Holland SmartZone

About the Holland SmartZone

Lakeshore Advantage and the Michigan State University Bioeconomy Institute (MSUBI) were approached by the City of Grand Rapids to consider becoming a satellite SmartZone. Since no new SmartZone designations are available, the only way a region can utilize the tax tool is by collaborating with an existing SmartZone and being approved for satellite status. All SmartZones have a strong university connection and contain some type of business incubator/accelerator and technology consultation support.

In April 2016, Holland's satellite SmartZone status was approved by the Michigan Economic Development Corporation and the State of Michigan Treasury, allowing for Tax Increment Financing (TIF) capture of state education taxes for economic development within the SmartZone's geographic boundaries to support high tech emerging businesses and entrepreneurs.

Contact SURGE powered by Lakeshore Advantage for SmartZone resources and entrepreneurial assistance. 

CLICK HERE to learn more about the Local Development Finance Authority that oversees the Holland SmartZone. 

CLICK HERE to download the Holland SmartZone geographical boundary map. 

CLICK HERE to apply for a community infrastructure project that supports high tech, high growth startups to be funded by the Holland SmartZone.

Funds available for projects within the SmartZone boundaries of the City of Holland: $86,550 as of July 1, 2019. 

Funds available for projects within the SmartZone boundaries of Holland Charter Township: $18,225 as of July 1, 2019.

 

Holland SmartZone Historic Timeline

  • August 2014 – Holland considers creating satellite SmartZone of Grand Rapids.
  • September 2014 - SmartZone district and governing local development authority created.
  • October 2014 – Satellite application submitted to the MEDC.  Application is fourth submitted. Only three zones allowed by law.
  • November 2015 - Senate Bill 1097 is created to allow for additional SmartZones.
  • December 2015 – Holland SmartZone plans on hold due to a technical issue in amending Senate Bill 1097.
  • February 2015 – New legislation H.B. 4226, sponsored by Rep. Daniela Garcia, is introduced. Bill allows for additional SmartZones.
  • July 2015 – H.B. 4226 is signed into law by Governor Snyder.
  • November 2015 – Holland receives approval from the MEDC to become a satellite SmartZone of Grand Rapids.
  • January 2016 – Holland authority SmartZone tax increment financing (TIF) and business plans receive unanimous local approval from City of Holland, Holland Charter Township.
  • February 2016 – Holland SmartZone action plans headed to the State for Treasury, MEDC approval. 
  • April 28, 2016- Final state approval to capture state and local taxes.            

About the Michigan SmartZone Program

The Michigan SmartZone program was started in 2005 as a tool to spur technology development and business creation. SmartZones are specific geographic areas recognizing that technology professionals and companies demand certain amenities and support services that are unlike other industries. In SmartZone areas, unique technology development, entrepreneurial support, and infrastructure are available to meet the needs of growing technology companies.

Designation of a SmartZone, by the Michigan Economic Development Corporation (MEDC), allows an approved region to create a Local Development Financing Authority (LDFA) board to utilize the approved tax capture mechanism that captures incremental increases in certain taxes. This tool does not capture any existing taxes or have the ability to levy additional taxes.

The satellite zones have a commitment to work with the partner zone on joint projects of interest. No exchange of resources or control of revenue collected in either zone is required in the partnership agreement.
CLICK HERE to learn more about the Michigan SmartZone program.