HomeMy WebLinkAbout2018 LEDC minutesLansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, January 12, 2018 - 8:30 a.m.
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201, Lansing, MI 48910
Members Present:
Members Absent:
Temp Members Present:
Staff Present:
Guests:
Public Present:
Recorded by:
Call to Order
Andrea Ragan, Pierre LaVoie, Mayor Andy Schor,
Blake Johnson, Tom Donaldson, Calvin Jones
James Butler III, Shelley Davis, Kimberly Coleman
None
Karl Dorshimer, Marchelle Smith, Joe Carr,
Tony Willis, Kris Klein
Samantha Harkins, City of Lansing
Brian McGrain, City of Lansing
Sagar Sheth, Mobeius Technologies
Janet Michaluk, State of Michigan
Tedi R. Parsons, LEAP
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to
order at 8:37 a.m. Chair Ragan provided a special welcome to Mayor Andy Schor and
his team. Mayor Schor provided introductions of his team (Samantha Harkins & Brian
McGrain) and remarked he is honored to be here and be part of the LEDC Board of
Directors.
Chair Ragan advised there was an amendment to today's agenda (Other Business) and
noted the updated packets are on the table. She asked Parsons to conduct rollcall.
Rollcall was completed.
Motion: Jones moved to accept and approve the amended Friday, January 12,
2018 LEDC Meeting agenda with a change to Other Business. Motion
seconded by LaVoie.
Yeas: Unanimous. Motion carried.
Presentation by Mobeius Technologies
Dorshimer provided an overview of the loan the LEDC Board approved in 2009 for
Mobeius Technologies. He introduced Sagar Sheth, President & CEO, Mobeius
Technologies who provided a presentation. The following was noted during his
presentation:
• Founded the company in 2007 with his partner Cory Weber
• Company originally was called XYZ Machine & Tool
• Overview/ testimony of how the loan from the LEDC and with LEAP's
assistance, helped to ensure the company could continue its operations
• Moved company from Cedar Street to their current location on Willow Street
• Company continues to grow and looks forward to another great year (2018)
A discussion took place regarding the missing talent for skilled trades and those in the
engineering fields here in the metro -Lansing region. Mayor Schor noted that we need
to challenge our schools and business owners to get tomorrow's talent on the
manufacturing floors of Lansing owned businesses. Mayor Schor noted we need to do
a better job of sharing our success stories.
Application for LEDC Loan - Mr. Taco Restaurant (ACTION)
Dorshimer provided a brief overview of the proposed loan application for Mr. Taco
Restaurant advising this is a business located on MLK in South Lansing. He
introduced Pierre LaVoie, who provided an overview of the loan application. LaVoie
noted the LEDC Loan Subcommittee met recently and all agreed to move this loan
forward and present to the full board for approval. Mayor Schor noted that he is in
full support of this loan, as we need to get more invested in our business corridors.
Discussion ensued.
Motion: Mayor Schor moved to approve the $ 15,000 Micro -Loan for Mr. Taco
Restaurant, to be paid over the next five -years as presented and place on
file. Motion seconded by LaVoie.
Yeas: Four (4) - Chair Ragan, Mayor Schor, LaVoie, Jones, Johnson. Motion
carries.
Abstain: One (1) - Donaldson.
Nays: Zero (0)
Approval of LEDC 2017 Board Meeting Minutes - Friday, December 8, 2017
Chair Ragan presented the Friday, December 8, 2017 LEDC Board of Directors
Meeting minutes for approval. Parsons noted there were two changes: UDAG Report
and Open Forum for LEDC Members. He advised these changes will be made and the
meetings kept on file.
Motion: Jones moved to approve the LEDC meeting minutes with changes noted
by Parsons from the Friday, December 8, 2017 LEDC Board of Director's
meeting. Motion seconded by Johnson.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending November 30, 2017
Smith provided an overview of the DRAFT LEDC Financial Statements, period ending
November 30, 2017. She noted that we are finishing up this month on a positive note.
Smith provided an overview of the Statement of Activities. Discussion ensued on
subsidies for The Runway incubator program.
Motion: LaVoie moved to receive the LEDC Financials, period ending November
30, 2017, as presented and place on file. Motion seconded by Donaldson.
Yeas: Unanimous. Motion carried.
2
UDAG Report - Period Ending November 30, 2017
Smith provided a history and overview/update on the UDAG funds for the period
ending November 30, 2017. She noted this report is provided to the LEDC Board of
Directors for informational purposes.
The Runway Lansing (Update)
Dorshimer provided the history of The Runway Lansing fashion incubator located in
the historic Knapp's Building in downtown Lansing. He reintroduced Joe Carr, Startup
Innovation Manager, LEAP and Meleena Herring, The Runway Lansing, who provided
an update on The Runway Lansing. Carr and Herring noted the following during their
presentation:
• Lansing Community College (LCC) ending their sublease agreement with
the LEDC, as they are ending their fashion program
• New tenant signed: Monica Clark, H&S Bags
• Currently working on creating a `Brag Book'
• Update on the next Lansing Runway Subcommittee to be scheduled soon
Project Updates
The Wind: This large-scale mixed-use project is picking -up speed and will report back
progress made at a future meeting.
Other Business
Chair Ragan noted the added agenda item included a brief presentation by Tony Willis,
LEAP - New Economy Division. Dorshimer introduced Willis who provided a
presentation on a new microloan program called Kiva that LEAP and the City of
Lansing are considering being part of. He noted that this is zero percent interest loans
at a 36 -month term. These 0%, $10,000 loans are determined both by financial and
social underwriting to determine the borrower's creditworthiness. A handout was
distributed explaining the Kiva loan program. Harkins noted the Mayor's office is very
much in support of this new program. Willis will present a proposal at the next LEDC
Board of Directors meeting.
Open Forum for LEDC Board Members
Chair Ragan: Reminded the LEDC Board that the Annual Meeting & Election of
Officers will take place at the next meeting on Friday, February 2, 2018. She
encouraged everyone to attend.
LaVoie: Announced he is beginning a new position with Trivalent beginning on
January. 22, 2018. His office will be located in East Lansing, MI.
Donaldson: LCC offers an onsite program: Small Business - Big Threat Cyber Security
for small businesses to learn more about cyber -security.
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3
Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned
at 9,56 a.m.
l arl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
21
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, February 2, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present: Andrea Ragan, James Butler III, Blake Johnson,
Shelley Davis, Calvin Jones, Mayor Andy Schor,
Thomas Donaldson
Members Absent: Kimberly Coleman, Pierre LaVoie
Temp Members Present: None
Staff Present: Karl Dorshimer, Marchelle Smith, Kris Klein, Joe Carr,
Tony Willis, Meleena Herring
Guests: Denise Peek, Entrepreneur Institute of Mid -Michigan
Samantha Harkins, City of Lansing
Brian McGrain, City of Lansing
Julie Lawton -Elsa, Y -Site LLC
Eric Helzer, Advance Development Solutions
Janet Michaluk, State of Michigan
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to
order at 8:37 a.m. Chair Ragan asked Parsons to complete rollcall. Rollcall was called
and recorded. Parsons noted the agenda has been Amended to reflect the correct
name and Action item for the presentation by Denise Peek, The Entrepreneur Institute of
Mid -Michigan.
Presentation by Denise Peek - Entrepreneur Institute of Mid -Michigan
Dorshimer reintroduced Denise Peek, Executive Director, Entrepreneur Institute of Mid -
Michigan, who provided an annual update on the $25,000 loan guaranty agreement
from the LEDC. Peek advised two loans are currently behind due to loanee illness, but
she is working closely with these loan recipients. Discussion ensued. Donaldson noted
that he has worked with Peek for many years and this organizations funding is needed
and important to small startup businesses here in Lansing.
Motion: Butler moved to approve the 2018 Loan Guaranty Agreement between
the City of Lansing/LEDC and the Entrepreneur Institute of Mid -Michigan,
as presented. Motion seconded by Donaldson.
Yeas: Unanimous. Motion carried.
Meeting adjourned: 8:51 AM
Meeting reconvened: 9:15 AM
Meeting adjourned: 10:00 AM
Meeting reconvened: 10:1 1 AM
The Runway Lansing (Update)
Dorshimer reintroduced Joe Carr and Meleena Herring, Runway Lansing, who provided
an update. The following points of interest were noted during the presentation:
• Introduction and presentation by Devon Bradley, Belle Row Boutique
• Update on LCC's fashion program ending and no longer a tenant of The
Runway Lansing
• Update on The Runway Lansing subcommittee meeting
• Discussion on talks with MSU's fashion program
• Noted this will mean a $25,000 loss from the end of the LCC lease
• Currently using UDAG funds to subsidize the Lansing Runway initiative
Chair Ragan provided an overview of the recent Lansing Runway Subcommittee
meeting advising they had in-depth and thorough discussion and came up with two
priority items: 1) locate a replacement tenant for the loss of LCC and 2) locate a new
tenant to take over the lease. Johnson requested the Runway Lansing Subcommittee
keep the LEDC board updated as developments take place. Discussion ensued.
2018 3-D License Agreement (Action)
Dorshimer provided a brief overview of the 3-D Printer License Agreement and asked
Carr to provide an update. Carr advised that no monies were made in 2017 for 3-D
printing services. Discussion ensued.
Motion: Jones moved to approve the 2018 3-D License Agreement between the
City of Lansing/LEDC and LEAP, Inc., as presented. Motion seconded by
Donaldson,
Yeas: Seven (7) - Chair Ragan, Butler, Donaldson, Mayor Schor, Davis, Johnson,
Jones. Motion carries.
Nays: Zero (0)
Abstain: Zero (0)
Fund Lansing/Kiva Loan Program (Action)
Dorshimer reintroduced Tony Willis, LEAP, New Economy Division, who provided an
overview of Fund Lansing/Kiva Loan Program, as first introduced at the January 2018
LEDC Board of Directors meeting. Willis provided a handout and advised this new loan
program will be available to small business within the City of Lansing. Harkins noted that
the City of Lansing (Mayor Schor) is very interested and supports this new loan program.
Discussion ensued.
Motion: Jones moved to approve the use of up to $50,000 of Lansing Kiva UDAG
funds to match small business loans made within the City of Lansing, as
presented. Motion seconded by Donaldson.
Yeas: Five (5) - Chair Ragan, Butler, Donaldson, Davis, Jones. Motion carries.
Nays: Zero (0)
Abstain: One (1) - Johnson
Approval of LEDC Board Meeting Minutes - Friday, January 12, 2018
Motion: Johnson moved to approve the LEDC meeting minutes from the Friday,
January 12, 2018 LEDC Board of Director's meeting. Motion seconded by
Jones.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending December 31, 2017
Smith provided an overview of the LEDC Financial Statements, period ending
December 31, 2017, noting there were no issues to advise on. Discussion ensued.
Motion: Donaldson moved to receive the LEDC Financials, period ending
December 31, 2017, as presented and place on file. Motion seconded by
Johnson.
Yeas: Unanimous. Motion carried.
UDAG Report - Period Ending December 31, 2017
Dorshimer provided an overview/update on the UDAG funds for the period ending
December 31, 2017. He noted there were no issues to report. Discussion ensued.
LEDC Board of Directors Election
Chair Ragan advised as this is the LEDC's Annual Meeting, the election of officers for
2018 should take place. She turned the floor over to Nomination Committee Co -Chair,
Davis, who thanked everyone for their participation in the election of officers. Davis
asked Parsons to handout the sealed election ballots to the board. Parsons handed
out the ballots and then tallied and provided the results of the election.
Motion: Donaldson moved to approve the amended 2018 LEDC Board of
Directors Officer Slate as presented. Motion seconded by Davis.
Yeas: Unanimous. Motion carried.
The following board members were elected to serve as officers on the 2018 LEDC Board
of Directors (terms effective January 1, 2018):
• Choir- Andrea Ragan
Vice -Chair- James Butler, III
• Treasurer -Blake Johnson
• Secretary - Calvin Jones
3
Other Business
None.
Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at
10:14 a.m.
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Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
M
LANSING ECONOMIC DEVELOPMENT CORPORATION
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Lansing Economic Development
Corporation (LEDC), Lansing, Michigan, held on Friday, February 2, 2018 at 8:30 a.m., pursuant
to notice duly given:
MEMBERS PRESENT: Chair Andrea Ragan, Blake Johnson, Shelley Davis, Calvin Jones,
Thomas Donaldson
MEMBERS ABSENT: Mayor Andy Schor, James Butler III, Kimberly Coleman,
Pierre LaVoie
The following preamble and resolution was offered by;
MEMBER: Jones, and seconded by
MEMBER: Donaldson
WHEREAS, the Lansing Economic Development Corporation (LEDC) of the City of Lansing
desires to enhance its' ability to provide small business financing to entrepreneurs; and
WHEREAS, the Lansing Economic Area Partnership (LEAP) has created the Fund Lansing
program to use the global online crowdlending platform Kiva to leverage more funding for
startup businesses; and
WHEREAS, the LEDC intends to partnerwith LEAP to enhance the Fund Lansing program for
small business loans made within the City of Lansing.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LANSING ECONOMIC
DEVELOPMENT CORPORATION RESOLVES AS FOLLOWS
The Lansing Economic Development Corporation (LEDC) Board of Directors approves
allocating up to $50,000 of UDAG funds into a revolving fund to be used as match for Lansing
based applicants of the Fund Lansing and Kiva crowdlending programs.
