Local Development Finance Authority

CITY OF STERLING HEIGHTS Special Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 40555 UTICA ROAD 586-884-9322 CITY COUNCIL CHAMBERS November 14, 2012 5:30 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF October 17, 2012 Regular Meeting NEW BUSINESS 1. To approve the Standard Lease Agreement and Standard Lease Agreement (Executive In Residence) for Tenants of the Macomb-OU Incubator located at 6633 18 Mile Road 2. To approve the Lease Agreement between Brar Techonolgy and CFO Leasing, and the Local Development Finance Authority (LDFA). 3. To approve the Lease Agreement between Baker and Company Enterprises, Inc. (d.b.a. AdviCoach of Michigan), and the Local Development Finance Authority (LDFA). 4. To approve the Lease Agreement between The Metiss Group, and the Local Development Finance Authority (LDFA). 5. To approve the Lease Agreement between Bianco and Company, PLC, and the Local Development Finance Authority (LDFA). OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY MINUTES OF THE REGULAR MEETING October 17, 2012– 5:30 p.m. 40555 Utica Road, Sterling Heights, MI 48313 586-446-2489 City Council Chambers Victor Martin called the meeting to order at 5:33 p.m. Pledge of Allegiance Members present at roll call: David Corba, Lori Doughty, John Lettang, Victor Martin, Casey Sobczak, David Wilson, Members absent: Richard Kincaid (excused), Orest Zachary (excused) Stephan Cassin, John Lamerato Also in attendance: Kasey Green, Economic Development Manager, Julie Gustafson, Executive Director Macomb OUIncubator Motion to Approve the Agenda Moved by Lettang, supported by Wilson, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of July 18, 2012 Regular Meeting and August 22, 2012 Special Meeting Moved by Wilson, supported by Lettang, to approve the agenda as presented. Ayes: All Nays: None Motion carried. New Business Mr. Corba questioned the capital raised to companies, and where it came from. Ms. Gustafson did not have the information with her. Mr. Corba requested a response to that. Ms. Gustafson said indicated that she will add the information requested to the future reports. Mr. Corba requested information about all the new grant funds received, and DARPA grant clarification. Ms. Gustafson explained the early stage of the grant and it is new and she does not have all the information yet. Mr. Corba questioned if Community Colleges where eligible. General conversation ensued regarding grant funds and who is receiving the funds, and how will these funds be spent. Mr. Martin inquired about administration of the grant $300,000, and is this program going to affect the staff for our current mission. Ms. Gustafson stated that she will hire new staff to run this grant. Motion to receive the Macomb-OU INCubator Quarterly report Moved by Doughty, supported by Corba to approve the motion Ayes: All Nays: None Motion carried. Ms. Green presented to the board, the current situation that has brought American Hydrogen to request the lease termination. Mr. Corba questioned if the company comes back to the building, they will have to pay us back, but they should be responsible if at anytime in the future they should pay the LDFA back. Ms. Green explained that the amount owed does not make since to move forward with that option. Mr. Lettang questioned how many months are currently owed that we are waiving. Ms. Green stated 3 months. General discussion ensued regarding the tenants current situation and if other options were explored, whether this happens with other similar start up businesses. Motion to approve the Lease Termination Agreement between American Hydrogen and the Local Development Financing Authority (LDFA) 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 None Adjournment Moved by Sobczak supported by Doughty to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 5:55 pm TJ Minutes Approved 11/14/2012 John Lettang Secretary  LDFA Business Sterling Heights, Michigan 11/14/2012 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To Approve a Standard Lease Agreement and Standard Lease Agreement (Executive In Residence) for Tenants of the Macomb-OU Incubator located at 6633 18 Mile Road Submitted By: Kasey Green, Economic Development Manager, 884-9327 Executive Summary Over the course of working with tenants on leases, it had become clear that several sections of the standard lease were inadequate, unclear, or simply needed to be changed. We have worked with the City attorney’s office to draft a new standard lease that we intend to use with tenants going forward with LDFA approval. As you know, because the building is owned and operated by the LDFA, all leases require your approval. The lease was truly overhauled, so rather than take a point-by-point description, the bullet points below highlight significant changes for your information: - Security Deposit: We have added a provision for a security deposit of one-month rent based on a recommendation from our City Attorney. This is to protect against damages, unpaid rent, or costs that may be incurred by the LDFA if a tenant defaults on the lease in some way. This is also a standard provision for a lease for space. Of course, the security deposit would be returned to the tenant upon the end of the lease if there were no costs incurred. - Taxes: Under current State law, while the building is owned by the LDFA, any for- profit entity on site must be charged property taxes for the square footage they are leasing and we have no ability to waive this. The tax issue was not clear in the prior lease. Therefore, we wanted to provide clarification that any taxes to local taxing jurisdictions are not included in the rent and that the tenant will responsible for any tax bills. Based on current values and millage rates, we have found the annual bill at this time to generally be less than $1000, and in most cases between $300-$700 total for the year. - Cleaning: For security purposes, we do not provide cleaning to individual suites. Current cleaning functions are provided by an outside contractor that does not do background checks. We do not want cleaning staff entering suites that may have personal property, sensitive equipment, proprietary information or otherwise present risks that put the LDFA in a position of liability. Therefore, cleaning is a responsibility of the tenant. This is not changed from the prior lease, but has been a source of confusion for tenants that we felt required clarification.  - Modifications and “As Is” status: We have always indicated that space is provided to tenants “as is”. However, we have found that tenants may ask for various items such as the installation of equipment, additional electric outlets, installation of carpet, reconfiguration, addition or modification to office furniture, etc. This raised a need to clarify this section. While we try to make reasonable accommodations for simple requests, we do not have available resources to provide significant modifications to space. Furthermore, modifications to space that are specific for one tenant may make the space less attractive in the future for others, imposing a need on our part to fund and complete reversals of these changes to the space. Therefore, we have included language to highlight that the space is intended to be provided “as is”. On a case-by-case basis, we would consider modifications, but the cost for significant, tenant-specific modifications would borne by the tenant, not the LDFA, and completed by authorized City contractors. - Internet: Several liability issues have come to our attention in discussions with IT Departments at the City and OU that required the waiver contained in Exhibit B of the lease. This will be required for all future tenants who wish to hardline connect to the internet. All tenants have been and will continue to be provided with wireless internet under all prior and future leases with or without the waiver, and a wireless connection is inherently less attractive and risky for the areas of concern covered in the waiver. However, the space is configured with ports in the suites to hardline connect and we will limit those connections unless we have a signed Exhibit B in order to insulate the City against liability that may arise from internet use. o The free internet in combination with the hardline connection make utilization of VOIP phone systems attractive for tenants and, while