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ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS

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ANNUAL REPORT FY2019 | 10 .22 .2019

IINTRODUCTION

01 Message from David Coulter, Oakland County Executive

IVPROFILES

06 Premier Soccer Academy 08 Plymouth Technology

IIEDC OVERVIEW

02 Message from Louis Orcutt, EDC Chairman 03 EDC Mission and Members

Premier Soccer Academy, Chesterfeld Twp.

IIIBFC OVERVIEW

04 Message from David Ellis, BFC Chairman 04 BFC Mission 05 BFC Members and Highlights

I INTRODUCTION

A MESSAGE FROM DAVID COULTER Oakland County Executive

The Oakland County Business Finance Corporation and Economic Development Corporation and the fnancing programs they administer have been driving forces for economic growth and job creation in Oakland County for nearly 40 years. Fiscal year 2019 was no different.

During 2019, BFC-funded projects totaled $7.5 million in investment, creating 146 new and retained jobs. Approved projects totaled over $18 million. The frst approvals on the 25-year SBA debenture loans were also received, marking a signifcant addition to the types of loans available to small-and medium-sized businesses. Across the country, the SBA 25-year loan is a popular option for applicants.

Special thanks go to the officers, trustees, directors and members of the BFC and EDC, particularly outgoing

EDC Chairman Louis Orcutt and outgoing BFC Chairman David Ellis. I thank them for their service. Special recognition also goes to the Financial Services Team, under the direction of Administrator Cathy Rasegan, for its frst-class work and commitment to the growth of Oakland County.

I understand the trust placed in me as the new county executive. I appreciate the work done by my predecessor and friend, the late L. Brooks Patterson. His love of Oakland County was undeniable and his impact on Oakland County will be felt for years to come.

As we move into 2020 our focus remains on helping entrepreneurs and small businesses thrive as we continue the economic growth that is vital to Oakland County’s prosperity.

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• I OAKLAND COUNTY

ECONOMIC DEVELOPMENT CORPORATION

II EDC OVERVIEW

A MESSAGE FROM LOUIS ORCUTT Chairman of the EDC I am honored to have served as chairman of the Economic Development Corporation of Oakland County for fscal years 2018 and 2019.

Over the course of its 39-year history, the EDC has issued tax exempt bonds for more than 114 companies representing $754 million in investment. These bonds have enabled the companies to secure long-term fnancing for fxed assets and has had a signifcant impact on job creation and retention. While new bond activity has slowed, we continue to receive inquiries and provide detailed information to potential applicants allowing them to make the most informed decision possible.

This year, Oakland County lost an incredible leader in County Executive L. Brooks Patterson. Brooks was truly a champion of economic development and its related impact on job creation, retention and increasing the tax base. Brooks’ support of the EDC, its board of directors and the fnancial team enabled us to further our mission and assist Oakland County businesses whenever possible.

We look forward to meeting and working with our new county executive, David Coulter, and to working with non-profts and manufacturing entities within Oakland County as they look to grow their businesses.

LOUIS ORCUTT, EDC CHAIRMAN

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EDC Mission The Oakland County Economic Development Corporation (EDC) is a proven, reliable partner with lenders and businesses since 1980. EDC's non-proft mission is to stimulate business capital investment, contribute to the area's employment, increase local tax base and provide needed public services.

The Tax-Exempt Revenue Bond Program provides qualifed manufacturing businesses and non-proft 501(c)(3) organizations with loans for capital expenditures. Eligible businesses are manufacturing businesses and non-proft 501(c) (3) organizations in Oakland County, Michigan— except for communities with active economic development corporations.

Eligible businesses can receive loans up to $10 million in capital expenditures. Non-proft 501(c)(3) organizations have no limit on their loan amount. Eligible projects include:

• Land acquisition• Land improvements• Building acquisition• Building construction• Building renovation• Machinery and equipment• Related soft costs

EDC Members 2019 Board of Directors Louis Orcutt............................................... Chairman John O'Brien.............................................. Vice Chairman James Cristbrook...................................... Secretary Catherine Rasegan.................................... Assistant Secretary Andy Meisner............................................. Treasurer Robert L. Schwartz.................................... Legal Counsel Daniel P. Hunter.......................................... Deputy Director EDCA

