Government

Systems in Motion to hire 1,084, invest $15M in Ann Arbor

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September 23, 2009

One of Silicon Valley's fast growing start-ups has chosen Ann Arbor as the place to make its first investment.Systems in Motion plans to invest $15 million and create 1,084 jobs at a new IT support center in Ann Arbor over the next five years. The IT firm also looked at making its first investment in other marquee college towns, like Austin, Texas and Durham, North Carolina before deciding on Ann Arbor."I think Ann Arbor is a marquee name in college towns as well," says Debashish Sinha, chief marketing officer for Systems in Motion.The California-based firm is only 3 months old but has already been able to lock down some venture capital funding and hire 20 people. Systems in Motion plans to create the next generation of IT infrastructure and workers by setting up IT support center at college towns across North America. The combination of the University of Michigan, Eastern Michigan University and Washtenaw Community College made the Ann Arbor area a prime target for Systems in Motion. To help make this happen was a tax-incentive package the state put together. Systems in Motion will receive up to $1.5 million in workforce development funding and a 100 percent employment tax credit over seven years.Source: Debashish Sinha, chief marketing officer for Systems in MotionWriter: Jon Zemke

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Ann Arbor govt pushes further into techworld

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Community Development

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September 23, 2009

Ann Arbor city government is pushing further into the tech world these days, sometimes by choice and sometimes by necessity.The city recently offered a call-in service for its public meeting, similar to how a radio show takes questions on air. Normally, people who want to express opinions have to come to the meeting in person and state their case. This newest service let them do it from their cell phone.The city is also looking to move its public notification system into the 21st Century by posting public notices online. This came up when The Ann Arbor News closed this summer leaving the city without a daily newspaper, the normal vehicle for posting public notices like upcoming council votes and informational sessions.Now that the paper is gone, the city is maneuvering to see if it can just post these sort of notices online to satisfy the city's ordinance governing this practice. If so, it would be one of the first local municipalities to rely on this method. Source: City of Ann ArborWriter: Jon Zemke

U-M crosses $100M mark in stimulus funding, expects more

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Community Development

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September 23, 2009

A lot of federal stimulus money is starting to roll into the University of Michigan, and more is on the horizon.The university just passed the $100 million mark last week for federal stimulus money, which is up nearly $40 million in a little over a month. And a lot more federal stimulus research grants are expected to migrate into university coffers."They just keep rolling in," says Jim Erickson, senior public relations officer for the University of Michigan. "Every couple days they come in.Most of this money is coming from the stimulus money cache of the National Institutes of Health and National Science Foundation. One of the bigger grants is $19.5 million for a new U-M research center to explore new materials for solar cells. More money is expected to come in throughout the rest of the year. Just how much is possible is unknown at the time, but Erickson guesses it will be a lot. "We had a lot of faculty aggressively pursuing these [funds] Erickson says.Source: Jim Erickson, senior public relations officer for the University of MichiganWriter: Jon Zemke

Spending on U-M research hits $1 billion for 1st time

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Community Development

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September 16, 2009

The University of Michigan has hit the $1 billion mark for research funding this year for the first time.Research spending is up 9.4 percent over last year for a total of $1.02 billion. About two thirds of that money comes from federal funding, which is also up 7.1 percent from the previous year. These numbers cement U-M as one of the premier economic engines in Metro Detroit, Michigan and even the Midwest region."That number ($1 billion) represents hundreds of faculty and students who are very entrepreneurial," says Marvin Parnes, associated vice president of research for the University of Michigan. The U-M has been focusing more of its resources toward creating entrepreneurial opportunities. For instance, it has helped launch 49 start-ups spun off from the university's research over the last five years. About 70 percent of them are still in Michigan. "The University of Michigan is one of the largest and most productive research institutions in the world," Parnes says. "There are only a handful of institutions who spend that much on research within a year."Source: Marvin Parnes, associated vice president of research for the University of Michigan.Writer: Jon Zemke

