03
Treasurer
786222
GR City Treasurer
69,247.41 Grand Rapids City Withholding- January 2003
Pension
786230
Northern Trust Company
131,847.98 General Pension, Police and Fire Pension Withholdings and Pension Pick-up Credited
PPE 01/31/03
Treasurer
786240
State of Michigan
298,043.74 Michigan Withholding - January 2003
Museum
786369
Quadrimedia LLC
28,650.00 Gift Shop Coordination, Panel & Design, Banners, Design/Layout of Brochures"Summer of Sports 2003" Campaign
Pension
786408
Northern Trust
47,635.14 Employer Pension PPE 2/1/03
Treasurer
Treasurer
786413
786414
County of Kent
County of Kent
Library
786524
Baker & Taylor Inc
43,953.73 Books for Library Circulation
Comm. Dev
786636
Senior Neighbors Inc
20,464.00 Case Management Services, Senior Center Services,Retired Senior Program
Planning
786644
Grand Rapids Area Chamber
of Commerce
39,662.81 To Assist Neighborhood Business Associations and Businesses in the Eligible Service Area
Streets & Sant.
786663
Bell Equipment co
32,641.40 (740) Toter 96 Yd Waste Cart
65,439.82 Refunds of 2002 Summer Property Taxes 12/02 BOR- Ren Zone Qualified
38,468.73 Natural Gas - January 2003
41,233.42 Distribution of State Education Property Tax Collections - 1/17/03-1/31/03
1,294,389.74 Distribution of Kent County 2002 Real & Personal Property Tax Collections 1/17/03-1/31/03
3
CHECKS ISSUED TO VENDORS > $20,000
DEPT
CHECK #
VENDOR
AMOUNT
DESCRIPTION
Attorney
786738
Travelers Indemnity Co
Fire
786744
Motorola Inc
171,406.20 Communications Equipment - Two-Way Radio Receivers, 60% of payment due Shipping
61st DC
786749
State of Michigan
111,778.96 Clearance Fees for the Month of January 2003
61st DC
786751
County of Kent
25,016.01 Judges Retirement System - Funds Collected During the Month of January 2003
Streets & Sant.
786828
Compass Minerals Group
61,672.31 Bulk Salt HWY CRS w/YPS
40,000.00 McCrumb vs. City of Grand Rapids
CHECKS TO BE ISSUED - In Accordance to Admin Policy 69-03 revised 9/2/97
Fiscal
West Michigan Reg. Planning
Commission
8,386.72 2003 Membership Dues for West Michigan Regional Planning Commission
WIRE TRANSFERS
201,749.81
201,749.81
456,840.05
506,895.00
549,295.00
Employer FICA Pay Date 2/11/03
Employee FICA Pay Date 2/11/03
FIT
BCBS Transfer
BCBS Transfer
4
SMALL CLAIMS REPORT
January 2003
Page one
_______________________________________________________________________________________________________________________________________________________________________________________
INCIDENT
CLAIMANT NAME
ADDRESS
CLAIM LOCATION
AMOUNT
EXPLANATION
DATE
_______________________________________________________________________________________________________________________________________________________________________________________
8/1/02
State Farm Ins/Reisner, Kathy
VP03-8006 02-0312
PO Box 4078
18 Rena St SW
Grand Rapids, MI
$
512.06
6/24/02
Downey, Kimberly
VP03-7906 02-0204
5801 Granary Lane
Lansing, MI
Burton Se/Omena Dr
Grand Rapids, MI
$ 1,800.00
Claimant's boat damaged by potholes & sunken roadway.
11/8/02
Mattson, Diane
VP03-8181 GC02-00101
1809 Rossman Ave SE
Grand Rapids, MI
1809 Rossman Ave SE
Grand Rapids, MI
$
168.18
Sewer Backup
9/02 -10/02
Spencer, Edward & Leona
VP03-8179 GC02-00096
1238 Drexel NE
Grand Rapids, MI
1238 Drexel NE
Grand Rapids, MI
$
298.35
Sewer Backup
11/19/02
Hall, Alice
VP03-8180 GC02-00100
2927 Coit NE
Grand Rapids, MI
2927 Coit NE
Grand Rapids, MI
$
340.00
Sewer Backup
10/4/02
Sharrow, Brian
VP03-8182 GC02-00115
26 Fuller SE
Grand Rapids, MI
26 Fuller SE
Grand Rapids, MI
$ 2,269.48
Sewer Backup
4/13/00
Huizenga, Pearl
Vp03-8439 00-0112
2187 Radcliff Ave SE
Grand Rapids, MI
In front of 2181 Radcliff Ave SE
Grand Rapids, MI
$
Claimant tripped on raised sidewalk, smashing face
7/23/02
Davis, Daniel Jr.
VP03-8438 02-0251
100 Gold NW
Grand Rapids, MI
Weston & Commerce
Grand Rapids, MI
$ 1,422.27
Tree covered Stop sign, so it was not visible, Vehicle hit by
other vehicle which ran the stop sign
6/15/02
Slaughter, Robert & Kimberly
VP03-8292 02-0294
2980 Byron Center
Wyoming, MI
Madison Ave/Kenosha
Grand Rapids, MI
$
35.00
Improper Towing
10/30/02
Williams, Steven
VP03-8389 02-0314
1446 36th St
Wyoming, MI
300 Monroe Ave.
Grand Rapids, MI
$
180.00
Refund of licensing fee for snowplowing
9/7/02
Topp, Jon & Keller Ford
VP03-8386 02-0274
3919 Yorkland Dr
Comstock Park, MI
Pearl St/ US 131 Exit
Grand Rapids, MI
$
429.99
Reended by street sweeper
10/8/02
Bouense, Anthony & Eleanore
VP03-8605 02-0306
5796 Leisure Dr.
Grand Rapids, MI
Lake/Fulton
Grand Rapids, MI
$
100.00
City Worker Mowing threw up stone and shattered
passenger window in vehicle
12/9/02
Garmon, Rev. Bruce
VP03-8606 02-0329
3041 Burton Se
Grand Rapids, MI
Eastbrook Mall/E. Beltline
Grand Rapids, MI
$
205.00
Improper Impound
7/23/02
Killebrew, Sharon
VP03-8875 02-0277
506 Emerald Ave NE
Grand Rapids, MI
Commerce/Weston
Grand Rapids, MI
$ 2,775.00
207.53
Claimant's vehicle struck by Police car.
Tree covering Stop Sign caused Vehicle to proceed
through without stopping causing accident
SMALL CLAIMS REPORT
January 2003
Page one
_______________________________________________________________________________________________________________________________________________________________________________________
INCIDENT
CLAIMANT NAME
ADDRESS
CLAIM LOCATION
AMOUNT
EXPLANATION
DATE
_______________________________________________________________________________________________________________________________________________________________________________________
9/2002
Burns, Nancy
VP03-8627 02-0316
342 Fry
Grand Rapids, MI
1210 Travis NE
Grand Rapids, MI
$
82.97
9/12/02
Vazquez, Debora
VP03-8203 02-0292
912 Fairfield NW
Grand Rapids, MI
Leonard east of Covell
Grand Rapids, MI
$
180.00
Sewer Back-Up
Pothole
Police
Impound Lot
Sidewalk Falls
Misc.
TOTAL
$ 3,076.01
$ 1,800.00
$
512,06
$
240.00
$
207.53
$ 5,170.23
$ 11,005.83
Trash Pickup took wheelbarrel
Overspray from putting white lines on street
hit claimants black vehicle.
TO: Chairman,Fiscal Committee
City Commission
FROM: CITY COMPTROLLER - Mr. Stan A. Milanowski
SUBJECT:
EXPENDITURES AUTHORIZED UNDER COMMISSION POLICY 100-06 & CITY MANAGER'S POLICY 69-3
In accordance with Com. Pro. No. 35342, June 10, 1980 and accompanying resolution, you are
advised that the following monthly reports by City officials, Department heads and City
employees were charged to the respective travel for January 2003
CITY OF GRAND RAPIDS TRAVEL REPORT SUMMARY
January 2003
MEALS &
IN-STATE
EXECUTIVE
OUT-STATE
LUNCHES
TRAINING
MONTHLY
YEAR TO
TOTALS
DATE TOTALS
0.00
0.00
726.03
0.00
726.03
336.84
2,630.13
70.97
0.00
3,037.94
27,895.99
0.00
0.00
425.55
0.00
425.55
4,463.38
PUBLIC SAFETY SERVICES
1,343.17
687.76
244.34
11,673.27
13,948.54
115,408.33 *
PUBLIC WORKS SERVICES
225.00
0.00
770.87
1,160.00
2,155.87
36,670.12
HUMAN RESOURCE SERVICES
179.55
0.00
1,328.89
0.00
1,508.44
14,602.02
FISCAL SERVICES
348.00
0.00
8.00
0.00
356.00
7,160.11 *
NEIGHBORHOOD SERVICES
750.00
0.00
682.92
1,914.00
3,346.92
16,330.12 *
0.00
0.00
0.00
0.00
0.00
CULTURAL SERVICES
PLANNING & DEVELOP SERVICES
ADMINISTRATIVE SERVICES
TOTALS $
3,182.56
$
3,317.89
$
4,257.57
$
14,747.27
$
25,505.29
10,902.94 *
466.60
$
233,899.61 *
Revised YTD Totals
*
MONTHLY DETAIL REPORT
JANUARY 2003
M
1
OUT-OF-STATE TRAVEL
CULTURAL SERVICES
Dept Name
Pay Date
Name
Start Date - End Date Location
Amount
LIBRARY
30-JAN-03
BREWER, SOPHIA
12/03/02 - 12/06/02
Cataloging Workshop / Ft Myers Beach FL
$1,448.23
LIBRARY
30-JAN-03
MALLEK, ED
01/16/03 - 01/17/03
Software Training / Atlanta, GA
$1,181.90
Dept Name
Pay Date
Name
Amount
POLICE
03-JAN-03
WU, WHITNEY W
12/08/02 - 12/13/02
$687.76
Page 1
Master Fitness Certification / Dallas, TX
JANUARY 2003
2
IN-STATE TRAVEL
CULTURAL SERVICES
Dept Name
Pay Date
Name
Amount
LIBRARY
02-JAN-03
BLOEM, MARTHA
11/12/02 - 11/12/02
MLC Workshop / Lansing
$90.00
LIBRARY
27-JAN-03
RAZ, ROBERT
01/06/03 - 01/07/03
PLFIG Mtg / Lansing
$151.49
LIBRARY
27-JAN-03
MONTAGUE, MICHELE
10/30/02 - 10/30/02
MLA Annual Conf / Grand Rapids
$95.35
Dept Name
Pay Date
Name
Amount
FISCAL SERVICES
03-JAN-03
KATO, JACKIE
01/13/03 - 01/14/03
$348.00
Dept Name
Pay Date
Name
Amount
HUMAN RESOURCES
03-JAN-03
KING, BARBARA
01/08/03 - 01/08/03
$179.55
Dept Name
Pay Date
Name
Amount
23-JAN-03
LUMAS, EDWARD
01/21/03 - 01/21/03
Metro Bldg Insp workshop / Grand Rapids
$150.00
23-JAN-03
LANGE, DIANE
01/21/03 - 01/21/03
Mid-Winter Workshop / Grand Rapids
$150.00
23-JAN-03
KLEINHEKSEL, JACK
