Grand TraverseGrand TraverseNext MichiganNext Michigan

Development Development CorporationCorporation

What does it mean for the communities of What does it mean for the communities of Grand Traverse County?Grand Traverse County?

Grand Traverse Next Grand Traverse Next MichiganMichigan1.1. The IntentThe Intent2.2. The Interlocal AgreementThe Interlocal Agreement3.3. The PartnersThe Partners4.4. What is an Eligible Business?What is an Eligible Business?5.5. The ObjectivesThe Objectives6.6. The ToolsThe Tools7.7. The BenefitsThe Benefits

The IntentThe Intent

► The Next Michigan Development Act (PA 275 of The Next Michigan Development Act (PA 275 of 2010) allows for the creation of a Next Michigan 2010) allows for the creation of a Next Michigan Development Corporation, by interlocal Development Corporation, by interlocal agreement, that fosters economic opportunities agreement, that fosters economic opportunities in this State, prevents conditions of in this State, prevents conditions of unemployment and underemployment, and unemployment and underemployment, and promotes economic growth focused on multi-promotes economic growth focused on multi-modal transportation.modal transportation.

► The intent of the Grand Traverse Next Michigan The intent of the Grand Traverse Next Michigan Development Corporation is to create a Development Corporation is to create a cooperative partnership with local units of cooperative partnership with local units of government to use incentives to attract new government to use incentives to attract new businesses that depend on multimodal businesses that depend on multimodal commerce.commerce.

The Interlocal AgreementThe Interlocal Agreement

►Grand Traverse CountyGrand Traverse County►City of Traverse CityCity of Traverse City►Garfield Charter TownshipGarfield Charter Township►East Bay Charter TownshipEast Bay Charter Township►Blair TownshipBlair Township►Agreement approved by the GovernorAgreement approved by the Governor►Five-member BoardFive-member Board

The PartnersThe Partners

► Cherry Capital AirportCherry Capital Airport►Northwestern Michigan CollegeNorthwestern Michigan College► Traverse City Area Chamber of CommerceTraverse City Area Chamber of Commerce► Traverse Bay Economic Development Traverse Bay Economic Development

CorporationCorporation►Grand Traverse County Road CommissionGrand Traverse County Road Commission► TC-TALUSTC-TALUS►Michigan Economic Development Michigan Economic Development

Corporation (MEDC)Corporation (MEDC)

What is an Eligible Business?What is an Eligible Business?

► An eligible Next Michigan business is a business engaged in the An eligible Next Michigan business is a business engaged in the shipment of tangible personal property via multimodal commerceshipment of tangible personal property via multimodal commerce

► A A supply chainsupply chain business providing a majority of its services to business providing a majority of its services to businesses engaged in the shipment of tangible personal property, businesses engaged in the shipment of tangible personal property, including inventory, via multimodal commerceincluding inventory, via multimodal commerce

► A A manufacturing or assembly facility receivingmanufacturing or assembly facility receiving a majority of its a majority of its production components via multimodal commerceproduction components via multimodal commerce

► A A manufacturing or assembly facility shippingmanufacturing or assembly facility shipping a majority of a majority of products via multimodal commerceproducts via multimodal commerce

► A A light manufacturing or assembly facility that packageslight manufacturing or assembly facility that packages, kits, , kits, labels, or customizes products and ships those products via labels, or customizes products and ships those products via multimodal commerce.multimodal commerce.

► ““Multimodal commerce” means companies that move products or Multimodal commerce” means companies that move products or servicesservices via 2 or more modes: air, roads, rail or water via 2 or more modes: air, roads, rail or water..

The ObjectivesThe Objectives

►Encourage local cooperation Encourage local cooperation ►Enable the incentives to be used in a Enable the incentives to be used in a

coordinated approach -- not piecemealcoordinated approach -- not piecemeal►Take advantage of existing regional Take advantage of existing regional

transportation assets transportation assets ►Use economic incentive tools with Use economic incentive tools with

proven track recordproven track record►Streamline permitting processesStreamline permitting processes

The Tools – Tax AbatementsThe Tools – Tax Abatements

►Grant real and personal property Grant real and personal property abatements to any eligible next abatements to any eligible next Michigan businesses Michigan businesses

►Ability to establish a plant Ability to establish a plant rehabilitation district or industrial rehabilitation district or industrial development district development district

The Tools – Tax Increment The Tools – Tax Increment FinancingFinancing► Establish a multi-jurisdictional Local Establish a multi-jurisdictional Local

Development Finance Authority (LDFA) Development Finance Authority (LDFA) to utilize tax increment financing for to utilize tax increment financing for public infrastructure improvementspublic infrastructure improvements

► How is this different than current tool?How is this different than current tool? Allows townships to utilize toolAllows townships to utilize tool Ability to cross jurisdictional boundaries Ability to cross jurisdictional boundaries Ability to capture state taxes – with Ability to capture state taxes – with

approval from State Treasurerapproval from State Treasurer

► Ability to utilize Renaissance Zone Ability to utilize Renaissance Zone designationsdesignations

►Only eligible businesses can seek Only eligible businesses can seek Renaissance Zone designationRenaissance Zone designation

► ““No-poaching” -- Incentive is to attract No-poaching” -- Incentive is to attract newnew outside Michigan investment, not move jobs outside Michigan investment, not move jobs around Michiganaround Michigan

► Background check is a statutory requirementBackground check is a statutory requirement► If Michigan Strategic Fund does not act If Michigan Strategic Fund does not act

within 49 days, approval is automaticwithin 49 days, approval is automatic

The Tools – Renaissance ZonesThe Tools – Renaissance Zones

The Tools – How are they The Tools – How are they different?different?

►Not subject to MEDC approvalNot subject to MEDC approval►Coordinated efforts / all units of Coordinated efforts / all units of

government know what tools are being government know what tools are being offered throughout the entire County / offered throughout the entire County / regionregion

►Must be utilized on “eligible Must be utilized on “eligible businesses”businesses”

The BenefitsThe Benefits

►Create jobsCreate jobs►Allows additional tools to be utilized to Allows additional tools to be utilized to

attract NEW businesses (including attract NEW businesses (including start-ups)start-ups)

►Connects business growth with current Connects business growth with current infrastructure – airport / roads infrastructure – airport / roads

►Allows local governments to work Allows local governments to work together on economic developmenttogether on economic development

►MEDC will market NMDC communitiesMEDC will market NMDC communities

For More InformationFor More Information

►Contact:Contact:Grand Traverse County Grand Traverse County

Planning & Development DepartmentPlanning & Development Department

400 Boardman Avenue400 Boardman Avenue

Traverse City MI 49684Traverse City MI 49684

Phone: Phone: (231) 922-4676(231) 922-4676

Web:Web: www.grandtraverse.org/planningwww.grandtraverse.org/planning