City Commission unanimously approved the recommendation by the Local Development Finance Authority (LDFA) to extend the Tax Increment Financing (TIF) Plan for an additional five years. The tax increment financing dollars are captured and directed towards economic development in the technology sectors.
In the early 2000s, an initial private-public partnership was developed to advance economic growth, which led to the designation of the SmartZone and the creation of the Central Michigan University Research Corporation (CMURC).
“This continued support is critical for the development of an entrepreneurial community. Through May 2015, approximately 900 jobs have been created and attributed to this partnership,” said CMURC President and CEO Erin Strang, “With a projection of 500 additional jobs created in the next five years.”
CMURC continues to be one of the top-performing accelerators in the state of Michigan, with proven results that positively impact the regional economy in part to allocations made by the LDFA.
“This is a reimbursement by the State of Michigan for the school portion of the taxes,” said City Manager Nancy Ridley, “This is not a net loss to the City as they are made whole.”
Not only does this extension foster continued delivery of entrepreneurial services, but with a robust technology infrastructure and access to a highly educated and skilled workforce, CMURC is primed to take an active role in the development of the SmartZone.
The TIF Plan has been submitted to the State Treasury Department for final approval.