Appointed Members James Cristbrook......................................Shain Park Realtors Paul Hoge..................................................Signature Associates Patricia Jacobs .........................................North Oakland Co. Board of Realtors Donald Kegley...........................................Cunningham-Limp Company John Lominack..........................................Colliers International Andy Meisner ............................................Oakland County Treasurer John O’Brien .............................................Private Sector Louis Orcutt...............................................Hilltop Securities David Potts................................................David W. Potts, J.D., PLLC Jon Savoy..................................................Lee & Associates Rebecca Sorensen....................................UBS Financial Services

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• I OAKLAND COUNTY BUSINESS FINANCE CORPORATION

III BFC OVERVIEW

A MESSAGE FROM DAVID ELLIS Chairman of the BFC It has been my pleasure to serve as chairman of the OCBFC for this past year and serve as a member of the board of trustees for 26 years. The SBA 504 program has, and continues to be, an economic development tool that provides vital access to capital for business owners to expand and enhance their businesses.

The year was one of transition with a moderation of economic growth, competition among banks and a decrease in interest rates, with rates reaching a historical low at 3.35 percent.

For fscal year 2019, the BFC approved 12 loans totaling over $18 million in new investment. These projects will create and retain over 200 jobs. The BFC funded fve projects with a total investment of over $7.5

million. The funded and approved projects included a variety of banking partners and additional interest from our credit union partners as well.

This year one of the SBA 504 program’s biggest cheerleaders passed away. Under County Executive L. Brooks Patterson’s leadership, the 504 program built strong roots in the county and became a key tool to help increase economic development and job growth. He will be missed.

The BFC and its staff are proud of their accomplishments for 2019. Under the leadership of Cathy Rasegan, we look forward to another successful year in 2020 as we continue our journey of economic development and job creation in partnership with the Oakland County team and SBA.

DAVID ELLIS, BFC CHAIRMAN

BFC Mission Certified by the U.S. Small Business Administration (SBA) since 1982, the Oakland County Business Finance Corporation’s (BFC) non-proft mission is to help businesses expand and stimulate economic growth in the community.

The SBA 504 Loan Program provides qualifed small and medium size businesses with long-term, fxed-rate fnancing for the acquisition or construction of fxed

assets. Having helped close to 500 • Land acquisition businesses throughout Michigan achieve • Land improvements their goals, the BFC is a proven and • Building acquisition reliable partner with the SBA, lenders • Building construction and businesses. • Building renovation

BFC's loan amount is approximately • •

Machinery and equipment Related soft costs

$150,000 to $13 million. SBA maximums are $5 million for regular loans and $5.5

• Refnancing

million for manufacturing and energy loans. Eligible projects include:

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$

BFC Members 2019 Offcers David P. Ellis .................Chairman Jim Simone ..................President John Lominack.............Vice President Catherine Rasegan ......Secretary Andy Meisner ...............Treasurer Thomas A. Kabel..........Legal Counsel Daniel P. Hunter............Deputy Director EDCA

Board of Trustees Steve Ball .....................JP Morgan Chase Bank Katherine Brown ..........Community Member David P. Ellis .................Old National Bank Violet Gintsis ................Community Member Catherine Rasegan ......Oakland County Economic Development Barry Levine .................Community Member John Lominack.............Colliers International Andy Meisner ...............Oakland County Treasurer John O’Brien ................Community Member Jim Simone ..................Bank Mi Board David Shindel ...............Shindel Rock and Associates, P.C. Joann Van Tassel .........Community Member

BFC Highlights 352Jobs Created/Retained

$7,534,324 in Funded Loans

5 New Loans Funded

12 New Loans Approved

$18,398,076 in Project Investment

PORTFOLIO ANALYSIS BY INDUSTRY TYPE

53% Service

19% Manufacturing

14% Wholesale Distribution

11% Retail

3% Construction

10 Year 20 Year 25 Year Debentures Debentures Debentures FY

2019 SB

A 504 R

AT

ES

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

-

5.59%

-

5.06%

-

4.63%

-

4.37%

-

3.94%

-

3.56%

5.49%

5.59%

4.93%

4.76%

4.65%

4.59%

4.37%

4.27%

3.98%

3.91%

3.53%

3.36%

5.53%

5.64%

4.99%

4.88%

4.77%

4.74%

4.53%

4.39%

4.09%

4.01%

3.63%

3.46%

Universal Plumbing and Sewage, Clinton Twp. 5

"THE WHOLE PROCESS WAS EXTREMELY EASY AND CONVENIENT." JOE GALLAGHER, OWNER PREMIER SOCCER ACADEMY

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IV PROFILES

PREMIER SOCCER ACADEMY TheSportsAcademyOnline.com • Chesterfeld For many people, the ultimate goal is to make their passion their career. That is exactly what Joe Gallagher, owner of Premier Soccer Academy – simply known as The Sports Academy – in Chesterfeld Township, has done with his love of sports and coaching.

