City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, APRIL 2, 2024 IN CITY HALL 1. Mayor Taylor called the meeting to order at 7:00 p.m. 2. Mayor Taylor led the Pledge of Allegiance to the Flag and Andrea Bara, Management Assistant, gave the Invocation. 3. Council Members present at roll call: Deanna Koski, Michael V. Radtke, Jr., Maria G. Schmidt, Liz Sierawski, Michael C. Taylor, Henry Yanez, Barbara A. Ziarko Also Present: Mark Vanderpool, City Manager; Donald P. DeNault, Jr., City Attorney; Andrea Bara, Management Assistant; Carol Sobosky, Recording Secretary. 4. APPROVAL OF AGENDA Moved by Koski, seconded by Ziarko, RESOLVED, to approve the agenda as presented. Councilman Radtke requested that Consent Agenda Item 8-E be moved to Consideration Item 9-B and Consent Agenda Item 8-H be moved to Consideration Item 9-C. Mayor Taylor confirmed Item 8-E will be 9-B, and Item 8-H will be 9-C. Yes (on amended agenda): All. The motion carried (7/0). 5. REPORT FROM CITY MANAGER Mr. Vanderpool stated he has a special presentation this evening regarding the City’s Adopt-A-Road program. This has been a longstanding program with many participants who adopt roads and help to clean them up twice a year. Over the last year, they have been working on enhancing that program with new signage Regular City Council Meeting Tuesday, April 2, 2024 Page 2 and tiers that may be applicable to businesses to help reforest some rights-of-ways and medians through sponsorship. He invited Marketing & Communications Coordinator Marissa Russo, leading this effort, to share some of the new ideas they have in mind. Marketing & Communications Coordinator Marissa Russo explained this is their latest initiative, Inspiring Green Project, is an exciting addition to their Think Sterling Green Initiative, where residents, businesses, and community members will have the opportunity to actively engage in creating a greener community. They invite everyone to become an Ambassador for sustainability and to embrace the philosophy of Thinking Sterling Green. Their tiered partnership levels within this project ensure there are opportunities for everyone to get involved, regardless of their backgrounds or resources. She outlined the involvement of an Ambassador partner, with them often being at the entry level in the Inspiring Green project, ensuring there are opportunities for individuals and local groups to get involved and help spread awareness for a greener, cleaner community. They will be very influential in their sustainable initiatives and helping to move the City forward. She outlined the three tiers of partnerships offered, which will allow them to provide a greater impact on their ecosystem and improve the quality of life through these sponsorships. The City will be reaching out to all existing adopters in the Adopt-A-Road program to share this exciting rebrand and the exciting opportunities they have through these sponsorships. She provided details on the higher tier levels, noting the partners will receive promotion and Regular City Council Meeting Tuesday, April 2, 2024 Page 3 marketing as partners in their projects, including digital, print, and multi-media efforts. She cited the example of an Inspire partnership, and the benefits a sponsor would receive at this tier level. They are working toward replacing the many signs throughout the City with new vibrant signage to amplify the visibility and impact of the program. She emphasized that by inviting residents, businesses, and community members to join the City in Thinking Sterling Green, they can collectively make a meaningful impact on their environment and create a better community for generations to come. Mr. Vanderpool highlighted that the Ambassador level is the current Adopt-A- Road program, but a business, group of individuals, or an individual does not have to contribute the tiers mentioned to be part of the Ambassador program, but the signage is being rebranded under this new identity. He acknowledged that smaller businesses may not be interested in the Inspire $30,000 tier, but they may be interested in the $5,000 tier. Some businesses may be interested in these tiers because there is some benefit for businesses, noting the exposure they get and the tree-planting and reforestation of the City. He cited some of the local businesses with which they have had discussions about these tiers, and they have expressed interest. He hopes once they get some companies at the higher tiers, other major corporations in the City may take note and recognize the value of being part of this program. The signage throughout the City will be replaced with this new brand throughout the summer months. He thanked Ms. Russo and the Regular City Council Meeting Tuesday, April 2, 2024 Page 4 Community Relations team, as well as Civil Engineer II Scott Charron and the Engineering team for working hard on this project. Mr. Vanderpool mentioned that the Sterling Heights Initiative for Neighborhood Excellence, aka SHINE, will take place on May 4. He explained that volunteers go out in the community and help individuals who need their yards cleaned up. Council members have participated in this event in the past, and he enjoys participating in it as well. It is fun to help individuals who need assistance in mowing grass, trimming bushes, raking leaves, cleaning up landscaping, etc. They are always looking for volunteers and need about seventy-five volunteers, so if anyone is interested, he directed them to call Community Relations so they can sign up. It only takes a few hours of effort, and they are generally done by about 1:00 p.m. that day. He announced they have their clean-up days coming up, with Shred Day on April 13, where residents can bring their paper that is stored in banker boxes to DPW and watch as their documents are shredded onsite. Household Hazardous Waste event will be on April 20, and those interested can go to the City’s website to identify the materials permitted to be dropped off on this day. Electronics Recycling Day will be on April 27, for those who want to get rid of computer monitors, televisions, etc. On May 11 and May 18, they will be hosting Clean-Up Days, where any other materials such as woody debris, gravel, or other items being cleaned up from the landscape beds can be dropped off at DPW. He emphasized that these are great programs and help to get the community looking great for spring and summer months. It all helps to keep Regular City Council Meeting Tuesday, April 2, 2024 Page 5 neighborhoods aesthetically pleasing, homes in good clean shape, and property values high. He stated this concludes his report this evening. 6. ORDINANCE INTRODUCTIONS A. Mayor Taylor stated this is to consider introduction of an ordinance to regulate pneumatic guns as permitted by state law. He invited Assistant City Attorney Nathan D. Petrusak, and Police Captain Ken Pappas to give a presentation. Assistant City Attorney Nathan Petrusak explained this is an introduction of an ordinance to regulate pneumatic guns in the City of Sterling Heights. He noted that years ago, the State occupied the regulations of pneumatic guns, including bb guns, paintball guns, etc. That changed in 2015, and since that time, a number of municipalities have begun enacting regulations under their authority to regulate the possession and use of pneumatic guns in a matter that is commensurate with what the particular municipality is looking to accomplish, given its local concerns and local needs. The proposed ordinance prohibits anyone under the age of sixteen to possess a pneumatic gun unless they are under the supervision of an adult. It prohibits persons from pointing, waiving about, or displaying a pneumatic gun in a manner that is intended to threaten or induce fear in another individual. It prohibits the discharge of pneumatic guns on property adjoining another property utilized or zoned for overnight habitation. It can be fired on the property, but reasonable safeguards such as putting up barriers that would prevent the bb from leaving that property and going onto adjacent Regular City Council Meeting Tuesday, April 2, 2024 Page 6 properties. There are public safety concerns related to pneumatic guns because they appear similar in many respects to actual firearms. This ordinance provides that they are not permitted to modify pneumatic guns so that they look like an actual firearm. Mr. Petrusak explained there are concerns that pneumatic guns can be used to harm animals and damage property, as well as intimidate others, such as in road rage incidents. He stated he is happy to answer questions, and he turned the presentation over to Captain Pappas. Police Captain Ken Pappas explained they recently received reports of kids shooting bb guns in the woods, and children shooting at houses with paintball guns. Moved by Yanez, seconded by Sierawski, RESOLVED, to introduce the ordinance to regulate pneumatic guns as permitted by state law. Councilman Yanez stated this is a good idea, especially since it is up to the municipal level to establish the regulations. He recalled hearing on the news a few years ago that people were driving around cities, randomly shooting people with paint ball guns. These guns can be dangerous, and he is in support of this ordinance.’ Mayor Pro-Tem Sierawski stated, as a mother of four boys, she was constantly vacuuming up airsoft pellets in her house. She understands shooting these guns is fun for kids, but she felt it is important to regulate them appropriately. She noted their agenda backup material included a couple of reports of young men who were shot because they were brandishing airsoft guns, but they were Regular City Council Meeting Tuesday, April 2, 2024 Page 7 mistaken for real guns. She felt having the right regulations and ordinances will help the City to keep people safe. Councilwoman Koski commented that this ordinance provides their police department with another tool to help keep their residents safe. Councilman Radtke requested clarification from Mr. Petrusak on the third bullet point under Item 3 on Page 14. He questioned whether people could fire airsoft guns on their own property and do not need permission of their neighbors to utilize those guns on their own property, but they need permission of their neighbors if an airsoft gun pellet would cross property lines. Mr. Petrusak replied it is correct that a person is not prohibited from shooting a pneumatic gun on their own property and they do not need permission of the adjacent property owners, although they need the permission of the property owner of the property on which the gun will be shot. They are required to take reasonable care to make sure that pellet does not leave he property on which they are shooting, and that would generally mean erecting some type of barrier. Councilman Radtke stated he had a bb gun as a kid, and he would not want other children to be deprived of being able to shoot the gun on their property. He understands the reasons for keeping the public safe, but he does not want to take a recreational opportunity away from children. He has no problems if that is the case. Regular City Council Meeting Tuesday, April 2, 2024 Page 8 Councilwoman Schmidt questioned the consequences to a minor who possesses one of these guns if they are found in possession, not on their own property and not with an adult. Mr. Petrusak replied to inquiry that the consequence of a person under the age of sixteen who is found to be in possession of a pneumatic gun is cited with a civil infraction, and that is state law. He replied to further inquiry that the consequence to a person between the ages of sixteen and eighteen who is found to be in possession of a pneumatic gun, under this ordinance (with the exception of one provision of it), would be cited with a misdemeanor offense, punishable by ninety days in jail and up to a $500 fine. Councilwoman Schmidt recommended that if this is passed, she would like to see this forwarded to both school districts, administration, and principals at all three high schools and the middle schools, should receive a copy of the ordinance. She hoped they would pass that information on to the parents. Mayor Taylor stated he will be supporting this ordinance. He stated his brother was shot in the chin by a bb gun many years ago, and his friend was just “goofing around.” The bb was lodged in his chin for a long time. He stated it is a good idea to have the age requirements in the ordinance, and he hopes it will prevent any type of tragedy. Yes: All. The motion carried (7/0). 7. ORDINANCE ADOPTIONS Regular City Council Meeting Tuesday, April 2, 2024 Page 9 A. Mayor Taylor stated this is to consider adoption of an ordinance amending Chapter 23 of the City Code, entitled Garbage and Refuse, to establish new regulations for curbside collection of refuse, recycling, and yard waste. He opened the floor for public comments. • Harry Marchlones – complained about the large carts that residents will be required to use; commented that many people do not have the room to store them, they are large to maneuver, and many residents do not generate that much garbage; he showed the garbage can he has been using since 2005; keeps his garbage inside a bag in the can, then takes the bag to the curb on trash day; commented they do not have a rodent problem; questioned how much it is costing the city to buy and distribute the garbage and recycling cans; complained they are going from two- operator trucks to one-operator trucks, yet the price is going up; provided his phone number for anyone who wants to join him in this, or for anyone who has a real reason why they are doing this. • Mike Gretel – lives at 4885 15 Mile Road; showed photos of various garbage piles on trash day in Sterling Heights; questioned whether residents have to call if they have a large item such as a couch; questioned the length of the contract; questioned whether Priority Waste will be taking the recycling to substations and how much extra that will cost; questioned how much these containers cost the City. • Unidentified woman – complained her two containers were dropped off yesterday directly adjacent to her mailbox, which is not allowed; complained she cannot get them to her garage while using her walker, and she will not be able to get them to the curb on trash day; noted four people in her subdivision have not retrieved their carts from the end of the driveway, and questioned whether they will get fined by their association; stated she has called Priority Waste three times today, and City Hall four times today, but they bounce her back and forth; explained to someone at City Hall that she currently takes her garbage bags, hangs them from her walker, and takes them to the curb, but she will be unable to get the carts to the curb; complained this was not thought out very well for handicapped people. Regular City Council Meeting Tuesday, April 2, 2024 Page 10 Moved by Ziarko, seconded by Schmidt, RESOLVED, to adopt the ordinance amending Chapter 23 of the City Code, entitled Garbage and Refuse, to establish new regulations for curbside collection of refuse, recycling, and yard waste. Councilwoman Ziarko questioned whether Mr. Vanderpool can answer the questions or concerns raised by the residents. Mr. Vanderpool stated, with respect to individuals who may have mobility limitations or for one reason or another are not able to get their refuse containers from the house to the curb and back to the house, there is accommodation that can be provided. He suggested those individuals contact his office or DPW, and they will help them with it. He stated that special collections, such as furniture, couches, mattresses, will still be collected and is part of the program. It will be coordinated with a separate truck, and those items will not typically go into the regular refuse truck. If there are unusual items such as construction materials, which are not even collected currently under the bulk collection program, there is a service the resident can coordinate through Priority Waste to get that collected as well. He assured everything under their current program is also provided for in the new program. He addressed comments about there being no rodent problems, and he stated that is false because it is a problem in the City. Having wet garbage sitting on the curbside for up to twenty-four hours to be collected exacerbates the problem. He assured this is a best practice program and is done all over the United States, including the neighboring communities of Shelby Township, Warren, Macomb Township, Clinton Township, and others. He informed that seventy percent of what goes into the normal refuse can be Regular City Council Meeting Tuesday, April 2, 2024 Page 11 recycled, which is why they are implementing universal curbside recycling. This is a ten-year contract, and while there will be some “hiccups” in getting this fully implemented over the next ninety days, he assured they will do this as a community. He has heard a few concerns, but the vast majority of the community seems to appreciate this program and are looking forward to it. The curb delivery of the carts began yesterday and expect it will be completed this month, with the new program starting in May. Councilwoman Ziarko noted there will be more information that will need to come out with regard to a timeline as to getting rid of containers supplied by GFL. She had previously questioned how senior citizens will get these carts to the curb, but her mother is 95 years of age, and until two years ago, she was wheeling her own cart to and from the street. She loved it, noting it was better than carrying garbage bags to the curb. In her community, they were each issued two refuse carts and two recycling carts, although she only used one of each. In order for everyone to save money, they have to all do the same thing, and this equates to an approximate $23 million savings over the ten-year contract. The cost of the carts was attached to a grant they received contingent upon it being universal. She felt they need to give it some time to try it, and she expressed confidence that it will work. Councilwoman Schmidt received a telephone call from a resident, and she understood that if she has a GFL refuse cart that she purchased, she can place the compost stickers on it and use it for yard waste. She also has the option of Regular City Council Meeting Tuesday, April 2, 2024 Page 12 continuing to use the paper bags for yard waste. She emphasized they cannot use the Priority Waste recycle bin to place compost stickers on and use it for yard waste. Mr. Vanderpool stated that is correct. Councilwoman Schmidt just wanted that clarification because the resident who called stated he had numerous neighbors who were intending to do the same thing and repurpose the Priority Waste recycling bin for yard waste. She wanted to verify if they do that, it will not be picked up. She stated that Sterling Heights is one of the last communities to do this, so it has to have worked in other communities. She urged everyone to be patient and work with the City on this. Councilman Radtke agreed with Councilwoman Schmidt, noting almost all surrounding communities use this program, as well as most large cities in the State of Michigan. He clarified a comment made by some of the residents that the previous contract for two-operator trucks was much cheaper than the new contract with