Local Development Finance Authority

CITY OF STERLING HEIGHTS Special Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY September 3, 2020 8:00 AM The LDFA is conducting its meeting on September 3, 2020 by telephone conference in accordance with Gov. Gretchen Whitmer’s Executive Order No. 2020-75. This notice is required by Executive Order No. 2020-15 to ensure that those wishing to participate in this meeting have the opportunity to do so. This meeting will take place at 8:00 a.m., on September 3, 2020 by Zoom videoconference and teleconference. To access the meeting, members of the public must dial in using the following telephone conference number: Dial In: _1-929-205-6099________ . When prompted, enter the following Meeting ID Number: __565 364 1180___________ and press “#”. You do not need to enter a passcode. All pubic participants wishing to participate by telephone will be placed on hold in a virtual “waiting room” until the meeting starts (8:00 a.m.). All members of the public will be muted during the business portion of the meeting. Those wishing to participate in Public Comment will then be recognized by the Chair and asked whether that person has a comment at that time. When prompted, you should indicate your desire to address the LDFA Board and be recognized by the Chair. Please be advised that there could be delays based on the number of calls received. Members of the public will be afforded three (3) minutes each to address the LDFA Board under Public Comment. The Chair, with LDFA Board approval, may shorten this time in order to provide all members of the public a reasonable opportunity to speak. As always, residents are encouraged to email any questions they may have on any agenda item to the LDFA at cityhall@sterling-heights.net. MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA CONSENT AGENDA A. June 23, 2020 Regular Minutes  B. To purchase equipment/services to support IT requirements for Velocity. Services include a monthly contract to support the needs of the building by exisiting city contracted provider. Costs not to exceed $65,000. NEW BUSINESS 1. Presentations by Oakland University (8:10 – 8:30) and Alchemist Ventures (8:30- 8:50). 2. Motion to accept/deny city staff recommendation for Entrepreneurial Services Provider and proceed with contract negotiations with Alchemist Ventures. OLD BUSINESS PUBLIC COMMENT ADJOURNMENT The LDFA will provide necessary reasonable auxiliary aids and services to individuals with disabilities at the meeting upon 7 days notice to Community Relations Department at 446-CITY.  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE SPECIAL MEETING June 23, 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 8:04 a.m. Pledge of Allegiance Members present at roll call: Phil Hunsberger, John Lettang, Steve Pomaville, Camille Silda, Howard Sizemore, Jill Tomyn, Corey Venetis Members absent: David Corba, Stephanie Eagen, Ellanore Evans, Laurel Johnson, Robert Ljucovic, Jim Ruma 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; Carl Peterson, Chief Advisor Business Development – Keihin North America, Inc.; Brian Boyle – Issue Media Group Motion to Approve the Agenda Moved by Pomaville, supported by Lettang, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the Minutes of February 11, 2020 Special Meeting Motion to Approve the Minutes of March 13, 2020 Special Meeting Motion to Approve the Minutes of May 19, 2020 Special Meeting Motion to Approve the Minutes of June 16, 2020 Regular Meeting Moved by Venetis, supported by Silda, to approve the minutes as presented. Ayes: All Nays: None Motion carried. New Business To approve the Lease Agreement between Keihin North America, Inc. and the Local Development Finance Authority (LDFA). Ms. Quell stated that Keihin North America, Inc. is requesting the LDFA Board approve a Month-to-Month Lease Agreement commencing on July 1, 2020 for space #2-E consisting of 907 square feet at a rental rate of $1209.00/month. Mr. Peterson stated that Keihin is a Japanese company founded in 1958 and approximately 35% of the company is owned by Honda. Keihin has $3.5 Billion in annual sales worldwide but no business with US customers. They are a technology based company specializing in unique automotive solutions for fuel injection, intake manifolds and electrification. Their goal for the Velocity office is to grow business in Michigan targeting General Motors, Ford, Toyota and FCA. Moved by Lettang, supported by Venetis to approve the Lease Agreement between Keihin North America, Inc. and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To award a construction contract to Progressive Irrigation Inc. for the Landscaping and Irrigation Improvements in the amount of $108,322.45, and authorize the Local Development Finance Authority Chairperson to sign all required documents on behalf of the Board. Mr. Castor stated at the LDFA meeting of September 5, 2019, the LDFA awarded work for the sign only at Center Drive and Sterling Ponds Drive. On Friday, May 22, 2020, bids were received for the site work component of the project. Recommendation is made to award the bid to the low bidder, Progressive Irrigation in the amount of $108,322.45. Moved