Stories indexed with the term ‘economic development’

Grants Approved for Act 88 Tax Revenues

At its Aug. 6, 2014 meeting, the Washtenaw County board of commissioners made allocations to six projects, using funds from an Act 88 millage that the county levies each year. In a separate vote, commissioners took an initial step to levy that tax, with final approval expected in September.

The county’s position is that Act 88 can be levied without voter approval to fund economic development and agricultural activities. This year, the proposal is to levy 0.07 mills in December 2014 – the same rate that was levied in 2013. It’s expected to raise an estimated $1,022,276 in property tax revenues.

In previous years, the resolution setting this millage has outlined how the revenues would be allocated. The largest allocations have gone to … [Full Story]

Ann Arbor LDFA Looks to Extend Its Life

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.

Carrie Leahy is chair of the LDFA board.

Carrie Leahy is chair of the LDFA board.

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]

Council Tables Ann Arbor SPARK Contract

The $75,000 annual contract with Ann Arbor SPARK for economic development services has been tabled by the Ann Arbor city council. The 6-5 vote by the council at its June 16, 2014 meeting came after 10 minutes of deliberations, with support from Stephen Kunselman (Ward 3), Sumi Kailasapathy (Ward 1), Jack Eaton (Ward 4), Mike Anglin (Ward 5), Sabra Briere (Ward 1), and Jane Lumm (Ward 2).

The abbreviated discussion was the result of the fact that a motion to table – as contrasted to a motion to postpone to a date certain – is not debatable. So once the motion was made, the council immediately voted. The motion to table was made by Eaton, who said it could be taken up … [Full Story]

Council Gives Support to LDFA Extension

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]

County Helps SPARK with Federal Grant

Washtenaw County is applying for a $940,000 federal grant on behalf of Ann Arbor SPARK, the local economic development agency. Funds would be used to help redevelop the former General Motors Willow Run Powertrain plant in Ypsilanti Township for use as a connected vehicle testing facility.

The Transportation Investment Generating Economic Recovery (TIGER) grant is available through the National Infrastructure Investments Program of the U.S. Department of Transportation. SPARK asked that the county’s office of community & economic development (OCED) act as the lead applicant and fiscal agent. OCED already submitted the grant application – on April 25, 2014. According to a staff memo, “due to the grant application deadline, it was not possible to bring the matter before the [board ... [Full Story]

Thompson Block Brownfield Plan Gets OK

Final approval for a brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town area was given by the Washtenaw County board of commissioners at its April 16, 2014 meeting. [.pdf of Thompson Block brownfield plan] Commissioners had granted initial approval on April 2, 2014.

The plan covers 400-408 N. River St. and 107 E. Cross St., an historic property that has been declared ”functionally obsolete and blighted.” That qualifies the project as a brownfield under the state’s brownfield redevelopment financing act (Public Act 381), which allows the owner to receive reimbursements for eligible activities through tax increment financing (TIF). Approval also will allow the developer to apply for Michigan Business Tax Credits. The property is currently owned by Thompson … [Full Story]

April 7, 2014: Council Live Updates

Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s April 7, 2014 meeting includes all the material from an earlier preview article published last week. The intent is to facilitate easier navigation from the live updates section to background material already in this file.

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

The sign on the door to the Ann Arbor city council chamber, installed in the summer of 2013, includes Braille.

The council’s April 7 agenda features two significant items of old business: a first reading of an ordinance that would regulate outdoor smoking in certain locations; and an allocation of funds for the work of a pedestrian safety and access task force.

The pedestrian safety task force funding resolution is now expected to be withdrawn. At the first meeting of the task force, held on Friday, April 4, Ward 1 councilmember Sabra Briere, speaking from the audience, told the group that it was her intent to withdraw the funding resolution when the council meets on April 7. Even if the resolution is withdrawn at the April 7 meeting, however, the task force will be able to continue its work.

Pedestrian issues form one of the themes of the meeting agenda – as the council will be approving annual contracts for the sidewalk repair program, as well as applying for a grant to renovate the pathway in Gallup Park – from the Geddes Dam at the east end of the Gallup Park pathway, to the parking lot east of Huron Parkway. Along with the sidewalk maintenance program contracts, the city council will also be asked to approve the annual street resurfacing program contracts.

Another main theme of the meeting is land use. Carried over as a topic from the council’s March 17 meeting is the surface of the city-owned Library Lane underground parking structure in downtown Ann Arbor. After voting on March 17 to hire a real estate broker, the council will consider a resolution on April 7 that would allocate to the city’s affordable housing trust fund half of the proceeds of any sale of the site’s development rights.