one-operator collecting through mechanical means. He pointed out the City also received prices for the current way they pick up the trash, and it was significantly more expensive by millions of dollars. He stated he voted against this contract because he does not like the ten-year program, but that has already been decided. The price for trash pickup is going up, adding the economy is much different for trash now than it was eight years ago when they negotiated the last trash contract. He pointed out the savings of $23 million cited by Councilwoman Ziarko was the ten-year savings over the next lowest bid, and they had four Regular City Council Meeting Tuesday, April 2, 2024 Page 13 bidders. He assured they are trying to find the best way to save the City money. He clarified that all of the new trash carts are color-coded, with green refuse carts, blue recycling carts, and for those who purchase yard waste carts, those are brown. He explained residents can use their old GFL hunter green refuse cart that they purchased and use it for yard waste if they put the appropriate stickers on it. He is confident this will work, and the hesitancy is that people are afraid of change. He agreed with Mr. Vanderpool that there are rodent problems, and he has observed trash bags that are shredded by animals. He expressed concern for people with severe mobility issues and addressed the resident who spoke earlier about not being able to maneuver the carts while holding on to her walker. He assured her that the City will work with her, although they have no control over her homeowner’s association. He advised the way to change association rules is to petition the association. He is looking forward to rolling this program out and seeing its success. Councilwoman Koski recalled the City received a grant to pay for these carts. Mr. Vanderpool replied that is correct, adding they received a grant for this program. There are two components to the grant that equates to nearly $1 million, so they were able to offset a significant cost with this program. The cost of this program, compared to the old program, equates to approximately $30 increase for the average home per year for a vastly expanded refuse program. He pointed out that for a $30 increase, residents will receive universal curbside recycling, new carts, and weekly recycling collection. He pointed out the current Regular City Council Meeting Tuesday, April 2, 2024 Page 14 curbside recycling program is subscription-based, and those individuals pay $57 per year. Those residents will likely see a decrease in what they pay, and he pointed out there are approximately 10,000 recycling subscribers, but there are 40,000 stops, so that number of participants is very low. As far as sustainability, the drop-off centers were not the answer and not best practice when considering the cost of operating and maintaining these centers. He stressed this is an incredible program for the entire city, and done at an incredibly cost-effective rate, much lower than surrounding communities. He replied to further inquiry that the cost of the carts, at $1.8 million, are rolled into the whole program, and the grants went toward that. Councilwoman Koski inquired as to whether residents are permitted to utilize their old GFL cart for refuse if they have a large family and generate a lot of garbage, or whether they have to buy another cart. She inquired as to the cost of an extra cart. Mr. Vanderpool replied to inquiry if a resident has a current GFL dark green cart they purchased, they can keep that cart and continue to use it for refuse collection as a second cart. If two carts are not enough and they want to order a third, or if they do not have a GFL cart, they can purchase an additional cart that is approximately $100, although he will verify that cost. Councilwoman Ziarko questioned if residents habitually have more garbage than fits into their refuse carts, would Priority require that they purchase a second cart. Mr. Vanderpool stated a lot of these questions will require some significant public education. One of the value-added services of this program is that they will be Regular City Council Meeting Tuesday, April 2, 2024 Page 15 able to identify those setting refuse outside of their cart improperly and not in conformance with the City ordinance. They would have numerous conversations before citing those individuals to determine whether or not they recycle, and what is causing the capacity problem. Based on those conversations, they may strongly suggest the purchase of another cart, which is $110. He pointed out the useful life of these heavy-duty carts is many, many years. He added if they are damaged by Priority Waste equipment, they are repaired or replaced at no charge to the resident. They believe these situations will be the exception rather than the norm. He pointed out there are rarely issues with capacity of refuse carts when the resident is also using a recycling cart. After they have exhausted the actions mentioned and there is complete disregard for the City ordinance, the City will take appropriate action. Mayor Pro-Tem Sierawski stated she and her family have lived in Sterling Heights for thirty-one years, having come from Harper Woods. She noted that Harper Woods had their own curbside recycling and trash bins thirty-one years ago. She stated she is excited to have this service finally come to Sterling Heights. She stated her ninety-five-year-old mother-in-law is able to move her own cart because it is ergonomic. She is looking forward to Sterling Heights doing their part. Yes: All. The motion carried (7/0). 8. CONSENT AGENDA Regular City Council Meeting Tuesday, April 2, 2024 Page 16 Mayor Taylor stated this item is consideration of the Consent Agenda, with the exception of Items 8-E and 8-H, which have been moved to Consideration Items 9- B and 9-C, respectively. He opened the floor for public comments. • Paul Smith – referred to Item 8-I, and does not believe it is the role of government to be an investor and speculator in real estate development; concerned the $162,000 expenditure for professional consulting will disappear; could not understand why the Lakeside developer cannot pay this money himself; referred to Item 8-R, and is glad the City is ending world violence, adding it is about time. • Mike Gretel – referred to Items 8-P and 8-Q; questioned the purpose for designating an entire month for these groups; referred to Item 8-R, and suggested Council help with the border issue. • Harry Marchlones – referred to Item 8-I; questioned what the City is going to do with the Plante Moran financial review and analysis of the Lakeside Mall redevelopment project; referred to Item 8-R; stated the United States Army, Navy, Air Force, and Marine Corps trying to do the same thing; suggested that item be removed unless members of City Council are going to do something about it. Mayor Taylor clarified that Item 8-I is to accept a proposal for professional consulting services in connection with financial review and analysis of the Lakeside Mall redevelopment project, and it is not an investment of money into real property. • Unidentified woman – appreciated Items 8-P and 8-Q, adopting resolutions designating the month of April as “Chaldean-American Month” and “Arab American Heritage Month”, respectively, noting they both honor the diversity of this community; referred to Item 8-R; appreciated Council adding this, disappointed it does not reflect empathy toward the people of Gaza who are surviving the shelling and starvation; urged Council to include the words “Gaza” and “ceasefire.” • Nick – referred to Item 8-R; glad the resolution was brought forward, but it is a thin resolved statement at the end; requested it be improved, so they Regular City Council Meeting Tuesday, April 2, 2024 Page 17 are not “tiptoeing” around the issue; suggested they use more explicit language to reflect the nature of this conflict. • Unidentified woman – appreciated Item 8-R, but disappointed in the vagueness, complained it falls short of the specific action they want addressed regarding the situation in Gaza; urged Council to take a clear stance and include specific language. • Tom Drobny – resident of Sterling Heights for thirty years; referred to Item 8-R and the comments that it should be more specific; felt they will be constantly adding names because there is trouble all over the world; stated he is Ukrainian and has family in Ukraine, but is bothered by the fact it is not talked about in the news like the conflict in the Middle East; is not opposed to designating certain months to recognize different ethnic groups, and appreciated the Halo being lit up to support Ukraine’s colors when the war started. • Unidentified man – referred to Item 8-R; upset the City Council is not recognizing the situation in Gaza as a genocide. • Mohammad Zaid – resident of Sterling Heights; referred to Item 8-R and read an excerpt from the Quran about the genocide in the Holy Land; urged Council to make the right choice; wants a resolution calling for a ceasefire. • Bruce Houston – referred to Item 8-R, stating he agrees with it, noting it is basic but it is as far as they should go with it, pointing out there are wars all over the world; commented there are consequences in war, so wars should not be started; stated that while he is not against anyone, he is not for any of these specific Middle East countries, but he is for America; felt Americans should worry about their own country and place less focus on other areas of the world. Moved by Koski, seconded by Ziarko, RESOLVED, to approve the Consent Agenda as amended: A. To approve the minutes of the March 19, 2024 Regular Meeting. B. To approve payment