Ann Arbor

$2.8 million for Pixel Velocity means 36 new jobs

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November 5, 2008

Venture capital lightning strikes twice for Pixel Velocity. The Ann Arbor start-up recently received its second investment from Michigan's 21st Century Jobs Fund. That $1.8 million will come with another $2 million in venture capital. It's an investment that is expected to add 36 new jobs to its existing staff of 25 within the next few years. Pixel Velocity received $1.5 million from the 21st Century Jobs Fund in 2006 on top of another $5 million. The company creates high-speed digital image processing products for the surveillance and medical imaging markets. Pixel Velocity has become quite good at that, growing its revenue by triple digits annually and adding, on average, 7-9 people. Company officials maintain that surveillance market will continue to grow in this Post 9-11 world and so will its medical imaging work, which creates images of the heart, as the population ages. Source: Michigan Economic Development Corporation Writer: Jon Zemke

Ann Arbor’s Greenbelt looks to add another 51 acres of farmland

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Development News

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November 5, 2008

The Gould Farm could prove to be quite the green space nugget for Ann Arbor's Greenbelt Program. The City Council will decide whether to approve purchasing the development rights to the farm Thursday night.The 51-acre farm is located near the corner of Whitmore Lake and Joy roads in Ann Arbor Township. If the purchase is made, the land will remain in its current state for the foreseeable future."It's all farmland," says Ginny Trocchio, program manager for Ann Arbor's Greenbelt.Earlier this year, the Ann Arbor Greenbelt targeted the Gould and the nearby 286-acre Braun farms in Ann Arbor Township. Both are considered a high priority for preservation by the township and the city. The City Council could agree to pay half of the purchase price of $269,000. The rest of the money will come from Ann Arbor Township and Federal Farm and Ranch Land Protection Program grant. The Greenbelt program has utilized such federal grant programs in the past to the tune of $750,000. The city's Greenbelt Program provides funding to preserve and protect open space, natural habitats and farms in the Ann Arbor area by purchasing development rights. The city acquires these rights from willing sellers who apply to participate in the program. Ann Arbor voters approved a 0.5-mill millage over 30 years to establish the Greenbelt Program in 2003. Since then the program has acquired the rights to XXX acres.Source: Ginny Trocchio, program manager for Ann Arbor's GreenbeltWriter: Jon Zemke

Arbor Photonics lands $3 million investment, plans to create 136 jobs

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Economic Development

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November 5, 2008

Arbor Photonics is making the most of its $3 million infusion, laying out plans to create 136 new jobs within the next few years. The Ann Arbor-based firm recently received $1.5 million from Michigan's 21st Century Jobs Fund. That money will complement another $1.5 million from private investors. The 136 new jobs will be quite the jump in employment for the University of Michigan spin-off. As of today only two people work at the start-up. U-M Prof. Almantas Galvanuaskas invented a new way to dramatically improve fiber lasers. Arbor Photonics was created last year to commercialize this technology. The technology is an optical fiber structure called Chirally-Coupled Core Fiber or 3C fiber. The 3C fiber significantly improves the performance of fiber lasers in industrial manufacturing, a $2 billion market that grows about 14 percent annually on average. About $400,000 in venture capital was invested in the Arbor Photonics last fall. That money allowed the company to hire a CEO and director of business development and recruit other key personnel. The plan is to hit $50 million in sales within the next six years. The company hopes to expand its employee base to 136 by 2014. But for now Arbor Photonics plans to invest the $3 million it just received into further product development over the next year. Source: Michigan Economic Development Corporation Writer: Jon Zemke