Furthermore, such matching loan funds shall be made available by the LEDC on a case by case
basis and only with the prior approval by the LEDC Loan Committee and LEDC Board.
Lastly, for any single Fund Lansing and Kiva crowdlending loan applicant, the matching LEDC
UDAG funds offered shall not exceed the lower of the following two values: $5,000.00 or 50% of
the total loan amount.
YEAS: Four (4)
NAYS: Zero (0)
ABSTENTIONS: One (1)
ABSENT: Four (4)
RESOLUTION DECLARED ADOPTED
STATE OF MICHIGAN )
)SS.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a
regular meeting of the Lansing Economic Development Corporation (LEDC), held on
Friday, February 2, 2018, and said resolution is on file in the office of the Lansing
Economic Development Corporation (LEDC), and is available to the public. Public notice
of the said meeting was given pursuant to and in compliance with Act No. 267, Public Acts
of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting.
In addition, said meeting was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature.
Andrea Ragan, C air
LEDC Board of Director
Friday, February 2, 2018
Date
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, March 2, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present: Andrea Ragan, Calvin Jones, Blake Johnson,
Mayor Andy Schor, Kimberly Coleman, Pierre LaVoie
Members Absent: James Butler III, Thomas Donaldson, Shelley Davis
Temp Members Present: None
Staff Present: Karl Dorshimer, Marchelle Smith, Kris Klein, Joe Carr,
Meleena Herring
Guests: Brian McGrain, City of Lansing
Brian Lefler, Robert E. Baird Co.
Janet Michaluk, State of Michigan
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to
order at 9:22 a.m. Parsons noted the Friday, February 2, 2018 LEDC meeting minuets
have been amended to reflect the Motion on Page 2 for the Fund Lansing/Kiva
Program (Johnson - Abstain) and additional language was added under the 3-D
License Agreement.
Approval of LEDC Board Meeting Minutes - Friday, February 2, 2018
Motion: Coleman moved to approve the LEDC meeting minutes with
amendments made as noted by Parsons from the Friday, February 2, 2018
LEDC Board of Director's meeting. Motion seconded by LaVoie.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending January 31, 2018
Smith provided an overview of the LEDC Financial Statements, period ending January
31, 2018, noting that there are no issues to report at this time. Discussion ensued.
Motion: Jones moved to receive the LEDC Financials, period ending January 31,
2018, as presented and place on file. Motion seconded by Johnson.
Yeas: Unanimous. Motion carried.
IJDAG Report - Period Ending January 31, 2018
Smith provided an overview/update on the UDAG funds for the period ending January
31, 2018. She noted there were no changes from last month's UDAG Report and no
issues to report.
The Runway Lansing (Update)
Dorshimer reintroduced Joe Carr and Meleena Herring, Runway Lansing, who provided
an update. The following points of interest were noted during the presentation:
• Introduction of the DRAFT Runway Lansing Brag Book (handout provided)
• Update on the recent Runway Subcommittee Meeting
• The subcommittee is exploring moving The Runway to a business growth and
accelerator model that would no need the physical space that is now utilized in
the Knapp's building.
• Update on the subsidy the LEDC provides The Runway and what this means
going forward (meeting today with the landlord of The Runway Lansing space to
discuss the lease and next -steps)
Chair Ragan provided an update on the in-depth discussions that have been taking
place with The Runway Lansing subcommittee to ensure the best interests of the LEDC
and LEAP are both met. Coleman inquired if there were any plans for a 'Plan'? Chair
Ragan advised, yes, they continue work to bring a solid plan to the board for final
approval. Discussion ensued.
Fund Lansing Program (Update)
Dorshimer reintroduced Tony Willis, LEAP, who provided an update on the Fund Lansing
program, noting the following during his presentation:
• LEAP is hosting an intro -workshop next week with 14 registrations so for
• Have four (4) interested/active parties applying for the Fund Lansing loan
• Currently reviewing loan applications, which are reviewed by LEAP NED staff,
who also assist the applicants in the loan process
• Overview of the loan application and approval process
Project Updates
City Hall — Mayor Schor advised that discussion continues on this large-scale project.
Open Forum for LEDC Board of Directors
None.
Other Business
None.
Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at
9:47 a.m.
Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, April 13, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present:
Members Absent:
Temp Members Present:
Staff Present:
uests:
Public Present:
Recorded by:
Call to Order
Andrea Ragan, Calvin Jones, Blake Johnson,
Mayor Andy Schor, Kimberly Coleman, Shelley Davis,
Thomas Donaldson
James Butler III
None
Karl Dorshimer, Marchelle Smith, Kris Klein, Joe Carr
Brian McGrain, City of Lansing
Angela Bennett, City of Lansing
Eric Helzer, Advance Development Solutions
John Peckham, Advance Development Solutions
None
Tedi R. Parsons, LEAP
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to order
at 9:04 a.m.
Approval of LEDC Board Meeting Minutes - Friday, March 2, 2018
Motion: Coleman moved to approve the LEDC meeting minutes from the Friday,
March 2, 2018 LEDC Board of Director's meeting as presented. Motion
seconded by Davis.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending February 28, 2018
Smith provided an overview of the LEDC Financial Statements, period ending February 28,
2018, noting that the financials are close to the same as this time last year and are on track
with the current budget. She advised the LEDC is on target for both the general budget and
The Runway budget. Davis requested that page numbers be included on future financial
statements. Discussion ensued.
Motion: Davis moved to receive the LEDC Financials, period ending February 28,
2018, as presented and place on file. Motion seconded by Johnson.
Yeas: Unanimous. Motion carried.
The Runway Lansing (Update)
Dorshimer provided an update on The Runway Lansing and noted there is a Resolution
requiring the board's attention being presented today. He advised this Resolution is
necessary as there are changes that will occur on the lease agreement with the Eyde
Knapp Manager LLC (landlord at The Runway),
The Runway Subcommittee has met several times to discuss what necessary steps are
needed to reduce expenses at The Runway, which includes terminating the current lease
with the Eyde Knapp Manager LLC, with a $48,000 payment. Chair Ragan provided a brief
history of The Runway's history noting that there are a lot of success stories over the past
five -years, but it's time to move forward and streamline our processes and expenses. Jones
recognized LaVoie for his service on The Runway Subcommittee and they [Subcommittee]
all worked hard over the past year to come to this decision. Discussion ensued.
Motion: Jones moved to approve the Resolution to amend the FY 2017-2018 LEDC
Budget to, as presented and place on file. Motion seconded by
Donaldson.
Yeas: Unanimous. Motion carried.
LEDC FY 2018-2019 Budget (Action)
Dorshimer presented the LEDC Budget FY 2018-2019 for the LEDC board's approval. He
provided an overview of FY 2018-2019 budget noting that this year's budget shows an
increase of $30,000 for the City of Lansing contract and an increase in the City's Fapade
Improvement line -item, which shows an increase from $15,000 to $150,000 in the FY 2017-
2018 LEDC budget. Discussion ensued.
Motion: Johnson moved to approve the FY 2018-2019 LEDC Budget, as presented.
Motion seconded by Donaldson.
Yeas: Unanimous, Motion carried.
UDAG Report - Period Ending February 28, 2018
Smith provided an overview/update on the UDAG funds for the period ending February 28,
2018. She noted there were no changes from last month's UDAG Report and no issues to
report.
Project Updates
None.
Open Forum for LEDC Board of Directors
Johnson: Inquired how far does the City of Lansing limit extend to? McGrain noted that this
goes to the railroad tracks at Oakland and Saginaw (near the old GM site).
Johnson: Inquired about the past proxy discussion for the Mayor. Parsons noted that Steve
Owen, Foster -Swift, continues to look into this and will update at a future LEDC board
meeting.
Other Business & Public Comment
None,
Adjournment
There being no further business,; h it Ra n d c ed the LEDC meeting adjourned at 9:31
1;
a.m.�,/
Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
2
ECONOMIC DEVELOPMENT CORPORATION
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Economic Development Corporation of
the City of Lansing held on Friday, April 13, 2018 at 8:30 a.m., pursuant to notice duly
given:
Members Present: Andrea Ragan, Blake 'Christopher' Johnson, Calvin Jones,
Mayor Andy Schor, Kimberly Coleman, Shelley Davis,
Thomas Donaldson
Members Absent: James Butler III
The following preamble and resolutions were offered by:
Member: Jones seconded by:
Member: Donaldson
LEDC 2017-2018 Budget Amendment II:
WHEREAS, the Lansing Economic Development Corporation (LEDC) entered into a lease
agreement with Eyde Knapp Manager, LLC (Landlord) on September 26, 2012 for space in
the Knapp's Centre to create the Runway Fashion Business Incubator (Runway) in
downtown Lansing, and
WHEREAS, the Runway has been a remarkable success creating 24 businesses and 38
jobs over 4 years, and
WHEREAS, the LEDC Runway Sub -committee (Committee) has over this same time
provided guidance and direction to the Runway and LEDC Board, and
WHEREAS, the Committee has reviewed the Runway's current and projected operational
budgets and concluded that it is in the best interest of both the LEDC and the Runway to
reduce annual expenses by transitioning to a new business growth and acceleration model,
and
WHEREAS, moving to the new business growth and acceleration model eliminates the
need and expense of leasing the current Runway space, while providing an enhanced level
of business startup services and financing options to Lansing based businesses, and
WHEREAS, by making the above change, the LEDC and Runway can reduce annual
expenses substantially by ceasing all operations at the Knapp's Centre location and
terminating the current lease with the Landlord, and
WHEREAS, the Landlord has agreed to end the LEDC's lease effective June 30, 2018 for a
single payment of $48,942 per the attached Amendment to Lease (Amendment) document;
and
WHEREAS, the LEDC's attorney has reviewed the lease Amendment document and found
it to be satisfactory, and
WHEREAS, the Committee recommends the LEDC Board approve the lease Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING ECONOMIC DEVELOPMENT CORPORATION AS FOLLOWS:
The LEDC Board of Directors approves the Amendment to Lease agreement and directs
the LEDC Chair to enter into the agreement.
The LEDC Board of Directors also approves amending the 2017/2018 budget to add
$48,942 of Urban Action Development Grant (UDAG) funds from the UDAG fund balance to
meet the terms of the lease Amendment.
YEAS: Seven (7)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: One (1)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 131h day of April 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 13th day of April
2018.
aloin Jones, Secretary
Lansing Economic Development Corporation
Board of Director's Special Meeting Minutes
Thursday, May 17, 2018 - 11:00 AM
Via Conference Call
1-888-557-8511
Access Code: 4485570
Members Present: Andrea Ragan, Calvin Jones, Blake Johnson,
Mayor Andy Schor, Thomas Donaldson, Calvin Jones
Kimberly Coleman
Members Absent: James Butler III, Shelley Davis, Frederick Schaible
Temp Members Present: None
Staff Present: Karl Dorshimer, Marchelle Smith, Joe Carr
Guests: None
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors Special
Meeting to order at 11:13 a.m. She asked Parsons to conduct rollcall. Rollcall was
completed and placed on file.
Resolution to Approve the Service Proposal for Liquidation of Assets at The Runway
(Action)
Dorshimer reintroduced Joe Carr, LEAP, who provided an overview of a Resolution
being presented to the LEDC Board for their approval of the Service Proposal from
Kavanaugh & Hanks & Associates for liquidation of assets at The Runway. The following
points of interest were noted during the presentation:
The Runway Lease ends with the Eyde Company on June 30, 2018
The Runway Subcommittee received and reviewed three (3) separate proposals
for services to liquidate the assets at The Runway
Donaldson inquired about the language in the Kavanuagh & Hanks & Associates
Service proposal as it relates to the 'alternatively' 30% fee. Carr provided a breakdown
on the fee structure as outlined in the service proposal. Donaldson inquired whether
there would a staff member from LEAP/The Runway present during the sale of the
assets, Carr advised YES, he will be onsite, Discussion occurred over what happens with
the remaining assets (if not sold during the sale). Carr advised that as stated in the
Service Agreement, Kavanaugh & Hanks is responsible for liquidating all assets.
Motion: Donaldson moved to approve the Service Proposal for the Liquidation of
Assets at The Runway for Chair Ragan to sign, as presented. Motion
seconded by Coleman.
Yeas: Unanimous. Motion carried.
Resolution to Approve the Transfer of Equipment to Tenant of The Runway (Action)
Dorshimer provided an overview of the Resolution being presented for approval of the
transfer of equipment (as listed in the attached Resolution) to Runway tenant, Kaitlyn
Slack. Discussion ensued over the language in the Resolution for the timeline of the
tenant moving the equipment out of The Runway and moving within the City of
Lansing. Chair Ragan suggested new language be added that states: including a
specific timeline the tenant will be vacating The Runway and when she will be
operating (doing business) in the City of Lansing. Dorshimer suggested adding
additional language that she cannot sell the equipment within two -years and must be
operational and providing services to Runway clients (as agreed upon) within 90 -days
(of June 30, 2018).
