Local Development Finance Authority

CITY OF STERLING HEIGHTS Special Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY January 11, 2022 8:00 AM The LDFA is conducting its meeting on January 11, 2022 by telephone conference. This meeting will take place at 8:00 a.m., on January 11, 2022 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: __883 7525 3113___________ and passcode 510470. 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. November 30, 2021 Special Meeting Minutes NEW BUSINESS 1. To consider the Cloud Services Agreement between the City of Sterling Heights Local Development Finance Authority (LDFA) and Nordicom Technologies, Inc. 2. To consider the Internet Agreement between the Local Development Finance Authority (LDFA) and Windstream Enterprise. 3. To Consider the Managed Infrastructure Service Agreement between the City of Sterling Heights Local Development Finance Authority (LDFA) and Nordicom Technologies, Inc. 4. Consider The Strategic Planning Agreement between the City of Sterling Heights Local Development Finance Authority (LDFA) and Strategiz, LLC, a consultancy concentrated on assisting organizations in strategic planning, operational coaching, focus group facilitation and executive coaching and leadership development. 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 November 30, 2021 – 8:00 a.m. 6633 18 Mile Road, Sterling Heights, MI 48314 586-884-9322 VideoConference and TeleConference Phil Hunsberger called the meeting to order at 8:01 a.m. Pledge of Allegiance Members present at roll call: Dr. Michael Balsamo, Bill Holbrook, Phil Hunsberger, Laurel Johnson, John Lettang, Steve Pomaville, Howard Sizemore, Jill Tomyn Members absent: Ellanore Evans, Josh Hundt, Robert Ljucovic, Dominic Patrus, Jeanne Schabath-Lewis, Camille Silda 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; April Boyle 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 Lettang, supported by Johnson, to approve the Consent Agenda as presented. A. To approve the minutes of the Special Meeting of October 15, 2021. B. To approve the Lease Renewal Agreement between Michigan Economic Development Corporation and the Local Development Finance Authority (LDFA). The renewal is for a 12-month period October 1, 2021 thru September 30, 2022 for spaces #1-A and #1-G at a rate of $900.00/month. Ms. Quell stated that an agenda item of New Business be added regarding funding for the next three consent items. C. To accept the proposal by Mando Construction, Inc (75 Lafayette Street, Suite 100, Mount Clemens, MI 48043) for the remodel of Velocity in the amount of $31,478.00 – Ceiling Tile Grid. D. To accept the proposal by LaBelle Electrical Contractors, LLC (241 Church Street, Mount Clemens, MI 48043) for the remodel of Velocity in the amounts of $7,900.00 – BUZZI Lighting Robotics Lab and $59,970.00 – Tenant Space Lighting Replacement.  E. To accept the proposal by ISCG, Inc (612 North Main, Royal Oak, MI 48067) for the remodel of Velocity in the amount of $16,700.00 – #117111 – Demountable Glass Walls. Ayes: All Nays: None Motion carried. New Business To approve the Budget Amendment including allocating an additional $300,000 to the Renovation of Velocity. Ms. Quell stated that the current budget of $600,000 for renovations to the Velocity building has all been accounted for. The scope of work entailed retrofitting new exterior lighting on the entire perimeter of the building, changing the interior lighting from florescent to LED lighting, painting, flooring, and some furniture. Ms. Quell stated that the items in the consent agenda are to complete ceiling tile and lighting replacement in the tenant spaces, allowing a cohesive look to the building. Ms. Quell stated that the budget for the renovation of the co-working space, consisting of 1400 square feet, was $600,000. This same amount was the budget for the entire facility consisting of 43,000 square feet. Ms. Quell recommended the increase of $300,000 to complete the ceiling tiles and lighting while the same materials that were installed in the rest of the building are available and before prices increase. Moved by Lettang, supported by Johnson to approve the Budget Amendment including allocating an additional $300,000 to the Renovation of Velocity. Ayes: All Nays: None Motion carried. To approve the Lease Agreement between National Advanced Mobility Consortium and the Local Development Finance Authority (LDFA). Mr. Bonner stated that this tenant was referred to Velocity by Jetco, an existing tenant. National Advanced Mobility Consortium works in the mobility industry. The location of Velocity is beneficial to manage their existing partnerships, create new ones and hosting events. They work with connected autonomous vehicles. Moved by Balsamo, supported by Pomaville to approve the Lease Agreement between National Advanced Mobility Consortium and the Local Development Finance Authority (LDFA). Ayes: All Nays: None Motion carried. To consider the Reimbursement Request between the Local Development Finance Authority (LDFA) and Steve M. Mancini Electing Small Business Trust Agreement (Developer). Mr. Bonner stated that the project is located at 18 ½ Mile and Mound. There are two owners of property – Steve Mancini of RicMan Construction and Michael Damman. The original ownership and configuration was not ideal for traffic management. To resolve the issue, the two developers entered an agreement to swap property allowing Mancini to develop off Mound Road with truck storage deep into the property and Damman is off 18 ½ Mile Road. To facilitate the swap and make best usage of the properties, the LDFA agreed to a Reimbursement Agreement, not to exceed $250,000, on November 19, 2019 for the cost of the sanitary sewer line. The work has been completed and all requirements have