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 March 20, 2018 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF January 24, 2018 Regular Meeting NEW BUSINESS 1. To approve spending proposal in the SmartZone. Presentation by Luke Bonner. OLD BUSINESS Follow Up Q & A with Michigan Municipal Risk Management Authority in regards to inquiries made at the LDFA Board Meeting on January 16, 2018. 1/16/18 minutes: 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. PUBLIC COMMENT ADJOURNMENT  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