Local Development Finance Authority

CITY OF STERLING HEIGHTS Regular Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY February 16, 2021 8:00 AM The LDFA is conducting its meeting on February 16, 2021 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 February 16, 2021 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: __932 2109 2442___________ and passcode 087614. 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. December 17, 2020 Special Meeting Minutes  B. To accept the proposal by Complete Kitchen Design, LLC (33827 Harper Ave, Clinton Twp MI 48035) for the remodel of the men’s and women’s restrooms in the Collaboration Center in an amount not to exceed $25,000.00. C. To approve the Shared Workspace Lease Agreement between Michael Melling and the Local Development Finance Authority (LDFA). The Agreement is month- to-month at a rate of $100/month. D. To approve the International Landing Zone (ILZ) Lease Agreement between Dumur USA, a wholly owned subsidiary of Dumur Industries and the Local Development Finance Authority (LDFA). E. To approve the Lease Agreement between the Michigan Economic Development Corporation (MEDC) and the Local Development Finance Authority (LDFA). The lease was previously held with The Defense Center Executive Group, LLC. NEW BUSINESS 1. To approve final payment in the amount of $25,919.88, plus interest on retainage, for the Sterling drive Industrial Subdivision Sectional Concrete Repairs, City Project #18-317. 2. To approve the 2021/2022 Budget Proposal for the Local Development Finance Authority (LDFA) 3. Update – 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 December 17, 2020 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 VideoConference and TeleConference John Lettang called the meeting to order at 8:00 a.m. Pledge of Allegiance Members present at roll call: Bill Holbrook, Elise Johnson, Laurel Johnson, John Lettang, Dominic Patrus, Steve Pomaville, Jeanne Schabath-Lewis, Camille Silda, Howard Sizemore, Jill Tomyn Members absent: Ellanore Evans, Josh Hundt, Phil Hunsberger, Robert Ljucovic 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; Alchemist Ventures – Patrick Wearn, Patricia Lopez, Tyler Sweatt; Hannah Tadros, Risk Management Coordinator – City of Sterling Heights; Brad Waid – Non Stop Creatives, LLC 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 CONSENT AGENDA as presented Moved by Silda, supported by Lettang, to approve the Consent Agenda as presented. A. To approve the minutes of the Special Meeting of October 12, 2020. B. To approve the proposal by ISCG (612 North Main Street, Royal Oak, MI 48067) for the development and implementation of design for Velocity in the amount of $3,150.00 under the Michigan MIDEAL contract. C. To approve the proposal by ISCG (612 North Main Street, Royal Oak, MI 48067) to paint Velocity in the amount of $26,612.00. D. To approve the proposal by Weber Security (95 South Rose Street, Suite A, Mt. Clemens, MI 48043) for Service/Maintenance Contract including network configurations, troubleshooting, and support. Remote monitoring and onsite services 24/7 in the amount of $36,000.00 for 12-month period. 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 this year’s insurance bill for Velocity from Michigan Municipal Risk Management Authority is in the amount of $12,611.00. This is a $50 increase from last year’s bill of $12,561.00. Ms. Quell stated that the recovery of Net Asset Distributions and Loss Fund Distributions is significantly higher in the amount of $4361 versus $2876 from last year. The net insurance bill that will be charged to the budget is $8250. Ms. Quell stated that this amount is $4361 less than last year’s due to the fact that there have never been any claims at Velocity. Moved by Schabath-Lewis, 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 Non Stop Creatives, LLC and the Local Development Finance Authority (LDFA). Ms. Quell presented a new Lease Agreement for Non Stop Creatives to rent space #2-A , consisting of 830.5 square feet on a Month-to-Month Lease at a rental rate of $725.00/month. The Lease Agreement would commence on December 1, 2020. They would be renting space at an incubating rate. Ms. Quell stated that Non Stop Creatives is a video production company that also works with virtual and augmented reality using new technology for marketing and content as well. Mr. Waid introduced himself and talked about some past projects and plans for future projects also. One current project is New Horizons, a show highlighting emerging technology, changing workforce development and implementing the shared technology ideas. Moved by Silda, supported by Johnson, to approve the Lease Agreement between Non Stop Creatives, LLC and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. Update – Alchemist Ventures 12/16 – held a virtual ribbon cutting event at Velocity with approximately 50 attendees. Showcased the co-working space, the building itself and tenants. Responses have been received for interest in the co-working space and suite space. Ensuring protocal is adhered to in regards to COVID with non-touch temp, sign in sheets for tracing GrowBig classes – virtual classes for growing business development skills. Purchased 15 licenses to give to 15 participants. 