Stories indexed with the term ‘LDFA’

Ann Arbor Local Development Finance Authority board meeting (June 17, 2014): The LDFA board’s meeting convened around 8:20 a.m. – about seven hours after the city council’s meeting adjourned the previous evening. And the council’s meeting was the topic of small talk among LDFA board members as they waited for their meeting to convene.

The council’s meeting was of more than just passing interest to the LDFA board members – because the council voted at that meeting to table a $75,000 contract for business development services with Ann Arbor SPARK, a local nonprofit economic development agency. Ann Arbor SPARK is also the LDFA’s contractor – but not for the same kind of services that SPARK delivers under its contract with the city. The council will likely take up its contract with SPARK again at a future meeting, possibly as soon as July 7.

The city’s annual contract with SPARK, which is paid for with general fund money, is meant to cover the attraction and retention of mature companies to the Ann Arbor area. In contrast, the LDFA contracts with SPARK for entrepreneurial support services – for companies that are in some phase of starting up.

On the LDFA board’s June 17 agenda was the annual contract with Ann Arbor SPARK for entrepreneurial support services – which the board voted to approve. This year that contract is worth nearly $2 million – $1,891,000 to be exact.

An unsuccessful bid by councilmembers made during the city’s FY 2015 budget deliberations would have reduced the total LDFA expenditures by $165,379. The goal of that expenditure reduction would have been to increase the fund balance that was available for infrastructure improvements in the LDFA district – specifically, for high-speed telecommunications. At the LDFA’s June 17 meeting, city CFO Tom Crawford indicated that sometime in the FY 2015 fiscal year, the city would be making a proposal to install fiber throughout Ann Arbor.

The contract between the LDFA and SPARK covers a range of items, with the top two line items consisting of staffing for the business incubator ($420,000) and provision of services to start-up companies in Phase III of their development ($550,000). SPARK classifies its engagement with companies in terms of phases: preliminary screenings (Phase I); due diligence (Phase II); intensive advising (Phase III); and accelerating opportunities (Phase IV). [.pdf of FY 2015 budget line items] [.pdf of LDFA-SPARK FY 2015 contract]

At its June 17 meeting, the LDFA board also approved a routine annual $42,600 contract with the city of Ann Arbor – for administrative support services. Those include items like the preparation of meeting minutes, stewardship of public documents, and preparation of budgetary analyses. [.pdf of FY 2015 LDFA contract with city of Ann Arbor]

The final voting item for the board was approval of its meeting schedule for the next fiscal year. The LDFA board meets in eight out of 12 months, with the next meeting taking place on July 15, 2014, starting at 8:15 a.m. in the city council chambers. [.pdf of 2014-2015 meeting schedule]

These voting items did not, however, generate the majority of the board’s discussion at its June 17 meeting.

The board focused most of its discussion on issues surrounding its application for an extension of the LDFA past its current 15-year lifespan, which ends in 2018. Legislation passed in 2012 allowed for either a 5-year or a 15-year extension – with different criteria for those time periods. The 15-year extension requires an agreement with a satellite LDFA, with two communities currently under consideration to partner with Ann Arbor’s LDFA: Brighton and Adrian. Flint had also been a possibility, but is no longer on the table.

With an extension, the LDFA would continue to capture school operating millage money, which would otherwise go to the state’s School Aid Fund. At least some of the school taxes subject to capture by LDFAs statewide are required to be reimbursed to the School Aid Fund by the state. Questions about how that applies to Ann Arbor’s LDFA have been raised – and a review of the state statute appears to support the conclusion that the key clause requiring reimbursement is inapplicable to the Ann Arbor SmartZone LDFA. That understanding was confirmed to The Chronicle by the Michigan Dept. of Treasury communications staff in a telephone interview on June 23.

