Local Development Finance Authority
Regular MeetingSterling Heights, MI · March 18, 2015
Minutes
CITY OF STERLING HEIGHTS
LOCAL DEVELOPMENT FINANCE AUTHORITY
Approved
MINUTES OF THE REGULAR MEETING
March 18, 2015 – 8:00 a.m.
40555 Utica Road, Sterling Heights, MI 48313
586-446-2489
City Council Chambers
Phil Hunsberger called the meeting to order at 8:08 a.m.
Pledge of Allegiance
Members present at roll call: Stephen Cassin, Phillip Hunsberger, Laurel Johnson, Richard
Kincaid, John Lettang, Victor Martin, Orest Zachary
Members absent: David Corba, Lori Doughty, Stephanie Eagen, John Lamerato, Paula Sorrell,
Jill Tomyn
Also in attendance: Barry Hicks, Economic Development Manager, Julie Gustafson, Director,
Oakland University, Mike Viazanko, Building Official, City of Sterling Heights
Motion to Approve the Agenda
Moved by Martin, supported by Zachary, to approve the agenda as presented.
Ayes: All
Nays: None
Motion carried.
Motion to Approve the Minutes of February 18, 2015 Regular Meeting
Moved by Cassin, supported by Martin, to approve the minutes as presented.
Ayes: All
Nays: None
Motion carried.
New Business
To approve the 2014/2015 budget adjustment to fund the repair/replacement of the HVAC
system.
Mr. Hicks stated that originally $250,000 was set to fix the parking lot. The issue with the
HVAC system of the building has now taken precendence. Mr. Viazanko stated that the issue is
with the controllers and modules of the system and the bid from North Star Mechanical will best
address the problems with the system. Mr. Hunsberger inquired if the porcess involved
competitive bidding. Mr. Hicks stated that the LDFA is an independent authority and has the
ability to approve a bid from the three that were submitted. Mr. Hunsberger clarified that the
motion is for a change in expenditures moving funding from the parking lot to the HVAC and
the total budget does not change. Mr. Hicks agreed.
Moved by Martin, supported by Zachary to approve the 2014/2015 budget adjustment to fund the
repair/replacement of the HVAC system.
Ayes: All
Nays: None
Motion carried.
To approve the purchase and installation of two projectors.
Mr. Hicks stated that we want to represent ourselves as a high tech facility. We are lacking in
technology needs. Any expense under $10,000 does not require a bidding process. This is just a
modification to the budget to replace older, outdated projectors with newer technology. Mr.
Martin suggested Smart Services on Fifteen Mile Road and Van Dyke in Sterling Heights. He
has had personal experience with them and they are a business in the city. Mr. Hunsberger
inquired if television technology was considered. Mr. Hicks said it was not. Mr. Zachary asked if
the smaller projector was portable. Mr. Hicks said yes. Mr. Martin stated that in the smaller
space a television would be the better choice due to the expense of bulb replacement.
Moved by Cassin, supported by Lettang to approve the purchase and installation of two
projectors.
Ayes: All
Nays: None
Motion carried.
To approve the revised Lease Agreement between Microcide, Inc. and the Local
Development Finance Authority (LDFA) subject to a thirty day term by either party or
right of refusal to share the space with another tenant or divide the space.
Ms. Gustafson stated that Microcide occupies a larger space than currently needed. They
originally signed at a discounted rate due to the fact that they were not utilizing the whole space.
At the completion of the first year, their rent was to increase. Microcide had requested to stay at
the reduced rate for the entire second year, however, only six additional months were granted.
Mr. Hunsberger asked if anyone else is waiting to lease in the building. Ms. Gustafson said no.
Mr. Martin inquired if Microcide anticipates utilizing the whole space in six months. Ms.
Gustafson said yes. Mr. Hunsberger offered that at the expiration of the six month time period,
we could offer that they share space with another tenant subject to a thirty day term by either
party.
Moved by Martin, supported by Kincaid to approve the revised Lease Agreement between
Microcide, Inc. and the Local Development Finance Authority (LDFA) subject to a thirty day
term by either party or right of refusal to share the space with another tenant or divide the space.
