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 July 17, 2018 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF June 19, 2018 Regular Meeting NEW BUSINESS 1. To approve the Lease Renewal Agreement between Election Systems and Software and the Local Development Finance Authority (LDFA). 2. To approve a contract for Sterling Drive Industrial Subdivision Sectional Concrete Repairs, City Project #18-317 (Estimated Contract Cost $517,249.00). 3. To approve design expenditure for LDFA Signs – Sterling Ponds Blvd. And Center Drive, City Project #18-329 (Estimated Contract Cost $17,116.00). OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING June 19, 2018 – 8:00 a.m. 40555 Utica Road, Sterling Heights, MI 48314 586-884-9322 City Hall Phil Hunsberger called the meeting to order at 8:02 a.m. Pledge of Allegiance Members present at roll call: David Corba, Stephanie Eagen, Phillip Hunsberger, Laurel Johnson, Richard Kincaid, Steve Pomaville, Jill Tomyn Members arrived after roll call: Ellanore Evans, John Lettang, Corey Venetis Members absent: Fred Molnar, Jim Ruma, Camille Silda, Orest Zachary Also in attendance: Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights; Jason Castor, City Development Director – City of Sterling Heights, Jennifer Varney, Budget and Finance Director – City of Sterling Heights; Mary Jaganjac, Treasurer – City of Sterling Heights; Larry Herriman, Executive Director – Macomb OU Incubator; Dr. David Stone, Associate Vice President-Research – Oakland University; Brian Boyle, Co- Founder – Issue Media Group Motion to Approve the Agenda Moved by Eagen, supported by Johnson, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of May 15, 2018 Regular Meeting Moved by Pomaville, supported by Eagen, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To consider a Proposal from Issue Media Group for a marketing partnership. Mr. Bonner presented a PowerPoint highlighting the advantages of partnering with Issue Media Group to communicate growth and business news. By doing so, it would cultivate partnerships, sharing amongst business owners in the area. Mr. Boyle presented on the program and its capabilities to mainstream media. Mr. Corba inquired as to the readership of the material. Mr. Boyle answered the readership would be community stakeholders. Mr. Pomaville asked if the news would be communicated throught the local media. Mr. Boyle responded that the news would be picked up through media partnerships. Mr. Corba inquired if this was a 2-year deal. Mr. Bonner responded yes. Mr. Corba asked if the success will be measured at a six month point after inception. Mr. Boyle responded that extensive feedback would be given at the six month benchmark. Mr. Hunsberger inquired if there is money in the budget to cover funding. Mr. Bonner stated that Jennifer Varney, Finance and Budget Director for the City of Sterling Heights will be discussing the budget as the next agenda item for today. Moved by Eagen, supported by Corba to approve the proposal between the City of Sterling Heights Local Development Finance Authority and Issue Media Group for a marketing partnership. Ayes: All Nays: None Motion carried. Discussion of Velocity and presentation of financials. Ms. Varney discussed the budget including the tax capture breakdown by taxing jurisdiction. The spreadsheet provided information of revenue and expenses from the LDFA District and SmartZone. Ms. Varney stated that the marketing proposal would come from Other Contracted Services in the 2018/19 Budget of $152,000. Mr. Lettang inquired if any additional funding to Oakland University was incorporated into this budget. Mr. Bonner stated no, but it could be through budget adjustments. Mr. Hunsberger asked if this budget has already been approved by City Council. Ms. Varney stated yes and that next year, the LDFA would approve the budget first and then submit to City Council a proposed budget. Mr. Bonner stated that a meeting took place between the City of Sterling Heights, Oakland University and Macomb County to discuss the incubator. Future meetings will be scheduled to develop a program. The details will be shared with the LDFA Board. Mr. Bonner stated that he anticipates a discussion of the outcome with the board in late summer or the fall of this year. Moved by Eagen, supported by Lettang to adopt the LDFA Busdget for fiscal year 2018/19. Ayes: All Nays: None Motion carried. To approve three Lease Termination Agreements and one Lease Agreement between Sequris Group and the Local Development Finance Authority (LDFA). Ms. Quell stated that Sequris Group currently occupies three suites at Velocity on month-to- month Lease Agreements. Sequris Group has notified the City of Sterling Heights that they are terminating the three Lease Agreements and vacating those three spaces. Additionally, Sequris Group will be leasing space #2-I consisting of 799 square feet at a rate of $1165.00/month. Moved by Venetis, supported by Evans to approve three Lease Termination Agreements and one Lease Agreement between Sequris Group and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve the Lease Termination Agreement between SAPA Transmissions and the Local Development Finance Authority (LDFA). Ms. Quell stated that SAPA Transmissions has expanded and notified the City of Sterling Heights that they are terminating their month-to-month Lease Agreement and vacating suite #2- C. Moved by Venetis, supported by Lettang to approve the Lease Termination Agreement between SAPA Transmissions and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. Old Business Board Members Report Public Comment None Adjournment Moved by Venetis, supported by Evans to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:55 am. Kq  LDFA Business Sterling Heights, Michigan 7/17/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Renewal Agreement between Election Systems and Software and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is an August 1, 2018 thru July 31, 2019 Lease Renewal Agreement between Election Systems and Software and the Local Development Finance Authority (LDFA) for space #3-J consisting of approximately 810 square feet at a rate of $1181.