Local Development Finance Authority

CITY OF STERLING HEIGHTS Regular Meeting of the LOCAL DEVELOPMENT FINANCE AUTHORITY 6633 18 Mile Road, Sterling Heights 586-884-9322 VELOCITY BUILDING February 21, 2023 8:00 AM MEETING CALLED TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA CONSENT AGENDA A. November 22, 2023 Regular Meeting Minutes NEW BUSINESS 1. To Consider the Proposal to replace the touchscreen directory at both entrances to the Velocity building between the City of Sterling Heights Local Development Finance Authority and Interactive Touchscreen Solutions, Inc. in the amount of $7,077.00. 2. To Approve the Lease Agreement between Applied Research Associates, Inc. and the Local Development Finance Authority (LDFA). 3. April Boyle Programming Update 4. To Approve the Phase 3 Contract between the City of Sterling Heights Local Development Finance Authority and Strategiz, LLC, in the amount of $3000.00. 5. To Approve the hiring of Community Manager position at Velocity in the amount of $85,000.00. 6. Update by ReGroup Advisors OLD BUSINESS PUBLIC COMMENT ADJOURNMENT  CITY OF STERLING HEIGHTS LOCAL DEVELOPMENT FINANCE AUTHORITY Draft MINUTES OF THE SPECIAL MEETING November 22, 2022 – 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 8:03 a.m. Pledge of Allegiance Members present at roll call: Josephine Attisha, Phil Hunsberger, Laurel Johnson, Steve Pomaville, Vicky Rowinski, Jeanne Schabath-Lewis, Howard Sizemore, Jill Tomyn Members absent: Dr. Michael Balsamo, Ellanore Evans, Bill Holbrook, Josh Hundt, John Lettang, Dominic Patrus Also in attendance: Jason Castor, City Development Director – City of Sterling Heights; Kathryn Quell, Management Services Specialist – City of Sterling Heights; Luke Bonner, CEO Bonner Advisory Group, Senior Economic Development Advisor – City of Sterling Heights; Hannah Tadros, Risk Management Coordinator – City of Sterling Heights; April Boyle, Senior Advisor for Entrepreneurship and Innovation; Jake Parcell, Planning – City of Sterling Heights; Amy Rencher, MEDC Motion to Approve the Agenda Moved by Schabath-Lewis, supported by Johnson, to approve the agenda as presented. Ayes: All Nays: None Motion carried. Motion to Approve the CONSENT AGENDA as presented Moved by Pomaville, supported by Rowinski, to approve the Consent Agenda as presented. A. To approve the minutes of the Regular Meeting of September 20, 2022. B. To approve the International Landing Zone (ILZ) Lease Agreement between NOXMAT GmbH and the Local Development Finance Authority (LDFA). The Agreement is $0/month for six months. The program is sponsored by Macomb County Planning and Economic Development. C. To approve the Lease Agreement between LivePicture and the Local Development Finance Authority (LDFA). The Agreement is month-to-month at a rate of $243.00/month. D. To approve the Lease Agreement between National Advanced Mobility Consortium and the Local Development Finance Authority (LDFA). The Agreement is for one-year at a rate of $1,000.00/month. 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 the MMRMA has been the carrier for insurance of Velocity since inception and that they also cover the City’s other buildings. Ms. Quell stated that being a part of the blanket plan allows for better rates. Ms. Quell said that Velocity has never had any claims and, therefore, the rates have remained consistent. Ms. Quell introduced Hannah Tadros, Risk Management Coordinator for the City of Sterling Heights to answer any questions that the Board may have. No questions were presented. The proposal is in the amount of $12,903.00 for the period commencing December 15, 2022 through December 15, 2023. Moved by Sizemore, supported by Rowinski to approve the Renewal Insurance Premium between the Michigan Municipal Risk Management Authority and the Local Development Finance Authority (LDFA) in the amount of $12,903.00. Ayes: All Nays: None Motion carried. Update – April Boyle, Senior Advisor for Entrepreneurship and Innovation Ms. Boyle provided information to the LDFA Board regarding: hiring a Community Manager and what the position entails, Third Quarter 2022 Metrics, and an End of the Year Review. Old Business Public Comment None Adjournment Moved by Schabath-Lewis, supported by Pomaville to adjourn. Ayes: All Nays: None Motion carried. The meeting adjourned at 8:26am  Business of the Local Development Finance Meeting: 2/21/23 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Consider The Proposal to replace the touchscreen directory at both entrances to the Velocity building between the City of Sterling Heights Local Development Finance Authority and Interactive Touchscreen Solutions, Inc in the amount of $7,077.00. 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 current touchscreen directories at both entrances to the Velocity building are not functional. Both, the software and hardware are obsolete. The submitted proposal is to upgrade the hardware and install a cloud based software system. There is significant cost savings in utilizing the same company, Interactive Touchscreen Solutions, Inc. that had installed the original touchscreens. The frame of the system is compatible with the new hardware, the software graphic redesign will be complimentary and the cloud subscription is discounted as an existing customer as well as a customer loyalty discount. Approval of the proposal will bring Velocity to the level of technology necessary to support the tenants and provide a directory of the building for visitors. The proposal is in the amount of $7077.00. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Proposal to replace the touchscreen directory at both entrances to the Velocity building between the City of Sterling Heights Local Development Finance Authority and Intereactive Touchscreen Solutions, Inc. in the amount of $7077.00.  Business of the Local Development Finance Meeting: 2/21/23 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: Consider Approval of the Lease Agreement between Applied Research Associates, Inc. and the Local Development Finance Authority (LDFA). 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: Presented for LDFA approval, is a Month-to-Month Lease Agreement between Applied Research Associates, Inc. and the Local Development Finance Authority (LDFA). The Agreement is for space #2-E, consisting of 907 square feet, at a rate of $1285.00/month. Applied Research Associates, Inc. is globally recognized for applying technically-excellent, in-depth and diversified research, engineering, and technical support services to provide answers to complex and challenging problems in the physical sciences. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Lease Agreement between Applied Research Associates, Inc. and the Local Development Finance Authority (LDFA).  Business of the Local Development Finance Meeting: 2/21/23 Authority Sterling Heights, Michigan AGENDA STATEMENT OMB AS03 Rev. 11/04 Item Title: To approve the Phase 3 Contract between the City of Sterling Heights Local Development Finance Authority and Strategiz, LLC, in the amount of $3000.00. Submitted By: Office of Economic Development Contact Person/Telephone: April Boyle, Senior Advisor for Entrepreneurship and Innovation 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: To execute the framework provided by the Strategic plan it will be necessary to continue developing operational infrastructure for Velocity Center. We would like to move forward with phase 3 work with Stratgiz. During this phase we will develop clear, transparent and replicable systems that will ensure long term sustainability and success of the organization including Metrics dashboard, tenant satisfaction surveys and Sponsorship packet with rental agreement. The fee for this will be $3000 and the work would take place February – June and includes the following: Project Scope Manage the monthly gathering and review of the Velocity Metrics Dashboard to create a culture of accountability and on-going reporting with stakeholders on a timely basis including the LDFA, City of Sterling Heights and MEDC. Provide on-goning consulting and operational support for the implementation of the Velocity strategic plan. Suggested Action: MOVED BY: SECONDED BY: RESOLVED, to approve the Phase 3 Contract between the City of Sterling Heights Local Development Finance Authority and Strategiz, LLC in the amount of $3000.00. Strategīz Strategiz, LLC Professional Services Statement of Work Client: Velocity PSA Number: 2022-01 SOW Number: VC-03 Becky Davenport Prepared by: Al Herbach Date: February 1, 2023 Project Name: Velocity Phase 3 Strategīz Table of Contents Table of Contents 2 Introduction 3 Scope of Services 4 Fee for Services 5 Contact Information 6 Signatures 7 SOW: VC-03 Velocity Phase III ∙ 2 Strategīz Introduction Strategiz, LLC (“Consultant”) will provide assistance in completing the project (“Project”) for Velocity ("Client") according to the terms outlined in this Statement of Work (“SOW”). Complete Agreement This SOW, in conjunction with the signed Professional Services Agreement (PSA 2022-01) comprises the total agreement for the described level of effort. Upon execution of this statement, Consultant will provide the services in the time frame described in the Project Schedule. In the event of a conflict between the terms of the Professional Services Agreement and the Statement of Work, the terms of the Statement of Work shall govern. If there are any unforeseen delays in the execution of these documents, the Scope of Services and/or Period of Performance may be adjusted based on mutually agreed upon terms between Consultant and Client. Expiration Until executed by the Client and received by Consultant, this SOW shall act as a quotation for services whose term will expire thirty (30) days from the date of issue. Any extensions to this term must be made in writing by Consultant. SOW: VC-03 Velocity Phase III ∙ 3 Strategīz Scope of Services This SOW reflects the Consultant’s understanding of the priorities established by the Client. Project Scope ● Manage the monthly gathering and review of the Velocity Dashboard to create a culture of accountability and on-going reporting with stakeholders on a timely basis including the LDFA, City of Sterling Heights, and MEDC ● Provide on-going consulting and operational support for the implementation of the Velocity strategic plan. Changes in Scope If the Client attempts to introduce different goals or principles based upon new factors introduced or discovered by the teams, including, but not limited to, the type of work to be done, amount of hours or work to be performed, the time schedule estimated, or a change in management direction affecting the scope of the Project, or any other changes in direction, priority, schedule or approach once established and agreed to in this SOW, such changes must be requested in writing by Client. Such changes will necessarily have both a schedule and cost impact on the Project and these changes will not be binding upon Consultant until agreed upon in writing with the