The exact nature of that tax capture arrangement and possible reimbursement was also the subject of LDFA board discussion on June 17 – because the LDFA board is being pressed by city councilmembers to account for how the LDFA tax capture impacts the state’s School Aid Fund. Board member Stephen Rapundalo expressed some frustration about that – based on his perception that this material had been well explained in the past: “What’s it take – for them to understand unambiguously how that works? I mean, we have told them. Why is the onus on the LDFA to have to show them that?”

Besides the tax capture mechanism, two other issues raised by city councilmembers are factoring into the LDFA board’s approach to seeking an extension of its term. Board chair Carrie Leahy told her colleagues that she took away two main messages from recent appearances in front of the Ann Arbor city council. Some councilmembers, she said, would like to see: (1) an independent audit of job creation numbers; and (2) a provision for infrastructure investments as part of an LDFA extension.

On the infrastructure side, the LDFA board’s discussion focused on the existing TIF (tax increment finance)/development plan, which provides for investments in high-speed telecommunications (fiber) networks, but not for projects like street construction, sewer construction and streetlight installation. The question was raised as to whether the LDFA could use its school tax capture to pay for a fiber network in the whole geographic district of the LDFA – or if school taxes could only be used to fund a fiber network to an business incubator.

The Ann Arbor LDFA’s district covers the geographic areas of the Ann Arbor and Ypsilanti downtown development authorities – although Ypsilanti’s DDA area does not generate any LDFA tax capture. As a consequence, money captured by the LDFA is not spent in the Ypsilanti portion of the district. But that could change under an extension of the LDFA – based on board discussion at the June 17 meeting.

On the job creation numbers audit, the June 17 board discussion indicated that the LDFA will now be looking possibly to incorporate a job numbers audit as part of an upcoming financial audit. The financial auditing firm will be asked to provide some explanation of how it might be able to incorporate a jobs audit as part of its scope of work for the upcoming financial audit. The board appears to understand that some type of jobs audit would be important for winning ultimate city council support for a 15-year extension of the LDFA.

The city council’s representative to the LDFA board, Sally Petersen, made that explicit more than once during the June 17 meeting, saying that “taking the lead on establishing an independent audit would go a long way towards getting city council support for an extension.”

The LDFA’s deliberations and other agenda items are reported in more detail below. [Full Story]

Ann Arbor city councilmembers have given their support to the local development finance authority’s application to the Michigan Economic Development Corp. to extend the life of the LDFA’s tax capture arrangement for up to 15 years. Without an extension, the LDFA would end in 2018.

Action came at the council’s June 2, 2014 meeting after about 20 minutes of deliberation that concluded just before 11 p.m. Carrie Leahy, chair of the LDFA board, and Ann Arbor SPARK CEO Paul Krutko were on hand to answer councilmember questions. The voice vote by the council passed over dissent from Sumi Kailasapathy (Ward 1).

Ann Arbor’s local development finance authority is funded through a tax increment finance (TIF) district, as a “certified technology park” described … [Full Story]

The main item on the Ann Arbor city council’s May 19, 2014 agenda is the adoption of the budget for the 2015 fiscal year, which starts on July 1, 2014.

Under the city charter, the council needs to adopt the budget, with any amendments, on a seven-vote majority. If the council is not able to achieve a seven-vote majority on an amended budget, then under the city charter, the city administrator’s proposed FY 2015 budget will be adopted by default.

At the conclusion of a May 12 city council work session, Tom Crawford, the city’s chief financial officer, reminded councilmembers of the constraints they were working under when considering budget amendments. The forecast for fiscal year 2014, he told the council, is that about $1.5 million in the fund balance reserve will be used – which compares to the budgeted use of about $2.8 million of fund balance.

But Crawford cautioned that the unspent budgeted amount likely reflected a delay in that spending, not an actual savings. Crawford expected that the fund balance reserve at the end of FY 2014 would be about 10% of operating expenses.

The proposed FY 2015 budget would use $2.8 million in fund balance, Crawford told the council, which would take the fund balance down to the 7-9% range. That’s the bottom of the minimum 8-12% range that has been the council’s policy. “I say all that because I want to remind you that you’re entering a budget deliberation with pretty tight constraints,” Crawford said. So Crawford encouraged the council to find offsets to any additional expenses they wanted to incur – whether those were recurring or non-recurring expenses.