Developer, neighbors reach agreement on Near North

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Community Development

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September 16, 2009

Near North is doing something many big developments in downtown Ann Arbor haven't been able to do lately – move toward approval with some sort of consensus.The developer recently pulled its plans and the local coalition of neighbors around the project site dropped their opposition. The project is now set to go before the Ann Arbor City Council on Monday for approval thanks to the compromise. "It wasn't so much a deal as it was a collaboration on design changes that made the project so much better," says Bill Godfrey, the developer behind Near North.The neighborhood coalition came forward with nine proposed changes to make the development on North Main Street just south of Depot Street conform to the surrounding historic neighborhood. The developer and his architect, Damian Farrell, went back to the drawing board and came up with a plan that for once made just about everyone happy."To Damian's credit he kept an open mind and was able to incorporate all of the changes they suggested," Godfrey says, adding that it helped that the neighbors were working with professionals who were able to make key translations and explain the reasoning behind certain aspects of the development.Among the changes are taking one floor off the top, so it is at most four stories high. Previously, the development could have arguably reached five stories at one point (depending whether you viewed the lowest floor as ground or basement level) because of the way it was built into the surrounding hill. The developer also increased the setback from 10 to 15 feet, agreed to add more landscaping and make it more pedestrian friendly.The developer also pulled the two buildings apart to break up the massing of the building. The façade and unit design was also changed so the development has a more horizontal look. The developer also agreed to hold off on the ground floor market plans until grant money is secured to buy and clear the nearby party store and create an adjacent green space."We're starting to define Phase 2 of the project, which is the design of the floodway," Godfrey says. "A nice new greenway next to our building would be awesome."The new development will feature 39 one-bedroom apartments. Of those 25 will be dedicated to affordable housing (people who make less than $34,000) and the rest for supportive housing. Godfrey is hopeful the development will be able to incorporate previously announced environmentally friendly features, like a green roof."We're going to try," Godfrey says. "We think it's important that the green movement isn’t limited to people with large incomes."Whether that becomes a reality is up to funding. Godfrey expects to apply for housing tax credits and search out a primary investor who will own and run the building this winter. Construction is expected to begin this summer and be done as soon as eight months later.Source: Bill Godfrey, developer of Near NorthWriter: Jon Zemke

Microloans fill small-scale funding gap for Ann Arbor entrepreneurs

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Community Development

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September 9, 2009

A little bit of money at the beginning can go a long way toward creating a successful start-up, or at least that's the idea behind the new micro-loan funds in Washtenaw County.Excerpt:Ann Arbor economic development officials are hoping that microloans can be an economic jump starter for entrepreneurs thirsting for cash.Local officials have pooled $1.5 million in funds for comparably tiny business loans designed to boost startup companies with few traditional financing routes.Skip Simms, Ann Arbor SPARK’s business acceleration managing director, said microloans fill a financial need during a funding crisis that threatens to stall creativity in an era when Michigan needs it most.Read the rest of the story here.

Center for Mich takes long look at Dillion healthcare pool plan

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Community Development

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September 9, 2009

The Center for Michigan has taken a long, intensive look at state House Speaker Andy Dillion's healthcare plan and has come to the conclusion that the state needs to take a long, intensive look at implementing the reform."We are endorsing the exploration of the idea," says John Bebow, executive director of the Ann Arbor-based think-and-do tank. "The idea of trying to find new solutions is what we're applauding."Dillion, a Democrat from Redford, proposed pooling the health benefits for all municipal employees in Michigan earlier this summer. The idea is that the large pool of tens of thousands of employees will create a tremendous amount of efficiencies and savings. Dillion claims it will save the state about $1 billion.The innovative proposal has drawn applause and fire from different sections of the power elite in Lansing. Business-based interests and state Senate Majority Leader Mike Bishop (R-Rochester) have endorsed it as an easy choice to help play a significant part in fixing Michigan’s chronic budget deficit. Labor unions and Gov. Jennifer Granholm have decried the plan, saying there is no proof it will create cost savings.The Center for Michigan's study of seven other states that pool municipal employees health benefits show that these state pay $6,435 per employee. Michigan spends an average of $9,386 per employee, about 53 percent higher. The Center for Michigan studied California, Delaware, Georgia, Massachusetts, North Carolina, Washington and Wisconsin. Bebow admits that all states and their circumstances are not created equal, but this is the best comparison available."It's not apples to apples because apples to apples doesn't exist," Bebow says.Source: John Bebow, executive director of The Center for MichiganWriter: Jon Zemke