Motion: Coleman moved to approve the Resolution to Transfer Equipment (as
outlined in the attached Resolution) to a tenant at The Runway, as
presented with the additional language added, as noted in the meeting
minutes. Motion seconded by Johnson.
Yeas: Unanimous. Motion carried.
Project Updates
None.
Open Forum for LEDC Board of Directors
Jones: Invite to attend the Governors Community Service Awards taking place on June
5, 2018 at The Wharton Center to celebrate LBWL's award.
Other Business
None.
Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC Special Meeting
adjourned at 11:29 a.m.
K I Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
10
LANSING ECONOMIC DEVELOPMENT CORPORATION (LEDC)
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a Special Meeting of the Lansing Economic Development Corporation (LEDC) Board of
Directors of the City of Lansing held on Thursday May 17, 2018 at 11:00 a.m., pursuant to
notice duly given:
MEMBERS PRESENT: Andrea Ragan, Calvin Jones, Blake Johnson,
Mayor Andy Schor, Kimberly Coleman, Thomas Donaldson
MEMBERS ABSENT: James Butler III, Shelly Davis, Frederick Schaible
The following preamble and resolutions were offered by:
MEMBER: Coleman seconded by:
MEMBER: Johnson
WHEREAS, the Lansing Economic Development Corporation (LEDC) Board of Directors
approved at its regularly scheduled meeting on Friday, April 13, 2018 a Lease Amendment
Agreement between the LEDC and the Eyde Knapp Manager, LLC that terminated the LEDC's
current lease for space in the Knapp's Centre effective June 30, 2018, and
WHEREAS, the termination of the LEDC lease will require designer and long-term Runway
tenant, Kaitlin Slack, Bad Latitude ("Tenant"), to relocate out of The Runway to another location,
and
WHEREAS, The Runway (LEDC) has an on-going lease commitment to the Tenant that
extends beyond June 30, 2018, and
WHEREAS, that LEDC would like to assist the Tenant with their successful graduation out of
The Runway and into a new space located in the City of Lansing.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE LANSING
ECONOMIC DEVELOPMENT CORPORATION AS FOLLOWS:
The LEDC Board of Directors approves the donation of the following Runway equipment to the
Tenant: one 4 -thread Serger sewing machine, one cover -stitch sewing machine, one single
needle sewing machine, one gravity fed iron, two dress forms, and two display racks;
conditional upon the Tennant entering into a written agreement with the LEDC to meet the
following conditions:
FURTHER, the Tenant must vacate The Runway and remove the equipment, as noted above,
on/or before June 30, 2018, at their own risk and cost. Tenant agrees to be fully operational at
an alternative location in the City of Lansing within 90 -days of June 30, 2018. Additionally, the
Tenant agrees to continue to provide on-going services to The Runway and its clients in the
amount of $5,000. The Tenant cannot sell the equipment for a term of at least two -years
beginning June 30, 2018.
YEAS: Six (6)
NAYS; Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Three (3)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 17th day of May 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's By -Laws,
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 17`h day of May
2018.
hair Andrea Ragan
Thursday May 17 2018
Date
ECONOMIC DEVELOPMENT CORPORATION
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a Special Meeting of the Lansing Economic Development Corporation (LEDC) Board of
Directors of the City of Lansing held on Thursday, May 17, 2018 at 11:00 a.m., pursuant to
notice duly given:
MEMBERS PRESENT: Andrea Ragan, Blake Johnson, Mayor Andy Schor,
Kimberly Coleman, Thomas Donaldson
MEMBERS ABSENT: James Butler III, Calvin Jones, Shelley Davis,
Frederick Schaible
The following preamble and resolutions were offered by:
MEMBER: Donaldson , seconded by:
MEMBER: Coleman
WHEREAS, at their regularly scheduled meeting on Friday April 13, 2018, the Lansing
Economic Development Corporation (LEDC) Board of Directors approved a Lease
Amendment Agreement between the LEDC and Eyde Knapp Manager, LLC that terminated
the LEDC's current lease for space in the Knapp's Centre effective June 30, 2018, and
WHEREAS, because of the lease termination, The Runway will no longer need certain
assets as listed in the attached Inventory List for non -depreciating assets (Attachment A)
and for depreciated assets (Attachment B), and
WHEREAS, the LEDC Runway Subcommittee has determined the best course of action is
to liquidate the The Runway's assets, and return the funds generated by this action to the
Urban Development Action Grant (UDAG) fund balance, and
WHEREAS, the LEDC Runway Subcommittee received three proposals from liquidation
companies and selected the best proposal as discussed by the LEDC Board of Directors on
Friday, May 4, 2018.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING ECONOMIC DEVELOPMENT CORPORATION AS FOLLOWS:
The LEDC Board approves the liquidation services proposal submitted by Kavanagh, Hanks
& Associates and directs the LEDC Chair to enter into the Liquidation Agreement
(Attachment C).
YEAS:
Five (5)
NAYS:
Zero (0)
ABSTENTIONS:
Zero (0)
ABSENT:
Four (4)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 17'h day of May 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 171h day of May
2018.
hair Andrea Ra n
Thursday May 17, 2018
Date
Attachment A: Non -Depreciating Assets
Attachment B: Depreciated Assets
Attachment C: Liquidation Agreement
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, May 4, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present: Andrea Ragan, Calvin Jones, Blake Johnson,
Mayor Andy Schor, Kimberly Coleman, Shelley Davis,
Thomas Donaldson, Fred Schaible
Members Absent: James Butler III
Temp Members Present: None
Staff Present: Karl Dorshimer, Marchelle Smith, Kris Klein, Joe Carr
Guests: Brian McGrain, City of Lansing
Janet Michaluk, State of Michigan DEQ
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to order
at 8:35 a.m. She asked Parsons to conduct rollcall. Rollcall was completed and recorded.
Welcome New LEDC Board Member - Frederick Schaible
Chair Ragan introduced the newest member to the LEDC Board of Directors, Frederick
Schaible, advising he was appointed by Mayor Andy Schcr advised Schaible was vetted by
City Council on Monday, April 23, 2018. Introductions were made around the table.
Recognition of Pierre LaVoie - Service to LEDC Board of Directors
Chair Ragan reintroduced Pierre LaVoie and presented him with an award for his years of
service to the City of Lansing and LEDC Board of Directors. LaVoie noted that serving on
the LEDC Board of Directors has been a great honor and he is deeply appreciative of
receiving this award,
Approval of LEDC Board Meeting Minutes - Friday, April 13, 2018
Motion: Jones moved to approve the LEDC meeting minutes from the Friday, April 13,
2018 LEDC Board of Director's meeting as presented. Motion seconded by
Johnson.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending March 31, 2018
Smith provided an overview of the LEDC Financial Statements, period ending March 31,
2018, noting that the financials are on -track and there are no significant issues to support.
Donaldson inquired when the payoff to the Eyde Company for The Runway lease will show
in the financials. Smith advised this would show in the April 2018 LEDC Financials. Discussion
ensued.
Motion: Davis moved to receive the LEDC Financials, period ending March 31, 2018,
as presented and place on file. Motion seconded by Coleman,
Yeas: Unanimous, Motion carried.
UDAG Report - Period Ending March 31, 2018
Smith provided an overview/update on the UDAG funds for the period ending March 31,
2018. She noted that she added the Budget Amendment for The Runway, as approved at
the Friday, April 13, 2018 LEDC Board of Directors meeting. Smith provided a brief overview
of how the UDAG funds began and are distributed.
The Runway Lansing (Action)
Chair Ragan provided an update/overview on The Runway Lansing and reintroduced Joe
Car, who advised he had met with three liquidation companies, who have provided RFPs.
Carr noted that today, he is requesting the LEDC Board to approve the sale of the assets at
The Runway Lansing (authorizing Chair Ragan to enter into a Service Agreement with
Kavangah & Hanks & Associates). Carr also provided an update on the current tenants at
The Runway and requested the LEDC Board of Directors approve donating specific pieces
of equipment to one current Runway tenant who holds a long-term lease. Ragan noted
that the Runway Subcommittee recommends accepting the proposed Service Agreement
with Kavangah & Hanks & Associates and to donate the specific equipment to the Runway
Tenant. Discussion ensued.
It was agreed upon by the LEDC board to postpone the approval of authorizing Chair
Ragan to enter into the Service Agreement to liquidate all assets at The Runway Lansing.
The vote to authorize this Motion will take place electronically on/or before Friday, May 11,
2018.
Further, the LEDC Board of Directors agreed to postpone authorizing Chair Ragan to enter
into a Service Agreement with the current Runway tenant to approve donating specific
pieces of equipment to one current Runway tenant who holds a long-term lease. The votes
to authorize these two Action items will take place electronically on/or before Friday, May
1 1, 2018.
ACTION ITEM: Carr to provide Parsons with two (2) documents: Liquidation Service
Agreement and Tenant Service Agreement to Parsons by Wednesday, May 9, 2018 @ Noon.
Parsons to forward to LEDC Board of Directors before 2:00 PM on Wednesday, May 9, 2018.
City of Lansing CDBG Fagade Improvement Program (Presentation)
Dorshimer provided a brief overview of the City of Lansing's CDBG Fapade Improvement
Program and reintroduced Kris Klein, LEAP, who provided a brief summary of the program,
noting the following during his presentation:
• Focus for this faqade improvement program will have a focus on SW Lansing to use
$80,000 from the Community Development Block Grant (CDBG) funds
• The City of Lansing is seeking to enter into a Grant Agreement (Agreement) with the
LEDC for the management of this program
• $80,000 is available for this program w/$72,000 dedicated to matching grants and
$8,000 for program delivery
• Overview of Opportunity Zones (Opportunity Funds from the IRS) seven (7)
designated areas in the City of Lansing
2
LEDC Board will be presented with three (3) future Action Items:
o Approval to enter into the Agreement with the City of Lansing to implement
the CDBG Fagade Improvement Program
o Approval of Sub -Agreement for Program Delivery with subcontractor for the
contract amount of $8,000
o FY 2018-2019 LEDC Budget Amendment for program delivery will take place
Discussion occurred over how the monies being invested into the properties that take
advantage of this program will be used. Mayor Schor provided an update on the struggles
the City's Zoning Department has encountered during the process, but they continue to
work hard to get these resolved.
Project Updates
The Wing: This large-scale continues to move forward. An application will be submitted for
Brownfield Monies through the State's DEQ.
REO Gateway: This project is moving forward and hoping to break ground in mid-to-late
October 2018.
Lake Trust Building: Urban Systems purchased this large building and hope to get a
Brownfield Plan in place in the next few months. This will be a mixed-use building/ project.
Granger Group: This is a large-scale, tall mixed-use project coming to downtown Lansing
(including a hotel, retail and residential).
YMCA Project: This project is moving forward and waiting for HUD to approve their final loan
application request. $400,000 Brownfield funds will be used on this project to help with
clean-up of the property. These funds will be recaptured through taxes.
Tecomet: Is expanding, buying new equipment and moving into another building on
Enterprise Drive, which will bring over 160 good paying jobs.
Sleepwalker Spirits & Ale: Moving forward with their project here in REO Town and hope to
open soon. They will be hosting a future LEDC Board of Directors meeting.
Dunkle Road Project: This large-scale project will require approval from the LBRA Board of
Directors for their Brownfield Plan. Mayor Schor advised they are in discussions with the
developers to create a welcoming look/fagade as an entry point to the City of Lansing.
Mr. Taco: Mayor Schor noted that they are open (drive-thru and some walk-ins), but there
has been some complications with traffic flow and the number of cars coming through the
drive-thru. The City has introduced the owners to Capital Area Michigan Works! to assist with
securing talent,
Open Forum for LEDC Board of Directors
Jones: Would like to recommend that companies we [LEDC] invest in, are required to put
something back into the community. Discussion ensued.
Donaldson: Local manufacturing plant looking to move into the Lansing region who is
looking for site location assistance and potentially meeting with the LEDC board for a loan.
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at 9:58
a.m,
rl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
4
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, June 1, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present: Andrea Ragan, Calvin Jones, Blake Johnson,
James Butler III, Kimberly Coleman, Thomas Donaldson,
Fred Schaible
Members Absent: Mayor Andy Schor, Shelley Boyd
Temp Members Present: None
Staff Present: Karl Dorshimer, Kris Klein, Joe Carr
Guests: Steven Owen, Foster -Swift
Eric Helzer, Advance Redevelopment Solutions
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to order
at 8:32 a.m. She asked Parsons to conduct rollcall. Parsons noted that a Resolution for the
CDBG Facade Improvement Grant -Loan Program contract with Revitalize LLC is included
with today's packet. Rolicall was completed and recorded.
