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 November 15, 2018 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF July 17, 2018 Regular Meeting NEW BUSINESS 1. To approve the contract of Comcast and BCN as network providers. 2. To approve Program Servicing Agreement dated November 15, 2018, between the City of Sterling Heights Local Development Financing Authority and Oakland University to provide business incubator services pursuant to Public Act 281 of 1986 as amended. 3. To approve the Lease Agreement between Utica Community Schools and the Local Development Finance Authority (LDFA). OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Approved MINUTES OF THE REGULAR MEETING July 17, 2018 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 Velocity Building John Lettang called the meeting to order at 8:03 a.m. Pledge of Allegiance Members present at roll call: David Corba, Stephanie Eagen, Ellanore Evans, Laurel Johnson, John Lettang, Steve Pomaville, Camille Silda, Jill Tomyn Members absent: Phillip Hunsberger, Robert Ljucovic, Fred Molnar, Jim Ruma, Corey Venetis, 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, Brent Bashaw, City Engineer – City of Sterling Heights; John Eaton, Client Strategist – Macomb – Oakland University Incubator 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 June 19, 2018 Regular Meeting Moved by Evans, supported by Pomaville, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve the Lease Renewal Agreement between Election Systems and Software and the Local Development Finance Authority (LDFA). Ms. Quell presented a Lease Renewal Agreement for the time period of August 1, 2018 thru July 31, 2019 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. Moved by Pomaville, supported by Silda to approve the Lease Renewal Agreement between Election Systems and Software and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To approve a contract for Sterling Drive Industrial Subdivision Sectional Concrete Repairs, City Project #18-317 (Estimated Contract Cost $517,249.00). Mr. Bashaw presented that this project would involve replacing a good portion of Sterling Industrial Drive. The work was competitively bid and City Council awarded $3M in 2017 and $1.5M in 2018. The contractor agreed to the pricing. Mr. Lettang inquired about the 16% charge for Engineering. Mr. Bashaw responded that the charge includes average inspection costs, material testing costs, and mix meeting specifications. Mr. Bashaw stated that this is a ballpark figure on what those costs will be. The standard industry cost is 14 – 20%. Moved by Evans, supported by Silda to approve a contract for Sterling Drive Industrial Subdivision Sectional Concrete Repairs, City Project #18-317 (Estimated Contract Cost $517,249.00). Ayes: All Nays: None Motion carried. To approve design expenditure for LDFA Signs – Sterling Ponds Blvd. And Center Drive, City Project #18-329 (Estimated Contract Cost $17,116.00). Mr. Bashaw stated that there are four current locations of LDFA signs and these two, Sterling Ponds Blvd. And Center Drive will be the same design as the existing signage. The design cost includes engineering, electrical and landscaping. Mr. Bashaw stated that a bid package will be put together and the sign proposals will be brought to the LDFA Board for approval. Mr. Corba inquired as to the cost of the signs. Mr. Bashaw responded approximately $110,000/each. Moved by Pomaville, supported by Evans to approve design expenditure for LDFA Signs – Sterling Ponds Blvd. And Center Drive, City Project #18-329 (Estimated Contract Cost $17,116.00). Ayes: All Nays: None Motion carried. Old Business Mr. Bonner stated that meetings between the City of Sterling Heights, Oakland University and Macomb County are continuing to take place. The goal is to have a contract, budget and a 5-year strategic plan. Mr. Bonner stated that Oakland University, in the discussions, is looking to build off of their programs and skill sets. Mr. Bonner said that more developments of the discussions will be shared in September, with, hopefully, a contract. Ms. Quell stated that Coupon Wallet vacated Velocity on December 31, 2017, with 5 months of deliquent rent invoices (August 2017 – December 2017) at the time of their notice to vacate. Each of the invoices was in the amount of $760.00. On December 27, 2017, three of the five invoices were paid by Coupon Wallet. Ms. Quell stated that there has been no further payment, despite letters of collection by the City Attorney. Ms. Quell requested that the LDFA Board write-off the two outstanding invoices, # 40487 and #40552, each in the amount of $760.00. Moved by Corba, supported by Evans to write off Coupon Wallet invoices #40487 and #40552, each in the amount of $760.00 Ayes: All Nays: None Motion carried. Board Members Report Public Comment None Adjournment Moved by Johnson, supported by Evans to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:21 am. Kq Minutes Approved 9/18/2018 John Lettang Secretary  LDFA Business Sterling Heights, Michigan 11/15/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the contracts for Comcast and BCN as the network providers for Velocity. Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a 3-year contract agreement between the Local Development Finance Authority (LDFA) and Comcast to provide three phone lines to Velocity. Additionally, there is a 3-year contract between the Local Development Finance Authority (LDFA) and BCN for monthly internet service. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the 3-year contracts for Comcast and BCN as the network providers for Velocity.  