Local Development Finance Authority

CITY OF STERLING HEIGHTS Special Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 6633 18 Mile Road, Sterling Heights 586-884-9322 VELOCITY BUILDING September 18, 2019 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES OF September 5, 2019 Regular Meeting NEW BUSINESS 1. To reject the bid from J. Ranck Electric for the site work of the LDFA/SmartZone District signs located at Center Drive and Sterling Ponds. 2. LDFA Update – Oakland University. OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft 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. Kq  City Clerk's Use Business of the LDFA Item No: Sterling Heights, Michigan Meeting: 09/18/19 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To award a construction contract to Johnson Sign Co. for the installation of LDFA/Smartzone District signs and Reject bid from J. Ranck Electric submitted for site work Submitted By: City Development Department Contact Person/Telephone: Jason Castor, City Development Director (586) 446-2386 Executive Summary: On December 3, 2015 the Local Development Finance Authority (LDFA) awarded a contract to Hubbell, Roth & Clark engineering consultants to complete an Improvement Plan for the LDFA/SMARTZONE district. The Improvement Plan recommends a number of improvements for the LDFA District. The initial projects complete physical improvements that better identify and brand the LDFA District. There was broad support from all interested parties to enhance the LDFA District through the installation of branding elements, including new monument signage, street signage, and streetscapes. The first phase of improvements were awarded in 2017. These improvements included monument signs and wayfinding signs installed at Sterling Enterprise Park near 17 Mile Road and Van Dyke, at the Velocity Entrance at 18 Mile Road, and monument only signs installed at 18.5 Mile Road at Mound and Van Dyke. The next phase of this project is to complete intersection improvements at two more prominent intersections within the LDFA district. The signs would be located at Center Drive and Sterling Ponds Drive. These locations were highlighted within the Improvement Plan for signage. Traditionally all project improvements would be bid out per the City’s purchasing ordinance. However, maintaining conformity and quality with the existing signs was desired resulting in the work being split into two bid components, signs and site work. The City’s purchasing ordinance allows waiving of the bid requirement to maintain compatibility. In order to keep concurrence with the existing signs the City contacted Johnson Sign Co. who installed the LDFA Phase I signs for a proposal to install two more signs. Johnson Sign Co. has performed great work on the existing signs for the LDFA and City Entrance signs for City Hall. Therefore, we are recommending to award Johnson Sign Co., 2240 Lansing Ave. Jackson, MI 48202 for the two signs located at Sterling Ponds Drive and Center Drive in the amount of $214,400.00 In addition, the City Development Department prepared and invitation to bid (ITB) to complete the complementing site work at these locations. The site work would provide aesthetic improvements to the boulevard islands. Site work included landscaping treatments, irrigation, up lighting and a flag pole to complement the proposed signage. Bids were opened on Tuesday July 30, 2019. One bidder, J. Ranck Electric, Inc, 1993 Gover Parkway, MT Pleasant, MI 48858 provided a bid of $320,621.00. Due to the low response we are recommending rejecting this bid. The site work component of the project will be re-scoped and rebid early next year for a spring project. The rebid will complete remaining all work not completed this fall. Suggested Action: MOVED BY: SECONDED BY: 1 1. RESOLVED, to award a construction contract to Johnson Sign Co. for the installation of LDFA/Smartzone District signs in the amount of $214,000.00., and authorize the Local Development Finance Authority Chairperson to sign all required documents on behalf of the Board. 