Local Development Finance Authority
Regular MeetingSterling Heights, MI · January 24, 2018
Minutes
CITY OF STERLING HEIGHTS
LOCAL DEVELOPMENT FINANCE AUTHORITY
Approved
MINUTES OF THE SPECIAL MEETING
January 24, 2018 – 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 7:50 a.m.
Pledge of Allegiance
Members present at roll call: Ellanore Evans, Phillip Hunsberger, Richard Kincaid, John Lettang,
Steve Pomaville, Camille Silda, Jill Tomyn
Members absent: David Corba, Stephanie Eagen, Laurel Johnson, Fred Molnar, Jim Ruma,
Corey Venetis, Orest Zachary
Also in attendance: Luke Bonner, Economic Development Consultant – City of Sterling Heights,
Kathryn Quell, Management Services Specialist – City of Sterling Heights
Motion to Approve the Agenda
Moved by Silda, supported by Evans, to approve the agenda as presented.
Ayes: All
Nays: None
Motion carried.
Motion to Approve the Minutes of January 16, 2018 Regular Meeting
Moved by Evans, supported by Lettang, to approve the minutes as presented.
Ayes: All
Nays: None
Motion carried.
New Business
To approve the Lease Agreement between A. G. Simpson (USA), Inc. and the Local
Development Finance Authority (LDFA).
Mr. Bonner presented that A. G. Simpson (USA), Inc. is a tier I supplier of bumpers and front
end systems. The company had experienced a major fire and needed space for one year. The
agreed upon rate is $18/square foot. This would provide a revenue source to support the Velocity
building. AGS has invested millions in Sterling Heights. They highly participate in city events
and donate a substantial amount of money to city events. Mr. Lettang stated that we are leasing
to service providers and questioned the direction of the incubator. Mr. Bonner stated that it is
not uncommon for an incubator to have an anchor tenant such as AGS. Mr. Bonner stated that
the city is exploring options as to the future of Velocity. In doing so, the city is looking at their
relationship with OU, the guidelines of the EDA grant, and potential earnings sources. Looking
to the future, some evaluation and long term decision making to decide the path is underway.
The possibility of how research fits into the plan is also being explored. Mr. Bonner stated that
as the plan and direction are formed, information will be shared with the LDFA Board.
Moved by Silda, supported by Pomaville to approve the Lease Agreement between A. G.
Simpson (USA), Inc. and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
To approve the Renewal Month-to-Month Lease Agreement between the SBDC and the
Local Development Finance Authority (LDFA).
Ms. Quell presented that the Lease Agreement for the SBDC expired December 31, 2017. The
SBDC had vacated their offices as of January 31, 2018. This month-to-month renewal will allow
accounting to bill the SBDC for the month of January.
Moved by Lettang, supported by Evans to approve the Renewal Month-to-Month Lease
Agreement between the SBDC and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
Old Business
Board Members Report
Public Comment
None
Adjournment
Moved by Lettang, supported by Kincaid to adjourn.
Ayes: All
Nays: None
Motion carried.
The meeting adjourned at 8:20 am.
Kq
Minutes Approved 3/20/2018
John Lettang
Secretary
Agenda
CITY OF STERLING HEIGHTS
Special Meeting of the
LOCAL DEVELOPMENT FINANCE AUTHORITY
6633 18 Mile Road, Sterling Heights
586-884-9322
VELOCITY BUILDING
January 24, 2018
7:50 AM
MEETING CALLED TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF AGENDA
APPROVAL OF MINUTES OF January 16, 2018 Regular Meeting
NEW BUSINESS
1. To approve the Lease Agreement between A. G. Simpson (USA), Inc. and
the Local Development Finance Authority (LDFA).
2. To approve the Renewal Month-to-Month Lease Agreement between the
SBDC and the Local Development Finance Authority (LDFA).
