Local Development Finance Authority
Regular MeetingSterling Heights, MI · February 11, 2020
Minutes
CITY OF STERLING HEIGHTS
LOCAL DEVELOPMENT FINANCE AUTHORITY
Approved
MINUTES OF THE SPECIAL MEETING
February 11, 2020 – 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 8:00 a.m.
Pledge of Allegiance
Members present at roll call: David Corba, Phil Hunsberger, Laurel Johnson, John Lettang, Steve
Pomaville, Camille Silda, Howard Sizemore, Jill Tomyn, Corey Venetis
Members absent: Stephanie Eagen, Robert Ljucovic, Fred Molnar, Jim Ruma
Also in attendance: 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; Hannah Tadros - City of Sterling Heights; Larry Herriman,
Executive Director – Macomb OU Incubator, Keith Potter – Ibex Insurance Agency; George
Hartmann – Hartmann Architects; Chad Johnson – FH Martin; Fred Reger – FH Martin
Motion to Approve the Agenda
Moved by Silda, supported by Lettang, to approve the agenda as presented.
Ayes: All
Nays: None
Motion carried.
Motion to Approve the Minutes of November 19, 2019 Regular Meeting
Moved by Lettang, supported by Tomyn, 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).
Mr. Keith Potter presented the renewal insurance premium. There were no changes from the
previous year with the exception of depreciation, therefore reducing the premium amount.
Moved by Lettang, 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 Renewal Agreement between Defense Center Executive Group, LLC
and the Local Development Finance Authority (LDFA).
Ms. Quell presented a Lease Renewal Agreement for the time period of January 1, 2020 thru
October 31, 2020 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 $900.00/month. The renewal period was adjusted to coincide with the
fiscal year of the MEDC.
Moved by Silda, supported by Johnson to approve the Lease Renewal Agreement between
Defense Center Group, LLC and the Local Development Finance Authority (LDFA).
Ayes: All
Nays: None
Motion carried.
To award Velocity Work Space Renovation project to F.H. Martin in the amount of
$466,700.00.
Mr. Hartmann presented the bids from the RFP for the Velocity Work Space Renovation. A
meeting was held on February 4, 2020, with Mr. Hartmann, Ms. Quell and Mr. Viazanko to
review the bids and make a recommendation. F.H. Martin was the low qualified bidder at
$466,700 for the project according to the plans and specifications and can meet the schedule
established for the project.
Moved by Pomaville, supported by Corba to award Velocity Work Space Renovation project to
F.H. Martin in the amount of $466,700.00.
Ayes: All
Nays: None
Motion carried.
To approve Budget Adjustment FY 2019/2020 for Work Space Renovation to $600,000.
Ms. Quell presented that the LDFA Board approved, on September 5, 2019, “Funding not to
exceed $400,000 for the Velocity Work Space Renovation project.” Based on the low qualified
bid from F.H. Martin in the amount of $466,700, it is requested that the do not exceed amount
for the project be $600,000 to allow for furniture, architect fees, and unanticipated costs. A
Budget Adjustment for FY 2019/2020 is requested of the LDFA Board.
Moved by Pomaville, supported by Venetis to approve Budget Adjustment FY 2019/2020 for
Work Space Renovation to $600,000.
Ayes: All
Nays: None
Motion carried.
To approve the 2020/2021 Budget Proposal for the Local Development Finance Authority
(LDFA).
Ms. Quell presented the 2020/2021 Budget Proposal, with supporting documentation, for the
Local Development Finance Authority. This proposal will be presented to and approved by City
Council and then presented to the LDFA Board in June for adoption.
Moved by Venetis, supported by Pomaville to approve the 2020/2021 Budget Proposal for the
Local Development Finance Authority (LDFA).
Update – Oakland University
Mr. Herriman presented an update on the activities of Oakland University.
Old Business
Board Members Report
Public Comment
None
Adjournment
Moved by Lettang, supported by Johnson to adjourn.
Ayes: All
Nays: None
Motion carried.
