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Rochester Hills, MI

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Rochester Hills

Minutes

Local Development Finance Authority

Clarence Brantley, Michael Damone, Michael Ellis, Lois Golden, Tammy Muczynski,

William Mull, Theresa Mungioli, Kris Pawlowski, Cassie Patterson, Romaneir Polley,

Mike Reno, Stephan Slavik, Owen Winnie

7:30 AM

1000 Rochester Hills Drive

Thursday, April 2, 2009

CALL TO ORDER

The regular meeting was called to order at 7:40 a.m. by Chairperson Slavik.

ROLL CALL

Clarence Brantley, Stephan Slavik, Theresa Mungioli, Romaneir Polley, Kris

Pawlowski and William Mull

Present

6 -

Michael Damone, Michael Ellis, Lois Golden, Owen Winnie, Tammy

Muczynski, Mike Reno and Cassie Patterson

Absent

7 -

Also Present: Clarinda Barnett-Harrison, Economic Development Assistant

Dan Casey, Manager, Economic Development

Paul Davis, City Engineer

Kurt Dawson, Director, Treasury & Assessing

Keith Sawdon, Director, Finance

COMMUNICATIONS

There were no Communications brought forward.

APPROVAL OF MINUTES

2009-0040

October 2, 2008 Regular Meeting

A motion was made by Pawlowski, seconded by Brantley, that this matter be

Approved as Presented.

The motion CARRIED by the following vote:

Aye

Brantley, Slavik, Mungioli, Polley, Pawlowski and Mull

6 -

Absent

Damone, Ellis, Golden, Winnie, Muczynski, Reno and Patterson

7 -

NEW BUSINESS

2009-0137

Election of Officers

MOTION by Mungioli, supported by Polley, nominating Mr. Slavik for

Chairperson.

MOTION by Mungioli, supported by Brantley, to close nominations and move

the unanimous ballot for Mr. Slavik as Chairperson.

The Planning and Development Department will continue to serve as secretary

to the Board.

A motion was made by Mungioli, seconded by Polley, that this matter be

Approved.

The motion CARRIED by the following vote:

Aye

Brantley, Slavik, Mungioli, Polley, Pawlowski and Mull

6 -

Absent

Damone, Ellis, Golden, Winnie, Muczynski, Reno and Patterson

7 -

2009-0041

2009 SmartZone Budget - Approval

Mr. Casey explained that City Council has approved the annual budget

totaling $350,270. However, this total does not include the school millage

reimbursement to the City authorized by the Department of Treasury.

The reimbursement is estimated at $103,581, increasing revenues to

$453,851. Once the reimbursement is received, a quarterly budget

amendment will address this change. OU INCubator is shifting from a

calendar to a fiscal year, coinciding with OU’s fiscal year, which begins on

July 1st. Also, the Michigan Tax Tribunal settled three cases in late 2008

which had a negative impact on the SmartZone budget. Approximately

$7800 in tax repayment was required, but because the City has been

dispersing 100% of captured revenues to OU INC each year, there was

not sufficient funding remaining to make full payment. The $2,300

shortfall will be extracted from the 2009 budget to offset this difference.

After internal discussions, it was agreed that a small percentage of the

annual dispersal (5%) will be held until early December. At that time, if

there are no reimbursement settlements to be repaid, we will send a

second dispersal for the balance to OU INCubator. They do not have any

concerns with this plan.

A motion was made by Mungioli, seconded by Polley, that this matter be

Approved.

The motion CARRIED by the following vote:

Aye

Brantley, Slavik, Mungioli, Polley, Pawlowski and Mull

6 -

Absent

Damone, Ellis, Golden, Winnie, Muczynski, Reno and Patterson

7 -

2009-0138

Authorization to Approve Preliminary Engineering Contract for

Technology Drive.

Mr. Casey commented that this Board has stated many times that the

Technology Drive connection to Adams Road was its number one objective. The

City has received approval to proceed with this connection from the Michigan

Department of Transportation and the Federal Highway Administration, subject

to MDOT’s review and approval of the road design. The Engineering

Department has initiated the effort to begin the project by doing preliminary

engineering. Mr. Davis explained the $30,295 proposal from Hubbell, Roth &

Clark to complete the preliminary engineering. Mr. Davis feels the proposal is

fine and asked for approval from the LDFA so that it can be presented for

Council approval. Mr. Casey then explained that for the last few years, the

Board has authorized City Administration to take the lead and manage the

projects.

MOTION by Pawlowski, supported by Brantley,

Whereas the Rochester Hills Local Development Finance Authority approved its

2007 Amended Development and Financing Plan on October 4, 2007; and

Whereas Project 4 in the 2007 Amended Development and Financing Plan is the

proposed connection of Technology Drive to the newly constructed Adams

Road; and

Whereas Hubbell, Roth & Clark, Inc. is an approved contractor of the City of

Rochester Hills and has developed a proposal at the City’s request to conduct

the preliminary engineering for Project 4; and

Whereas the estimated cost of Project 4, as determined by the City’s

Engineering Department, is $135,000.

Be It Resolved to recommend that the Rochester Hills City Council approve the

contract with Hubbell, Roth & Clark, Inc. to complete the preliminary

engineering for Project 4, the Technology Drive connection to Adams Road, in

an amount not to exceed $30,295; and

Be It Further Resolved to authorize City Administration to oversee and manage

the project through completion and provide periodic updates to the Rochester

Hills Local Development Finance Authority.