it was not the original intent to provide phone in this manner, we have found this common for tenants. For tenants who utilize VOIP, the current technology at Velocity means that someone who dials 911 from that VOIP phone may not be able to be located, creating a serious liability risk for the City and LDFA. Exhibit B emphasizes that tenants who install VOIP do so at their own risk. o It has also come to our attention recently that it is not possible at this time for tenants to secure their own internet service as tenants might in, for example, an apartment. This is because the building was not designed with multi-tenant use in mind originally and is not configured to allow that. Therefore, all tenants who use internet at the facility are on the City’s internet service and IP address. This has the potential to open the City up to liability on a number of areas should spamming, illegal activity, etc. occur. Based on these issues, we are requiring Exhibit B to protect the City and LDFA from these liability issues. In addition to a new Standard Lease, we have also generated a version at the request of the Macomb-OU Incubator to facilitate their Executive-in-Residence program. This lease differs specifically by providing rent in the form of in-kind services, no security deposit, and a month-to-month term. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to Approve the Standard Lease Agreement and Standard Lease Agreement (Executive In Residence) for Tenants of the Macomb-OU Incubator located at 6633 18 Mile Road.  LEASE AGREEMENT (Executive-in-Residence) This Lease Agreement (“Agreement”), dated ______ is entered into between ______ a Michigan professional limited liability company, of ______ Sterling Heights, Michigan 48312-3709 (“Tenant”), and the City of Sterling Heights Local Development Financing Authority, a local development financing authority, c/o City of Sterling Heights, whose address is 40555 Utica Road, P.O. Box 8009, Sterling Heights, Michigan 48311-8009 (“Landlord”). RECITALS A. Landlord owns the building (“Building”) and property commonly known as 6633 18 Mile Road, Sterling Heights, Michigan 48314 (referred to as the “Property”). B. The Macomb-OU INCubator (“Macomb-OU”) is a start-up incubator whose offices are housed in the Building. C. Macomb-OU wishes to establish an “Executive-in-Residence” program by which certain select business support companies and professional service firms will offer their services within the Building to prospective start-up companies that are clients or prospective clients of the Macomb-OU Incubator, and Landlord would allow such companies and firms to rent space within the Building on a month-to-month basis by providing a minimum number of hours of business support or professional services. D. Tenant is in the business of providing ______ services to business clients and is interested in serving as an Executive-in-Residence at the Building to offer these services to businesses that may be clients or potential clients of the Macomb-OU Incubator. E. Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord on a month-to-month basis a specific portion of the Building identified as Suite ______, comprised of approximately ______ square feet, referred to as the “Premises”. Now therefore, in consideration of the Premises and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties hereby agree as follows: 1. Premises. Landlord leases to Tenant, and Tenant leases from Landlord, the Premises identified as Suite #3I of the Building. Landlord also grants Tenant the non-exclusive use of common areas on the Property which include the reception area, designated conference rooms, restrooms, shipping and receiving area, hallways, driveways, roadways, parking areas, sidewalks, and exterior grounds, (the “Common Areas”). 2. Term. The term of this tenancy (the “Term”) shall be month-to-month commencing on ______ ______________ (“Commencement Date”) and continuing for another month unless either party gives 30 days written notice to the other party advising of its intent to terminate the tenancy.  3. Rent. Commencing on the Commencement Date and throughout the Term, Tenant shall provide in-kind services to Velocity tenants and prospective tenants for the benefit of Landlord and Macomb-OU, in rent (“Rent”) in the following amount: Period Monthly Rent one month 16 hours The in-kind services to be furnished by Tenant in lieu of monetary rent shall meet the standards (both quantity and quality) of the Executive-in-Residence program as determined by Macomb-OU from time to time. Rent shall be pro rated for any partial months at the beginning or the end of the Term. The cost of utilities and services listed in Paragraph 14 is included in Rent. No payment by Tenant or receipt by Landlord of a lesser amount than the full Rent due, nor any endorsement or statement on any check or any communication submitted by Tenant relating to a partial Rent payment shall be deemed to be an accord and satisfaction and Landlord’s acceptance of such check or payment with such statement shall not prejudice Landlord’s right to recover the balance of such Rent, or Landlord’s right to pursue any remedy available under this Lease or by law. Subject to availability as confirmed through Landlord’s representative, Tenant shall have the right to use either the Atrium or the Innovation Lab for two (2) events held during a one-year term which are conducted during normal business hours with the customary standard room rental fee waived (if room set-up or catering is needed, additional charges for such services will apply). If a Tenant wishes to use the Atrium or Innovation Lab on more than two occasions (or at a time after normal business hours), the then current customary room rental fee will be charged. 4. Default. A. In the event of any breach of this Lease by Tenant, which is not cured within the prescribed cure period, the Landlord reserves the right to evict the Tenant if such remedy is available under this Lease or under State law including, but not limited to, those remedies available under the Michigan Summary Proceedings to Recover Possession of Premises Act. B. Tenant shall be in default under the terms of this Lease if an Event of Default occurs and Tenant fails to cure it within seven (7) days of notice from Landlord with respect to any monetary obligation or within thirty (30) days of notice from Landlord with respect to any non-monetary obligation. Since the furnishing of in-kind services is in lieu of the monetary payment of rent, Tenant’s failure to provide the required in-kind services shall be considered a monetary obligation. Monetary obligation shall mean any obligation of Tenant under this Lease other than an obligation to provide in-kind services or pay any other charge due Landlord from Tenant under this Lease. 2  For purposes of this Lease, an Event of Default shall include, but is not limited to, any of the following: • Any default, breach or failure of performance by Tenant of any agreement, covenant, condition, provision or warranty contained herein; • Abandonment of the Premises by Tenant; • An assignment for the benefit of creditors by Tenant; • The filing of a petition under any bankruptcy or insolvency law now or hereafter in effect and if such a petition filed against Tenant is not dismissed within sixty (60) days; • The Premises being taken on execution or other process of law in any action against Tenant. C. In the case of any Event of Default which is not remedied by Tenant within the prescribed time period, whether or not the Term shall have begun, the Landlord may immediately, or at any time while such default exists and without further notice, terminate this Lease by notice to Tenant, specifying a date not less than ten (10) days after the giving of such notice on which this Lease shall terminate as if this were the date herein originally fixed for the expiration of the Term, and Tenant will then quit and surrender the Leased premises to the Landlord, but the Tenant shall remain liable as hereinafter provided. If Tenant fails to cure the default within the prescribed cure period, Landlord may use any remedy available under this Lease or at law, including, but not limited to, those available under the Michigan Summary Proceedings to Recover Possession of Premises Act. ______ Tenant’s Initials 5. Keys. Tenant shall receive two (2) keys per Suite for the