The meeting adjourned at 9:01 am. Minutes Approved 05/19/2020
Kq
John Lettang
Secretary
Agenda
CITY OF STERLING HEIGHTS
Special Meeting of the
LOCAL DEVELOPMENT FINANCE AUTHORITY
6633 18 Mile Road, Sterling Heights
586-884-9322
VELOCITY BUILDING
February 11, 2020
8:00 AM
MEETING CALLED TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF AGENDA
APPROVAL OF MINUTES OF November 19, 2019 Special Meeting
NEW BUSINESS
1. To approve the renewal insurance premium between the Michigan
Municipal Risk Management Authority and the Local Development Finance
Authority (LDFA).
2. To approve the Lease Renewal Agreement between Defense Center
Executive Group, LLC and the Local Development Finance Authority
(LDFA).
3. To award Velocity Work Space Renovation project to F.H. Martin in the
amount of $466,700.00
4. To approve Budget Adjustment FY 2019/2020 for Work Space Renovation
to $600,000.
5. To approve the 2020/2021 Budget Proposal for the LDFA
6. LDFA Update – Oakland University
OLD BUSINESS
PUBLIC COMMENT
ADJOURNMENT
CITY OF STERLING HEIGHTS
LOCAL DEVELOPMENT FINANCE AUTHORITY
Draft
MINUTES OF THE REGULAR MEETING
November 19, 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 8:05 a.m.
Pledge of Allegiance
Members present at roll call: David Corba, Stephanie Eagen, Ellanore Evans, Phil Hunsberger,
John Lettang, Steve Pomaville, Jim Ruma, Camille Silda, Jill Tomyn
Members absent: Laurel Johnson, Robert Ljucovic, Fred Molnar, Corey Venetis, 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; Larry
Herriman, Executive Director – Macomb OU Incubator, Dr. David Stone, Associate Vice
President-Research – Oakland University
Motion to Approve the Agenda
Moved by Pomaville, supported by Evans, to approve the agenda as presented.
Ayes: All
Nays: None
Motion carried.
Motion to Approve the Minutes of September 18, 2019 Special Meeting
Moved by Silda, supported by Tomyn, to approve the minutes as presented.
Ayes: All
Nays: None
Motion carried.
New Business
To consider the Reimbursement Agreement between the Local Development Finance
Authority (LDFA) and Steve M. Mancini Electing Small Business Trust Agreement
(Developer).
Mr. Bonner presented the Ric-Man/Damman Plumbrook Park Project Development and the
proposal of the Reimbursement Agreement whereby the LDFA would reimburse the Developer
up to $250,000 for eligible infrstructure and improvement costs.
Moved by Lettang, supported by Evans to approve the Reimbursement Agreement with Steve M.
Mancini Electing Small Business Trust Agreement.
Ayes: All
Nays: None
Motion carried.
To consider a contract for services with LivePicture for an Augmented and Virtual Reality
STEM Education Center at Velocity.
Stephen Couchman, President/CEO of LivePicture, presented to the LDFA Board an overview of
the AR/VR Center of Excellence. Mr. Bonner stated that LivePicture has developed a revenue-
sharing agreement for the City of Sterling Heights LDFA, granting them 10% of the net revenue
generated by the AR/VR Center. In exchange for running and managing the program, the LDFA
would exchange rent fee for services provided by LivePicture. It is anticipated that the 10% will
be equal or greater to the rent LivePicture is responsible for. The up front cost from the program
will be covered in full via a $29,000 grant from Macomb County Planning and Economic
Development to the LDFA.
Moved by Tomyn, supported by Pomaville to approve the contract with City of Sterling Heights
Local Development Finance Authority (LDFA) and LivePicture for an AR/VR Training Center.
To consider a Budget Adjustment for fiscal year 2019/2020 to allocate funding for the Ric-
Man Reimbursement Agreement in the amount of $250,000.
Moved by Lettang, supported by Evans to approve a Budget Adjustment for fiscal year
2019/2020 to allocate funding for the Ric-Man Reimbursement Agreement in the amount of
$250,000.
Old Business
Board Members Report
Public Comment
None
Adjournment
Moved by Evans, supported by Silda to adjourn.
Ayes: All
Nays: None
Motion carried.
The meeting adjourned at 8:42 am.
Kq
LDFA Business
Sterling Heights, Michigan
2/11/20
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, 2020 thru October 31, 2020 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 $900.00/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).
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