Local Development Finance Authority

CITY OF STERLING HEIGHTS Regular Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 40555 UTICA ROAD 586-884-9322 CITY COUNCIL CHAMBERS February 20, 2013 5:30 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF January 16, 2013 Regular Meeting NEW BUSINESS 1. To authorize the Executive Director of the Macomb-OU Incubator to proceed with efforts to secure Logistics Specialties Inc’s (LSI) location at the Velocity Collaboration Center, subject to negotiation and subsequent approval of a lease at a future time. OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING January 16, 2013– 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 5:30 p.m. Pledge of Allegiance Members present at roll call: David Corba, John Lamerato, John Lettang, Victor Martin, Casey Sobczak, David Wilson, Orest Zachary Members absent: Stephan Cassin (excused), Lori Doughty (excused) Richard Kincaid (excused), Also in attendance: Kasey Green, Economic Development Manager, Julie Gustafson, Director Macomb OUIncubator, Jeff Bahorski, City Attorney 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 December 19, 2012 Regular Meeting Moved by Lettang, supported by Zachary, to approve the agenda as presented. Ayes: All Nays: None Motion carried. New Business Mr. Corba questioned the amount of client tenants vs. accelerator clients, and where are the accelerator tenant actual locations, Ms. Gustafson responded about 50% are in Macomb County. Mr. Corba asked where is their office space, do they have offices or are they working from home offices. Ms. Gustafson stated most have office space. Ms. Gustafson updated the board on some corrections with the report. Mr. Martin asked Ms. Gustafson what their fiscal year is. Ms. Gustafson replied that they use the same fiscal year as the City. The board discussed reporting issues regarding fiscal year vs. calendar year. The board has agreed to quarterly reports using the fiscal year. Ms. Gustafson stated then that she would have another report ready in June of this year. Mr. Corba questioned the lease renewals of the current tenants. Ms. Gustafson stated that Terra- Telesis is questionable, but Brar is renewing. Mr. Corba questioned the revenue programs in the report. Ms. Gustafson explained that these are the classes that are charged for, and client consulting services. Ms. Gustafson requested an opinion from board, regarding a potential service provider that would like to locate in the Incubator. Mr. Corba was concerned that this is the same as the local PTAC. General discussion ensued. The board stated they would need more information regarding the company in question before they could make a decision. Resolved to acknowledge receipt of the Macomb-OU INCubator Quarterly Report-January 2013 Moved by Sobczak, supported by Lamerato to acknowledge receipt Ayes: All Nays: None Motion carried. Old Business None Board Members Report None Public Comment None Adjournment Moved by Wilson supported by Zachary to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 5:50 pm TJ Minutes Approved 02/20/2013 John Lettang Secretary  LDFA Business Sterling Heights, Michigan 2/20/13 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Macomb-OU INCubator Request for a discussion regarding a potential tenant, Logistics Specialties, Inc. (LSI) at Velocity. Submitted By: Kasey Green, Economic Development Manager Executive Summary The Macomb-OU Incubator has requested an opportunity for discussion and feedback from the LDFA Board regarding a potential new tenant, LSI, at Velocity. This company will provide business development services for defense contracts. The company is headquartered in Utah. Macomb-OU Incubator felt that it was important to gauge the interest of the LDFA in pursuing this tenant further prior to having this company expend significant time and funds to travel to Sterling Heights to negotiate a lease provisions and identify space. A report from the Macomb-OU Incubator is attached to provide additional information to the Board for discussion. The requested action is for general discussion and feedback, however, an official lease would need to be approved by the LDFA at a later date. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to authorize the Executive Director of the Macomb-OU Incubator to proceed with efforts to secure Logistics Specialties Inc. (LSI) location at the Velocity Collaboration Center, subject to negotiation and subsequent approval of a lease at a future time