Councilmembers were asked to submit drafts of their proposed amendments to staff by the close of business on Thursday so that staff could assist in crafting the amendments. This report includes some additional background on what’s in the budget, as well as a description of 17 possible budget amendments that might be proposed.

Detail is provided on amendments in three areas: police staffing, leaf/compost collection and the local development finance authority (LDFA).
[Full Story]

Ann Arbor city council meeting (Jan. 7, 2013): Most of the council’s first regular meeting of the year was taken up with discussion of a U.S. Department of Energy grant of nearly $1 million for construction of two wind turbines, likely to be constructed on Ann Arbor Public Schools property.

Councilmembers established a concern about the possible financial risks associated with the project, and a desire that public input be solicited on the ultimate decision for a site. But the vote was unanimous to accept the grant, which includes an obligation to provide roughly $480,000 in matching funds. That match is expected to be provided by Wind Products Inc., a company located in Brooklyn, New York.

At a meeting of the city’s energy commission held the following night, commissioners expressed their dissatisfaction that the proposal had not been brought to that body for review.

Some of the council’s deliberations on the wind turbines included the question of whether the effort was consistent with the council’s priorities for the next two years – ones that were formally adopted at the Jan. 7 meeting. The priorities, which had been identified in a Dec. 10 planning session, included the basic areas of: fiscal responsibility, public safety, infrastructure, economic development and affordable housing.

The council had three parks-related voting items on its agenda, neither of which prompted extended deliberations. One was approval of a design for the new skatepark in the northwest corner of Veterans Memorial Park, which is expected to start construction in the spring and be completed in the fall. A second voting item was the approval of another contract with the Conservation Fund, which helps manage operations for the city’s greenbelt and parkland acquisition programs.

A third parks-related voting item was authorization of a contract to replace roofs on two buildings at Cobblestone Farm.

Another agenda item – related to parks, but not requiring a vote – was a presentation from the council-appointed task force that’s been asked to make recommendations for a future vision of the North Main Street corridor, extending to the Huron River, including the MichCon property. They focused their presentation on the 721 N. Main property, for which the council had authorized two grant applications at its Dec. 17, 2012 meeting. The group has a summer 2013 deadline to make recommendations for the whole area.

Also on the topic of parks, the council heard from representatives of New Hope Baptist Church during public commentary, regarding a planned new dog park. Members of the congregation oppose the location of the dog park inside West Park, because it’s immediately adjacent to the church on Chapin Street. Also during public commentary, the council again heard calls for the top of the Library Lane parking garage to be designated as a park.

Some other items on the agenda could be grouped under land use and planning. The council gave approval to changes to the site plan for Packard Square, a proposed redevelopment of the former Georgetown Mall. The council had postponed the item from its Dec. 3, 2012 agenda.

And the council gave initial approval to a zoning request in connection with the proposed Summit Townhomes project site, just east of Stone School Road. The land was recently annexed into the city from Pittsfield Township.

Also as a result of council action, Ann Arbor residents could have some additional flexibility for parking cars on their front lawns – beyond just the occasions of University of Michigan football games.

In other business, the council approved the appointment of Carrie Leahy to the board of the local development finance authority (LDFA). The LDFA is a tax-increment finance (TIF)-funded entity that comprises the geographic area of the city of Ann Arbor’s downtown development authority, as well as the city of Ypsilanti’s DDA.

Other public commentary heard at the meeting included remarks opposing continued investment in companies that provide military hardware to Israel.

One hour immediately preceding the regular meeting was a special session of the council. Its agenda consisted only of a closed session, to discuss labor negotiations – which is an allowable topic for a closed session under the Michigan Open Meetings Act. [Full Story]

Carrie Leahy has been appointed as one of six Ann Arbor representatives to the 9-member local development finance authority (LDFA) board. She replaces Theresa Carroll, whose term expired six months ago, on June 30, 2012. The vote came on a vote taken by the Ann Arbor city council at its Jan. 7, 2013 meeting.

