Local Development Finance Authority

CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY MINUTES OF THE MEETING February 18, 2009– 5:30 P.M. CITY CENTER – Council Chambers Approved Victor Martin called the meeting to order at 5:35 p.m. Pledge of Allegiance Members present at roll call: Stephen Cassin, Lori Doughty, Joseph Dueweke, John Lamerato, John Lettang, Victor Martin, David Wilson, Zac Zachary, Irene Spanos Members absent: Richard Kincaid excused, David Walsh Also in attendance: Luke Bonner, Economic Development Manager; Jim Buhlinger, City Treasurer, Teresa Jarzab, Recording Secretary Motion to Approve the Agenda Moved by Dueweke, supported by Lettang, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of Special Meeting December 22, 2008 Moved by Wilson, supported by Dueweke, to approve the Minutes as presented. Ayes: All Nays: None Motion carried. New Business Mr. Bonner gave a presentation regarding the Development agreement between BAE Systems Land and Armaments L.P., the Local Development Finance Authority, and the City of Sterling Heights for property commonly know as 34201 Van Dyke Road (Formerly the TRW Site). Mr. Martin questioned why there wasn’t a specific amount for the insurance. Mr. Bonner responded that the Cities’ Risk Manager Mark Carufel was okay with the agreement. Mr. Martin questioned the reimbursement period limit. Mr. Bonner stated that there is no limit on time for reimbursement for the LDFA, unlike other districts that do have limits. Mr. Martin stated that in order for any reimbursements to occur that first they have to pay their taxes, and be paid in full, second any costs that the City incurs get paid next, third they get reimbursed. Mr. Bonner responded that the City has not determined how we will be reimbursed, whether it is in the first year or over several years. Mr. Zachary questioned who would make the decision to take the money up front. Mr. Bonner stated that City Administration would make that decision. Ms. Spanos questioned when would this be signed. Mr. Bonner replied that he would like it to be signed tonight, to go to the City Council on March 2, 2009. Motion to recommend approval of the Local Development Finance Authority Development Agreement between the Sterling Heights Local Development Finance Authority, the City of Sterling Heights, and BAE Systems Land and Armaments L.P. Moved by Dueweke, supported by Zachary, to approve Motion Ayes: All Nays: None Motion carried Mr. Bonner gave an update on the expansion of the LDFA district. Mr. Bonner explained that the City Council starts the process and it was before the Council on February 17, 2009. The new district would encompass the entire industrial corridor, Fourteen Mile to Nineteen Mile, Mound to Van Dyke. Mr. Martin questioned that if we do expand the district that it will include the Incubator. Mr. Bonner stated yes. Mr. Lamerato questioned if there were any other authorities already in the area that the expanded district would include. Mr. Bonner replied no, and that Brownfield projects would still be eligible in the district. Old Business None Board Members Report None Public Comment None Adjournment Moved by Dueweke, supported by Spanos. Ayes: All Nays: None Motion carried. The meeting adjourned at 5:58 p.m. TJ Minutes Approved 05-20-09 John Lettang, Secretary