Local Development Finance Authority

CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Approved MINUTES OF THE SPECIAL MEETING September 5, 2019 – 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 8:02 a.m. Pledge of Allegiance Members present at roll call: David Corba, Stephanie Eagen, Ellanore Evans, Phil Hunsberger, Robert Ljucovic, Steve Pomaville, Jim Ruma, Camille Silda, Jill Tomyn, Corey Venetis Members absent: Laurel Johnson, John Lettang, Fred Molnar, Orest Zachary Also in attendance: Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights; Mike Viazanko, Building Official – City of Sterling Heights; Larry Herriman, Executive Director – Macomb OU Incubator, Vicky Rad, Director – Macomb County Planning and Economic Development; George Hartmann – George J. Hartmann Architects, PC; Melissa Jimison, Senior Consultant – Public Sector Consultants; Kim Rustem, Senior Consultant – Public Sector Consultants Motion to Approve the Agenda Moved by Evans, supported by Silda, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of May 21, 2019 Regular Meeting Moved by Pomaville, supported by Venetis, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve an extension of the Proposal from Issue Media Group for media/marketing services for a one-year period under the same terms and conditions at a cost of $50,000. Mr. Bonner stated that Issue Media Group has created many stories highlighting the business innovation of Sterling Heights. Mr. Hunsberger inquired if there was any measure of their effectiveness. Mr. Bonner stated that the articles have a total reach exceeding 400,000. He also stated that the second year will be focusing on quality of life – residents, parks, services offered by the City and their impact on the residents. Additionally, the stories from last year will be utilized to reuse the content and feature 75% of business within the SmartZone. Funding of the remaining balance of $27,900 was approved by City Council on 7/2/19. It is the same funding cost sharing as year one. Moved by Silda, supported by Venetis to approve an extension of the Proposal from Issue Media Group for media/marketing services for a one-year period under the same terms and conditions at a cost of $50,000. Ayes: All Nays: None Motion carried. To approve the proposal between the City of Sterling Heights Local Development Finance Authority and Johnson Sign Company (JSC) in the amount of $214,400 for signage at Center Drive and Sterling Ponds. Mr. Castor stated that the City was continuing to brand the district through streetscape and signage, giving a cohesive look to the streets and businesses. Last year four locations were funded: Velocity entrance, Sterling Enterprise Park, and the two iconic signs on 18 ½ Mile Road at Mound and at the Roundabout. In last year’s LDFA budget, funding of $400,000 was designated for signage at Center Drive and Sterling Ponds. The City went through a bid process requesting work for two components – the sign and the site work. Only one bid was submitted. Mr. Castor is requesting the LDFA Board approve only the sign portion of the work in the amount of $214,400. At the next LDFA meeting, a formal rejection of the site work portion will be requested. Bidding for the site work at both locations will occur in the spring of 2020. Moved by Evans, supported by Venetis to approve the proposal between the City of Sterling Heights Local Development Finance Authority and Johnson Sign Company (JSC) in the amount of $214,400 for signage at Center Drive and Sterling Ponds. Ayes: All Nays: None Motion carried. To approve funding of project consulting services from Public Sector Consultants in the amount of $30,000 for the Macomb Robotics Collaboration and Innovation Center. Ms. Rad stated that the Macomb Robotics Collaboration and Innovation Center is requesting funding to contract Public Sector Consultants to create a strategic plan of fund raising and overall project management. The contract is in the amount of $60,000 and will be split between the LDFA and Macomb County. The LDFA $30,000 will be concentrated on fundraising and project management. Ms. Jimison stated that PSC would identify key relationships going after larger dollar commitments. Additionally, PSC would manage the fundraising and articulate the donation document. $750,000 is the three year goal. The contract is for six months and PSC would report to the Board of the Macomb Robotics Collaboration and Innovation Center. This is a major economic initiative. The Center is set up as a non-profit so it is important to have a third party. Mr. Bonner stated that Miller Canfield has verified that the $30,000 is an eligible expense for the LDFA, in line with LDFA statute to support business. Moved by Pomaville, supported by Venetis to approve funding of project consulting services from Public Sector Consultants in the amount of $30,000 for the Macomb Robotics Collaboration and Innovation Center. Ayes: All Nays: None Motion carried. To approve funding Not to Exceed $400,000 for the Co-Working Space located at Velocity. Mr. Hartmann, President of George J. Hartman Architects, P.C., presented the refined design layout based off the conceptual drawings of the proposed Co-Working Space for Velocity presented at the LDFA meeting of May 21, 2019. Additionally, Mr. Hartmann presented a project cost estimate. Mr. Bonner stated there is funding in the LDFA for this project and that the new businesses coming to Sterling Enterprise Park will generate a higher tax capture in future years. Additionally, a revenue source will be created from the tenants leasing the Co- Working space. The target tenants are tech-oriented and will have opportunity to program with Oakland University. The City will also host Lunch & Learns for collaboration with the tenants. Ms. Quell has prepared a business plan for the Co-Working space. The components of the project will be bid through the City’s purchasing department. Mr. Viazanko, Building Official for the City, will review proposals and work closely with Ms. Quell and Mr. Hartmann to monitor the project. Mr. Bonner stated that Ms. Quell will be the Project Manager. Mr. Bonner stated that it is requested to approve funding Not to Exceed $400,000 for the Co-Working space. Moved by Silda, supported by Pomaville to approve funding Not to Exceed $400,000 for the Co- Working Space located at Velocity. Ayes: All Nays: None Motion carried. Old Business Board Members Report Public Comment None Adjournment Moved by Ruma, supported by Venetis to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:12 am. Minutes Approved 9/18/2019 Kq John Lettang Secretary