But on April 7, the council will also be considering an amendment to the March 17 resolution that directed the city administrator to list the surface of the Library Lane parking structure for sale. The amendment would require a public process to take place before brokerage services are obtained or the real estate is listed for sale. That public process is supposed to allow discussion of the possibility that the entire surface of the underground parking garage could be used as a park or plaza. The amendment is sponsored by Mike Anglin (Ward 5) and Jack Eaton (Ward 4).

The council will also be considering some items that arrived on its agenda via the city’s planning commission: rezoning of a nature area to PL (public land); and a resolution calling on the University of Michigan to incorporate the city’s land use recommendations as it considers the future use of the Edwards Brothers property on South State Street. The April 7 agenda also includes, as an item of communication, a resolution passed by the city planning commission on March 18, 2014 that gives advice to the council about how to develop the Library Lane property.

In other business, the council will be considering a resolution to approve an expansion of the Main Street business improvement zone (BIZ). The geographic area of the self-assessment district – which handles sidewalk snow removal, sweeping and other upkeep for property owners – would more than double. The final decision rests with the property owners in the expanded area.

Also at its April 7 meeting, the council will consider a resolution asking that Michigan state officials stop opposing a recent court ruling that allows same-sex marriages.

The council’s agenda also includes several street-closing approvals for upcoming events: Taste of Ann Arbor on June 2; The Event on Main Street on June 19; the Ann Arbor Jaycees Fourth of July Parade on July 4; and the Townie Street Party on July 14.

Among the reports and communications attached to the agenda is the final report of a council economic collaborative task force.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m. [Full Story]

April 7, 2014: City Council Meeting Preview

The first council meeting in April comes after a somewhat rare three-week gap between council meetings. The first-and-third Monday schedule most often yields an every-other-week pattern.

Screenshot of Legistar – the city of Ann Arbor online agenda management system. Image links to the next meeting agenda.

Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the April 7, 2014 meeting agenda.

The council’s April 7 agenda features two significant items of old business: a first reading of an ordinance that would regulate outdoor smoking in certain locations; and an allocation of funds for the work of a pedestrian safety and access task force.

[Updated 5 p.m. April 4, 2014. The pedestrian safety task force funding resolution is now expected to be withdrawn. At the first meeting of the task force, held on Friday, April 4, Ward 1 councilmember Sabra Briere, speaking from the audience, told the group that it was her intent to withdraw the funding resolution when the council meets on April 7. Withdrawing the resolution at the April 7 meeting would not mean that the task force will not be able to do its work. Details are included after the jump.]

Pedestrian issues form one of the themes of the meeting agenda – as the council will be approving annual contracts for the sidewalk repair program, as well as applying for a grant to renovate the pathway in Gallup Park – from the Geddes Dam at the east end of the Gallup Park pathway, to the parking lot east of Huron Parkway. Along with the sidewalk maintenance program contracts, the city council will also be asked to approve the annual street resurfacing program contracts.

Another main theme of the meeting is land use. Carried over as a topic from the council’s March 17 meeting is the surface of the city-owned Library Lane underground parking structure in downtown Ann Arbor. After voting on March 17 to hire a real estate broker, the council will consider a resolution on April 7 that would allocate to the city’s affordable housing trust fund half of the proceeds of any sale of the site’s development rights.

But on April 7 the council will also be considering an amendment to the March 17 resolution that directed the city administrator to list the surface of the Library Lane parking structure for sale. The amendment would require a public process to take place before brokerage services are obtained or the real estate is listed for sale. That public process is supposed to allow discussion of the possibility that the entire surface of the underground parking garage could be used as a park or plaza. The amendment is sponsored by Mike Anglin (Ward 5) and Jack Eaton (Ward 4).

The council will also be considering three items that arrived on its agenda via the city’s planning commission: rezoning of a nature area to PL (public land); approval of a site plan for the gym expansion at Concordia University [now expected on the April 21 meeting agenda]; and a resolution calling on the University of Michigan to incorporate the city’s land use recommendations as it considers the future use of the Edwards Brothers property on South State Street.

In other business, the council will be considering a resolution to approve an expansion of the Main Street business improvement zone (BIZ). The geographic area of the self-assessment district – which handles sidewalk snow removal, sweeping and other upkeep for property owners – would more than double. The final decision rests with the property owners in the expanded area.

Also at its April 7 meeting, the council will consider a resolution asking that Michigan state officials stop opposing a recent court ruling that allows same-sex marriages.