Approval of LEDC Board Meeting Minutes - Friday, May 4, 2018
Motion: Jones moved to approve the LEDC meeting minutes from the Friday, May 4,
2018 LEDC Board of Director's meeting as presented. Motion seconded by
Schaible.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending April 30, 2018
Dorshimer provided an overview of the LEDC Financial Statements, period ending April 30,
2018, noting that the financials are on -track and remain strong. Discussion ensured.
Motion: Butler moved to receive the LEDC Financials, period ending April 30, 2018,
as presented and place on file. Motion seconded by Johnson.
Yeas: Unanimous. Motion carried.
U DAG Report - Period Ending April 30, 2018
Dorshimer provided an overview/update on the UDAG funds for the period ending April 30,
2018. A brief history offhe UDAG was provided by Dorshimer for new LEDC Board Members
and guests. Discussion ensued.
2018-2019 LEDC & City of Lansing Contract (Action)
Dorshimer provided a brief overview of the 2018-2019 LEDC & City of Lansing contract. He
reintroduced Steven Owen, Foster -Swift, who advised on the following:
• Noted that the City of Lansing has not yet responded to the "Save Harmless"
Clause on Page 11 of the agreement. He has no expectation that the City
Attorney's office will accept this clause.
• Advised the Chair of the LEDC Board hold -off on signing the current contracts
until the final contracts from the City of Lansing, with any changes has been
provided. Also, advised the contracts could be signed at a later date by means
of a Special Meeting. He noted all contracts must be signed on/or before June
30th.
• Overview of the history of the Indemnification/Save Harmless clause/language
that was put in the contracts between LEAP and the LEDC and the City of
Lansing a few years ago.
• Provided an overview of the City of Lansing and LEDC contract language on
Page 11: 16. "Save Harmless" Clause, means and why this was written this way.
• Provided an overview of the LEDC and LEAP contract language on Page 12-13:
17. "Save Harmless" Clause, means and why this was written this way.
• Discussion occurred over what legal responsibilities the LEDC Board of Directors
has when LEAP is acting on behalf of the LEDC (e.g. contracts with developers).
• Overview of the current Errors & Omissions (EO) insurance policy that is in place
for the LEDC Board of Directors. This policy is with Lyman Sheets, Lansing, Ml.
Jones: Inquired if the contracts are not signed by June 301h, does this mean the current
contracts stay in place. Owen to look into this further. Discussion ensued.
Coleman: Is there a conflict of interest with Lyman Sheets if they cover both LEAP and the
LEDC's E&O policies. Discussion ensued.
Motion: Johnson moved to approve the 2018-2019 LEDC & City of Lansing Contract as
presented with the understanding language may change for Section 16:
Save Harmless Clause, Pagel 1. Motion seconded by Butler.
Yeas: Unanimous. Motion carried.
2018-2019 LEDC & City of Lansing Arts & Culture Contract (Action)
Dorshimer provided a brief overview of the 2018-2019 LEDC & City of Lansing Arts & Culture
contract. This contract covers the arts and Placemaking program LEAP does on behalf of
the City of Lansing. Discussion ensued.
Motion: Jones moved to approve the 2018-2019 LEDC & City of Lansing Arts & Culture
Contract as presented. Motion seconded by Schaible.
Yeas: Unanimous. Motion carried.
2018-2019 LEDC & City of Lansing Fagade Improvement Grant Program Contract (Action)
Dorshimer provided a brief overview of the 2018-2019 LEDC & City of Lansing Fagade
Improvement Grant Program Contract. This program budget was increased to $150,000
from last year's contract and is managed by the Business Development Division at LEAP.
Discussion ensued over what the increased monies will be used for. Klein noted there will be
an event on June 13, 2018 at 1141 S Washington Avenue, Lansing, MI, announcing the kick-
off of this program.
Motion: Jones moved to approve the 2018-2019 LEDC & City of Lansing Fagade
Improvement Grant Program Contract as presented. Motion seconded by
Johnson.
Yeas: Unanimous. Motion carried.
2018-2019 LEDC & LEAP Contract (Action)
Dorshimer provided a brief overview of the 2018-2019 LEDC & LEAP contract, He noted that
this contract mirrors the LEDC & City of Lansing contract, but is for a different amount -
$500,000. Discussion ensued over the indemnification/hold harmless clause and whether
the insurance policy will provide adequate coverage and how all of this could potentially
impact the LEDC. Owen's provided an overview of the language for the LEDC
indemnification/hold harmless language on Page 2- Administration, of the LEDC and LEAP
contract. Discussion occurred over setting -up an activities/goal reporting process (adding
more structure) that LEAP will provide to the LEDC Board of Directors.
Motion: Donaldson moved to approve the 2018-2019 LEDC and LEAP Contract as
presented with the possible change for Section 17: Save Harmless Clause,
Pagel 2-13. Motion seconded by Coleman.
Yeas: Unanimous. Motion carried.
Action Item: Chair Ragan requested that any significant changes to the contract be
provided along with an update on the insurance.
CDBG Facade Improvement Grant Program Contract - LEDC & City of Lansing (Action)
Dorshimer provided a brief overview of the CDBG Fagade Improvement Grant Program
contract between the LEDC & City of Lansing. He reintroduced Kris Klein, LEAP, who
advised on the following:
• This is a Community Development Block Grant (CDBG) contract for $80,000 ($72,000
being awarded as grant monies) with a $24,000 participant match
• This grant/contract will have a concentration in the Southwest Lansing area
• There is a subcontract agreement included with this grant/contract with Bruce
Johnston, Revitalize LLC for $8,000 (the 'grantee')
• Monies for the CDBG Fagade Improvement Grant Program must be used by
November 30, 2018
Motion: Coleman moved to approve the CDBG Fagade Improvement Grant Program
between the LEDC & City of Lansing Contract as presented. Motion
seconded by Butler.
Yeas: Unanimous. Motion carried.
CDBG Fagade Improvement Grant Program Contract- LEDC & Revitalize LLC (Action)
Klein provided a brief overview of the CDBG Fagade Improvement Grant Program contract
between the LEDC & Revitalize LLC.
Motion: Donaldson moved to approve the CDBG Fagade Improvement Grant
Program contract between the LEDC 8, Revitalize LLC as presented. Motion
seconded by Jones.
Yeas: Unanimous. Motion carried.
Approval of LEDC 2018-2019 Budget Amendment for CDBG Fagade Improvement Grant
Program (Action)
Klein provided a brief overview of the CDBG Fagade Improvement Grant Program contract
between the LEDC & Revitalize LLC. He noted this was for the 2018-2019 fiscal year.
Motion: Schaible moved to approve the 2018-2019 LEDC budget amendment for
the CDBG Fagade Improvement Grant Program as presented. Motion
seconded by Donaldson.
Yeas: Unanimous, Motion carried.
The Runway Transition/Special Meeting - Thursday, May 17, 2018 (Action)
Dorshimer provided a brief update of the Special LEDC Meeting Chair Ragan called on
Thursday, May 17, 2018 (via conference call). He introduced Joe Carr, LEAP, who provided
an update on the transition/move out of the Knapp's Building, a replacement for Meleena
Herring who resigned and new programming. Discussion ensued.
Motion: Jones moved to approve the Thursday, May 17, 2018 LEDC Special Meeting
Minutes as presented with change to removing Schaible as attending this
meeting. Motion seconded by Donaldson.
Yeas: Unanimous. Motion carried.
Approval for Application to MDEQ - Grant/Loan for the Wing Project (Action)
Dorshimer provided an overview of the MDEQ Grant -Loan Application signed on May 18,
2018 by Chair Ragan. He noted this grant -loan application is considered incomplete until
the Resolution is approved by the LEDC Board, as the State considers this application
administratively incomplete until the signed LEDC Resolution has been submitted. Dorshimer
reintroduce, Eric Helzer, Advance Redevelopment Solutions. He noted that this Resolution
allows the LEDC to access additional funds for The Wing (735 Hazel Street) project. Helzer
provided an update on all the phases of this large-scale project.
Motion: Butler moved to approve the Resolution for the MDEQ Grant -Loan
Application as presented. Motion seconded by Jones.
Yeas: Unanimous. Motion carried.
Project Updates
Red Cedar Renaissance: This large-scale project continues to move forward with a City of
Lansing Committee of the Whole meeting taking place next week to discuss the
development agreement.
M
Open Forum for LEDC Board of Directors
None.
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at
10:12 a.m.
�;_ 41
Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
ECONOMIC DEVELOPMENT CORPORATION
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Economic Development Corporation of
the City of Lansing held on Friday, June 1, 2018 at 8:30 a.m., pursuant to notice duly given:
MEMBERS PRESENT: Andrea Ragan, James Butler III, Blake Johnson,
Calvin Jones, Thomas Donaldson, Kimberly Coleman,
Frederik Schaible
MEMBERS ABSENT: Mayor Andy Schor, Shelley Boyd
The following preamble and resolutions were offered by:
MEMBER: Donaldson, seconded by:
MEMBER: Jones
WHEREAS, on Friday, June 1, 2018, the Lansing Economic Development Corporation
(LEDC) Board of Directors adopted a resolution directing its authorized(s) representatives to
enter into a Grantee Agreement with the City of Lansing (Grantee Agreement) to deliver all
Grantee requirements for the City of Lansing Community Development Block Grant (CDBG)
Commercial Rehabilitation Facade Improvement Program in Southwest Lansing (Program)
using $80,000 in CDBG funds (Attachment A); and
WHEREAS, of the $80,000 available to the Program, $72,000 is dedicated to facade
improvement matching grants for eligible business and property owners and $8,000 is
dedicated to the Grantee for delivery of the Program; and
WHEREAS, the LEDC desires to negotiate and enter into a Sub -Grantee Agreement with
Revitalize, LLC, (Attachment B) to deliver Grantee requirements for the Program as
presented in the Grantee Agreement, for the amount of $8,000; and
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING ECONOMIC DEVELOPMENT CORPORATION AS FOLLOWS:
1. The LEDC Board accepts Revitalize, LLC as Sub -Grantee for the City of Lansing
Community Development Block Grant (CDBG) Commercial Rehabilitation Fapade
Improvement Program.
2. The LEDC directs its authorized representative(s) to negotiate and enter on the LEDC's
behalf the Sub -Grantee Agreement with Revitalize, LLC, to deliver all Grantee requirements
for the Program as presented in the Grantee Agreement, except for the obligations retained
for the LEDC as expressly written in the "Scope of Services" section within the Sub -Grantee
Agreement.
3. Additionally, the LEDC agrees that if any section, clause or phrase of this Resolution is
declared as invalid by a court of law, that ruling shall not affect the intent and purpose of this
Resolution and validity of the remaining provisions of the Resolution.
4. Finally, the LEDC declares that all resolutions or parts of resolutions in conflict with any of
the provisions of this Resolution are repealed
YEAS: Seven (7)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Two (2)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 15' day of June 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 1 I day of June 2018.
alvin Jones, Secretary
Friday, June 1, 2018
Date
ECONOMIC DEVELOPMENT CORPORATION
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Economic Development Corporation of
the City of Lansing held on Friday, June 1, 2018 at 8:30 a.m., pursuant to notice duly given:
MEMBERS PRESENT: Andrea Ragan, James Butler III, Blake Johnson,
Calvin Jones, Thomas Donaldson, Kimberly Coleman,
Frederik Schaible
MEMBERS ABSENT: Mayor Andy Schor, Shelley Boyd
The following preamble and resolutions were offered by:
MEMBER: Schaible, seconded by:
MEMBER: Donaldson
LEDC 2018-2019 Budget Amendment:
WHEREAS, on Friday, June 1, 2018, the Lansing Economic Development Corporation
(LEDC) Board of Directors adopted a resolution directing its authorized(s) representatives to
enter into a Grantee Agreement with the City of Lansing (Grantee Agreement) to deliver
Grantee requirements for the City of Lansing Community Development Block Grant (CDBG)
Commercial Rehabilitation Fagade Improvement Program in Southwest Lansing (Program)
using $80,000 in CDBG funds (Attachment A); and
WHEREAS, of the $80,000 available for the Program, $72,000 is dedicated to matching
grants and $8,000 for program delivery; and
WHEREAS, on Friday, June 1, 2018, the Lansing Economic Development Corporation
(LEDC) Board of Directors adopted a resolution directing its authorized(s) representatives to
enter into a Sub -Grantee Agreement with Revitalize, LLC (Sub -Grantee Agreement)
(Attachment B) to deliver Grantee requirements for the Program.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING ECONOMIC DEVELOPMENT CORPORATION AS FOLLOWS:
1. The Lansing Economic Development Corporation Board of Directors approves amending
the 2018/2019 budget to reflect the receipt and appropriation of funding in the amount of
$8,000 to be used for the delivery of Grantee requirements for the City of Lansing
Community Development Block Grant (CDBG) Commercial Rehabilitation Fagade
Improvement Program in Southwest Lansing (Program).
2. Additionally, the LEDC agrees that if any section, clause or phrase of this Resolution is
declared as invalid by a court of law, that ruling shall not affect the intent and purpose of this
Resolution and validity of the remaining provisions of the Resolution.
