Local Development Finance Authority

CITY OF STERLING HEIGHTS Regular Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY CITY OF STERLING HEIGHTS 40555 UTICA ROAD 586-446-2730 CITY COUNCIL CHAMBERS September 21, 2011 5:30 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF JULY 13, 2011 NEW BUSINESS 1. To approve the building name change from Macomb Incubator to Velocity. 2. To approve the Alcoholic Beverage Policy at Velocity, 6633 18 Mile Road. OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY MINUTES OF THE SPECIAL MEETING July 13, 2011– 5:30 P.M. 40555 Utica Road, Sterling Heights, MI 48313 586-446-2730 City Council Chambers Draft Victor Martin called the meeting to order at 5:35 p.m. Pledge of Allegiance Members present at roll call: David Corba, Lori Doughty, John Lettang, Victor Martin, Casey Sobczak, David Wilson, Zac Zachary Members absent: Stephan Cassin, John Lamerato, Irene Spanos, (excused) Richard Kincaid, (non-excused) Also in attendance: Denice A. Gerstenberg, Business Development Manager, Mark Carufel, Puchasing/Risk Manager Motion to Approve the Agenda as amended Moved by Zachary, supported by Wilson, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of Regular Meeting May 18, 2011 Moved by Wilson, supported by Zachary, to approve the Minutes as presented. Ayes: All Nays: None Motion carried. New Business Ms. Gerstenberg presented the following information to the board. The City took donation of the building in December 2009. In April 2010, the City submitted an application to the Economic Development Administration to complete renovations to the building located at 6633 18 Mile Road. In September 2010, the EDA approved the Award and on June 7, 2011, the EDA authorized the City/LDFA to advertise for construction bids for the Project. Bids were received on June 28 and the contractor is TH Marsh. TH Marsh has been in business since 1954, with offices in Royal Oak as well as North Carolina. They have done many projects that are familiar to the LDFA Board, including, work at the DMC, and Karamanos Cancer Institute. They did the Beaumont POB in Sterling Heights on Dequindre. We met with the contractor on Monday. The project manager has been there for 7 years, the superintendent for 18 years and they are aware of the time constraints associated with this project and are confident they can meet the schedule. They have been authorized to work weekends and evening as needed. Pending receipt of the EDA amended award letter, the contractor expects to have their contract and insurance documents in this week with plans to start on Monday. Mr. Lettang and Mr. Corba were surprised that there were only two bidders. Ms. Gerstenberg replied that the project was actually out to bid earlier in the year and a pre-bid meeting was held, then the receipt of bids was delayed pending negotiations with EDA. Once EDA gave approval to go ahead, another pre-bid meeting was held and approximately 20 persons attended. The City had expected about 4-5 bidders. One possible explanation for the lack of bidders is that downsized companies have fewer staff members and are only bidding on jobs they are confident they can get, this job could have been a little confusing and the time constraint could have scared some bidders. Motion to approve the bid for a general contractor to repair, remodel, and improve 6633 18 Mile Road to T.H. Marsh Construction, 32121 Woodward Avenue, Suite 300, Royal Oak, MI 48073 at a base bid cost of $372,000.00 and authorize Victor Martin, Chair of the LDFA, to sign the contract on behalf of the LDFA, conditioned upon receipt of an acceptable amended award from the EDA and execution of it by the City and the LDFA. Moved by Wilson, supported by Sobczak to approve the motion Ayes: All Nays: None Motion carried. Motion to approve the fiscal year 2011/2012 schedule of regular Local Development Financing Authority meetings and direct the City Clerk to post a notice in accordance with Michigan’s Open Meetings Act. Moved by Wilson, supported by Lettang to approve the motion Ayes: All Nays: None Motion carried. Old Business None Board Members Report None Public Comment Mr. Paul Smith spoke during public comment. Mr. Smith questioned who was going to pay the overtime for the contractor working weekends and evenings. Ms. Gerstenberg stated that the contract documents clearly stated that the cost of the project must take into consideration the timetable. Mr. Sobczak noted that the EDA rules required a lump sum bid and that the price of $372,000 was the total price, regardless of evening or weekend hours worked. Mr. Smith asked how long the companies would stay in the incubator and was