of the bills as presented: General Fund - $476,967.11, Water & Sewer Fund - $130,406.12, Other Funds - $1,558,786.52, Total Checks - $2,166,159.75. C. RESOLVED, to accept the proposal by Mando Construction, Inc., 75 Lafayette Street, Mount Clemens, MI 48043, for interior renovations to the upper and lower levels of City Hall at a cost of $43,819. Regular City Council Meeting Tuesday, April 2, 2024 Page 18 D. RESOLVED, to accept the proposal by Anderson, Eckstein and Westrick, Inc., 51301 Schoenherr Road, Shelby Township, MI 48315, for professional engineering services in connection with the rehabilitation and repair of sanitary sewer located on Dodge Park Road, Charlotte Drive, and Emerson Drive and authorize the City Manager to sign all required documents on behalf of the City. E. This item was moved to Consideration Item 9-B. F. RESOLVED, to approve the vehicle lease agreement between the city of Sterling Heights and Michigan Tournament Fleet, Inc., 1947 Haggerty Rd., Commerce Charter Township, MI 48390, for golf cart rentals during the 2024 Sterlingfest Art & Music Fair and authorize the City Manager to sign the Agreement on behalf of the City. G. RESOLVED, to approve the Agreement between the city of Sterling Heights and the Michigan Economic Development Corporation for grant proceeds to fund the development of Red Run Park and authorize the City Manager to execute the Agreement on behalf of the City. H. This item was moved to Consideration Item 9-C. I. RESOLVED, to accept the proposal by Plante Moran Realpoint, LLC for professional consulting services in connection with financial review and analysis of the Lakeside Mall redevelopment project and authorize the City Manager to sign the agreement on behalf of the City. J. RESOLVED, to approve the Purchase Agreement between the city of Sterling Heights and DTE Electric Company for the installation of street lighting on Maple Lane Drive, from 15 Mile Road to 14 Mile Road, and authorize the City Manager to sign all documents required on behalf of the City. K. RESOLVED, to waive the competitive bidding requirement in accordance with City Code Section 2-217(A)(9)(a) and approve the purchase of the ASCO 600a Automatic Transfer Switch, with installation services, from American Generators Sales and Service, LLC, 6158 Delfield Industrial Drive, Waterford, MI, 48329, at a total cost of $11,807. L. RESOLVED, to purchase a 2024 membership to Miss Dig 811, 3212 Sjoquist Drive, Gladstone, MI 49837, at a cumulative cost of $15,254.71. M. RESOLVED, to award the bid for rebuild/repair of light and heavy-duty vehicle transmissions and remanufactured replacement of heavy-duty transmissions to J.B. DLCO Transmission, Inc., 24111 Groesbeck Highway, Warren, MI 48089, based on unit prices bid for a two-year period. N. RESOLVED, to award the bid for right-of-way irrigation system maintenance to Chris's Quality Cutz, Inc., PO Box 74009, Romulus, MI 48174, for the period of April 1, 2024, to November 30, 2026, at unit prices bid. O. RESOLVED, to purchase DCR network control and monitor software from BIS Digital, Inc., 1350 NE 56th Street, Suite 300, Ft. Lauderdale, FL 33334, at Regular City Council Meeting Tuesday, April 2, 2024 Page 19 a total cost of $12,768.00, inclusive of software support and upgrades, installation, and training, and authorize the City Manager to sign all required documentation on behalf of the City. P. RESOLVED, to adopt the resolution designating the month of April annually as "Chaldean-American Month" in the city of Sterling Heights. Q. RESOLVED, to adopt the resolution designating the month of April annually as "Arab American Heritage Month" in the city of Sterling Heights. R. RESOLVED, to adopt the resolution supporting an end to violent conflicts around the World. Yes: All. The motion carried (7/0). 9. CONSIDERATION A. Mayor Taylor stated this is to receive and approve the Sterling Heights 2040 Mission Statement, Vision Statement, Guiding Principles and Core Values. He invited Police Chief Dale Dwojakowski, Library Director Tammy Turgeon, and Human Resource and Benefits Manager Kate Baldwin to give a presentation. Police Chief Dale Dwojakowski noted that Ms. Turgeon is on vacation, but he will start the presentation. He stated they are proud to announce their Visioning 2040, noting all of the hard work they did over the last year to produce the Visioning 2040 Mission Statement, Guiding Principles, and Core Values. He explained they did this ten years ago and came up with Visioning 2030 process. He stated the process was very interesting, and the 2030 Visioning became a roadmap for everything they did in Sterling Heights for the last ten years. He explained that in Visioning 2030, they had input from four big stakeholders: City officials; community members; City employees; and business leaders. They all helped to create their Visioning 2030 Statement and Guiding Principles, which turned into their Strategic Plan. The Strategic Plan dictated their formal plan updates, such as Regular City Council Meeting Tuesday, April 2, 2024 Page 20 the Road Plan, Master Plan, Parks & Recreation Master Plan, and the outcome was stability, success, community growth, best practices, and how to deliver services to their residents as far as public safety, DPW, quality-of-life issues such as parks and the library. He reviewed the 2030 Visioning Statement, stating as follows: “A vibrant, inclusive community for residents and businesses that is safe, active, progressive, and distinctive. Sterling Heights – a bold vision for an exceptional quality of life.” He reviewed each of their Vision 2030 Guiding Principles, and then talked about the successes realized from those Vision 2030 Guiding Principles, including massive changes to the Dodge Park area through ReCreating Recreation, with the new bridge, the cleaning up of the Clinton River, the Farmer’s Market Pavilion, the ice-skating rink, the new concert pavilion, the Splash Pad. There were updates to all of their buildings, incorporation of all of the new groups, such as Think Sterling Green Initiative, African American Coalition, and commUNITY Alliance. He acknowledged the overwhelming passing and renewal of their Safe Streets millage that helps their police and fire, and roadways. He cited the landscape and monoliths along Van Dyke, and their Golden Halo, an identifying marker unique to Sterling Heights. Human Resource and Benefits Manager Kate Baldwin stressed that Visioning 2030 has had an overwhelming positive impact on the City over the last ten years, but they need to continue that momentum looking ahead to 2040. City Administration engaged with Strategize to help facilitate the process. They effectuated a Vision Planning Team and a Steering Team, with both teams made Regular City Council Meeting Tuesday, April 2, 2024 Page 21 up of administrators and employees who helped to administer and oversee the development of the components of the 2040 Vision. They also met with various stakeholder groups, including City Council and City officials, community members, business leaders, and City employees. They conducted a SWOT analysis to identify strengths, weaknesses, opportunities, and threats developed through data and listening sessions. This included a presentation from SEMCOG providing analytics and trends. They also conducted a series of surveys to reach a larger employee and community audience. All of this research was critical when considering redeveloping the City’s overall vision and guiding principles when looking ahead to 2040. Their mission statement defines what they currently do and how they carry out their intentions and objectives. She stressed the City practices innovative living every day, and it is imbedded within their intentions, goals, and objectives. They determined this is their mission statement: InnovatingLiving – An inclusive, vibrant community that is safe, active, and sustainable. Chief Dwojakowski reviewed the Vision 2040 Guiding Principles and examples of how each of these are being accomplished: • Public Safety: Public safety that is equitable, responsive, and proactive. • Sustainability: A city that is exceptionally maintained, sustainable, and environmentally responsible. • Enriched Living: Educational and recreational opportunities and programming for all ages, abilities, and interests. • Neighborhoods: Plentiful and diverse housing and green spaces available for existing and new residents. Regular City Council Meeting Tuesday, April 2, 2024 Page 22 • Connect: A city engaged with residents and businesses through innovative channels and technology. • Business Innovation: A destination for entrepreneurs, high-tech, and emerging industries. • Distinctive Areas: Vibrant and attractive areas with unique offerings and focal points. • Mobility: An accessible city that is connected with a robust system of pathways and trails. Ms. Baldwin explained through the Visioning 2040 process, they want to further expound on their DNA makeup as they move further ahead. Through the research conducted with the stakeholder groups, they came up with words that depict what their core values will be, and many of these words are also included in the Guiding Principles. She reviewed and expounded on these words and how they will serve as a foundation for their culture and the behaviors they expect from one another: • Integrity and Excellence • Welcoming, Fun!, and Collaborative • Proactive and Responsive Ms. Baldwin proceeded to explain the next steps to keep Sterling Heights focused on their vision over the next sixteen years of creating an inclusive, vibrant community, which is safe, active, and sustainable. They will begin implementation by sharing the plan, setting annual goals and