3. Finally, the LEDC declares that all resolutions or parts of resolutions in conflict with any of
the provisions of this Resolution are repealed
YEAS: Seven (7)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Two (2)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 15' day of June 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 15' day of June 2018.
Calvin Jones, Secretary
Friday, June 1, 2018 _
Date
ECONOMIC DEVELOPMENT CORPORATION
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Economic Development Corporation of
the City of Lansing held on Friday, June 1, 2018 at 8:30 a.m., pursuant to notice duly given:
MEMBERS PRESENT: Andrea Ragan, James Butler III, Blake Johnson,
Calvin Jones, Thomas Donaldson, Kimberly Coleman,
Frederik Schaible
MEMBERS ABSENT: Mayor Andy Schor, Shelley Boyd
The following preamble and resolutions were offered by:
MEMBER:
MEMBER:
Coleman, seconded by:
Butler
WHEREAS, The City of Lansing desires to implement a Community Development Block
Grant (CDBG) Commercial Rehabilitation Facade Improvement Program (Program) in
Southwest Lansing using $80,000 in CDBG funds; and
WHEREAS, The City of Lansing is seeking to enter into a Grantee Agreement (Agreement)
with the Lansing Economic Development Corporation (LEDC) to deliver Grantee
requirements under the Program (Attachment A); and
WHEREAS, business and property owners in the south-west quadrant of the Pleasant
Grove Rd. and W. Holmes Rd. intersection in Lansing are to be eligible to apply for the
Program. Of the $80,000 available for the Program, $72,000 is dedicated to matching
grants and $8,000 is dedicated to the Grantee for delivery of the Program; and
WHEREAS, the LEDC desires to continue its efforts of investment and economic
development assistance for businesses and property owners in Southwest Lansing by
serving as Grantee to the Program.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING ECONOMIC DEVELOPMENT CORPORATION AS FOLLOWS:
1. The LEDC Board supports the City of Lansing Community Development Block Grant
(CDBG) Commercial Rehabilitation Fagade Improvement Program to assist eligible
businesses and property owners in Southwest Lansing with fagade improvements.
2. The LEDC Board accepts the role of Grantee to the City of Lansing CDBG Commercial
Rehabilitation Fagade Improvement Program pending the execution of a Grantee
Agreement.
3. The LEDC directs its authorized representative(s) to negotiate and enter on the LEDC's
behalf a Grantee Agreement with the City of Lansing to deliver the Grantee requirements
presented in the Agreement.
4. Additionally, the LEDC agrees that if any section, clause or phrase of this Resolution is
declared as invalid by a court of law, that ruling shall not affect the intent and purpose of this
Resolution and validity of the remaining provisions of the Resolution,
5. Finally, the LEDC declares that all resolutions or parts of resolutions in conflict with any of
the provisions of this Resolution are repealed
YEAS: Seven (7)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Two (2)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 1s' day of June 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's Bylaws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this V day of June 2018.
Calvin Jones, Secretary
Friday, June 1, 2018
Date
ECONOMIC DEVELOPMENT CORPORATION
OF THE CITY OF LANSING
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Economic Development Corporation of
the City of Lansing held on Friday, June 1, 2018 at 8:30 a.m., pursuant to notice duly given:
MEMBERS PRESENT: Andrea Ragan, James Butler III, Blake Johnson,
Calvin Jones, Thomas Donaldson, Kimberly Coleman,
Frederik Schaible
MEMBERS ABSENT: Mayor Andy Schor, Shelley Boyd
The following preamble and resolutions were offered by:
MEMBER: Butler, seconded by:
MEMBER: Jones
WHEREAS, both the Lansing Economic Development Corporation (LEDC) and the Lansing
Brownfield Redevelopment Authority (LBRA) support the proposed brownfield
redevelopment project (The Wing) located at 735 Hazel Street (Property) in Lansing,
Michigan, and
WHEREAS, the City of Lansing Department of Economic Development and Planning has
determined the proposed project is consistent with local development and redevelopment
plans and zoning ordinances, and
WHEREAS, The Wing project will transform a 144,851 square foot building, built in 1929
and located on 3.218 acres into a mixed-use property that includes small commercial
business spaces, office areas, and multiple residential spaces, and
WHEREAS, The Wing project, will require $19,518,256 in private investment, create
approximately 35 to 50 FTE jobs, and will result in community and municipal benefits of
increased property and income taxes and substantial improvement to the appearance and
aesthetics of the Property in its current state, which will assist in increasing the property
values of the neighboring community; and
WHEREAS, to complete The Wing project it will require an estimated $3,518,256 of
environmental remediation including Due Care Planning and Implementation, plus Vapor
Mitigation (Due Care Activities); and
WHEREAS, the LBRA desires to assist the Developer to alleviate the costs of the Due Care
Activities and other eligible site costs by applying to the MDEQ for a Grant and Loan in the
total amount up to $2,000,000 (up to $1,000,000 grant and up to $1,000,000 loan)
dependent on available funding, and
WHEREAS, the LEDC will provide a complete Brownfield Redevelopment Loan/Grant
application to the MDEQ for consideration, and
WHEREAS, if the LEDC is awarded a grant and/or loan from the MDEQ the LEDC will enter
into agreements with the MDEQ and the Developer specifying the terms and conditions
under which the grant and or loan will be used to assist the Developer with the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY, AS FOLLOWS:
1. The Lansing Economic Development Corporation (LEDC) supports the application
submitted for a Brownfield Redevelopment Grant and Loan to the Michigan Department of
Environmental Quality (MDEQ), to assist with the brownfield redevelopment project located
at 735 Hazel Street (The Wing) in Lansing, Michigan,
2. The Lansing Economic Development Corporation Board accepts the Grant and is
committed to repay the actual expenditures of the Brownfield Redevelopment Loan, per a
loan agreement, if approved by MEDQ, up to $1,000,000, to be issued to and managed by
the LEDC, conditional upon the approval of a brownfield redevelopment plan for the project
by both the Lansing Brownfield Redevelopment Authority (LBRA) and the City of Lansing.
3, The LEDC also directs its authorized representative(s) to negotiate and enter on the
LEDC's behalf any related grant and/or loan agreements to assist the Developer with the
project.
4. The LEDC concurs with the City of Lansing Department of Economic Development and
Planning that the proposed project is consistent with local development and redevelopment
plans and zoning ordinances.
5. Additionally, the LEDC agrees that if any section, clause or phrase of this Resolution is
declared as invalid by a court of law, that ruling shall not affect the intent and purpose of this
Resolution and validity of the remaining provisions of the Resolution.
6. Finally, the LEDC declares that all resolutions or parts of resolutions in conflict with any
of the provisions of this Resolution are repealed.
YEAS: Seven (7)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Two (2)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 15' day of June 2018, and said preamble and resolutions are on file in the office of
the Economic Development Corporation of the City of Lansing and are available to the public,
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's By -Laws,
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 15' day of June 2018.
Calvin Jones, Secretary
Friday, June 1, 2018
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, September 7, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present: Andrea Ragan, Calvin Jones, Blake Johnson,
James Butler III, Fred Schaible, Shelley Boyd
Members Absent: Mayor Andy Schor, Kimberly Coleman,
Thomas Donaldson
Temp Members Present: None
Staff Present: Karl Dorshimer, Kris Klein, Anum Mughal, Marchelle Smith
Guests: Janet Michaluk, State of Michigan DEQ
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to order
at 9:32 a.m. She asked Parsons to conduct rollcali and place on file.
Approval of LEDC Board Meeting Minutes - Friday, July 13, 2018
Motion: Johnson moved to approve the LEDC meeting minutes from the Friday, July
13, 2018 LEDC Board of Director's meeting as presented. Motion seconded
by Butler.
Yeas: Unanimous. Motion carried,
LEDC Financial Statements - Period Ending June 30, 2018
Smith provided an overview of the LEDC Financial Statements, period ending June 30, 2018,
noting that the financials are on -track and remain strong. She advised that this is the last
month the LEDC Board should see anything reported for The Runway Lansing incubator.
Smith noted the LEDC is under -budget by $24,000. Discussion ensued.
Motion: Jones moved to receive the LEDC Financials, period ending June 30, 2018,
as presented and place on file. Motion seconded by Johnson.
Yeas: Unanimous. Motion carried.
UDAG Report - Period Ending June 30, 2018
Smith provided an overview/update on the UDAG funds for the period ending June 30,
2018, noting there were no changes to report. Discussion ensued.
Lansing Corridor Facade Program (Presentation)
Dorshimer provided a brief update on the City of Lansing Corridor Facade Grant Program
and reintroduced Anum Mughal, LEAP, who provided a presentation, noting the following:
The City of Lansing Corridor Fapade Grant Program was created to strengthen the
viability of Lansing's non -downtown commercial corridors
• The program is directed at commercial, office and mixed -used buildings that are
adjacent to main corridors and neighborhoods (located just outside of the
downtown area)
• Overview of how the facade improvement project requests will be determined
eligible to receive funding
• Overview of how grant monies will be used and disseminated
• Overview of the timeline for the facade grant program
• Discussion on how the program will be marketed and promoted to businesses who
meet the criteria
Mughal provided a handout (Corridor Facade Program) and postcards that were mailed to
businesses with the corridor improvement boundaries. Discussion ensued.
Project Updates
None.
Open Forum for LEDC Board of Directors
Chair Ragan opened the floor to the LEDC Board Members, who provided the following
announcements/updates:
Butler: Requested Dorshimer add additional information - Scope of the Project (e.g,
location and total cost(s) of project, Brownfield eligible activities, , etc.) to project updates.
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at 9:59
a. m.
Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
PA
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, July 13, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present: Andrea Ragan, Calvin Jones, Blake Johnson,
James Butler III, Thomas Donaldson, Mayor Andy Schor,
Shelley Boyd
Members Absent: Kimberly Coleman, Fred Schaible
Temp Members Present: None
Staff Present: Karl Dorshimer, Kris Klein, Joe Carr, Marchelle Smith
Guests: None
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to order
at 9:20 a.m. She asked Parsons to conduct rollcall and place on file.
Approval of LEDC Board Meeting Minutes - Friday, June 1, 2018
Motion: Jones moved to approve the LEDC meeting minutes from the Friday, June 1,
2018 LEDC Board of Director's meeting as presented. Motion seconded by
Johnson.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending May 31, 2018
Smith provided an overview of the LEDC Financial Statements, period ending May 31, 2018,
noting that the financials are on -track and remain strong. Discussion ensured.
Motion: Boyd moved to receive the LEDC Financials, period ending May 31, 2018,
as presented and place on file. Motion seconded by Donaldson,
Yeas: Unanimous. Motion carried.
UDAG Report - Period Ending May 31, 2018
Smith provided an overview/update on the UDAG funds for the period ending May 31,
2018, noting there were no changes to report. Smith provide an update on the Lowertown
Lofts business loan status. Discussion ensued.
Runway Lansing Transition (Update)
Chair Ragan provided a brief update on The Runway transition plan, noting the Runway
Subcommittee recently met and reintroduced Joe Carr, LEAP, who advised on the
following:
• Liquidation sale took place the week of June 26, 2018
• Assets from the liquidation sale: $10,646
The Runway/LEAP staff assisted the remaining tenants in moving out of the
location successfully
The Runway is officially out of the location in the Knapp's Center (downtown
Lansing) and have notified the Eyde Company of vacancy
Overview of new Runway Lansing programming (being led by a former instructor
of the LCC fashion program)
City of Lansing Facade Improvement Grant Program (Update)
Kris Klein, LEAP, provided a brief overview of the 2018-2019 LEDC & City of Lansing Arts &
Culture contract. This contract covers the arts and Placemaking program LEAP does on
behalf of the City of Lansing. Discussion ensued.
• Overview of the program, noting this is going very well
• There are more applications now than received at the last program
• Two Facade improvements going on currently with the CDBG grant
• All grant monies need to be expended by June 30, 2019
• Overview of reimbursement activities and 50/50 matching grant
• Will provide monthly updates to the LEDC board as they develop
Public Space Design Committee (Presentation)
Dorshimer provided an overview of a new LEAP initiative, Public Space Design Committee,
noting that this committee will be formed to help set standards when it comes to public art
and Placemaking. He introduced Josh Holliday, LEAP, who provided an overview of the
Public Space Design Committee (handout included), noting the following:
• Overview on what the Committee's responsibilities are and what they
[Committee] will do for the Lansing region
• Introduction of Public Space Design Team (Committee)
• This committee is needed to ensure the Lansing region remains competitive,
allowing us to attract businesses and world-class talent
• Committee is being developed as a core group, representing municipalities,
businesses and the nonprofit sector
Mayor Schor noted he liked this new Committee and encourages them to focus on
areas/corridors in Lansing and improve the streetscape and envision creating a more
exciting and welcoming space.