The council’s agenda also includes several street-closing approvals for upcoming events: Taste of Ann Arbor on June 2; The Event on Main Street on June 19; the Ann Arbor Jaycees Fourth of July Parade on July 4; and the Townie Street Party on July 14.

Among the reports and communications attached to the agenda is the final report of a council economic collaborative task force.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m. [Full Story]

A2: Layoffs

The Detroit Free Press reports that Teleperformance USA is laying of 430 workers at its Ann Arbor call center and closing its operation at 2300 Traverwood Drive on Jan. 19. A company executive told the Free Press that Teleperformance was not able to renew its contract with a client that the call center served. [Source]

Column: Ann Arbor’s Brand of Participation

An Ann Arbor city council budget planning session is scheduled to take place on Monday, Dec. 9, starting sometime around 4 p.m.

CAnn Arbor Brand

Illustration by The Chronicle, based on bar chart in a preliminary draft report of a fall 2013 National Citizens Survey conducted among Ann Arbor residents.

Councilmembers have been asked to prepare for the session by thinking about Ann Arbor’s “brand.” Specifically, they’ve been asked to reflect on what “differentiates Ann Arbor from other communities in Michigan” and what “makes Ann Arbor a truly special community to live, work and play.”

Councilmembers will be asked to spend about five minutes each at the start of the session talking about how they see the Ann Arbor “brand.”

The facilitator for the session is Julia Novak of the Novak Consulting Group. In advance of last year’s session, she asked councilmembers to prepare by formulating thoughts that could be summarized as “What I Believe.

Last year’s homework assignment was, I think, easy compared to this year’s. And I do not envy councilmembers this chore. It sounds hard. I wouldn’t know where to begin. Anytime somebody starts talking about “brands” – especially a brand for a city – my first thought is: “Why, you sound like a charlatan standing there talking to me; why don’t you go off and make something useful, then come back and tell me all about that very useful thing you made instead of blathering on about brands.”

And so, because I am human, and every bit as lazy and ill-tempered as the rest of you, I will not get down to the business of completing the chore … before bitterly lamenting the nature of the chore itself (with all due respect to Julia Novak). I do hereby bitterly lament the branding chore. But I’ll take a shot.

That shot includes quoting a five-year-old interview.

But before delving into the dusty archives, I want to have a look at the preliminary results of a survey that was conducted recently among residents. I think it shows that our self-image as a community valuing public participation is not especially well-founded. So that’s not our brand. Not right now, anyway. [Full Story]

County OKs Economic Development Tax, Policy

Two actions related to a tax to support economic development and agriculture were taken at the Nov. 6, 2013 meeting of the Washtenaw County board of commissioners. During public commentary, the board also heard from two people who objected to the tax levy, including Bill McMaster of Taxpayers United.

On a 7-1 vote, the board gave final approval to an increase in the levy of the economic development and agricultural tax, known as Act 88 of 1913. The increase to the Act 88 millage is from 0.06 mills to 0.07 mills. Dan Smith (R-District 2) dissented and Rolland Sizemore Jr. (D-District 5) had left the meeting by the time the vote occurred, just after midnight.

The millage will be levied … [Full Story]

Action Taken on 2 County Tax Hikes

At their Oct. 16, 2013 meeting, Washtenaw County commissioners took action to increase two taxes for the upcoming 2014 budget – one for veterans relief services, and another for agricultural and economic development.

Final unanimous approval to levy a 0.0333 mill tax for indigent veterans services was given on Oct. 16, following an initial vote on Oct. 2. The new rate of 1/30th of a mill would be levied in December 2013 to fund services in 2014. It’s expected to generate $463,160 in revenues. The current rate, approved by the board last year and levied in December 2012, is 0.0286 mills – or 1/35th of a mill. It generated $390,340 this year.

According to a staff memo, the additional revenue is needed … [Full Story]

County Micro Loan Program Gets Final OK

After postponing action at their Sept. 18 meeting, Washtenaw County commissioners gave final approval to a new countywide micro loan program for small businesses. The action took place at the county board’s Oct. 2, 2013 meeting on an 8-1 vote, over dissent from Dan Smith (R-District 2).

Initial approval had been given on Sept. 4, and the item had been on the Sept. 18 agenda for final approval. However, at that Sept. 18 meeting only six of the nine commissioners were present, and supporters of the program didn’t think there were sufficient votes to pass the measure at that time so a final vote was postponed.