LDFA Business Sterling Heights, Michigan 11/15/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Program Servicing Agreement dated November 15, 2018, between the City of Sterling Heights Local Development Financing Authority and Oakland University to provide business incubator services pursuant to Public Act 281 of 1986 as amended. Submitted By: Luke Bonner, Senior Economic Development Advisor Executive Summary Attached for LDFA review is a Program Servicing Agreement between the City of Sterling Heights Local Development Financing Authority and Oakland University. Supporting documentation, defining the agreement is outlined in Appendix A: Expanded Services, Appendix B: Forecasting Annual Activity-Based Metrics and Appendix C: A study of Entrepreneurship in Sterling Heights. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Program Servicing Agreement dated November 15, 2018, between the City of Sterling Heights Local Development Finance Authority and Oakland University to provide business incubator services pursuant to Public Act 281 of 1986 as amended.  PROGRAM SERVICING AGREEMENT This Program Servicing Agreement (“Agreement”), dated ___________, 2018, is between the City of Sterling Heights Local Development Finance Authority (“Authority”) and Oakland University (“University”). RECITALS A. The Michigan Legislature enacted Public Act 248 of 2000 to amend 1986 PA 281 to promote the development of high technology businesses throughout the State of Michigan (“Act”); B. The Michigan Economic Development Corporation (“MEDC”) was authorized by Public Act 105 of 2008 to designate three additional Certified Technology Parks within the State of Michigan by December 31, 2008; C. On December 30, 2008, the MEDC, the City of Sterling Heights (“City”), and the Authority entered into the Sterling Heights SmartZone Agreement, as permitted under Section 12a(3) of the Act, for the designation of an Authority District to be subsequently identified as a SmartZone and to establish the terms and conditions of that designation (“Sterling Heights SmartZone”); D. All Tax Increment Revenues received by the Authority from the Sterling Heights SmartZone may be expended by the Authority for all purposes and in those amounts authorized under the Act and the approved Tax Increment Financing Plan (“TIFP”); E. The University acknowledges the overall mission of the Sterling Heights SmartZone and all related services, programs, and events conducted therein, is to promote the incubation of early stage companies and related local job creation among technology-based entrepreneurial and newly formed companies, and the Authority’s desire to expand the tax base within the geographic boundaries of the Authority District. In furtherance of these missions, the University will operate a business incubator for the purposes of commercializing technology and fostering the growth of new, technology-based businesses within the City and the surrounding Macomb County community. The “Macomb OU-Incubator” will strive to foster an environment of entrepreneurship, innovation, and collaboration to support the launch of high-technology endeavors. F. On June 2, 2009, the Authority, the University and the City entered into an Affiliated Party Agreement, whereby the Authority engaged the University to operate the day-to- day functions of the Macomb OU-Incubator, and develop and implement programs designed to foster the use of the Macomb OU-Incubator with the consultation and guidance of the Authority. G. The University has established programs to foster the use of business incubators for the development of high-technology enterprises by providing technology and business programs consistent with the Act that include without limitation providing clients of a business incubator with: non-exclusive access to meeting facilities; opportunities for assistance in connection with business development, obtaining financing and capital, and commercialization of technology; opportunities for involvement in University-based educational and research 1 activities that include without limitation access to University institutes and centers, faculty research support, and student interns; access to library services to the extent such access does not violate any use limitations such as “academic use only” provisions in subscription and license agreements; and opportunities to engage faculty for sponsored research; H. As a result of the collaboration between the University and Authority, and due to the changing economic and business climate, the University and Authority believe it is in the best interest of the Authority and City that the Macomb-OU Incubator implement new programs designed to promote better outreach and new solutions to meet the business-development needs for local enterprises utilizing university expertise, laboratories, students and other assets; Now therefore, University and Authority agree as follows: 1. Business Incubator Services. The University will continue to operate the Macomb OU-INCubator programs for the Authority with appropriately budgeted Tax Increment Revenues and revenues from grants and other sources received from the Authority to the extent that there are sufficient revenues to permit the University to perform, after Operating Costs of the Macomb-INCubator are paid, the following services: (a) Ensure that no Tax Increment Revenue proceeds are used to fund the costs of direct subsidies, programs or services provided to or for tenants in the Macomb-OU Incubator such as research, stipends or grants, employee compensation subsidies, or grant proposal assistance. (b) Partner with the Authority to develop and implement strategies to facilitate the commercialization of technologies in the Sterling Heights SmartZone, as outlined in the SmartZone Plan, including those strategies identified on Appendices A. (c) Partner with the Authority to develop high technology activities located within the Sterling Heights SmartZone. (d) Develop and implement programs designed