2. RESOLVED, to reject the bid from J. Ranck Electric. for the site work.  JSC PROPOSAL Proposal #: 15313 Proposal Date: 08/30/19 Customer #: 2898 Page: 1 of 3 SOLD TO: JOB LOCATION: CITY OF STERLING HEIGHTS STERLING INNOVATION DISTRICT ATTN: NEIGHBORHOOD SERVICES CENTER DRIVE ENTRANCE 40555 UTICA ROAD STERLING PONDS ENTRANCE STERLING HEIGHTS MI 48313 STERLING HEIGHTS MI 48313 REQUESTED BY: Jason Caster Johnson Sign Company (HEREINAFTER CALLED THE "COMPANY") HEREBY PROPOSES TO FURNISH ALL THE MATERIALS AND PERFORM ALL THE LABOR NECESSARY FOR THE COMPLETION OF: QTY DESCRIPTION UNIT PRICE TOTAL PRICE 1 QUOTE #5810 $214,400.00 $214,400.00 Fabricate and Install (2) 66" x 328" Tenant Signs with 144" x 36" Icons similar to sign we did on Mitchell Dr. Frame = Aluminum tube Outer Skin & Faces = .125" Aluminum sheet Copy = 3/8" thick Anodized Aluminum letters Icon Top = EPS Foam with hard coating painted with clear reflective top coat and flood illuminated with LES. Installation = On Steel tubing directly buried in concrete foundation. Price for (2) signs @ $46,600 = $93,200 Price for Installation @ $6,300 = $12,600 Permits @ $300 = $600 LDFA Improvements - Phase II Electrical = $108,000 TOTAL = $214,400 Above quoted prices do not include sales tax or electric service to Icon of lighting of tenant sign. ALL MATERIAL IS GUARANTEED TO BE AS SPECIFIED, AND THE ABOVE TO BE IN ACCORDANCE WITH THE DRAWINGS AND OR SPECIFICATIONS SUBMITTED FOR THE ABOVE WORK AND COMPLETED IN A WORKMANLIKE MANNER FOR THE SUM OF: TOTAL PROPOSAL AMOUNT: $214,400.00 TERMS: 50.0% DOWN, BALANCE DUE ON COMPLETION (INTEREST OF 1.5% PER MONTH WILL BE ADDED TO PAST DUE ACCOUNTS) THIS PRICE DOES NOT INCLUDE ELECTRICAL RAN TO SIGN LOCATION, PERMITS OR TAX UNLESS SPECIFICALLY STATED. NOTE: THIS PROPOSAL MAY BE WITHDRAWN IF NOT ACCEPTED WITHIN 30 DAYS. WORK WILL NOT BEGIN UNTIL DOWN PAYMENT AND WRITTEN ACCEPTANCE IS RECEIVED. COMPANY INITIALS _______ CUSTOMER INITIALS _______  JSC PROPOSAL Proposal #: 15313 Proposal Date: 08/30/19 Customer #: 2898 Page: 2 of 3 ANY ALTERATION FROM THE ABOVE SPECIFICATIONS INVOLVING EXTRA COSTS, WILL BE EXECUTED ONLY UPON WRITTEN ORDERS, AND WILL BECOME AN EXTRA CHARGE OVER AND ABOVE THE ESTIMATE TO BE PAID BY THE PURCHASER. TERMS AND CONDITIONS JOHNSON SIGN CO. 1. UPON DEFAULT IN THE PAYMENT OF ANY SUMS HEREIN AGREED, Johnson Sign Company MAY, AT ITS OPTION, DECLARE THE ENTIRE BALANCE PRICE FULLY DUE AND PAYABLE WITHOUT FURTHER NOTICE TO CUSTOMER; AND WHEN DECLARED, CUSTOMER AGREES TO PAY INTEREST ON SAID BALANCE, WHEN DECLARED DUE AT THE RATE OF 1.5% PER MONTH. CUSTOMER FURTHER AGREES TO PAY ALL REASONABLE COSTS OF COLLECTION OF SAID BALANCE INCURRED BY THE COMPANY, INCLUDING ATTORNEY’S FEES. 2. BOTH PARTIES HERETO AGREE THAT THE TITLE TO SAID ELECTRICAL SIGN SHALL REMAIN IN THE COMPANY UNTIL PAID FOR IN FULL, BUT AFTER DELIVERY TO THE CUSTOMER ALL DAMAGE FROM FIRE OR OTHER CAUSES AFTER SAID DELIVERY SHALL BE ASSUMED BY SAID CUSTOMER AND WILL NOT AFFECT THE RIGHTS OF THE COMPANY TO ENFORCE OF THE PURCHASE PRICE THEN UNPAID. 3. IT IS FURTHER AGREED BY BOTH PARTIES THAT ALL PROVISIONS IN REGARD TO THE PROJECT ARE CONTAINED IN WRITING HEREIN. 