Oakland County committee backs $31 Judson and 51111 Woodward renovations, authorizes finance review

The Oakland County Economic Development & Infrastructure Committee voted to recommend that the county—s finance department consider an appropriation and allocation of funding for renovation of 31 East Judson and the vacant floors at 51111 Woodward Avenue in Pontiac. The committee moved the item to finance after staff presentations and discussion of financing, sustainability features and community engagement.

Committee members were presented a schematic plan for 31 East Judson that showed a conference/convening space, office buildout for roughly 700 county employees and schematic locations for two parking garages. County staff described the project scope for 31 Judson and the 51111 building and said the $174 million figure under discussion covers the building renovations (not the parking garages).

The county has secured a $50 million state grant from the Michigan Economic Development Corporation (MEDC) for the Pontiac Redevelop, Revitalize, Reconnect project and has committed $50 million of American Rescue Plan Act (ARPA) funds, staff said. County presenters described an amendment the county negotiated with the MEDC to allow periodic draws on the second $25 million tranche: rather than submitting a single final reimbursement request, the amendment allows quarterly reimbursement requests so long as each request is at least $100,000. A county staff member summarized that approach as using state funds to cash-flow the project and avoid borrowing for interim costs.

"So it's really, using the state as our, a tool to cash flow this project," a staff member said while explaining the grant amendment.

County staff and the committee discussed financing mechanics and bond timing. The county—s finance advisor urged a staged borrowing strategy, issuing debt in phases (a construction-loan style draw) rather than borrowing the full authorization upfront to limit interest carrying costs. The advisor said the county—s legal debt margin and current outstanding obligations make staged borrowing practical and that the issuer—s AAA credit rating should not be jeopardized by the plan.

"If taxes are your thing and you don't want to have higher taxes, this has nothing to do with taxes. Your taxes are not going up with this project at all," a county official said while arguing the project would not increase county property taxes. Another staff member described economic-development modeling that predicts a multi-fold local economic impact from the public investment.

The committee also examined sustainability options for the project. Staff said they are targeting LEED Silver, considered geothermal and found upfront costs and site constraints made full geothermal infeasible, and described placing solar panels on the tower penthouse; staff estimated rooftop solar might cover roughly 2—5% of campus power needs but stressed the county currently buys solar energy under contract for the campus.

Committee members pressed for an intensive, early community-engagement plan. Staff reported early coordination with SEMCOG and a potential $45,000 SEMCOG planning grant to support placemaking and neighborhood connections; presenters recommended dozens of focused community meetings and partnering with Pontiac city leaders so the project would be developed "with Pontiac, not to Pontiac."

After extended discussion and questions about cost, community engagement and bond timing, the committee voted to recommend the appropriation and forwarding to finance. The motion passed by roll call, 4 yays and 1 nay.

Ending note: staff indicated further board votes will be required for any bond authorizations and for final contracting. Presenters said the north and south parking garages and some development parcels remain the subject of separate development agreements and future actions.