Building and two (2) keys for the Suite. Tenant shall not duplicate any keys. Additional keys may be obtained from Landlord only at a cost determined by the Landlord. The cost of replacing lost keys shall be $____ plus any expenses incurred by the Landlord for locksmith services in addition to Rent. Return of all keys issued is a requirement for surrender of the property and failure to return keys may be charged against Tenant’s Security Deposit. ______ Tenant’s Initials 6. Taxes. The Rent amount does not include taxes. Tenant is responsible for separate payment of property taxes that may be levied for real or personal property related to the 3  Premises in accordance with the Michigan General Property Tax Act as amended from time to time or any future authorized levy of taxes by any jurisdiction. All taxes on the Premises must be current as a condition of any lease modification and/or renewals and Tenant shall not be in arrears with any authorized taxing jurisdiction at the time of the Agreement. If the Leased Premises, Building, Property or Equipment are placed on the tax assessment rolls based upon Tenant’s usage, then any real estate taxes, personal property taxes, other applicable taxes and/or special assessments assessed or levied against the Premises, Building, Property or equipment during the Term of this Lease relating to Tenant’s Suite shall be solely borne by Tenant as taxes owed to an authorized taxing jurisdiction. ______ Tenant’s Initials 7. Security Deposit. [ Intentionally Deleted for Executive in Residence Program] ______ Tenant’s Initials 8. Notices. All notices or demands required or permitted to be given or served pursuant to this Lease shall be in writing (except as otherwise expressly provided herein) and shall be deemed to have been given or served when received or refused, if sent by United States registered or certified mail, postage prepaid, or by nationally recognized overnight courier, and addressed to either party at the following addresses: Landlord: City of Sterling Heights Local Development Finance Authority City of Sterling Heights 40555 Utica Rd. Sterling Heights, MI 48311-8009 Attn: Economic Development Manager with a copy to: O’Reilly Rancilio P.C. 12900 Hall Rd., Ste. 350 Sterling Heights, MI 48313 Attn: Clark A. Andrews, Esq. Tenant: _________________________ _________________________ _________________________ _________________________ 4  Notice sent to Tenant at the address designated above shall be deemed to be valid notice to all entities or persons who are tenants under this Lease unless Landlord is notified in writing in accordance with the terms of this Paragraph 10. Such addresses may be changed from time to time by either party by serving notice as above provided. 9. Use. The Premises shall be used (a) for office use only, except for additional uses specifically approved in writing by Landlord, and (b) in compliance with applicable Zoning Laws. Landlord may withhold approval of any use in its sole discretion. Tenant shall not use the Premises in any manner which is in violation of any federal, state, or local law, ordinance or regulation that relates to the use of the Premises. Tenant shall use the Premises in compliance with any recorded building and use restrictions and any rules and regulations established by Landlord with respect to use of the Building and Property. 10. Prohibitions. The following general types of activities shall be prohibited within the Building or on the Property: A. When the purpose of such use is to promote activities subversive to the laws of the United States or any subdivision thereof, or to overthrow the government of the United States, or supporting doctrines of violence, hatred, and/or discrimination. B. Any activity that may violate the canons of good morals, manners or taste, or be injurious to the buildings, facilities, grounds or equipment, or interfere with the programs, activities or operations of the Landlord. C. Any political forum that is not made available to all sides of an issue on an equitable basis and political campaign activities such as collection and/or solicitation of campaign funds, solicitations for campaign workers, and distribution of political campaign advertisement. D. No, illegal drugs, or controlled substances are permitted in or around the Building or upon the Property. Alcoholic beverages are permitted only with Landlord’s approval in accordance with the Alcohol Policy adopted by Landlord’s Board. E. Activities that block fire doors, means of egress, block or tamper with any fire protection apparatus. F. Smoking or use of tobacco products in the Building or on the Property. G. The Leased Premises are made available with the understanding that direct payment to Landlord employees is not permitted. Employees shall not accept under any circumstances direct payments in lieu of fees, labor charges, or other services. 5  H. Guns, weapons and dogs (except service dogs) are not allowed in the Building or upon the Property without prior written permission from the City of Sterling Heights City Manager or their designees. (Governmental law enforcement officers are exempt; private security guards are not exempt.) I. Signs or other materials may not be posted without the approval of the Landlord. 11. Quiet Enjoyment; Entry into the Premises. Landlord covenants that so long as Tenant is not in default hereunder after the expiration of any applicable cure periods under this Lease, Tenant shall have quiet and peaceful possession and enjoyment of the Premises and shall not be interfered with by Landlord, or any party claiming by, through or under Landlord or any party claiming title superior to Landlord. Notwithstanding the foregoing, Landlord and Landlord’s representatives shall be permitted to enter the Premises during Business Hours and upon forty-eight (48) hours prior oral notice (except in the case of emergency, in which case notice reasonable under the circumstances shall suffice). Landlord and its representatives may also enter the Premises as authorized on the attached Internet and Network Policy. During any entry into the Premises by Landlord or Landlord’s representatives (except in case of emergency), at Tenant’s option, a representative of Tenant shall accompany Landlord and/or Landlord’s representatives through the Premises at all times. 12. Utilities and Services. A. Services. 1. Tenant shall have access to the Premises twenty-four (24) hours per day seven (7) days per week. Landlord shall operate the Building’s systems and provide regular specified maintenance services during the operating business hours of the City, which are currently Monday- Friday, 8:30 a.m. - 5:00 p.m. (“Business Hours”), excluding holidays officially recognized by the City of Sterling Heights and furlough days. 2. Landlord shall provide Tenant with the following utilities and services, the cost of which shall be included in the Rent, in accordance with the standards and specifications customarily followed in the operation of comparable buildings in the Sterling Heights, Michigan area: a. Utilities, including, but not limited to: gas, electric, and wireless internet b. Hot and cold water for drinking, lavatories, toilets c. Lighting of building, including the parking lot and other Common Areas during evening hours; d. Heating, air-conditioning and ventilation (“HVAC”) of the Premises and Common Areas during Business Hours whenever 6  heat or air conditioning shall be reasonably required to maintain comfortable temperature and humidity; e. Janitorial and cleaning services incurred for the interior Common Areas but not for Tenant’s Premises (Suite). f. Window washing of all windows in the Premises, outside only, weather permitting, at intervals to be determined by Landlord; g. Parking spaces in the parking lot located adjacent to the Building; h. Landscaping of the exterior of Common Areas and building management services for the Premises; i. Snow removal of parking lot and sidewalks in accordance with practices applicable to the City-owned facilities; ______ Tenant’s Initials B. Tenant Services. Tenant shall be responsible for and shall pay for telephone services to the Premises. Tenant shall be responsible for its janitorial and cleaning services for the Premises except for those provided by Landlord under Paragraph 14A. Tenant agrees to keep the Premises in good condition free of debris and waste. If Tenant generates excessive amounts of trash or waste which requires special handling or disposal such as medical or other hazardous waste Tenant shall be responsible for disposal of such trash waste at its sole expense. _______ Tenant’s Initials C. Internet Use. Tenant shall be permitted to utilize wireless Internet in the Building. Tenant shall not otherwise connect to the wired Internet service for the Building without signing Exhibit B to this agreement with the Landlord. All use of the Internet or of the network shall be subject to the policy set forth on Exhibit B as it may be modified from time to time. Tenant shall be responsible for and shall pay for all Internet and data services at the Premises that may be desired by Tenant beyond those furnished under this written Agreement with the Landlord. ______ Tenant’s Initials 13. Approvals. Tenant shall be responsible for obtaining any required approvals and paying any applicable permit fees relating to its use and occupancy of the Premises. 