ANNUAL REPORTF Y 2 0 1 7 | 1 0 . 1 7 . 2 0 1 7

Fettes Manufacturing, Sterling H

eights

01 Message from L. Brooks Patterson, Oakland County Executive

02 Message from Violet Gintsis, BFC Chairwoman03 Message from Paul Hoge, EDC Chairman

04 BFC Mission and Members05 EDC Mission and Members06 BFC Highlights07 EDC Highlights

08 Zanetti Cosmetic and General Dentistry10 Fettes Manufacturing 12 Ultimate Soccer Arenas

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II IIIINTRODUCTION

PROFILES

CHAIRPERSON MESSAGES BFC & EDC

Ultimate Soccer Arenas, Pontiac

The Oakland County Business Finance Corporation and the Oakland County Economic Development Corporation, now in their 37th year, continue to be catalysts for business growth and expansion in the region. Since inception, the two have generated total investment of more than $1.3 billion while creating or retaining more than 30,000 jobs.

FY 2017 was a strong year for the BFC with more than $35.3 million of new investment for 19 projects funded. The increase in funded projects over FY 16 was an impressive 82 percent in new investment.

Also of note was the BFC’s SBA 504 new approvals, which included 23 projects totaling $36.7 million of new investment and the creation and retention of 551 jobs.

In 2017, the EDC induced one project for a total of $14.5 million, issuing $11.1 million for Orchard Lake Schools in Orchard Lake. Since its inception, the EDC has funded 112 projects totaling $736 million in investment and creating or retaining 14,930 jobs.

Congratulations to the governing boards of both entities, as well as the Financial Services Team under the direction of Mary Langhauser, for their commitment to our business community. Thank you for your hard work on behalf of Oakland County.

Special thanks to Violet Gintsis and Paul Hoge for their leadership as chairs of the BFC and EDC over the past two years.

A special note of thanks goes to the invaluable members of the BFC and EDC Boards, especially Diane Jones, who is retiring after 26 years of service to the BFC. Enjoy your time in Florida.

New applicants will enjoy reduced fees, and we expect rates to remain low. As such, I remain confident the BFC and the EDC will continue to positively impact the region’s economy in 2018.

IA MESSAGE FROM L. BROOKS PATTERSONOakland County Executive

1Ultimate Soccer Arenas, Pontiac

INTRODUCTION

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As chairwoman of the Oakland County Business Finance Corporation, I am proud to say that the SBA 504 Loan Program is a strong economic development tool that has proven its worth. As the BFC begins its 37th year of operation, it is clear that the BFC Board of Trustees and the staff are dedicated to the economic development mission of this program. The BFC continues to support small businesses by helping them expand their operations and create jobs within the local community.

FY2017 has been a good year for the BFC with 23 new SBA 504 loans approved totaling over $36.6 million in new investment. These 23 newly approved loans will help to retain or create 858 jobs. Funded loans included 19 projects for a total investment of $35.3 million. These projects ranged in size from $325,000 to over $8 million. New and retained jobs total 551 for these funded projects. Job creation is one of the most important aspects of the SBA 504 Loan Program and is certainly the hallmark of economic development.

As the BFC begins its new year, we will be saying goodbye to one of our long standing board members, Diane Jones, who will be retiring to Florida. Diane’s dedication to the BFC over the past 26 years has been outstanding. In addition to her position on the board, she has continuously been a member of the Loan Review Committee. As longtime commercial lender, Diane has brought a wealth of knowledge to the BFC. Diane’s expertise and passion for small business will be greatly missed.

The Oakland County Business Finance Corporation is looking forward to 2018 and all of the new projects as we continue our mission of economic development. As our new fiscal year begins, my time as chairwoman of the BFC will conclude. It has been an honor to serve in this capacity and I look forward to continuing to serve on the Board of Trustees of the BFC in the coming years.

A MESSAGE FROM VIOLET GINTSISChairwoman of the BFC

VIOLET GINTSIS, BFC CHAIRWOMAN

II CHAIRPERSON MESSAGES

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VIOLET GINTSIS, BFC CHAIRWOMAN

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As Chairman of the Oakland County Economic Development Corporation, I take pride in all of the projects that the EDC has helped finance over its 37 year history.

These projects have ranged from small manufacturers to non-profit organizations such as Orchard Lake Schools in Orchard Lake, Michigan. In fiscal 2017, the EDC refinanced $11.1 million in bonds and other debt that was used for the school’s expansion from 2001 to 2013 including a new science center, library, ice arena and dormitory. This refinancing provides the school a significant reduction in interest paid on this debt. Outstanding educational institutions like Orchard Lake Schools, which was founded in 1885 and has been located in the county since 1909, help to assure the economic vitality and quality of life in Oakland County.

The EDC has over the past 37 years issued tax exempt bonds for 112 projects totaling $736 million in investment. This success would not have been possible without the efforts of the EDC Board of Directors. The board’s dedication to Oakland County’s economic development is evidenced by its long serving board members. It has been my honor over the last two years to serve as the chairman of this board, and I look forward to continuing to serve in the years to come.