to foster the use of the Macomb-OU Incubator, such as by: (i) Using best efforts to identify and provide the City’s Building Coordinator with leads for tenants to lease space within the Macomb-OU Incubator building. (ii) Using best efforts to identify and provide the City’s Coordinator with leads for “virtual tenants” to lease mail boxes within the Macomb-OU Incubator building, and provide for occasional use of conference facilities. (iii) Providing expert commercialization business development assistance to tenant, affiliate and accelerator client companies within the Sterling Heights SmartZone; (iv) Conducting periodic business forums on commercialization resources for the University’s faculty and regional entrepreneurs, with special promotion of the Sterling Heights SmartZone; (v) Provide a single point of contact to expedite the process of identifying and coordinating University resources with other Affiliated Parties; 2  (vi) Coordinate access to the University’s laboratories, facilities, information technology, libraries, and intellectual property; (vii) Facilitate access to the University’s faculty, staff, and students, with emphasis on actively engaging in collaboration within the Sterling Heights SmartZone; (viii) Provide information on University technologies; and (ix) Identify and engage University-based resources, area corporate community support and volunteer executive mentors, and establish priorities for providing coordinated assistance with Macomb-OU Incubator tenants. (x) Use best efforts to meet or exceed the Activity-Based Metrics identified on AppendixB, which may be reviewed and, upon mutual agreement, adjusted annually by the Parties to meet the goals set for the Macomb-OU Incubator. (f) Provide, or cause to be provided to, the Authority and the MEDC periodic reports at least twice a year containing the following information: (i) A summary of the Sterling Heights SmartZone operations with the data points that are required to be reported to the MEDC from time-to-time, such as, number of businesses assisted, number of businesses locating or expanding in the Sterling Heights SmartZone, number of jobs created/retained, number of on-going and completed research projects, number of on-going and completed commercialization projects, and amount of investments in the Sterling Heights SmartZone, and similar information for activity of the Macomb-OU Incubator; (ii) The use of the Authority’s Tax Increment Revenues during the Authority’s prior fiscal year; (iii) Assist the City to identify and report the proposed use of the Authority’s Tax Increment Revenues for the Authority’s next fiscal year; (iv) Provide detailed metric reporting as depicted on Appendix B. (v) Such other information as the University may develop or encounter relating to companies in Macomb County which may be potential tenants of the Macomb-OU Incubator building or clients users of the Macomb-OU Incubator. (g) Participate in the activities of the Statewide SmartZone Council. (h) Attend regularly scheduled Authority Board meetings (i) Provide an update to the Authority’s Board on a quarterly basis including, but not limited to, a report on status of all Metrics identified on Appendix B. The University shall continue to provide these services in a professional manner consistent with guidelines set forth the Principles and Best Practices of Successful Business Incubation developed by the International Business Innovation Association and in accordance with this Agreement. 3  2. Program Support. The University will retain and maintain sufficient staff to promote and operate the Macomb-OU Incubator programs, which programs will be designed to meet the Activity-Based Metrics on Appendix B. The management of the reception area will continue to be performed by the City’s Building Coordinator and will include but is not limited to; scheduling, servicing, publicizing training and educational events, networking events, and other events related to business development, business education, or business-to-business promotion in Macomb County; and collecting fees relating to such activities. All accommodations required by entities renting the space for the aforementioned events will be managed by the City’s Building Coordinator; general lobby areas or main points of entry will be staffed by the City’s Building Coordinator through interns, part-time staff, or full-time staff, to answer phones, greet visitors, view event calendars for additional event scheduling etc, in cooperation with the University. 3. Budgeting. The Authority will annually commit “Tax Increment Revenue” (made up of state and local school capture) for the operation of programs by University for the Macomb-OU Incubator. The Authority shall commit no less than $350,000.00 to support the programs and cost of services to be provided by the University as identified in this Agreement (collectively “University Services”) for the 2018-19 fiscal year, retroactive to July 1, 2018. Thereafter, the Parties’ representatives shall meet annually and confer with respect to the anticipated amount of Tax Increment Revenue expected to become available to fund University Services to develop the next fiscal year’s annual “Proposed Budget.” University shall provide the Authority with a list of University Services to be performed within a Proposed Budget for the next fiscal year. The Proposed Budget shall include the amount requested from the Authority for the University Services, as well as a statement that the Proposed Budget, if approved, will provide sufficient funds for the University to deliver the University Services identified as part of the Proposed Budget. The Proposed Budget shall be subject to approval by both the Authority and City Council of the City (“City Counsel”). Said Proposed Budget shall be submitted