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 May 15, 2013 5:30 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF April 17, 2013 Regular Meeting NEW BUSINESS 1. Status report on negotiation for service agreement with Macomb-OU Incubator (Kasey Green) 2. Motion to approve the 2013/2014 Fiscal Year Budget OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  LDFA Business Sterling Heights, Michigan 5/15//13 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Motion to approve the 2013/2014 Fiscal Year Budget for the operation of the Local Development Financing Authority (LDFA) Submitted By: Kasey Green, Economic Development Manager 586-884-9327 Executive Summary Pursuant to Public Act 281 of 1986, also known as the Local Development Financing Act, a budget has been prepared for the operation of the authority for the ensuing fiscal year. Attached is the budget for your review and approval Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the 2013/2014 Fiscal Year Budget for the operation of the Local Development Financing Authority (LDFA)  LDFA SMARTZONE BUDGET FY 2013-2014 BEGINNING CASH BALANCE $0 2013/2014 Revenues - TIF Capture Account No. TIF PLAN SETS THAT THIS CANNOT EXCEED $500K 8740-7040-422000 TIF Capture SmartZone Capture - BAE $98,045 SmartZone Capture - Chrysler: Paint Shop $366,891 SmartZone Capture - Chrysler: Body shop $35,064 Total Revenue - TIF: $500,000 Revenues - Rent 8766-4040-667716 Rental Income SBTDC, paid by MCPED - Lab 1D + 1E ($500 per month through 12/31/13) $3,000 Kosch Catering - Kitchen ($700.83 per month through 9/1/15) $8,410 Kosch Catering - Lab 2A ($484.46 per month through 9/1/13) $968 BRAR Technology - Lab 1F ($395 per month through 11/30/13) $1,975 Terra-Telesis - Lab 2E ($1 per month through 8/31/13) $2 MangoTree Capital - Lab 2C ($544 per month through 5/31/14) $5,984 Coliant - Lab 2F ($687 per month through 8/31/13) $1,374 Metiss Group - Lab 3D ($806 per month through 11/30/13) $4,030 Golden Products & Services - Lab 3L ($185 per month through 12/31/13) $1,110 KTISIS - Lab 2B ($580 per month through 12/31/13) $3,480 Coupon Wallet - Lab 2I ($665 per month through 4/1/14) $5,985 LSI - Lab 3J ($675 per month through 3/31/14) $6,075 Vidorum/Quality Field Teim - Lab 2K ($185 per month through 4/30/14) $1,850 Total Revenue- Rental Income: $44,243 TOTAL REVENUE $544,243 Expenses - Building Expenses and Incubator Operation Account No. PER TIF PLAN, $285K MAX (PLUS RENTAL INCOME) 8770-0716-751000 Office Supplies, Copier, Postage, Printing, Keys, Fobs $2,500 8770-0716-806001 Legal Services - City Attorney $1,000 8770-0716-826000 Contracted Services Dumpster ($55 per month) $1,000 Lawn, Landscaping & Snow $35,000 Security & Fire Systems Monitoring - ($200 /mo) $2,400 Cleaning Service (Rugs $35/mo, Tedesco - $240/mo) $3,300 8770-0716-832000 Building Maintenance $22,500 8770-0716-913000 Property & Liability Insurance $11,400 8770-0716-921000 Electric $50,000 8770-0716-922000 Telephone and Internet $44,000 8770-0716-923000 Gas $40,000 8770-0716-925000 Water & Sanitary Sewer $12,000 87330000-390716 15% Fund Balance/Contingency $33,765 Total Expenses - Building & Incubator Operations: $258,865 Expenses - SmartZone Activities PER TIF PLAN, $215K MAX 87700716-963400 Velocity Capital Fund $67,000 87700716-805000 City of Sterling Heights Administative Services (personnel reimbursement) $82,000 8770-0716-880000 City of Sterling Heights Community Promotion (events, tradeshows, marketing) $5,000 8770-0716-902000 Publishing $1,000 Total Expenses - Smartzone Activities: $155,000 TOTAL EXPENSES $413,865 BALANCE $130,378