Local Development Finance Authority

CITY OF STERLING HEIGHTS Regular Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 6633 18 Mile Road, Sterling Heights 586-884-9322 VELOCITY BUILDING January 16, 2018 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF November 28, 2017 Special Meeting NEW BUSINESS 1. To approve the Renewal Insurance Premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA). 2. To approve the Lease Renewal Agreement between Jetco Solutions and the Local Development Finance Authority (LDFA). 3. To approve the Lease Renewal Agreement between Microcide and the Local Development Finance Authority (LDFA). OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE SPECIAL MEETING November 28, 2017 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 Velocity Building Phil Hunsberger called the meeting to order at 8:00 a.m. Pledge of Allegiance Members present at roll call: David Corba, Ellanore Evans, Phillip Hunsberger, Richard Kincaid, John Lettang, Steve Pomaville, Jim Ruma, Camille Silda, Corey Venetis Members absent: Stephanie Eagen, Laurel Johnson, Fred Molnar, Jill Tomyn, Orest Zachary Also in attendance: Larry Herriman, Executive Director-Macomb OU-Incubator; John Eaton, Client Strategist-Macomb OU-Incubator; Kathryn Quell, Management Services Specialist – City of Sterling Heights Motion to Approve the Agenda Moved by Silda, supported by Ruma, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of September 19, 2017 Regular Meeting Moved by Lettang, supported by Kincaid, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve the Month-to-Month Lease Agreement between SAPA Transmissions and the Local Development Finance Authority (LDFA). Ms Quell presented that SAPA Transmissions, a previous tenant in the ILZ (International Landing Zone) of the Velocity building, is moving to a larger space due to growth. SAPA Transmissions will occupy space #3-C, consisting of 652 square feet at a rental rate of $950.00/month. Moved by Lettang, supported by Venetis to approve the Month-to-Month Lease Agreement between SAPA Transmissions and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Month-to-Month Lease Agreement between Mango Tree Capital, LLC and the Local Development Finance Authority (LDFA). Ms. Quell presented that Mango Tree Capital, LLC will occupy space “Office 2”, consisting of 150 square feet at a rental rate of $200.00/month. Moved by Venetis, supported by Lettang to approve the Month-to-Month Lease Agreement between Mango Tree Capital, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Termination Agreement between Kosch Dining Solutions, LLC and the Local Development Finance Authority (LDFA) effective October 15, 2017. Ms. Quell stated that Kosch Dining Solutions, LLC, at the time of renewal in April 2017, had indicated their interest in pursuing a location to consolidate their operations. They were successful in finding a location and gave their 30-day notification to vacate as of October 15, 2017. Moved by Lettang, supported by Evans to approve the Lease Termination Agreement between Kosch Dining Solutions, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Termination Agreement between The Automation of Things and the Local Development Finance Authority (LDFA) effective October 31, 2017. Mr. Herriman stated that the founder decided to no longer fund The Automation of Things and therefore, the company has ceased operation and vacated the building as of October 31, 2017. Moved by Evans, supported by Silda to approve the Lease Termination Agreement between The Automation of Things and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. Discussion of the operations of the Macomb-OU Incubator with Larry Herriman, Interim Director – Oakland University and John Eaton, Client Strategist. Old Business Ms. Quell stated that after multiple attempts to collect the outstanding debt, Urbn Technologies/Social Drone has been unresponsive. On August 1, 2017, O’Reilly Rancillio P.C. attempted to collect the debt whereby the tenant was contacted via certified mail. Mr. Herriman stated that the outstanding debt of Urbn Technologies/Social Drone owed to Oakland University for cyber classes has remained in collection with no results. It is the recommended that the outstanding invoices be written off. Moved by Lettang, supported by Evans to write off the outstanding debt of Urbn Technologies/Social Drone. Ayes: All Nays: None Motion carried. Board Members Report Public Comment None Adjournment Moved by Evans, supported by Kincaid to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:20 am. Kq  LDFA Business Sterling Heights, Michigan 1/16/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the renewal insurance premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist, Velocity Executive Summary Attached for LDFA review is a December 15, 2017 thru December 15, 2018 renewal insurance premium. Note the cost is $14,578, however the LDFA is recovering $1832 back in Net Asset Distributions and Loss Fund Distributions, for a net cost of $12,746.00. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the renewal insurance premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 1/16/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Renewal Agreement between Jetco Solutions and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a February 1, 2018 thru January 31, 2019 Lease Renewal Agreement between Jetco Solutions and the Local Development Finance Authority (LDFA) for space #1-D consisting of approximately 237 square feet at a rate of $322.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Renewal Agreement between Jetco Solutions and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 1/16/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Renewal Agreement between Microcide and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a February 1, 2018 thru January 31, 2019 Lease Renewal Agreement between Microcide and the Local Development Finance Authority (LDFA) for space #2-G consisting of approximately 1554 square feet at a rate of $1064.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Renewal Agreement between Microcide and the Local Development Finance Authority (LDFA).