Construction nearly completed on downtown Ann Arbor’s Sudworth building

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Community Development

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October 29, 2008

Work is nearly finished on the Sudworth building in downtown Ann Arbor, bringing another historic structure back to the top shelf of downtown structures.The Blue Tractor Brewery and Barbeque is set to open in early November in the ground floor and basement. The second and third floors of the 3-story structure will be ready for office occupants soon, too."The upper floors are also very close," says Greg Lobdell, co-owner of the Sudworth Building. "They will be ready a few weeks after the restaurant comes online."Lobdell and his partner, John Carlson, head up Ann Arbor-based 2mission which is behind the $3 million project. They also own Café Habana next door to the Sudworth, 205 E Washington. About 6,000 square feet of the 10,000-square-foot building is still available for lease on the top two floors. Lobdell and Carlson have preserved many of the building's historic aspects, such as the building's distinctly large windows on the second and third floors. They also have added several green features, like wiring the building for solar panels amd LED lights. The Romaneque structure is about 100 years old. It has served as a retail store, the home to a number of fraternal orders and most recently as a Buddhist temple. It’s named after Bishop Sudworth who owned a successful medical practice in Kalamazoo and a drugstore in Petoskey in the later half of the 19th Century before coming to Ann Arbor. Source: Greg Lobdell, co-owner of the Sudworth BuildingWriter: Jon Zemke

University of Michigan has the most Fulbright Fellows

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Education

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October 29, 2008

The Victory Valiant are coming from all corners of the world, and its showing with the high number of Fulbright Fellows at the University of Michigan. Excerpt: The University of Michigan's 31 Fulbright Fellows this year are the most at any university in the country, a distinction U-M has enjoyed three times in the last four years. The U-M recipients will be working in more than 20 countries, including Germany, Macao, Ecuador, Italy, Bangladesh, Kenya, China, Oman and Finland. The Fulbright program, established by Congress in 1946, is sponsored by the U.S. Department of State to enhance "mutual understanding between the people of the United States and the people of other countries." The program operates in 155 countries. After U-M, Harvard University had the second most fellows with 29, followed by Yale University with 26. Read the rest of the story here.

Downtown Ann Arbor go!Passes up, Zipcars waiting in wings

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Development News

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October 29, 2008

More people are coming and going from downtown Ann Arbor thanks to the go!Pass from the getDowntown program, which is also close to landing a fleet of Zipcars.So far this year, getDowntown has sold 5,350 go!Passes. That's about 400 more than it sold by this time last year. Those passes are also being used more often, accounting for 41,253 rides on Ann Arbor Transportation Authority buses in September. That's up from 32,701 in September, 2007."It's a pretty significant increase," says Nancy Shore, program director of getDowntown.She also is optimistic about downtown Ann Arbor landing its first Zipcar fleet sometime in the near future. The city expects to have a handful of Zipcars ready within 4-6 weeks after Zipcar gives approval."We are just waiting for Zipcar to say yay or nay," Shore says.The University of Michigan Zipcar fleet might be next in line after downtown's fleet is approved. Shore says the fleet on U-M's campus is in high demand and could be ripe for an expansion.Source: Nancy Shore, program director of getDowntownWriter: Jon Zemke

Cielo MedSolutions lands $2 million grant, hiring 10

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Economic Development

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October 29, 2008

About $2 million in new money for Cielo MedSolutions means another 10 new jobs at the software start-up.The Ann Arbor-based company recently received $2 million from the 21st Century Jobs Fund and another $1 million plus cash infusion that is expected to create 70 new jobs at the 10-person company within the next few years. Of those 70 positions, ten will be open right away."That money will help us do further product development and new development," says Dave Morin, CEO of Cielo MedSolutions. "This lets us play on a national level and compete with our bigger competitors. It also lets us go for a very large expansion."The University of Michigan spin-off develops new software for the health-care industry. That technology helps make sure doctors connect with their patients when its time for a checkup, test or treatment they might otherwise forget. It claims that the software, if used properly, can help cut down on unnecessary procedures and provide doctors with up to a 200 percent return on their investment.Source: Dave Morin, CEO of Cielo MedSolutionsWriter: Jon Zemke