A motion was made by Pawlowski, seconded by Brantley, that this matter be

Approved.

The motion CARRIED by the following vote:

Aye

Brantley, Slavik, Mungioli, Polley, Pawlowski and Mull

6 -

Absent

Damone, Ellis, Golden, Winnie, Muczynski, Reno and Patterson

7 -

2009-0139

Executive Director Salary Compensation

Due to fiscal constraints, City Administration is seeking means of

decreasing General Fund expenditures in the 2010 budget. Mr. Casey

stated he suggested that as chief administrator of the LDFA, it would be

reasonable for the LDFA to fund up to 50% of his salary and benefits. As

Ms. Mungioli has another meeting and must leave, she expressed

concern with the City coming back to this Board to fund other issues when

the money should be spent in the technology parks. If the LDFA is going

to start paying 50% of Mr. Casey’s wages, will the Board have to review

and approve his timesheets - what about performance reviews? Mr.

Casey said it’s difficult to differentiate LDFA time from other time because

an executive director will try to promote and create economic

development opportunities in the parks - which is his full-time job. Mr.

Casey then explained he is aware that the LDFA budget can’t be drained

to the extent that it can no longer fund public infrastructure projects. That

is why the M59 Corridor Study and the Master Infrastructure Plan update

are being undertaken - so we can complete a 10-year analysis of future

potential infrastructure projects. Other Board members agreed that

because Mr. Casey oversees LDFA projects, that his salary should come

from the LDFA budget. It was also suggested that the salary other staff

working on these projects could come from the LDFA budget. Mr. Casey

commented that when the LDFA was established, the City chose not to

hire an executive director. Because we are already providing these

functions, and we have for years, it makes sense that the LDFA now begin

to fund some of the expenses.

This matter was Accepted

2009-0140

CoStar Database Subscription Discussion

Mr. Casey explained the City uses a real estate database developed by

an outside source at no cost. Planning staff maintains that database on a

quarterly basis. Although a valuable tool, the database does not provide

real estate information outside of Rochester Hills. City Administration

has received a proposal from CoStar to license its real estate database

for a monthly fee of $417, or $5,004 annually. The CoStar database

includes listings of all buildings available for sale or lease in Oakland

County, and information on tenants located in buildings. It also has

reporting capabilities allowing staff to customize site search reports. The

cities of Auburn Hills, Southfield and Troy subscribe to the CoStar

database. The staff does not have a recommendation regarding this

proposal. CoStar’s database would be a valuable tool, but is costly;

however LDFA’s marketing funds could be used to pay for the

subscription. More discussion at a future meeting is warranted.

This matter was Discussed

UNFINISHED BUSINESS

2008-0355

Entranceway Grant Program Discussion

The Board has been apprised in previous meetings regarding the City’s

interest in supporting the business parks in the SmartZone area when

they want to replace their signage. As some of these signs are

sub-standard, the possibility of using LDFA funds to supplement (as a

grant) signage projects was discussed. Mr. Casey is seeking the Board’s

approval and authorization to proceed to the next step, i.e., to amend the

LDFA Plan to add this as a project. Ms. Barnett-Harrison summarized

the program proposal and application. The purpose of this program is to

encourage commercial building owners to invest in entranceway signage

and landscaping upgrades by providing grants to cover some of the

renovation costs. The program will begin January 1, 2010 and continue

through the end of the year. Business parks within the LDFA district are

the eligible properties, and the grants will be approved on a case-by-case

basis. The grant application will come back to the LDFA for approval. A

budget amount for this program has not been entered as the Board can

determine this later in the year when the budget is prepared. Mr. Casey

feels $19,000 would be sufficient. Also, on page 2 - Eligible

Improvements - add “without obtaining a right-of-way permit” at the end of

the first paragraph.

MOTION by Brantley, supported by Mull

Whereas the Rochester Hills Local Development Finance Authority

believes that well-designed corporate entranceways to industrial and

technology parks in the District provides immeasurable benefits,

including marketing the parks and providing a visual aesthetic that

enhances image; and

Whereas visually identifying those parks that are located within the

Rochester Hills SmartZone provides strategic and competitive

advantages to the City and businesses that locate in them; and

Whereas Public Act 281, of 1986, provides that marketing the District is

an eligible expense of the Authority.

Be It Resolved to authorize staff and City Administration to initiate an

amendment of the Local Development Finance Authority’s Development

and Financing Plan in order to incorporate the Entranceway Grant

Program as a new project.

A motion was made by Brantley, seconded by Mull, that this matter be Approved.

The motion CARRIED by the following vote:

Aye

Brantley, Slavik, Mungioli, Polley, Pawlowski and Mull

6 -

Absent

Damone, Ellis, Golden, Winnie, Muczynski, Reno and Patterson

7 -

2009-0043

Austin Ave./Devondale Construction Update

Mr. Casey stated that all the right-of-way associated with Austin has been

acquired. There is only one section still to be acquired on Devondale.

This matter was Discussed

ANY OTHER BUSINESS

There was no further business to come before the LDFA Board.

NEXT MEETING DATE

The Chair reminded the Board that the next Regular Meeting was scheduled for

July 9, 2009.

ADJOURNMENT

Chairperson Slavik adjourned the LDFA Regular Meeting of April 2, 2009 at

9:10 a.m.

Respectfully submitted,

__________________________________

STEPHAN SLAVIK, Chairperson

Local Development Finance Authority