4. ALL TERMS AND CONDITIONS OF THIS CONTRACT SHALL BE BINDING UPON ANY SUCCESSORS, ASSIGNEES OR OTHER LEGAL REPRESENTATIVES OF THE RESPECTIVE PARTIES BUT NO ASSIGNMENT SHALL BE MADE BY THE CUSTOMER WITHOUT THE CONSENT IN WRITING OF THE COMPANY UNLESS FULL PAYMENT OF THE TOTAL CONSIDERATION HAS BEEN MADE. 5. Johnson Sign Company SHALL SECURE ALL NECESSARY PERMITS FROM THE BUILDING OWNER, AND/OR OTHERS WHOSE PERMISSION IS REQUIRED FOR THE INSTALLATION OF THE SIGN AND SAID SHALL BE LIABLE FOR ANY OBSTRUCTION OF DELIVERY DUE TO DELAY IN OBTAINING SUCH PERMISSION. FURTHERMORE, IF CUSTOMER EXECUTES THIS CONTRACT OF SALES WITHOUT EVER OBTAINING PERMISSION FROM PARTY OR PARTIES NECESSARY FOR THE INSTALLATION OF SAID SIGN, THEN CUSTOMER PURCHASES SAME AND IS BOUND TO THE TERMS AND CONDITIONS OF THIS CONTRACT AS THOUGH SAID PERMISSION WAS OBTAINED AND AGREES TO RELIEVE THE COMPANY FROM ANY LIABILITY FOR ITS FAILURE WITHIN 10 DAYS OF DELIVERY TO ERECT OR INSTALL SAID SIGN. 6. CUSTOMER AGREES TO PROVIDE ELECTIRCAL SERVICE FEED WIRE OF SUITABLE CAPACITY AND APPROVED MATERIAL TO LOCATION OF DISPLAY IN ADVANCE OF INSTALLATION, AND TO MAKE CONNECTION OF SAID ELECTRICAL FEED TO DISPLAY. 7. WHEN PIER DRILLING IS NECESSARY, THE COMPANY WILL CONTACT APPROPRIATE AGENCY TO LOCATE PUBLIC UTILITIES. LOCATION OF PRIVATE UTILITIES IS SOLE RESPONSIBILITY OF THE CUSTOMER. IN THE EVENT ROCK IS ENCOUNTERED IN THE DRILLING PROCESS, TO THE POINT WHERE SPECIAL EQUIPMENT IS REQUIRED, ADDITIONAL MONIES MAY BE REQUESTED IN WRITING BY THE COMPANY. 8. ALL PRODUCTS MANUFACTURED BY THE COMPANY ARE GUARANTEED UNCONDITIONALLY AGAINST DEFECTIVE PARTS, MATERIALS AND WORKMANSHIP, WITH EXCEPTION OF INCANDESCENT AND FLUORESCENT LAMPS AS THEY ARE NEVER GUARANTEED, FOR A PERIOD OF ONE YEAR (1) YEAR. FOR THE NEXT THREE HUNDRED THIRTY (330) DAYS, AND MATERIAL, WITH THE EXCEPTION OF THE LAMPS, WILL BE REPLACED AT NO COST TO THE BUYER FOR THIS MATERIAL. THE COST OF LABOR, HOWEVER, WILL BE CHARGED AT HOURLY RATES. THIS PROPOSAL DOES NOT BECOME EFFECTIVE UNTIL SIGNED AND DATED BY THE COMPANY; ONCE SIGNED THIS PROPOSAL WILL EXPIRE AFTER 30 DAYS. THE ABOVE PRICES, SPECIFICATIONS, AND CONDITIONS ARE SATISFACTORY AND ARE HEREBY ACCEPTED. YOU ARE AUTHORIZED TO DO THE WORK AS SPECIFIED. PAYMENT WILL BE MADE AS OUTLINED ABOVE. SALESPERSON: ________________________________ DATE: ___________________ ACCEPTED BY: _________________________________ TITLE: ___________________ SIGNATURE: ___________________________________ DATE: ___________________ COMPANY INITIALS _______ CUSTOMER INITIALS _______  DEPOSIT INVOICE Invoice #: DP15313 Inv Date: 08/30/19 Customer #: 2898 Page: 3 of 3 SOLD TO: JOB LOCATION: CITY OF STERLING HEIGHTS STERLING INNOVATION DISTRICT ATTN: NEIGHBORHOOD SERVICES CENTER DRIVE ENTRANCE 40555 UTICA ROAD STERLING PONDS ENTRANCE STERLING HEIGHTS MI 48313 STERLING HEIGHTS MI 48313 REQUESTED BY: Jason Caster ORDERED BY PO NUMBER SALESPERSON ORDER DATE PAYMENT TERMS DUE DATE Jason Caster Jay Johnson 07/01/19 50.0% Due Upon Receipt 11/08/19 QTY DESCRIPTION UNIT PRICE TOTAL PRICE 1 QUOTE #5810 $214,400.00 $214,400.00 Fabricate and Install (2) 66" x 328" Tenant Signs with 144" x 36" Icons similar to sign we did on Mitchell Dr. Frame = Aluminum tube Outer Skin & Faces = .125" Aluminum sheet Copy = 3/8" thick Anodized Aluminum letters Icon Top = EPS Foam with hard coating painted with clear reflective top coat and flood illuminated with LES. Installation = On Steel tubing directly buried in concrete foundation. Price for (2) signs @ $46,600 = $93,200 Price for Installation @ $6,300 = $12,600 Permits @ $300 = $600 LDFA Improvements - Phase II Electrical = $108,000 TOTAL = $214,400 Above quoted prices do not include sales tax or electric service to Icon of lighting of tenant sign. -------------------- TOTAL PROPOSAL AMOUNT $214,400.00 *** FINAL INVOICE AMOUNT MAY VARY UPON COMPLETION *** PLEASE PAY THIS DEPOSIT AMOUNT: $107,200.00  Local Development Finance Authority (LDFA) Meeting Update City of Sterling Heights Oakland University David Stone, Oakland University Chief of Research Larry Herriman, Interim Executive Director Macomb-Oakland University Incubator Wednesday, September 18, 2019 