“When I frst planned my career,” said Gallagher, “I wanted to teach and coach soccer. After several years of coaching I had the opportunity to convert this former manufacturing facility into indoor athletic space.”

Gallagher frst rented the building, located at 30845 23 Mile Road in Chesterfeld Township, in 2007, “then this became my life and vision,” referring to his 52,000 square foot facility.

With the help of his bank, Level One, and the Oakland County Business Finance Corporation (BFC), Gallagher secured funding to purchase the building, which provides indoor and outdoor soccer felds for recreation and school leagues, coaching, gymnastic events, fag football and private events such as parties.

“I can’t say enough about Level One, my attorney at Plunkett Cooney and the folks at the Oakland County BFC,” he said. “The whole process was extremely easy and convenient.”

Gallagher said that now as the owner of the facility he can really think about his long-term vision, which is to continually expand his service to the community. In addition to the indoor services he offers – vital during the long, cold Michigan winters – he rents outdoor space from neighbor Henry Ford Hospital, which he uses for outdoor soccer felds.

The whole process allowed him to develop his commitment as well as create jobs. He has a staff that oversees daily operations, as well as professional opportunities for referees, office managers, janitorial staff and coaches for training and development programs.

This year, Premier Soccer Academy celebrates its 12th year in business. Gallagher looks forward to many more years to serving the community.

TOTAL PROJECT

$2.387 MILLION BANK LEVEL ONE BANK

JOBS CREATED/RETAINED

55

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PLYMOUTH TECHNOLOGY PlymouthTechnology.com • Rochester Hills Plymouth Technology is a certifed woman-owned business located in Rochester Hills. Founded in 1991, it provides wastewater, boiler, cooling and reverse osmosis treatment chemicals and feed equipment to manufacturers throughout the Midwest. Its team members solve the most diffcult problems for conventional water treatment and recommends programs and products to improve water quality in manufacturing settings.

With the help of the Oakland County Business Finance Corp., Plymouth Technology obtained an SBA 504 loan to purchase a larger facility, quadrupling its manufacturing capacity from 5,000 to 20,000 square feet.

“With the loan we received we not only were able to increase our production capacity, but we also hired additional employees for our lab, sales, manufacturing and in our warehouse,” said Amanda Richie, owner and CEO. “We even added an additional shift.”

The added space and additional staff – which Plymouth refers collectively asits “Wastewater Treatment Experts” –allowed it to expand its analytical labwork, research and development techcenter and its instrument room, whichtests water in parts per trillion.

“Oakland County BFC really made the entire process very easy,” said Richie. “We already meet with the county proactively, so when we were ready to expand, we simply told them what we were looking to do, and they assisted us at every step.”

Plymouth believes that its “relentless commitment” to customer service has been the key to its sustained growth for nearly 30 years.

TOTAL PROJECT

$2.149 MILLIONBANK CHEMICAL BANK (a division of TCF National Bank)

JOBS CREATED/RETAINED

28

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AMANDA RICHIE, OWNER & CEO, PLYMOUTH TECHNOLOGY

OAKLAND COUNTY BFC REALLY MADE THE ENTIRE PROCESS VERY EASY."

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OAKLAND COUNTY FINANCIAL SERVICES STAFF Administrator Financial Services Loan & Finance Offcer Catherine Rasegan William Zaglaniczny (248) 858-5101 (248) 858-2016 raseganc@oakgov.com zaglanicznyw@oakgov.com

Senior Loan & Finance Offcer Loan Closer Kevin Congdon Aubrey Cadieux (248) 858-0868 (248) 858-0765 congdonk@oakgov.com cadieuxa@oakgov.com

Portfolio Coordinator Joan Coon (248) 858-0794 coonj@oakgov.com

OakGov.com/BFC

Produced with the support of the Oakland County Board of Commissioners