Ann Arbor’s tech community banks on millions in federal stimulus funds

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Community Development

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September 2, 2009

If money follows talent, Ann Arbor should be feeling pretty good right now.Excerpt:The federal economic stimulus package is becoming an ATM for Ann Arbor's technology community.The $787 billion program, officially called the American Recovery and Reinvestment Act, is becoming a financial beacon of hope for university researchers and local entrepreneurs.A sudden flood of stimulus funding to the Ann Arbor region reflects the research talent and engineering strength of the local economy.Read the rest of the story here.

Debate over Argo Dam nears a head

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Community Development

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September 2, 2009

Ann Arbor is soon to find out whether Argo Dam will hold.The Ann Arbor City Council will hold a work session on the controversial subject on Tuesday, where city staff will lay out options for dealing with the dam. Basically, it boils down to whether to fix it up or tear it down."We're hoping Council will give us direction on how to proceed," says Jayne Miller, community services area administrator with the city of Ann Arbor.That means City Council could make a decision, or not. If it doesn't, it would probably be put off until later this fall. The City Council has long planned to put this issue to bed before the end of the year.The Michigan Department of Environmental Quality is forcing the city's hand on the issue, sending a letter with specific deadlines for addressing the state agency's concerns with Argo Dam. The dam is at a critical juncture right now. Many environmentalists are pushing for the 89-year-old dam's removal, a move that would create 30 acres of new parkland, 20 acres of new flood plain and some Class 1 rapids (beginners level) along the Huron. It would also drain the primary rowing pond in the city, which is utilized by local high school, college and recreation crew teams. Those groups are pushing for its preservation.Argo Dam was originally built by Detroit Edison to generate hydroelectricity, but was decommissioned in 1960s. It also created the 92-acre Argo Pond, now a favorite spot for hundreds of small-boating enthusiasts, such as rowers and canoers who often refer to it as the city's largest blue park.The dam is due for about $500,000-$600,000 in repairs on top of annual maintenance expenditures worth tens of thousands of dollars. The cost of dam removal is pegged at $1.3 million. The Michigan Department of Natural Resources recommended removing the dam in the 1990s. The city's Park Advisory Commission voted 5-4 to keep Argo Dam earlier this year while the city's Environmental Commission voted 8-4 for removal shortly after.The final decision will be made by the City Council and is expected sometime in the near future. The next meeting will be held at 5:45 p.m. in City Hall. For information on the dam, click here.Source: Jayne Miller, community services area administrator with the city of Ann ArborWriter: Jon Zemke

University of Michigan’s Stephen Forrest: ‘We’ve got to commit to something’

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Community Development

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August 26, 2009

Ann Arbor's newest tech chief, Stephen Forrest, is making the case for more incentives to lure more new economy businesses to Michigan.Excerpt:Stephen Forrest doesn’t mind picking winners.In fact, he thinks it’s imperative.Forrest, the University of Michigan’s vice president for research and chairman of Ann Arbor SPARK, is a fervent proponent of leveraging university technology to reconstruct Michigan’s economy on the backbone of alternative energy and other technologies. Michigan’s attraction of $1.3 billion in battery grants from the U.S. Department of Energy in July marked a key step in the state’s economic revival plan, he said. Read the rest of the story here.