HomeMy WebLinkAboutMinutes - 44th - July 8, 1982 signedMINUTES OF A REGULAR MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION
OF LIVONIA
A Regular Meeting of the Economic Development Corporation of Livonia was called
to order by the Chairman, Peter Ventura, at approximately 5:45 p.m., July 8,
1982, in the Council Chambers of the City Hall, 33000 Civic Center Drive, Livonia,
Michigan. In the absence of the Secretary, the Chairman appointed Mrs. Kavanaugh
Acting Secretary. She called the roll:
Directors Present; Mr. Kenneth Hale
Mr. Robert Jankowski
Ms. Helen Kavanaugh
Mr. Angelo Plakas
Mr. Peter Ventura
Directors Absent; Mr, Frank Hand
Mr, Alan Helmkamp
Mr. Ron Mardiros
Mr. Stanley Telman
Others Present;
Mr, Greg Pitoniak, Wayne County EDC
Ms. Debra Schneider, Wayne County EDC
Mr. Stuart Baker, Schoolcraft College
Mr. Daniel J, Gilmartin, Executive Director
Ms. Marie K, King, Recording Secretary
On a motion by Mr. Hale, supported by Mr. Plakas, it was
#82-270 RESOLVED, that the minutes of May 13, 1982, of the
Regular Meeting of the Economic Development Corporation of Livonia
be approved as submitted.
A roll call vote was taken on the foregoing motion with the following results:
AYES: Hale, Jankowski, Kavanaugh, Plakas, Ventura
NAYS: None
The Chairman declared the resolution adopted.
The Chairman introduced Mr. Pitoniak and Ms. Schneider from the Wayne County
EDC and Mr. Baker from Schoolcraft College. The Economic Development Corporation
of Wayne County has a program underway called the Automotive Community Adjustment
Program (ACAP). Mr, Pitoniak explained that the program is designed to aid the
automotive suppliers to be prepared for some significant changes in manufacturing
procedures and techniques based on the Japanese method of assembly known as "Just -
In -Time" assembly. This method of production would reduce inventories within the
automotive industry as a whole and would provide better quality. It would save
about $700 per car. The supplier would have to supply quality parts on time. In
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order for this production method to work, the suppliers must be located within
100 to 150 miles of the manufacturing plants. This would put Wayne County in
the forefront. Mr. Pitoniak cited an example where this is already working.
An aluminum casting company presently located out of the state has been given
two years by General Motors to get a plant located closer to their assembly
plants. Accordingly, they have identified a building in Romulus that they are
planning to buy. With over 1300 automotive suppliers identified in Wayne County,
the potential is great. Over 100 of these suppliers are in Livonia. In order to
inform the Wayne County suppliers of their opportunity to get an edge on their
competition, the EDC of Wayne County will hold two seminars in the Fall. By
combining education, financial, technical and management assistance and job
training with the community's existing economic development resources, Wayne
County's suppliers will be better able to make the necessary adjustments to
profit from their location advantage.
Mr. Hale asked where the seminars would be located. Mr. Pitoniak said they
would be held in Dearborn. Dearborn is central for most manufacturers.
Mr. Ventura asked how the Livonia EDC could be of assistance to Wayne County.
Mr. Pitoniak suggested a letter might be sent from this group making them
aware of the ACAP program and "Just -In -Time" production. The letter could point
out that there will be further information coming. Certain selected companies
could be contacted personally.
Mr. Hale asked if a company showed an interest, who should it be directed
to -- Livonia or Wayne County?
Mr. Pitoniak said it should be directed to Livonia first, then if the Livonia
EDC cannot be of assistance, it should be referred to the Wayne County EDC.
Mr. Jankowski asked if the Big 3 might be of some help in identifying
their suppliers.
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Mr. Pitoniak said the Big 3 cannot show any preference for one county over
another. However, they can release a list of suppliers outside a certain radius.
Ms. Schneider said she is on the Business Attraction and Expansion Council
(BAEC) and this is a good source of information. This Council makes referrals
and has development information for businesses interested in locating or expanding
within the region; and marketing information for location decisions and market
potentials. Ms. Schneider said that this program is the only one like it
available anywhere in the country.