by Silda, supported by Lettang to award a construction contract to Progressive Irrigation Inc. for Landscaping and Irrigation Improvements in the amount of $108,322.45 and authorize the Local Development Finance Authority Chairperson to sign all required documents on behalf of the Board. Ayes: All Nays: None Motion carried. Presentation from Issue Media Group Mr. Boyle presented a PowerPoint recapping the many stories and news media that Issue Media Group has created highlighting the business innovation of Sterling Heights. The presentation included the broad outreach of the stories. Discussion of the RFP for SmartZone Entrepreneurial Services Old Business Public Comment None Adjournment Moved by Pomaville, supported by Venetis to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:05 am. Kq  Business of the LDFA Sterling Heights, Michigan Item No: Meeting: 9-3-20 LDFA AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Entrepreneurial Services Submitted By: Luke Bonner, Senior Economic Development Advisor Contact /Telephone: Luke Bonner 734-846-9746 Administration (initial as applicable) Attachments City Clerk x Resolution Minutes Finance & Budget Director Ordinance Plan/Map City Attorney (as to legal form) Contract Other City Manager  Check box if this agenda item requires billing/revenue collection (fees, etc.) by Treasury Office Executive Summary: Below is a summary of the process related to the selection of the Request for Proposals# RFP – SH20-004: LDFA SmartZone Entrepreneurial Services • RFP Development: May – June 2020 • LDFA Board approves RFP: June 23, 2020 • RFP Issued: June 24, 2020 The RFP was posted electronically at mitn.info, and notices were sent to numerous potential interested advertise the opportunity. • RFP Addendum Issued: July 8, 2020 • Revised due date to July 21, 2020, updated specification wording, responded to 23 written questions. • RFP Proposal Due Date:July 21, 2020 Proposals received from the following: Alchemist Ventures LLC Techstars Central LLC Plug and Play Tech Center Macomb - Oakland University INCubator RFP Review Committee: July 22, 2020 Committee Members: Kathryn Quell Building Services Specialist – City of Sterling Heights Luke Bonner Senior Economic Development Advisor – City of Sterling Heights Stacey Ziarko President and CEO – Sterling Heights Regional Chamber of Commerce and Industry Mark D’Andreta President and owner of TDIC James Hadel President of Transpak, Inc. RFP Proposal Interviews of each company submitting a proposal occurred on July 31, 2020 and August 6, 2020, respectively. Review Committee Scoring: Based on a maximum possible score of 100, the committee rated each proposal as follows: 89.23 - Plug & Play 88.74 - Alchemist Ventures 86.82 - Tech Stars 81.36 - Macomb – Oakland University Incubator: Additional considerations: • Plug and Play is in the process of establishing a Detroit office, without the support from any organization. o Plug and Play has no local presence and would have to hire someone to run the program in Macomb. The LDFA would have no control over the hiring process. o With a Detroit office, the committee expressed concerns over whether they would have sufficient resources dedicated to development of the programming in Macomb County. o With that said, Macomb County companies can still work with Plug and Play, regardless of a Macomb location. • TechStars has an incredible international brand, however their Detroit based Venture closed after 5 years. o Their budget proposal was $750,000 for two dedicated individuals. There was also a concern that the proposal was primarily events focused. o As with Plug and Play, TechStars would hire locally without any control or input from the LDFA. • Alchemist Ventures has deep roots in Macomb County, and provides a very experienced team. o The budget of $492,000 is for three experienced, local, entrepreneurs that will also include programming and marketing. o Programs will be designed from people that have started, invested, and run companies and multiple start- ups. o The team has significant experience working together. However, this public-based entrepreneurship program will be their first venture. o The team has a defense and manufacturing expertise which fits Macomb County very well. • Macomb OU-Incubator has experience running the SmartZone for Sterling Heights but generally lacked any new direction or programming. o With a budget proposal of $420,000 the team did not present any new programs or ideas than what was previously in place. TechTown/Wayne State was mentioned as a partner for community engagement but no specific program was outlined of what they would do. o A significant amount of the presentation was dedicated to report writing and compliance with MEDC. Very little of the presentation focused on new ideas and programs that could be put into place. The recommendation is being made by the Review Committee to proceed with contract negotiations with Alchemist Ventures as the overall best proposal received. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to accept/deny city staff recommendation for Entrepreneurial Services Provider and proceed with contract negotiations with Alchemist Ventures.