Local Development Finance Authority

CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Approved MINUTES OF THE SPECIAL MEETING June 15, 2016 – 8:00 a.m. 40555 Utica Road, Sterling Heights, MI 48313 586-884-9322 City Council Chambers Phil Hunsberger called the meeting to order at 8:00 a.m. Pledge of Allegiance Members present at roll call: Phillip Hunsberger, Laurel Johnson, Richard Kincaid, John Lamerato, Camille Silda, Kerry Weishaupt, Orest Zachary Members absent: David Corba, Lori Doughty, Stephanie Eagen, John Lettang, Victor Martin, Jill Tomyn Also in attendance: Sal Conigliaro, Senior Project Engineer – HRC; Denice Gerstenberg, City Development Director – City of Sterling Heights; Larry Herriman, Interim Executive Director – Macomb OU-INCubator; Mark Ignash, Client Support Administrator and Strategist – Macomb OU-INCubator; Kathryn Quell, Building Services Specialist – City of Sterling Heights; Luke Bonner, Senior Economic Development Advisor – City of Sterling Heights; Jennifer Varney, Treasurer – City of Sterling Heights. Motion to Approve the Agenda Moved by Zachary, supported by Weishaupt, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of March 15, 2016 Regular Meeting Moved by Zachary, supported by Silda, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business Presentation of the LDFA/SMARTZONE District Improvement Plan for LDFA Board review and comment. Ms. Gerstenberg introduced Mr. Conigliaro to present the findings of the study performed by HRC to brand the district and plans for moving forward to the future. The presentation is to educate the LDFA Board and welcome comments and constructive criticism. Mr. Conigliaro presented the plan prepared by HRC. To approve the Lease Agreement between FPH Group, Inc. and the Local Development Finance Authority (LDFA). Ms. Quell stated that FPH Group, Inc. is part of the International Landing Zone sponsored by Macomb County. Ms. Quell stated that FPH is a Canadian company that maufactures electrical, hydraulic and pneumatic components. FPH will occupy space #1-E consisting of approximately 370 square feet. The lease period is May 1, 2016 thru September 30, 2016. Moved by Zachary, supported by Kincaid to approve the Lease Agreement between FPH Group, Inc. and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the renewal Lease Agreement between Clean Energy Innovations, LLC and the Local Development Finance Authority (LDFA). Clean Energy Innovations, LLC is renewing space #3-F consisting of approximately 831 square feet at a rental rate of $741.67/month. The lease rate is increasing to bring all tenants in line and allow consistency. Rates were determined by following the lease rate pricing model as presented at the February LDFA meeting by Mr. Herriman. The renewal period is June 1, 2016 thru May 31, 2017. Moved by Zachary, supported by Weishaupt to approve the renewal Lease Agreement between Clean Energy Innovations, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the renewal Lease Agreement between Mango Tree Capital, LLC and the Local Development Finance Authority (LDFA). Mango Tree Capital, LLC is renewing space #2-C consisting of approximately 593 square feet at a rental rate of $563.83/month. The renewal period is June 1, 2016 thru May 31, 2017. Moved by Zachary, supported by Kincaid to approve the renewal Lease Agreement between Mango Tree Capital, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Agreement between Blackbourne Worldwide sponsored by Logistics Specialties, Inc. through the Adopt-A-Biz program and the Local Development Finance Authority (LDFA). Mr. Herriman stated that the Adopt-A-Biz program offers up to $10,000 in sponsorship through LSI and Butzel Long. Blackbourne Worldwide is a cyber security company that is in the process of commercializing a product. They are growing and have hired two Oakland University interns. Blackbourne Worldwide is a cyber platform for defense working to increase efficiency in cyber defense. Blackbourne Worldwide will occupy space #3-J consisting of approximately 810 square feet. The lease period is May 1, 2016 thru December 31, 2016. Moved by Silda, supported by Zachary to approve the Lease Agreement between Blackbourne Worldwide sponsored by Logistics Specialties, Inc. through the Adopt-A-Biz program and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Agreement between Social Drone and the Local Development Finance Authority (LDFA). Mr. Herriman stated that Social Drone is a spin out from “Urbn Technology.” Social Drone is an IT company that performs web scraping. They are developing a new product with the USB drive. Social Drone will occupy space #3-I consisting of approximately 833 square feet at a rental rate of $792.00/month. The lease period is July 1, 2016 thru June 30, 2017. Moved by Kincaid, supported by Zachary to approve the Lease Agreement between Social Drone and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. Presentation and update on the operations of the Macomb-OU INCubator. Mr. Herriman presented updates on the operations of the Macomb-OU INCubator. He then introduced Mr. Mark Ignash, Client Support Administrator and Strategist, who presented on three clients and his process of assessing each company. Old Business Mr. Luke Bonner updated the board that the satellite SmartZone partner, Genoa Township, did not meet all of their benchmarks. They did not establish their own LDFA by the deadline. Mr. Bonner stated that we may still apply for the extension closer to 2025. He went on to state that the MEDC did not accept any applications so the deadline for this year may be extended to December 31, 2016. Board Members Report Mr. Kerry Weishaupt announced his resignation from the LDFA Board due to reorganization in Warren Consolidated administration. Public Comment None Adjournment Moved by Lamerato, supported by Zachary to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:35 am. Kq Minutes Approved 8/30/2016 John Lettang Secretary