annually by the University for consideration by the Authority and City Council by November 1 of each year. If the funding is reduced in the following fiscal year, then the Authority and the University will confer to prioritize and reduce or cease any ongoing University Services to best serve the needs of the Macomb-OU Incubator. In no event will the University be obligated to perform or subsidize any of the University Services, for the Authority, the City, or the Macomb-OU Incubator, that are not fully budgeted for by the Authority. In addition, the Authority and/or the City may also designate special funding restricted to special projects. MISCELLANEOUS 4  1. Entire Agreement; Affiliated Party Agreement. This Agreement sets forth the entire agreement between the Parties and replaces and supersedes all prior agreements or understandings between the Parties regarding the subject matter herein, and specifically replaces and supersedes the June 2, 2009 Affiliated Party Agreement in its entirety. 2. Severability of Provisions. If any provision of this Agreement, or its application to any Party or circumstance, is invalid or unenforceable, the remainder of this Agreement and the application of that provision to other Parties or circumstances is not affected but will be enforced to the extent permitted by law. 3. Governing Law. This Agreement is made and entered into in the State of Michigan and shall in all respects be interpreted, enforced and governed under the laws of the State of Michigan. 4. Captions. The captions, headings, and titles in this Agreement are intended for the convenience of the reader and not intended to have any substantive meaning or to be interpreted as part of this Agreement. 5. Jurisdiction and Venue. Any disputes between the Parties over the meaning, interpretation, or implementation of the terms, covenants or conditions of this Agreement that cannot be resolved by informal discussions between the Parties conducted in good faith, may be submitted to the appropriate courts of the State of Michigan. 6. Amendment. This Agreement may be amended or an alternative form of the Agreement adopted only upon written agreement of the Parties. 7. Independent Contractors. The Parties agree that at all times and for all purposes under the terms of this Agreement each Party’s relationship to any other Party is that of an independent contractor. Each Party will be solely responsible for the acts of its own employees, agents, and servants. No liability, right, or benefit arising out of any employer/employee relationship, either express or implied, shall arise or accrue to any Party as a result of this Agreement. 8. Counterpart Signatures. This Agreement may be signed in counterparts. The counterparts taken together shall constitute a single instrument and agreement. 9. No Waiver. No waiver by any Party of any breach of obligations, agreements or covenants herein will be a waiver of any subsequent breach of any obligation, agreement or covenant, nor will any forbearance by any Party to seek a remedy for any breach by another Party to this Agreement be a waiver of any rights or remedies with respect to such or any subsequent breach, nor will any express waiver by any Party be deemed to apply to any other existing or subsequent right to remedy any default by another Party to this Agreement. No waiver by a Party of any default or breach by another Party to this Agreement in the performance of any of the covenants or obligations under this Agreement can be deemed to have been made by a Party unless contained in a writing executed by an authorized representative of the waiving Party. No Party waives any immunity, governmental or otherwise, provided by law. 10. Termination. This Agreement will terminate by the first to occur of the following: 5  (a) An action, other than one caused by an event of default, by any of the following means that voids, suspends, terminates or revokes the approval by MEDC of the Authority District as the area in which the Authority may establish a SmartZone or the authorization for the Authority to capture and use Tax Increment Revenues to support the University services; (b) Court order; (c) Any ruling, bulletin, order, administrative or executive decision of the State of Michigan , State of Michigan Tax Commission, any State of Michigan official, or State of Michigan commission, authority, body or employee with authority to make such determination or take such action; (d) State or federal legislative action; (e) The involuntary dissolution or liquidation of the Authority; (f) The voluntary termination of the Sterling Heights SmartZone Agreement by the MEDC and the local representatives; (g) The voluntary termination of this Agreement by the Authority or the University, which shall be effective sixty (60) calendar days after delivery of written notice by either Party to the other Party. After the termination is effective, the Authority shall make a final settlement of all outstanding financial obligations, if any, owed to the within sixty (60) calendar days of the effective date of the termination. Any and all monetary and in-kind support in any form whatsoever, given directly to one Party in support of its obligations under this Agreement, shall remain the property of said that Party. The Parties have executed this Agreement by their duly authorized representatives as of the Amended and Restated Affiliated Party Agreement Date. [Signatures on following page] CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY 6  By: ________________________________ Its: Chairperson and By: ________________________________ Its: Secretary Date: ____________, 2018 OAKLAND UNIVERSITY By: ________________________________ Its: President Date: ____________, 2018 7  APPENDIX A: Expanded Services A. EXPANDED COMMUNITY SERVICE