Government

U-M opens Michigan I-Corps to all comers entrepreneurial

By Newsroom

●

March 13, 2013

The University of Michigan has worked for years to commercialize its research into growing businesses, employing a variety of programs that often look to pair university researchers with university business students and graduates. Michigan I-Corps is looking to broaden that scope. The new entrepreneurial training program, part of the National Science Foundation's National I-Corps initiative, is looking to not only empower the entrepreneurial ambitions of university's research and business classes but also entrepreneurs and scientists from outside of Ann Arbor's ivory towers. Any Michigan-based technologist, regardless of academic affiliation or funding source, is eligible. The program is recruiting teams from Michigan's universities, tech companies and startups funded by venture capitalists. "One of the best ways to enhance entrepreneurship is to get all sorts of folks to mix together," says Jonathan Fay, director of Michigan I-Corps. The Michigan I-Corps will be comprised of approximately 25 teams, each with three members: a principal investigator (or senior executive), entrepreneurial lead (or product manager) and industry mentor. The statewide program will focus on customer discovery and business model generation, but will supplement it with modules on business basics, intellectual property, and entrepreneurship ownership and operations. "What about your technology has value?" Fay says. "What about your technology do the customers want?" Source: Jonathan Fay, director of Michigan I-Corps Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Latest in Government

Ypsi DDA to invest up to $30K in building rehab assistance

By Natalie Burg, Development News Editor

●

Community Development

●

March 6, 2013

Renovating a historic commercial building is no easy task, but the Ypsilanti Downtown Development Authority (YDDA) is working to make it more manageable to do so in their district. The organization has recently announced that $30,000 will be made available through their YDDA Building Rehabilitation Program. "This is an opportunity for a businesses to expand or come into a space or to leverage funds to increase their property value," says YDDA Director Tim Colbeck. The funds are eligible to cover up to 50 percent of the cost to rehabilitate buildings within the YDDA district. Qualifying projects include ADA accessibility construction, fire suppression upgrades, or other tasks involved in bringing buildings up to code inside the YDDA district, which includes properties in downtown, Depot Town and the W. Cross St. District. "It's not for a coat of paint," says Colbeck. "It has to be something that will take a building that is in a state of disrepair and bring it up to code. It's not just cosmetic stuff in the interior." The YDDA Building Rehabilitation Program is now in its fourth round of grants. This round will differ from the prior three in that, rather than accepting applications until a particular deadline, grants will be awarded on a rolling basis. The $30,000 available through the program is funded by the YDDA and the Washtenaw County Economic Development & Energy Department. Applications are available on the YDDA's website. Source: Tim Colbeck, Ypsilanti DDA Writer: Natalie Burg, Development News Editor

South State Street Corridor Plan moves toward implementation

By Natalie Burg, Development News Editor

●

Community Development

●

February 27, 2013

A new draft plan to guide development along the South State Street Corridor has been approved for distribution to stakeholders. With more than 40 recommendations for the two miles of S. State Street between Ellsworth and Stimson Street, the plan is intended to eventually become a part of the City of Ann Arbor's Master Plan. Corridor planning is a relatively new concept, and an important one, says the City of Ann Arbor's Jeff Kahan. "These corridors are where a lot of the action is going to be taking place over the next half a century," he says. Because these are typically areas that function as entrances to the city and border neighboring communities, the South State Street Corridor Plan is a collaborative effort, not only with area stakeholders, but also with other ongoing planning efforts, such as Reimagine Washtenaw and AATA's Connector Study. "One of the interested facets of the South State Street Corridor is there aren't tons of residents who live within the study area," says Kahan. "There is an apartment community and one single-owner occupant " With better public transportation nodes and improved walkability, that could change, says Kahan. In addition to attracting more housing, these factors would improve the experience of visitors to Ann Arbor in a key hotel area. "If you are staying in a hotel near Briarwood, it is not easy to get over to those restaurants," he says. "We want to create activity zones near transit sites." The State Street Corridor Plan is the result of a study that included public forums and stakeholder interviews. Now that the draft plan has been developed, it has been authorized by city council to be distributed to neighboring municipalities. Those entities will have 42 days to submit feedback on the plan, after which an additional public hearing will take place before the South State Street Plan is ready for final approval. Source: Jeff Kahan, City of Ann Arbor Writer: Natalie Burg, Development News Editor

