Local Development Finance Authority

CITY OF STERLING HEIGHTS Local Development Finance Authority/SmartZone Board AGENDA FOR REGULAR MEETING Wednesday October 20, 2010 5:30 PM LOCATION: CITY COUNCIL CHAMBERS, CITY HALL, 40555 UTICA ROAD MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE TO THE FLAG ROLL CALL APPROVAL OF AGENDA APPROVAL OF THE MINUTES OF SEPTEMBER 15, 2010 CONSIDERATION 1. To consider the approval of the grant award from Economic Development Administration (EDA) to the Local Development Finance Authority (LDFA) in the amount of $391,482 with a grant match of $20,604 for a total project amount of $412,086 to make upgrades to the building located at 6633 18 Mile Road, an LDFA owned facility. 2. To consider the approval of the City of Sterling Heights to be the lead agency on behalf of the LDFA to implement the EDA grant award for facility upgrades. REPORTS FROM BOARD MEMBERS UNFINISHED BUSINESS NEW BUSINESS ADJOURN  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY MINUTES OF THE MEETING September 15, 2010– 5:30 P.M. CITY CENTER – Council Chambers Draft Victor Martin called the meeting to order at 5:33 p.m. Pledge of Allegiance Members present at roll call: Stephan Cassin, David Corba, Lori Doughty, John Lamerato, John Lettang, Victor Martin, Casey Sobczak, David Wilson Members absent: Irene Spanos, excused; Richard Kincaid and Zac Zachary non- excused Also in attendance: Luke Bonner, Economic Development Manager, Rick Sanborn, City Treasurer Motion to Approve the Agenda Moved by Lettang, supported by Sobczak, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of Special Meeting July 21, 2010 Moved by Wilson, supported by Doughty, to approve the Minutes as amended. Ayes: All Nays: None Motion carried. New Business Mr. Bonner gave an overview of the lease agreement with General Dynamics and why General Dynamics is leasing this space. To approve the lease agreement between the Local Development Finance Authority and General Dynamics Land Systems, Inc. for the lease of a 350 square foot office designated as Lab 1-E. Moved by Lamerato supported by Lettang to approve Motion Ayes: All Nays: None Motion carried Mr. Bonner introduced Steve Cassin from the Macomb County Planning and Economic Development. Mr. Cassin discussed the use of the lease space, by the Senior Economic Developers, involved in Defense, Small Business Technical Development Center, Reference Center for Entrepreneurship. Mr. Martin stated that he thinks that it is phenomenal that the county is placing these resources within the City. To approve the Letter of Agreement to Occupy Space between the Local Development Finance Authority and the Macomb County Department of Planning and Economic Development, for Lab 1-I and 1-B, which consist of 218 square feet and 111 square feet respectively. Moved by Sobczak, supported by Wilson to approve Motion Ayes: All Nays: None Stephan Cassin abstained Motion carried Old Business Mr. Bonner updated the board on the BAE project. The R & D Lab is constructed and open, they are starting on construction of the second phase. Mr. Bonner updated the board on the Incubator. Mr. Bonner introduced David Corba from Macomb Community College, newest member of the board. Board Members Report None Public Comment None Adjournment Moved by Lettang supported by Cassin to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 5:45 p.m. TJ Minutes Approved 10/20/10 John Lettang Secretary  LDFA/SMARTZONE Sterling Heights, Michigan 10/20/10 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Approval of the grant award from Economic Development Administration (EDA) to the Local Development Finance Authority (LDFA) in the amount of $391,482 with a grant match of $20,604 for a total project amount of $412,086 to make upgrades to the building located at 6633 18 Mile Road, an LDFA owned facility. Submitted By: Luke Bonner, Economic Development Manager, 586-446-2386 or lbonner@sterling-heights.net (Presentation) Executive Summary On September, 20, 2010, the City of Sterling Heights LDFA was awarded a $391,482 grant from the Federal Economic Development Administration to upgrade the newly donated facility by the AJ Damman Co. The building will house a number of business development services, which include, primarily, the Macomb OU-INCubator. There is a $20,604 grant match requirement for a grand project total of $412,086. The matching funds are currently available in the LDFA/SmartZone account. The grant will be used to fund technology upgrades and building improvements to the facility, located at 6633 18 Mile Road west of Van Dyke. AJ Damman Co, donated the 12-acre site to the city’s Local Development Finance Authority (LDFA) December of 2009. The improvements will make the building habitable as office space, which is a transition of its former use as a day care. Construction is required to commence 6 months after the award date of September 20, 2010, and be completed 12 months after the award date. The Public Services Manager, Denice Gerstenberg will oversee the implementation and management of this project. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, To approve the grant award from Economic Development Administration (EDA) to the Local Development Finance Authority (LDFA) in the amount of $391,482 with a grant match of $20,604 for a total project amount of $412,086 to make upgrades to the building located at 6633 18 Mile Road, an LDFA owned facility, and authorize the Chairman to sign the grant award documentation. Ayes: Nays:  LDFA/SMARTZONE Sterling Heights, Michigan 10/20/10 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Approval of the City of Sterling Heights to be the lead agency on behalf of the LDFA to implement the EDA grant award for facility upgrades. Submitted By: Luke Bonner, Economic Development Manager, 586-446-2386 or lbonner@sterling-heights.net (Presentation) Executive Summary The original application for the EDA grant was submitted by the City of Sterling Heights. On August 31, 2010, the EDA general counsel office requested the grant application be signed by the Chairman of the Local Development Finance Authority and returned the same day. The Chairman of the LDFA, Mr. Vic Martin, was available that day to sign the signature pages of the grant application, which were subsequently returned to the EDA in the required time frame. However, since the liaisons and staff for the LDFA are provided by the City of Sterling Heights, the EDA is requesting the City of Sterling Heights act as the lead agency for the implementation of this project on behalf of the LDFA. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, To approve the City of Sterling Heights as the lead agency on the EDA grant award. Ayes: Nays: The following language may be used as a guideline when requesting grantees to draw up lead agency agreements: Lead Agency Agreement for EDA Project # " Legal Name ofRecipient #1. Legal Name ofRecipient #2, Legal Name of Recipient #3... • agree that Legal Name ofthe Recipient designated as lead agent has been designated the lead agent for EDA Project # EDA assigned number . The lead agent is designated to act with full legal authority to bind the Legal names ofALL Recipients including the lead agent and to act as the official representative ofthe Recipients in connection with all actions necessary to complete this Project. " Authorized Representative for Recipient #1 Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Printed Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date: _'_ _ _ _ __ Authorized Representative for Recipient #2 Signature: _'_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Printed Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date: _ _ _ _ _ __ Authorized Representative for Recipient #3 Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Printed Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date: _ _ _ _ _ __ Rev. 04119/2010