Title
Resolution to Affirm the Continuing Public Purpose of the Ann Arbor/Ypsilanti SmartZone Local Development Financing Authority and Approve Application to MEDC for Extension of its Term
Memorandum
In 2001, the Michigan Economic Development Corporation (MEDC) created eleven separate SmartZones throughout the state, of which the Ann Arbor/Ypsilanti Local Development Financing Authority (LDFA) was one. The purpose of the Ann Arbor/Ypsilanti SmartZone is to provide capital needed for the facilitation of the commercialization of research products being developed at the University of Michigan and Eastern Michigan University and the development of private high technology enterprises that, but for this Authority, would be deferred, or located outside of the SmartZone area.
The City Councils of Ann Arbor and Ypsilanti approved and executed the necessary cooperative Agreements to create the LDFA and adopt a Tax Increment Financing and Development Plan in 2002. The geographic boundaries for the Ann Arbor/Ypsilanti SmartZone LDFA are defined as the combined DDAs of the two respective cities. Each DDA captures tax increment revenues from the captured taxable values of their respective development areas up to the maximum extent permitted by law and their respective DDA TIF Plans.
Under the approved TIF and Development Plan, the initial term of the LDFA was established as 15 years, during which the Ann Arbor portion of the LDFA's geographic boundaries was subject to capture of tax increment revenues commencing with levies imposed in 2003 through the levies imposed in 2018, specifically 50% of operating millage of local school districts and 50% of the State Education Tax levied upon the captured property. No levy was imposed on the Ypsilanti portion of the LDFA. The LDFA cannot capture tax revenues attributable to levies of any other taxing jurisdiction.
The Development Plan anticipated facilitation of the expansion of high-speed telecommunication infrastr...
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