SmartZone net income nears $100K
SmartZone net income nears $100K
By GARRETT NEESE, DMG Writer
HOUGHTON — The MTEC SmartZone will have profits near $100,000 both this year and next year, though additional funding will be required in subsequent years, SmartZone’s CEO told the Local Development Finance Authority Friday.
SmartZone CEO Carlton Crothers briefed the Finance Authority, which handles money for the SmartZone, on the year-to-date performance as well as the five-year projection.
The authority was set up between Hancock and Houghton to handle the collection of half of the cities’ share of non-homestead school tax.
Through the third quarter of the 2005-06 fiscal year, the SmartZone was primed to bring in more than $95,300 after expenses. Next year, that rises to $99,800.
That figure is bolstered by more than $108,000 in additional tax capture money coming in next year from the 2003-04 and 2004-05 fiscal years, with $37,000 more coming in the year after that.
The 2006-07 year is the last for the SmartZone’s grant from the Michigan Technology Tri-Corridor Fund, which provided $176,000 this year and $133,000 last year. As it stands, it also marks the end of the rosy financial projections.
Income is expected to drop from $99,800 in 2006-07, to $30,100 the next year, falling below $11,000 by 2011.
“We’ll definitely have to ramp up our grants and other sources of income,” Crothers said.
Those, he said, could include donations from other corporate contributions. SmartZone will also create a position expressly for grant writing, Crothers said, who will be pursuing grants for 2007-08 and future years.
Crothers said the SmartZone’s entrepreneurial work would generate interest from foundations and other groups.
“I’m confident,” he said. “That’s not going to be a problem.”
In other action, the LDFA:
• agreed to look into $30,000 in window repairs at the Portage Campus in Hancock and $12,000 or $30,000 options at the Powerhouse building in Houghton. The Powerhouse option would be dependent upon whether all windows were replaced, or only those with cracks.
• heard updates on the buildings. The Powerhouse currently has 47 full-time positions. A concrete floor will be poured in the basement in order to create more space, which will be leased to GS Engineering. The Portage Incubator now has 41 tenants. Construction issues between DP Construction and SmartZone have been resolved, with the SmartZone agreeing to pay 20 percent of the negotiated price on utilities. The building’s chiller pump has also been repaired for $2,200.
“You’re not burning up in here, so it’s working,” Crothers said.
Garrett Neese can be reached at gneese@mininggazette.com
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