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 October 30, 2013 5:30 PM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF August 21, 2013 Regular Meeting NEW BUSINESS 1. To approve the Lease Agreement between Microcide, Inc., and the Local Development Finance Authority (LDFA). OLD BUSINESS BOARD MEMBERS REPORT PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING August 21, 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, Lori Doughty, Phillip Hunsberger, John Lamerato, John Lettang, Victor Martin, Casey Sobczak, Jill Tomyn Members absent: Stephen Cassin, Stephanie Eagen, Richard Kincaid, David Wilson, Orest Zachary Also in attendance: Kasey Green, Economic Development Manager, Julie Gustafson, Director Macomb OUIncubator Motion to Approve the Agenda Moved by Lettang, supported by Lamerato, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of June 12, 2013 Special Meeting Moved by Lettang, supported by Lamerato, to approve the agenda as presented. Ayes: All Nays: None Motion carried. New Business To approve the lease agreement between Amber Global Solutions and the Local Development Finance Authority (LDFA). Mr. Corba asked if Amber Global Solutions is classified as a supporting company. Ms. Gustafson confirmed that they are. Discussion ensued with Ms. Gustafson in regards to attracting new tenants. Ms. Gustafson stated that OU recently published an advertisement for the Center. Mr. Corba confirmed with Ms. Gustafson that many potential tenants are currently working out of their homes. Moved by Lettang, supported by Lamerato to approve lease agreement Ayes: All Nays: None Motion carried. To approve the lease termination agreement between Vidorum and the Local Development Finance Authority (LDFA), and authorize the LDFA Chairperson to execute the approved Agreement on behalf of the LDFA. Ms. Green stated Vidorum has an inability to pay and has already vacated the premises. Mr. Martin confirmed that Vidorum was a failure and questioned what type of business they were. Ms. Green responded that Vidorum stated they are not able to focus on the business at this time and Vidorum was an app developer for applications for mortgage companies. Moved by Lettang, supported by Sobczak to approve lease termination agreement Ayes: All Nays: None Motion carried. To approve the Macomb-OU INCubator Annual Fiscal Year 2013 Report Moved by Hunsberger, supported by Lamerato to approve Macomb-OU INCubator Annual Fiscal Year 2013 Report Mr. Corba inquired as to goals and vacancy rates. Ms. Gustafson stated there is not a percentage stated goal. Ms. Gustafson stated projections will be done this fiscal year upon completion of the agreement between OU and City of Sterling Heights. Mr. Cobra inquired about Coliant in regards to employees, location and sales growth. Ms. Gustafson stated they have two sites with 16 employees, some on-site and some off-site and they are growing in the right direction with some sales overseas. Mr. Corba questioned $5.5 million in total capital raised on the report, clarifying that the number is comprised of both, clients in and out of the building. Ms. Gustafson confirmed the capital reported is representative of all types of capital raised: banking, equity investors, state funding, business acceleration fund (state grant fund) and that detail of all the funding could be provided. Mr. Lettang inquired on goal and objectives basis. Ms. Gustafson stated they are based on past history. Mr. Lettang asked about established objectives for conversion rates. Ms. Gustafson stated conversion rates and projections could be provided once SalesForce is installed by the end of the year utilizing their lead component. Martin requested reporting of graduation rates and failure rates. Ms. Gustafson stated those could be provided. Ayes: All Nays: None Motion carried. Motion to request a representative of the City of Sterling Heights provide an update on the agreement between the LDFA, OU INCubator and Oakland University. Ms. Green stated an agreement clarifying the relationship between the LDFA, OU INCubator and Oakland University is currently in negotiations between the city attorney’s office and Oakland University’s legal department. Significant transitional items at Oakland University have delayed progress of the agreement. Approximately 90% of the agreement has been reached with a few items still in negotiation. Moved by Lamerato, supported by Corba to request a representative of the City of Sterling Heights provide an update on the agreement between the LDFA, OU INCubator and Oakland University. 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 5:52 pm KQ  LDFA Business Sterling Heights, Michigan 10/30/13 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between Microcide, Inc., and the Local Development Finance Authority (LDFA) Submitted By: Barry Hicks, Economic Development Manager 586-884-9327 Executive Summary Attached for LDFA review is a November 1, 2013 to October 31, 2016 lease agreement between Microcide, Inc., and the LDFA. Microcide, Inc. has signed the standard lease agreement for space #2-G in section 2 of the building containing approximately 1554 square feet of space. Monthly rent will be $650.00 for the first 12 months and $1295.00 for the remaining 24-month period. Microcide, Inc., is a technology company that develops and markets antimicrobial products for households, personal care, health care and food industries. The company has developed and patented novel technology to produce non-toxic and environmentally friendly broad-spectrum microbicidal products with FDA and USDA approved food grade ingredients. The company was nominated for the Presidential award for GREEN technology in 2005. Both, the US Navy and NASA have selected Microcide sanitizing products. Microcide proposes to commercialize the product lines already developed for food, health care and other industries. The company further proposes, in cooperation with the Michigan Dept of Agriculture, to enhance value added products to the farm communities. Microcide has 13 patents and registered trademarks in its portfolio. These form a basis for approximately 30 to 40 products for various sectors of industry. Macomb OU Incubator has classified them as a "Technology" based company. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Agreement between Microcide, Inc., and the Local Development Finance Authority (LDFA) contingent upon compliance of all applicable approvals and codes from the building department.