A MESSAGE FROM PAUL HOGE

PAUL HOGE, EDC CHAIRMAN

Chairman of the EDC

BFC Members 2017OfficersViolet Gintsis ........................................ ChairwomanDavid P. Ellis ......................................... PresidentJim Simone .......................................... Vice PresidentMary P. Langhauser .............................. SecretaryAndy Meisner ....................................... TreasurerThomas A. Kabel .................................. Legal Counsel Daniel P. Hunter ................................... Deputy Director Economic Development

Board of TrusteesSteve Ball ............................................. JP Morgan Chase BankKatherine Brown .................................. Community MemberDavid P. Ellis ......................................... Old National BankViolet Gintsis ........................................ Mercantile BankMartin Hollander .................................. Hollander, Ellison & Associates, P.C.Diane Jones ......................................... Community MemberMary P. Langhauser .............................. Oakland County Economic DevelopmentBarry Levine ......................................... Community MemberJohn Lominack ..................................... Colliers InternationalAndy Meisner ....................................... Oakland County Treasurer John O’Brien ........................................ Community MemberFred Seeley .......................................... Ludwig & SeeleyJim Simone .......................................... Bank of Ann ArborDavid Shindel ...................................... ShindelRockJoann Van Tassel................................... Community Member

III BFC & EDC

BFC MissionCertified by the U.S. Small Business Administration (SBA) since1982, the Oakland County Business Finance Corporation’s (BFC) non-profit mission is to help businesses expand and stimulate economic growth in the community.

The SBA 504 Loan Program provides qualified small and medium size businesses with long-term, fixed-rate financing for the acquisition or construction of fixed assets. Having helped close to 500 businesses throughout Michigan achieve their goals, the BFC is a proven and reliable partner with the SBA, lenders and businesses.

BFC's loan amount is approximately $150,000 to $13 million. SBA maximums are $5 million for regular loans and $5.5 million for manufacturing and energy loans. Eligible projects include:

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

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EDC Members 2017Board of Directors Paul Hoge ............................................ ChairmanLouis Orcutt ......................................... Vice ChairmanJames Cristbrook .................................. SecretaryMary P. Langhauser .............................. Assistant SecretaryAndy Meisner ....................................... TreasurerRobert L. Schwartz ............................... Legal CounselDaniel P. Hunter ................................... Deputy Director EDCA

Appointed MembersJames Cristbrook ..................................Shain Park RealtorsPaul Hoge ............................................Signature AssociatesMartin Hollander ..................................Hollander, Ellison & Associates, P.C.Patricia Jacobs .....................................North Oakland Co. Board of RealtorsDonald Kegley .....................................Cunningham-Limp CompanyAndy Meisner .......................................Oakland County TreasurerJohn O’Brien ........................................Private SectorLouis Orcutt .........................................Fifth Third SecuritiesDavid Potts ..........................................David W. Potts, J.D., PLLCJon Savoy ............................................Lee & AssociatesFred Seeley ..........................................Ludwig & SeeleyRebecca Sorensen ................................UBS Financial Services

EDC MissionThe Oakland County Economic Development Corporation (EDC) is a proven, reliable partner with lenders and businesses since 1980. EDC's non-profit 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 qualified manufacturing businesses and non-profit 501(c)(3) organizations with loans for capital expenditures. Eligible businesses are manufacturing businesses and non-profit 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-profit 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

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23NEW LOANS APPROVED

$35,271,343 IN FUNDED LOANS

$36,653,520 IN PROJECT INVESTMENT

BFC HIGHLIGHTSFY2017

551 JOBS CREATED/RETAINED

OAKLAND COUNTY BFC SERVES ALL OF MICHIGAN.The 19 loans funded in FY2017 were concentrated in Macomb (6), Oakland (11) and Wayne (2) counties.

19NEW LOANS FUNDED

7FY2017 SBA 504 RATES

10 YEAR DEBENTURES

20 YEAR DEBENTURES

October - 4.261%

November 4.669% 4.357%

December - 4.596%

January 4.598% 4.585%

February - 4.607%

March 4.817% 4.827%

April - 4.625%

May 4.514% 4.668%

June - 4.596%

July 4.497% 4.766%

August - 4.537%

September 4.152% 4.376%

PORTFOLIO ANALYSIS BY INDUSTRY TYPE

18% MANUFACTURING

56% SERVICE

11% RETAIL

13% WHOLESALE DISTRIBUTION

2% CONSTRUCTION

EDC HIGHLIGHTSFY2017

$14,500,000 INDUCED PROJECTS

$11,125,000 BOND ISSUED

BONDS ISSUEDORCHARD LAKE SCHOOLS

Orchard Lake Schools

"THE RATES ARE GOOD AND THE PREPAYMENT IS MINIMAL. I WOULD TELL OTHERS TO DEFINITELY CONSIDER THE SBA 504 LOAN."DR. JEFF Z ANE T TI, OWNER Z ANE T TI COSME TIC AND GENER AL DENTISTRY

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ZanettiSmiles.com • FarmingtonTOTAL PROJECT

$595,000BANK LEVEL ONE BANK

JOBS CREATED/RETAINED

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Dr. Jeff Zanetti smiles a lot these days. And so do his patients. It’s easy for them since Dr. Zanetti takes care of their cosmetic and general dentistry needs.