The LDFA is a tax-increment finance (TIF)-funded entity that comprises the geographic area of the city of Ann Arbor’s downtown development authority, as well as the city of Ypsilanti’s DDA. The LDFA is separate and distinct from the nonprofit Ann Arbor SPARK, which operates a business accelerator under contract with the LDFA. [The Chronicle is able to offer only occasional coverage of the LDFA. From June ... [Full Story]

The relatively heavy agenda of the Ann Arbor city council’s Dec. 12 work session includes: (1) a demonstration of the city’s new automatic vehicle location (AVL) snow plow tracking system; (2) the annual report of the local development finance authority (LDFA); (3) a presentation on countywide transit from the Ann Arbor Transportation Authority; and (4) a review of pedestrian safety issues at crosswalks.

The AVL snow plow tracking system is supposed to provide residents with real-time information on the status of plowing activity, through GPS devices mounted on the trucks. The devices monitor not only a vehicle’s location, but also whether the plow is deployed, along with other vehicle performance information. The city’s snow plow status page currently requires … [Full Story]

At its Oct. 17, 2011 meeting, the Ann Arbor city council voted to appoint Ned Staebler to fill an open four-year term on the local development finance authority (LDFA) board. The term will end June 30, 2015. The position previously was held by Michael Korybalski. That term expired on June 30, 2011 but had not yet been filled.

The LDFA is funded through TIF (tax increment financing) capture in a geographic district comprising the Ann Arbor Downtown Development Authority and the Ypsilanti Downtown Development Authority districts. However, TIF revenue for the LDFA is generated only in the Ann Arbor DDA district. The principal activity of the LDFA is a business accelerator. The LDFA contracts with Ann Arbor SPARK to manage the accelerator.

Staebler took a position starting in the summer of 2011 as vice president of economic development for Wayne State University, after previously serving with the Michigan Economic Development Corp.

Staebler currently serves on the city’s Housing and Human Services Advisory Board, which was established in 2007 to replace two other bodies: the Community Development Block Grant (CDBG) executive committee and the city’s housing policy board. The function of the HHSAB is to make recommendations on policies and programs to address the needs of low-income residents, to monitor the implementation of Ann Arbor’s housing policy and the creation of a city housing coordinator.

Staebler lost a close Democratic primary race for District 53 state representative against Jeff Irwin, who was elected to that position in November 2010.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link] [Full Story]

Ann Arbor city council meeting (Sept. 19, 2011): The council’s agenda contained a raft of significant items, which could have easily pushed the meeting past midnight. But councilmembers maintained a brisk pace, postponing a few key issues that allowed them to wrap up the meeting in around four hours.

Public commentary was dominated by the theme of public art, with several people weighing in against a proposed change to the city ordinance setting aside 1% of all capital improvement projects for public art. One of the changes would exclude the use of funds generated by the street/sidewalk repair tax from inclusion in the public art program. Those taxes are on the Nov. 8 ballot.

The deliberations on the public art ordinance provoked some overt politicking at the table between Carsten Hohnke (Ward 5) and Stephen Kunselman (Ward 3), which concluded with Kunselman challenging his council colleagues to direct the city attorney to write a formal legal opinion justifying the legal basis for the public art program.

The proposed changes to the public art ordinance were motivated in part by a desire to assure voters that their street/sidewalk repair millage would not instead be spent on public art. However, the council postponed the public art ordinance revision until its second meeting in November – after the vote on the millage. That’s also well after the planned dedication ceremony for the Dreiseitl water sculpture on Oct. 4 – a project paid for with public art funds.

At its Monday meeting, the council also postponed a vote on a resolution of intent expressing the council’s plan for spending the sidewalk/millage money.