AATA to take over WALLY commuter rail project

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Development News

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October 29, 2008

The commuter rail project WALLY is set to take some serious steps forward now that its future is no longer up for grabs.The Ann Arbor Transportation Authority took control of the project last night and will serve as the agency to take it forward. Proponents of WALLY have been pushing to set up a new authority consisting of Washtenaw and Livingston counties, but officials from Livingston County (where most of the stations will be located) have balked at the idea."There's lot to be done but this really gives it some firm ground to stand on," says Terri Blackmore, executive director of the Washtenaw Area Transportation Study.Now comes the hard part of making the project work behind the scenes before it can make its first public appearance and become operational. A lot of that work includes things like surveying, environmental reports and overseeing improvements to the track.RL Banks & Associates released a feasibility study for the line in July that basically said the commuter line was feasible, needed $32.4 million to start and would take about 16 months to set up. The people behind WALLY want to get it up and running before planned improvements on U.S. 23 (which the line basically mirrors) once again bring traffic to a standstill in 2010. Traffic on U.S. 23 often becomes easily congested as traffic volumes often overrun the highway's capacity during rush hour. The commuter line would have stops on Ann Arbor's north side, Whitmore Lake, Hamburg Township, Genoa Township and Howell. Unfortunately, Ann Arbor Railroad is not cooperating with the project, so a short spur into downtown is unavailable.A key supporter of the rail line is the Great Lakes Central Railroad, whichcontrols the tracks along the corridor and wants to set up the service. Long range plans call for it extending as far as Traverse City.Source: Terri Blackmore, executive director of the Washtenaw Area Transportation Study

Coherix capitalizes on Volvo investment, to increase staff by 20-30 percent

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Economic Development

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October 29, 2008

Sports clichés are, well, cliché when it comes to business, but they are also the philosophies that keep Coherix going strong in Ann Arbor."This is our sport," says Dwight Carlson, chairman and CEO of Coherix. "Everyday we get up for this and no two days are the same."Or two markets for that matter. The high-tech firm that helps improve engine efficiency is opening up new markets all around the world. Coherix has successfully expanded its operations into Asia in recent years and is making plans for a similar move into India's markets.But the big news is how Volvo Technology Transfer has made a big investment into Coherix so the Ann Arbor firm can set up shop in Sweden and take advantage of European markets.This represents the latest growth spurt for the company. It started with five people in 2003. Today is employs 45 people and another 10 independent contractors and the occasional intern. It expects to increase its employment by another 20-30 percent within the next year."We have too much momentum to be in a holding pattern," Carlson says.Coherix develops high-tech systems to improve engine-manufacturing quality. It uses high-tech optical-based measurement and inspection products to find efficiencies in the automotive and semiconductor industries You can see a video example of their work here.Source: Dwight Carlson, chairman and CEO of CoherixWriter: Jon Zemke

Nephrion adds 6 people, plans to repeat next year

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Economic Development

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October 29, 2008

An unsuccessful company isn’t necessarily a failed one. Take the example of Nephrion.The Ann Arbor-based start-up was founded from intellectual property that once belonged to another start-up. Both companies were founded by Dr. H. David Humes, a professor of Internal Medicine at University of Michigan and a serial entrepreneur.Nephrion took some of the intellectual property from the first company and combined it another IP and brought in three people looking to make something from nothing. That something is a firm that employs nine people and an intern. It's just received $2 million from Michigan's 21st Century Jobs Fund on top of another $2 million in venture capital. It expects to eventually create 200 jobs with the investment with nearly 10 positions created within the next year.Nephrion develops proprietary medical devices designed to treat several large unmet medical needs such as End Stage Renal Disease, Acute Renal Failure, Cardio-Pulmonary Bypass Surgery, Sepsis and other inflammatory conditions. The $4 million will help fund clinical trails on the devices, which are expected to be commercialized in 2010-11."We will use external resources," says Clint Dederick, chairman and CEO of Nephrion. In the mean time the company is focusing on clinical trails and raising capital. It has already raised approximately $3 million from four prominent Mid-Western venture funds.Source: Clint Dederick, chairman and CEO of NephrionWriter: Jon Zemke