14. Maintenance. During the Term of this Agreement, Landlord, at Landlord’s sole cost and expense, shall perform all maintenance, repairs and replacements relating to the Common Areas, roof, building footings, foundations, walls, the building skeleton, bearing columns, interior bearing walls, floor slabs, structural elements, underground utility and sewer pipes, driveways, parking lots, fire protection sprinkler system, all exterior painting (at reasonable intervals), mechanical, plumbing, electrical, and HVAC systems serving the Premises unless such required maintenance, repairs, or replacements are the result of the acts or omissions of Tenant or its employees. Landlord agrees that it will use reasonable efforts to cause any such work to be performed in a manner minimizing interference with Tenant’s business and use of the 7  Premises. Except as provided above, Tenant shall keep and maintain the Premises in good order and repair. _______ Tenant’s Initials 15. Condition of Premises; Alterations and Improvements. A. “As Is” Condition. Tenant acknowledges and agrees that Tenant accepts the Premises in an “as is” condition, with no obligation on the part of Landlord to improve, cause to be improved or pay Tenant to improve the Premises, or any part of them, including the provided office furniture contained on the Premises. _______ Tenant’s Initials B. Alterations and Improvements. Tenant shall not make any leasehold improvements, do any painting or decorating, erect any partitions, install any electrical or telecommunication lines or conduit, install any fixtures, or make any alterations, additions, changes, repairs, or improvements (collectively referred to as "Alterations and Improvements") to the Premises without obtaining in each instance Landlord's prior written approval which may be withheld by Landlord in Landlord’s sole discretion. Prior to making any Alterations and Improvements, Tenant will be required to submit a request to Landlord in writing with detailed written “to scale” drawings showing the proposed Alterations and Improvements, including the materials to be used. C. Alterations and Improvements by Landlord or Landlord’s Contractor(s). All Alterations and Improvements proposed by Tenant, if approved by the Landlord, shall be performed either by Landlord or Landlord's contractor(s). If Tenant’s proposed Alterations and Improvements are acceptable to Landlord, Landlord shall obtain a written quotation from contractor(s) selected by Landlord as to the cost of making such Alterations and Improvements which shall be forwarded to Tenant for Tenant’s written approval. If Tenant approves the quotation from Landlord’s contractor(s) in writing, Tenant shall pay in advance to the contractor(s) selected by Landlord for the cost of the proposed Alterations and Improvements, plus the cost of any required permits or licenses required for such Alterations and Improvements. In addition, Tenant shall be responsible for any change orders or cost overruns relating to the Alterations and Improvements proposed by Tenant. The performance of any Alterations and Improvements to the Premises by either Landlord or Landlord's contractors on behalf of Tenant shall not be deemed or construed by the parties, or by any third party, as creating the relationship of principal and agent or of partnership, or of joint venture, by and between the parties hereto, it being understood and agreed that no provision contained in this Paragraph 17 or elsewhere in this Lease nor any acts of the parties to this Lease shall be deemed to create any relationship other than the relationship of Landlord and Tenant. 8  D. Indemnification. Subject to the waiver of subrogation as provided in Paragraph 23, Tenant agrees to protect, defend, indemnify and hold harmless Landlord, its agents and employees, with regard to the Premises and the Property, from any and all liabilities of every kind and description that may arise out of or be connected in any way with the Alterations and Improvements, except for the negligent acts or omissions, or the intentional acts of Landlord, its employees, agents, or representatives. Any construction lien filed against the Premises or the Property or any notice which is received by either Landlord or Tenant for work claimed to have been furnished to Tenant shall be released and discharged within ten days after the filing or receipt, whichever is applicable, at Tenant's expense. E. Alterations and Improvements upon Lease Termination. All Alterations and Improvements shall remain upon and be surrendered with the Premises unless, prior to or upon the expiration or termination of this Lease, Landlord shall give written notice to Tenant requesting Tenant to remove the same, in which event Tenant will remove the Alterations and Improvements within ten (10) days after the expiration or termination of this Lease, and repair and restore any damage to the Premises caused by the installation or removal of them. If Tenant does not remove the Alterations and Improvements within the ten (10) day period, Landlord may remove same and Tenant shall pay the cost of the removal to Landlord upon demand. ______ Tenant’s Initials 16. Relocation of Business. In consideration of the benefits which Tenant receives as a result of its occupancy of the Leased Premises within the Building, Tenant agrees to contact the City’s Economic Development Manager not less than 30 days prior to the date that it intends to vacate the Premises to see whether the City can assist Tenant in finding a suitable location to operate its business. 17. Insurance and Indemnity. A. Indemnification. Subject to waiver of subrogation in Paragraph 23, Tenant and its respective successors and assigns agree to defend, indemnify and hold harmless Landlord, and its respective successors and assigns, from and against any and all costs, losses, claims, liabilities, fines, expenses, penalties, and damages (including reasonable legal fees) in connection with or resulting from any injury or damage to the Premises or third parties caused by the gross negligence or wilfull misconduct of Tenant or its employees, agents or invitees during the Term. B. Landlord’s Insurance. Throughout the Term, Landlord shall, at its sole cost and expense, maintain insurance insuring: (i) the Building and other improvements located upon the parcel or parcels on which the Building is located (the “Land”), against loss or damage by fire, lightning, wind storm, hail storm, aircraft, vehicles, smoke, explosion, riot or civil commotion as provided by the Standard Fire and Extended Coverage Policy and all other risks of direct physical loss as insured against under Special Form (“all risk” coverage). The insurance coverage shall be for not less than one 9  hundred percent (100%) of the full replacement cost of such improvements with agreed amount endorsement and building ordinance coverage; and (ii) Landlord from all claims, demands or actions made by or on behalf of any person or persons, firm or corporation and arising from, related to or connected with the Building, the Land or the Premises, for bodily injury to or personal injury to or death of any person, or more than one person, or for damage to property in an amount of not less than $2,000,000.00 combined single limit per occurrence/aggregate. Landlord may elect to satisfy this obligation through an established self-insurance program operated by the