objectives, and establishing priorities. She stated this concludes their presentations this evening. Mayor Taylor thanked Chief Dwojakowski and Ms. Baldwin for their presentations. He opened the floor for public comments. Regular City Council Meeting Tuesday, April 2, 2024 Page 23 • Ken Nelson – commented when they talk about Sustainability Commission, building apartments, and creating community gardens in their parks so people living in apartments can grow plants; claimed this is following the plan of the United Nations, and he does not want anything to do with the United Nations. • Paul Smith – commented a lot of talk for bike paths, sidewalks, and non- vehicle mobility, but often results in putting in paths where they are not needed, and ignoring the difficult areas where they are really needed; noted Utica Road and Clinton River Road are often traveled but have a glaring absence of sidewalks and bike paths; complained that painting a line on the side of the road and calling it a bike path is not safe; urged Council to get at least one side of Utica Road and Schoenherr passable for non-motorized transportation. • Unidentified man – stated he is in support of the Constitution and the Bill of Rights; concerned the trend is implementing foreign agendas, and he talked about globalism; stressed there are local problems that need to be addressed. Moved by Sierawski, seconded by Taylor, RESOLVED, to receive and adopt the 2040 Mission Statement, Vision Statement, Guiding Principles, and Core Values. Mayor Taylor stated has had never read United Nations “Agenda 2030), but he has heard about it on Facebook for many years. He does not know about the World Economic Forum or the World Health Organization and how this has anything to do with it, but they adopted the Visioning 2030 Statement many years ago. This set their core values and principles on which they want to live by when they are determining how to allocate money. He stressed none of this is against the American Constitution or has anything to do with globalism or one-world government. They need to have their values defined so they can make their decisions as they move forward, and Visioning 2040 does that. He assured this has nothing to do with conspiracy theories, and these values were determined by Regular City Council Meeting Tuesday, April 2, 2024 Page 24 administration, residents, business owners, and stakeholders. He recalled hearing a lot of the same criticism when they were establishing Visioning 2030, but he pointed out all of the good things that have taken place in the City as a result of that vision. Mayor Pro-Tem Sierawski stated she works for the Jesuits of the Catholic Church, and they do vision statements and guiding principles, which are a general business practice. They do a ten-year projection, as every business does, so it has nothing to do with the globalist philosophy. She likes the guidelines, noting she is always in favor of public safety, and it is what everyone wants. She likes the sustainability portion to make sure they protect what little green space is left. She cited the example of her best friend, who is one of the strongest supporters of sustainability, yet she is a very strong Republican. She pointed out sustainability is not a Democrat vs. Republican issue but is a community issue. She stressed it is important that enriched living and multiple-housing opportunities, including education and everything else offered to their citizens, is available. She emphasized integrity and honesty are the number one priority. She added welcoming is something they all support, even though everyone has a different viewpoint, but they are all here for each other. Councilman Radtke attended some of the sessions where they discussed some of the visions for their guiding principles and vision statement, and he was impressed, especially with the one attended by residents. He disagreed that any of these ideas were pushed on people. Everyone wants to be safe and secure in Regular City Council Meeting Tuesday, April 2, 2024 Page 25 their homes, they want various housing options, walkable neighborhoods, and sustainability. People do not want to waste as much, they want to recycle, they want to meet their neighbors. He hopes this opens up a larger discussion on what Council has been talking about for a long time. He knows open space is important to people, especially viable open space that could be turned into parks or nature preserves in the future. He felt it is important to have access to these areas, and regrets that the Nature Preserve is inaccessible to the residents. He stressed sidewalks and pathways are important, and he would like to see an in-house sidewalk program and not charge special assessments for the sidewalks. He talked about the improvements and grant they received for Red Run Park, with part of that tying into the twelve miles of trails they are adding to Sterling Heights. He emphasized they need to “re-tree” Sterling Heights, noting how many trees were lost to the Emerald Ash Borer. He recalled that ReCreating Recreation was contentious, but he suspected if they took a vote today on keeping the park improvements or going back to the way they were before, the vote would pass by eighty or ninety percent of the vote because people see the value. He mentioned the successful Farmer’s Market, and how that has brought neighbors together. He felt Sterling Heights has leapt forward because of the 2030 Plan, and 2040 will catapult them into what he believes is the number one city in the State of Michigan. He pointed out what the City is doing to beautify and make it sustainable. He stated he would like to challenge his colleagues and possibly City Administration to put together an action plan for the open space and for a Regular City Council Meeting Tuesday, April 2, 2024 Page 26 sidewalk program. He explained he lives on Maple Lane, but since the sidewalk has been installed, he has noticed many residents walking on that sidewalk every day. He understands that people own cars and will be using them, but he would like to see everyone have the opportunity of walking and getting exercise. Councilman Radtke asked Mr. Vanderpool if sidewalks along Utica Road are a priority. Mr. Vanderpool replied to inquiry they are a priority, and he added they have closed many gaps in the City in recent years. They are targeting other areas as well, such as 14 Mile Road. Councilman Radtke recalled last year they completed 14 Mile Road, from Van Dyke to Marlena, which is halfway to Maple Lane. He understands this year they will be going from Marlena to Maple Lane. Mr. Vanderpool replied that is correct. Councilman Radtke explained they are going to put together Red Run Park, but they need to have a plan to fund these improvements, especially at the cost of $300 per tree. He reiterated his desire to have a plan put together, adding he wants 2040 to be just as successful as 2030. Mayor Taylor questioned whether Councilman Radtke would like to bring up his request at this time. Councilman Radtke stated he can bring it up now. He would like City Administration to prepare a plan and a possible ballot initiative to bring forward what the residents are telling them they want. Regular City Council Meeting Tuesday, April 2, 2024 Page 27 Councilwoman Ziarko suggested this be addressed under New Business. She pointed out what they are approving under this agenda item is the 2040 Mission Statement, Vision Statement, Guiding Principles and Core Values. Councilman Radtke agreed to bring it up under New Business. Yes: All. The motion carried (7/0). Mayor Taylor thanked Ms. Baldwin, Chief Dwojakowski, and everyone who worked on the Visioning 2040 Plan. He is very proud of it and excited to see where it takes the City. B. Mayor Taylor stated this was previously Consent Agenda Item 8-E, which is to accept a proposal by Hubbel, Roth & Clark, Inc. for professional services to complete a Comprehensive Transportation Safety Action Plan (Total cost of $510,000 – 80% funded through a Federal Highway Administration Grant). He opened the floor for public comments, but no one spoke. Moved by Radtke, seconded by Taylor, RESOLVED, to approve the proposal by Hubbel, Roth & Clark, Inc., 555 Hulet Drive, Bloomfield Hills, MI 48302, for professional consulting services to complete a Comprehensive Transportation Safety Action Plan and authorize the City Manager to sign the Agreement for Professional Services on behalf of the City. Councilman Radtke stated he would like to postpone this for two weeks. There were some questions he had about the proposals and was told they would be provided with more information. He thinks the Safety Proposal is a good plan, but he would like to further read and discuss the proposals for the Safety Plan. Mayor Taylor questioned whether any Councilmembers have issues with a two- week postponement, but no one expressed objection. Regular City Council Meeting Tuesday, April 2, 2024 Page 28 Discussion took place regarding whether the first motion needs to be amended or withdrawn in order to postpone the matter to April 16. Councilman Radtke withdrew his motion on the floor. Moved by Radtke, seconded by Taylor, RESOLVED, to postpone discussion on the proposal by Hubbel, Roth & Clark, Inc., 555 Hulet Drive, Bloomfield Hills, MI 48302, for professional consulting services to complete a Comprehensive Transportation Safety Action Plan, to the April 16, 2024 regular City Council meeting. Yes: All. The motion carried (7/0). C. Mayor Taylor stated this was previously Consent Agenda Item 8-H, which is to approve an Agreement with the Michigan Economic Development Corporation and Su-Agreement with Lakeside OOTB Ventures, LLC, to secure and utilize