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 15, 2019 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF December 18, 2018 Regular Meeting NEW BUSINESS 1. To approve the Lease Renewal Agreement between Defense Center Executive Group, LLC 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, Inc. and the Local Development Finance Authority (LDFA). 4. To approve the 2019/2020 Budget Proposal for the LDFA. OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE REGULAR MEETING December 18, 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 7:58 a.m. Pledge of Allegiance Members present at roll call: Ellanore Evans, Phil Hunsberger, Laurel Johnson, John Lettang, Steve Pomaville, Jim Ruma, Camille Silda, Jill Tomyn, Corey Venetis Members absent: David Corba, Stephanie Eagen, Robert Ljucovic, Fred Molnar, 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, Larry Herriman, Executive Director – Macomb OU Incubator; Hannah Tadros, Risk Management Coordinator – City of Sterling Heights; Chelsea O’Malley – Ibex Insurance Agency; Stephen Couchman, President - STEAMBOX Motion to Approve the Agenda Moved by Lettang, supported by Ruma, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of November 15, 2018 Special Meeting Moved by Silda, supported by Evans, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve the renewal insurance premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA). Ms. Quell stated that the MMRA insurance policy is a renewal with a premium of $15,181. The LDFA will recover $2512 back in Net Asset Distributions and Loss Fund Distributions, for a net cost of $12,669.00. Ms. O’Malley said that due to property changes, every year the trends with inflation are a 3% increase due to construction material increases. Ms. Quell stated that this covereage is for the building and each tenant has their own insurance for contents of their individual spaces. Moved by Silda, supported by Pomaville 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 Agreement between STEAMBOX and the Local Development Finance Authority (LDFA). Mr. Couchman stated that he has two companies. The first is Live Picture which provides presentation to trade shows. These displays can be up to eight panels and have the capability of being reconfigured, interactive and can be controlled by a joy stick. The second company, STEAMBOX, is future workforce development, offering courses in 3D virtual and augmented reality, artificial intelligence and cyber security auditing. More than one course may be attended giving the option of stackable certificates. The offerings are to junior high, high school and veterans. STEAMBOX is partnering with companies to offset the costs of the courses. Mr. Couchman has applied to the Department of Labor for certification to receive accreditation. Moved by Pomaville, supported by Johnson to approve the Lease Agreement between STEAMBOX and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. Old Business Ms. Quell presented the LDFA Board the Budget Amendment Summary for the 2018/19 fiscal year. Mr. Herriman distributed the 2018/19 Entrpreneurship and Innovation Report 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 8:27 am. Kq  LDFA Business Sterling Heights, Michigan 1/15/19 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Renewal Agreement between Defense Center Executive Group, LLC and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a January 1, 2019 thru December 31, 2019 Lease Renewal Agreement between Defense Center Executive Group, LLC and the Local Development Finance Authority (LDFA) for spaces #1-A, #1-B and #1-G consisting of approximately 77, 77, 560 square feet at a rate of $679.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Renewal Agreement between Defense Center Executive Group, LLC and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 1/15/19 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, 2019 thru January 31, 2020 Lease Renewal Agreement between Jetco Solutions and the Local Development Finance Authority (LDFA) for spaces #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 1/15/19 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Renewal Agreement between Microcide, Inc. and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a February 1, 2019 thru January 31, 2020 Lease Renewal Agreement between Microcide, Inc. and the Local Development Finance Authority (LDFA) for spaces #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, Inc. and the Local Development Finance Authority (LDFA).