1. ©2006 Ann Arbor SPARK October 10, 2011 Ann Arbor SPARK Peter Allen’s Real Estate Finance Class

2. ©2006 Ann Arbor SPARK “SPARK” will be the driving force in establishing the greater Ann Arbor region as a desired place for business expansion and location...by identifying and meeting the needs of business at every stage, from those that are established to those working to successfully commercialize innovations. Mission Statement 2

3. ©2006 Ann Arbor SPARK Organization Merger of Washtenaw Development Council, Ann Arbor IT Zone and Ann Arbor SPARK Public – Private partnership among academia, business, government and not-for-profit organizations Governed by a dynamic board of directors Led by superior caliber employees, consultants and volunteers Stakeholders include: universities, businesses, state and local governments, regional innovation focused membership organizations 3

4. ©2006 Ann Arbor SPARK High-value, knowledge-intensive, diverse workers Innovation in products, services and delivery Ann Arbor USA (brand entire region) Proactive versus reactive “Open Source Economic Development” Statewide Collaboration/Partnerships Guiding Principles 4

5. ©2006 Ann Arbor SPARK Open Source Partners Accelerate Michigan Ann Arbor Angels Ann Arbor Area CVB Ann Arbor Board of Realtors Ann Arbor Business Review Ann Arbor/Ypsilanti Chamber Ann Arbor Community Foundation Ann Arbor.com Ann Arbor-Ypsilanti, LDFA Automation Alley Business Accelerator Network for Southeast Michigan Business Leaders for Michigan County and Local Units of Government Detroit Regional Economic Partnership Eastern Michigan University Enterprise Group of Jackson Genesee/Flint Regional Partnership Home Builders Association of Washtenaw County Macomb Oakland Incubator MichBio Michigan Department of Labor and Economic Growth = Regional/State Partners = Washtenaw County Partners 5

6. ©2006 Ann Arbor SPARK Open Source Partners Michigan Economic Development Corporation Michigan Manufacturing Technology Center Michigan SmartZones Michigan Venture Capital Association Washtenaw County, Michigan Works!/ETCS New Economy Initiative for SE Michigan NextEnergy Small Business & Technology Development Centers Southwest Michigan First TechTown Traverse City Chamber of Commerce University of Michigan University Research Corridor Washtenaw Community College West Michigan Science & Technology Initiative Washtenaw County United Way Wayne County EDGE Wayne State University Ypsilanti CVB = Regional/State Partners = Washtenaw County Partners 6

7. ©2006 Ann Arbor SPARK Municipal Funding Support 7

8. ©2006 Ann Arbor SPARK Vital Cycle of Success 8

9. ©2006 Ann Arbor SPARK Outward-Oriented Industries Drive Rest of the Economy 1. Advanced Automotive Manufacturing & Materials 2. Aerospace Engineering & Manufacturing 3. Cleantech 4. Homeland Security & Defense 5. IT/Software 6. Life Sciences 7. Optics/Measurement 8. Printing & Publishing 9

10. ©2006 Ann Arbor SPARK Community Success Factors Shaped By Our Public-Private Partnership 10

11. ©2006 Ann Arbor SPARK Advanced Automotive Manufacturing and Materials Aerospace Engineering and Manufacturing Cleantech Homeland Security and Defense IT / Software Life Sciences Optics / Measurement Printing and Publishing Targeted Industry Sectors Focus on a finite set of emerging technologies or industry sectors 11

12. ©2006 Ann Arbor SPARK Business Expansion and Attraction The SPARK expansion and attraction team services include: Customized site searches of industrial and office buildings Consulting and targeting of business incentives and tax credits A database of employers and services in the region that is continually updated and expanded Access to business, educational and community resources Provision of business costs, demographics and other statistical data Community tours and introductions to business leaders 12

13. ©2006 Ann Arbor SPARK Business Expansion and Attraction MichAGAIN Target UM, MSU Alumni hot spots Alumni Reception Targeted Companies for One on One Meetings Site Selection Consultants Venture Capital Firms 2010-2011-Austin, Chicago, Boston, San Francisco, San Jose 2012-Boston, Chicago, New York, San Francisco/San Jose, San Diego/LA, Denver Successes-Cataphora-Languagemate 12