He’s been providing services to his patients since 1987, when he started his first practice in a small leased space. Since then, the practice has grown into the office he constructed in 2000 on Grand River Avenue. His facility has five treatment rooms, an airy and bright waiting room, nine staff members, a northern view with multiple bird feeders and had the burden of a high-interest property loan. “Thank goodness the Oakland County Business Finance Corporation was there,” he smiles, naturally.

“Our new lender, Level One Bank, referred us to the SBA 504 loan program through the BFC to refinance our existing high interest bank loan. It was a pretty seamless process.” He credits BFC staff with helping him through the loan approval and closing. “The rates are good and the prepayment is minimal. I would tell others to definitely consider the SBA 504 loan. It takes a few extra steps, but it is well worth the savings.” Which makes Zanetti smile. A lot.

IV PROFILES

ZANETTI COSMETIC AND GENERAL DENTISTRY

FETTES MANUFACTURINGPcmFettes.com • Sterling HeightsIt’s like the plot out of a classic Hollywood movie: “Local boy goes to work in his neighbor’s shop and ends up buying the company.” Except this is no fantasy. This is Robert Martin’s true-life story.

Twenty-five years ago, he started working as a lathe operator for Fettes Manufacturing, a CNC machine shop which since 1955 has specialized in prototype and production pieces for industries including defense, automotive and food processing. Martin jumped at the chance to purchase the successful Sterling Heights company when the opportunity arose. “There’s a lot to buying a business,” Martin says in his typical understated way.

In order to finance the 34,500 square foot manufacturing facility, Martin’s contact at Huntington Bank suggested working with the Oakland County Business Finance Corporation. “My first thought was, ‘But we’re in Macomb County,’” said Martin, not realizing that the BFC provides SBA504 services statewide. After hearing the BFC explain how the process works, he had no hesitation to use the program. “I asked several times about how the process works and I always got the same straight answers. The BFC was always there to help me every step along the way.”

As the new owner of a well-respected company employing 50 employees, Martin knows he made the right decision. Another happy Hollywood ending.

TOTAL PROJECT

$1,500,000BANK THE HUNTINGTON BANK

JOBS CREATED/RETAINED

47

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FETTES MANUFACTURING

THE BFC WAS ALWAYS THERE TO HELP ME EVERY STEP ALONG THE WAY."

"ROBERT MARTIN, OWNER, FE T TES MANUFAC TURING

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IF NOT FOR THE BFC...THIS DEAL WOULD NEVER HAVE HAPPENED. " "G E O R G E D E R D E R I A N J R . , OWNER, U LT I M AT E S O CC E R A R E N A S

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ULTIMATE SOCCER ARENASUltimateSoccerArenas.com • PontiacThe sign above the entrance to the Ultimate Soccer Arenas in Pontiac reads, “We Don’t Play Indoor Soccer . . . We Play Soccer Indoors.” Owner George Derderian Jr. means it. The 10-year-old company has not compromised on creating a state of the art soccer and lacrosse facility. The 32-acre site contains three full-sized regulation soccer fields and one smaller field indoors, plus another outdoor field and room to grow. In addition, the complex houses a restaurant/coffee shop, a pro shop, a sports rehab center, party rooms comfortable offices and locker rooms, and a mezzanine viewing deck above all the indoor fields.

The original 266,400 square-foot facility was built in 2007 with the help of the SBA 504 Loan Program. In 2016, the company was ready to expand again with an addition bringing the facility to 365,000 square feet, making Ultimate Soccer the largest

non-professional soccer facility in the world. Financing for the addition would again need the help of the SBA 504 loan program and a partnering financial institution. “No one wanted to finance a soccer complex,” recalls Derderian. “Bank financing was nearly impossible. If not for the Oakland County Business Finance Corporation and Lake Trust Credit Union, this deal would never have happened.” SBA 504 increased lending limits of $5 million helped Ultimate Soccer grow into the world class facility that it is today.

“Our fields are used year-round. We host professional soccer, youth clubs, training events, lacrosse teams, summer camps, even special events like graduation ceremonies. We’ve grown every year since we opened. We had over 1.3 million people use the facility just this past year.” That makes 1.3 million happy customers who’ve read the sign above the entrance.

TOTAL PROJECT

$8,209,407BANK LAKE TRUST CREDIT UNION

JOBS CREATED/RETAINED

29

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AdvantageOakland.com

OAKLAND COUNTY FINANCIAL SERVICES STAFFAdministrator Financial ServicesMary Langhauser(248) 858-0879langhauserm@oakgov.com

Loan & Finance OfficerCatherine Rasegan(248) 858-5101raseganc@oakgov.com

Loan & Finance OfficerKevin Congdon(248) 858-0868congdonk@oakgov.com

Produced with the support of the Oakland County Board of Commissioners

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

Loan CoordinatorWilliam Zaglaniczny(248) 858-2016zaglanicznyw@oakgov.com

Loan CloserAubrey Cadieux(248) 858-0765cadieuxa@oakgov.com