Local Development Finance Authority

CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY MINUTES OF THE MEETING July 21, 2010– 5:30 P.M. CITY CENTER – Council Chambers Approved Victor Martin called the meeting to order at 5:30 p.m. Pledge of Allegiance Members present at roll call: Lori Doughty, John Lettang, Victor Martin, Casey Sobczak, Irene Spanos, David Wilson, Zac Zachary Members absent: John Lamerato, excused; Richard Kincaid non- excused Also in attendance: Luke Bonner, Economic Development Manager, Rick Sanborn, City Treasurer, Clark Andrews, City Attorney, Dr. David Spencer, OU INCubator, Chris Scally Oakland University Motion to Approve the Agenda Moved by Wilson, supported by Doughty, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of Special Meeting May 19, 2010 Moved by Wilson, supported by Sobczak, to approve the Minutes as amended. Ayes: All Nays: None Motion carried. New Business Mr. Bonner gave an overview of the contract. Mr. Spencer gave a presentation regarding the AT& T specifications for the phone and data service. Mr. Andrews stated that the contract has been reviewed by both the attorneys’ office and the Cities IT Manager Lois Gates and is consistent with the current City contracts and rates. Dr. Spencer stated that there are no City funds for this project; all funds are coming to the incubator from state and federal funds that have already been received. Mr. Martin questioned what the monies were being paid to AT&T for. Dr. Spencer replied that it was for hardware, installation and recurring service payments. All tenants will have their own phone bills, but will have access for the data service from the incubator. General discussion regarding future expansion of the phone and data lines ensued. Motion to approve the contract between Local Development Finance Authority and AT&T for communication and data services to be provided to 6633 18 Mile Road. Contract will be financially supported by the Macomb OU-INCubator. Moved by Zachary supported by Sobczak to approve Motion Ayes: All Nays: None Lori Doughty abstained Motion carried Dr. Spencer gave a brief update on the entire INCubator project. Catering company coming in, donation of furniture, grants have been received for repairs and remodeling, notice of a state grant has been received that the INCubator will be receiving, again for remodeling, notification of the New Economy initiative has awarded the INCubator $225,000 a year for the next three years to help with the operation of the incubator. Mr. Martin questioned if the Fourteen Mile location is no longer being used for the incubator. Dr. Spencer indicated that yes, the building is almost full with defense industry businesses, so we are moving the incubator to the 18 Mile location. Mr. Bonner gave an overview of Kosch Food Services Inc. Mr. Andrews gave and overview of the lease agreement. Discussion ensued about the dates of the lease agreement, pending the occupancy permits and health department permits, dates are not definitive. Mr. Martin noted that section 2 item f, should not have Luke Bonner as the contact person, Mr. Andrews stated that we will change that. Motion to approve the lease agreement between the Local Development Finance Authority and Kosch Food Service, Inc. for the lease of the 1480 square foot Kitchen, 201 square feet of storage space designated as MEN 2, and related facilities as amended. Moved by Wilson, supported by Lettang to approve Motion Ayes: All Nays: None Motion carried Mr. Bonner stated that the lease agreement for 7205 Sterling Ponds Court expired on July 1, 2010, and that when the tax increment finance plan was approved for the SMART Zone they included that address for the TIF. Since the SMART Zone boundaries have been set they are not required to do any formal actions to make change for any further locations, and Mr. Bonner would like to make these changes to the Plan. Motion to authorize the Economic Development Manager to add the property located at 6633 18 Mile Road and to remove the property located at 7205 Sterling Ponds Court from the First Amended and Restated Development Plan and Tax Increment Finance Plan. Moved by Zachary, supported by Lettang to approve Motion Ayes: All Nays: None Motion carried Old Business Mr. Martin questioned the progress of the playground equipment removal, has it been removed. Mr. Bonner stated that yes it is almost completely removed. Board Members Report None Public Comment None Adjournment Moved by Spanos supported by Sobzack to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 6:30 p.m. TJ Minutes Approved 09/15/10 John Lettang Secretary