1 ½ every Tuesday for a year. 1/7 – GrowBig Introduction 1/14 – GrowBig Implementation 1/21 – Manufacturers Engage – virtual event to hear what is on the manufacters’ mind and how to help them grow Met with Macomb Community College and have a call with Dr. Stone of Oakland University Working with Microcide to develop a business plan and marketing Old Business Public Comment None Adjournment Moved by Pomaville, supported by L. Johnson to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:30 am. Kq  LDFA Business Sterling Heights, Michigan 2/16/21 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Shared Workspace Lease Agreement between Michael Melling and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a Shared Workspace Lease Agreement for space at Velocity at a rate of $100/month on a month-to-month basis commencing February 1, 2021. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: To approve the Shared Workspace Lease Agreement between Michael Melling and the Local Development Finance Authority (LDFA). I am a full-time employee as a software developer / controls engineer. I want to use the space on nights and weekends for study and research on my interests in AR/VR applications, artificial intelligence, blockchain and "Internet of Things" technologies. I also have some friends who have space at the center and will plan on collaborating on projects with them. I would love to get other friends to rent space at the center and build a community of people working on similar fields of interest.  LDFA Business Sterling Heights, Michigan 2/16/21 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between Dumur USA, a wholly owned subsidiary of Dumur Industries and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist Executive Summary Attached for LDFA review is a February 15, 2021 thru August 15, 2021 Lease Agreement for space at Velocity through the International Landing Zone program sponsored by Macomb County Department of Planning and Economic Development. Dumur Industries is a metal fabricating and machining company. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Renewal Agreement between Dumur USA, a wholly owned subsidiary of Dumur Industries and the Local Development Finance Authority (LDFA).  LDFA Business Sterling Heights, Michigan 2/16/20 AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Lease Agreement between the Michigan Economic Development Corporation (MEDC) and the Local Development Finance Authority (LDFA). Submitted By: Kathryn Quell, Building Services Specialist, Velocity Executive Summary Attached for LDFA review is a Lease Agreement for the period of November 1, 2020 through September 30, 2021 for spaces #1-A, #1-B and #1-G consisting of 714 square feet at a rental rate of $900.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED: to approve the Lease Agreement between the Michigan Economic Development Corporation (MEDC) and the Local Development Finance Authority (LDFA).  STERLING DRIVE INDUSTRIAL SUBDIVISION SECTIONAL CONCRETE REPAIRS CITY PROJECT #18‐317 AFTER COMPLETION  STERLING DRIVE INDUSTRIAL SUBDIVISION SECTIONAL CONCRETE REPAIRS CITY PROJECT #18‐317 EXISTING CONDITIONS  CITY OF STERLING HEIGHTS 40555 Utica Road Sterling Heights, Michigan Phone (586) 446-2720 Final Payment Certificate PROJECT: LDFA Sterling Drive Industrial Sub Improvements City Project No. 18-317 CONTRACTOR: Galui Construction Inc. DATE: 1/15/2021 33805 Harper Ave. Clinton Twp., MI 48035 FINAL ESTIMATE Original Contract Price: $ 517,249.00 Final Contract Price: $ 517,159.88 Percent Paid Including This Estimate: 100% Amount Earned to Date: $ 517,159.88 Amount Withheld: $ - PAY AMOUNT Subtotal: $ 517,159.88 $25,919.88 Retain: $ - Total: $ 517,159.88 Less Previous Payment: $ 491,240.00 Amount Due This Estimate: $ 25,919.88 Estimate #1 $ 160,290.00 Digitally signed by Adam LaClair Adam DN: cn=Adam LaClair, o=City of Sterling Heights, ou=Engineering Estimate #2 $ 330,950.00 Department, Estimate #3 Prepared By: LaClair email=alaclair@sterling- heights.net, c=US ______________________ Date: ____________ Date: 2021.02.06 17:28:12 -05'00' Estimate #4 Adam LaClair, Construction Coordinator Estimate #5 Digitally signed by Andrew Konkle DN: C=US, E=akonkle@sterling-heights.net, Estimate #6 O=City of Sterling Heights, OU=Engineering, CN=Andrew Estimate #7 Checked By: _____________________ Date: ____________ Konkle Date: 2021.02.08 10:13:28-05'00' Estimate #8 Andrew Konkle, Civil Engineer II Estimate #9 Digitally signed by Brent Bashaw Estimate #10 Brent DN: cn=Brent Bashaw, o=City of Sterling Heights, ou=Engineering, email=bbashaw@sterling-heights.net, Final Estimate $ 25,919.88 Approved By: Bashaw _____________________ c=US Date: ____________ Date: 2021.02.05 16:26:04 -05'00' Brent Bashaw, City Engineer Total $517,159.88 TOTAL AMOUNT TO BE HELD IN RETAINAGE ACCOUNT $0 LDFA Sterling Drive Replacement Program, City Project 18-317 FINAL ESTIMATE Page 2 ITEM/DESCRIPTION CONTRACT ACTUAL UNIT AMOUNT QUANTITY QUANTITY PRICE LDFA Sterling Drive Industrial Sub Improvements 1. Remove Concrete Pavement & Replace 9609 SYD 9,867.7 $48.00 $473,649.60 9" Concrete Pavement (MDOT P1 Mod) 2. Pavement Repair, Detail 8 (MDOT P1 Mod) 10 SYD $48.00 $0.00 3. Earth Excavation 50 CYD $3.00 $0.00 4. 2" MDOT 21AA Crushed Concrete - C.I.P. 9610 SYD 10,242.7 $1.40 $14,339.78 5. 6" MDOT 21AA Crushed Concrete - C.I.P. 25 SYD $3.00 $0.00 6. Saw Cut (Vertical) 33 FT $1.00 $0.00 7. Extra Cement 10 SACK $1.00 $0.00 8. Reconstruct Drainage Structure 34 FT 35.5 $25.00 $887.50 9. 6" Edge Drain (Pea Stone Backfill) 6000 FT 5,852.0 $4.00 $23,408.00 10. Replace Existing Catch Basin Frame 19 EA 13.0 $375.00 $4,875.00 & Cover w/New EJIW 5105 Frame & Cover 11. Route and Reseal Concrete Pavement 9790 FT $1.00 $0.00 Cracks and Joints 12. Joint Sealing Compound 50 LBS $1.00 $0.00 TOTAL $517,159.88 NOTIFICATION LIST Galui Construction Co. 33805 Harper Ave. Clinton Township, MI 48035 galui22@comcast.net