accompanying increase in price and schedule adjustment and amendment to this SOW. Client Responsibilities Client will make all pertinent business records and relevant information available to Strategiz during the term of the engagement as requested. Payment Terms Based on the project scope, Strategiz has provided the following quotation of fees for this project. This fee is inclusive of all travel and other ordinary project expenses with the exception of any meeting rental fees or food and beverage expenses associated with focus groups and listening sessions and graphic design and printing charges. Graphic design and printing charges for the final document and presentation will be billed separately and at cost. Any expenses will be approved in advance by the Client. All changes in scope will require revised time estimates and written Client approval to implement. Strategiz will invoice the Client according to the following schedule. Client shall pay Consultant within 15 days of receipt of invoice. Any amount which is not paid when due shall bear interest at a rate of 1.5% per month or portion thereof from the date such amount became due. SOW: VC-03 Velocity Phase III ∙ 4 Strategīz Fee for Services Based on the project scope, deliverables identified, and estimated hours to complete the project, Consultant has provided the following quotation of fees for this project. As described earlier, all changes in scope will require revised time estimates and written Client approval to implement. Project Professional Fees Complete Project $ 2,500.00 TOTAL $ 2,500.00 Payment Schedule Consultant will invoice Client per the following schedule: Payment Description Invoice Date Invoice Amount Month 1 Professional Services February 1, 2023 $ 500.00 Month 2 Professional Services March 1, 2023 $ 500.00 Month 3 Professional Services April 1, 2023 $ 500.00 Month 4 Professional Services May 1, 2023 $ 500.00 Month 5 Professional Services June 1, 2023 $ 500.00 Total $ 2,500.00 Subsequent payments are due within 15 days of receipt of invoice. Any amount which is not paid when due shall bear interest at a rate of 1.5% per month or portion thereof from the date such amount became due. Period of Performance The period of performance for this Project will commence promptly upon Client and Consultant’s execution of this SOW. The date planned for the start of this Project is February 1, 2023. The actual start date will be established by mutual agreement between Client and Consultant. SOW: VC-03 Velocity Phase III ∙ 5 Strategīz Contact Information Project Manager: Becky Davenport Strategiz, LLC 4 Charles Street Grosse Pointe, MI 48230 Telephone: (313) 318-9130 bdavenport@strategiz.com Client Project Contact Velocity 6633 18 Mile Road Sterling Heights, MI 48314 Phone (586) 884-9320 Client Management Contact Velocity 6633 18 Mile Road Sterling Heights, MI 48314 Phone (586) 884-9320 Client Billing Address Velocity 6633 18 Mile Road Sterling Heights, MI 48314 Phone (586) 884-9320 Email address: April.Boyle@MIVelocity.com Invoices will be emailed to the above email address with a copy to kquell@sterling-heights.net . SOW: VC-03 Velocity Phase III ∙ 6 Strategīz Signatures Statement of Work Approval Consultant: Strategiz, LLC Client: Velocity By: By: __________________________________________________ ________________________________________________________ Authorized Signature Authorized Signature Becky Davenport April Boyle Name (please print) Name (please print) Founding Partner Senior Advisor for Entrepreneurship and Innovation Title Title Date: _________________________________________ Date: _________________________________________ SOW: VC-03 Velocity Phase III ∙ 7  PAULA J. MACPHERSON P. 586.604.9940 E. paulajmacpherson@gmail.com EXPERIENCE May 2022– Current Project Manager (Contract) • MKiezi • Troy, MI Key Accomplishments: - Developed SOPs - Developed Pitch Decks for Funding - Developed Due Diligence Process - Developed Tenant Attraction Material - Developed Construction Bid Process - Worked with Investment Growth Team Contracted by owner to evaluate current business structure and processes. I have worked with the asset team to develop and implement a repeatable due diligence process for use in acquisitions. Developed pitch decks for the refinance of three high profile properties. Currently working with owner to create a strategy and long-term business plan for the redevelopment of high-profile acquisition. October 2005 – Current Realtor • eXp Realty • Troy, MI Key Accomplishments: - Create Marketing Materials - Negotiate Sales - Work with Buyers and Sellers - Negotiate Leases - Property Management - Broker Price Opinions Represent buyers and sellers in the negotiation of property sales and leases. From 2008-2011 I worked directly for 16 banks listing REO properties and negotiating on behalf of the banks interest. January 2021– August 2021 Project Manager (Contract) • Sunroof Express • Troy, MI Key Accomplishments: - Developed SOPs - Improved Staffing & Retention - Improved Claim Response Ratio 80% - Improved Overall Sales by 35% - Negotiated With Suppliers - Evaluated IT Upgrades Contracted by owner to evaluate primary business and two ancillary businesses. I worked closely with executive staff to develop standard operating procedures and training materials. A large part of this contract was aiding the owner in bolstering the profitability of the two ancillary businesses that were failing prior to my retention. As a result of my efforts the company saw a large increase in sales, lower