14. ©2006 Ann Arbor SPARK  A&D Technology, ACH Instruments, Adaptive Materials, Aeroflex Enmet, Amcor, Arbor Networks, BoroPharm, CEI Composites, Dexter Research, DiggyPOD, Edwards Brothers, Fastener Advance Products, Flatout Bread, Ford Rawsonville, Frame Hardwoods, Grand River, Heron Wind, Hygieia, i3D Technologies, Image Data, Integrated Sensing Systems, InTouch Health, JAC Products, Masco Cabinetry, NanoBio, Phoenix Contact Inc, Quantum Signal, Retrosense, Robert Bosch, Saline Lectronics, Sheridan Books, Sun Engineering 2010 Successes 13

15. ©2006 Ann Arbor SPARK Companies Recruiting services to candidates through targeted job postings Workforce availability and compensation research Access to pool of executive level candidates Entrepreneurs Job/co-founder/advisory board members Training programs Access to pool of executive level candidates Talent Services 14

16. ©2006 Ann Arbor SPARK Opportunity Seekers Job postings and opportunities Networking events Community Strategic workforce research and planning University graduate talent attraction and retention programs Talent Services 15

17. ©2006 Ann Arbor SPARK SPARK’s Business Accelerator Services Entrepreneur Boot Camp Intensive one-on-one coaching Attraction of funding via angels, VC’s, state/federal grants Business-critical introductions Market research and competitive analysis Intellectual property validation Talent needs assessment and recruitment Business plan review and assistance Review product plans, validation steps, and regulatory issues Business Accelerator 16

18. ©2006 Ann Arbor SPARK Michigan Pre-Seed Capital/Microloan Fund ($16.8 million) Eligibility: Competitive edge technology sectors; life sciences, advanced automotive, manufacturing or materials, homeland security and defense and alternative energy 20 Ann Arbor companies have received $3.352 million of investment from this fund, matched with $6.7 million 98 jobs at time of investment, 138 jobs today Ownership or license to innovative technology Michigan Pre-Seed Capital/Microloan Fund 17

19. ©2006 Ann Arbor SPARK Regional Incubator Network Project Goals: Improve the business climate for competitive-edge technology companies in the Ann Arbor region Preserve valuable wet laboratory space Foster new life science, IT/software, alternative energy start-ups Retain and attract highly skilled talent, creating new high- wage employment opportunities Provide a competitive advantage to Ann Arbor start-up companies 4 SPARK Central tenants have “graduated” and located elsewhere in the city due to increased employment Regional Incubator Network 18

20. ©2006 Ann Arbor SPARK 42 (15 in city) company growth projects creating: –$151 million in new investment commitments –1,425 new jobs Assisted 62 innovation start-ups Awarded 12 pre-seed investments –3 in the city of Ann Arbor - $750,000 30 microloans –18 in the city of Ann Arbor – total loans $596,000 Nurturing 60 incubator tenants –17 in SPARK Central Assisted 400 companies with 1,300 job postings 2010 SPARK Success 19

21. ©2006 Ann Arbor SPARK 2006 – 2010 YTD Results 176 project successes - $1.25 billion new investment commitments – 59 in the city, $165,971,869 new investment 10,474 new jobs and 6,236 jobs retained –In Ann Arbor 3,692 new jobs, 2,072 retained Assisted 278 innovation start-ups 48 Microloans in 46 companies ($39k/company average) 177 tenants in three regional incubators Leveraged community investments to over $34 million – through Federal and State grants, equipment donation to MIED, foundations and other sources Assisted 1,401 companies with 4,105 job postings Assisted 4,300+ job seekers with employment searches Ann Arbor Region ROI 20

22. ©2006 Ann Arbor SPARK Questions: Luke@annarborusa.org Twitter: annarborusa www.AnnArborUSA.org