01/21/03 - 01/22/03
$150.00
03-JAN-03
NEIGH SRVCS, ADMIN 2
01/21/03 - 01/21/03
$300.00
Dept Name
Pay Date
Name
Amount
ATTORNEY
25-JAN-03
BAILEY, JANICE
01/07/03 - 01/07/03
Court Hearing / Kalamazoo
$62.95
ATTORNEY
27-JAN-03
BALKEMA, PHILIP
01/17/03 - 01/19/03
MML Session / Shanty Creek
$509.00
FIRE
23-JAN-03
JOHNSON, MARY
10/08/02 - 10/09/02
2002 Summitt / Thompsonville
$771.22
FISCAL SERVICES
Leadership Conf for Women / Grand Rapids
Wages, Hours & Pay / Okemos
Page 2
2
IN-STATE TRAVEL
Dept Name
Pay Date
Name
Amount
TRAFFIC SAFETY
15-JAN-03
TRAFFIC SAFETY, ADMIN 5
01/15/03 - 01/15/03
Stakers Seminar / Grandville
$125.00
WATER SYSTEM
04-JAN-03
WATER, ADMIN 4
01/15/03 - 01/15/03
Stakers Seminar / Grandville
$100.00
Page 3
JANUARY 2003
3
MEALS & LUNCHES
CULTURAL SERVICES
Dept Name
Pay Date
Name
Amount
LIBRARY
03-JAN-03
RAZ, ROBERT
12/24/02 - 12/24/02
Lunch with Building Authority / Grand Rapids
$34.94
LIBRARY
20-JAN-03
RAZ, ROBERT
11/25/02 - 11/25/02
Lunch w/Kazoo Lib Director / Grand Rapids
$36.03
Dept Name
Pay Date
Name
Amount
EXECUTIVE
13-JAN-03
EXECUTIVE, ADMIN
11/18/02 - 11/18/02
Neigh Business Assoc. Banners / Grand Rapids
$27.03
EXECUTIVE
13-JAN-03
EXECUTIVE, ADMIN
12/03/02 - 12/03/02
Commission Strategic Planning Retreat / GR
$681.00
EXECUTIVE
23-JAN-03
DELONG, ERIC
01/20/03 - 01/20/03
Lunch Mtg / Grand Rapids
$18.00
Dept Name
Pay Date
Name
Amount
INCOME TAX
10-JAN-03
VANDERWEST, DON
12/06/02 - 12/06/02
$8.00
Dept Name
Pay Date
Name
Amount
EQUAL OPPORTUNITY
03-JAN-03
EQUAL OPS, ADMIN 25
12/02/02 - 12/02/02
Luncheon Mtg / GR
$242.50
HUMAN RESOURCES
04-JAN-03
HUMAN RESOURCES, ADMIN
12/16/02 - 12/16/02
Employee Recognition Planning Mtg / GR
$115.75
HUMAN RESOURCES
15-JAN-03
12/18/02 - 12/18/02
Strategic Planning HRD Mtg / GR
$949.44
HUMAN RESOURCES
23-JAN-03
12/11/02 - 12/11/02
Safety Mtg / Grand Rapids
$21.20
Dept Name
Pay Date
Name
Amount
10-JAN-03
NEIGH SRVCS, ADMIN
01/08/03 - 01/08/03
Housing Appeals Board / GR
$89.60
23-JAN-03
NEIGH SRVCS, COMM DEV
01/06/03 - 01/06/03
CDCC Mtg / Grand Rapids
$45.47
28-JAN-03
NEIGH SRVCS, COMM DEV
01/08/03 - 01/08/03
RFP Workshop / Grand Rapids
$70.93
EXECUTIVE SERVICES
FISCAL SERVICES
Meeting / Lansing
Page 4
3
MEALS & LUNCHES
Dept Name
Pay Date
Name
Amount
30-JAN-03
NEIGH SRVCS, ZONING 16
01/16/03 - 01/16/03
Zoning Board Mtg / Grand Rapids
$179.60
30-JAN-03
NEIGH SRVCS, ZONING 20
12/05/02 - 12/05/02
Zoning Board Mtg / Grand Rapids
$284.08
PARKS & RECREATION
30-JAN-03
PARKS & REC, ADMIN
01/08/03 - 01/08/03
Advisory Board Mtg / Grand Rapids
$13.24
PLANNING+DEVELOPMENT SERVICES
Dept Name
Pay Date
Name
Amount
PLANNING & DEVELOPMENT
07-JAN-03
OEGEMA, DAN
01/06/03 - 01/06/03
Economic Club of GR / Grand Rapids
$18.00
23-JAN-03
ECONOMIC DEV, ADMIN
01/15/03 - 01/15/03
Econ Dev Committee Mtg / Grand Rapids
$95.85
22-JAN-03
ECONOMIC DEV, ADMIN
01/17/03 - 01/17/03
Smartzone Mtg / Grand Rapids
$22.70
30-JAN-03
PLANNING, ADMIN 15
01/23/03 - 01/23/03
Planning Commission / Grand Rapids
$150.75
30-JAN-03
PLANNING, ADMIN 15
01/09/03 - 01/09/03
Planning Commission / Grand Rapids
$138.25
Dept Name
Pay Date
Name
Amount
POLICE
27-JAN-03
POLICE, ADMIN
01/15/03 - 01/15/03
Weed & Seed and SWAPP Mtg / Grand Rapids
$109.05
POLICE
23-JAN-03
POLICE, ADMIN
01/15/03 - 01/15/03
Senior Mthly Mtg / Grand Rapids
$39.60
POLICE
27-JAN-03
POLICE, ADMIN
11/05/02 - 11/05/02
Grant Mtg / Grand Rapids
$51.70
POLICE
23-JAN-03
POLICE, ADMIN
01/23/03 - 01/23/03
Mediation Agreement Mtg / Grand Rapids
$43.99
Dept Name
Pay Date
Name
Amount
PARKING
03-JAN-03
PARKING, ADMIN
12/30/02 - 12/30/02
Refreshments for Mtg / GR
$45.00
PUBLIC WORKS
15-JAN-03
PUBLIC WORKS, ADMIN
01/06/03 - 01/06/03
Mtg Minority/Majority Contr / Grand Rapids
$140.77
WATER SYSTEM
05-JAN-03
AYERS, ROBERT
01/15/03 - 01/15/03
January Mtg W. MI Assoc of PHCC / GR
$25.00
Page 5
3
MEALS & LUNCHES
Dept Name
Pay Date
Name
Amount
WATER SYSTEM
27-JAN-03
WATER, ADMIN
01/10/03 - 01/10/03
Miss DIG Mtg / Grand Rapids
$12.00
WATER SYSTEM
30-JAN-03
WATER, ADMIN
01/22/03 - 01/28/03
Various Safety Mtgs / Grand Rapids
$54.60
WATER SYSTEM
23-JAN-03
ENVIRO PROTECTION, ADMIN
01/07/03 - 01/07/03
MI Rehab Code Workshop / Grand Rapids
$493.50
Page 6
JANUARY 2003
4
TRAINING
Amount
Dept Name
Pay Date
Name
23-JAN-03
PIERCE, EILEEN
11/08/02 - 11/08/02
Public Records / Grand Rapids
$289.00
03-JAN-03
BUTTS, BILL
01/10/03 - 01/10/03
Housing Rehab Specialist training / Lansing
$725.00
03-JAN-03
FORSYTH, CAROLYN
01/10/03 - 01/10/03
Housing Rehab Specialist Training / Lansing
$725.00
23-JAN-03
BARBOUR, DAVID
01/21/03 - 01/22/03
Mid-Winter Workshop / Grand Rapids, MI
$175.00
Dept Name
Pay Date
Name
Amount
FIRE
21-JAN-03
JOHNSON, MARY
10/21/02 - 11/01/02
Emergency Training / Emmitsurg, Maryland
$335.17
FIRE
03-JAN-03
FIRE, ADMIN 10
06/10/02 - 06/13/02
Structural Collapse Awareness / Grand Rapids
$2,000.00
FIRE
03-JAN-03
SABIN, RON
01/16/03 - 01/17/03
Marplot-Windows / GR
$195.00
FIRE
03-JAN-03
SABIN, RON
01/06/03 - 01/07/03
Cameo-Windows / GR
$195.00
FIRE
27-JAN-03
WITTEVEEN, MIKE
01/16/03 - 01/17/03
Cameo-Windows / Lansing, MI
$195.00
FIRE
31-JAN-03
JOHNSON, MARY
01/13/03 - 01/15/03
Haz Mat Course / Lansing, MI
$312.58
POLICE
23-JAN-03
GOSS, BRIAN
11/10/02 - 11/10/02
Target Haz. Trng / Emmitsburg, Maryland
$99.00
POLICE
13-JAN-03
DYKE, MICHELLE
12/02/02 - 12/13/02
Ai-9 Accident Reconstruction / E Lansing
$1,442.97
POLICE
03-JAN-03
BAKER, PJ
01/14/03 - 01/16/03
PPCT Instructors / Howell, MI
$353.81
POLICE
08-JAN-03
BOWMAN, JOEL
01/14/03 - 01/14/03
PPCT Instructor / Howell, MI
$380.00
POLICE
07-JAN-03
MCWATTERS, PETE
01/14/03 - 01/16/03
PPCT Instructors / Howell
$439.74
POLICE
27-JAN-03
POLICE, OFFICER 6
01/20/03 - 01/22/03
Incident Command/Trng Seminar / Grand Rapids
$3,900.00
POLICE
29-JAN-03
POLICE, OFFICER 3
01/09/03 - 01/09/03
Institute for Healing Racism / Grand Rapids, MI
$600.00
POLICE
23-JAN-03
POLICE, OFFICER 10
09/19/02 - 12/13/02
Institute for Healing Racism / Grand Rapids, MI
$1,225.00
Page 7
4
TRAINING
Dept Name
Pay Date
Name
Amount
WATER SYSTEM
05-JAN-03
WATER, EP 5
01/30/03 - 01/30/03
SECS Training / Grand Rapids
$875.00
WATER SYSTEM
14-JAN-03
MCINTYRE, KENNETH
01/15/03 - 01/15/03
2002 Electrical Code Review / Grand Rapids
$285.00
Page 8
DATE:
February 12, 2003
TO:
Mayor John H. Logie and City Commissioners
FROM:
Albert C. Mooney, City Treasurer
SUBJECT:
TREASURER'S REPORT FOR PERIOD OF
FEBRUARY 6, 2003 TO FEBRUARY 12, 2003
The City Treasurer's Office invested $41,397,000 during the above captioned period. The
funds that were invested are detailed below. Other investment balances during the past week
were invested in the various short-term money market trust funds.
Investment
Flagstar Bank
Treasury Bills
Republic Bank CD’s
Amount
$40,000,000
$907,000
$490,000
Maturity Range
Yield
91 - 119 days
135 days
139 days
1.80%
1.14%
1.40%
Please contact me at ext. 3285 with any questions on this Treasurer's report.
Thank you.
ACM/kg:FC TREASURER’S REPORT CITY COMMISSON 02-18-03.WRD
cc:
Fred Raabe, Deputy City Treasurer
Steve Schmuker, Interim Investment Analyst
DATE:
February 12, 2003
TO:
Eric R. DeLong
Deputy City Manager
FROM:
Susan Shannon
Business Advocate
SUBJECT:
Sale of Vacant Lot – 635 Charles Ave., SE
The attached resolution authorizes the sale of a 22’ x 138’ non-buildable vacant lot identified
as 635 Charles Ave., SE, to Jesse W. Jones Sr., an adjacent property owner. The application
to purchase indicates the proposed use of the site is to combine this non-buildable vacant lot
with the adjoining residence to increase yard space. The other adjacent property owner has
been notified of Mr. Jones’ interest in purchasing this property and has not responded to our
notice. The property is currently zoned R-2. The property is not located within an existing
Renaissance Zone. Mr. Jones has offered Seven Hundred Fifty Dollars ($750.00) for the
property. The conveyance would be by quitclaim deed in a form approved by the City
Attorney’s Office.
Staff is recommending issuance of a quitclaim deed to Jesse W. Jones Sr. and would
appreciate this matter being placed on the agenda of the City Commission.
SS/EWS/kka
Attachment
YOUR COMMUNITY DEVELOPMENT COMMITTEE recommends adoption of the
following resolution authorizing the sale of the City owned property at 635 Charles Ave., SE.
__________________________________________
__________________________________________
__________________________________________
Com.
, supported by Com.
moved adoption of the following resolution:
,
RESOLVED:
1.