The Chairman, Mr. Ventura, said he would direct Mr. Gilmartin to follow up
on this program and keep the EDC Board apprised of what steps we should be taking,
and we will consider this at subsequent meetings.
Mr. Baker of Schoolcraft College then spoke about the program which
Schoolcraft is offering to new and existing businesses to train people for
various types of work, An example of how this program has worked is the new
Holidome. Schoolcraft worked with the MESC in the hiring and training of food
service people, hotel clerks, receptionists etc, Schoolcraft personnel trained
the people right at the Holidome. The program is possible because of funds
received from the State to assist new and existing businesses in the area with
training to maintain a high level of performance in all areas.
Mr. Baker said the Chamber will have an article on this program in its
next Chamber Newsletter.
The next item on the agenda was a report from the Seminar Committee. Mr.
Ken Hale, Chairman of the Committee, passed out a report he has prepared on a
proposed EDC seminar. The proposed site would be the Holidome; proposed time
would be 5:00 p.m. to 7:00 p.m., with an estimated attendance of about 100 people.
The seminar would be conducted by Dennis Neiman regarding the EDC procedure and
its advantages; and then there could be a brief presentation by a banking official,
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Mr. Gilmartin informed the EDC that a retention committee had been formed
composed of City officials and Chamber people. On July 22, 7:30 a.m., Dan Redstone
will be hosting a coffee and donuts meeting with four local bank presidents.
Anyone interested in attending the meeting is certainly welcome. The idea is
to persuade the local bankers to break loose some money for growth in the community.
This, in turn, would help our EDC applicants get financing, and proceed with their
projects.
All of the Directors agreed with the general concept of the seminar. Mr.
Gilmartin said he would hope that more than 100 people would attend. He did
not think contractors, builders, and developers should be excluded from the
guest list, as well as local businessmen.
Mr. Plakas suggested that perhaps Jeanne Paluzzi, a public relations person
in Livonia, or someone like her, could be of assistance in putting this event
together and publicizing it properly.
Then, there was some discussion as to whether this is a good time to have
a seminar like this. If the business person is interested in pursuing the EDC
financing but can't get any bank to buy the bonds, he is right back where he
started.
Mr. Ventura suggested that the committee contact Dennis Neiman and see if
he thinks he could be of some assistance in helping these people to sell their
bonds if they decide to pursue EDC financing. The Committee will report their
findings at the August meeting.
On a motion by Mr. Hale, supported by Mrs. Kavanaugh, it was
#82-271 RESOLVED, that the inducement resolutions issued to the
Livonia Pavilion, Peter DeMarco, Bailey Co., Dr. Ajluni, and John
Dinan Co. be rescinded for failure to comply with a previous
corporation stipulation that all outstanding obligations be brought
up to date.
A roll call vote was taken on the foregoing motion with the following results:
AYES: Hale, Jankowski, Kavanaugh, Plakas, Ventura
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NAYS: None
The Chairman declared the resolution adopted.
The Treasurer, Mrs. Kavanaugh, gave the Treasurer's Report. There is
currently $22,948.01 in the various accounts. 0f that amount, $21,612.76 is
invested in C.D. Accounts; $1,206.60 is in the Savings Account; and $128.65
is in the Checking Account.
0n a motion by Mr. Plakas, supported by Mr. Jankowski, it was
#82-272 RESOLVED, that the Treasurer's Report be accepted as
read by Mrs. Kavanaugh.
A roll call vote was taken on the foregoing motion with the following results:
AYES: Hale, Jankowski, Kavanaugh, Plakas, Ventura
NAYS: None
The Chairman declared the resolution adopted.
0n a motion by Mr. Plakas, supported by Mr. Hale, and unanimously
adopted, it was
#82-273 RESOLVED, that the Economic Development Corporation Regular
Meeting of July 8, 1982, be adjourned at 6:45 p.m.
Respectfully submitted,
Helen Kavanaugh
Acting Secretary
HK/mk