City of Sterling Heights. C. Tenant’s Insurance. Tenant shall maintain the following insurance in force at all times during the Initial Term and any Renewal Term(s) of this Lease, with an “A-” rated Best insurance carrier acceptable to the Landlord. It is agreed that Tenant shall name Landlord, City of Sterling Heights, including all elected and appointed officials, all of their employees and volunteers, all boards, commissions and/or authorities and board members, including employees and volunteers, as an “Additional Insured” under each separate policy of insurance scheduled below, with the exception of Employers Liability Insurance, in a form of endorsement to the policies approved by the Landlord in writing. Policy Minimum Limits__________ _____ (a) Workers’ Compensation Statutory X (b) Commercial General Liability (1) Bodily Injury Liability $300,000 each person $300,000 each occurrence (2) Property Damage Liability $300,000 each occurrence _____ (c) Business Automobile Liability (1) Bodily Injury Liability $300,000 each person $300,000 each occurrence (2) Property Damage Liability $300,000 each occurrence X (e) Employer’s Liability Insurance $300,000 each occurrence Note: Commercial General Liability to include, but not limited to Contractual obligations. These coverages and limits are to be considered minimum requirements under this Lease and shall in no way limit the liability or obligations of Tenant under this Lease. Tenant shall cause all policies to include an endorsement to the effect that the policies shall not be modified, canceled or terminated without thirty (30) days prior written notice to Landlord, as well as the requirement that the insurance carrier immediately notify Landlord when fifty percent (50%) of any aggregate limits on any of the above-require policies have been reached. In case of termination of coverage, Tenant 10  shall provide evidence of new insurance at the earliest possible date, but not later than ten (10) days prior to the termination of the original policy. Tenant shall provide the insurance before the commencement of the Term of this Lease and prior to the beginning of each lease renewal term. Moreover, Tenant agrees to notify Landlord immediately of any claim arising pursuant to such policies. Tenant shall not commence operations under this Lease until Tenant has obtained all insurance stated in these requirements, all insurance has been reviewed by Landlord, and certificates of such insurance have been made available to Landlord. D. Form of Insurance. All of the aforesaid insurance policies shall be issued by companies with a Best financial quality rating of A- or better and a financial size rating of XII or better. Certificates of the insurance for the policies required to be carried under the Lease on City Form 2021, together with satisfactory evidence of payment of the premiums thereon, shall be deposited by Tenant with the Landlord. _______ Tenant’s Initials 18. Casualty and Condemnation. In the event any part of the Premises is damaged by fire or other casualty or taken under the power of eminent domain by any legally constituted authority (each a “Taking Event”), then Landlord and Tenant shall each have the right to terminate this Agreement. Such termination shall be without prejudice to the rights of Landlord to recover compensation from the condemning authority for any loss or damage caused by such condemnation. Tenant shall have the right to make its own claim for any separate award that may be made by the condemning authority for Tenant’s loss of business or on account of any costs or loss Tenant may sustain in the removal of Tenant’s trade fixtures, equipment, or other removable personal property. In the event this Agreement is not terminated in accordance with this Paragraph, then Landlord shall restore the Premises to its substantial condition existing prior to the Taking Event with reasonable dispatch by and at the sole cost and expense of Landlord, provided, however, that Landlord shall not be obligated to expend any funds beyond the amount of the insurance or condemnation proceeds received as a result of such Taking Event. During the period beginning as of the date of the Taking Event and ending on the date of substantial completion of Landlord’s restoration of the Premises, Rent shall be abated proportionately based on the portion of the Premises rendered unfit for Tenant’s use. 19. Assignment and Subletting. Tenant shall not sublet or share the Premises, or assign its interest in this Agreement or in the Premises without Landlord’s prior written consent, which may be withheld in Landlord’s sole discretion. 20. Bankruptcy. If Tenant shall file a petition in voluntary bankruptcy or be voluntarily or involuntarily adjudicated bankrupt or insolvent, or shall make an offer of composition to its creditors, or shall make an assignment for the benefit of creditors, or shall file a petition or answer seeking reorganization or readjustment under the federal bankruptcy laws or any other law or statute of the United States or any state thereof, or if a receiver or trustee shall be appointed for Tenant or for all or a substantial part of the property of Tenant and Tenant is not released from such receiver or trustee within thirty (30) days after appointment, or if an order 11 shall be entered approving the reorganization of Tenant or the readjustment of Tenant’s debts or obligations under the federal bankruptcy laws or any other law or statute of the United States or any state thereof, then any of such events shall be deemed to be a breach, default and anticipatory breach of this Lease. In any of such events and whenever and as often as any such failure, default, breach or anticipatory breach shall occur, the term hereof, at the option of Landlord, shall cease and determine and from thenceforth it shall be lawful for Landlord to re- enter into and repossess the Leased Premises situated thereon and Tenant and each and every occupant to remove and put out and to relet said Leased Premises for his own benefit; but reserving to Landlord all such rights as he may have for damages or otherwise because of said default, breach or anticipatory breach of Tenant. 21. Waiver of Subrogation. Notwithstanding anything to the contrary contained in this Lease, Tenant and Landlord, respectively, release each other from any and all liability or responsibility and waive any right of recovery, whether direct or by way of subrogation or otherwise, against each other, their agents, officers and employees, for any loss of or damage to their respective property, which occurs in or about the Building or Premises whether or not covered by any insurance, regardless of the cause or origin and even if such loss or damage shall have been caused by the fault or negligence of the other party or anyone for whom such party may be responsible. In addition, each party hereby waives the subrogation rights of its insurers against such other party. Landlord and Tenant each agree to obtain such a waiver in all applicable insurance policies. 22. Environmental Warranty and Indemnification. Tenant will keep the Premises free of Hazardous Materials, except as permitted below. Tenant will not cause or permit the Premises to be used to generate, transport, store, handle, transfer, produce, or process Hazardous Materials, except for use and storage of small quantities of household cleaning materials used for cleaning and maintenance of the Premises, provided same are used in compliance with applicable Environmental Laws. Tenant will not cause or suffer any waste on the Premises. Tenant will not cause or permit any release, spill, leak, or emission of Hazardous Materials onto or from the Premises or onto any contiguous property. Tenant will not install any underground storage tanks or above-ground storage tanks on the Premises, or any PCB containing equipment on or adjacent to the Premises. “Hazardous Materials” include any toxic or hazardous material, substance, or waste, as defined or regulated by any Environmental Laws. Hazardous Materials includes (a) any chemical or other material that is or may become injurious to the public health, safety, or welfare or to the environment; (b) any chemical or other material that is required by any Environmental Laws to be removed from the soil, groundwater, or structures of the Premises, or from any adjacent premises, if such chemical or material