Ayes: All
Nays: None
Motion carried.
To approve the Lease Agreement between Golden Products and Services, LLC and the
Local Development Finance Authority (LDFA).
Ms. Gustafson stated that Golden Products currently occupies a cubicle and have requested to
lease the front portion of suite #2-D at a reduced rate. Suite #2-D is currently vacant and
miscellaneous pieces of extra furniture and cubicle parts are being stored in the suite. Should the
need arise, with an interested tenant, the suite would need to be emptied. Golden Products has
agreed to lease the space “as is” and utilize the front portion of the space to provide a secure
place, with a door, to store their equipment.
Moved by Zachary, supported by Kincaid to approve the Lease Agreement between Golden
Products and Services, LLC and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
To approve and adopt the 2015/2016 Fiscal Year Budget for the operation of the Local
Development Finance Authority (LDFA).
Mr. Hicks stated that he expects some utilities to go down with the new HVAC system. $500,000
was in the budget with repairs of $750,000 for the parking lot. The current fund balance is
$545,048. Mr. Hicks stated assuming the TIF cap stays the same, we will have to dip into the
fund balance. BAE systems has never submitted the required documents to verify their
expenses. We will be terminating our agreement with them and will be reallocating the money
into the LDFA budget. Mr. Hunsberger inquired if there is a more current statement. Mr. Hicks
said no. Mr. Martin stated that management services seems too high. Mr. Hicks said he would
have to go back to see what is part of management services. Mr. Lettang suggested it would be
helpful to see a roll forward of the fund balance. Mr. Martin inquired if the LDFA could see the
income side of this budget. Mr. Hicks said yes. Mr. Kincaid asked if anyone is looking for any
grants to help with expenses. Mr. Cassin stated that the county is constantly trying to find
funding for both facility and operations of Velocity. Mr. Hunsberger asked if the board could see
income, expenses and fund balance with a breakdown of management expenses. Mr. Hicks said
he would email it to them. Mr. Zachary suggested it would be helpful to have a time period with
dates. Mr. Hicks said he would add that also.
Moved by Cassin, supported by Lettang to approve and adopt the 2015/2016 Fiscal Year Budget
for the operation of the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
Old Business
None
Board Members Report
None
Public Comment
None
Adjournment
Moved by Kincaid, supported by Zachary to adjourn.
Ayes: All
Nays: None
Motion carried.
The meeting adjourned at 9:20 am
KQ
Minutes Approved 04/27/2015
John Lettang
Secretary
Agenda
CITY OF STERLING HEIGHTS
Regular Meeting of the
LOCAL DEVELOPMENT FINANCE AUTHORITY
40555 UTICA ROAD
586-884-9322
CITY COUNCIL CHAMBERS
March 18, 2015
8:00 AM
MEETING CALLED TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF AGENDA
APPROVAL OF MINUTES OF February 18, 2015 Regular Meeting
NEW BUSINESS
1. To approve the recommended proposal for the repair/replacement of the
HVAC system.
2. To approve the purchase and installation of two projectors.
3. To approve the revised Lease Agreement between Microcide, Inc. and the
Local Development Finance Authority (LDFA).
4. To approve the Lease Agreement between Golden Products and Services,
LLC and the Local Development Finance Authority (LDFA).
5. To approve and adopt the 2015/2016 Fiscal Year Budget for the operation
of 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
February 18, 2015 – 8:00 a.m.
40555 Utica Road, Sterling Heights, MI 48313
586-446-2489
City Council Chambers
Phil Hunsberger called the meeting to order at 8:10 a.m.
Pledge of Allegiance
Members present at roll call: Stephen Cassin, David Corba, Stephanie Eagen, Phillip
Hunsberger, Richard Kincaid, John Lamerato, Victor Martin, Jill Tomyn
Members absent: Lori Doughty, Laurel Johnson, John Lettang, Victor Martin, Paula Sorrell,
Orest Zachary
Also in attendance: Barry Hicks, Economic Development Manager
Motion to Approve the Agenda
Moved by Kincaid, supported by Lamerato, to approve the agenda as presented.