That the transfer and conveyance of 635 Charles Ave., SE, legally described as:
Lots 303 & 304 Doran’s Assessor’s Plat No. 10 of part of Blocks 5,
6 and 8 of Remington’s Addition to the City of Grand Rapids,
Kent County, Michigan.
P.P.# 41-14-31-278-042
(commonly known as: 635 Charles Ave., SE)
by quitclaim deed to Jesse W. Jones Sr., a single man, 448 Umatilla SE, Grand Rapids,
MI 49507, for the consideration of Seven Hundred Fifty and xx/100 Dollars ($750.00),
be and is hereby approved, and that the Mayor is authorized to execute said quitclaim
deed to be issued pursuant thereto in a form approved by the City Attorney, and that the
Economic Development Department is hereby authorized and directed to record said
quitclaim deed with the Kent County Register of Deeds.
2.
That the funds from the above sale be deposited with the D.N.R. Properties Fund.
AGEN21203:CD635CharlesAve.,SE
DATE:
February 12, 2003
TO:
Eric DeLong
Deputy City Manager
FROM:
Bill Cole, P.E.
City Engineer
SUBJECT:
Northbend Estates Plat No. 2
The attached resolution provides for final approval of the preliminary plat of Northbend Estates
No. 2, with conditions, located north of Aberdeen Street and east of Fuller Avenue sponsored
by Progressive Developers. The proposed plat has been reviewed and approved by the
Planning Commission and the departments involved. The Planning Commission held a public
hearing on this plat as part of its consideration.
As indicated by Planning Department and Environmental Protection Services Department staff,
one of the conditions of the Planning Commission was to preserve the slopes along the natural
stream channels and wetlands. The grading of other areas within the plat which are required
for roadway or housing purposes would be permitted. Other conditions of the Planning
Commission included that proper soil erosion and sedimentation applications shall be used
to prevent off-site drainage conditions as approved by the Environmental Protection Services
Department, and that the release of building permits be subject to review and approval by the
Environmental Protection Services Department Director regarding sanitary sewer system
capacity.
This plat will contain thirty-four (34) lots, all to be used for construction of single-family homes.
It is to be noted that what was originally Plat No. 3 is now Plat No. 2. The proposed plat can
be adequately serviced with sanitary sewer, storm sewer, and watermain.
BC/WDY/dv
Attachment
cc:
Cortland Overmyer
Don Spencer
Randy Lemoine
Ed Lumas
Bill Hoyt
Val Lazdins
t:\cd03\privdev\northbend plats 2 and 3
021803
#02105
following resolution granting final approval of the preliminary plat of Northbend Estates
No. 2.
______________________________________
______________________________________
______________________________________
Com. _____________________, supported by Com. _____________________, moved to
adopt the following resolution:
RESOLVED:
1.
2.
That final approval of the preliminary plat of Northbend Estates No. 2, prepared by
Exxel Engineering, Inc., dated and stamped by the Secretary of the Planning
Commission on December 12, 2002, revised (plat number sequence) January 17, 2003,
as approved by the Planning Department Director on February 7, 2003, be given in
accordance with Section 120, Act 288, Public Acts of 1967 subject to the following
conditions:
a.
Per the developer’s offer, that a plat restriction be applied that would prevent the
removal and/or disturbance of slopes greater than twenty-five percent within close
proximity of stream channels and wetland areas as delineated on the slope
protection plan and as approved by the City’s Environmental Protection Services
Department and Planning Department.
b.
That proper soil erosion and sedimentation applications shall be used to prevent
off-site drainage conditions on adjacent properties, as approved by the City’s
Environmental Protection Services Department.
c.
That the release of building permits be subject to review and approval by the City’s
Environmental Protection Services Department Director, who shall determine
whether sufficient sanitary sewer system capacity is available to serve the
development as a result of a new lift station serving this area.
That the City Clerk be and is hereby directed to note such final approval of the
preliminary plat upon the copies of the preliminary plat to be returned to the proprietor.
This resolution was prepared by Bill Cole, P.E., City Engineer
t:\cd03\privdev\cd northbend plats 2 and 3
021803
#02105
DATE:
February 12, 2003
TO:
Eric DeLong
Deputy City Manager
FROM:
Bill Cole, P.E.
City Engineer
SUBJECT:
Demolition of Buildings at Various Locations – Contract 2002-2 and
Contract 2003-01
On June 25, 2002 (City Commission Proceeding No. 70100), the City awarded a contract to
H&M Demolition Companies for the demolition of 711 Jackson Street, N.W. (Bid Item C) in
connection with the Demolition of Buildings at Various Locations – Contract 2002-2. The
contract required the contractor to provide the City with Owner’s and Contractor’s Protective
(OCP) liability insurance. The contractor was unable to secure this insurance and has asked
the City to rescind the contract for this demolition work. The attached resolution provides for
rescinding the aforesaid contract with H&M Demolition Companies.
Bids were received on February 6, 2003 for the Demolition of Buildings at Various Locations –
Contract 2003-01, which included two addresses, 711 Jackson Street, N.W. and 755 Liberty
Street, S.W. The low bids received for these addresses are as referenced on the attached
resolution.
The attached resolution also provides for the award of the contracts for the aforesaid
addresses with total expenditures as listed, which covers the costs of the contracts and
includes the costs of administration and the Industrial Hygienist. The costs for these contracts
are being financed by the General Fund.
BC/RDV/dv
Attachment
cc:
James Hurt
John Soper
Alex Thomas
Reviewed by E.O.D.
t:\cd03\bidaward\cd demolition 2003-01
021803
#02106
following resolution rescinding the contract award for the demolition of 711 Jackson Street,
N.W. (Bid Item C) in connection with Demolition of Buildings at Various Locations – Contract
2002-2, Commission Proceeding No. 70100 dated June 25, 2002; and awarding contracts for
Demolition of Buildings at Various Locations – Contract 2003-01.
______________________________________
______________________________________
______________________________________
Com. _____________________, supported by Com. _____________________, moved to
adopt the following resolution:
WHEREAS, It is necessary to rescind the contract award to H&M Demolition
Companies for the demolition of 711 Jackson Street, N.W. (Bid Item C) in connection with
Demolition of Buildings at Various Locations – Contract 2002-2, Commission Proceeding
No. 70100 dated June 25, 2002, due to the contractor’s inability to obtain necessary insurance
coverage; and
WHEREAS, Bids were received on February 6, 2003 for the following project:
Demolition of Buildings at Various Locations –
Contract 2003-01; therefore
RESOLVED:
1.
That the contract award to H&M Demolition Companies for the demolition of 711
Jackson Street, N.W. (Bid Item C) in connection with Demolition of Buildings at Various
Locations – Contract 2002-2, Commission Proceeding No. 70100 dated June 25, 2002,
is hereby rescinded.
2.
That contracts for Demolition of Buildings at Various Locations – Contract 2003-01 be
awarded to the below-named contractor who has submitted the bids shown, with total
expenditures not to exceed the amounts shown, which cover the costs of the contracts,
administration, and the Industrial Hygienist. The total costs of said contracts are to be
charged to Code No. 31106002-820.
BID
ITEM
ADDRESS
CONTRACTOR
LOW
BID
TOTAL
EXPENDITURES
A
B
711 Jackson Street NW
755 Liberty Street SW
Pitsch Wrecking Co.
Pitsch Wrecking Co
$ 5,350
5,500
$ 5,980
5,990
3.
That upon approval by the City Attorney, the Mayor is hereby authorized to execute the
aforesaid contracts on behalf of the City.
4.
That the City Comptroller is hereby authorized and directed to make payment, in
amounts and to said payees, as the City Engineer requests for payment in connection
with the aforesaid contracts.
This resolution was prepared by Bill Cole, P.E., City Engineer
021803
#02106
SUMMARY OF ESTIMATED COSTS
for
Demolition of Buildings at Various Locations –
Contract 2003-01
BID
ITEM
ADDRESS
LOW
BID
HYGIENIST
A
B
$ 5,350
5,500
$ 140
0
021803
#02106
TOTAL
ADMINISTRATION EXPENDITURES
$ 490
490
$ 5,980
5,990
Project: Demolition of Buildings at VARIOUS LOCATIONS - Contract 2003-01
Bids Rec'd 2/6/03 at 11:00 AM at the City Engineer's Office
T:\Bid Tab\02106.xls
ITEM
NO.
A
B
ITEM
UNIT
Lump Sum
Hygienist
hours
Lump Sum
QUAN
1
UNIT PRICE
$
6,000.00
ENGINEER'S
PITSCH
BIERLEIN
ESTIMATE
CO.
COMPANIES
TOTAL
$
6,000.00
UNIT PRICE
$
5,350.00
TOTAL
$
4 hrs
1
$
5,500.00
$
5,500.00
5,350.00
UNIT PRICE
$
12,300.00
TOTAL
$
4 hrs
$
5,500.00
$
5,500.00
12,300.00
4 hrs
$
11,100.00
$
11,100.00
MBE Total
M/WBE - 0%
Burns
Waiver Requested
Item A - 8.4%
Item B - 8.2%
WBE - 0%
Waiver Requested
DATE:
February 12, 2003
TO:
Eric DeLong
Deputy City Manager
FROM:
SUBJECT:
Sale of 530 South Division
Attached is a resolution to be submitted to the City Commission for their approval of a
development agreement for the sale of a two-acre commercial site at 530 South Division to Mr.
Roosevelt Tillman. Mr. Tillman plans to construct a 16,000 square foot retail and commercial
center and create a minimum of 18 jobs at the site. The terms of the agreement include the
following:
Price:
Investment:
Job Creation:
Type of Business:
Facility Design:
Timeline:
Performance Bond:
$140,000 payable at closing
$700,000 in building and site development
18 jobs paying $7.30 per hour
Family Dollar plus other retail and office space
Preliminary design meets standards established in RFP. Final
site plan to be approved by the City’s Planning Director
Facility construction - Fall 2003
Job creation – December 2004
$267,500
As you know, the City obtained a $750,000 loan from the Michigan Economic Development
Corporation to acquire properties in order to assemble this site and the American Laundry
site one block south. Ninety percent of the loan ($675,000) can be converted to a grant on
the basis of $20,000 for each job created by December 17, 2004. A performance bond will
be held until construction is complete and the jobs are created in accordance with our
agreement with MEDC.
Nineteen parcels were assembled and remediated to create this development site in the
City’s South Division Renaissance Zone. I am pleased on behalf of the entire Economic
Vitality Team to bring forward this valuable and model urban development project for City
Commission approval.
SS/saw
Attachment
1/31/03 RAW
North
YOUR COMMITTEE OF THE WHOLE recommends the adoption of the following
resolution approving and authorizing the execution of Purchase and Development Agreement
related to property located at 530 South Division Avenue.
Com. __________________, supported by Com. ____________________ moved
adoption of the following resolution:
WHEREAS, the City owns certain property at 530 South Division Avenue known as the
American Laundry North site (the "Property") which it assembled, cleared, improved and
remedied for redevelopment for industrial and/or commercial uses; and
WHEREAS, the City formally sought proposals for the purchase and redevelopment of
the Property and Roosevelt Tillman, the member of Tillman Development LLC ("Tillman"),
responded to the request for proposals; and
GRAPIDS 61291-32 133157
WHEREAS, the City and Tillman have negotiated the terms of the purchase and
redevelopment of the Property and the City is willing to sell the Property and Tillman is willing
to purchase the Property subject to the terms of a Purchase and Development Agreement (the
"Agreement").
RESOLVED, that the City sell the Property to Tillman for $140,000 subject to the terms
and conditions contained in the Agreement.
FURTHER RESOLVED, that the Agreement in the form presented at this meeting is
approved with such minor modifications as are not materially adverse to the City and as shall be
approved as to content by the City Manager and as to form by the City Attorney or special
counsel.
FURTHER RESOLVED, that the Mayor and City Clerk are authorized and directed to
execute the Agreement for and on behalf of the City.