8:00am  Overall Economic Velocity Hub Impact and Measures Cyber Range Activity • As reported semi-annually to the MEDC/SmartZones • Built new “cybersecurity certificate” offerings for in April and October each year Michigan Works! (Macomb-St. Clair) working with (Also, provided copies to the City): Beth Diehl, Program Director High-tech Jobs Created 280 • Held two informational sessions for Michigan Works! High-tech Jobs Retained 491 High-tech Companies Created 51 counselors (over 50 attendees) to help promote new International Companies Chartered 8 cybersecurity offerings on 7/25/19 (photo) Provisional and Pending Patents 135 Patents Awarded 39 • Subsequently, were asked to establish a program for Follow-on Funding via MEDC Funds $1,689,236 low-income high schools funding, and federal trade Follow-on Funding via Federal Funds $7,966,500 adjustment funding programs Follow-on Funding via Venture Capital $4,006,000 Follow-on Funding via Angel Funds $17,750,000 Follow-on Funding via Bank/Loans $6,639,284 • Registration and offerings are conducted through OU Follow-on Funding via Owner Investment $23,442,346 Professional and Continuing Education Follow-on Funding via New Sales $39,181,532 Follow-on Funding via Other $1,732,641 • Total Follow-on Funding (since inception): $102,407,539 2.  Velocity Hub Increased Activity with Cyber Range Activity Sterling Heights Companies • Convinced Medical Main Street to hold event at Velocity • Aligning to the Services Agreement between the City (6/26/19) “Cybersecurity Hacks in Healthcare” with the FBI and OU, Expanded Services relating to connecting local companies with Michigan Corporate Relations Network • Created and operating new, custom program for (MCRN) programs: Macomb County high-school cybersecurity instructors “Cybersecurity Essentials for Teachers” (Nine weeks, began 9/12/19, only • Connect two companies with Small Company Internship 10 spots, accepted 15 teachers) Awards (SCIA) - Systematic Manufacturing Inc (Sterling Heights) • Developed and held three semesters of “Applied - Mirari (Sterling Heights) Entrepreneurship in Cybersecurity” with OU Criminal Justice students • Submitted application for Small Company Innovation Program (SCIP) with Serapid (Sterling Heights) that • Created a career-transition program designed/targeted used OU faculty/students/labs while developing a new toward local veterans that also connects them with an innovation: Raising and lowering the floor of an Olympic-sized pool to internship (runs Jan. 2020 & May 2020) create new, useable event space • VA awarded Facility Code (#11806122) • Hosted AGS Automotive (Sterling Heights) at Oakland for Velocity Hub in March 2019 University Engineering School’s Research Expo • Velocity Hub now working with WarrenCon High Schools 3.  Increased Activity with Increased Activity with Sterling Heights Companies Sterling Heights Companies • TARDEC (CCDC GVSC) solicited technologies from Macomb-OU Incubator (March 2019), we connected • Sterling Heights Innovation Study, conducted KTISIS (Sterling Heights), now an SBIR award with OU student from Sterling Heights (Daiyaan Ijaz), now hired by Incubator; see more below • KTISIS now utilizing Dr. Latcha (OU Mechanical Engineering) for prototyping and production of 3-D • Approached by CCDC GVSC to serve as a printed components Defense Innovation Unit Experimental (DIUx) hub; Partnership Intermediated Agreement (PIA) • KTISIS pitching to Invest Detroit with OU underway (desires higher-ed link) • Brought Systematic Manufacturing Inc and • Finalizing terms of R&D Accelerator concept Rose-a-Lee Technologies (Sterling Heights) to OU between TOME/OU to be offered to Senior Design Lab to explore conducting projects and Sterling Heights companies that want to innovate recruiting students • Developing public/private matchmaking event for • NewBoxZ (OU MBA student and Sterling Heights Macomb COMTEC resident) won Third Place at Detroit FinTech Challenge • Incubator cybersecurity students performed preliminary IT security audit for Systematic Manufacturing Inc (SH) • 4.  