OLD BUSINESS
PUBLIC COMMENT
ADJOURNMENT
CITY OF STERLING HEIGHTS
LOCAL DEVELOPMENT FINANCE AUTHORITY
Draft
MINUTES OF THE REGULAR MEETING
January 16, 2018 – 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: Ellanore Evans, Phillip Hunsberger, Laurel Johnson, Richard
Kincaid, John Lettang, Steve Pomaville, Jim Ruma, Jill Tomyn, Corey Venetis
Members absent: David Corba, Stephanie Eagen, Fred Molnar, Camille Silda, Orest Zachary
Also in attendance: Kathryn Quell, Management Services Specialist – City of Sterling Heights
Motion to Approve the Agenda
Moved by Ruma, supported by Venetis, to approve the agenda as presented.
Ayes: All
Nays: None
Motion carried.
Motion to Approve the Minutes of November 28, 2017 Special Meeting
Moved by Lettang, supported by Venetis, to approve the minutes as presented.
Ayes: All
Nays: None
Motion carried.
New Business
To approve the Renewal Insurance Premium betwwen the Michigan Municipal Risk
Management Authority and the Local Development Finance Authority (LDFA).
Ms Quell presented that the Renewal Insurance Premium documents cover the period of
December 15, 2017 thru December 15, 2018 for the Velocity building. The cost is $14,578.00,
however the LDFA is recovering $1832.00 back in Net Asset Distributions, for a net cost of
$12,746.00. Mr. Lettang inquired about the contents value of $25,175.00 and expressed that the
amount should be reviewed to sufficiently cover the contents of the building. Ms. Quell stated
that, since the Risk Management representative was absent from the meeting, she would report
back at the next LDFA meeting regarding this matter.
Moved by Pomaville, supported by Evans to approve the Renewal Insurance Premium between
the Michigan Municipal Risk Management Authority and the Local Development Finance
Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
To approve the Lease Renewal Agreement between Jetco Solutions and the Local
Development Finance Authority (LDFA).
Ms. Quell presented that Jetco Solutions will occupy space “1-D”, consisting of 237 square feet
at a rental rate of $322.00/month.
Moved by Ruma, supported by Venetis to approve the Lease Renewal Agreement between Jetco
Solutions and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
To approve the Lease Renewal Agreement between Microcide and the Local Development
Finance Authority (LDFA).
Ms. Quell stated that Microcide will occupy space “2-G” consisting of 1554 square feet at a
rental rate of $1064.00/month.
Moved by Lettang, supported by Evans to approve the Lease Renewal Agreement between
Microcide and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
Old Business
Board Members Report
Public Comment
None
Adjournment
Moved by Lettang, supported by Evans to adjourn.
Ayes: All
Nays: None
Motion carried.
The meeting adjourned at 8:20 am.
Kq
LDFA Business
Sterling Heights, Michigan
1/24/18
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: To approve the Lease Agreement between A. G. Simpson (USA), Inc. and the
Local Development Finance Authority (LDFA).
Submitted By: Kathryn Quell, Building Services Specialist, Velocity
Executive Summary
Attached for LDFA review is a Lease Agreement consisting of 4818.20 square feet at a rental
rate of $18.00/square foot.
Suggested Action:
MOVED BY: SECONDED BY:
RESOLVED: to approve the Lease Agreement between A.G. Simpson and the Local
Development Finance Authority (LDFA).
LDFA Business
Sterling Heights, Michigan
1/24/18
AGENDA STATEMENT
OMB AS03 Rev. 11/04
Item Title: To approve the Month-to-Month Lease Agreement between SBDC and the
Local Development Finance Authority (LDFA).
Submitted By: Kathryn Quell, Building Services Specialist, Velocity
Executive Summary
Attached for LDFA review is a Month-to-Month Lease Agreement commencing on January 1,
2018 for space #3-H, consisting of 695 square feet at a rental rate of $500.00/month.
Suggested Action:
MOVED BY: SECONDED BY:
RESOLVED: to approve the Month-to-Month Lease Agreement between SBDC and the
Local Development Finance Authority (LDFA).
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