FURTHER RESOLVED, that all resolutions or parts of resolutions in conflict herewith
shall be and the same are rescinded.
Prepared by:
Richard A. Wendt
Dickinson Wright PLLC
Suite 900
200 Ottawa Avenue, N.W.
Grand Rapids, Michigan 49503
(616) 458-1300
-3GRAPIDS 61291-32 133157
PURCHASE AND DEVELOPMENT AGREEMENT
THIS PURCHASE AND DEVELOPMENT AGREEMENT (the "Agreement") made
and entered into this ___ day of _____________, 2003, by and between the CITY OF GRAND
RAPIDS, a Michigan municipal corporation (the "City"), with offices at 300 Monroe Avenue,
N.W., Grand Rapids, Michigan 49503 and TILLMAN DEVELOPMENT LLC, a Michigan
limited liability company ("Tillman"), with offices at Suite 200, 1001 South Division Avenue,
Grand Rapids, Michigan 49507.
RECITALS
A.
The City owns certain real property identified and described on the attached
Exhibit A (the "Property") which it assembled, cleared, improved and remediated for
redevelopment for industrial and/or commercial uses.
B.
The City formally sought proposals for the purchase and redevelopment of the
Property and Tillman responded to the request for proposals for the Property.
C.
The City and Tillman have negotiated the terms of the purchase and development
of the Property and the City is willing to sell the Property and Tillman is willing to purchase the
Property subject to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the terms and agreements contained in this
Agreement and the benefits to be derived therefrom, receipt of which is severally acknowledged,
the City and Tillman hereby agree as follows:
Section 1. Offer and Acceptance. The City agrees to sell to Tillman and Tillman
agrees to purchase from the City the Property for the Purchase Price (as hereinafter defined) and
upon the other terms and conditions set forth in this Agreement. Such offer and acceptance are
subject to, and in accordance with, the terms and conditions set forth herein.
Section 2. Purchase Price. The Purchase Price for the Property shall be One Hundred
Forty Thousand Dollars ($140,000) (the "Purchase Price"). Tillman shall pay the City at the
Closing (as hereinafter defined) the Purchase Price less a credit of Five Thousand Dollars
($5,000) (the "Deposit"), i.e., One Hundred Thirty-Five Thousand Dollars ($135,000) (the
"Adjusted Purchase Price").
Section 3. Evidence of Title. As evidence of title to the Property, the City shall at its
cost, as soon as practical after execution of this Agreement by both parties, furnish or cause to be
furnished to Tillman:
a.
A commitment dated subsequent to the date of this Agreement for issuance of an
ALTA fee owner's policy of title insurance (which insurance policy is to be issued at the Closing
(as hereinafter defined) or as soon as practical thereafter) with standard exceptions in the amount
of the Purchase Price of the Property, which commitment shall be issued by a title insurance
-4GRAPIDS 61291-32 133157
company acceptable to Tillman, in which the title company shall agree to insure title in the
condition required herein as marketable title subject to those building and use restrictions,
easements and other restrictions of record and that are set forth in this Agreement which shall
not, in Tillman's sole discretion, interfere with Tillman's use of the Property for a commercial
and retail center. The City shall at its cost, at the time of the Closing, order or cause to be
ordered an owner's policy of title insurance from the title insurance company pursuant to the
commitment for prompt delivery to Tillman.
b.
A current survey of the Property certified to Tillman and the title insurance
company by a registered land surveyor, which survey shall show (i) the legal description of the
Property, (ii) the exact location of all recorded easements on or servicing the Property, and (iii)
the total square feet of the Property.
Within 15 days after receiving both the title insurance commitment and the survey,
Tillman shall notify the City of any objections to the title to the Property, including any matters
of survey which render the Property unsuitable for the use for which it is intended by Tillman,
i.e., a commercial and retail center. The City shall have 15 days from the date it is notified in
writing of the particular defects claimed either to remedy the defect or defects or to terminate this
Agreement if, after using its best effort to do so, the City is unable to remedy the defect or
defects; provided, that Tillman may elect to waive any defect or defects and proceed with the
purchase subject thereto. If the City remedies the defect or defects within the time specified, or
Tillman elects to waive such defect or defects, Tillman agrees to complete the purchase within 5
days after written notification thereof notwithstanding the provisions of Section 15 hereof. If the
City is unable to remedy the defect or defects within the time specified, this Agreement may be
terminated by Tillman, the Deposit shall be returned to Tillman by the City and neither party
hereto shall have any further obligation or liability hereunder to the other party.
Section 4. Possession of Property. Possession of the Property shall be delivered by the
City to Tillman on the Closing Date (as hereinafter defined).
Section 5. Representations and Warranties of City. The City represents and warrants
to Tillman as of the date of this Agreement and as of the Closing Date (as hereinafter defined)
which warranties and representations shall survive the Closing (as hereinafter defined) as
follows:
a.
The City has good and marketable fee simple title to the Property subject however
to a certain Declaration of Restrictive Covenants executed by the City, dated as of March 29,
2001, and recorded with the Kent County Register of Deeds at liber 5419 page 231 on May 17,
2001 (the "Restrictive Covenant"). There are no special assessments or similar charges currently
existing with respect to the Property nor is there an option to purchase, right of first refusal to
purchase or agreement for sale and purchase of all or any portion of the Property to any person or
entity other than Tillman.
b.
No party is in possession of all or any portion of the Property, whether as a lessee
or tenant at sufferance.
-5GRAPIDS 61291-32 133157
c.
The City is not a "foreign person" as defined in Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder, and the City
will furnish to Tillman, at the Closing (as hereinafter defined) an appropriate affidavit to this
effect.
d.
No work has been performed or is in the process or contemplated at the Property,
and no materials have been or are to be furnished to the Property which might provide the basis
for mechanics' and/or materialmen's liens, or other liens against all or any portion of the
Property.
e.
To the best of the City's knowledge there are no undisclosed obligations or
agreements of the City affecting the Property and there are no actions, suits or proceedings
pending or threatened against or related to the City or all or any portion of the Property in any
court or before any federal, state, county or municipal department, commission, board, agency or
other governmental instrumentality which, if successful, would prevent the City from completing
the sale of the Property or would restrict or prevent the intended use of the Property by Tillman
as the location for a commercial and retail center.
The foregoing representations and warranties shall be continuing and shall be true and
correct on and as of the Closing Date (as hereinafter defined) with the same force and effect as if
made on that date, and all such representations and warranties shall survive the Closing (as
hereinafter defined).
Section 6. Representations and Warranties of Tillman. Tillman represents and
warrants to the City as of the date of this Agreement and as of the Closing Date (as hereinafter
defined) which warranties and representations shall survive the Closing (as hereinafter defined)
as follows:
a.
Tillman is a Michigan limited liability company and has all power to execute this
Agreement, consummate the transactions hereby and undertake the obligations contained herein
and this Agreement constitutes a binding and enforceable obligation of Tillman. The person
signing this Agreement is authorized to execute this Agreement for and on behalf of Tillman in
accordance with the terms of this Agreement.
b.
The performance of the obligations of Tillman under this Agreement will not
violate any contract, indenture, mortgage, law, ordinance, judicial or administrative order or
judgment applicable to Tillman.
c.
To the best of Tillman's knowledge, there is no pending or threatened litigation or
administrative proceeding against or involving Tillman, and Tillman does not know of any
reason to know of any grounds for any such litigation or proceeding which could have an adverse
impact on the City or the City's interest in this Agreement.
d.
In entering into this Agreement, Tillman has not relied upon any written or verbal
representations made by the City or any representative of the City regarding the Property or any
aspect of this Agreement which are not expressly set forth in this Agreement.
-6GRAPIDS 61291-32 133157
made on that date, and all such representations shall survive the Closing (as hereinafter defined).
Section 7. Inspection and Investigation of Property by Tillman. Tillman
acknowledges that pursuant to the Option it has had the opportunity to review certain
information regarding the Property provided by the City including environmental reports that
included specifically the Restrictive Covenant. Tillman further acknowledges that it and its
agents have inspected and investigated or have caused to be inspected and investigated all
aspects and conditions of the Property as it deems necessary or desirable to determine the
suitability of the Property for use by it. Tillman understands and acknowledges that the Property
contained and may still contain environmentally hazardous materials; that the City along with the
Michigan Department of Environmental Quality ("MDEQ") have been involved in the
remediation of the Property; and that any development and use of the Property must comply with
the Restrictive Covenant.
Section 8. Environmental Condition of Property. Tillman acknowledges that the City
has made no representations regarding the environmental condition of the Property including the
compliance with applicable environmental laws.
Section 9. Condition Precedent to Closing on the Property. The obligation of the
City to proceed to sell the Property to Tillman shall be conditioned upon the following
conditions precedent:
a.
All of Tillman's representations contained in this Agreement shall be true and
correct as of this date and as of the Closing Date (as hereinafter defined) and Tillman shall not,
on the Closing Date, have failed to satisfy, observe or perform under the terms and conditions of
this Agreement.
b.
Tillman providing the City a performance bond or letter of credit in accordance
with the provisions of Section 24 hereof.
The obligation of Tillman to proceed to acquire the Property shall be conditioned upon
each of the following conditions precedent:
a.
The title and survey provisions of Section 3 hereof shall have been satisfied.
b.
At the Closing, the City shall have delivered the documents listed in Section 10
hereof.
c.
All of the City's representations contained in this Agreement shall be true and
correct as of this date and as of the Closing Date and the City shall not, on the Closing Date,
have failed to satisfy, observe or perform under the terms and conditions of this Agreement.
-7GRAPIDS 61291-32 133157
Section 10. Documents to be Furnished by City on Closing Date. On the Closing
Date (as hereinafter defined) the City shall deliver to Tillman the following documents:
a.
A quit-claim deed to the Property in recordable form.
b.
A real estate transfer valuation affidavit executed by the City in the form
prescribed by the Kent County Register of Deeds for determining the amount of transfer tax
payable, if any, with respect to the conveyance of the Property to Tillman, such transfer tax, if
any, to be payable by Tillman.
c.
Any other document reasonably requested by Tillman, provided that no such other
requested document shall create any liability of the City or increase any liability of the City
created by any other document.
Section 11. Obligations of the City Prior to Closing. During the period commencing
on the date of this Agreement and ending on the Closing Date (as hereinafter defined), the City
shall:
a.
Agreement.
Maintain the Property in substantially the same condition as on the date of this
b.
Not enter into any agreement, lease, use, occupancy arrangement, easement or
other agreement with respect to all or any portion of the Property without Tillman's prior written
consent.
c.
Not create, grant or accept any option to purchase, right of first refusal,
installment sale agreement or other agreement for the leasing or sale of all or any portion of the
Property without Tillman's prior written consent.
d.
Not create or suffer any right, claim, lien or encumbrance of any kind whatsoever
on all or any portion of the Property which would bind Tillman as the City's successor.
e.
Maintain the Property in compliance with all laws, statutes, ordinances, rules and
regulations applicable thereto.
Section 12. Damage or Condemnation. In the event that prior to the Closing (as
hereinafter defined) the Property suffers damage by natural elements or other causes or any part
of the Property is taken pursuant to any power of eminent domain, the City shall immediately
notify Tillman of such occurrence, and either the City or Tillman may terminate this Agreement
by written notice to the other within 7 days after the date of the damage or the taking. Upon such
termination the City shall return the Deposit to Tillman. If neither elects to terminate this
Agreement, there shall be no reduction in the Purchase Price and at the Closing the City shall
assign to Tillman whatsoever rights the City may have with respect to any insurance proceeds or
eminent domain.
-8GRAPIDS 61291-32 133157
Section 13. Remedies Upon Default. If prior to Closing (as hereinafter defined),
Tillman or the City discover that any representation or warranty of the other contained in this
Agreement is false or misleading, or in the event either party fails to perform any covenant,
agreement or obligation to be kept or performed by it under this Agreement, the other party may
terminate this Agreement (which shall include return of the Deposit in the event default by the
City and termination by Tillman) or enforce specific performance of this Agreement, in addition
to any other remedy available by law or equity.