grant funding for acquisition of real property in connection with the redevelopment of Lakeside Mall. He invited Senior Economic Development Advisor Luke Bonner to give a presentation. Senior Economic Development Advisor Luke Bonner talked about what this means toward advancing the eventual PUD application to the City for the redevelopment of Lakeside. He provided a review of how they got to this point and why this is an important next step. In November 2022, the City Council adopted the Memorandum of Understanding (MOU) between Out Of The Box Ventures and the City. Since that time, they have created the Corridor Improvement Authority District, and they have looked at state legislation in terms of incentives and their availability and worked with their state legislators as to how this may apply. They have looked at the Brownfield laws, specifically in transformation of Brownfield, to Regular City Council Meeting Tuesday, April 2, 2024 Page 29 make sure Lakeside would be part of that. They also talked about how they would pursue other federal and state grants as part of the redevelopment project. They also added a financial firm to analyze the Lakeside project and its feasibility before they move forward with their incentive package, and that was on tonight’s Consent Agenda. Mr. Bonner explained that Lakeside has been negotiating endlessly, because they have to have permission or “sign-off” of all of the other landowners in order to submit their PUD application. This involves J.C. Penney, Lord & Taylor, Macy’s, and the owner of the former Sears Roebuck. All of these property owners are connected to a reciprocal easement agreement (REA), which dictates the parking everyone gets, the kind of uses at the mall, etc. He explained part of the Transformational Brownfield Application that Lakeside is anticipated to apply for requires them to have control over all of the real estate at Lakeside in order for them to apply for the incentives. He stated that Lord & Taylor, as well as the owner of Sears, have been hold-outs, and it has been taking a long time to negotiate them as being part of the PUD application and some type of acquisition scenario. The City had said they would pursue additional grant funding for the Lakeside property, and last year Representative Nate Shannon approached the City to see what they could do at the state level to help. They identified the Transformational Brownfield and they also felt it would be likely to have a couple of holdouts on the real estate side, being Lord & Taylor and Sears, and having any funding to help assist with the acquisition of those properties would be highly beneficial to Regular City Council Meeting Tuesday, April 2, 2024 Page 30 moving the project forward. There was a state appropriation for this very specific development, and the next step is to have a grant agreement between Michigan Economic Development Corporation and the City of Sterling Heights for those funds. He cautioned that $3 million will not “move the needle” to buy two properties that are likely to transact for around $20 million, and he assured they would never recommend the City purchase these properties, and they could not do so for $3 million. This action would transfer risk of property acquisition to Lakeside, and the $3 million is a placeholder, serving as a large deposit on both Lord & Taylor and Sears, which would be a typical real estate transaction on properties of this size. This would enable the Lakeside developers to get control of Lord & Taylor and Sears so they can apply for the PUD, the Transformational Brownfield Incentive with the State of Michigan. The City has not heard anything from Macy’s about a potential closing; however, Macy’s announced they are closing 150 stores nationwide. That is another potential piece of property that needs to be acquired by Lakeside. He stated that Lakeside acquired the mall for $26 million, and he felt the purchase of Lord & Taylor and Sears will be another $20 million, and with Macy’s on top of that, the total acquisition will be close to $50 million, which is five to ten times above what land is actually worth on M-59. He summarized that the $3 million grant will be used to put deposits down on two parcels to allow Lakeside to go through the PUD process and the incentive application process to get everything settled, adopted, and approved so they can Regular City Council Meeting Tuesday, April 2, 2024 Page 31 move forward with the closing on those properties and the redevelopment of Lakeside. Mayor Taylor opened the floor for public comments. • Paul Smith – stated this is confusing, and questioned whether the Plante Moran item is separate. Mayor Taylor explained that Item 8-H was removed from the Consent Agenda and made Consideration Item 9-C, which is what they are discussing now. • Paul Smith – complained the City will be spending money they most likely will not get back; felt this is gambling on a losing deal; does not want the City to use taxpayer money on this project. Moved by Ziarko, seconded by Taylor, RESOLVED, to: 1. Approve the Agreement between city of Sterling Heights and Michigan Economic Development Corporation for grant proceeds to fund the acquisition of real property in connection with the redevelopment of Lakeside Mall and authorize the City Manager to sign all documents consistent with this approval on behalf of the City, and subject to City Attorney review and approval; and, 2. Approve the Sub-Grant Agreement between the city of Sterling Heights and Lakeside OOTB Ventures, LLC to allow for use of grant proceeds to fund the acquisition of real property in connection with the redevelopment of Lakeside Mall and authorize the City Manager to sign all documents consistent with this approval on behalf of the City, and subject to City Attorney review and approval. Councilman Radtke explained he pulled this from the Consent Agenda, not because he does not want to support the Lakeside project, but he is frustrated that the City talks about all of the needs they have and raising revenues to meet those needs, yet this is a proposal to transfer $3 million through a public grant to a private corporation, and this amount could have gone toward trees, roads, or anything else State Representative Nate Shannon wanted to use it on. He felt they Regular City Council Meeting Tuesday, April 2, 2024 Page 32 need more clarity on what they ask their state legislators to do on the City’s behalf. He felt there are so many more needs of a higher priority than giving the Lakeside developers more money. He stated he supported the MOU, and he felt they were given a very fair deal, but he does not know why they did not anticipate these properties would need to be acquired when they purchased the mall “in a fire sale” for $26 million on a $144 million note. He felt this is a waste of money, and he was told that while this money could have been used for other purposes, the grant is so specific that it has to be used to acquire property inside the ring road of Lakeside. He pointed out the City is not actually buying this property, but instead they are losing the grant. He expressed disappointment with Out Of The Box Development and Lionheart Capital because the MOU was signed, and they had indicated they would bring forth a PUD, but it has been over a year. He claimed that “time kills all deals” and he believed the owners are killing this deal. He is opposed to this, and he will be voting no. Mayor Taylor pointed out that, to his knowledge, there are only two properties for sale inside the Lakeside Circle, and that is Lord & Taylor and the former Sears. He indicated, as Mr. Bonner said, they will not be able to acquire either property for $3 million. He has spoken to the owner of the former Sears, and they have a price that is most likely not realistic. He spoke with Outside Of The Box Adventures and they have in mind a more realistic price, but part of the reason he is supporting this is that they will not get this grant if it is not used to acquire one of these two properties, and to acquire either would cost somewhere between $5 and $15 Regular City Council Meeting Tuesday, April 2, 2024 Page 33 million just for one of the properties, using Sterling Heights taxpayer money. He understands the nature of this is to hold out and try to get the top dollar, but the reality is that there are a lot of other state incentives that the Lakeside Mall owners will qualify for and obtain once they control all of the pieces of property at the mall. He added that J.C. Penney and Macy’s have both signed off, so in order for Lionheart, owner of the mall property, to move forward with their PUD, they need to control all of the parcels. Once this occurs, they can go to the State of Michigan and receive a lot of money in grants that they will be entitled to, and they can then close and acquire these two parcels. This is the first step in a very complicated process. He expressed frustration that it is not moving at a faster pace, but it is a complicated deal. A private company owns lakeside, and they will demolish the mall and some, if not most, of the department stores. They will redevelop it with something more in line with people’s shopping habits, living habits, and recreational habits. He emphasized the City will not own it nor will they be developing it. There is a significant market in Sterling Heights for apartments, so he has no doubt this will be a successful project, and he is supporting this. He clarified this money would not be spent on trees, roads, police, or anything else, because the designated use is very specific. Councilwoman Ziarko stated she did not think this would follow the anticipated timeline because of the difficulty in acquiring