purchase pricing with suppliers and a streamlined process to better serve clients. April 2019 – March 2020 Operations • Quantum Ventures of Michigan • Auburn Hills, MI On assignment: Renew Medical Key Accomplishments: - Led Team to Exceeded Sales Goals - Developed & Implemented SOPs - Created Training Materials - Designed New CRM - Corrected Budget Inefficiencies - Conducted Time Studies - Remediated Operational - Created & Championed Sales Goals Inefficiencies - Staff Recruitment - Created Positive Company Culture - Staff Coaching & Training Worked with the management team to create the budget used for financial projections to illustrate cash needs to investors. Actively collaborated with contracted developers to create a fully integrated CRM, predictive dialer, and automated lead contact solution. Worked closely with investors and management team to ensure the call center consistently achieved required sales metrics. Created training materials for use in the call center and across the national sales team. Worked with management team to develop and implement company-wide standard operating procedures. Worked with management team to actively recruit surgical and sales staff for various locations throughout the U.S. July 2017 – April 2019 Director of Operations • Quantum Ventures of Michigan • Auburn Hills, MI On assignment: Quantum Services Group Key Accomplishments: - Sourced I.T. Professionals - Developed & Implemented SOP - Created Training Materials - Implementation Team for CRM - Developed a Positive Culture - Led Team to Meet Client SLA - Performed Time Studies for Clients - Remediation of Client Inefficiencies Managed staff to meet and exceed client satisfaction requirements. Responsible for sales team, project construction, and coordination. Created processes and procedures to streamline client deliverables. Worked with team to implement new CRM to manage accounting functions, client support requests and other critical metrics to meet client SLA agreements. Conducted process studies for clients to help identify I.T. deficiencies and coordinated with architects and implementation teams to correct. November 2013 – July 2017 Executive Assistant • Quantum Ventures of Michigan • Auburn Hills, MI Key Accomplishments: - Created Operational Budget - Managed $1.5M Renovation - Travel & Event Planning - Due Diligence Team - Staffing & Payroll for Investments - Supported CEO & Executive Team Served as the Executive Assistant to the CEO. Responsibilities included office operations, building management and event planning. Managed the building operational budget, travel and schedule coordination for all executive staff, planning of advisory board meetings and build of board packets. Managed several building projects including a $1.5M renovation of a commercial property. This role put to use my skills in the areas of organization and construction project management, while gaining a solid understanding of mergers and acquisitions. This role presented the opportunity for me to learn about large deal structure, due diligence processes, and investment strategy. Contracted to work with two in-house investments: Quantum Services Group and Renew Medical. October 2006 – November 2013 Operations • ACT, Inc. • Warren, MI Key Accomplishments: - Created Operational Budget - Created Employee Handbook - Payables & Receivables - Cash Basis Accounting - Cash Basis Accounting - Sales of $1M Annually - Staffing & Payroll - Saved Company $5,000 Annually in - Materials Sourcing & Job Costing Insurance Inefficiencies - Property Management - Lease Management Managed construction projects from inception to completion including sales, pricing of projects and client status reports. Created contracts, invoicing, proposals, placed construction liens, and managed materials sourcing. Responsible for creating advertising and marketing pieces for use in sales appointments. Managed all human resource functions including the creation of the employee handbook, office procedures, and forms used as well as managing employee health benefit accounts. Performed all accounting functions and preparations for year- end tax filings and insurance audits. February 1993 – October 2006 Training & Education Manager • Metro Credit Union. • Centerline, MI Key Accomplishments: - Created Training Programs - Created & Implemented - Remediated Staff Deficiencies Performance Metrics - Created Annual Training Budget - Cross-Trained Staff - Created Curriculum for Schools - Technical Training for Staff Roles included cash, member services and lending departments prior to moving into the role of Training & Education Manager. As the Training Manager I created and delivered technical presentations for membership and staff. Created training materials and training metrics for all job functions within the organization. Trained all new staff and cross-trained existing staff to perform job functions and identify cross-sales opportunities. Trained staff and students in student-run branches to use various software including CUPS and Microsoft Office Suite. Identified training deficiencies and created training curriculums to remediate. Responsible for the creation and maintenance of department annual budget and business plan. EDUCATION & CERTIFICATIONS Oakland University Business Administration and Management Michigan School of Real Estate Realtor Kaplan Career Institute Auto, Personal Property and Life Insurance Traction & EOS Facilitator & Coach (Business Process Solutions) Notary Public Macomb County References provided upon request