Section 14. Property Taxes. The Property is included within a renaissance zone
established pursuant to the provision of the Michigan Renaissance Zone Act, Act 376 of the
Public Acts of Michigan of 1996, as amended, and therefore there are no ad valorem property
taxes that will be due and payable on the Property or a lien upon the Property on the Closing
Date.
Section 15. Closing on Property. Tillman and the City shall close the purchase of the
Property (the "Closing") within 30 days after the date appearing in the first paragraph of this
Agreement (the "Closing Date"). If the City is ready and willing to complete the Closing by the
Closing Date, and Tillman shall fail to close either at its election or its failure to meet the
prerequisites to Closing set forth in this Agreement, the City shall retain the Deposit and this
Agreement shall terminate and neither party shall have any further obligations hereunder. If
Tillman is ready and willing to complete the Closing by the Closing Date and the City shall at its
election fail to close, this Agreement shall terminate, the City shall return the Deposit and neither
party shall have any further obligations hereunder. The Closing shall take place at the offices of
Dickinson Wright PLLC, 200 Ottawa Avenue, N.W., Suite 900, Grand Rapids, Michigan, or
such other location as is mutually acceptable to the City and Tillman.
Section 16. Closing Costs. Tillman shall pay the cost of recording the quit-claim deed
conveying the Property to it and for all documentary, intangible, transfer and other taxes, if any,
with respect to the quit claim deed. Tillman shall also be responsible for the cost of all soil
borings and other tests, studies or environmental assessments it elects to perform or have
performed with respect to the Property. The City shall pay the premium for an ALTA fee
owner's policy of title insurance in the amount of the Purchase Price and the cost of a survey to
be provided pursuant to Section 3.
Section 17. Land Divisions. The City agrees to grant to Tillman at Closing the right to
make all divisions under Section 108(2), (3) and (4) of the Michigan Land Division Act, Act 591
of the Public Acts of Michigan of 1996, as amended.
Section 18. Condition of Property. Notwithstanding anything herein to the contrary,
Tillman acknowledges and agrees that the City has made no warranty or representation
whatsoever with respect to the nature, type, extent, condition, size, use or any other aspect of the
Property other than as may be expressly set forth in this Agreement. Furthermore, Tillman has
the right to inspect the Property and the City's records relevant thereto, and shall continue to have
the right to inspect the Property and such records until Closing. Accordingly, Tillman when
acquiring the Property is acquiring it "as is, where is" confirming that it is fully familiar with the
condition of the Property including specifically those matters contained in the Restrictive
-9GRAPIDS 61291-32 133157
Covenant, Tillman having satisfied itself concerning all aspects of the Property by investigating
the same, and will not rely upon facts, information, statements or other communications supplied
or furnished by the City except for the warranties and representations expressly set forth in
Section 5 hereof.
Section 19. Broker's Fees. The City and Tillman each represent and warrant to the
other that there has been no involvement of any real estate broker in any of the transactions
described in this Agreement. Each party shall indemnify and hold the other party harmless with
respect to the claims of any real estate broker who may have dealt with such party in connection
with the transactions described herein.
Section 20. Time of the Essence. Time is of the essence in this Agreement and,
therefore, all dates and terms shall be strictly adhered to unless waived in writing by the parties
hereto.
Section 21. Development of Property. Upon Closing of the Property Tillman shall
develop the Property by constructing on the Property a commercial and retail center (the
"Center") of not less than 16,000 square feet to be substantially complete no later than December
17, 2004. The Center shall have a minimum initial capital investment (exclusive of the Purchase
Price of the Property) of $700,000 and shall be constructed in compliance with all applicable
laws, ordinances, rules and regulations including specifically the zoning laws of the City.
Further, the Center shall be constructed so as to meet the design standards set forth in Exhibit B
attached hereto as shall be finally approved in writing before the commencement of construction
by the City's Planning Director.
Section 22. Creation of Jobs. Tillman shall create or cause the creation of 18 full-time
jobs paying at least $7.30 per hour at the Center. Said jobs shall be new to the State of Michigan
(the "State") and each such job shall be created on or before December 17, 2004, and shall exist
for a minimum of 180 consecutive days after their creation. Jobs transferred from another
location within the State or construction jobs related to the construction of the Center shall not be
credited to the job creation requirements of this Section 22.
Section 23. Compliance with MSF Loan Agreement. Tillman acknowledges that the
City is a party to a certain Loan Agreement dated as of December 18, 1998, between the City and
the Michigan Strategic Fund (the "MSF") and that it has been provided with a copy of the Loan
Agreement.
Section 2.8 of the Loan Agreement requires the City to annually certify to the MSF jobs
created and hours worked at businesses located at the Property including wage and other
information reasonably requested by the MSF. Tillman agrees to cooperate with and assist the
City in making this annual certification including providing or causing to be provided
employment records of businesses located at Property.
Section 3.5 of the Loan Agreement requires that businesses located on the Property
acquire and maintain certain insurance. Tillman agrees to acquire and maintain or cause to be
acquired and maintained insurance as required by said Section 3.5 of the Loan Agreement.
-10GRAPIDS 61291-32 133157
Tillman further agrees to cooperate with and assist the City in its required compliance
with any other terms and conditions of the Loan Agreement.
Section 24. Guarantee of Performance. Tillman agrees to guaranty its obligation to
develop the Property pursuant to Section 21 hereof and to create jobs pursuant to Section 22
hereof by delivering to the City at the Closing a performance bond or letter of credit in favor of
the City in the amount of $267,500 in a form acceptable to the City (the "Security Instrument").
The Security Instrument shall be in effect through June 17, 2005. The Security Instrument shall
be reduced at the written direction of both the City and Tillman by $70,000 to $197,500 at the
time Tillman has completed construction of the Center, been issued a "certificate of occupancy,"
and demonstrated to the City it has made a capital investment of not less than $700,000
(exclusive of the Purchase price of the Property) at the Property including the Purchase Price
paid for the Property. Further, for every new job created pursuant to and meeting the
requirements of Section 22 hereof, the Security Instrument shall be reduced at the written
direction of both the City and Tillman by $11,000. After the reductions, if any, in amount of the
Security Instrument in accordance with the preceding two sentences, the City shall on June 17,
2005, be entitled to claim or draw down the balance of the Security Instrument and apply to the
amounts the City is required to pay the MSF pursuant to the Loan Agreement or use it for any
other lawful purpose as determined by the City Commission.
Section 25. Non-Discrimination and Affirmative Action. Tillman agrees not to
discriminate against any employee or applicant for employment to be employed in the
performance of any of Tillman's obligations under this Agreement, with respect to hire, tenure,
terms, conditions or privileges of employment, or any matter directly or indirectly related to
employment, because of race, color, religion, national origin, age, sex, height, weight or marital
status. Tillman agrees to require similar provisions from any subcontractors.
Breach of this covenant may be regarded as a material breach of this Agreement as
provided in the Michigan Civil Rights Act, Act 453 of the Public Acts of Michigan of 1976, as
amended.
Tillman further agrees to take affirmative action in hiring, training and promoting
minority group persons and women to bring about reasonably representative integration of their
employees. For purposes hereof minority includes:
a.
Black – all persons having origins in any of the Black African racial groups not of
Hispanic origin;
b.
Hispanic – all persons of Mexican, Puerto Rican, Cuban, Central or South
American or other Spanish culture or origin, regardless of race;
c.
Asian and Pacific Islander – all persons having origins in any of the original
peoples of the Far East, Southeast Asia, Indian Subcontinent or the Pacific Islands; and
-11GRAPIDS 61291-32 133157
d.
American Indian or Alaskan Nature – all persons having origins in any of the
original peoples of North American and maintaining identifiable tribal affiliations through
membership and participation or community identification.
Tillman further agrees to review or examine with the City relevant employment data and
other information pertaining to its hiring practices. Tillman further agrees that it will require
similar covenants from all contractors and subcontractors related to the construction of the
Center.
Section 26. General Authorization of Tillman and City. Tillman represents and
warrants it is a Michigan limited liability company and has all the necessary power to execute
this Agreement, consummate the transactions hereby and undertake the obligations contained
herein and this Agreement constitutes a binding and enforceable obligation of Tillman. The
person signing this Agreement is authorized to execute this Agreement for and on behalf of
Tillman in accordance with the terms of this Agreement.
The City represents and warrants that it is a Michigan municipal corporation and home
rule city pursuant to the Home Rule Cities Act, Act 279 of the Public Acts of Michigan of 1909,
as amended, and has all the necessary power to execute this Agreement and consummate the
transactions contemplated hereby and this Agreement constitutes the binding and enforceable
obligations of the City. The Mayor and City Clerk are authorized to execute this Agreement for
and on behalf of the City and to bind the City in accordance with the terms of this Agreement.
Section 27. Binding Effect and Assignment. This Agreement shall bind the parties and
their respective heirs, successors and assigns. No party to this Agreement may assign all or any
of its rights or obligations hereunder without the written consent of the other party.
Section 28. Survival of Agreement. This Agreement shall not be merged into any
instrument or document executed and delivered at Closing, but shall survive the Closing and the
representations, warranties, covenants and obligations herein shall remain in full force and effect.
Section 29. Notices. All notices or other communications hereunder shall be sufficiently
given and shall be deemed given when dispatched by regular, registered or certified mail,
postage prepaid, or by hand delivery, addressed or delivered as follows:
If to the City:
300 Monroe Avenue, N.W.
Attention: City Manager
If to Tillman:
Tillman Development LLC
Suite 200
1001 South Division Avenue
Grand Rapids, Mic higan 49507
Attention: Roosevelt Tillman
-12GRAPIDS 61291-32 133157
The parties hereto may, by notice given hereunder, designate any further or different
address to which subsequent notices or other communications may be sent.
Section 30. Governing Laws. This Agreement shall be construed in all respects in
accordance with the laws of the State of Michigan.
Section 31. No Third Parties. Nothing in this Agreement, expressed or implied, is
intended to confer upon any person, other than the parties hereto, and their respective heirs,
successors or permitted assigns any rights or remedies whatsoever.
Section 32. Captions. The captions or headings of this Agreement are for convenience
only and in no way define, limit or describe the scope or intent of any provision or section of this
Agreement.
Section 33. Entire Agreement. This Agreement constitutes the entire agreement
between the parties and there are no representations, warranties, promises, guarantees or
agreements, oral or written, expressed or implied, between the parties hereto with respect to this
Agreement.
Section 34. Amendments. This Agreement may not be amended, changed, modified,
altered, assigned or terminated without the written consent of the City and Tillman.
Section 35. Exhibits. All exhibits hereto are incorporated herein as though fully stated
herein.
Section 36. Waiver. No waiver of any of the provisions of this Agreement shall be
deemed or constitute a waiver of any other provision, whether or not similar, nor shall any
waiver be a continuing waiver. No waiver shall be binding unless executed in writing by the
party mailing the waiver.
Section 37. Effective Date. The effective date of this Agreement shall be the date
indicated in the first paragraph hereof.
IN WITNESS WHEREOF, the City and Tillman have caused these presents to be
signed as of the date and year first written above.
