Local Development Finance Authority

CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY MINUTES OF THE MEETING May 20, 2009– 5:30 P.M. CITY CENTER – Council Chambers Approved Victor Martin called the meeting to order at 5:38 p.m. Pledge of Allegiance Members present at roll call: Lori Doughty, Joseph Dueweke, John Lamerato, John Lettang, Victor Martin, David Wilson, Zac Zachary, Members absent: Stephen Cassin excused, Irene Spanos excused, Richard Kincaid excused, David Walsh Also in attendance: Dr. David Spencer, Executive Director SmartZone Development, Luke Bonner, Economic Development Manager; Jim Buhlinger, City Treasurer, Teresa Jarzab, Recording Secretary Motion to Approve the Agenda Moved by Dueweke, supported by Doughty, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of Special Meeting February 18, 2009 Moved by Lettang, supported by Lamerato, to approve the Minutes as presented. Ayes: All Nays: None Motion carried. New Business 1) Mr. Bonner gave presentation regarding the first amendment to the Sterling Heights SmartZone agreement. Mr. Bonner explained the existing SmartZone boundaries, and the new SmartZone boundaries, which include the Incubator site and the old TRW site. RESOLVED, to recommend approval of the First Amendment to the Sterling Heights SmartZone Agreement between the City of Sterling heights, the City of Sterling Heights Local Development Finance Authority, and the Michigan Economic Development Corporation. Moved by Wilson, supported by Zachary, to approve Motion Ayes: All Nays: None Motion carried 2) Dr. Spencer from Oakland University gave a presentation about the Incubator located in Sterling Heights, which is a collaboration between Macomb County, Sterling Heights and the State of Michigan. Dr. Spencer gave an overview of how the incubator would work. Mr. Martin questioned what the qualifications of a company’s size, or how new does a company have to be to work with the incubator? Dr. Spencer noted that there is no policy, more of an analysis of the applicant to see if they can be of help to them. Mr. Martin questioned if the companies get to use the space for free. Dr. Spencer replied no, they will have a lease with the owner and there is a cost for the space. There are also fees for the Advisory board. Dr. Spencer added that the number one need is for interns. Mr. Zachary questioned if the interns were paid. Dr. Spence said yes, the University does not encourage unpaid internships. Mr. Lettang questioned when a company graduates do they move out of the area. Dr. Spencer replied that they ask the company to take a first meeting with the local community. They encourage them to stay in Sterling Heights, if not there then, Macomb County, if not there then SE Michigan, or Michigan. Dr. Spencer added that only Michigan Corporations are able to work with incubator. Mr. Lettang asked if the last company to graduate stayed in the area. Dr. Spencer replied yes. Ms. Doughty questioned that between the Rochester Hills, and Sterling Heights incubator locations, who determines which company goes where. Dr. Spencer replied that it is the company’s decision, but that they try to steer them to the proper location depending on what type of business they are doing. If they were doing advanced manufacturing then they would suggest the Sterling Heights location. Mr. Dueweke asked how long the Rochester Incubator has been up and running? Dr. Spencer stated that it opened in January of 2006. Mr. Dueweke questioned how many have graduated? Dr. Spencer replied one. Dr. Spencer stated that the graduated company started with 14 employees and left with 45. It takes between 2-5 years to take them through the complete process. Dr. Spencer stated the there are some failures. Mr. Martin asked to please explain the process of approval to join the incubator and would this board need to take any actions. Dr. Spencer stated that the Oakland University Incubator, Management Team and OU legal counsel, completes a review of each applicant. RESOLVED, to recommend approval of the Affiliated Party Agreement between the City of Sterling Heights, City of Sterling Heights Local Development Finance Authority, and Oakland University. Moved by Dueweke, supported by Zachary, to approve Motion Ayes: All Nays: None Motion carried Old Business None Board Members Report None Public Comment None Adjournment Moved by Dueweke, supported by Lettang. Ayes: All Nays: None Motion carried. The meeting adjourned at 6:15 p.m. TJ Minutes Approved 09-30-09 John Lettang, Secretary