all of these properties. She felt most people would agree that they need to redevelop that area because it cannot be turned into a wasteland. It will have housing, a hotel, retail, hopefully some Regular City Council Meeting Tuesday, April 2, 2024 Page 34 medical facilities, and even small parks with a walking trail, so there will be something for everyone. She pointed out that will be the sustainable neighborhood they continue to talk about, but they have to work through this process. She commented that between Council, Administration, and their law firm, they have put in so many guidelines to protect the residents of this community, so they are not using their tax dollars to fund this. They have been and are still going out for grants, but they need to take one step at a time. Once the deposit is put on these parcels, it will free up the owners to get more money from the State, and they will be looking into availability of federal funding as well. She emphasized they absolutely do not want the residents to have to pay for it, so they have expanded the TIF area to bring in more money and are seeking grants, but it all takes time. They originally predicted a twelve-year timeline but she would not be surprised to see that extended to fifteen years; however, they are being cautious and acting in the residents’ best interests, adding they may even realize a decrease in what they are paying because of what the redeveloped Lakeside property is bringing in, or the residents will have more amenities. She questioned the verbiage on how the $3 million needs to be spent. Mr. Bonner read the language, noting it is so specific, the money can only be used for Lakeside. He stated in the sixteen years he has been working here, the actual grant dollars coming into the City for economic development purposes have not been much because often the projects do not qualify. The EDA grant for Velocity, the grant in the amount of $850,000 to acquire property in the Corridor Regular City Council Meeting Tuesday, April 2, 2024 Page 35 Improvement Authority, and this grant are the three that come to his mind. He felt it is a bonus to get this type of funding for this project. Councilwoman Ziarko agreed with Mr. Bonner, and she stated she appreciates all of the work he has done on this. She felt this is a mission to see that this project is accomplished, and she will be voting yes for this because it is the future of Sterling Heights. Mayor Pro-Tem Sierawski clarified that this $3 million cannot be used for any other purpose, including sidewalks or trees, but can only be used for the redevelopment of a shopping center, Lakeside Mall. She thanked Representative Shannon for helping them to get this grant, and stressed this money has to be used for this purpose, and they would in no way be able to use this money for any other purpose. She emphasized it is not taxpayer dollars but is a specific grant to be used for this project. Councilwoman Schmidt asked Mr. Bonner as to how far off they are from the matrix that was provided when this project was first submitted to the City. Mr. Bonner replied to inquiry that they are behind schedule in terms of what Lakeside was hoping to do. After glancing at the schedule, he estimated they are about a year behind. He often uses the term referred to by Councilman Radtke, “Time Kills All Deals,” and he indicated that is the case the majority of time; however, with the communications back and forth between the City and the Lakeside owners, the amount of negotiation and renegotiation on a regular basis with all of the department stores has been endless. It has been frustrating for Regular City Council Meeting Tuesday, April 2, 2024 Page 36 them, and he credited the owners for keeping their nose to the grindstone and continuing to move forward to where they are today. If this is approved, he estimated they will submit their PUD application within the next sixty to ninety days. He often says it is easier to redevelop a landfill than it is to redevelop a mall, considering financial and legal restrictions. He felt with Council’s support tonight, they are getting to a good spot to go forward the rest of the way. He anticipated everything would pick up after this step. Councilwoman Schmidt felt they all realized that this is an ambitious project on an ambitious but possibly not realistic timeline, so it is understandable for them to be behind schedule. She is glad to hear there is a lot of activity that goes on behind the scenes. She stated she is in full support of helping this move forward. Councilwoman Koski questioned whether Representative Shannon helped them find this grant specifically for the Lakeside Mall property. Mr. Bonner replied that is correct, with the money to be used for the purpose of acquisition or demolition. Councilwoman Koski questioned whether Out Of The Box is going to buy two properties. She pointed out that, according to their backup material, there is a proposed purchase agreement, and she questioned whether that is for the Sears property. Mr. Bonner replied there are negotiating purchase agreements for both Lord & Taylor and Sears. He replied to further inquiry that they have both been presented with those purchase agreements. They have been negotiated as far as they can Regular City Council Meeting Tuesday, April 2, 2024 Page 37 go up until tonight’s action. Tonight’s action will allow them to move toward the execution of those purchase agreements. Councilwoman Koski questioned if Council agrees to this $3 million tonight, whether they will take them to the seller tomorrow and have them sign the agreements. Mr. Bonner replied he does not know whether it will be tomorrow, but it will be in the short term. He believes it is an agreed-upon purchase price and that all of the major components of the purchase agreement have been finalized, and revision of some small details and final execution is what would occur next. He replied to further inquiry that this applies to both Lord & Taylor and Sears. Councilwoman Koski recalled earlier conversation indicating the City would assist with demolition. She inquired as to whether they are expected to also assist with their funding on this or obtaining a grant for them. Mr. Bonner replied that demolition will come through the Brownfield incentives, and that will primarily be used for demolition and environmental cleanup, etc. He stated that will come through Tax Increment Financing (TIF) so they do not anticipate any other grants for demolition, although they will not stop pursuing them if the opportunity arises. Councilwoman Koski questioned how the Brownfield money is achieved. Mr. Bonner explained the Brownfield Tax Increment Financing would be “pay-as- you-go,” so as they build, create new value, and pay property taxes on that new value, the Brownfield Authority will reimburse them on an annual basis, based on Regular City Council Meeting Tuesday, April 2, 2024 Page 38 the property tax payments. It is similar to what they did with Liberty Park, with the capital redevelopment of that landfill into the Amazon Distribution Center. They create the value, pay their taxes, and the taxes are reimbursed through the Brownfield Authority for their eligible activities. Councilwoman Koski questioned whether this is the residents’ money. Mr. Bonner replied to inquiry the money would be from taxes generated from the specific project that Lakeside is building. He clarified $3 million is the grant that comes from the State of Michigan. Councilwoman Koski questioned whether anything could go wrong with this. Mr. Bonner assured they have safeguards built into the MOU, and because this is related to a real estate transaction, there is always a risk. If it were the City using this money to close on the properties, the worst-case scenario is that they could not close on the properties. The worst-case scenario in this case is that Lakeside does not close on the properties for whatever reason; however, they do not anticipate that happening. This is the next step to getting them to their PUD application and to the Brownfield, two major components that ultimately, from a loan standpoint, triggers loans to move forward with the development process. The incentives are part of supporting that loan to redevelop this property. They do not want the risk to be placed on the City, which is why the grant money is being transferred to Lakeside to take that on. They have talked about this in detail with the Lakeside owners, and they are extremely confident in moving toward this next phase, using these funds to get them to that point. Regular City Council Meeting Tuesday, April 2, 2024 Page 39 Councilwoman Koski hopes that Lakeside has the financial ability to complete the purchases. If they do not, they not only lose their deposit, but she understands there is also a penalty involved. Mr. Bonner replied he is not familiar with the penalty. Councilwoman Koski stated there is a $1 million penalty. Mr. Vanderpool clarified that if the property is not closed on and Out Of The Box Ventures have already received the $3 million, pursuant to the agreement they are considering tonight, they would be required to pay the $3 million back to the State of Michigan. He believed the $1 million penalty referred to by Councilwoman Koski is that there are phases in the draft purchase agreement that the purchase price goes up if they do not close within six-month phases, for a total of $1 million. He stated he cannot elaborate on that publicly. Mr. Bonner stated that is part of the default provision in the agreement with the Michigan Economic Development Corporation. Councilman Yanez has been doing some research on the value of Lionheart Capital, noting they own many