been met. The invoices have been reviewed and the City Controller, Nick Mackie, approves. Moved by Lettang, supported by Johnson to approve the Reimbursement Request between the Local Development Finance Authority (LDFA) and Steve M. Mancini Electing Small Business Trust Agreement (Developer). Ayes: All Nays: None Motion carried. To consider The Entrepreneurial Services Management Agreement between the City of Sterling Heights Local Development Finance Authority and April Boyle, an independent Entrepreneurial and Innovation Specialist as the Senior Advisor of Innovation and Entrepreneurship. Mr. Bonner stated that after the departure of Alchemist Ventures, the City went back to the other candidates from the RFP. Both, TechStars and Plug & Play were no longer. The City also looked at business consulting groups. Mr. Bonner stated that Velocity needs experienced leadership in entrepreneurship and innovation. He introduced April Boyle. Ms. Boyle presented to the Board her experience and accomplishments. She stated that the first 30 days would be discovery and then 90 – 120 days would be a development of a strategic plan, determining the target market, staffing, mission and vision for a long term sustainable innovative ecosystem. Mr. Pomaville inquired as to whether Ms. Boyle was independent or if the LDFA was contracting with a team. Ms. Boyle stated that she was an independent contractor. Mr. Hunsberger inquired how much time she could committ to the position with her other interests. Ms. Boyle stated that she is not involved first hand in her other endeavors. This position would be her main focus, giving a 40ish hour work week. Mr. Hunsberger inquired how she would meet the needs of tech companies. Ms. Boyle stated that through partnering and hiring to build a team of expertise. Mr. Lettang inquired how many businesses were launched in her 3 years with Dhive. Ms. Boyle stated that they created 1 ½ jobs per company with 800 companies. Mr. Lettang inquired if the service agreement is for one year. Mr. Bonner stated yes. Mr. Lettang inquired as to the metrics. Ms. Boyle stated that as she develops the position through the discovery process, the metrics would be determined such as social media, tenants, events. Mr. Lettang inquired how often she would report to the Board. Ms. Boyle stated probably quarterly. Moved by Balsamo, supported by Pomaville to approve the contract with April Boyle as the Senior Advisor of Innovation and Entrepreneurship. Old Business Public Comment None Adjournment Moved by Lettang, supported by Johnson to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 9:01am  Business of the Local Development Finance Meeting: 1/11/22 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Consider The Cloud Services Agreement between the City of Sterling Heights Local Development Finance Authority and Nordicom Technologies, Inc. Submitted By: Office of Economic Development Contact Person/Telephone: Kathryn Quell, Building Services Specialist Administration (initial as applicable) Attachments City Clerk x Resolution Minutes Finance & Budget Director Ordinance Plan/Map City Attorney (as to legal form) x Contract x Other City Manager  Check box if this agenda item requires billing/revenue collection (fees, etc.) by Treasury Office Executive Summary: The Cloud Services Agreement is a cloud based subscription service. The Agreement is for seven (7) user phones along with seven (7) licenses for Microsoft 365. The Agreement covers installation, mangement and support services regarding the phones and licensing. There is an initial one-time cost of $1025. The contract is for a three-year period with a fee of $322.00 per month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Cloud Services Agreement between the City of Sterling Heights Local Development Finance Authority and Nordicom Technologies, Inc.  Business of the Local Development Finance Meeting: 1/11/22 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Consider The Internet Agreement between the City of Sterling Heights Local Development Finance Authority and Windstream Enterprise. Submitted By: Office of Economic Development Contact Person/Telephone: Kathryn Quell, Building Services Specialist Administration (initial as applicable) Attachments City Clerk x Resolution Minutes Finance & Budget Director Ordinance Plan/Map City Attorney (as to legal form) x Contract x Other City Manager  Check box if this agenda item requires billing/revenue collection (fees, etc.) by Treasury Office Executive Summary: This is a three-year Internet Agreement for 1Gb with a block of 32 Ips and managed router equipment. The cost is $1781.48/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Internet Agreement between the City of Sterling Heights Local Development Finance Authority and Windstream Enterprise.  Business of the Local Development Finance Meeting: 1/11/22 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Consider The Managed Infrastructure Service Agreement between the City of Sterling Heights Local Development Finance Authority and Nordicom Technologies, Inc. Submitted By: Office of Economic Development Contact Person/Telephone: Kathryn Quell, Building Services Specialist Administration (initial as applicable) Attachments City Clerk x Resolution Minutes Finance & Budget Director Ordinance Plan/Map City Attorney (as to legal form) x Contract x Other City Manager  Check box if this agenda item requires billing/revenue collection (fees, etc.) by Treasury Office Executive Summary: This is a eight-month Managed Infrastructure Agreement for IT at Velocity. The cost is $2500.00/month. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Managed Infrastructure Service Agreement between the City of Sterling Heights Local Development Finance Authority and Nordicom Technologies, Inc.