LEDC & City of Lansing Contract (Update)
Dorshimer provided an update on the 2018-2019 LEDC & City of Lansing contract, advising
that the contracts have been fully executed and the only change was the removal of the
indemnification clause by the City Attorney. Chair Ragan and Dorshimer worked closely
with the LEDC's attorney (Foster -Swift).
LEDC Board of Directors Insurance (Update)
Dorshimer provided an update on the LEDC Board of Directors insurance policy advising
that we continue to go through the process working closely with Lyman Sheets. Currently
working on the applications and will provide an update at a future meeting.
rpa
Project Updates
Red Cedar Renaissance: Mayor Schor noted this large-scale project is ready for City
Council's vote on Monday, July 23, 2018. Next -steps is to have the Brownfield Plan being
submitted to the LBRA Board of Directors.
735 Hazel Street - The Wing: Dorshimer & Mayor Schor recently toured this project and
expects the Brownfield Plan to come the LBRA Board of Directors soon.
Open Forum for LEDC Board of Directors
Johnson: Noted that Ellison Brewery is expanding their presence in Lansing and inquired
what the impact of this project will have on the other businesses dealing in the micro -brew
and craft -beer industry. Discussion ensued.
Mayor Schor opened discussion on appropriate incentives and how these are impacting
the business climate in Lansing. Encouraged the board to be more thoughtful in providing
loans/incentives to where we are trying to increase growth in particular industry segments.
Boyd: LAFCU has an open house and ribbon cutting ceremony this evening at their'location
on 4600 Collins Road. LAFCU recently merged with US Postal Credit Union.
Inquired when the LEDC Strategic Planning process will take place. Chair Ragan advised
that we will address this at a future meeting.
Action Item: Parsons to work with Chair Ragan and Dorshimer to schedule the LEDC Board
of Directors Strategic Planning process.
Action Item: Chair Ragan requested Parson work on scheduling three-four LEDC board
meetings at project locations and additionally an update on projects be provided prior to
meetings.
Donaldson: SBDC is seeing a peak in business expansion in the Lansing region. Noted that
interests' rates are going up and recession is forthcoming.
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at] 0:26
a.m.
/%� 1,/z .-..---
Karl/Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, October 5, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201, Lansing, MI 48910
Members Present: Andrea Ragan, Calvin Jones, Mayor Andy Schor,
Shelley Boyd, Thomas Donaldson, Kimberly Coleman
Members Absent: James Butler III, Blake Johnson, Frederik Schaible
Temp Members Present: None
Staff Present: Karl Dorshimer, Marchelle Smith
Guests: None
Public Present: None
Recorded by: Tedi R. Parsons, LEAP
Call to Order
Secretary Jones welcomed everyone and called the LEDC Board of Directors meeting to
order at 9:03 a,m.
Adjourned LEDC meeting at: 9:09 AM
Reconvened LEDC meeting by Chair Ragan at: 9:14 AM
Chair Ragan noted today's LEDC Board Meeting agenda has been amended to note the
addition of Approval of Brownfield Plan #70 - 735 Hazel Street Loan Agreement and the
removal of the presentation: Accelerating the Runway by STICHed Fashion Consulting.
Approval of LEDC Board Meeting Minutes - Friday, September 7, 2018
Motion: Jones moved to approve the LEDC meeting minutes from the Friday,
September 7, 2018 LEDC Board of Director's meeting as presented. Motion
seconded by Boyd.
Yeas: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending August 31, 2018
Smith provided an overview of the LEDC Financial Statements, period ending August 31,
2018, noting that the financials are on -track and remain strong. She advised that as the
financials are processed through our CPA and is requesting that the Board approve having
the LEDC financials be presented on a quarterly basis. . Discussion ensued.
Motion: Donaldson moved to receive the LEDC Financials, period ending August 31,
2018, as presented and place on file, including presenting LEDC Financials on
a quarterly basis. Motion seconded by Coleman.
Yeas: Unanimous. Motion carried.
UDAG Report - Period Ending August 31, 2018
Smith provided an overview/update on the UDAG funds for the period ending August 31,
2018, noting there were no changes to report. Smith noted that once the upcoming audit is
completed this will reflect an actual subsidy for The Runway through June 30, 2018.
Discussion ensued.
Chair Ragan noted that she recently received a call from Rehmann-Robson, LEDC Auditors,
as part of the audit process and answered all their questions as required. Discussion
ensued.
Approval of Brownfield Plan #70 - 735 Hazel Street Loan Agreement Program (ACTION)
Dorshimer provided a brief history and overview of the Loan Agreement for Brownfield Plan
#70 - 735 Hazel Street. He advised the LEDC Board is the applicant for the 735 Hazel Street
Loan Agreement between the LEDC and the developer (735 Hazel Street LLC). He
additionally noted that the original grant with the MDEQ has already been signed by Chair
Ragan on May 18, 2018.
Motion: Donaldson moved to approve the Resolution for Brownfield Plan #70 -735
Hazel Street Redevelopment Project, as presented. Motion seconded by
Boyd.
Yeas: Unanimous. Motion carried.
Project Updates
Red Cedar Renaissance: Today is the deadline for the developer (Ferguson Development)
to submit their Brownfield Plan and supporting documents in preparation for the Special
LBRA Board Meeting on Friday, October 18, 2018.
Sleepwalker Spirit & Ales: This project continues to move forward and he is receiving
updates from Jeremy Sprague, loan recipient, as they happen.
Chair Ragan advised that she would like to table the discussion on possible new meeting
locations until January 2019.
Open Forum for LEDC Board of Directors
Boyd: Requesting that the LEDC Board of Directors continue looking at a Strategic Plan
Process and having a board retreat. Suggested having a half-day retreat at the first
meeting in January 2019 to meet for a minimum of four -hours.
Action Item: Parsons to request a copy of the City of Lansing's current Strategic Plan and
submit to the full LEDC Board of Directors.
Donaldson: Requested an update be provided on the liability insurance for the LEDC board
members.
Jones: Requested that LEAP notify the LEDC Board when key staff members leave the
organization (LEAP).
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at 9:39
a. m.
G�/ /X
Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Lansing Brownfield Redevelopment
Authority (LBRA) held on Friday, October 5, 2018 at 8:30 a.m., pursuant to notice duly
given:
PRESENT: MEMBERS: Calvin Jones, Mayor Andy Schor, Kimberly Coleman,
Shelley Boyd, Thomas Donaldson
ABSENT: MEMBERS: Andrea Ragan, James Butler III, and Frederick Schaible
The following preamble and resolutions were offered by:
MEMBER: Donaldson, seconded by:
MEMBER: Boyd
WHEREAS, the Lansing Brownfield Redevelopment Authority (LBRA) supports the
proposed brownfield redevelopment project located at 735 Hazel Street (Project) in Lansing,
Michigan, and
WHEREAS, the City of Lansing Department of Economic Development and Planning has
determined the proposed project is consistent with local development and redevelopment
plans and zoning ordinances, and
WHEREAS, 735 Hazel, LLC (Developer) will transform a 144,851 square foot building, built
in 1929 and located on 3.218 acres into a mixed-use property that includes small
commercial business spaces, office areas, and multiple residential spaces, and
WHEREAS, the Project will require an estimated $19,518,256 in private investment, create
approximately 35 to 50 FTE jobs, and will result in community and municipal benefits of
increased property and income taxes and substantial improvement to the appearance and
aesthetics of the Property in its current state, which will assist in increasing the property
values of the neighboring community; and
WHEREAS, to complete the Project it will require an estimated $3,518,256 of environmental
remediation including Due Care Planning and Implementation, plus Vapor Mitigation (Due
Care Activities); and
WHEREAS, the Lansing Brownfield Redevelopment Authority (LBRA) previously approved
Brownfield Plan #70 - 735 Hazel Street Redevelopment Project (Brownfield Plan #70) on
August 10, 2018, and
WHEREAS, the Developer has asked for a $400,000 loan from the LBRA Brownfield
Revolving Fund to assist the Developer to alleviate the costs of the Due Care Activities and
other eligible site costs, and
WHEREAS, the Lansing Economic Development Corporation (LEDC) to assist the
Developer to alleviate the costs of the Due Care Activities and other eligible site costs has
applied to the Michigan Department of Environmental Quality (MDEQ) and received a grant
in the amount of $235,000 and will receive a MDEQ loan in the amount not to exceed
$1,463,282.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY (LBRA), AS FOLLOWS:
1. Lansing Brownfield Redevelopment Authority (LBRA Board) approves the use of up
to $400,000 in LBRA Brownfield Revolving Funds as a loan to 735 Hazel, LLC, to be used
to alleviate the costs of the Due Care Activities and other eligible site costs per Brownfield
Plan #70 - 735 Hazel Street Redevelopment Project.
2. The Lansing Brownfield Redevelopment Authority (LBRA Board) approves the
Secured Loan Agreement with the LBRA and 735 Hazel, LLC, (Attachment A) in the amount
of $1,863,282 conditional upon the approval of Brownfield Plan #70 by the Lansing City
Council.
3. Furthermore, the LBRA Board also directs its authorized representative(s) to enter
into the above Secured Loan Agreement on the LBRA Board's behalf.
4. Additionally, the LBRA Board concurs with the City of Lansing Department of
Economic Development and Planning that the proposed project is consistent with local -
development and redevelopment plans and zoning ordinances.
5. Additionally, the LBRA Board agrees that if any section, clause or phrase of this
Resolution is declared as invalid by a court of law, that ruling shall not affect the intent and
purpose of this Resolution and validity of the remaining provisions of the Resolution.
7. Finally, the LBRA Board declares that all resolutions or parts of resolutions in conflict
with any of the provisions of this Resolution are repealed.
YEAS: Five (5)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Four (4)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN )
) ss.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and a complete copy of a preamble and resolutions
adopted at a regular meeting of the Economic Development Corporation of the City of Lansing
held on the 5th day of October 2018, and said preamble and resolutions are on file in the office
of the Economic Development Corporation of the City of Lansing and are available to the public.
Public notice of the meeting was given pursuant to and in compliance with Act No. 267, Public
Acts of Michigan 1976, including in the case of a special or re -scheduled meeting, notice by
publication or posting of at least eighteen (18) hours prior to the time set for the meeting. In
addition, the meeting was held in full compliance with the Board's Bylaws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 5th day of October
2018.
i va', K/ --452-�
Calvin Jones, Secretary
Friday, October 5, 2018
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY
Certificate of Resolution by Board of Directors
At a regular meeting of the Board of Directors of the Lansing Brownfield Redevelopment
Authority of Lansing (LBRA) held on Friday, October 5, 2018 at 8:30 a.m., pursuant to
notice duly given:
PRESENT: MEMBERS: Calvin Jones, Mayor Andy Schor, Kimberly Coleman,
Shelley Boyd, Thomas Donaldson
ABSENT: MEMBERS: Andrea Ragan, James Butler III, and Frederick Schaible
The following preamble and resolutions were offered by:
MEMBER: Mayor Andy Schor, seconded by:
MEMBER: Boyd
WHEREAS, the Lansing Brownfield Redevelopment Authority (LBRA) supports the
proposed brownfield redevelopment project (Capital City Market) located at 600 East
Michigan Avenue (Property) in Lansing, Michigan, and
WHEREAS, the City of Lansing Department of Economic Development and Planning has
determined the proposed project is consistent with local development and redevelopment
plans and zoning ordinances, and
WHEREAS, the Capital City Market project will create a four-story mixed used project
consisting of an urban market, hotel and market rate residential apartments, with a 48,000
square foot footprint with an additional 35,000 square feet on each of the upper floors, and
WHEREAS, The Capital City Market project, will require $25 million in developer investment
and an additional $16.5 million by a hotel developer for a total of $41.5 million, create
approximately 30 to 50 FTE jobs, and will result in community and municipal benefits of
increased property and income taxes and substantial improvement to the appearance and
aesthetics of the Property in its current state, and
WHEREAS, to complete The Capital City Market project it will require an estimated
$4,325,527 of brownfield Eligible Activities; and
WHEREAS, the LBRA desires to assist the Developer to alleviate the costs of the Eligible
Activities by applying to the MDEQ for a Grant and Loan in the total amount up to
$2,000,000 (up to $1,000,000 grant and up to $1,000,000 loan) dependent on available
funding, and
WHEREAS, the LBRA will provide a complete Brownfield Redevelopment Loan/Grant
application to the MDEQ for consideration, and
WHEREAS, if the LBRA is awarded a grant and/or loan from the MDEQ the LBRA will enter
into agreements with the MDEQ and the Developer specifying the terms and conditions
under which the grant and or loan will be used to assist the Developer with the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY, AS FOLLOWS:
1. The Lansing Brownfield Redevelopment Authority (LBRA) supports the application
submitted for a Brownfield Redevelopment Grant and Loan to the Michigan Department of
Environmental Quality (MDEQ), to assist with the brownfield redevelopment project located
at 600 East Michigan Avenue (Capital City Market) in Lansing, Michigan (Attachment A).
2. The LBRA will accept the Grant and Loan and is committed to repay the actual
expenditures of the Brownfield Redevelopment Loan, per a loan agreement, if approved by
MEDQ, up to $1,000,000, to be issued to and managed by the LBRA, conditional upon the
approval of a brownfield redevelopment plan for the project by both the LBRA and the City
of Lansing.