Under the county board rules, a resolution requires votes from “a majority of the members elected … [Full Story]

County Micro Loan Program Postponed

Washtenaw County commissioners postponed final action on a new countywide micro loan program for small businesses until their Oct. 2, 2013 meeting. They took the vote at the Sept. 18 meeting with only six of the nine commissioners present.

Andy LaBarre (D-District 7) made the motion to postpone, but did not state a reason during the meeting and there was no discussion on the item. When queried after the meeting by The Chronicle, LaBarre indicated that with three commissioners absent – Felicia Brabec (D-District 4), Rolland Sizemore Jr. (D-District 5) and Ronnie Peterson (D-District 6) – it was unclear whether there were sufficient votes to pass the measure. Under the county board rules, a resolution requires votes from “a majority of the members … [Full Story]

County Acts on Micro Loan Program

A countywide micro loan program for small businesses was given initial approval at the Sept. 4, 2013 meeting of Washtenaw County board of commissioners. The resolution, which will likely receive a final vote on Sept. 18, would authorize the county’s office of community & economic development to contract with the Center for Empowerment and Economic Development to manage this program. CEED already handles a smaller micro loan program focused on the eastern side of the county. [.pdf of CEED micro loan proposal]

Dan Smith (R-District 2) cast the sole vote of dissent against this program, saying he objected to using taxpayer dollars for a program where funds are allocated without the opportunity for input at public meetings.

Micro loans would … [Full Story]

Council OKs Annual Contracts: SPARK, Lobbyist

The Ann Arbor city council approved two annual contracts for services at its June 17, 2013 meeting. One was a $48,000 contract with Governmental Consultant Services Inc. (GCSI) for lobbying services with the state legislature. The council also approved a $75,000 contract with Ann Arbor SPARK for business support services.

The two items appeared on the council’s consent agenda and were approved as a part of it. Items on the consent agenda are considered routine, and include contracts for less than $100,000.

The contact with the economic development agency Ann Arbor SPARK is one that has been renewed annually since the Washtenaw Development Council and Ann Arbor SPARK merged in 2006. Previously, Ann Arbor had contracted with the WDC … [Full Story]

Economic Collaborative Task Force Established

A task force that would consist of up to nine members has been established by the Ann Arbor city council to reflect on “core values, priorities, and activities regarding economic development and identifying operations that may be duplicative, resources including funding, and opportunities for collaboration …” The task force will draw two or three members from the city of Ann Arbor, Ann Arbor SPARK and the Ann Arbor Downtown Development Authority.

The resolution, which the city council approved at its May 20, 2013 meeting, named the city’s representatives to the task force: city administrator Steve Powers, Sally Petersen (Ward 2) and Marcia Higgins (Ward 4). Higgins and Petersen had sponsored the resolution. It had grown out of an idea to establish … [Full Story]

A2: Millennials

In a column published by Bridge Magazine, Natalie Burg writes about her reasons for living in Michigan – despite the belief by many that “the well-educated, career-driven, creative-class Millennial like myself is not found in the wild here in Michigan.” She continues: “Living in Ann Arbor, I’m a quick drive from four major media markets. And lucky me, I write about growth in the state with the most growth potential. As she writes in her book, ‘Lean In,’ Facebook COO Sheryl Sandberg believes in choosing employers by their growth potential. Being self-employed, the market in which I work is my employer of sorts, and there couldn’t be a better one than Michigan.” [Source]

County to Explore Creating Land Bank

Washtenaw County commissioners have voted to form a committee that will explore the feasibility of creating a land bank. The unanimous vote took place at the board’s March 20, 2013 meeting. The resolution named three people to the committee: Commissioner Ronnie Peterson (D-District 6), county treasurer Catherine McClary, and Mary Jo Callan, director of the county’s office of community & economic development. The committee is directed to report back to the board by Aug. 7, 2013.

A land bank is a mechanism for the county to take temporary ownership of tax- or mortgage-foreclosed land while working to put it back into productive use. “Productive use” could mean several things – such as selling it to a nonprofit like Habitat for … [Full Story]

County Board Priorities Emerge at Retreat

Washtenaw County board of commissioners budget retreat (March 7, 2013): County commissioners continued their work to lay a foundation for the 2014-2015 budget, in a three-hour retreat that covered a wide range of issues – including the possibility of a new millage, bonding or other revenue sources.

Conan Smith, Ronnie Peterson, Washtenaw County board of commissioners, The Ann Arbor Chronicle

From left: Washtenaw County commissioners Conan Smith (D-District 9, Ann Arbor) and Ronnie Peterson (D-District 6, Ypsilanti). (Photos by the writer.)