properties across the United States. He is fairly certain if they did not receive this $3 million grant, they would continue to purchase these properties. He felt this is a ridiculous use of the people’s money, and it is just helping to boost the bottom line of a private entity. He stated he will be voting no on this. Regular City Council Meeting Tuesday, April 2, 2024 Page 40 Councilman Radtke stated he will also be voting against this. He does not believe the City should have asked Representative Shannon for this money, but they should have asked for $3 million in some other way, shape, or form. Mayor Taylor agreed that $3 million is a lot of money, but he feels very strongly about the long-term investment of Lakeside Mall. He explained Lakeside Mall currently has a valuation of very little, and after hundreds of millions of dollars are invested in Lakeside Mall, this will create a lot of revenue. The TIF will take some time to be paid off, but one it is, it will generate millions and millions of dollars in annual revenue to the City of Sterling Heights. It would be nice to have $3 million to spend on something that would have an immediate impact, this is a long-term investment. He pointed out the City Council did things thirty years ago that are paying dividends for the City today. While they will not see the immediate impact during any of their terms, it will have a huge positive impact on the taxpayers down the road. He stated he is comfortable voting in favor of this. Roll Call Vote: Yes: Sierawski, Taylor, Ziarko, Schmidt. No: Yanez, Koski, Radtke. Absent: None. The motion carried (4/3). 10. COMMUNICATIONS FROM CITIZENS Mayor Taylor opened the floor for public comments. • Mike Gretel – talked about the new refuse contract; questioned whether they are required to place garbage in bags in the containers or whether the garbage is to be placed loose in the containers; talked about bundling branches and how many 6-inch diameter branches can be bundled together. • Paul Smith – talked about a piece of property that was supposed to be used for a daycare center; it was built but never had kids attend, so the City Regular City Council Meeting Tuesday, April 2, 2024 Page 41 ended up with it, and it’s now known as the Velocity Center; suggested a new mixed-use development for the property and showed prospective plans, referring to it as “Velocity Towers.” • Maria – Board Secretary of Autism Society of Greater Detroit; stated she lives with autism every day, and everyone is unique in their own way; challenged everyone in April, which is Autism Acceptance Month, to help each other solve problems together. • Daniel – stated he also has autism; thanked Sterling Heights for passing the Resolution acknowledging the month of April as Autism Acceptance Month, part of a nationwide acceptance program; noted this will bring attention to the events the Autism Society is holding at this time; he has made many friends and does not feel alone through these activities; Sterling Heights will be a highlight on their social media list for being a shining example over the years of how local government can engage and support the inclusion of people in all things. • Heather Zielinski – Executive Director of the Autism Society of Greater Detroit; explained their mission is to connect all members of the Autistic community with the amazing resources available in the State of Michigan; they seek grants as well as partners in the community to help them create solutions and remove obstacles that stand in the way, help build connections, and open doors; encourage everyone to get involved with their organization; invited them as they partner with the Detroit Tigers for Autism Acceptance Month in their 2nd Annual Day at the Ballpark on April 14, with tickets available for $20 on their website: www.autismsocietygreaterdetroit.com; they are offering free tickets for anyone with a disability, and tickets for $5 so they can include their friends and family members; thanked Council for bringing attention to April as Autism Acceptance Month. • Unidentified man – commended a veteran who attended the last meeting and speaking up against genocide in Palestine; talked about Middle East conflict and people’s reactions to it; talked about seven lies that have been debunked. • Unidentified man – talked about Middle East conflict; stated he is opposed to United States being involved on either side; felt America should be first and countries involved in the Middle East conflict should fight their own wars. Regular City Council Meeting Tuesday, April 2, 2024 Page 42 • Unidentified man – stated he is looking forward to Visioning 2040; commended all who have made this a great, beautiful city with a lot of great amenities; stated he loves Dodge Park, and emphasized residents in this City are very fortunate; thanked City Council and all involved for doing a great job. • Nick – questioned whether the Resolution that was on the Consent Agenda this evening (Item 8-R) passed. Mayor Taylor replied affirmatively. • Nick – encouraged that Council consider passing another resolution that is more specific to Gaza, demanding an immediate ceasefire; he specified the wording he would like to see in the resolution. • Ken Nelson – stated he was contacted after the last meeting by several people who told him his comments were cut off while he was talking, adding he was not given the time to finish his thoughts; questioned who mutes the microphone and the directive for that person; commented it is a form of local censorship, which has to stop; pointed out the carpet should be bolted to the floor in certain areas, especially where it has become a trip hazard. 11. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool stated he has nothing further to add this evening. Councilman Radtke requested the City, without objection, put together an action plan for the open space, as well as for sidewalks, trails, pathways, and trees. He hopes they can produce options that Council can discuss and hopefully propose a 2040 plan to move the City forward, much like the ReCreating Recreation Initiative that moved the 2030 plan forward. Mayor Taylor inquired as to whether Council has any objections to that request. There were no objections. Regular City Council Meeting Tuesday, April 2, 2024 Page 43 Mayor Taylor felt those discussions have already started, so Administration most likely has good direction on this request. Mr. Vanderpool replied to inquiry that he has direction on Councilman Radtke’s request. Councilman Radtke stated this will be a busy month with the budget meetings. He likes budget season because it is all about possibilities, and he is looking forward to working with his colleagues to pass another great budget. Councilwoman Ziarko attended an event at the library last night, called Page Turners Social, and it was hosted by the commUNITY Alliance. Everyone had the opportunity to come in, bring their own book, read for a while, and then socialize with other people to get ideas about what they read. It was a lot of fun and well- attended, and she hopes they hold that event again. She thanked the commUNITY Alliance for organizing this fun event. Councilwoman Schmidt invited all residents to the Police Honor Guard Annual Pasta Fundraiser being held at Penna’s of Sterling next Thursday, April 11, 2024. There is great food, entertainment for the kids, and amazing raffles, and it is a great opportunity for the community to show their support for the Police Honor Guard because they are always supporting the community. She stated she is not sure of the time but assumed it is on their website for those interested in attending. Councilman Yanez thanked his colleagues for supporting the resolution designating April as Autism Acceptance Month. He commended the speakers for doing a great job, and in looking at their 2040 Guiding Principles, they include Regular City Council Meeting Tuesday, April 2, 2024 Page 44 everything for all citizens, including those with special needs, and he felt the City has done a great job with that so far. He noted that Parks and Recreation has a great adaptive program for people with special needs. Councilwoman Koski questioned whether Mr. Vanderpool has heard any more about the former Fillmore Elementary and whether that will be turned into a center for challenged children and young adults. Mr. Vanderpool replied affirmatively, noting they have started the demolition. They have not yet seen the final plans, but they promised to share them. He explained the Macomb Intermediate School District (MISD) is legally an autonomous governmental agency, so they do not go through the normal site plan review process, but they assured they are willing to work with the City in certain areas of the development. He anticipates they will be starting construction in the near future, and as soon as the plans are available, he will share them with City Council. Councilwoman Koski felt it would great for the City to partner with them and assist them with their activities. Mr. Vanderpool stated the City has a long history of partnering with MISD on their special recreation programming. The Superintendent has already informed him that he looks forward to continuing that partnership in and around that facility. 11. UNFINISHED BUSINESS There was no unfinished business. 12. NEW BUSINESS There was no new business. Regular City Council Meeting Tuesday, April 2, 2024 Page 45 13. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Mr. DeNault stated are no items for Closed Session this evening. 14. ADJOURN Moved by Ziarko, seconded by Schmidt, RESOLVED, to adjourn the meeting. The motion carried (7/0). The meeting adjourned at 10:22 p.m. MELANIE D. RYSKA, City Clerk