The council also considered a proposal to cancel a 10-year contract signed last year with RecycleBank, a company that provides a coupon-based incentive program for city residents to participate in the city’s recycling program. The data from the first year of the contract was not convincing to councilmembers that the RecycleBank program was having a positive impact.

However, councilmembers voted instead to direct city staff to negotiate towards a revised contract that RecycleBank had offered, which reduces RecycleBank’s fee by one-third.

The council approved a settlement with its police union, retroactively to 2009. The new contract is similar to those that other city unions have also settled on – including no wage increases, and pension and health care plans that require a greater contribution from employees than in the past. The city still has two unions (firefighters and police command officers) with contracts yet to be settled. Contracts with those unions will now have to conform to the requirements of new state legislation, effective Sept. 15, that limits the amount that the city can contribute to the health care costs of its employees.

Also related to police staffing, the council authorized the use of federal money to hire five police officers, if the city is awarded a grant for which it has applied.

In another employment-related issue, the council gave final approval to a revision to its retirement system, which lengthens the vesting period to 10 years and computes the final average compensation (FAC) based on five years instead of three.

Land use and property rights were a recurring theme throughout the meeting. Those items included: approval of the sale of a strip of city-owned downtown land to the Ann Arbor Transportation Authority; postponement of a request from a medical marijuana business for rezoning a parcel on South State Street; authorization of city staff to begin with the systematic annexation of township islands located within the city boundaries; and initiation of the process to levy a special assessment of Dexter Avenue property owners to fill in sidewalk gaps.

Items fitting the general category of economic development included a tax abatement for Picometrix, the setting of a tax abatement public hearing for Arbor Networks, and the expression of the council’s intent to establish a property assessed clean energy (PACE) district. The PACE program is a way for the city to offer loans to commercial property owners for the purpose of making energy improvements.

Among other items on the agenda, the council also passed a resolution calling on Gov. Rick Snyder not to sign legislation that would eliminate same-sex domestic partner benefits for public employees.  [Full Story]

Last Monday night, the Ann Arbor city council held its fifth and possibly final meeting devoted exclusively to the city’s financial planning, before it adopts the city’s FY 2011 budget on May 17, 2010. The budget will be formally presented to the city council by city administrator Roger Fraser at its Monday, April 19 meeting.

At the April 12 budget meeting, the council heard presentations on two related entities: the Local Development Finance Authority (LDFA) and Ann Arbor SPARK. The LDFA contracts with Ann Arbor SPARK for various business development services.

The two key themes that emerged from the LDFA presentation were consistent with the overall topic of the city’s budget: (i) Where does the LDFA get its money? and (ii) What does the LDFA spend its money on?

Part of the LDFA’s revenue goes towards economic development activities – a business accelerator – for which it contracts with Ann Arbor SPARK. The presentation to the council from SPARK’s CEO, Michael Finney, was followed by testimonials of companies who said they had benefited from SPARK’s efforts.

Development activities are just one kind of investment that the LDFA could make under its TIF (tax-increment financing) plan. It could also make investments in physical infrastructure. During question time, Sandi Smith (Ward 1) drew out from Stephen Rapundalo (Ward 2) the possibility that the LDFA could contemplate an investment in a fiber-optic network. Rapundalo, who serves on the LDFA board, indicated that such an LDFA investment might be possible, even if Google does not select Ann Arbor as a test community for its current fiber-optic initiative.

The council also heard from the economic development community about how the name “Ann Arbor” is perceived in the rest of the world.

The part of the council’s meeting dedicated to deliberations on its own budget was comparatively brief. Councilmembers were keen to portray in a positive light a couple of different issues, among them a potential increase in the city’s debt load resulting from a failure to complete a $3 million sale of property at First & Washington, as well as proposed increases in water rates. [Full Story]

Ann Arbor City Council Meeting (Nov. 16, 2009) Part II: The length of Monday’s city council meeting, which did not adjourn until nearly 1 a.m., might be blamed on the lengthy public commentary and deliberations on downtown zoning and design guidelines.