3. The LBRA also directs its authorized representative(s) to work with the LBRA's attorney
to negotiate and enter on the LBRA's behalf any related grant and/or loan agreements to
assist the Developer with the project.
4. The LBRA concurs with the City of Lansing Department of Economic Development and
Planning that the proposed project is consistent with local development and redevelopment
plans and zoning ordinances.
5. Additionally, the LBRA agrees that if any section, clause or phrase of this Resolution is
declared as invalid by a court of law, that ruling shall not affect the intent and purpose of this
Resolution and validity of the remaining provisions of the Resolution.
6. Finally, the LBRA declares that all resolutions or parts of resolutions in conflict with any
of the provisions of this Resolution are repealed.
YEAS: Five (5)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Four (4)
PREAMBLE AND RESOLUTIONS DECLARED ADOPTED.
STATE OF MICHIGAN }
)SS.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at
a meeting of the Brownfield Redevelopment Authority held on the 5t" day of October 2018,
and said resolution is on file in the office of the Lansing Brownfield Redevelopment
Authority and is available to the public. Public notice of the said meeting was given
pursuant to and in compliance with Act No. 267, Public Acts of Michigan 1976, including
in the case of a special or re -scheduled meeting, notice by publication or posting of at
least eighteen (18) hours prior to the time set for the meeting. In addition, said meeting
was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 5th day of
October 2018.
Calvin Jones, Secretary
Friday, October 5, 2018
THE LANSING BROWNFIELD REDEVELOPMENT AUTHORITY
Resolution Recommending Approval of Plan #75 - Capital City Market
Brownfield Redevelopment Project
At a meeting of the Board of Directors of the Lansing Brownfield Redevelopment Authority
(LBRA) Lansing, Michigan, held on the 5 r day of October 2018, at 8:30 a.m., pursuant to
notice duly given:
PRESENT: MEMBERS: Calvin Jones, Mayor Andy Schor, Kimberly Coleman,
Shelley Boyd, Thomas Donaldson
ABSENT: MEMBERS: Andrea Ragan, James Butler III, and Frederick Schaible
The following preamble and resolution was offered by;
MEMBER: Boyd, and seconded by,
MEMBER: Donaldson
WHEREAS, The LBRA staff has worked closely with representatives of 600 East
Michigan -Lansing, LLC (Developer) to draft Brownfield Plan #75 (Plan); and
WHEREAS, The LBRA staff has duly reviewed such Plan and has found it to be in
compliance with the provisions of the Act and meets the following determinations and
findings:
1. The Plan constitutes a public purpose under the Act;
2. The Plan meets all of the requirements for .a brownfield plan set forth in
Section 13 of the Act;
3. The proposed method of financing the cost of the eligible activities, as
described in the Plan, is feasible and the Authority has the ability to arrange
the financing;
4. The costs of the eligible activities proposed in the Plan are reasonable and
necessary to carry out the purposes of the Act; and
5. The amount of the captured taxable value estimated to result from the
adoption of the Plan is reasonable; and
WHEREAS, The LBRA staff recommends approval of the Plan:
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY, AS FOLLOWS:
The Brownfield Plan described as Brownfield Plan #75 — Capital City Market -
Brownfield Redevelopment Project in the form filed herewith is hereby approved
by the Lansing Brownfield Redevelopment Authority and recommended for
consideration by the City Council of the City of Lansing pursuant to Act 381 of
Michigan Public Acts of 1996, as amended.
2. The LBRA Board hereby requests that the
notification as specified by the Act, hold a
matter, and subsequently approve the Plan
YEAS: Five (5)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Four (4)
Lansing City Council, after required
public hearing in consideration of this
RESOLUTION DECLARED ADOPTED.
STATE OF MICHIGAN )
)SS.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at
a meeting of the Brownfield Redevelopment Authority held on the 51t' day of October 2018,
and said resolution is on file in the office of the Lansing Brownfield Redevelopment
Authority and is available to the public. Public notice of the said meeting was given
pursuant to and in compliance with Act No. 267, Public Acts of Michigan 1976, including
in the case of a special or re -scheduled meeting, notice by publication or posting of at
least eighteen (18) hours prior to the time set for the meeting. In addition, said meeting
was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 5th day of
October 2018.
Calvin Jones, Secretary
Friday, October 5, 2018
THE LANSING BROWNFIELD REDEVELOPMENT AUTHORITY
Resolution Recommending Approval of Plan #54
Reutter Park Place - Brownfield Redevelopment Project
At a meeting of the Board of Directors of the Lansing Brownfield Redevelopment Authority
(LBRA) Lansing, Michigan, held on the 5th day of October 2018, at 8:30 a.m., pursuant to
notice duly given:
PRESENT: MEMBERS: Calvin Jones, Mayor Andy Schor, Kimberly Coleman,
Shelley Boyd, Thomas Donaldson
ABSENT: MEMBERS: Andrea Ragan, James Butler III, and Frederick Schaible
The following preamble and resolution were offered by;
MEMBER: Boyd, and seconded by,
MEMBER: Donaldson
WHEREAS, The LBRA staff has worked closely with representatives of Y SITE, LLC
(Developer) to amend Brownfield Plan #54 (Plan); and
WHEREAS, The LBRA staff has duly reviewed the amended Plan and has found it to be
in compliance with the provisions of the Act and meets the following determinations and
findings:
1. The Plan constitutes a public purpose under the Act;
2. The Plan meets all the requirements for a brownfield plan set forth in
Section 13 of the Act;
3. The proposed method of financing the cost of the eligible activities, as
described in the Plan, is feasible and the Authority has the ability to arrange
the financing;
4. The costs of the eligible activities proposed in the Plan are reasonable and
necessary to carry out the purposes of the Act; and
5. The amount of the captured taxable value estimated to result from the
adoption of the Plan is reasonable; and
WHEREAS, The LBRA staff recommends approval of the Plan as amended:
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
LANSING BROWNFIELD REDEVELOPMENT AUTHORITY, AS FOLLOWS:
The Brownfield Plan described as Brownfield Plan #54 — Reutter Park Place -
Brownfield Redevelopment Project in the form filed herewith is hereby approved
as amended by the Lansing Brownfield Redevelopment Authority and
recommended for consideration by the City Council of the City of Lansing pursuant
to Act 381 of Michigan Public Acts of 1996, as amended.
2. The LBRA Board hereby requests that the Lansing City Council, after required
notification as specified by the Act, hold a public hearing in consideration of this
matter, and subsequently approve the amended Plan.
YEAS: Five (5)
NAYS: Zero (0)
ABSTENTIONS: Zero (0)
ABSENT: Four (4)
RESOLUTION DECLARED ADOPTED.
STATE OF MICHIGAN )
)SS.
COUNTY OF INGHAM )
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at
a meeting of the Brownfield Redevelopment Authority held on the 51h day of October 2018,
and said resolution is on file in the office of the Lansing Brownfield Redevelopment
Authority and is available to the public. Public notice of the said meeting was given
pursuant to and in compliance with Act No. 267, Public Acts of Michigan 1976, including
in the case of a special or re -scheduled meeting, notice by publication or posting of at
least eighteen (18) hours prior to the time set for the meeting. In addition, said meeting
was held in full compliance with the Board's By -Laws.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this 5'h day of
October 2018.
t
Calvin Jones, Secretary
Friday, October 5, 2018
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, November 2, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Members Present:
Members Absent:
Temp Members Present:
Staff Present:
Guests:
Public Present:
Recorded by:
Call to Order
Lansing, MI 48910
Andrea Ragan, Calvin Jones, Blake Johnson,
Mayor Andy Schor, Kimberly Coleman,
Thomas Donaldson, Fred Schaible, Shelley Boyd
James Butler III
Julian Darden, DCI Financial Services
Karl Dorshimer, Kris Klein, Anum Mughal,
Marchelle Smith
Brian McGrain, City of Lansing
None
Tedi R. Parsons, LEAP
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to
order at 8:33 a.m. She asked Parsons to conduct rollcall and place on file. Dorshimer
provided an introduction of Dillon Rush, LEAP's new Tri -County Development &
Placemaking Manager. Rush provided a brief overview of his professional background.
Parsons noted today's LEDC Board of Directors meeting agenda has been amended
(update to Lansing Corridor Fagade Grant Program handout and a handout being
provided from Peter Dewan, Lyman Sheets) and advised these are included in today'.s
meeting packets.
Chair Ragan provided the following announcements:
2019 LEDC, LBRA, TIFA Board of Directors meeting schedule is included with
today's packet and will be placed on file with the City Clerk's office.
A copy of the Cultural Economic Development Plan for the Tri -County Region is
included with today's meeting packet. This plan was recently presented at the
October 4, 2018 Creative Placemaking Summit, which took place here in
Lansing, MI.
Calvin Jones has accepted a recent request to serve as the Chair on the LEDC
Loan Committee,
Microloan Application - 517 Coffee, 3418 Pleasant Grove, Lansing, MI (ACTION)
Dorshimer provided a brief overview of the proposed loan application for 517 Coffee
advising this is a business located in Southwest Lansing, 3418 Pleasant Grove. He
introduced Julian Darden, who provided an overview of the loan on behalf of the LEDC
Loan Committee. Klein introduced Jamie LaDronka, Co -Owner, who provided
information on their plans for 517 Coffee and how the loan monies will be used. Darden
noted the LEDC Loan Subcommittee met recently and all agreed to move this loan
forward and present to the full board for approval. Discussion ensued.
• The LEDC microloan monies will be used to help 517 Coffee with their efforts to
continue the growth of business in the Southwest Lansing area.
• Have been in the coffee industry for over 5 -years and will utilize their business to
help those who cannot find employment due to personal past issues to take
advantage of equitable and gainful employment.
• Microloan amount request is: $25,000
• There will be a few contingencies prior to the loan being executed.
• Five-year loan with the first six -months as interest only payments.
• Opening planned for April 2019,
Mayor Schor noted that this is a great project and will be a big part of the continued
growth of Southwest Lansing. 517 Coffee will be part of the solid progress being made
in the intersection of Holmes & Pleasant Grove, which will see a new parking lot, grass
areas and state-of-the-art town square.
Donaldson inquired if the City will be providing any financial assistance and resources
into this area/project to help maintain this for long-term growth and sustainability.
Mayor Schor advised that he is working closely with City Council and area businesses to
put many resources and a strong commitment to ensure the success of this large-scale
project. Schaible noted that there is a strong focus on this area and great strides have
been made to improve the overall quality of life for this tight -knit community.
Motion: Coleman moved to approve the $25,000 Microloan for 517 Coffee, to be
paid over the next five -years as presented and place on file. Motion
seconded by Schaible.
Yeas: Five (5) - Chair Ragan, Mayor Schor, Jones, Coleman, Boyd, Schaible
Abstain: Two (2) - Johnson and Donaldson
Absent: One (1) - Butler III
Nays: Zero (0)
Professional Liability/D&O Insurance (Discussion)
Dorshimer provided an update on the LEDC, LBRA and TIFA Board of Directors
professional liability and D&O insurance. Dorshimer introduced Steve Owen, Foster -Swift
and Peter Dewan, Lyman Sheets, who provided the following points of discussion:
• Owen - The City Attorney has advised they [the City] cannot indemnify this
board or any of the boards represented by the City of Lansing
• Owen - There is no coverage or polices under the City of Lansing, therefore;
need to find outside Liability & D&O coverage
• Owen - Contracts entered into by the LEDC, LBRA, TIFA themselves can provide
other exposures
• Dewan - Has researched what is the necessary coverage that is
needed/required for the LBRA-TIFA Board of Directors
• Dewan - Has sought -out appropriate coverage for the LEDC, LBRA & TIFA Board
of Directors
Dewan - Overview of plan/policy coverage by Travelers Casualty and Surety
Company of America for the LEDC Board of Directors (Quote Option #I and
Quote Option #2) - Handout provided
Dewan - Overview of Public Officials Liability Insurance Proposal for LBRA and
TIFA - Handouts provided
Dewan -The LEDC does currently have a Directors & Officers (D&O) and Errors
and Omissions (EO) coverages
Discussion ensued over the types of potential exposures by the board as it relates to
D&O & E&O. Jones inquired if the LEDC Board of Directors can be added to the LEAP's
D&O insurance coverage,
Mayor Schor noted that LEAP has a contract to manage the LEDC and is inquiring why
this professional liability coverage is not covered by them [LEAP]. Owen advised that
the goal is to provide coverage for each of the directors to assist them if any legal issues
arise. Chair Ragan inquired how the LEDC Board of Directors is at exposure if there are
no paid staff. Dewan noted the coverage being presented for consideration is for lines
of coverage for individuals on the board. Owen noted this is more of consideration of
what the risk and exposure is based on the contract held with LEAP and the City of
Lansing. Discussion occurred over governmental immunity, as indicated by the City of
Attorney's office. Schaible noted that we need further discussion on what the board's
actual liability/exposure is and consider if there is enough risk to warrant getting these
polices. Jones noted that this discussion today hinges on whether we have
governmental immunity and requires further considerations. Schaible agreed to look at
the current LEDC Act and report back at a future LEDC meeting.