The retreat comes in the context of a projected $24.64 million general fund deficit over a four-year period from 2014 through 2017. A much smaller general fund deficit of $3.93 million is projected for 2014, but county administrator Verna McDaniel hopes to identify $6.88 million in structural changes for that year – a combination of new revenues and cuts in expenditures. If that happens, the larger projected deficit would be addressed, because those cuts and revenue increases would compound and carry over into future years.

The retreat didn’t aim to identify dollar amounts or even specific programs to be cut or supported. Rather, the conversation – which included small-group work – was designed to elicit broader priorities of the board. Commissioners did not explicitly reference priorities that had been developed for the previous 2012-2013 budget cycle, though some common themes emerged. [.pdf of 2012-2013 budget priorities]

Several commissioners stressed the importance of strategic investment to create an environment that supports the local economy. Transportation, education, and housing – particularly on the county’s east side, in the Ypsilanti area – were all cited as critical to economic development efforts. Funding strategies were floated, including the possibility of a human services millage, road tax, or “social impact” bond. Also discussed was the possibility of absorbing the road commission into county government operations.

The retreat follows a budget briefing that McDaniel and her financial staff had given to commissioners at their Jan. 16, 2013 meeting. The board has also discussed the budget process at two working sessions earlier in the year, and will follow up the retreat with a working session in April. McDaniel is expected to deliver a budget proposal to the board in September. The board must adopt the budget by the end of 2013. [Full Story]

County Increases Tax for Economic Development

After holding a public hearing on a tax increase to support agriculture and economic development, the Washtenaw County board of commissioners authorized the Act 88 tax at a rate of 0.06 mills, an increase from the current 0.05 mills.

The action occurred at the board’s Oct. 3, 2012 meeting. The vote on an amendment to increase the tax rate passed 6 to 5, with dissent from Ronnie Peterson, Alicia Ping, Wes Prater, Dan Smith and Rob Turner. The vote to levy the tax passed 8-3, with Ronnie Peterson, Wes Prater and Dan Smith voting against it.

The board was on track to approve the tax last month at the 0.05 mill rate. But after a public hearing, board chair Conan Smith proposed an … [Full Story]

UM Regents Amend Operating Agreement

An operating agreement for the Michigan Advanced Development and Manufacturing Center (MADMC) was amended by the University of Michigan board of regents at its Sept. 20, 2012 meeting. According to a staff memo, the change aims to ”provide potential MADMC leadership candidates with the level of management independence and operational flexibility needed to effectively direct a manufacturing start-up enterprise.” The memo states that MADMC is pursuing “contractual opportunities that would utilize the assets at NCRC.” The NCRC is the North Campus Research Complex, which the university bought from Pfizer in 2009.

MADMC has been a low-profile venture, and hasn’t been explicitly discussed by the regents. Formed in March of 2012, it was created by UM to seek a U.S. Dept. of Defense … [Full Story]

10 UM Conflict-of-Interest Items OK’d

Ten items disclosed under the state’s Conflict of Interest statute were authorized by the University of Michigan board of regents at their Sept. 20, 2012 meeting. The law requires that regents vote on potential conflict-of-interest disclosures related to university staff, faculty or students.

The items often involve technology licensing agreements or leases. This month, all items were approved unanimously and related to the following businesses: Newline Builders, Horsley Archaeological Prospection, ArborMetrix, DDM System Inc., Edington Associates, OncoFusion, PsiKick Inc., Vortex Hydro Energy and Wolverine Energy Solutions and Technology Inc.

In addition, regents approved lease agreements with 15 firms that are part of UM’s Venture Accelerator program, located at the North Campus Research Complex, 1600 Huron Parkway – the former Pfizer facility. [.pdf of ... [Full Story]

Econ Development Tax Increase Postponed

The handling of a proposal to increase a tax for economic/agricultural development drew criticism from some Washtenaw County commissioners, ultimately leading to a postponement of the item that was discussed at the county board meeting on Sept. 19, 2012.

The millage for economic development and agriculture is authorized under the state’s Act 88, and has been levied by the board since 2009. That year, it was levied at 0.04 mills. It was raised to 0.043 in 2010 and 0.05 in 2011. Because the Michigan statute that authorizes this millage predates the state’s Headlee Amendment, the board can levy it without a voter referendum.

On Sept. 5, it had been given initial approval by commissioners on a 7-to-3 vote, with dissent from Alicia … [Full Story]

County Tax Hike for Economic Development?

