SmartZone approved for tax capture extension
Tax capture in the SmartZone has been extended for an additional five years.
The extension was approved by State Treasurer Nick Khouri and Michigan Development Corporation Chief Executive Office Steve Arwood, after a recommendation by the Local Development Finance Authority and Mount Pleasant City Commission.
The Central Michigan University Research Corporation is part of a 350-acre park on CMU's campus. Each SmartZone in Michigan is partnered with a university or local government, according to the Middle Michigan Development Corporation. This land is used for commercial development.
"Obtaining state approval was the final milestone necessary towards the progressing development of the SmartZone land," said Central Michigan University Research Corporation President and CEO Erin Strang in a press release. "New efforts are geared toward attracting and solidifying business development and job creation."
Strang said about 900 jobs have been created since CMURC, a business incubator, was established in 1999. She projects 500 additional jobs within the next five years.
A tax capture, or utilization of tax increment funds, municipalities can dedicate future tax revenues of a particular business toward an economic development project in that community.
As required, the SmartZone will need to provide reports for companies and jobs created, as well as investment to all companies.
