Grand Rapids
Michigan

GR Agenda Item

SmartZone Local Development Finance Authority Fiscal Year 2018 Budget Adoption

Information

Department:Economic Development StaffSponsors:
Category:Budget

Attachments

  1. Item Description
  2. SZ FY2018 Budget for Adoption

Content A

Attached is the SmartZoneSM Local Development Finance Authority (SmartZoneSM LDFA) FY 2018 budget, which the SmartZoneSM LDFA recommended to the City Commission at its meeting on May 19, 2017. The City Commission approved the FY 2018 budget without modifications at its meeting on June 6, 2017. The budget is now being presented to the SmartZoneSM LDFA for adoption.

 

The FY 2018 estimated tax increment revenues are projected to decrease more than 14% from FY 2017 tax increment revenues.  This is primarily due to losses associated with real property taxable values and industrial personal property exemptions.  Tax increment revenues for the parcels added to the SmartZoneSM Certified Technology Park in 2016 are anticipated to be $4,163, or less than 0.4% of total tax increment capture.  No Michigan Economic Development Corporation (MEDC) grant revenue is anticipated in FY 2018.

 

The FY 2018 budget expenditures are now separated into the Strategic Priorities defined in the 2016 Amended Tax Increment Financing Plan and Development Plan.  Each Strategic Priority contains an appropriation for Future Initiatives, in accordance with the SmartZoneSM LDFA’s determination at its meeting on February 23, 2017.  Expenditures in the FY 2018 budget provide for continued operations, developer reimbursement, local and national marketing, participation in medical device trade shows, support of the business accelerator and incubation services, and infrastructure projects.  Expenditure amounts for infrastructure projects are primarily projections for potential infrastructure needs in the Certified Technology Park. 

 

Each expenditure amount in the FY 2018 budget, with the exception of Michigan Street Bridge debt service, Tradeshows/MiDevice/Regional Innovation, and Michigan Street Improvements, will be brought to the SmartZoneSM LDFA for further consideration.  Approval of these projects under the FY 2018 budget serves only to appropriate funds.

 

The FY 2018 budget complies with the recently approved Amended and Restated Grand Rapids SmartZoneSM Agreement between the City, the SmartZoneSM LDFA and the MEDC.  Staff recommends adoption of the SmartZoneSM LDFA FY 2018 budget.

 

KLW/cb

 

Attachment