ADOPTED - February 24, 1998

Agenda Item No. 12

Introduced by the Law & Courts, Administrative Services/Personnel and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN INGHAM COUNTY AND

THE CITY OF LANSING TO CONSTRUCT A CONSOLIDATED COURTS FACILITY

IN DOWNTOWN LANSING

RESOLUTION #98-45

WHEREAS, pursuant to statute and by agreement, Ingham County and the City of Lansing share the cost of providing a suitable place for holding of the 30th Judicial Circuit Court within the City of Lansing; and

WHEREAS, the County and City have historically shared in the provision of facilities within the City of Lansing, with the City providing space within its City Hall, and the City and the County sharing the costs of leasing space at Town Center; and

WHEREAS, as part of these shared costs, the City has paid for the utilities and maintained the facilities within Lansing City Hall, and shared equally in the cost of lease payments at Town Center; and

WHEREAS, the costs to the City and County associated with providing for facilities at Town Center have been partially offset by the County's equal sharing of state reimbursement with the City for facility costs associated with operation of the Court of Claims; and

WHEREAS, the County has historically paid for the cost of furnishings associated with payments for the operation of the Court at all locations; and

WHEREAS, Ingham County and the City of Lansing agree that it is in the best interests of their citizens, and of the employees and public who access the Court, to provide facilities which are safe and convenient to all who use them.

THEREFORE BE IT RESOLVED, that Ingham County and the City of Lansing agree to provide facilities for the 30th Judicial Circuit Court in the following manner:

A. Construction, Renovation, and Parking

1) The County and City agree to the construction of an approximate 100,000 square foot courts building on County-owned land at 303 W. Kalamazoo Street within the City of Lansing; to the renovation of the existing Grady Porter Building to the extent that renovations are necessary to provide facilities for Circuit Court, including the Family Court Division of Circuit Court; and to the provision of parking at and adjacent to the Grady Porter Building and at the South Capitol Avenue Parking Ramp (THE PROJECT).

ADOPTED - February 24, 1998

Agenda Item No. 12

RESOLUTION #98-45

2) THE PROJECT will include architectural and engineering services, construction, renovation, and parking as necessary to provide 9 courtrooms and associated security and prisoner holding areas for the Circuit Court, including the Family Court Division of Circuit Court, plus office space for Circuit Court administration & court clerks, pretrial services; jury administration; and a law library.

3) It is currently estimated that parking for 500 is required to be provided as part of THE PROJECT. It is estimated that of the 500 parking spaces, 266 will be available on site, including the parking lot at Kalamazoo and Walnut Streets and below grade secured parking. Subject to the terms of this resolution, the additional parking (currently estimated to be 234 spaces) will be provided by the City at its sole expense at the South Capitol Avenue Parking Ramp. In the event that 266 spaces are not available on site, the balance necessary to equal 500 (or other number which may be required), up to an aggregate maximum of 300 spaces, will be provided by the City at the South Capitol Avenue Parking Ramp. Of the spaces to be provided by the City, 100 shall initially be reserved spaces. The reserved amount may be increased or decreased at the discretion of the County to a maximum of 300, to accommodate increased numbers of employees and jurors occupying the two buildings or to other needs related to the efficient operation of the courts.

4) In addition to THE PROJECT, the County may, at its sole discretion and expense, authorize renovations to the Grady Porter Building which address the needs of the Probate Court, Prosecutor, and Friend of the Court. The County may also, at its sole discretion and expense, authorize the purchase of furnishings necessary for the use of the new and renovated space by the Courts, Prosecutor, and Friend of the Court.

5) Final design and budget for THE PROJECT will be approved by both the County and City prior to any construction or financing being started.

B. Cost Sharing and Financing

6) The total cost of THE PROJECT will be split equally between the County and City. Based upon the current estimate of $22 million, the County's share is estimated to be $11 million and the City's share is estimated to be $11 million.