told that companies have one-year leases and are re-evaluated annually. Mr. Martin stated that he is confident that the incubator model works well and will help businesses grow and succeed in Michigan. Adjournment Moved by Zachary supported by Wilson to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 6:00 p.m. TJ Minutes Approved 9/21/11 John Lettang Secretary  LDFA Business Sterling Heights, Michigan 9/21/2011 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To Approve a Name Change to the Building located at 6633 18 Mile Road from Macomb Incubator to Velocity. Submitted By: Denice A. Gerstenberg, Business Development Manager, 446.2731 Executive Summary In December 2009 A.J. Damman donated 6633 18 Mile Road to the City of Sterling Heights Local Development Financing Authority. Section 13 of the Donation states that the building on the property shall be named the Macomb Incubator and, in the future while being used as a business incubator, not be named anything other than the Macomb Incubator without the prior written consent of the Donor (Damman) and the Authority (LDFA). The Macomb Incubator partners, Macomb County, Oakland University and the City of Sterling Heights, have proposed renaming the building Velocity. It is anticipated that Velocity will be widely recognized as a collaborative center that serves as a hub for business incubation & economic development targeting defense, homeland security & advanced manufacturing. Through the expertise and initiative of its partners, Velocity is intended to be a catalyst for launching, developing, retaining and attracting commercial enterprise within its target industries. At Velocity, Oakland University will operate the Macomb-OU INCubator, which provides entrepreneurial resources, business solutions, and proactive support to help start-up companies in the target industries. The University will also offer research, training and consulting services through the Pawley Lean Institute and the School of Engineering and Computer Sciences’ Center for Robotics and Unmanned Systems (“CRUS”). Macomb County, with support from the Michigan Economic Development Corporation (MEDC), will provide comprehensive resources and direct assistance for over 500 defense-oriented companies doing business within the Defense Corridor and throughout the region. The Michigan Small Business and Technology Development Center (MI—SBTDC) will provide tools to assist the area’s small businesses to take root, grow, create jobs, and in the process positively impact the regional and state economy. The City of Sterling Heights Economic Development Office will provide innovative and progressive stabilization, diversification, retention and/or expansion services in order to grow the economic base and provide quality employment opportunities within the county and the region. On August 23, 2011, A.J. Damman approved the name change from Macomb Incubator to Velocity. It is requested that the LDFA approve same. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, To Approve a Name Change to the Building located at 6633 18 Mile Road from Macomb Incubator to Velocity.  LDFA Business Sterling Heights, Michigan 9/21/2011 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To Approve the Alcoholic Beverage Policy at Velocity, 6633 18 Mile Road Submitted By: Denice A. Gerstenberg, Business Development Manager, 446.2731 Executive Summary The Sterling Heights Local Development Financing Authority (“LDFA”) allows tenants, partners, and community members to use the Atrium, the Innovation Lab, and other meeting rooms and facilities at the VELOCITY building located in Sterling Heights at 6633 18 Mile Road in accordance with adopted Meeting Room Policies and Procedures. Such users may from time to time wish to host or participate in activities or events where alcoholic beverages (beer, wine, and/or spirits) are served. This policy drafted by the City Attorney is intended to provide the necessary guidelines regarding the use and serving of alcoholic beverages at VELOCITY. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, To Approve the Alcoholic Beverage Policy at Velocity, 6633 18 Mile Road  ALCOHOLIC BEVERAGE POLICY AT The Sterling Heights Local Development Financing Authority (“LDFA”) allows tenants, partners, and community members to use the Atrium, the Innovation Lab, and other meeting rooms and facilities at the VELOCITY building located in Sterling Heights at 6633 18 Mile Road in accordance with adopted Meeting Room Policies and Procedures. Such users may from time to time wish to host or participate in activities or events where alcoholic beverages (beer, wine, and/or spirits) are served. This policy is intended to provide the necessary guidelines regarding the use and serving of alcoholic beverages at VELOCITY. If a user of the VELOCITY Building (other than the LDFA or the City) wishes to offer or furnish alcoholic beverages at an activity or event to be held the VELOCITY Building, such user must first submit a written application to VELOCITY for approval. The applicable approval procedure depends upon whether or not the user is charging a fee or requiring a donation to attend an activity or event, or a fee to cover or defray the cost of any food, beverage, equipment, or other service provided at the activity or event. Procedure Where User Charges a Fee or Accepts a Donation for Attendance or Collects Money for Food, Beverages, or Other Services Provided at Activity or Event If the user charges a fee or requires a donation from an individual, company, or organization to attend an activity or event held at the VELOCITY Building at which alcoholic beverages will be served, or imposes a fee or requires a donation to cover or defray the cost of any food, beverage, equipment, or other service provided at the activity or event, the user must arrange to have a non- profit organization (church, school, or other legitimate non-profit organization) apply for and secure a special license from the Michigan Liquor Control Commission (“MLCC”) for the sale of beer and wine only or for beer, wine and spirits for consumption on the premises if the user intends to serve alcoholic beverages. If approved, the non-profit organization must purchase all of the alcoholic beverages from a MLCC licensee, and all profits must be distributed to the non- profit organization. This special license is required even if the person, company, or organization hosting the activity or event does not intend to charge a separate charge or donation for an alcoholic beverage. The special license application form is available online at the MLCC website. There are very specific MLCC requirements for issuance of special non-profit organization licenses, and processing by the MLCC takes at least 10 business days. A copy of the special license obtained by the non-profit organization for the benefit of the user shall be furnished to the VELOCITY The user and the non-profit organization shall be required to complete and deliver an executed Alcoholic Beverage Rider to Room Reservation Agreement, along with liquor liability and general liability insurance coverage satisfactory to the City with the LDFA and the City named as additional insured parties, and an executed indemnification agreement acceptable to the City’s Risk Manager.  Procedure Where User Imposes No Fee and Does Not Accept a Donation for Attendance or for Food, Beverages, or Other Services at Activity or Event If the user does not charge any fee or accept any donation upon an individual, company, or organization to attend an activity or event held at the VELOCITY Building at which alcoholic beverages will be served, or a fee to cover or defray the cost of any food, beverage, equipment, or other service provided at the activity or event, the user will not be required to have a non- profit organization obtain any special permit or license from the MLCC to be able to serve alcoholic beverages at the activity or event. The user will still be required to complete and deliver an executed Alcoholic Beverage Rider to Room Rental Agreement, along with liquor liability and general liability insurance coverage satisfactory to the City, with the LDFA and the City named as additional insured parties, and an executed indemnification agreement in favor of the LDFA and the City acceptable to the City’s Risk Manager. Responsibility for Serving Alcoholic Beverages The user and/or non-profit organization hosting the activity or event and/or serving the alcoholic beverages shall be jointly responsible for compliance with all laws of the State of Michigan and rules of the MLCC relating to the sale, furnishing, and consumption of alcoholic beverages. The user and non-profit organization receiving a special license, if any, shall be jointly responsible for ensuring that all those who will be selling, furnishing, or serving alcoholic beverages are familiar with and will follow Michigan’s liquor laws and rules of the MLCC relating to the sale, furnishing, and consumption of alcoholic beverages at the VELOCITY Building, including but not limited to those regulating the sale or furnishing of alcoholic beverages to minors or to visibly intoxicated persons. All costs of securing a special license from the LCC and for use of the VELOCITY Building shall be borne by the applicant user.