By:
John H. Logie, Mayor
Attest:
Mary Therese Hegarty, City Clerk
-13GRAPIDS 61291-32 133157
TILLMAN DEVELOPMENT LLC
By:
Roosevelt Tillman, Member
-14GRAPIDS 61291-32 133157
EXHIBIT A
Legal Description of Property
530 Division Ave., S
Lot 29 of the Amended Plat of Lots 1 through 25 and all of the adjoining North
and South vacated alley known locally as Cody Court Alley, and all of adjoining
Cody Place (both existing and vacated and known locally as Cody Court), all part
of Barnhart Subdivision of part of Block 2 of Blakeley’s Addition to the City of
Grand Rapids, Part of the Northwest fractional 1/4 of Section 31, Town 7 North,
Range 11 West, City of Grand Rapids, Kent County, Michigan, as recorded in
Liber 115 of Plats, Pages 45 and 46, Kent Count Records, also described as:
Commencing at the Northwest corner of said Section 31; thence S02°25'24" E
along the West line of said Section 1064.61 feet; thence S 89°37'33" E 50.06 feet
to the Northwest corner of said Lot 29 and the Point of Beginning of this
description; thence S 89°37'33" E 267.31 feet along the North line of said Lot 29,
said line also being the South line of Buckley Street (64 feet wide); thence S
02°07'45" E 350.85 feet along the Easterly line of said Lot 29; thence N 89°37'06"
W 70.00 feet along the South line of said Lot 29; thence N 02°07'46" W 20.00
feet along the East line of Buckley Street Alley (20 feet wide); thence N
89°37'06" W 20.00 feet along the North line of Buckley Street Alley; thence N
02°07'46" W 20.00 feet; thence N 89°37'06" W 20.00 feet; thence S 02°07'46" E
20.00 feet; thence N 89°37'06" W 155.56 feet along the South line of said Lot 29,
said line also being the North line of Buckley Street Alley, to the Southwest
corner of said Lot 29; thence N 02°25'24" W 330.90 feet along the West line of
said Lot 29, said line also being the East line of Division Avenue (83 feet wide) to
the place of Beginning.
A-1
GRAPIDS 61291-32 133157
EXHIBIT B
Design Standards
Building(s):
•
Proposed building(s) should orient toward Division Avenue.
•
Setback from Division Avenue should be minimal and should be in close proximity to the
right-of-way line.
•
Any office or customer related activities within a building should be located near the
front and should also be oriented toward Division Avenue.
•
Parking should be located at the side or rear of a building and should be screened from
Division Avenue with a low (30"-36") architectural wall or landscape hedge and from
abutting property by appropriate measures.
•
Service areas should be located at the side or rear of a building and should be well
screened from view by appropriate structural or landscaped components.
•
Facades that face onto Division Avenue should be designed to have windows and clearly
identified building entrances; blank facades facing onto Division Avenue will not be
permitted.
•
All sides of a building must be finished; brick, architectural masonry united or pre-cast
panels are the preferred exterior material.
Landscape/Site Design:
•
The public realm of a building should be a well-landscaped, appropriately illuminated,
safe and inviting.
•
Chain link or barbed wire fences along Division Avenue will not be permitted.
•
Decorative security fencing is permitted if it is set back from the right-of-way line at least
15 feet.
•
All frontages along public rights-of-way should be landscaped, including street trees with
a minimum 3-1/2" caliper.
•
Neighborhood enhancements, i.e., sidewalk, streetscape improvements, decorative
lighting, trees, etc.
•
All utility and service equipment should be carefully located and/or screened to minimize
objectionable views from public streets.
A-2
GRAPIDS 61291-32 133157
DATE:
February 12, 2003
TO:
Eric DeLong
Deputy City Manager
FROM:
SUBJECT:
Sale of 630 South Division
Attached is a resolution to be submitted to the City Commission for their approval of a
development agreement for the sale of the former American Laundry site at 630 South Division
to Mr. Roosevelt Tillman. Mr. Tillman plans to construct an 18,000 square foot light
manufacturing facility and create a minimum of 18 jobs at the site. The terms of the agreement
include the following:
Price:
Investment:
Job Creation:
Type of Business:
Facility Design:
Timeline:
Performance Bond:
$160,000 payable at closing
$700,000 in building and site development
18 jobs paying $7.30+ per hour
Manufacturing molds for the surgical instrument industry
Preliminary design meets standards established in RFP. Final
site plan to be approved by the City’s Planning Director
Facility construction - Fall 2003
Job creation – December 2004
$347,500
As you know, the City obtained a $750,000 loan from the Michigan Economic Development
Corporation to acquire properties in order to assemble this site and another one block
north. Ninety percent of the loan ($675,000) can be converted to a grant on the basis of
$20,000 for each job created by December 17, 2004. A performance bond will be held until
construction is complete and the jobs are created in accordance with an agreement with
MEDC.
It has taken six years and nearly $2,000,000 to assemble and remediate these South
Division properties, which have been a blight on the neighborhood for a number of years. I
am pleased on behalf of the entire Economic Vitality Team to bring forward this valuable
and model urban development project for City Commission approval.
SS/saw
Attachment
1/30/03 RAW
South
YOUR COMMITTEE OF THE WHOLE recommends the adoption of the following
resolution approving and authorizing the execution of Purchase and Development Agreement
related to property located at 630 South Division Avenue.
Com.__________________, supported by Com. ______________________, moved
adoption of the following resolution:
WHEREAS, the City owns certain property at 630 South Division Avenue known as the
American Laundry South site (the "Property") which it assembled, cleared, improved and
remedied for redevelopment for industrial and/or commercial uses; and
WHEREAS, the City formally sought proposals for the purchase and redevelopment of
the Property; Roosevelt Tillman, the sole shareholder of Tillman Industries Incorporated
("Tillman"), responded to the request for proposals; and the City and Roosevelt Tillman entered
into an Option Agreement dated July 17, 2002, with respect to the Property; and
GRAPIDS 61291-16 131330v02
WHEREAS, the City and Tillman have negotiated the terms of the purchase and
redevelopment of the Property and the City is willing to sell the Property and Tillman is willing
to purchase the Property subject to the terms of a Purchase and Development Agreement (the
"Agreement").
RESOLVED, that the City sell the Property to Tillman for $160,000 subject to the terms
and conditions contained in the Agreement.
FURTHER RESOLVED, that the Agreement in the form presented at this meeting is
approved with such minor modifications as are not materially adverse to the City and as shall be
approved as to content by the City Manager and as to form by the City Attorney or special
counsel.
FURTHER RESOLVED, that the Mayor and City Clerk are authorized and directed to
execute the Agreement for and on behalf of the City.
FURTHER RESOLVED, that all resolutions or parts of resolutions in conflict herewith
shall be and the same are rescinded.
Prepared by:
Richard A. Wendt
Dickinson Wright PLLC
Suite 900
200 Ottawa Avenue, N.W.
(616) 458-1300
-3GRAPIDS 61291-16 131330v02
PURCHASE AND DEVELOPMENT AGREEMENT
THIS PURCHASE AND DEVELOPMENT AGREEMENT (the "Agreement") made
and entered into this ___ day of _____________, 2003, by and between the CITY OF GRAND
RAPIDS, a Michigan municipal corporation (the "City"), with offices at 300 Monroe Avenue,
N.W., Grand Rapids, Michigan 49503 and TILLMAN INDUSTRIES INCORPORATED, a
Michigan corporation ("Tillman"), with offices at Suite 200, 1001 South Division Avenue,
Grand Rapids, Michigan 49507.
RECITALS
A.
The City owns certain real property identified and described on the attached
Exhibit A (the "Property") which it assembled, cleared, improved and remediated for
redevelopment for industrial and/or commercial uses.
B.
The City formally sought proposals for the purchase and redevelopment of the
Property; Roosevelt Tillman, the sole shareholder of Tillman, responded to the request for
proposals for the Property; and the City and Tillman entered into an Option Agreement dated
July 17, 2002 (the "Option"), with respect to the Property.
C.
The City and Tillman have negotiated the terms of the purchase and development
of the Property and the City is willing to sell the Property and Tillman is willing to purchase the
Property subject to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the terms and agreements contained in this
Agreement and the benefits to be derived therefrom, receipt of which is severally acknowledged,
the City and Tillman hereby agree as follows:
Section 1. Offer and Acceptance. The City agrees to sell to Tillman and Tillman
agrees to purchase from the City the Property for the Purchase Price (as hereinafter defined) and
upon the other terms and conditions set forth in this Agreement. Such offer and acceptance are
subject to, and in accordance with, the terms and conditions set forth herein.
Section 2. Purchase Price. The Purchase Price for the Property shall be One Hundred
Sixty Thousand Dollars ($160,000) (the "Purchase Price"). Tillman shall pay the City at the
Closing (as hereinafter defined) the Purchase Price less a credit of Five Thousand Dollars
($5,000) (the "Option Amount") paid by Tillman to the City at the time of entering into the
Option, i.e., One Hundred Fifty-Five Thousand Dollars ($155,000) (the "Adjusted Purchase
Price").
Section 3. Evidence of Title. As evidence of title to the Property, the City shall at its
cost, as soon as practical after execution of this Agreement by both parties, furnish or cause to be
furnished to Tillman:
a.
A commitment dated subsequent to the date of this Agreement for issuance of an
ALTA fee owner's policy of title insurance (which insurance policy is to be issued at the Closing
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(as hereinafter defined) or as soon as practical thereafter) with standard exceptions in the amount
of the Purchase Price of the Property, which commitment shall be issued by a title insurance
company acceptable to Tillman, in which the title company shall agree to insure title in the
condition required herein as marketable title subject to those building and use restrictions,
easements and other restrictions of record and that are set forth in this Agreement which shall
not, in Tillman's sole discretion, interfere with Tillman's use of the Property for an industrial
manufacturing facility. The City shall at its cost, at the time of the Closing, order or cause to be
ordered an owner's policy of title insurance from the title insurance company pursuant to the
commitment for prompt delivery to Tillman.
b.
A current survey of the Property certified to Tillman and the title insurance
company by a registered land surveyor, which survey shall show (i) the legal description of the
Property, (ii) the exact location of all recorded easements on or servicing the Property, and (iii)
the total square feet of the Property.
Within 15 days after receiving both the title insurance commitment and the survey,
Tillman shall notify the City of any objections to the title to the Property, including any matters
of survey which render the Property unsuitable for the use for which it is intended by Tillman,
i.e., an industrial manufacturing facility. The City shall have 15 days from the date it is notified
in writing of the particular defects claimed either to remedy the defect or defects or to terminate
this Agreement if, after using its best effort to do so, the City is unable to remedy the defect or
defects; provided, that Tillman may elect to waive any defect or defects and proceed with the
purchase subject thereto. If the City remedies the defect or defects within the time specified, or
Tillman elects to waive such defect or defects, Tillman agrees to complete the purchase within 5
days after written notification thereof notwithstanding the provisions of Section 15 hereof. If the
City is unable to remedy the defect or defects within the time specified, this Agreement may be
terminated by Tillman, the Option Amount shall be returned to Tillman by the City and neither
party hereto shall have any further obligation or liability hereunder to the other party.
Section 4. Possession of Property. Possession of the Property shall be delivered by the
City to Tillman on the Closing Date (as hereinafter defined).
Section 5. Representations and Warranties of City. The City represents and warrants
to Tillman as of the date of this Agreement and as of the Closing Date (as hereinafter defined)
which warranties and representations shall survive the Closing (as hereinafter defined) as
follows:
a.
The City has good and marketable fee simple title to the Property subject however
to a certain Declaration of Restrictive Covenants executed by the City, dated as of March 29,
2001, and recorded with the Kent County Register of Deeds at liber 5419 page 231 on May 17,
2001 (the "Restrictive Covenant"). There are no special assessments or similar charges currently
existing with respect to the Property nor is there an option to purchase, right of first refusal to
purchase or agreement for sale and purchase of all or any portion of the Property to any person or
entity other than Tillman.
b.
No party is in possession of all or any portion of the Property, whether as a lessee
or tenant at sufferance.
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c.
The City is not a "foreign person" as defined in Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder, and the City
will furnish to Tillman, at the Closing (as hereinafter defined) an appropriate affidavit to this
effect.
d.
No work has been performed or is in the process or contemplated at the Property,
and no materials have been or are to be furnished to the Property which might provide the basis
for mechanics' and/or materialmen's liens, or other liens against all or any portion of the
Property.
e.
To the best of the City's knowledge there are no undisclosed obligations or
agreements of the City affecting the Property and there are no actions, suits or proceedings
pending or threatened against or related to the City or all or any portion of the Property in any
court or before any federal, state, county or municipal department, commission, board, agency or
other governmental instrumentality which, if successful, would prevent the City from completing
the sale of the Property or would restrict or prevent the intended use of the Property by Tillman
as the location for an industrial manufacturing facility.
made on that date, and all such representations and warranties shall survive the Closing (as
hereinafter defined).