Approval of LEDC Board Meeting Minutes - Friday, October 5, 2018
MOTION: Jones moved to approve the LEDC meeting minutes from the Friday,
October 5, 2018 LEDC Board of Director's meeting as presented. Motion
seconded by Johnson.
YEAS: Unanimous. Motion carried.
LEDC Financial Statements - Period Ending September 30, 2018
Smith provided an overview of the LEDC Financial Statements, period ending
September 30, 2018, noting that these are reported for the first-quarter and the
financials are on -track and remain strong. Discussion ensued.
Motion: Johnson moved to receive the LEDC Financials, period ending September
30, 2018, as presented and place on file. Motion seconded by
Donaldson.
Yeas: Unanimous. Motion carried.
UDAG Report - Period Ending September 30, 2018
Smith provided an overview/update on the UDAG funds for the period ending
September 30, 2018, noting there were no changes to report. Discussion ensued.
3
Lansing Corridor Fagade Program (Update)
Mughal provided a brief update on the City of Lansing Corridor Fapade Grant Program
noting the following during her presentation:
• Grants available from $10,000 and above
• Micro-Fapade Grants available from under $10,000
• Design Program Award Grants available up to $2,000
• Projects: 41 Leads, 21 Prospects, 12 Qualified, 5 Underway
Jones inquired if there are any pictures/renderings of what these projects will look like
when completed. Mughal noted these have not been provided at this time.
Klein provided an update on the City of Lansing CDBG Grant Program, noting the
following during his presentation:
1910 Meat Market - $65,000 overall project costs and the CDGB funds cover
$49,000 of this
BW Hair Salon project update
Future designs include removing the bars from doors and windows and
incorporating these into the overall design/construction
Project Updates
Dorshimer provided the following project updates:
3600 Dunckle Road: The Brownfield Plan was approved by the City Council and the
project is scheduled to commence very soon. The $52 million project will start with the
remediation and demolition of the existing vacant 102,000 sf former hotel building.
Then construction will begin on the 286 -unit market rate multifamily apartment
community comprised of four 4 -story buildings. The project is scheduled to be
completed by June 30, 2021,
The Y -SITE Brownfield Project - Metro Place: Project is finally underway! The Building is
down, and the site is being prepared for redevelopment. The amended Brownfield
Plan is going through the approval process by the City Council. Council will hold a
public hearing on November 19 for the plan, and then consider final approval on
November 26. The $25 million project will build a four-story building with 145 loft
apartment units and 6,925 sf of commercial and retail space. The development should
be completed by March 2020.
LorAnn Oils - Plan #20A: The most recent expansion of LorAnn Oils (including the
addition of 3,200 sqft of warehouse and 3,700 sgft of office space) has been completed
and project activities are currently being reviewed for reimbursement via the Brownfield
Plan, Investment in this expansion totals $1.5 million and will create 9 FTEs,
930 W. Holmes, Former EDS Site - Plan #74: This Brownfield Plan is up for final approval on
Monday, November 5th. Property and Building improvements are estimated at
$4,185,550 of which more than $500,000 will be spent on public infrastructure
improvements and turning 2 acres of impervious asphalt surface parking into green
space.
Provident Place: 2200 East Michigan (Scott Gillespie) - demolition is over and much of
the environmental remediation is complete. The $7 million mixed-use development
includes the construction of a 4 -story building including 6,000 to 9,500 square feel of
office/retail space on the first floor and between 33 and 37 residential units above. The
new structure will also include underground parking, The project will be completed in
2019.
735 Hazel Street (formerly the Wing): The Brownfield Plan was approved by the Lansing
City Council, Phase I of this project is commencing and expected to require $14.5
million of investment. This phase will create an estimated 100,000 sf of small business
space and over 60 residential apartment units. Phase I is expected to be completed
by January of 2020.
Red Cedar Renaissance: The Developer has been given the deadline to have the initial
draft Brownfield Plan to the LBRA staff no later than 4:00 pm, November 9. Additionally,
a second deadline of 4:00 P.M. November 23rd, has been given to the Developer
whereby the Brownfield plan must be fully completed and correct, including sufficient
documentation that the two hotels will be a part of the project, and, an economic
impact study for the project.
Capital City Market: 600 East Michigan (Pat Gillespie) $41.5 million mixed use with Hotel,
Urban Market and Apartments. Council will hold a public hearing on November 19 for
the brownfield plan, and then consider final approval on November 26, 2018.
Open Forum for LEDC Board of Directors
Chair Ragan opened the floor to the LEDC Board Members, who provided the following
announcements/updates: None were provided.
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at
9:54 a.m.
K rl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
5
Lansing Economic Development Corporation
Board of Director's Meeting Minutes
Friday, December 7, 2018 - 8:30 AM
LEAP Office- Executive Boardroom
100 S Washington Avenue, Suite #201
Lansing, MI 48910
Members Present:
Members Absent:
Temp Members Present:
Staff Present:
Guests:
Public Present:
Recorded by:
Call to Order
Andrea Ragan, Calvin Jones, Shelley Boyd, Fred
Schaible,
Mayor Andy Schor, Thomas Donaldson
Blake Johnson, James Butler III, Kimberly Coleman
None
Karl Dorshimer, Marchelle Smith, Kris Klein,
Anum Mughal,
Paul Matz, Rehmann-Robson
Will Love, Rehmann-Robson
Dave Van Haaren, Triterra
Brian McGrain, City of Lansing
Janet Michaluk, State of Michigan -DEQ
None
Tedi R. Parsons, LEAP
Chair Ragan welcomed everyone and called the LEDC Board of Directors meeting to
order at 8:33 a.m. She asked Parsons to conduct rollcall and place on file. She noted
that we will be moving through each meeting (LEDC-LBRA-TIFA), as the auditors from
Rehmann-Robson are here and we want to be mindful of their time.
LEDC Audited Financial Statements -YE June 30, 2018 (ACTION)
Chair Ragan introduced Paul Matz and Will Love, Rehmann Robson, who provided an
overview of the LEDC Audited Financial Statements Year -End June 30, 2018. The
following was noted during Rehmann-Robson's presentation. The following was noted
during the presentation:
• Provided a brief overview of the audit process
• Overview of Auditors Communication with Those Charged with Governance
• Overview of the Independent Auditor's Report
• Overview of the Statement of Financial Position (Page 5 of 24)
• Overview of the Statements of Activities (Page 6 of 24)
• Overview of the Statement of Functional Expenses (Pages 7-8)
• Overview of the Statements of Cash Flows (Page 9 of 24)
• Overview of the Note Receivables (Page 15)
• Noted Footnote #8- Termination of Facilities Lease (Page 18)
• Noted Footnote # 10- Upcoming Accounting Pronouncement (Page 19)
Donaldson inquired about Footnote #9 -Loan Guarantee and inquired if this will be
addressed at a future meeting. Parsons noted that they are working with Dr. Joyce
Suber, Michigan Women's Foundation, who would like to continue the Guaranty Loan
Agreement and will be a future LEDC meeting.
1
MOTION: Jones moved to approve the LEDC Audited Financial Statements - YE
June 30, 2018, as presented and placed on file. Motion seconded by
Boyd.
YEAS: Unanimous, Motion carried,
Meeting Adjourned: 8:48 AM
Meeting Reconvened: 9:10 AM
Approval of LEDC Board Meeting Minutes - Friday, November 2, 2018
MOTION: Jones moved to approve the LEDC meeting minutes from the Friday,
November 2, 2018 LEDC Board of Director's meeting as presented. Motion
seconded by Boyd.
YEAS: Unanimous. Motion carried.
Professional Liability/D&O Insurance (Discussion/Update)
Dorshimer provided an update on the LEDC, LBRA and TIFA Board of Directors
professional liability and D&O insurance noting that he continues to work with Steven
Owen, Foster Swift (attorney for the LEDC). He advised that Owen has suggested the
LEDC board purchase liability and D&O insurance. Dorshimer will bring the proposals to
a future meeting. Schaible suggested that the LEDC look at exploring getting legislation
changed to allow liability coverage for LEDC boards. Discussion ensued.
Select Chair for 2019 LEDC Board of Directors Election - January 2019
Chair Ragan advised that Member Shelley Boyd has agreed to serve as the Chair for
the 2018 LEDC Board of Directors Nominating Committee. She asked Parsons to provide
an update on the election process, taking place at the upcoming election (January
2019)
Project Updates
Dorshimer provided the following project updates:
Volaris Lansing - 3600 Dunckle Brownfield Redevelopment
Address: 3600 Dunkle Road
Brownfield Plan #73
Developer: WP Lansing -Ml, LLC
The Developer in the process of getting site plan approval and permits from the City.
They plan to close on the land in January and start work immediately after that. The
$52 million project will begin with the remediation and demolition of the existing vacant
102,000 sf former hotel building. Then construction will begin on the 286 -unit market rate
multifamily apartment community comprised of four 4 -story buildings, The project is
scheduled to be completed by June 30, 2021.
Metro Park Place - (Former YMCA Site)
Address: 301 W. Lenawee
Brownfield Plan #54 Amendment #I
Developer: Y Site, LLC
The Building has been demolished and the site is being prepared for redevelopment.
The amended Brownfield Plan has been approved by the City Council. Construction
should begin by March of next year. The $25 million project will build a four-story
building with 145 loft apartment units and 6,925 sf of commercial and retail space. The
development should be completed by March 2020.
LorAnn Oils Redevelopment Project - Building Expansion
Address: 4518 Aurelius Road
Brownfield Plan #20a- Revision #I
Developer: LorAnn Oils
The most recent expansion of LorAnn Oils (including the addition of 3,200 sgft of
warehouse and 3,700 sgft of office space) has been completed and the Company's
project reimbursement request has been reviewed and approved for reimbursement by
LEAP staff. Investment in this expansion totals $1.5 million and will create 9 FTEs.
Project Name: Former EDS Site - Midwest Self Storage Development
Address: 930 W. Holmes
Brownfield Plan #74
Developer: 930 W Holmes, LLC (Midwest Self Storage)
This Brownfield Plan was approved by Council on November 5th. Developer has begun
working on interior demo, asbestos abatement and a new roof for the building, The
sites improvements will begin in the Spring. The Public Space Design Committee has
submitted its recommendations to the Developer's architect and they are being
incorporated in the final plans. Property and Building improvements are estimated at
$4,185,550 of which more than $500,000 will be spent on public infrastructure
improvements turning 2 acres of impervious asphalt surface parking into green space.
Project Name: Provident Place
Address: 2200 E. Michigan Ave,
Brownfield Plan #67
Developer: 2200 Block, LLC (The Gillespie Company)
2200 East Michigan (Scott Gillespie) - demolition is over and the environmental
remediation is complete. The site preparation is underway, and construction should
soon start. The $7 million mixed-use development includes the construction of a 4 -story
building including 6,000 to 9,500 square feet of office/retail space on the first floor and
between 33 and 37 residential units above. The new structure will also include
underground parking. The project will be completed in 2019.
Project Name: 735 Hazel Street (formerly the Wing)
Address: 735 Hazel Street
Brownfield Plan #70
Developer: 735 Hazel, LLC (Urban Systems)
The Brownfield Plan was approved by the Lansing City Council, The Developer is
working to close on their financing. The MDEQ has approved both the loan and grant
to the LBRA to fund part of the Brownfield Costs. The project is expected to begin in
March of next year and require $14.5 million of investment. This phase will create an
estimated 100,000 sf of small business space and over 60 residential apartment units.
Phase I is expected to be completed by January of 2020.
3
Project Name: Red Cedar Redevelopment Project
Address: 203 S. Clipper Street
Brownfield Plan #72
Developer: Continental/Ferguson Lansing, LLC
The Developer has submitted a draft Brownfield plan that includes the construction of
two hotels. Developer has also submitted an Economic Impact Study. The
Development Agreement (CDA) has been extended to Dec 14 to allow time to finalize
the draft Brownfield plan and agree on necessary amendments to the CDA.
Project Name: Capital City Market
Address: 600 E. Michigan
Brownfield Plan #75
Developer: 600 E. Michigan -Lansing, LLC (Gillespie Group)
The City Council has approved the Brownfield Plan. The Developer is planning to go to
the December 18, MSF Board to seek approval of State Tax Capture and a CRP Grant
of $1.5 million. With MSF Board approval the $41.5 million mixed use with Hotel, Urban
Market and Apartments will begin early next year.
Open Forum for LEDC Board of Directors
Chair Ragan opened the floor to the LEDC Board Members, who provided the following
announcements/updates:
:. .
Other Business & Public Comment
None.
Adjournment
There being no further business, Chair Ragan declared the LEDC meeting adjourned at
9:20 a.m.
Karl Dorshimer, Director of Economic Development
Lansing Economic Area Partnership (LEAP)
rd