Title
Resolution to Approve the Amended and Restated Agreement between the City of Ann Arbor and City of Ypsilanti for the Local Development Finance Authority
Memorandum
This resolution approves the amended agreement between the City of Ann Arbor and the City of Ypsilanti for the SmartZone LDFA. Approval of this agreement is necessary to comply with the revised terms of the Tax Increment Financing and Development Plan for the Ann Arbor/Ypsilanti SmartZone as Amended, which is a three party agreement with the State of Michigan. This agreement establishes the SmartZone to invest State funds to foster the development of high technology enterprises through commercialization of university technologies and the establishment of new firms.
The primary revisions to the agreement include:
* Ten (10) percent of SmartZone funds can now be expended in Ypsilanti. Each city council must approve their respective budget.
* The Board composition is being modified to require seven (7) members from the municipalities, one (1) from the county, and one (1) from the community college.
* Requiring the cities of Ann Arbor & Ypsilanti to each have ex-officio positions since funds are expended in both communities and there is increased complexity in managing the board's affairs.
* Requiring Ann Arbor's council representative, once appointed, to serve the full four (4) year term unless the representative resigns from the Board. This is required under Public Act 57.
Both municipalities are required to approve this agreement before it can become effective. After an agreement is approved, the SmartZone board is required to amend its bylaws to be consistent with the agreement. These revised bylaws will be provided to each city council and will go into effect within thirty (30) days of being notified if the councils do not act upon them.
Budget Impact: There is no budget impact with adoption of this agreement. Each municipality will consider the SmartZone budget as part of the full Cit...
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