But it would have been a long meeting even without the downtown planning content, which we’ve summarized in a separate report: “Downtown Planning Process Forges Ahead.”

Before postponing the acceptance of the Huron River and Impoundment Management Plan (HRIMP), the council got a detailed update on how things stand on the city’s dispute with the Michigan Department of Environmental Quality (MDEQ) over Argo Dam.

An agenda item authorizing capital improvements in West Park prompted a lengthy discussion of how the Percent for Art program works.

Some public commentary calling abstractly for greater support for inventors and entrepreneurs was followed later in the meeting by an appropriation from the city’s LDFA to Ann Arbor SPARK to fund more business acceleration services.

A consent agenda item on the purchase of parking meters was pulled out and postponed.

The council also heard a detailed report from the city administrator, which covered emergency response time to a recent house fire, ADA-compliant sidewalk ramps, responses to the library lot Request for Proposals, updates on the task forces for Mack Pool and Ann Arbor’s senior center, staff reductions in planning and development, the East Stadium bridges, as well as the upcoming budget retreat on Dec. 5.

Stephen Kunselman’s (Ward 3) use of attachments to the agenda to document questions for city staff received some critique.

Also worth noting, the five winners of recent council elections were sworn in, and Marcia Higgins (Ward 4) was elected as mayor pro tem. Those topics in more detail below. [Full Story]

At Monday night’s city council work session, councilmembers heard news from their Lansing lobbying team that had a $260,000 negative impact on the Ann Arbor city budget for FY 2010, which they are expected to adopt next Monday, May 18. The quarter-million dollar shortfall against the city’s own budget planning estimates for state shared revenue led to discussion of the possibility of accelerating an already-planned reduction in the number of Ann Arbor firefighters. A reduction of 14 positions in the fire department could be implemented in early 2010, instead of sometime during FY 2011, which was originally planned.

At the work session, city administrator Roger Fraser and the city’s chief financial officer, Tom Crawford, indicated that their preferred strategy was not to build any firefighter layoffs into the FY 2010 budget – they wanted to see if they could squeeze the $260,000 out of the budget in the course the first part of the FY 2010, which for the city begins July 2009. There’s uncertainty still, said Fraser, about how many police officers will take advantage of the early retirement offer – a move the city is making to avoid laying off 27 officers for FY 2010. Officers have until mid-June to make a decision. That uncertainty factors into decisions on the FY 2010 budget that council will make on  May 18.

Councilmembers took turns calling city staff to the podium to clarify questions on other topics of interest. That included parking meters – their possible installation in residential areas, as well as the feasibility of maintaining current levels of ticket revenues without as many community standards enforcement officers dedicated specifically to ticketing. Other topics included the Local Development Finance Authority (questions about angels), historic district consultant (likely to be cut in FY 2010, instead of waiting until FY 2011), Project Grow (fund balance seen as too high) and the civic band (has not requested funding). The East Stadium bridges question came up, too (no money from state, but possibly from feds).

No formal decisions were made at the work session. [Full Story]

Ann Arbor City Council Meeting (April 20, 2009): At its Monday night meeting, Ann Arbor city councilmembers approved around $1.3 million in human services funding (after a “red-ribbon” presentation during public commentary on that subject).

They also heard the 2008 annual report from the chair of the local development finance authority (who was closely questioned by councilmember Marcia Higgins), allowed Tios an early exit to its lease, accommodated the University of Michigan’s request for a lane closure in connection with the football stadium renovation, and rejected the planning commission’s adopted downtown plan (which was expected) – which bumps the final decision on A2D2 zoning to early July.

During public commentary, council again heard support for  public art, a critique of the proposed early-out option for police officers as a part of the proposed budget, a suggestion to remove the East Stadium bridge, as well as Jim Mogensen’s “red ribbon” presentation.

Roger Fraser also gave the official presentation of the city’s budget, which had been presented twice previously last week – at a working session and also at a town hall meeting. [Full Story]