AND ENGAGEMENT Expanded Offering #1 - MCRN including SCIP and SCIA MCRN is a statewide university network designed to create partnerships that will connect Michigan’s corporations to critical university assets to help promote innovative research and grow Michigan’s economy. Until 2017, only a few select Michigan Universities were able to access this program (i.e. research universities - University of Michigan, Michigan State, Wayne State, Michigan Tech). Now, Oakland University within its rapidly expanding Research Office has a designated MCRN Business Engagement Office. Two major components of the MCRN are the Small Company Innovation Program (SCIP) and the Small Company Internship Award (SCIA). As referenced in the Project Management Plan, the SCIP and SCIA programs are described as follows: The SCIP program is intended to help companies overcome a common challenge faced by small companies and entrepreneurs – getting research and development needs met so they can get to commercialization faster. Often, universities have the expertise and facilities that the company needs, but small companies may not have the connections nor are they able to afford the cost of conducting research and development at a university. The program aims to introduce companies to the benefits of working with a university to increase the number of university/industry collaborations across the state, and to accelerate a company’s positive economic impact. The program provides a 1:1 match up to a total of $80,000 to support research costs. The SCIA program provides funding to help small businesses hire university students to work as interns on projects that are both beneficial to the company and academically relevant to the student. Especially targeted toward Michigan businesses in the science, technology, engineering and math (STEM) field, the SCIA program is designed to increase students’ exposure to innovative processes and products emerging from companies that employ high-skill workers, and to encourage student job placements with innovative and dynamic Michigan companies after graduation. These programs will be made available to business startups involved in the INCubator. Expanded Offering #2 – OU Mobilization Zone including I2B, OBEC and Corporate R&D Accelerator In addition to outside sources for economic development assistance, internally the Research Office through the Macomb-OU Incubator plans to provide access to the newly created Mobilization Zone (MZ). The Mobilization Zone focuses on mobilizing university knowledge into the public domain for economic and community development. It integrates faculty, students, business engagement, OU’s incubators, and Southeast Michigan government organizations into a single, collaborative entity. The economic development arm of the MZ provides an innovative solution to increasing jobs and prosperity in the region. Specifically, MZ programs address educating the future workforce, creating an entrepreneurial culture, advancing innovation and company formation, and promoting the region’s resources, workforce, and businesses. The community development arm of the MZ hosts programs to support faculty, staff, and students by sharing their knowledge, skills, and expertise outside the university. In summary, the components of the MZ include: • Ideas to Business (I2B) – The I2B program provides startups with mentor-led student teams to address critical next steps toward commercialization. The City and the County can steer early stage entrepreneurs to the I2B as their first step toward building a business. In many cases, the second step will be becoming an incubator client. • OU Business Engagement Center (OBEC) – A front door for all corporate access to Oakland University’s faculty, students, and facilities. OBEC provides a single point of entry for companies seeking various kinds of assistance from the university, including help meeting workforce needs, continuing education for staff, and access to faculty for research. • Corporate R&D Accelerator – An opportunity for established companies to develop new inventions and/or IP outside of their typical environment using the combined resources of the university (faculty, staff, and students, as well as a large cadre of domain experts). The University commits to prioritizing its efforts in Sterling Heights/Macomb County and enhance the INCubator while working to: A. Increase company access to student internship and experiential learning activities, in part, through the MCRN-funded SCIA program B. Increase the number of companies and community agencies that involve students in their activities C. Increase the number of local company employees enrolled in credit courses and certificate programs at off–campus locations D. Increase the number of local company employees enrolled in continuing education non- credit courses offered by the University’s Professional and Continuing Education Program (PACE) E. Expand connections with alumni with experience and expertise in a range of domains available to assist entrepreneurs F. Increase the number of partnerships between local businesses and the MCRN programs and OU MZ programs G. Increase partnerships between city and county non-profit businesses with OU MZ programs To deploy the assets of Oakland University, the Macomb-OU Incubator in conjunction with the OU Research Office commits to working toward these goals aimed to better serve the City and County in the following manner: A. Increase the number of companies benefitting from student internship and experiential learning activities 1. Access MCRN’s Small Company Internship Awards (SCIA) and offering them to Sterling Height/Macomb companies a. Reach the MCRN-designated maximum each year 2. Connect local companies with the OU Career Services department and get them into the employment