Section 6. Representations and Warranties of Tillman. Tillman represents and
warrants to the City as of the date of this Agreement and as of the Closing Date (as hereinafter
defined) which warranties and representations shall survive the Closing (as hereinafter defined)
as follows:
a.
Tillman is a Michigan corporation and has all power to execute this Agreement,
consummate the transactions hereby and undertake the obligations contained herein and this
Agreement constitutes a binding and enforceable obligation of Tillman. The person signing this
Agreement is authorized to execute this Agreement for and on behalf of Tillman in accordance
with the terms of this Agreement.
b.
The performance of the obligations of Tillman under this Agreement will not
violate any contract, indenture, mortgage, law, ordinance, judicial or administrative order or
judgment applicable to Tillman.
c.
To the best of Tillman's knowledge, there is no pending or threatened litigation or
administrative proceeding against or involving Tillman, and Tillman does not know of any
reason to know of any grounds for any such litigation or proceeding which could have an adverse
impact on the City or the City's interest in this Agreement.
d.
In entering into this Agreement, Tillman has not relied upon any written or verbal
representations made by the City or any representative of the City regarding the Property or any
aspect of this Agreement which are not expressly set forth in this Agreement.
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made on that date, and all such representations shall survive the Closing (as hereinafter defined).
Section 7. Inspection and Investigation of Property by Tillman. Tillman
acknowledges that pursuant to the Option it has had the opportunity to review certain
information regarding the Property provided by the City including environmental reports that
included specifically the Restrictive Covenant. Tillman further acknowledges that it and its
agents have inspected and investigated or have caused to be inspected and investigated all
aspects and conditions of the Property as it deems necessary or desirable to determine the
suitability of the Property for use by it. Tillman understands and acknowledges that the Property
contained and may still contain environmentally hazardous materials; that the City along with the
Michigan Department of Environmental Quality ("MDEQ") have been involved in the
remediation of the Property; and that any development and use of the Property must comply with
the Restrictive Covenant.
Section 8. Environmental Condition of Property. Tillman acknowledges that the City
has made no representations regarding the environmental condition of the Property including the
compliance with applicable environmental laws.
Section 9. Condition Precedent to Closing on the Property. The obligation of the
City to proceed to sell the Property to Tillman shall be conditioned upon the following
conditions precedent:
a.
All of Tillman's representations contained in this Agreement shall be true and
correct as of this date and as of the Closing Date (as hereinafter defined) and Tillman shall not,
on the Closing Date, have failed to satisfy, observe or perform under the terms and conditions of
this Agreement.
b.
Tillman providing the City a performance bond or letter of credit in accordance
with the provisions of Section 24 hereof.
The obligation of Tillman to proceed to acquire the Property shall be conditioned upon
each of the following conditions precedent:
a.
The title and survey provisions of Section 3 hereof shall have been satisfied.
b.
At the Closing, the City shall have delivered the documents listed in Section 10
hereof.
c.
All of the City's representations contained in this Agreement shall be true and
correct as of this date and as of the Closing Date and the City shall not, on the Closing Date,
have failed to satisfy, observe or perform under the terms and conditions of this Agreement.
Section 10. Documents to be Furnished by City on Closing Date. On the Closing
Date (as hereinafter defined) the City shall deliver to Tillman the following documents:
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a.
A quit-claim deed to the Property in recordable form.
b.
A real estate transfer valuation affidavit executed by the City in the form
prescribed by the Kent County Register of Deeds for determining the amount of transfer tax
payable, if any, with respect to the conveyance of the Property to Tillman, such transfer tax, if
any, to be payable by Tillman.
c.
Any other document reasonably requested by Tillman, provided that no such other
requested document shall create any liability of the City or increase any liability of the City
created by any other document.
Section 11. Obligations of the City Prior to Closing. During the period commencing
on the date of this Agreement and ending on the Closing Date (as hereinafter defined), the City
shall:
a.
Agreement.
Maintain the Property in substantially the same condition as on the date of this
b.
Not enter into any agreement, lease, use, occupancy arrangement, easement or
other agreement with respect to all or any portion of the Property without Tillman's prior written
consent.
c.
Not create, grant or accept any option to purchase, right of first refusal,
installment sale agreement or other agreement for the leasing or sale of all or any portion of the
Property without Tillman's prior written consent.
d.
Not create or suffer any right, claim, lien or encumbrance of any kind whatsoever
on all or any portion of the Property which would bind Tillman as the City's successor.
e.
Maintain the Property in compliance with all laws, statutes, ordinances, rules and
regulations applicable thereto.
Section 12. Damage or Condemnation. In the event that prior to the Closing (as
hereinafter defined) the Property suffers damage by natural elements or other causes or any part
of the Property is taken pursuant to any power of eminent domain, the City shall immediately
notify Tillman of such occurrence, and either the City or Tillman may terminate this Agreement
by written notice to the other within 7 days after the date of the damage or the taking. Upon such
termination the City shall return the Option Amount to Tillman. If neither elects to terminate
this Agreement, there shall be no reduction in the Purchase Price and at the Closing the City shall
assign to Tillman whatsoever rights the City may have with respect to any insurance proceeds or
eminent domain.
Section 13. Remedies Upon Default. If prior to Closing (as hereinafter defined),
Tillman or the City discover that any representation or warranty of the other contained in this
Agreement is false or misleading, or in the event either party fails to perform any covenant,
agreement or obligation to be kept or performed by it under this Agreement, the other party may
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terminate this Agreement (which shall include return of the Option Amount in the event default
by the City and termination by Tillman) or enforce specific performance of this Agreement, in
addition to any other remedy available by law or equity.
Section 14. Property Taxes. The Property is included within a renaissance zone
established pursuant to the provision of the Michigan Renaissance Zone Act, Act 376 of the
Public Acts of Michigan of 1996, as amended, and therefore there are no ad valorem property
taxes that will be due and payable on the Property or a lien upon the Property on the Closing
Date.
Section 15. Closing on Property. Tillman and the City shall close the purchase of the
Property (the "Closing") within 30 days after the date appearing in the first paragraph of this
Agreement (the "Closing Date"). If the City is ready and willing to complete the Closing by the
Closing Date, and Tillman shall fail to close either at its election or its failure to meet the
prerequisites to Closing set forth in this Agreement, the City shall retain the Option Amount and
this Agreement shall terminate and neither party shall have any further obligations hereunder. If
Tillman is ready and willing to complete the Closing by the Closing Date and the City shall at its
election fail to close, this Agreement shall terminate, the City shall return the Option Amount
and neither party shall have any further obligations hereunder. The Closing shall take place at
the offices of Dickinson Wright PLLC, 200 Ottawa Avenue, N.W., Suite 900, Grand Rapids,
Michigan, or such other location as is mutually acceptable to the City and Tillman.
Section 16. Closing Costs. Tillman shall pay the cost of recording the quit-claim deed
conveying the Property to it and for all documentary, intangible, transfer and other taxes, if any,
with respect to the quit claim deed. Tillman shall also be responsible for the cost of all soil
borings and other tests, studies or environmental assessments it elects to perform or have
performed with respect to the Property. The City shall pay the premium for an ALTA fee
owner's policy of title insurance in the amount of the Purchase Price and the cost of a survey to
be provided pursuant to Section 3.
Section 17. Land Divisions. The City agrees to grant to Tillman at Closing the right to
make all divisions under Section 108(2), (3) and (4) of the Michigan Land Division Act, Act 591
of the Public Acts of Michigan of 1996, as amended.
Section 18. Condition of Property. Notwithstanding anything herein to the contrary,
Tillman acknowledges and agrees that the City has made no warranty or representation
whatsoever with respect to the nature, type, extent, condition, size, use or any other aspect of the
Property other than as may be expressly set forth in this Agreement. Furthermore, Tillman has
the right to inspect the Property and the City's records relevant thereto, and shall continue to have
the right to inspect the Property and such records until Closing. Accordingly, Tillman when
acquiring the Property is acquiring it "as is, where is" confirming that it is fully familiar with the
condition of the Property including specifically those matters contained in the Restrictive
Covenant, Tillman having satisfied itself concerning all aspects of the Property by investigating
the same, and will not rely upon facts, information, statements or other communications supplied
or furnished by the City except for the warranties and representations expressly set forth in
Section 5 hereof.
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Section 19. Broker's Fees. The City and Tillman each represent and warrant to the
other that there has been no involvement of any real estate broker in any of the transactions
described in this Agreement. Each party shall indemnify and hold the other party harmless with
respect to the claims of any real estate broker who may have dealt with such party in connection
with the transactions described herein.
Section 20. Time of the Essence. Time is of the essence in this Agreement and,
therefore, all dates and terms shall be strictly adhered to unless waived in writing by the parties
hereto.
Section 21. Development of Property. Upon Closing of the Property Tillman shall
develop the Property by constructing on the Property a manufacturing facility (the "Facility") of
not less than 20,000 square feet to be substantially complete no later than December 17, 2004.
The Facility shall have a minimum initial capital investment (exclusive of the Purchase Price of
the Property) of $700,000 and shall be constructed in compliance with all applicable laws,
ordinances, rules and regulations including specifically the zoning laws of the City. Further, the
Facility shall be constructed so as to meet the design standards set forth in Exhibit B attached
hereto as shall be finally approved in writing before the commencement of construction by the
City's Planning Director.
Section 22. Creation of Jobs. Tillman shall create or cause the creation of 18 full-time
jobs paying at least $7.30 per hour at the Facility. Said jobs shall be new to the State of
Michigan (the "State") and each such job shall be created on or before December 17, 2004, and
shall exist for a minimum of 180 consecutive days after their creation. Jobs transferred from
another location within the State or construction jobs related to the construction of the Facility
shall not be credited to the job creation requirements of this Section 22.
Section 23. Compliance with MSF Loan Agreement. Tillman acknowledges that the
City is a party to a certain Loan Agreement dated as of December 18, 1998, between the City and
the Michigan Strategic Fund (the "MSF") and that it has been provided with a copy of the Loan
Agreement.
Section 2.8 of the Loan Agreement requires the City to annually certify to the MSF jobs
created and hours worked at businesses located at the Property including wage and other
information reasonably requested by the MSF. Tillman agrees to cooperate with and assist the
City in making this annual certification including providing or causing to be provided
employment records of businesses located at Property.
Section 3.5 of the Loan Agreement requires that businesses located on the Property
acquire and maintain certain insurance. Tillman agrees to acquire and maintain or cause to be
acquired and maintained insurance as required by said Section 3.5 of the Loan Agreement.
Tillman further agrees to cooperate with and assist the City in its required compliance
with any other terms and conditions of the Loan Agreement.
Section 24. Guarantee of Performance. Tillman agrees to guaranty its obligation to
develop the Property pursuant to Section 21 hereof and to create jobs pursuant to Section 22
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hereof by delivering to the City at the Closing a performance bond or letter of credit in favor of
the City in the amount of $347,500 in a form acceptable to the City (the "Security Instrument").
The Security Instrument shall be in effect through June 17, 2005. The Security Instrument shall
be reduced at the written direction of both the City and Tillman by $70,000 to $277,500 at the
time Tillman has completed construction of the Facility, been issued a "certificate of occupancy,"
and demonstrated to the City it has made a capital investment of not less than $700,000
(exclusive of the Purchase Price of the Property) at the Property. Further, for every new job
created pursuant to and meeting the requirements of Section 22 hereof, the Security Instrument
shall be reduced at the written direction of both the City and Tillman by $15,420. After the
reductions, if any, in amount of the Security Instrument in accordance with the preceding two
sentences, the City shall on June 17, 2005, be entitled to claim or draw down the balance of the
Security Instrument and apply to the amounts the City is required to pay the MSF pursuant to the
Loan Agreement or use it for any other lawful purpose as determined by the City Commission.
