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Ann Arbor/Ypsilanti SmartZone

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Funding   Board of Directors  Expenditures  Ann Arbor SPARK

In 2001, the Michigan Economic Development Corporation (MEDC) created eleven separate SmartZones throughout the state, including Ann Arbor/Ypsilanti.  The purpose of the Ann Arbor/Ypsilanti SmartZone (LDFA) is to provide capital needed for the facilitation of the commercialization of research products being developed at University of Michigan and Eastern Michigan University and the development of private high technology enterprises that, but for this organization, would be deferred, or located outside of the SmartZone area. 

The SmartZone is the programmatic name given by the Michigan Economic Development Corporation (MEDC) to a district established under state law (“a certified industrial park”). The district is technically called the Local Development Finance Authority (LDFA), but these terms are interchangeable. The SmartZone is equal to the Downtown Development Authority (DDA) district in the City of Ann Arbor and a portion of a DDA district in Ypsilanti. The purpose of the district is established by four foundational documents.  

Funding

The SmartZone is funded from the State of Michigan, and without the SmartZone, these monies would otherwise not be received locally. The formula for determining the amount which the State will invest in the SmartZone is determined via a tax capture. Presently, the tax capture revenue is collected only within the geographic boundaries of the Ann Arbor DDA, since the portion in the Ypsilanti DDA is being used for other purposes. The tax capture is based on the increase in taxable value due to new development and appreciation above the base year of 2002. These dollars come from taxes committed to schools and are, by law, repaid to the local school district by the state so their funding remains whole. So in effect, the State funds the LDFA.The SmartZone (LDFA) received approximately $2 million of revenue in FY2014.

Board of Directors

The governing body, known as the Ann Arbor/Ypsilanti SmartZone Local Development Finance Authority (LDFA) consists of a nine-member board of directors of which six members are appointed by the Ann Arbor City Council and three members are appointed by the Ypsilanti City Council. The LDFA operates under a set of bylaws that were initially approved by the Ann Arbor and Ypsilanti City Councils. Proposed changes or amendments to the bylaws are adopted by the LDFA's Board of Directors and submitted to the Ann Arbor City and Ypsilanti City Councils for approval.

Board of Directors

Please follow the link below:


Carrie Leahy, Ann Arbor, Vice Chair, Term Expires 6/30/2020
Stephen Rapundalo, Ann Arbor, Term Expires 6/30/2019
Paula Sorrell, Ann Arbor, Chair, Term Expires 6/30/2019
Laura Hayden, Ann Arbor, Term Expires 6/30/2021
Heather Grisham, Ann Arbor, Treasurer,Term Expires 6/30/2021
Graydon Krapohl, Ann Arbor, Council Member, Term Expires 6/30/2020
Beth Ernat, Ypsilanti, Term Expires 5/1/2020
Phil Tepley, Ypsilanti, Term Expires 12/4/2020
 
Ex-Officio Board Members  
Tom Crawford, City of Ann Arbor Recording Secretary  
Skip Simms, Ann Arbor Spark       
Fredrick Molnar, MEDC


The time and location of LDFA Board Meeting 2018.pdf are published through the City of Ann Arbor’s normal meeting notification process and are available online. The Smartzone is included in the City of Ann Arbor’s Comprehensive Annual Financial Report (CAFR) as a Component Unit, and therefore, its financial statements are audited.

Expenditures

SmartZone has spent its money pursuing the items identified in its Foundational Documents. Specifically, it has supported the following activities in the City of Ann Arbor:

  • Business Incubator – capital and operating support.
  • Business Acceleration Support and Services – due diligence, intensive services, supporting accelerating opportunities.
  • Microloan program for entrepreneurs.
  • Entrepreneur education.
  • Business networking.
  • Business software access for clients.
  • Marketing.
  • Administrative services – accounting, legal, etc.

A breakdown and history of spending in each of these areas is available in the Smart Zone's Annual Report to City Council.

Ann Arbor Spark

Rather than hire and create a separate organization, the SmartZone Board has historically contracted with outside entities to perform services. The largest service provider has been Ann Arbor SPARK. Ann Arbor SPARK is a regional economic development non-profit organization dedicated to economic prosperity of the Ann Arbor region. It receives both public and private funds to achieve its mission. 

 
Ann Arbor SmartZone Logo

Financial and Administrative Services Area Administrator
Tom Crawford
734.794.6000 ext.45100 
tcrawford@a2gov.org