system, or engage them with one of the two job fairs a. Connect six local companies with OU Career Services over a 12- month period 3. Introduce city/county companies to the OU Senior Design Lab (SDL) to develop projects a. Engage at least two companies over a 12-month period B. Increase the number of local enterprises benefitting from students involved in community service and engagement activities 1. Engage the OU Office of Student Involvement and host student groups at the Velocity Center a. Host at least two events over a 12-month period 2. Cross-promote City/County events and work to bring volunteer students to help with events (i.e. Sterlingfest, Macomb Business Awards ) a. Connect the organizers of City/County events with OU Center for Student Activities and Leadership Development C. Increase the number of local company employees enrolled in credit courses at off– campus locations 1. Connect city and county staff to OU Macomb Outreach to discuss and address city/county identified workforce needs of local industry a. Orchestrate initial introductions and discuss expanding bachelor and master degree offerings to suit current community needs D. Increase the number of local company employees enrolled in non-credit courses offered by the University’s Professional and Continuing Education Program (PACE) 1. Offer more non-credit, professional-development courses at Velocity a. Host OU PACE’s Project Management Professionals training each academic year  b. Expand the cyber-security certificate offerings to at least 12 per year c. Explore offering other certificates related to identified needs (OU PACE offers courses in unmanned aerial vehicle, engineering productivity improvements, industrial automation systems) E. Expand connections with alumni 1. Open-up the Macomb-OU Incubator’s volunteers program to Oakland University alumni a. Expand the upon the 10 Expert in Residents (EIR) volunteers openings b. Pull in OU Alumni domain experts and experts in entrepreneurship from the OU Mentor Directory to work with companies F. Increase the number of partnerships with businesses and corporations 1. Access MCRN’s Small Company Innovation Program (SCIP) and offering them to Sterling Height/Macomb companies a. Connect at least two companies with SCIP opportunities each year 2. Utilize the OU Mobilization Zone (MZ) to support Sterling Height/Macomb companies: as previously mentioned, the MZ programs include I2B, OBEC, and Corporate R&D Accelerator a. Connect at least four companies with the MZ program over a 12- month period (one per quarter) G. Increase the number of community partnerships 1. Network and further connect with the Sterling Heights Regional Chamber and the Macomb County Chamber a. Explore hosting mutually-beneficial events 2. Utilize the newly created Oakland University COUNTS initiative [The program uses a web-based platform to connect community groups (non- profits, municipal government offices, and county government offices) who have needs for research, data collection, data analysis or evaluation services with faculty and students who possess the necessary knowledge and skills to provide those services.] a. Enroll 10 local non-profits or municipal agencies in Oakland COUNTS over a 12-month period B. TARGETED SERVICES FOCUSED ON HIGHEST IDENTIFED NEEDS A. Address Ways to “Best Assist” Sterling Heights/Macomb Pure Manufacturing Companies OU resources like: the Public Administration Research Lab (PARL), the School of Engineering and Computer Science’s - Center for Robotics and Advanced Automation (SECS CRAA), or other relevant OU research centers and institutes to:  1. Use surveys, focus groups, interviews, or other appropriate methods assess the needs of local companies, by addressing questions like: • “In what areas do mature manufacturing enterprises need assistance?” • “In what areas do mature manufacturing enterprises need assistance with product-diversification?” • “In what areas do mature manufacturing enterprises need assistance with technology upgrades or innovation?” • “In what areas do mature manufacturing enterprises need assistance with workforce?” 2. Evaluate the historic make-up of the local industry, hypothesize and forecast their future three, five, and seven years out a. Utilizing faculty expertise, provide insight in the final form of an estimated 50-pages report of research finding b. With the University identified subject matter expert, hold two stakeholder group assessment events at Velocity c. Conduct presentation of research findings by the faculty expert at two board meetings of the City/County’s choice (i.e. a special committee, Local Development Finance Authority board meeting, City Council Meeting, County Commissioner meeting) B. Address Ways to Assist with Internal Research and Development and Other Internal Corporate Innovations and Spinouts through providing accelerator or related services 1. On an ongoing basis, and associated to the existence of the SmartZone, utilize University resources (i.e. access to the SmartZone MCRN program, on-staff Product Development Management Association certified professional, the MZ’s individual components, and the OU RO’s professional volunteer network) to address identified needs of local small, mid-sized, and large companies related to their internal R&D, innovation, commercialization, and spin-outs by: a. Meet directly with local industry leads as referred by the City/County b. Discuss with the companies their current and future product/process innovations and commercial initiatives c. Connect these opportunities to University available resources (experts/labs/students/tools) d. Admit and assist their “skunkworks” activities and/or innovation development teams, projects, or programs into the Velocity facility e. Over 12-months, work with three-to-five local