Section 25. Non-Discrimination and Affirmative Action. Tillman agrees not to
discriminate against any employee or applicant for employment to be employed in the
performance of any of Tillman's obligations under this Agreement, with respect to hire, tenure,
terms, conditions or privileges of employment, or any matter directly or indirectly related to
employment, because of race, color, religion, national origin, age, sex, height, weight or marital
status. Tillman agrees to require similar provisions from any subcontractors.
Breach of this covenant may be regarded as a material breach of this Agreement as
provided in the Michigan Civil Rights Act, Act 453 of the Public Acts of Michigan of 1976, as
amended.
Tillman further agrees to take affirmative action in hiring, training and promoting
minority group persons and women to bring about reasonably representative integration of their
employees. For purposes hereof minority includes:
a.
Black – all persons having origins in any of the Black African racial groups not of
Hispanic origin;
b.
Hispanic – all persons of Mexican, Puerto Rican, Cuban, Central or South
American or other Spanish culture or origin, regardless of race;
c.
Asian and Pacific Islander – all persons having origins in any of the original
peoples of the Far East, Southeast Asia, Indian Subcontinent or the Pacific Islands; and
d.
American Indian or Alaskan Nature – all persons having origins in any of the
original peoples of North American and maintaining identifiable tribal affiliations through
membership and participation or community identification.
Tillman further agrees to review or examine with the City relevant employment data and
other information pertaining to its hiring practices. Tillman further agrees that it will require
similar covenants from all contractors and subcontractors related to the construction of the
Facility.
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Section 26. General Authorization of Tillman and City. Tillman represents and
warrants that it is a Michigan corporation and has all the necessary power to execute this
Agreement, consummate the transactions hereby and undertake the obligations contained herein
and this Agreement constitutes a binding and enforceable obligation of Tillman. The person
signing this Agreement is authorized to execute this Agreement for and on behalf of Tillman in
accordance with the terms of this Agreement.
The City represents and warrants that it is a Michigan municipal corporation and home
rule city pursuant to the Home Rule Cities Act, Act 279 of the Public Acts of Michigan of 1909,
as amended, and has all the necessary power to execute this Agreement and consummate the
transactions contemplated hereby and this Agreement constitutes the binding and enforceable
obligations of the City. The Mayor and City Clerk are authorized to execute this Agreement for
and on behalf of the City and to bind the City in accordance with the terms of this Agreement.
Section 27. Binding Effect and Assignment. This Agreement shall bind the parties and
their respective successors and assigns. No party to this Agreement may assign all or any of its
rights or obligations hereunder without the written consent of the other party.
Section 28. Survival of Agreement. This Agreement shall not be merged into any
instrument or document executed and delivered at Closing, but shall survive the Closing and the
representations, warranties, covenants and obligations herein shall remain in full force and effect.
Section 29. Notices. All notices or other communications hereunder shall be sufficiently
given and shall be deemed given when dispatched by regular, registered or certified mail,
postage prepaid, or by hand delivery, addressed or delivered as follows:
If to the City:
300 Monroe Avenue, N.W.
Attention: City Manager
If to Tillman:
Tillman Industries Incorporated
Suite 200
1001 South Division Avenue
Attention: President
The parties hereto may, by notice given hereunder, designate any further or different
address to which subsequent notices or other communications may be sent.
Section 30. Governing Laws. This Agreement shall be construed in all respects in
accordance with the laws of the State of Michigan.
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Section 31. No Third Parties. Nothing in this Agreement, expressed or implied, is
intended to confer upon any person, other than the parties hereto, and their respective successors
or permitted assigns any rights or remedies whatsoever.
Section 32. Captions. The captions or headings of this Agreement are for convenience
only and in no way define, limit or describe the scope or intent of any provision or section of this
Agreement.
Section 33. Entire Agreement. This Agreement constitutes the entire agreement
between the parties and there are no representations, warranties, promises, guarantees or
agreements, oral or written, expressed or implied, between the parties hereto with respect to this
Agreement.
Section 34. Amendments. This Agreement may not be amended, changed, modified,
altered, assigned or terminated without the written consent of the City and Tillman.
Section 35. Exhibits. All exhibits hereto are incorporated herein as though fully stated
herein.
Section 36. Waiver. No waiver of any of the provisions of this Agreement shall be
deemed or constitute a waiver of any other provision, whether or not similar, nor shall any
waiver be a continuing waiver. No waiver shall be binding unless executed in writing by the
party mailing the waiver.
Section 37. Effective Date. The effective date of this Agreement shall be the date
indicated in the first paragraph hereof.
IN WITNESS WHEREOF, the City and Tillman have caused these presents to be
signed as of the date and year first written above.
By:
John H. Logie, Mayor
Attest:
Mary Therese Hegarty, City Clerk
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TILLMAN INDUSTRIES INCORPORATED
By:
Roosevelt Tillman, President
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EXHIBIT A
Legal Description of Property
630 Division Ave., S.
Lot 1253 of the Amended Plat of Lots 192 through 203 and Lots 205 through 208,
and adjoining vacated Cornwall Avenue, all part of "Doran’s Assessor’s Plat No.
7 of part of Blocks 1 and 4 of Withey’s Addition to the City of Grand Rapids, and
the vacated North 1/2 of the East 110.57 feet of the 24 foot wide East and West
Alley currently known as Haifley Street, in said Block 1 of said Withey’s
Addition, all part of the Northwest Fractional 1/4 of Section 31, Town 7 North,
Liber 115 of Plats, Pages 43 and 44, Kent County Records, also described as:
Commencing at the West 1/4 corner of said Section 31; thence N 02°25'24" W
along the West line of said Section and the West line of said Withey’s Addition,
as recorded in Liber 1 of Plats on Page 85, 848.19 feet; thence N 89°51'08" E
50.04 feet to the Southwest corner of said Assessor’s Plat and the Point of
Beginning of this Description, said point also being the Southwest corner of said
Lot 1253; thence N 02°25'24" W 189.00 feet along the West line of said Lot
1253, said line also being the East line of Division Avenue (83 feet wide); thence
S 89°32'48" E 241.58 feet along the North line of said Lot 1253, said line also
being the South line of Pleasant Street (57 feet wide); thence S 02°17'39" E
120.00 feet; thence S 89°32'48" E 43.84 feet; thence S 02°13'10" E 65.98 feet to
the Southeast corner of said Lot 1253; thence S 89°51'08" W 284.78 feet along
the South line of said Lot 1253, said line also being the North line of Lot 11 of the
Amended Plat of the West 17 feet of Lot 1 and all of Lots 2 through 9 of Block 1,
and all of the adjoining vacated alleys of Block 1, except the North 1/2 of the East
110.57 feet of the vacated 24 foot wide East and West Alley currently known as
Haifley Street, all part of Withey’s Addition to the City of Grand Rapids part of
the Northwest fractional 1/4 of Section 31, Town 7 North, Range 11 West, City of
Grand Rapids, Kent County, Michigan, as recorded in Liber 115 of Plats, Pages
41 and 42, Kent County Records, to the point of Beginning.
And also, Lot 11 of the Amended Plat of the West 17 feet of Lot 1 and all of Lots
2 through 9 of Block 1, and all of the adjoining vacated alleys of Block 1, except
the North 1/2 of the East 110.57 feet of the vacated 24 foot wide East and West
Alley currently known as Haifley Street, all part of Withey’s Addition to the City
of Grand Rapids part of the Northwest fractional 1/4 of Section 31, Town 7 North,
Liber 115 of Plats, Pages 41 and 42, Kent County Records, also described as:
Commencing at the West 1/4 corner of said Section 31; thence N 02°25'24" W
along the West line of said Section and the West line of said Withey’s Addition
560.48 feet; thence N 89°57'54" E 50.05 feet to the Southwest corner of said Lot
11 and the Point of Beginning of this Description; thence N 02°25'24" W 287.81
feet along the West line of said Lot 11, said line also being the East line of
Division Avenue (83 feet wide); thence N 89°51'08" E 284.78 feet along the
North line of said Lot 11, said line also being the South line of Lot 1253 of the
A-1
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Amended Plat of Lots 192 through 203 and Lots 205 through 208, and adjoining
vacated Cornwall Avenue, all part of "Doran’s Assessor’s Plat No. 7" of part of
Blocks 1 and 4 of Withey’s Addition to the City of Grand Rapids, and the vacated
North 1/2 of the East 110.57 feet of the 24 foot wide East and West Alley
currently known as Haifley Street, in said Block 1 of said Withey’s Addition, all
part of the Northwest Fractional 1/4 of Section 31, Town 7 North, Range 11 West,
City of Grand Rapids, Kent County, Michigan, as recorded in Liber 115 of Plats,
Pages 43 and 44, Kent County Records; thence S 02°13'10" E 12.01 feet; thence
N 89°51'08" E 6.42 feet; thence S 02°18'03" E 184.18 feet; thence S 89°54'30" W
44.42 feet; thence S 02°18'03" E 92.12 feet; thence S 89°57'54" W 246.16 feet
along the South line of said Lot 11, said line also being the North line of
Sycamore Street (66 feet wide) to the point of Beginning.
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EXHIBIT B
Design Standards
Building(s):
•
Proposed building(s) should orient toward Division Avenue.
•
Setback from Division Avenue should be minimal and should be in close proximity to the
right-of-way line.
•
Any office or customer related activities within a building should be located near the
front and should also be oriented toward Division Avenue.
•
Parking should be located at the side or rear of a building and should be screened from
Division Avenue with a low (30"-36") architectural wall or landscape hedge and from
abutting property by appropriate measures.
•
Service areas should be located at the side or rear of a building and should be well
screened from view by appropriate structural or landscaped components.
•
Facades that face onto Division Avenue should be designed to have windows and clearly
identified building entrances; blank facades facing onto Division Avenue will not be
permitted.
•
All sides of a building must be finished; brick, architectural masonry united or pre-cast
panels are the preferred exterior material.
Landscape/Site Design:
•
The public realm of a building should be a well-landscaped, appropriately illuminated,
safe and inviting.
•
Chain link or barbed wire fences along Division Avenue will not be permitted.
•
Decorative security fencing is permitted if it is set back from the right-of-way line at least
15 feet.
•
All frontages along public rights-of-way should be landscaped, including street trees with
a minimum 3-1/2" caliper.
•
Neighborhood enhancements, i.e., sidewalk, streetscape improvements, decorative
lighting, trees, etc.
•
All utility and service equipment should be carefully located and/or screened to minimize
objectionable views from public streets.
A-3
GRAPIDS 61291-16 131330v02
DATE:
February 12, 2003
TO:
Eric R. DeLong
Deputy City Manager
FROM:
Susan Shannon
Business Advocate
SUBJECT:
Information for Public Hearing to Consider Establishment of an
Obsolete Property Rehabilitation District Under P.A. 146 – Pinnacle
Ventures LLC/Pinnacle Construction Group
The City Commission has established February 18, 2003 at 2:00 p.m. as the time to consider
establishing an Obsolete Property Rehabilitation District under P.A. 146 for the following:
Pinnacle Construction Group, 560 Fifth St. NW is an architectural and construction company
that is considering the use of a portion of 1010 Front Ave. NW. They are interested in the brick
vacant building at the rear of property, which was used formerly as a warehouse.
The project would involve the complete reconstruction of the building to convert it into office
space.
The building is a 9,100-sq. feet, single story, masonry structure with a wood frame roof. The
building requires insulation, new roof, windows, heating and cooling systems, electrical
service, floor replacement, masonry repair, reconstruction and then finished for office space.
Pinnacle is in the process of estimating the cost of the project. Pinnacle Ventures, L.L.C. will
lease the property to Pinnacle Construction. The construction company currently employs 15
and is expecting to create three to five new jobs.
SS/DSO/kka
Attachment
T:EconDev:Alc:Oeg:PH-OPRD

City Commission Agenda

Transcription

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