SkySpecs takes top prize at Michigan Clean Energy Venture Challenge

By Newsroom

●

Community Development

●

February 20, 2013

SkySpecs has taken another top prize in local business plan competition and tens of thousands of dollars more in seed capital with it. The downtown Ann Arbor-based start-up recently took the top prize worth $50,000 at the Michigan Clean Energy Venture Challenge. It also took third place in the student portion of the Accelerate Michigan Innovation Competition, worth $10,000. The company, founded by University of Michigan students, is developing unmanned aerial vehicles that use artificial intelligence to gather data in hazardous locations, such as collecting structural data in hard to reach places under bridges. A2B Bikeshare, another U-M student-led start-up, took second place at the Michigan Clean Energy Venture Challenge. The showing was worth $15,000 in seed capital for the bike-sharing start-up. The Michigan Clean Energy Venture Challenge is a business plan competition co-founded by the University of Michigan and DTE Energy. The competition, in its fifth year, aims to serve as a springboard for Michigan's college students to launch sustainability-oriented start-ups. This year it attracted participants from a broad range of colleges across the Great Lakes State, including Michigan State University and Western Michigan University. "We were able to reach across the state," says Amy Klinke, assistant director at the University of Michigan's Center for Entrepreneurship. "We had 70 teams apply this year." Source: Amy Klinke, assistant director at the University of Michigan's Center for Entrepreneurship Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

New investment fund could mean big things for Ann Arbor startups

By Newsroom

●

Community Development

●

February 13, 2013

Beringea, along with Credit Suisse, is launching the second investment fund for Michigan Growth Capital Partners. Michigan Growth Capital Partners II is a $180 million fund focused on providing investment capital for start-ups based in the Great Lakes State. The fund, which is expected to be deployed over the next 4-5 years, looks to focus on companies in the following sectors: advanced materials and manufacturing, health care and life sciences, media and communications, specialized consumer goods, homeland security, IT and clean technology. "There has been a tremendous increase in the level of innovation that has been taking place across the state," says Charlie Rothstein, founder & senior managing director of Farmington Hills-based Beringea. Ann Arbor-based firms have been the beneficiary of a significant chunk of change in the first fund, which was launched in 2008. Some of the local big names include ReCellular (the largest cell phone recycler in the U.S.) and Sakti3, a University of Michigan spin-out working on battery-storage technology for electric vehicles. Both are based in Ann Arbor. The biggest prize is Accuri Cytometers, an Ann Arbor-based bio-tech start-up that was recently acquired for nearly $300 million. There is no guarantee any of the money from the second fund will end up with any Ann Arbor-are start-ups this time around. But considering the robustness of the venture capital industry and the entrepreneurial ecosystem in Washtenaw County it looks like there is amply opportunity for a significant amount of the the $180 million in the Michigan Growth Capital Partners II to land in Ann Arbor. Source: Charlie Rothstein, founder & senior managing director of Beringea Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Pure Michigan Venture Dev Fund invests $4.5M in Ann Arbor VCs

By Newsroom

●

Community Development

●

February 6, 2013

The Pure Michigan Venture Development Fund has invested $4.5 million between two Ann Arbor-based venture capital firms. Michigan eLab and Resonant Venture Partners have each received $2.25 million from the Pure Michigan Venture Development Fund. The money originates from the Michigan Strategic Fund and is awarded by the Michigan Economic Development Corp. The money is targeting first- and second-generation venture capital funds based in Michigan. The capital is intended to help those funds raise additional funds, gain traction in the market and help grow the state's investment community. "It's validation because of the review process the MEDC puts you through," says Doug Neal, managing partner of Michigan eLab. "It's a nice step toward our fundraising goal. We're close to two thirds of the way to our first close of fundraising." Michigan eLab is a early stage technology venture fund focused primarily on IT and life science/health care companies that spin out from the University of Michigan. Neal is the executive director at the University of Michigan's Center for Entrepreneurship. His co-founders include Rick Bolander, Scott Chou (venture capital veterans since the 1990s) and Bob Stefanski (a Silicon Valley serial entrepreneur with a number of technology start-up exits under his belt). The venture capital firm is working to bring both more seed capital and expert business coaching into the local entrepreneurial ecosystem from places like California. "We're not just about venture capital," Neal says. "We are also about bringing talent back to Michigan." Two University of Michigan MBA graduates launched Resonant Venture Partners in 2010 after leading the Ross School of Business' Wolverine Venture Fund. The firm's focus is to fill the need for early stage investments in tech companies. Its investment portfolio includes some of the region's highest profile start-ups, such as Duo Security (an Internet security start-up that has attracted funding from Silicon Valley) and Accio Energy (an alternative energy start-up led by the CEO that built Accuri Cytometers into a acquisition worth hundreds of millions of dollars). The Pure Michigan Venture Development Fund plans to invest in as many as two more new Michigan-based venture funds. Winning venture funds must raise additional private-sector capital amounting to at least 4.5 times the state's investment. The Pure Michigan Venture Development Fund is currently accepting application until February 28. Applicants are required to raise at least $1 million in private capital, but not more than $25 million, from at least three unrelated investors at the time of application. Source: Doug Neal, managing partner of Michigan eLab Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor SPARK lands $1M to expand reach regionally