companies to help “mine” internal technology and developments while assisting with bringing the developments external and creating new enterprises C. TARGETED SERVICES FOCUSED ON CITY/COUNTY’S OTHER IDENTIFED NEEDS A. Need Area #5 – Advancing Robotics through a Collaboration Center Goal: In conjunction with the identified needs of the Sterling Heights/Macomb County Robotics Cluster Report (at the moment – expressed goals are undetermined), connect Oakland University  assets and faculty working in the fields of science that comprise robotics (components and systems) 1. Fill the expressed void of needing a university partner by becoming that partner a. Initiate conversations to directly link the desired report identified activities to Dr. KaC Cheok’s Intelligent Ground Vehicle Laboratory and expertise b. Link the partners to the Center for Robotics and Advanced Automation for further assistance in the development activities of the initiative c. Engage in discussion with the OU Intelligent Group Vehicle Competition (IGVC) administrators and sponsors to construct a plan that connects the event with the City/County B. Cyber Security for Manufacturers Goal: Increase cyber-security related awareness among local companies who support original equipment manufacturers (OEM) automotive, federal government supply-chain contractors, defense-industry suppliers and others Goal: Assist local companies with getting ahead of mandated, cyber-security requirements related to the OEMs (own requirements), or the National Institute of Standards and Technology (NIST) Special Publication 800-171: “Compliance with handling non-classified information” 1. Leverage faculty expertise from the University’s Center of Academic Excellence in Cyber Defense group, and the OU Center for Cyber Security 2. Connect the Macomb-OU Inc’s network of cyber-security companies to local companies that need assistance with compliance 3. Utilize the Velocity Hub of the Michigan Cyber Range to conduct security audits and network-penetration tests of local companies 4. Assist with cyber-security workforce training needs by exploring early-integration programs targeted towards local high schools 5. Target cyber-security certificate training credentials to local established companies who have internal, information-technology departments a. Respond to and meet with a least six local company inquiries, over a 12-month period b. Host an event every 12 months at Velocity that covers cyber-security related mandates c. Onsite or remotely provide cyber-security testing to at least two local companies over a 12-month period d. Approach at least two local school districts to explore partnering on a cyber-security program D. CURRENT REQUIRED MEDC METRICS AND REPORTING REQUIIREMENTS REMAIN UNCHANGED The Macomb-OU Incubator continues to be required to be follow State of Michigan/MEDC and the enabling SmartZones legislation (at the moment, Public Act 248 of 2000); or, at least, until the SmartZone tools are no longer accessed by the Macomb-OU Incubator. This established SmartZone is set to sunset in years 2022-2023. However, since these MEDC SmartZone programs use taxes provided by the City and County, we would be wise to “be in the game” fighting for our share of program utilization. Furthermore, the current grant provided by the MEDC to Oakland University for the Macomb-OU Incubator (referred to as the “Gatekeeper” grant) requires that every six months the incubator provides a report containing: A. The total actual hours and estimated value of in-kind engagement activities with clients provided by the expert-in-residence volunteers and broken-out by industry B. The total number of client referrals to, and the names of the State-sponsored program for which clients we referred C. The total number of companies created (over the past six months) D. The total number of companies service (over the past six months) E. The total number of high-tech jobs created, retained and 1099 contractor (over the past six months) F. The total number of events hosted by the incubator (over the past six months) G. The total number of tech companies served identified by industry (consisting of advanced manufacturing, aerospace, agriculture, alternative energy, automotive, bioscience, defense, and homeland security, information technology, life sciences, medical devices, other and traditional - over the past six months) H. The total number of dollars in capital received by companies served by the incubator (over the past six months) I. The total dollar amount of MEDC funds awarded to companies (over the past six months) J. The total dollar amount of SBIR/STTR and other federal funding awarded to companies (over the past six months) K. The total dollar amount of venture capital funds awarded to companies (over the past six months) L. The total dollar amount of angel funds awarded to companies (over the past six months). M. The total dollar amount of bank/loan funds awarded to companies (over the past six months) N. The total dollar amount of new sales revenues increased by the companies (over the past six months) O. The total number of patents applied for by companies (over the past six months) In an effort to keep the partners updated and apprised of outputs leading to outcomes, THE University agrees to provide a copy of the MEDC Semi-Annual Report to the City one-to-two weeks following the MEDC established filing date (typically in March/April and October/November of each year).  