Sterling Heights City Council Meeting - May 6, 2026

The Sterling Heights City Council met on May 6, 2026, to consider several major items including approval of a transformational brownfield plan for the Lakeside City Center redevelopment, adoption of the 2026-2027 fiscal year budget, introduction of ordinances banning Kratom sales and updating motor carrier penalties, and establishment of an industrial development district. The meeting included public hearings, council discussion, and unanimous votes on all agenda items.

Consent Calendar

• The council approved the agenda as presented and later approved the consent agenda without separate discussion.

Public Comments & Testimony

• Jim Susek (resident) asked about use of local contractors, prevailing wage, and safety standards for the Lakeside project. He noted the developer is from Florida. The council took notes; the developer later responded.
• Don Tiki (IBEW Local 58) questioned how state tax revenue estimates were calculated, including assumptions about wages and worker mix.
• Greg Schindler spoke during communications from citizens, reiterating his interest in becoming a poet laureate for the city. He offered to submit a formal request.
• Elizabeth Coppolo (Sterling Heights Drug Free Coalition) promoted a free family fun day on May 16 and thanked the council for considering a Kratom ban. She received thanks from Mr. Kashubsky and council members for her service.

Public Hearing: Lakeside City Center Brownfield Plan

• Luke Bonner (senior economic development advisor) and Colin Carby (Lionheart/Out of the Box Ventures) presented the Act 381 combined transformational brownfield plan. The initial phase includes 1,300 multifamily units, 180 active adult units, 150,000 sq ft of retail, and a $573 million project cost. The total tax increment financing (TIF) request is $270 million over 30 years, including a city bond of $27 million (estimated principal/interest $51 million) and a developer bond of $43 million (estimated $147 million). The city will capture excess TIF revenue (estimated $64 million) split 50/50 with the developer, providing $32 million for eligible activities (e.g., satellite fire/police stations). The taxable value of Lakeside has declined from $49 million (2007) to $10 million; the city currently receives only $180,000 annually. After 30 years, the city could receive over $4 million annually in new tax revenue.
• Council Discussion: Council members raised concerns about local labor, responsible contracting, and the long wait for general fund benefit. Mayor Taylor supported the project, noting the city's bond is secured by a letter of credit and the developer's bond is not a city obligation. The council voted 7-0 to adopt the resolution.

Public Hearing: 2026-2027 Budget Adoption

• Jennifer Varney (finance director) presented the proposed budget: total city fund budget $295 million (17.7% less than prior year due to capital project timing), general fund $136.5 million (2.5% increase mainly for personnel). Millage rate remains 17.5323 mills. Four amendments added $590,000 for street trees, police strategic plan, crosswalk striping, and sidewalk installation. Fund balance estimated at $43.3 million (31.8%). The budget includes 9 firefighters, a traffic safety engineer, $12.7 million for major roads, $6.5 million for neighborhood streets, and continued capital investments. Council praised Varney's service (her last budget). The ordinance passed 7-0.

Public Hearing: Industrial Development District at Merrill Road

• Dylan Clark (economic development manager) presented a request by Stag Industrial Holdings to establish an IDD at 42520 and 42600 Merrill Road. Stag owns the property and plans a new 90,000 sq ft industrial facility with $12 million investment. The IDD is the first step for potential tax abatements. A representative thanked the council. The resolution passed 7-0.

Ordinance Introductions

• Kratom Ban and Code Amendments: Assistant City Attorney Don Dinult introduced an ordinance banning the sale and distribution of Kratom and updating chapters 35 and 49 of the city code to conform with state law. The ordinance also adds offenses for operating without insurance, firearm law updates, nitrous oxide prohibition, and vehicular nuisance impoundment to combat drag racing. Council approved introduction 6-1 (Mr. Radke voted against, arguing the drag racing provision should be separate). Final adoption will follow.
• Motor Carrier Ordinance Penalties: Chief Satterfield presented a traffic enforcement overview, noting increases in citations and stops, ranking #1 in Michigan for OWI arrests. He outlined initiatives including increased traffic bureau staffing, commercial motor vehicle enforcement, and "Operation Safe Streets" wolf pack enforcement. Assistant City Attorney Dinult explained that the ordinance updates penalties for the 1992 motor carrier ordinance to match state law, as a temporary fix until a full rewrite. The council approved introduction 7-0.

Key Outcomes

• Lakeside Brownfield Plan: Resolution adopted 7-0. Next step: Michigan Strategic Fund Board approval on June 23, 2026.
• 2026-2027 Budget: Appropriations ordinance adopted 7-0 with a total millage of 17.5323 mills.
• Industrial Development District: Resolution adopted 7-0.
• Kratom Ban and Code Amendments: Ordinance introduced (first reading) with a 6-1 vote; final adoption expected at next meeting.
• Motor Carrier Ordinance Penalties: Ordinance introduced (first reading) 7-0.
• The council moved into closed session (7-0) to consult with the city attorney on a confidential written opinion. No further public actions were taken.