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SPARK East Incubator

Action Outcome

Establish a high-tech business incubator in downtown Ypsilanti.  The incubator, known as SPARK East, is leased and operated by Ann Arbor SPARK with an initial five-year term.  Having office space and SPARK business services available downtown for new companies will provide several benefits.  Reduced rent and business accelerator services will help foster new innovative companies and employment in the area.  The new incubator tenants will generate sales for local businesses along Michigan Avenue while being exposed to the area’s culture and living environment.

Status

  • SPARK East opened in March of 2009.
  • Secured a $1.2M five-year operating budget from grants and key stakeholders (see funding sources below).
  • Currently 70% occupied with ten physical tenants and five virtual tenants: 

       A All Animals -- Green animal and pest control
       Brainstorm Creative -- International greeting card and gaming supplier
       Clean Suite Inspections (CSI) -- "Green Clean" certified inspector 
       Climate Technologies -- New technology for alternative energy
       GRH, LLC -- Medical devices manufacturing company
       Michigan Job Development
       Radiant Communications -- Voice Image services: training, speaking and coaching
       Sensei Change Associates -- Strategic and organizational change consulting services
       The Elbow Room -- Existing bar/music venue expanding its product line
       VC Web Design -- Offers a full line of web services
       Magic Coast (Virtual) -- Internet video streaming service
       Real Kidz (Virtual) -- Clothing for girls ages 5-12 focusing on above average sizes

  • SPARK East is home to the Shifting Gears program, which helps former “big company” employees transition into “new economy” leaders.
  • The incubator has hosted over 50 events in 2009 including the entrepreneur marketing educational program Marketing Roundtable, career transition Brown Bag lunch series, business launch of Real Kidz and community events such as “The B Side” graduations.

For information contact Shamar Herron, SPARK East Manager, at Shamar@annarborusa.org or visit www.annarborusa.org.

Funding obtained from:

     Ypsilanti Township - $15,000
     City of Ypsilanti - $15,000
     Superior Township - $15,000
     Ypsilanti DDA - $15,000
     Eastern Michigan University - $300,000
     Washtenaw County - $100,000
     Other Private Funders - $30,000
     Entrepreneurial Tenant Rent - $180,000
     Meeting room rental - $5,000
     Ann Arbor Community Foundation - $50,000
     State of Michigan Incubator Funding - $250,000
     Federal Earmark Grant - 1st year operating - $183,000
     Federal Earmark Grant - Start-up Capital - $99,000

Action Champions

Dave Mielke, Dean EMU College of Business
Mike Finney, President and CEO, Ann Arbor SPARK
David Behen, GDI Infotech

Action Manager

Shamar Herron, Ann Arbor SPARK

Action Team

Greg Fronizer, Ann Arbor SPARK
Brian Vosburg, Ypsilanti DDA
Charlie Penner, Washtenaw Community College
Diane Keller, Ypsilanti Chamber of Commerce
Ed Koryzno, City of Ypsilanti
Roy Wilbanks, EMU
Scott Olson, Ann Arbor SPARK
Tom Harrison, Michigan Ladder
James McFarlane, Washtenaw County
Anthony VanDerworp, Washtenaw County
David Behen, GDI Infotech

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