7) Of the County's share, $470,000 is included as the value of the 2 acres of land upon which THE PROJECT is located. Of the City's share, $4 million is included as the value of the estimated 234 spaces of off-site parking which is to be provided for the use of the project tenants and visitors subject to the terms of this resolution. The actual amount included for parking shall be prorated depending on the actual number of spaces approved in the final design and budget. The balance of the County's and City's share (estimated at $10.5 million and $7 million respectively) may be provided by the respective entities in cash, from cash on hand or from the proceeds of debt instruments.

8) THE PROJECT shall be financed, constructed, and operated by a Joint Building Authority, to be created by the governing bodies of the County and City no later than April 1, 1998. The Authority shall be limited in its construction authority to, at a maximum, the building size, location, and project budget as mutually agreed

ADOPTED - February 24, 1998

Agenda Item No. 12

RESOLUTION #98-45

between the County and the City. The County and City shall both enter into a lease with the Building Authority pledging their respective obligations.

9) To the extent that the State of Michigan, in fulfillment of its responsibilities to reimburse Ingham County for Court of Claims and State Litigation expenses, makes a lump sum appropriation towards construction of THE PROJECT, the amount appropriated shall be equally credited to the County and City. To the extent that the State reimburses Ingham County for a share of principal and interest payments or ongoing building operational expenses related to THE PROJECT in fulfillment of its responsibilities for the Court of Claims and state litigation, that amount shall be equally credited to the County and City's debt obligation. To the extent that the

State of Michigan adopts new legislation which may provide a new source of reimbursement from the State for financing, construction, or ongoing building operational costs incurred relative to THE PROJECT, the County and City agree to meet to negotiate potential changes to this agreement consistent with the intent of the new legislation.

10) Financing of the Project will not take place until approval to proceed has been given by both the County and the City.

C. Operational expenses

11) The costs of utilities, property insurances, and any assessments or fees attributable to the renovated Grady Porter Building shall be paid by the County.

12) The costs of repairs and maintenance attributable to the renovated Grady Porter Building shall be paid by the County.

13) The costs of utilities, property insurances, and any assessments or fees attributable to the new building constructed as part of THE PROJECT shall be split equally between the County and City, and shall be authorized as specified in the lease documents.

14) The costs of repairs and maintenance related to the new building constructed as part of THE PROJECT and to on-site parking shall be split equally between the County and City, and shall be authorized as specified in the lease documents.

15) The County shall pay to the City the customary fees for leasing the reserved spaces at the South Capitol Avenue Parking Ramp (initially 100 spaces). The County shall not be charged any more than the City would charge any other customer leasing that number of spaces on a long term basis. The County will have no other financial responsibility for maintenance or repair of the spaces provided at the South Capitol Avenue Ramp pursuant to this agreement.

16) The balance of the spaces provided at the South Capitol Avenue Ramp pursuant to this agreement shall be subject to customary parking fees charged to users by the City.

ADOPTED - February 24, 1998

Agenda Item No. 12

RESOLUTION #98-45

17) Future changes to the new building which require funds in addition to those provided or authorized in this agreement or the lease agreement with the Joint Building Authority shall be approved in advance by the County and the City.

D. Termination of Agreement

18) A contract is authorized between the parties to accomplish the above and the respective officials of the County and City are authorized to sign the contract, after approval thereof by the attorneys for the County and the City.

19) The County and the City has until July 1, 1998 to terminate this agreement by providing written notice to the other party in the event that party does not obtain authorization for financing which is acceptable to that party. Expenses to third parties incurred for THE PROJECT up until that time shall be split equally between the County and the City.

LAW & COURTS: Yeas: Bernero, Smiley, Stid, Pratt, Hunting, Goulet

Nays: Schafer Absent: None Approved 2/12/98

ADMINISTRATIVE SERVICES/PERSONNEL: Yeas: McDonald, Grebner, Hunting, Pratt

Nays: Juall Absent: None Approved 2/17/98

FINANCE: Yeas: Goulet, Keefe, Grebner, Czarnecki, Schafer

Nays: None Absent: McDonald, Bernero Approved 2/18/98