Velocity incubator touts $600K in grants and $19.2M attracted in 2024 as Lakeside Town Center development advances

Sterling Heights’ economic development team and the city’s Velocity incubator presented progress and initiatives aimed at business retention, attraction and entrepreneurship as part of the FY26 budget workshop. The presentation emphasized the city’s engineering and manufacturing workforce strengths and described programs to support startup and second‑stage companies.

Why it matters: the city faces strong demand for industrial and manufacturing space and seeks to keep growing companies local through targeted programs and incentives. Velocity and the economic development office said their work supports local jobs, supplier networks and long‑term redevelopment goals such as the Lakeside Town Center.

Key points from the presentation - Workforce and defense corridor: Economic Development Advisor Luke Bonner described Sterling Heights as having a high concentration of engineering talent (a location quotient the presentation listed as about 5.5) and noted the city’s position in the regional defense and manufacturing corridor. Bonner characterized Lakeside Town Center as potentially the city’s single largest development project. - Velocity results and programming: Paula McPherson, the entrepreneurship and innovation advisor, said Velocity awarded more than $600,000 in direct grants in 2024; attracted about $19.2 million in investment to local businesses; started 31 new companies; and served roughly 256 clients across accelerator and incubator programs. Velocity is operating multiple accelerator tracks (small business, high-tech and med‑tech) and runs recurring events and mentoring programs. - Success stories: presenters cited client examples including Backyard Bats (a Canadian company now operating in the U.S. through Velocity and pursuing Major League Baseball approval), Imagio Glass Design (received grants and has local hires), and Ares Technologies (received a $5,000 gap assessment and won an $1.8M contract after support toward CMMC certification). - Staffing and funding: the proposed FY26 budget includes an economic development specialist position; Varney and Bonner said about 75% of the position’s cost would be funded from LDFA and CIA tax-capture funds and the remainder from the general fund. Bonner and councilmembers discussed the LDFA tax capture (about $2,000,000 total capture cited in council discussion) and the CIA capture (roughly $360,000 cited during council Q&A) as sources that support Velocity programming.

Council discussion and follow-ups Councilmembers pressed for clarity on long‑term outcomes, including whether Velocity‑supported companies “graduate” into physical Sterling Heights spaces. Staff said industrial vacancy is low (industrial vacancy cited in the presentation at roughly 1.5–2%) and that a combination of project management, property assemblage and targeted incentives are part of the strategy to keep growing companies local. Bonner and McPherson noted grant awards and external partnerships (state grants, MEDC, county partners) are a significant component of Velocity’s budget.

Attributions (selected) - Luke Bonner: economic development overview, workforce and Lakeside context. - Paula McPherson: Velocity results, client examples and accelerator programming.

What’s next: city staff said they will continue to pursue grant funding, work with partners to support Lakeside Town Center and North Van Dyke revitalization and return with implementation and performance metrics for the new economic development specialist position.