Ypsilanti leaders focus on collaboration and cooperation as economic development tool
Eastern Leaders Group, a public-private consortium focusing on the communities in east Washtenaw County, entered spring with an action plan to encourage economic development in the Ypsilanti area.
At the top of the list: improving the West Cross Street corridor and furthering educational opportunities for area high schoolers at partner organization Eastern Michigan University.
But as those goals were presented Monday to a group of nearly 100 business, community and political leaders at EMU, the theme through the morning kept returning to a bigger focus: Collaboration.
Some speakers emphasized the opportunities to encourage economic development beyond the county borders.
Mike Finney, CEO of Ann Arbor SPARK, calls it “open source economic development.”
“As our state does better, our region does better,” he said, explaining why economic activity beyond the Washtenaw County can benefit this area. Key to making that happen successfully, he added, are collaborations and partnerships.
Wayne County Executive Robert Ficano gave two specific examples of efforts in his county that drive that vision of collaborating for collective benefits.
The first, creating an “aerotropolis” zone around Detroit Metropolitan Airport - including Willow Run Airport - has been a years-long goal already involving several communities along I-94.
If successful in winning state legislation allowing incentives to drive development in the 60,000-acre district, the aerotropolis “could generate $11 billion in economic activity,” Ficano said.
In the meantime, General Electric recently moved into Van Buren Township, establishing the Advanced Manufacturing and Software Technology Center, which is already ahead of pace to hire 1,200 workers over the next five years.
It’s also generating specific revenue at nearby businesses, like the Westin hotel at the airport, where Ficano said an additional $1 million revenue can be attributed to GE-related travel.
Another unintended consequence, Ficano said, is the hiring of auto supplies for GE manufacturing needs that do not directly result from the Van Buren Township facility. Instead, the company’s awareness of the region after opening the tech center resulted in new spinoff business worth an estimated $25 million. And the next two rounds of bids will be worth a combined $3 billion.
That business may not be in Wayne County, Ficano said, since bidding companies are located along the I-275 corridor and along I-75 in Oakland County.
However, he said, the benefits “are spread to the region.”
Promoting regional growth needs to be a goal for the eastern part of the county - Ypsilanti, Ypsilanti Township and Superior Township - said many of the leaders who spoke Monday.
The reason, they said, is because the communities show more economic fragility when compared to the rest of the county and to the state.
Two particular challenges, said Tony VanDerworp, is the loss of jobs and the higher foreclosure rate.
VanDerworp, the county’s director of economic development, said Ypsilanti Township’s per capita income fell 19 percent from 2006-2008, while the state’s average drop was 10.5 percent.
He attributed that to the loss of more than 14,000 higher-paying manufacturing jobs since 2001.
In addition, 40 percent of the county’s 351 foreclosures filed in 2009 were in Ypsilanti or Ypsilanti Township.
Solving those problems can happen systemically by focusing on creating a knowledge-based economy, leaders said, and regional development that targets projects like tech centers and advanced manufacturing will play a role in it. So will educational opportunities, and encouraging entrepreneurs.
Yet forging cooperation among the eastern Washtenaw communities comprising the Ypsilanti area also took center stage on Monday.
Many speakers reported gains on that front, saying that decades of competition were being erased due to the economic benefits of collaboration.
“We’ve built trust among people,” said Brenda Stumbo, Ypsilanti Township supervisor. “Historically, that’s not been there.
“ One of the good things about this economic crisis is that people are working together.”
The message was echoed by Ypsilanti City Manager Ed Koryzno.
“The most important thing we’ve done is recognize the benefits of working cooperatively and together rather that competitively,” said Koryzno. “We recognize the change we’re facing is significant.”
Working with county leaders and EMU on the Eastern Leaders effort is part of that, officials said. Leveraging county goals and multiple funding sources is helping with a greenway development and West Cross Street improvements in the city are examples mentioned by Koryzno.
Other specific efforts include Ann Arbor SPARK’s Ypsilanti-based business incubator, which has 14 tenants and accounts for 34 jobs. A microloan fund has generated 24 jobs and retained 17, according to estimates after four loans were made.
Creating opportunities like that for entrepreneurs will fuel economic recovery, Finney said.
“The future of the east part of the region will be highly dependent on how we do in that entrepreneurial space,” Finney said.
So will continuing cross-jurisdictional collaboration, officials said.
Improving education, adding to mass transit options and building the region’s brand all will require more cooperation, yet also yield economic development benefits, they said.
“We need to make people want to bring their businesses here,” said Bill McFarlane, Superior Township supervisor.
Click here to view the Ypsilanti area promotional video that debuted at the Eastern Leaders Group meeting on Monday.
Paula Gardner is Business News Director of AnnArbor.com. Contact her at 734-623-2586 or by email. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.
Comments
Alice Ralph
Sun, May 23, 2010 : 3:42 p.m.
There is a lot to chew on in this article. Sometimes I make a few notes as I read. This one is loaded! At least one per paragraph, including that VanDerworp is director specifically of the Washtenaw County Economic Development and Energy Department, not of all county economic development. Which getr to the overall question for the relatively thriving county seat: As the relative economic engine of Washtenaw, what is Ann Arbor's role/place/responsibility in local economic development? Collaboration and cooperation is the best course, and beyond UM and EMU, what about those "cross-jurisdictional" relationships? Those need to be understood, strengthened and enhanced, too. These are important questions, like government priorities, to sound out with taxpayers.