Washtenaw County board of commissioners meeting (Sept. 5, 2012): Board chair Conan Smith has floated a proposal to raise taxes that support economic development and agricultural programs, and suggested revising the way those revenues are administered.

The proposal came in the context of an initial board vote to levy an annual tax of 0.05 mills, unchanged from the current rate. The Michigan statute authorizing this millage (Act 88 of 1913) predates the state’s Headlee Amendment, so no voter approval is required. The board can levy the tax directly.

Ken Schrader, PC technician with Washtenaw County

Ken Schrader, a PC technician with Washtenaw County, explained to the county commissioners that recently installed new microphones are more sensitive than the older ones. He jokingly warned them that they should be careful what they say now, because “you can’t take anything back.” Later in the meeting, the county’s information technology department was presented with an award from the Center for Digital Government.

The current rate is expected to bring in about $683,095 in 2013, and is allocated to a variety of organizations, including the economic development agency Ann Arbor SPARK ($200,000) and its Ypsilanti office SPARK East ($50,000). Smith and county administrator Verna McDaniel serve on SPARK’s executive committee.

Smith, a Democrat from Ann Arbor, suggested that by raising the rate to 0.06 mills, property owners would see only a slight increase in their annual taxes. For the average taxpayer, he estimated it would increase from $4.25 to $5.10 per year, while the amount raised countywide would increase about 20% to $838,577. He also proposed that the office of community and economic development – a joint county/city of Ann Arbor department led by Mary Jo Callan – should be given the authority to allocate the funding, rather than having the county board earmark amounts for specific organizations.

No formal amendment was made, but Smith circulated a three-page memo the following night outlining his proposal. [.pdf of Smith's Act 88 memo] It’s likely the board will take up this proposal as an amendment before a final vote at its Sept. 19 meeting. Initial approval was given on Sept. 5 for the current rate of 0.05 mills on a 7-to-3 vote, with dissent from Alicia Ping, Wes Prater, and Dan Smith. Ronnie Peterson was absent.

Another pre-Headlee tax – for support of indigent veterans – also got initial approval from the board, at a slightly increased rate. The initial approval increases that tax from 0.025 mills to 0.0286 mills. Staff of the county’s department of veterans affairs say the increase is needed because of rising claims and services from veterans due to a struggling economy, an anticipated increase in the number of returning soldiers, and a drop in property values. The millage is expected to raise $390,340 in revenues during 2013.

In other action related to tax revenue, commissioners gave initial approval to an ordinance governing the county’s natural areas preservation program. The change would remove the current restriction that only 7% of millage funds can be used for management or stewardship. The intent is to provide more flexibility in managing the funds, allowing the county to build a reserve for long-term stewardship. It’s viewed as an important goal, in the event that the NAPP millage is eliminated in the future. Yousef Rabhi, a Democrat who represents District 11 in Ann Arbor, proposed an amendment that would set a minimum of 25% to be spent on stewardship. The amendment failed on a 1-9 vote.

In an item viewed largely as a formality, county commissioners “ratified” the articles of incorporation for a new countywide transit authority. The document had been slightly revised from what the board had previously approved on Aug. 1, 2012 – on a 6-4 vote. This time, the vote was 6-3, with dissent from Alicia Ping, Wes Prater and Dan Smith. Rolland Sizemore Jr. and Ronnie Peterson were absent. Rob Turner, who had previously voted against the articles of incorporation, supported the item on Sept. 5.

Also approved was a resolution to support a policy change in the city of Ann Arbor related to affordable housing. The item was added to the Sept. 5 agenda during the meeting by Democrat Leah Gunn of Ann Arbor, and was not discussed by commissioners at the meeting. The resolution “encourages the Ann Arbor City Council to direct proceeds from the sale of the city-owned surface parking lots in the downtown to the city’s Housing Trust Fund, to be used to support sustainable, affordable housing.” [Earlier in the day, the Ann Arbor Downtown Development Authority board had passed a similar resolution of support. Gunn is chair of the DDA.] Dan Smith abstained from the vote. The following night, at a board working session, Alicia Ping announced that she had intended to vote against it, but had cited the wrong agenda number in casting her no vote.

Other action at the Sept. 5 meeting included initial approval of the county’s public health budget, which projects a 3.5 net increase in jobs. Voting against the budget were Alicia Ping and Dan Smith, who cautioned against adding new jobs as the county faces a deficit in 2013. A final vote is expected at the board’s Sept. 19 meeting.

Seth Best, a former resident of Camp Take Notice, addressed the board during public commentary about the need to tackle the root causes of homelessness. The homeless encampment had been evicted this summer from its most recent site in Scio Township.