originated from the Premises; (c) petroleum and petroleum products and by-products, flammables, mold, fungal contamination, bacterial contamination, polychlorinated biphenyls, explosives, radioactive materials, asbestos, urea formaldehyde, hazardous materials, hazardous waste, hazardous or toxic substances; and (d) any related materials that are regulated by Environmental Laws. 12  “Environmental Laws” means all federal, state, county and local statutes, laws, ordinances, codes, rules, regulations, or policies relating to environmental matters and relating to the protection of human health and/or the environment, including remediation, response, use, storage, treatment, transport, manufacture, refinement, handling, production, or disposal of Hazardous Materials. Environmental Laws include all of the following, as amended: (a) the Federal Clean Air Act, 42 USC 7401 et seq.; (b) the Federal Water Pollution Control Act, 33 USC 1251 et seq.; (c) the Federal Resource Conservation and Recovery Act, 42 USC 6901 et. seq.; (d) the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC 9601 et seq.; (e) the Federal Hazardous Materials Transportation Act, 49 USC 5101 et seq., (f) the Federal Toxic Substances Control Act, 15 USC 2601 et seq.; (g) the Federal Atomic Energy Act of 1954, the Federal Nuclear Waste Policy Act, 42 USC 2014 et seq.; (h) the Federal Low-Level Radioactive Waste Policy Act, 42 USC 2021b et seq.; (i) the Federal Insecticide, Fungicide, and Rodenticide Act, 7 USC 136 et seq.; (j) the Michigan Natural Resources and Environmental Protection Act, 1994 PA 451, MCL 324.101 et seq.; and (k) any rules, regulations, standards, or guidelines issued pursuant to these statutes. 23. No Waiver. The failure of either party to enforce any covenant or condition of this Lease shall not be deemed a waiver thereof or of the right of either party to enforce each and every covenant and condition of this Lease. No provision of this Lease shall be deemed to have been waived unless such waiver is in writing. 24. Binding Effect. This Lease shall be binding upon and shall inure to the benefit of the parties and their respective beneficiaries, successors and assigns. 25. Governing Law. This Lease shall be governed by and construed under the laws of the State of Michigan. 26. Arbitration. Any controversy or claim between the parties arising out of or relating to this Lease or a breach thereof (other than a dispute regarding or a claim for non- payment of Rent) shall be settled by arbitration in Macomb County, Michigan under the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) and shall be administered by the AAA. In no such event shall a demand for arbitration be made after the date when legal or equitable proceedings based upon such controversy or claim would be barred by the applicable statute of limitations. Any arbitration hearing conducted pursuant to this Agreement shall be held in Macomb County, Michigan. The arbitrator(s) shall issue a written statement specifying the reasons for the award, which shall be final and binding on both parties, and in such format that judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. The arbitrator(s) (a) shall have the authority to award injunction relief or to direct specific performance, if warranted, and (b) shall not have the authority to award punitive or consequential damages. Each party shall bear its own attorneys’ fees, witness fees, and other costs in preparing and presenting its position at arbitration. The fee of the arbitrator, however, shall be borne and paid by the party not substantially prevailing in the matter arbitrated, as specifically so determined by the arbitrator. 13  27. Subordination; Landlord’s Lien Waiver. This Lease shall be subordinate to any mortgage, deed of trust, hypothecation or other security device which encumbers the Building or any ground or underlying lease which is intended to be superior to this Lease (“Security Device”) provided that Landlord provides to Tenant from the holder of such Security Device a subordination, non-disturbance and attornment agreement reasonably acceptable to Tenant. Landlord hereby waives and releases all liens, right of distraint or security interests (whether arising by statute or at common law) in all property, chattels or merchandise which may be placed in the Premises and also upon all proceeds of insurance which may accrue to Tenant by reason of damage to or destruction of any such property, chattels or merchandise. 28. Attorneys’ Fees. All reasonable attorneys’ fees, including actual expenses and court costs, incurred by the prevailing party to enforce the terms of this Lease against the non- prevailing party shall be paid by the non-prevailing party. 29. Counterparts. This Lease may be executed in any number of counterparts and by each of the undersigned on separate counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 30. Miscellaneous Provisions. The following miscellaneous provisions shall form a part of this Lease: A. Tenant agrees to supervise its employees and guests during use of the Building and/or Leased Premises. B. Tenant agrees to adhere to energy conservation practices adopted by Landlord or the City of Sterling Heights. C. The parties to this Lease agree that no employees, volunteers, agents and personnel of either party shall be considered to be employees of the other, and acknowledge that this Lease does not create a partnership or joint venture between them. D. If there is more than one entity or person which or who are tenants under this Lease, the obligations imposed upon them as Tenant under this Lease shall be joint and several. E. This Lease shall be construed and interpreted in accordance with the laws of the State of Michigan. 14  31. Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the lease of the Premises and supersedes any oral agreements or understandings between the parties, verbal or in writing, prior to its execution. No modifications shall be binding or in effect unless incorporated into a written amendment signed by authorized representatives of the Landlord and Tenant. Macomb OU may enter into separate service agreements with Tenant but only Landlord and its authorized representatives may negotiate lease terms which must be approved by the Board of the LDFA. ______ Tenant’s Initials The parties have duly executed this Agreement pursuant to proper authority duly granted, as of the dates set forth below. LANDLORD: City of Sterling Heights Local Development Financing Authority By: _________________________________ Its: _________________________________ Dated: ______________________ TENANT: _________________________ a Michigan professional limited liability company By:_________________________________ <NAME> Its: Member Dated: _______________________ 15  EXHIBIT A Location of the Premises (Floor Plan) 16  EXHIBIT B LDFA VELOCITY INTERNET AND NETWORK SERVICES POLICY This Policy is a guide to the acceptable use of the LDFA Velocity Internet and network facilities and services (collectively referred to as “Services”). Any Tenant or affiliate organization (“Affiliate”) or individual connected to the LDFA Velocity Internet or network (“User”) in order to use it directly, or to connect to any other network(s), must comply with this policy and the stated purposes and Acceptable Use policies of any other network(s) or host(s) used. Each Tenant and Affiliate is responsible for the activity of its users and for ensuring that its users are familiar with this policy or an equivalent policy. In addition, each Tenant and Affiliate is encouraged to maintain and enforce its own Acceptable Use policies. The provisions of this policy govern all use of the Services, including any unsupervised anonymous network access offered by Tenants or their Affiliates. The following guidelines will be applied to determine whether or not a particular use of the Services is appropriate: 1. Users must respect the privacy of others. Users shall not intentionally seek information on, or represent themselves as, another user unless explicitly authorized to do so by that user. Nor shall Users obtain copies of, or modify files, other data, or passwords belonging to others. 2. Users must respect the legal protection applied to programs, data, photographs, music, written documents and other material as provided by copyright, trademark, patent, licensure and other proprietary rights mechanisms. 