Update: Sterling Heights Update: Sterling Heights Innovation Study Innovation Study • OU School of Business Administration, Dr. Kasaundra • Sample topics and questions: Tomlin; OU SBA Management Information Systems student, Daiyaan Ijaz; Macomb-OU Incubator, Larry • Primary and Secondary Industry (NAICS Codes) Herriman; Rick Venet, ROI Strategic Business Solutions • Firm’s earnings in annual in sales • How much firms spend on Research and Development annually • Compiled list of targeted Sterling Heights companies (37); devised script & initial questions • Inquired about the innovation process (types of innovation strategies) • Conducted (10) site visits and interviewed president, CEO, owners, or individual in charge of • Asked about firm’s diversification strategies R&D/innovation development (1.5-2 hours each) • Surveyed about patents and IP strategies • Developed online survey using Qualtrics (Customer • Pitfalls to Innovation, R&D challenges insight software), about 20 questions, 30 responses from 100 emailed surveys (warm leads-developed by • Services offered by the Macomb-OU Incubator or Rick Venet and follow-up by student) Oakland University students, faculty and laboratories • Additional Handout: Copy of Qualtrics Survey 5.  Update: Sterling Heights Update: Sterling Heights Innovation Study Innovation Study • Some initial findings: • Claim: Company ownership must be considered • Rationale: • “Foreign owned” or “private equity” is motivated by immediacy only • Found even some owners only interested in the “now“ • Some not worried about diversification • Claim: Companies are interested in innovating “if” it does not interfere with current operations (short-term thinking) • Rationale: • "It is not a PowerPoint, it must be a real thing“ • “Often innovation is conducted by a problem-solving approach” • Some will do innovation as a one-time/non-reoccurring engineering cost, on “paid” job order • Four Phases: Face-to-face interviews, • Some have the customer assist in innovation development develop/launch online survey, disseminate data, hold • Some conduct R&D through "prototypes and play“ • Most companies interviewed possess a desire for technical event employee training programs • Strong desire for R&D tax credits “other countries do these (even • Need to establish date for data release presentation Canada)” and/or town hall event 6.  2020 Plan 2020 Plan for Expanded Service for Expanded Service • OU commits to keep doing what it has been doing • Acquire some assistance with program marketing and (e.g. MCRN, SCIP, SCIA, early-stage tech) web presence for recruitment efforts to attract more local companies • Other activities we propose to conduct: • Allow for OU IT assistance beyond the interns • Integrating the Ideas 2 Business (I2B) program; including I2B Consultants Program and I2B • Help manage and expand use of OU alumni with Advanced Program domain, sector, and entrepreneurial expertise to work • Build and more quickly executing on the R&D with incubator clients Accelerator concept leveraging Macomb County • Requires one FTE or two PTs no benefits and MEDC provided opportunities (develop the target markets) • Future expectations for April 2020 • Follow-up on the Sterling Heights survey companies to incubator services • What’s happening day-to-day at the Macomb-OU • Devise the framework/skeleton of programs to Incubator? address SH company needs • Cybersecurity momentum - local high schools Instagram: @MacombOUInc want more, and Macomb ISD wants to include earlier integration (middle school instructors) 7.