8/14/14 - The Howell City Council has given cautious support to moving forward with applying for a state program designed to accelerate hi-tech business efforts. The Michigan Economic Development Corporation launched the SmartZone network in 2000. SmartZones are regional business acceleration services funded in part by tax increment financing and there are currently 15 across the state. The Ann Arbor SmartZone is eligible to extend its program and capture taxes for another 15 years but must have a satellite partner. The Cities of Howell and Brighton would partner to become members of the Ann Arbor Satellite SmartZone, although it would operate independently. The Cities of Brighton and Howell have been in discussions with Ann Arbor SPARK to partner for the satellite venture for almost two years now. The City of Brighton was viewed as attractive since it currently has a Local Development Finance Authority and the SmartZone application also requires partnership with a higher learning institution, which in this case would be Cleary University. However, there are some legal questions since itâs located in Genoa Township. Representatives from Ann Arbor SPARK and Cleary University provided an overview of plans to the Howell City Council Monday night, saying the ultimate measurement of success is jobs investment and company creation. Potential risks cited by City Manager Shea Charles would be the MEDC changing program parameters or local contribution amounts. Council members were receptive to the concept but still had reservations and questioned the local versus regional benefits. Mayor Phil Campbell was opposed, saying he wasnât confident the City would benefit. Campbell also had concerns with what businesses the legislation dictates the funds can support as well as the main financing mechanism, which allows for the capture of school taxes for entrepreneurial based activities. Council cautiously supported having staff proceed with the next steps and including a $1,800 municipal contribution in the proposal, the same amount as Brighton. The SmartZone opportunity is a competition of sorts as Ann Arbor SPARK is working with two potential satellites â Brighton/Howell and Adrian/Tecumseh, which was not originally eligible. Proposals will be put together for each and be evaluated by the Ann Arbor-Ypsilanti LDFA Board. Only one will be selected for the Ann Arbor City Council to include as the satellite community in the application to the state. More detailed information about the SmartZone program is available in the Howell City Council meeting packet attached below. (JM)
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