And highlighting a letter that the county had recently received, commissioner Felicia Brabec raised concerns about the intent of Paxton Resources LLC to drill an exploratory oil and gas well in Saline Township. The board will likely revisit the issue of hydraulic fracturing, or “fracking,” at a future working session. Yousef Rabhi, who chairs those meetings, suggested wrapping it into a session he plans regarding the Pall/Gelman Sciences 1,4 dioxane plume. He sees a tie-in to the issue of industrial environmental contamination. [Full Story]

Veterans, Act 88 Millages Get Initial OK

Two taxes – for indigent veterans services and economic/agricultural development – were given initial approval at the Sept. 5, 2012 meeting of the Washtenaw County board of commissioners. Because the Michigan statutes that authorize these millages predate the state’s Headlee Amendment, they can be approved by the board without a voter referendum. Final votes and public hearings on these millages are set for the board’s Sept. 19 meeting.

The tax to support services for indigent veterans was increased to 0.0286 mills, to be levied in December 2012. The vote was unanimous. The millage is expected to raise $390,340 in revenues for use during 2013. The current 0.025 mills brought in $344,486 in 2012.

According to a staff memo, the increase is needed because … [Full Story]

Lenart, Hall Take New Jobs in Housing

As Jennifer L. Hall prepares to start her new position as executive director of the Ann Arbor housing commission, Brett Lenart has been named to replace her as housing and infrastructure manager at the joint Washtenaw County/city of Ann Arbor office of community development. Hall sent an email on Sunday night to announce the transition.

Hall had been offered the housing commission job at the commission board’s Oct. 19, 2011 meeting. The commission oversees the city of Ann Arbor’s public housing units, as well as the Section 8 program for Washtenaw, Monroe, and western Wayne counties. Hall’s last day with the office of community & economic development is Nov. 23.

Among his various responsibilities at the county, Lenart has managed the … [Full Story]

Project Focuses on Food Entrepreneurs

A task force has been formed to guide a pilot training program for agribusiness jobs in Ypsilanti, including support for entrepreneurs in food-related businesses. The Washtenaw County board of commissioners voted to create the task force at its Nov. 2, 2011 meeting, but none of the 17 members to the entity have been identified.

Called ”Seeds for Change: Growing Prosperity in Ypsilanti,” the project is intended to provide job training and placement to unemployed workers interested in agricultural employment, and to offer shared commercial kitchen space and business support to local agri-business entrepreneurs, according to a staff memo. The initiative will also encourage local entities – including governments, universities, hospitals, and other partners – to buy products made from people in this program. Products … [Full Story]

County Board Acts on Labor, Budget Issues

Washtenaw County board of commissioners meeting (Sept. 7, 2011): Coming off their pared-back summer schedule, county commissioners faced a heavy agenda at their first meeting in September, with several items related to budget and labor issues.

Andy LaBarre, Rob Turner, Barbara Bergman

At left: Andy LaBarre talks with county commissioners Rob Turner (R-District 1) and Barbara Bergman (D-District 8). Bergman is not planning to run for re-election in 2012, and LaBarre is expected to be a candidate in her district, which is being reconfigured as part of a countywide redistricting set earlier this year and implemented for the 2012 elections. LaBarre, a former aide to U.S. Rep. John Dingell, attended Wednesday's meeting in his role as vice president at the Ann Arbor Ypsilanti Regional Chamber of Commerce, to support the proposed economic development tax.

After an executive session early in the meeting, the board approved a contract with the Michigan Nurses Association-Unit II, representing two county employees. It’s the second of 15 union agreements being negotiated as part of the 2012 and 2013 budget cycle, with the hopes of securing about $8 million in concessions over the two-year period.

Throughout the evening, hallway conversations took place among various county administrators who were involved in labor talks that same night. And later in the meeting, the board voted to set a special meeting on Tuesday, Sept. 13 at 4 p.m. to discuss proposed labor agreements. It was expected that additional deals would be announced at that time.

One of those deals was confirmed on Monday, Sept. 12, by county administrator Verna McDaniel. She reported that the county’s largest union – AFSCME Local 2733, representing 644 employees – has ratified a new contract that will coming to the board for approval on Tuesday.

Commissioners dealt with a range of other budget-related items at last week’s meeting. They gave initial approval to budgets for the public health and CSTS (community support & treatment services) departments, which include about a dozen job cuts and a raft of new and increased fees. And two taxes – to support services for indigent veterans, and for economic development and agriculture – received initial approval from the board. Nine people spoke during public commentary and a public hearing on the economic development tax, all urging the board to support it. However, three of the 10 commissioners present voted against it. Final votes on both millages will be taken at the board’s Sept. 21 meeting.

