Ann Arbor SPARK signs lease to expand its downtown offices
Economic development group Ann Arbor SPARK signed a lease to expand its offices at the downtown building that also houses Google's AdWords office.
SPARK signed a deal with Ann Arbor-based real estate firm McKinley Inc. to take over 2,200 square feet in space recently vacated by TechArb, the University of Michigan's incubator for student-led businesses.
Ann Arbor SPARK CEO Paul Krutko said the group is expanding its offices at McKinley Towne Centre, which also houses Google. SPARK's business incubators, including the Liberty Street spot shown above, are not included in the expansion.
Angela Cesere | AnnArbor.com
That move left empty offices right next to SPARK on the fourth floor of the McKinley Towne Centre, which also houses Google and law firm Bodman.
SPARK negotiated with McKinley to sign a new, expanded 10-year lease for its existing space and the old TechArb space, SPARK CEO Paul Krutko said in an interview. The economic development group separately operates business incubators on Liberty Street in downtown Ann Arbor, Michigan Avenue in downtown Ypsilanti and Plymouth Township. SPARK currently leases 3,250 square feet in space.
Krutko said the additional space is necessary to house new employees SPARK expects to hire as a result of a recent influx in funding from the Michigan Economic Development Corp. The group's lease was set to expire in about 14 months.
SPARK received $10.8 million for three programs, including $9.17 million for the Michigan Pre-Seed Capital Fund, a pass-through investment program in which SPARK invests in early-stage companies throughout Michigan with oversight from the state's 15 SmartZones.
The group — a nonprofit that gets about one-third of its operating budget from local tax dollars and the rest from local universities, municipalities, businesses and individuals — also got $1.05 million to form a new initiative called the Michigan Angel Fund. In that program, SPARK will recruit rich private investors to pool about $2 million in cash that can be invested in very early-stage startup companies.
SPARK is also expecting to get new personnel paid for by the MEDC but collocated in Ann Arbor.
Krutko said SPARK needs space to house the MEDC workers and new staff members who will be hired to run the Michigan Angel Fund.
McKinley CEO Albert Berriz agreed to provide SPARK's space at a below-market rate as a gesture of the company's support of SPARK's activities, Krutko said.
"He believes in what were doing and he’s willing to make that available to us at a discounted rental rate, so we’re very pleased about that," Krutko said.
As part of the 10-year lease, McKinley will knock out a wall to connect SPARK's existing offices with the old TechArb space. The company will also conduct other renovations, including construction of some closed-off offices, in a two-month process expected to start next week.
(Editor's note: AnnArbor.com Executive Vice President Laurel Champion serves on Ann Arbor SPARK's Executive Committee.)
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
sig.melvin
Fri, Sep 2, 2011 : 5:25 p.m.
In what city are the jobs and how much do they pay? ten year contracts in this economy? we need to see the books. Why is the ypsilani office alway emty? How many poeple are employed there? realy neede to know.now!
snapshot
Fri, Sep 2, 2011 : 1:19 a.m.
Imagine that, another quasi government agency funded by tax dollars promoting and spending the money towards their own expansion and self interest, all while "saying" it for "our own good". Another DDA in the making?
Townie
Thu, Sep 1, 2011 : 4:35 p.m.
It is funny why AA.com just can't bring itself to really investigate what is going on here and why the SPARK audits are 'TOP SECRET'. AA.com seems willing to file FOIAs for other things but not this. It's really a very simple question for SPARK, its board and AA.com -- if there's nothing to hide then why is the audit hidden and locked away from those whose tax money is being used? Simple question - let's see how Ms. Champion responds. I think I already know from past coverage. DDA, Washtenaw County --- what are your excuses? Did you really get a copy of the audit or was it just summarized to you at a meeting? Bet I know the answer to that question as well!
Mr Blue
Thu, Sep 1, 2011 : 3:03 p.m.
Please let us, those who foot the bill for SPARK and the MEDC see the budget book and net jobs numbers.
BornNRaised
Thu, Sep 1, 2011 : 1:25 p.m.
So while they continue to leech tax dollars and make promises, they never open their books to show if those promises were empty lies or not. How many jobs have they created again? "SPARK will recruit rich private investors to pool about $2 million in cash that can be invested in very early-stage startup companies." I bet that's the last we'll ever hear. So we give them money, and then they get more money from 'rich private investors'. Open your books if you have nothing to hide. You're getting funding from tax dollars. How in the world do you figure you can hide the money from the people that fund you? More idiotic thinking that thrives in this city.
Townie
Thu, Sep 1, 2011 : 12:47 p.m.
Interesting how so many on the SPARK board are recipients of SPARK money or suppliers to SPARK. So much for independence issues. How about an independent audit of SPARK's job creation figures? Not going to happen with the nice cozy group there now. They're certainly happy to get our tax dollars, spend them and not be held accountable. You have to love the 'we're a private non-profit so we don't have to share any information'. A joke, really a joke on all of us who are paying for this. Yet our public officials (ask Washtenaw County, the DDA to release the audit) are playing right along with this fiction.
Kai Petainen
Thu, Sep 1, 2011 : 12:13 p.m.
Question: How many venture capital funds are in Michigan and how many are in Ann Arbor? I'd have to think that there are quite a few, and there might be a lot of competition between them? If there are a few/lot, how does that compare to other cities/states? Investing money is about investing money, but I think we could spur some economic growth/jobs in Michigan with the funds that we have in this state?
A2comments
Thu, Sep 1, 2011 : 11:35 a.m.
That's a lot of money for an organization that gets public funds yet doesn't release its finances...
Alan Goldsmith
Thu, Sep 1, 2011 : 10:34 a.m.
Note to Ms. Champion. Can you ask SPARK to open its financial records to the media and the public the next time you are at a board meeting? Since they receive tax funding and all? Thank you.