3. Users must respect the integrity of other public or private computing and network systems. Users shall not intentionally develop or use programs that harass other users or infiltrate any other computer, computing system or network and/or damage or alter the software components or file systems of a computer, computing system or network. 4. Use should be consistent with guiding ethical statements and accepted community standards. Use of the Services for malicious, fraudulent, or misrepresentative purposes is not acceptable. 5. The Services may not be used in ways that violate applicable laws or regulations. 6. The Services may not be used in a manner that precludes or significantly hampers network access by others. Nor may the Services be used in a manner that significantly impairs access to other networks connected to the Velocity Network.  7. Connections which create routing patterns that are inconsistent with the effective and shared use of the Services may not be established. 8. Unsolicited advertising is not acceptable. Advertising is permitted on some Web pages, mailing lists, news groups and similar environments if advertising is explicitly allowed in that environment. 9. Repeated, unsolicited and/or unwanted communication of an intrusive nature is strictly prohibited. Continuing to send e-mail messages or other communications to an individual or organization after being asked to stop is not acceptable. The intent of this policy is to identify certain types of uses that are not appropriate, but this policy does not necessarily enumerate all possible inappropriate uses. Using the guidelines given above, the LDFA may at any time make a determination that a particular use is not appropriate. The LDFA will not monitor or judge the content of information transmitted via the Services, but will investigate complaints of possible inappropriate use. In the course of investigating complaints, the LDFA staff will safeguard the privacy of all parties and will themselves follow the guidelines given in this policy and any privacy policy adopted by the LDFA which is delivered to Tenant, Affiliate, or User. The LDFA will only release sensitive, confidential or personally identifiable information to third parties when required by law, or when in the LDFA’s judgment, release is required to prevent serious injury or harm that could result from violation of this policy. 10. The Velocity Building phone system which is a part of the City of Sterling Heights phone system is designed to enable callers using its installed lines to place 911 calls that properly identify the caller’s location. VoIP phone systems or other phone systems which are not a part of the Velocity Building phone system may result in 911 calls which do not properly identify the caller’s location, possibly resulting in delays in emergency responses. Any Tenant who installs or uses a VoIP telephone or phone at the Building which is not a part of the Velocity Building phone system assumes all risks and responsibilities relating to use of such phone. Tenant agrees not to sue the Local Development Financing Authority (“LDFA”), Macomb-OU INCubator (“Macomb-OU”), the City of Sterling Heights, or any of their respective elected and appointed officials, officers, employees, agents, volunteers, or others working on behalf of any of them for any claims, damages, or costs which Tenant or its officers, employees, agents or invitees may suffer which may arise out of or be alleged to arise out of the use of any VoIP phone (or phone which is not a part of the Velocity Building phone system) and its interface with the 911 call system, including injury or death suffered by any of them, except for damages caused by or resulting from the sole negligence of the LDFA. Tenant, for and on behalf of any such person, waives any claims, losses, or damages, including personal injury or death that Tenant or its employees, agents, or invitees may have against the LDFA, Macomb-OU, the City of Sterling Heights, or any of their respective elected and appointed officials, officers, employees or agents which may arise out of or be alleged to arise out of the use of any VoIP phone (or phone which is not a part of the Velocity Building phone system) and its interface with the 911 call system. Tenant agrees to the fullest extent permitted by law to indemnify and hold harmless the LDFA, Macomb-OU, the City of Sterling Heights, or any of their respective elected and appointed officials, officers, employees or agents from and against any losses, costs, expenses, damage, liabilities, or claims, whether groundless or not, arising out of bodily injury, sickness or disease, 18  including death resulting at any time there from, including attorneys fees, which may be sustained or claimed by any person or persons based on any act or omission, negligent or otherwise, of the LDFA, Macomb-OU, the City of Sterling Heights, or any of their respective elected and appointed officials, officers, employees or agents relating to the use of any VoIP phone (or phone which is not a part of the Velocity Building phone system) and its interface with the 911 call system. ______ Tenant’s Initials The LDFA may delegate the day-to-day administration and enforcement of this Policy to the administrative liaison between the LDFA and the City of Sterling Heights. Remedial Action When the LDFA learns of possible inappropriate use, the administrative liaison will notify the Tenant or Affiliate responsible, who must take immediate remedial action and inform the LDFA of its action. The LDFA (or its designee) will assist the Tenant or Affiliate in identifying the nature and source of the inappropriate use and in implementing remedial action if requested. Provided the Tenant or Affiliate implements remedial action promptly, the LDFA will take no further action. If the LDFA is unable to contact the Tenant or Affiliate, or if the Tenant or Affiliate is unwilling or unable to implement remedial action, the LDFA reserves the right to pursue remedial action independently, which may include indefinite suspension or termination of hardline access to the internet with control measures determined by the LDFA administrative liaison that may involve accessing the Tenant Premises. Wherever possible, the LDFA will pursue remedial action with the least impact to the overall service for the Tenant or Affiliate. Should the LDFA administrative liaison deem it necessary to prevent further inappropriate activity, the LDFA may disconnect a Tenant or Affiliate from the LDFA Velocity Network. This Policy may be changed from time to time and such modifications shall be binding upon Tenant upon delivery of a copy of the Amendment by personal delivery, regular mail, electronic mail, or facsimile. _______ Tenant’s Initials TENANT: _________________________ a Michigan professional limited liability company By:_________________________________ <NAME> Its: Member Dated: _______________________ 19  LDFA Business Sterling Heights, Michigan 11/14/12 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between Brar Technology and CFO Leasing and the Local Development Finance Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager, 884-9327 Executive Summary Attached for LDFA review is a December 1, 2012 to November 30, 2013 lease agreement between Brar Technology and CFO Leasing and the LDFA. Brar Technology and CFO Leasing have signed the standard lease agreement for space #1-F in section 1 of the building containing approximately 345 square feet of space. Monthly rent will be $395.00. Brar Technology has been a tenant at the incubator since March 1, 2011. Mr. Brar currently leases space 3-L, which is approximately 235 sq. ft., and is requesting that we terminate his current lease, which ends February 28, 2013 in consideration of this new lease agreement, in partnership with CFO Leasing. Brar Technology Inc., an engineering firm that specializes in the development of embedded software for the defense industry, a leading supplier of software and circuits since 1993, Brar Technology focuses on defense-related embedded system projects such as model-based design, validation and verification, condition-based maintenance for vehicles and infrastructure, and advanced secure communication techniques. Brar Technology is ISO 9001:2008 certified, an 8(a) / Small Disadvantaged Business, and MBE-certified by the Michigan Minority Supplier Development Council. CFO Leasing, Inc. is a HUBZone/Service Disabled Veteran-Owned small business that provides services, training, and consulting in the areas of: Accounting, Finance, Information Technology, Human Resources Management, Administrative Services, and General Management Services. Our key personnel have multiple I/T, HR, and accounting certifications and designations with over 30 years of experience with the Federal Government. CFO Leasing is authorized by NASBA to award continuing education credits (CPEs) for the training courses that it designs and delivers. Business Functions CFO Leasing will utilize the Velocity office to support the following business functions: • Purse federal prime contracts and subcontracting opportunities in the areas of IT. Primarily system design, system implementation and network engineering. • Supporting the PTAC’s and other federal agencies with DCAA/FAR Compliance Training throughout the state of Michigan. #1 training partner for the PTACs and we have provided over 10 free seminars and assisted over 200 Michigan based companies with FREE training in the area of FAR/DCAA/DCMA compliance. • Providing consulting support to assist federal contracts with back-office support and federal compliance. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Lease Agreement between Brar Technology and CFO Leasing and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 11/14/12 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement (Executive In Residence) between Baker and Company Enterprises, Inc. (d.b.a. AdviCoach of Michigan) and the Local Development Finance Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager, 884-9327 Executive Summary Attached for LDFA review is a lease agreement between AdviCoach of Michigan and the LDFA, month-to-month Executive In Residence Lease, commencing on, December 1, 2012. The Metiss Group has signed the standard lease agreement for space #3-A in section 3 of the building containing approximately 784 square feet of space. Monthly rent will be waived for in kind services to Velocity tenants and prospective tenants for the benefit of Landlord and Macomb OU INCubator. Advicoach specializes in business coaching, advising, training and facilitating strategies to companies at every stage of the business process. The AdviCoach system of coaching is about creating awareness, educating and providing accountability for business owners. Our approach is customized for each business owner and his/her team, meeting them where they are in their development process. They provide rapid impact strategies to help overcome obstacles and drive growth. One-on-one coaching and group coaching opportunities, they have customized packages that will drive growth and profitability in business, whether it is a small family business or an organization with 25 or more employees. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Lease Agreement (Executive In Residence) between Baker and Company Enterprises, Inc. (d.b.a. AdviCoach of Michigan) and the Local Development Finance Authority (LDFA)  LEASE AGREEMENT - EXECUTIVE IN RESIDENCE This Lease Agreement ("Agreement"), dated December 1 2012 is entered into between Baker and Company Enterprises, Inc. (d.b.a. AdviCoach of Michigan) ("Tenant"), and the City of Sterling Heights Local Development Financing Authority, a local development financing authority, c/o City of Sterling Heights, whose address is 40555 Utica Road, P.O. Box 8009, Sterling Heights, Michigan 4831 1-8009 ("Landlord"), RECITALS A. Landlord owns the building ("Building") and property commonly known as 6633 18 Mile Road, Sterling Heights, Michigan 48314 (referred to as the "Property"). B. The Macomb-OU INCubator ("Macomb-OU) is a start-up incubator whose offices are housed in the Building. C. Macomb-OU wishes to establish an "Executive-in-Residence" program by which certain select business support companies and professional service firms will offer their services within the Building to prospective start-up companies that are considering leasing space within the Building, and Landlord would allow such companies and firms to rent space within the Building on a month-to-month basis by providing a minimum number of hours of business support or professional services. D. Tenant is in the business of providing business coaching services to business clients and is interested in serving as an Executive-in-Residence at the Building to offer these services to eligible start-up businesses leasing space in the Building. E. Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord on a month-to-month basis a specific portion of the Building identified as Suite 3A, comprised of approximately 784 square feet, referred to as the "Premises". Now therefore, in consideration of the Premises and for other good and valuable consideration, the receipt and sufficiency of which are aclmowledged, the parties hereby agree as follows: 1. Prenzises. Landlord leases to Tenant, and Tenant leases from Landlord, the Premises. Landlord also grants Tenant the non-exclusive use of common areas on the Property which include the reception area, designated conference rooms, restrooms, shipping and receiving area, hallways, driveways, roadways, parking areas, sidewalks, and exterior grounds, (the "Common Areas"). 2. Tertiz. The term of this tenancy (the "Term") shall be month-to-month commencing on, December 1, 2012 ("Commencement Date") and continuing for another month unless either party gives 30 days written notice to the other party advising of its intent to terminate the tenancy.. KHB KHB KHB KHB KHB KHB KHB KHB KHB KHB KHB KHB  Kathryn H. Baker Kathryn H. Baker, President, Baker and Company Enterprises, Inc 11-7-2012 KHB KHB Kathryn H. Baker Kathryn H. Baker Baker and Company Enterprises, Inc. President 11-7-2012  LDFA Business Sterling Heights, Michigan 11/14/12 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between The Metiss Group and the Local Development Finance Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager, 884-9327 Executive Summary Attached for LDFA review is a December 1, 2012 to November 30, 2013 lease agreement between The Metiss Group and the LDFA. The Metiss Group has signed the standard lease agreement for space #3-D in section 3 of the building containing approximately 967 square feet of space. Monthly rent will be $806.00. The Metiss Group, Inc. has been in business for more than 16 years. They are behavior experts at work; they help their clients with processes that help them select the right person for the right seat in their company/culture and then processes which help create an environment in which those superstars can thrive. Essentially they give them more predictability in results through proven talent processes. They expanded into North Carolina about 6 years ago; most of their clients are in the continental U.S; however some are multi-national clients with varied locations. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Lease Agreement between The Metiss Group and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 11/14/12 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement (Executive In Residence) between Bianco and Company, PLC and the Local Development Finance Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager, 884-9327 Executive Summary Attached for LDFA review is a lease agreement between Bianco and Company and the LDFA, month-to-month Executive In Residence Lease, commencing on, December 1, 2012. Bianco and Company has signed the lease agreement for space #3-I in section 3 of the building containing approximately 833 square feet of space. Monthly rent will be waived for in kind services to Velocity tenants and prospective tenants for the benefit of Landlord and Macomb OU INCubator. Bianco is a Sterling Heights CPA firm with a track record of providing subject matter expertise to small businesses, start-ups, and international firms. Since 1997, has serviced local enterprises, inbound international companies, and private individuals with matters of accounting, bookkeeping, taxation, and payroll. Bianco has experience working with a broad section of diverse business sectors, including manufacturing and technology firms. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Lease Agreement (Executive In Residence) between Bianco and Company, PLC and the Local Development Finance Authority (LDFA)