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Renewal Agreement between Election Systems and Software and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 7/17/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve design expenditure for LDFA Signs – Sterling Ponds Blvd. and Center Drive, City Project #18-329 (Estimated Contract Cost $17,116.00) Submitted By: Brent Bashaw, P.E., City Engineer Executive Summary: The 2016 LDFA/Smart Zone District Enhancement Report detailed target locations to install district monument signs. Four locations have been improved to date. The attached proposal allows for the design of the next two locations – at the 14 Mile Road intersection with Sterling Ponds Boulevard and at the Center Drive intersection with Mound Road. Location maps existing condition pictures of the proposed projects are enclosed. The signs will be themed to match the current LDFA signs, matching the recently installed sign at Mitchell Drive. The locations will receive lighting and landscaping improvements as well. The design proposal was submitted by Hubbell, Roth, and Clark Inc (HRC). HRC is currently under contract with the City for Consultant Engineering Services. The proposal estimates the cost at $17,116.00. The actual cost will be charged in accordance with the existing service contract. HRC designed the previous four signs and created the 2016 LDFA/Smart Zone District Enhancement Report. Upon completion of the design, the project will be solicited for construction and brought before the board for an approval of project award. The fiscal year 2018/2019 budget includes $400,000 for this project. The budget has been approved by City Council and the LDFA board. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve design expenditure for LDFA Signs – Sterling Ponds Blvd. and Center Drive, City Project #18-329 (Estimated Contract Cost $17,116.00) Cc: Jason Castor, City Development Director; Adam LaClair, Lead Inspector; Andrew Konkle, Civil Engineer II, Luke Bonner, Economic Development Manager  LDFA SIGNS CENTER DRIVE CITY PROJECT #18‐329 PROPOSED SIGN LOCATION  LDFA SIGNS CITY PROJECT #18‐329 RECENTLY INSTALLED LDFA SIGN AT MITCHELL DRIVE  July 10, 2018 Daniel W. Mitchell Nancy M . D . Faught Keith D. McCormack City of Sterling Heights Jesse B. VanDeCreek 40555 Utica Road Roland N. Alix Michael C. MacDonald Sterling Heights, Michigan 48317 James F. Burton Charles E. Hart Attention: Mr. Brent Bashaw, P.E., City Engineer Donna M. Martin Re: LDFA Improvements Phase II HRC Job No. 20160738 Gary J. Tressel Randal L. Ford Dear Mr. Bashaw: William R. Davis Dennis J. Benoit As requested, we are providing a proposal for the design and construction Robert F. DeFrain Thomas D. LaCross administration services required for the installation of LDFA icon monuments Albert P. Mickalich and tenant signs at Center Drive and Sterling Ponds Drive. Our proposal is based Timothy H. Sullivan on our discussions with you on June 26, 2018. Improvements will be similar to Thomas G. Maxwell those recently completed at the Velocity entrance off 18 Mile Road and further Marshall J. Grazioli defined below. Colleen L. Hill-Stramsak Bradley W. Shepler Scope of Work Karyn M. Stickel Jane M. Graham Todd J. Sneathen Our services will consist of design and construction administration of the Aaron A. Uranga Salvatore Conigliaro following improvements: Melissa A. Coatta Michael P. Darga Center Drive at Mound Road and Sterling Ponds Drive at 14 Mile Road Brian K. Davies James E. Scholl • Installation of LDFA Icon Monument and Tenant signs. Matthew G. Slicker James J. Surhigh • Electrical service to power irrigation and lighting improvements. Trevor S. Wagenmaker • Landscaping and irrigation adjacent to Icon Monuments and Tenant signs. Based on the above described scope of construction, the budgetary construction cost for the project is $220,000, including a construction contingency of 10%. In accordance with our Engineering Services Agreement, the design fee for the project is estimated to be $17,116. The construction administration fee is estimated to be $5,676. Invoices for these services will be provided monthly as the work is completed. If desired, we can provide an additional proposal to provide construction observation services during the construction phase of the project. If you have any questions or require any additional information, please contact the undersigned. Thank you again for the opportunity to submit this proposal Very truly yours, C:\Users\sconigliaro\Desktop\02_Proposal\LDFA_Phse2_Proposal_Letter.docx  Brent Bashaw July 10, 2018 HRC Job Number 20160738 HUBBELL, ROTH & CLARK, INC. Page 2 of 2 Michael MacDonald, P.E. Sal Conigliaro, P.E. Vice President Associate SC/sc pc: City of Sterling Heights; Luke Bonner, Jason Castor HRC; File C:\Users\sconigliaro\Desktop\02_Proposal\LDFA_Phse2_Proposal_Letter.docx  LDFA SIGNS STERLING PONDS BOULEVARD CITY PROJECT #18‐329 PROPOSED SIGN LOCATION