Ayes: All
Nays: None
Motion carried.
Motion to Approve the Minutes of January 28, 2015 Regular Meeting
Moved by Lamerato, supported by Corba, to approve the minutes as presented.
Ayes: All
Nays: None
Motion carried.
New Business
To approve the Lease Agreement between Linked, LLC and the Local Development
Finance Authority (LDFA).
Moved by Eagen, supported by Kincaid to approve the Lease Agreement between Linked, LLC
and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
Old Business
None
Board Members Report
None
Public Comment
None
Adjournment
Moved by Kincaid, supported by Tomyn to adjourn.
Ayes: All
Nays: None
Motion carried.
The meeting adjourned at 8:15 am
KQ
LDFA Business
Sterling Heights, Michigan
3/18/15
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: To approve the recommended proposal for the repair/replacement of the
HVAC system.
Submitted By: Barry Hicks, Economic Development Manager 586-884-9327
Executive Summary
Presentation by Mike Viazanko, Building Official, for the City of Sterling Heights in regards to
proposals received and the recommended course of action for the HVAC system at Velocity,
located at 6633 18 Mile Road, Sterling Heights, MI 48314.
Suggested Action:
MOVED BY: SECONDED BY:
RESOLVED: to approve the recommended proposal for the repair/replacement of the
HVAC system.
LDFA Business
Sterling Heights, Michigan
3/18/15
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: To approve the purchase and installation of two new projectors.
Submitted By: Barry Hicks, Economic Development Manager 586-884-9327
Executive Summary
The Velocity facility hosts a wide array of group meetings and presentations. The current
projectors are outdated with limited capabilites. This proposal is to purchase two new projectors.
Suggested Action:
MOVED BY: SECONDED BY:
RESOLVED: to approve the recommended proposal for the purchase and installation of
two new projectors.
LDFA Business
Sterling Heights, Michigan
3/18/15
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: To approve the revised 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 February 1, 2014 thru January 31, 2017 lease agreement between
Microcide, Inc., and the LDFA.
Microcide, Inc. originally signed the standard lease agreement for space #2-G in section 2 of the
building containing approximately 1554 square feet of space with monthly rent of $650.00 for
the first 12 months (February 1, 2014 thru January 31, 2015) and $1295.00 for the remaining 24-
month period (February 1, 2015 thru January 31, 2017). They have requested to continue in the
occupied space at the current rate of $650.00 per month for the six month period of February 1,
2015 thru July 31, 2015.
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 revised Lease Agreement between Microcide, Inc., and the
Local Development Finance Authority (LDFA).
LDFA Business
Sterling Heights, Michigan
3/18/15
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: To approve the Lease Agreement between Golden Products and Services,
LLC 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 February 1, 2015 thru July 31, 2015 lease agreement between
Golden Products and Services, LLC and the LDFA.
Golden Products and Services, LLC signed a standard lease agreement on December 19, 2012
for space #3-L in section 3 of the building containing approximately 54 square feet. The space is
a cubicle with monthly rent of $185.00. To provide additional office space, they have requested
to rent the front area of suite #2-D “as is” at the rate of $250.00 per month for the six month
period of February 1, 2015 thru July 31, 2015.
Golden Products and Services are an Engineering product design, development and services
startup business, focusing on patented continuous variable transmission (CVT) for non-
automotive applications.
Suggested Action:
MOVED BY: SECONDED BY:
RESOLVED: to approve the Lease Agreement between Golden Products and Services,
LLC, and the Local Development Finance Authority (LDFA).
LDFA Business
Sterling Heights, Michigan
3/18/15
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: Approval and adoption of the 2015/2016 Fiscal Year Budget for the operation of the
Local Development Financing Authority (LDFA)
Submitted By: Barry Hicks, 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.
Suggested Action:
MOVED BY: SECONDED BY:
RESOLVED: to approve and adopt the 2015/2016 Fiscal Year Budget for the operation of
the Local Development Financing Authority (LDFA)
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