An item that drew the most discussion among commissioners was a resolution to suspend the county’s use of Construction Unity Board (CUB) agreements, pending the outcome of litigation that’s challenging the validity of the state’s Public Act 98. The resolution passed, but with four commissioners dissenting. The dissent came from two differing perspectives, however. Two Republican commissioners – Dan Smith and Alicia Ping – objected to an amendment that affirmed the value of these agreements. Two Democratic commissioners – Kristin Judge and Conan Smith – voted against suspension because they wanted to keep the CUB agreements in place. A final vote on that issue will occur on Sept. 21.

Commissioners dispatched with several other agenda items, giving initial approval to: (1) appoint Jeffrey Jentzen as the new medical examiner; (2) authorize the issuance of $2.7 million in bonds to help pay for a $3.2 million facility operated by the Western Washtenaw Recycling Authority; and (3) amend a contract regarding the distribution of the county’s accommodation tax.

Several items were also brought up as communications from commissioners and the administration. Among them, commissioner Rob Turner gave an update on the situation in Sylvan Township, which has been struggling with $12.5 million in bonds issued to build a water and wastewater treatment plant intended to serve future development. It’s expected that the township won’t be able to make its May 2012 bond payment. Township officials are putting a millage proposal on the November 2011 ballot to raise funds to repay the county, which will be asked to cover the future bond payments. Information forums for township residents are planned for later this month and early October. [Full Story]

Ann Arbor Council Revisits the Mid-2000s

Ann Arbor city council meeting (Aug. 15, 2011): One connection among multiple items on the council’s agenda was the era when they originated, back in the mid-2000s.

balloon debt ceiling

Ann Arbor city council chambers on Aug. 15, 2011. Despite appearances, the city of Ann Arbor does not currently have a balloon payment due that will put the city up against its debt ceiling. (Photo by the writer).

The city council originally gave its approval to the selection of Village Green as the purchaser of the city-owned First and Washington lot back in 2006. To make up for the fact that the First and Washington deal has not yet been finalized, on Monday the council approved a $3 million inter-fund loan from its pooled investment fund. The money is needed to pay construction bills for the city’s new municipal center.

A year earlier, in 2005, the city received a recommendation from a blue-ribbon task force to change the composition of the board of trustees for its retirement system – to a mix on the board that is less heavily weighted towards members who are beneficiaries of the system. And on Monday, the council approved the Nov. 8 ballot language that will ask voters to change the city charter, which specifies the composition of the board.

A year before that, in 2004, the city council gave direction to city staff to develop an ordinance that would regulate idling vehicles. On Monday, the city council formally received – but took no action on – a resolution from its environmental commission recommending a draft anti-idling ordinance.

Likely dating back even earlier was an agenda item that addresses a point of ongoing friction between the city and the University of Michigan: reimbursement for the costs associated with traffic control during home football games. On Monday, the council approved a resolution that sets Aug. 25 as a deadline for completing a contract that reimburses the city for those costs. Otherwise, the city administrator is directed not to provide the signs and signals operations during home games.

In other business, the council gave final approval to the reapportionment of the five city wards, which will take effect after the Nov. 8 election. The council also set the application fee for medical marijuana business licenses at $600. The city’s medical marijuana licensing legislation, approved in June, takes effect later this month. Mayor John Hieftje also announced nominations for four of the five slots on the newly-established medical marijuana licensing board.

The mayor also announced nominations to the Ann Arbor Downtown Development Authority board. Joan Lowenstein and John Mouat were nominated for reappointment, while Gary Boren, recently elected as chair of the board for the coming year, was not.

At the meeting, the DDA was also highlighted during public commentary by the owner of Jerusalem Garden, a restaurant adjacent to the construction site of the Fifth Avenue underground parking structure, which the DDA is managing. The restaurant has seen revenues drop during construction. He reiterated some of the points he’s made previously when addressing the council and the DDA board, and this time called on the council to think about how to apply lessons learned from the current situation in the future.

Economic development was also part of the council meeting in the form of a resolution the council passed that urges the Washtenaw County board of commissioners to levy a tax to fund economic development. The tax is based on Act 88 of 1913 and does not require voter approval.

The proposed Fuller Road Station maintained a presence during council proceedings in the form of public commentary, as well as a reminder from the council to the mayor that he’d previously indicated a council work session would be scheduled on the project. [Full Story]