By Newsroom

●

Community Development

●

January 30, 2013

Ann Arbor SPARK has landed $1 million in funding from the Michigan Strategic Fund that will help the economic accelerator expand its reach across Washtenaw County. "This broadens the geography and the number of companies that we can serve," says Paul Krutko, president & CEO of Ann Arbor SPARK. The money will go toward creating the Washtenaw County Incubator Collaborative, which will help bring Ann Arbor SPARK's business incubator activities across the county. The idea is to help further the growth of tech-based start-ups and jobs across the county. Ann Arbor SPARK will partner with the MC3 Business Accelerator and the Michigan Research Institute to leverage the $1 million in state funding (and $722,500 in matching funds from the participating agencies) to create the the Washtenaw County Incubator Collaborative. The new partnership will focus on the medical device and defense industries as well as other high-growth industries in Washtenaw County. "We need to deal with regional solutions," Krutko says. Source: Paul Krutko, president & CEO of Ann Arbor SPARK Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Shape Ypsi master planning launches new website, public outreach

By Natalie Burg

●

Community Development

●

January 30, 2013

A common criticism of government studies and plans is that after all the time and effort spent developing them, they are put into a binder and tucked into a shelf. With the recently launched "Shape Ypsilanti" website and social media campaign, the city of Ypsilanti intends to create a master planning process that defies such an outcome by being both active and flexible. The goal of a master plan is to establish a long-term vision for land use and development. The Shape Ypsilanti master planning process is a part of Washtenaw County’s Community Challenge Grant. The city will receive $180,000 to generate a master plan and zoning ordinance revisions. While the master plan itself garners most of the attention, the ordinance revisions are a major part of the project. "We’re hoping to have the master plan drafted by this summer," says Ypsilanti City Planner Teresa Gillotti. "Then we switch gears and start revising our zoning ordinance. Then we'll have a little bit of muscle in the master plan." According to Gillotti, building flexibility into the plan is the result a lesson the city learned after drastic changes to the economy altered the relevance of their 1998 master plan. Because no one can anticipate exactly what the future will hold, the Shape Ypsilanti process will include the unique feature of developing community values along with the land use vision. "We want to have consensus on our guiding principles, so when things change we still know where we’re going," says Gillotti. "Instead of saying, 'we can only do option A, B or C,' we can say, 'Does D fit our principles?' It’s a neat idea." The Shape Ypsilanti process launched Jan. 17 with an interactive website and social media. Public focus groups and charrettes will begin next month. Gillotti encourages members of the public to join in the planning process, and to visit the website for opportunities to get involved. Source: Teresa Gillotti, Ypsilanti City Planner Writer: Natalie Burg

Ann Arbor public housing to get up to $20M upgrade

By Natalie Burg

●

Community Development

●

January 30, 2013

The process may be a bit complicated, but the end result will be better quality living spaces for public housing residents in Ann Arbor, including better energy efficiency and the use of green products to lower utility bills and reduce health issues. Earlier this month, the Ann Arbor Housing Commission (AAHC) moved closer to making these renovations with a U.S. Department of Housing and Urban Development (HUD) program known as RAD, or the rental assistance demonstration program by selecting Norstar Development USA as a private sector partner for the project. A 2009 Physical Needs Assessment determined that more than $40,000 in capital investment per unit is needed for AAHC units over the next 15 years. According to AAHC Executive Director Jennifer Hall, public housing residents won't be the only benefactors of the much-needed upgrades. "The City will benefit because it will support the local economy by providing $15 to $20 million in construction work, professional services and tenant jobs," she says. "The neighborhoods will benefit because these units will be an asset to the neighborhood once they are completely renovated." In order to make the investment possible, the AAHC must first convert their operating subsidy source from a HUD public housing budget to a HUD project-based voucher budget. While this won't change the amount tenants pay for their housing, it will provide a more stable source of rent subsidies. "Public Housing is severely limited in the type of funding it can secure for capital improvements," she says, "and changing to project based vouchers will enable the Housing Commission to secure the funding it needs to maintain its units." Ultimately, that funding will come from the sale of Low Income Housing Tax Credits, through the Michigan State Housing Development Authority, which AAHC will earn, but will not need to use, as they are a tax-exempt organization. To complete the plan successfully, the AAHC must secure funding within one year and finish renovations within three years. Source: Jennifer Hall, AAHC Executive Director Writer: Natalie Burg

Talking Energy and Environment with the State’s Valerie Brader

By Veronica Gracia-Wing

●

Community Development

●

December 19, 2012

Affordable energy, reliable energy, and protecting our environment were part of the governor's recent 'Ensuring Our Future' message. Veronica Gracia-Wing digs into the details with the governor's deputy legal council and senior policy advisor.