APPENDIX B: Forecasting Annual Activity-Based Metrics I. Annual Targeted Metrics A. Fielded Inquiries = 42 annually (3.5 per month) Outside Macomb = 21 Macomb = 21 B. Site Visits Outside Macomb = 0 Macomb = 18 C. Referrals for University Engagements Outside Macomb = 0 Macomb = 12 1. Research and Development Accelerator Program 2. Technology Commercialization Assistance via the Michigan Corporate Relations Network (including) a. Small Company Innovation Program b. Small Company Internship Assistance c. University Expert’s Database Portal 3. Direct to faculty for exploratory subject-matter expertise discussion 4. Discussion with for workforce assistance, recruiting or internships 5. Professional development opportunities (non-credit) 6. Ideas to Business Program (OU Business student projects) D. Clients Served (Need to move closer to 50%/50%) Outside Macomb = 10 Macomb = 10 E. Entrepreneurial Outreach Efforts (6-10 events) List and describe the Macomb related events held and attended List and describe Macomb meetings (businesses, industry, associations, etc.)  Provide copies of marketing material promoted to Macomb organizations II. Michigan Economic Development Corporation Metrics A. Provide a copy of the State’s required report regarding their identified measures (may change from time to time) at the moment including measures like: 1. Square Footage of Public Infrastructure 2. Other MEDC High-Tech Assistance 3. Actual Private Investment 4. Other Investment 5. Actual Jobs Created 6. Actual Jobs Retained 7. Indirect Jobs 8. New Sales 9. Companies Created 10. Patents Applied For 11. Patents Issued III. Reporting Timeline A. Provide (paper report) of Annual Targeted Metrics to the City of Sterling Heights and/or Macomb County = every six months B. Present results and featured local companies to the Sterling Heights Local Development Finance Authority = every quarter  APPENDIX C: A Study of Entrepreneurship in Sterling Heights I. Proposed Scope for an Entrepreneurship Study A. Research and define the profile of an entrepreneur in Sterling Heights (SH) 1. Assess past and current entrepreneurs 2. Explore the future (millennial) entrepreneur and determine if the environment this group desires is a fit for, or can be constructed in Sterling Heights 3. Discover and convey the entrepreneurial barriers for Sterling Heights B. Identify the typical, modern-day entrepreneur and compare/contrast with those found in Sterling Heights C. Approximate and discuss the mix of entrepreneurs that are involved in high-tech activities and ventures D. Explore manners and techniques for which an entrepreneur in Sterling Heights could best be supported E. Explore partnerships with organization that would enhance entrepreneurial offerings F. Entrepreneurial Outreach Effort (1 event) 1. Conduct an event that surveys entrepreneurship from the community 2. Provide summary of findings 3. Provide copies of promotional materials G. Make recommendations that identify activities that would increase the level and quality of entrepreneurship in Sterling Heights II. Timeline for Delivery and Project Cost A. The above referenced activities need to be carried-out over a 12-month period B. Total project cost: $35,000  LDFA Business Sterling Heights, Michigan 11/15/18 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between Utica Community Schools and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a Month-to-Month Lease Agreement between Utica Community Schools and the Local Development Finance Authority (LDFA) for space #2-C consisting of approximately 593 square feet at a rate of $0.00/month. The space will house the equipment of the Robotics Team for Bemis and Shelby Junior High Schools in order to prepare for competition. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Agreement between Utica Community Schools and the Local Development Finance Authority (LDFA).  DATE (MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 10/22/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Arthur J. Gallagher Risk Management Services, Inc. PHONE FAX 300 Ottawa N.W. Suite 301 (A/C, No, Ext): 616-233-0910 (A/C, No): 616-233-0923 E-MAIL Grand Rapids MI 49503-2308 ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : MAISL Joint Risk Management Trust INSURED INSURER B : Great American Insurance Company 16691 MAISL Joint Risk Management Trust Utica Community Schools INSURER C : 11303 Greendale INSURER D : Sterling Heights MI 48312 INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: 1539418047 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS A X COMMERCIAL GENERAL LIABILITY Insurer A & B 7/1/2018 7/1/2019 EACH OCCURRENCE $ 1,000,000 B 3128240-PKG 7/1/2018 7/1/2019 DAMAGE TO RENTED CLAIMS-MADE X OCCUR PREMISES (Ea occurrence) $ MED EXP (Any one person) $ PERSONAL & ADV INJURY $ Included GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ /A X POLICY PRO- JECT LOC PRODUCTS - COMP/OP AGG $ OTHER: Agg Applies per $ Member A AUTOMOBILE LIABILITY Insurer A & B 7/1/2018 7/1/2019 COMBINED SINGLE LIMIT $ 1,000,000 B 3128240-PKG 7/1/2018 7/1/2019 (Ea accident) X ANY AUTO BODILY INJURY (Per person) $ OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) $ A UMBRELLA LIAB X OCCUR Insurer A & B 7/1/2018 7/1/2019 EACH OCCURRENCE $ 5,000,000 B 3128240-PKG 7/1/2018 7/1/2019 EXCESS LIAB CLAIMS-MADE AGGREGATE $ 5,000,000 DED RETENTION $ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS' LIABILITY STATUTE ER Y/N ANYPROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ A AUTOMOBILE LIABILITY Insurer A & B 7/1/2018 7/1/2019 Maintenance Ded 2,500 B 3128240-PKG 7/1/2018 7/1/2019 Auto Phys Damage Included DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) MAISL Joint Risk Management Trust is a qualified and approved self-insurance fund under the laws of the State of Michigan. SIR $500,000 RE: Utica Community Schools is using Velocity for Shelby Junior High School's Robotics Competitions held throughout the current school year. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Velocity 6633 18 Mile Road AUTHORIZED REPRESENTATIVE Sterling Heights MI 49314 © 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD