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HomeMy WebLinkAbout07-09 ResolutionRECORD OF RESOLUTIONS Passed A RESOLUTION AUTHORIZING FUNDING IN SUPPORT OF THE TECHCOLUMBUS THIRD FRONTIER GRANT APPLICATION Dayton Legal Blank. Irc_ Form No 300»5 07-09 Resolutiotz No. 20 WHEREAS, Dublin's dynamic local economy is the direct result of an entrepreneurial spirit; and WHEREAS, the City of Dublin recognizes that in addition to its efforts to retain, expand and attract business, the City must also "set the conditions" for "job creation;" and WHEREAS, the City of Dublin must facilitate entrepreneurship in order to increase the level of entrepreneurial activity and improve the chances of establishing successful technology enterprises by honing their skills and providing access to necessary tools, technical and financial resources, and by working proactively to enhance the local entrepreneurial environment; and WHEREAS, it is the goal of the City of Dublin to accelerate the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services in order to produce successful companies that will be financially viable, freestanding and create quality jobs for the region; and WHEREAS, TechColumbus is a membership-led and non-profit organization of Central Ohio-based technology companies designated to serve as the lead agency to apply for, receive and manage Third Frontier funds received from the State of Ohio on behalf of a fifteen (15) county region comprised of Central Ohio counties; and WHEREAS, TechColumbus requests the City of Dublin contribute dollars along with others in Central Ohio for the purpose of pooling matching dollars in order to attract additional Third Frontier funds from the State of Ohio; and WHEREAS, Dublin businesses have benefited from such funds in the past, resulting in new business, technology and job growth. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State of Ohio, ~ of the elected members concurring: Section 1. That the City Manager is hereby authorized to fund a total of $150,000 to TechColumbus in the following amounts for the purpose of contributing towards matching dollars for a State of Ohio Third Frontier grant: (a) $50,000 in 2009 as a supplemental appropriation to the Economic Development budget, and (b) S50,000 in 2010 to be programmed in the Economic Development budget, and (c) X50,000 in 2011 to be programmed in the Economic Development budget. Section 2. That this Resolution shall take effect upon passage in accordance with Section 4.04(a) of the Revised Charter. Passed this day of `'~ , 2009. ayor- Presiding Officer ATTEST: Clerk of Council Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017 Phone: 614-410-4400 • Fax: 614-410-4490 CITY OF DI,;ELtN Memo TO: Members of the Dublin City Council FROM: Teary Foegler, City Manager ~ ;~_~ DATE: February 26, 2009 `((~,`,,'`~ INITIATED BY: Dana L. McDaniel, Deputy City Manager/Director of Economic Development RE: Resolution 07-09, TechColumbus' Third Frontier Grant Proposal Summary Attached for Council's consideration is Resolution No. 07-09. If aproved, this Resolution would authorize certain funds to be paid to TechColumbus. As the region's lead agency (15 county area), TechColumbus is attempting to raise 51 million of match from the region in order to apply to receive 52 million from the State of Ohio Third Frontier grant program (see attached letter). If successful, this will replenish the existing TechCo&~mbus Pre-Seed Fund II with a total of $3 million, which may then benefit Dublin-based start-up companies and technologies. The City's contribution toward the regional match will be in addition to the City's $750,000 commitment to the Entrepreneurial Signature Program. TechColumbus is requesting an additional 5200,000 in each year (2009 and 2010) for a total of $400,000. TechColumbus' Pre-Seed Fund 11 will provide dollars in addition to the Entrepreneurial Signature Program. Dublin-based start up companies and start-up technologies have benefited from the City's relationship with TechColumbus' grant funds and its services. These grant funds have come from the TechColumbus Pre-Seed Fund and Entrepreneurial Signature Program. To date, Dublin-based companies have received the following: • $1.7 million -direct funding paid to five (5) Dublin companies by TechColumbus (combination of Third Frontier e ants consisting of two grant program funds: Pre- Seed FundslRegional Conunercialization Fzmds and Entrepreneurial Signature Progrmn funds); • $1.8 million -indirect funding received by Dublin companies from other private sources; • 53.5 million -total paid to six (6) Dublin companies; and • 5350,000 -amount paid to TechColumbus by Dublin toward the Entrepreneurial Signature Program. (The return on this investment back to Dublin companies is ten times the amowrt paid so far. The City is still committed to pay another $400,000 to the Erzb~epreneurial Signature Program over the next two years - 2009 & 2010). Forty-two (42) Dublin start-up companies and technologies have benefited from TechColumbus' services. "the Agreement executed between Dublin and TechColumbus in 2007 (Entrepreneurial Signature Progrmn) has produced positive results. In the past, Rick Coplin and staff have provided Council reports demonstrating the efforts, activities and outcomes of TechColumbus' services. Staff and TechColumbus continue to work together to maximize the benefit of TechColumbus' services and Memo to Council re Resolution 07-09, TechColumbus' Third Frontier Grant Proposal February 26, 2009 Page 2 of 2 Dublin's investment in the Entrepreneurial Signature Progrmn. One key aspect of the City's efforts regarding company and technology start-up efforts includes the Dublin Entrepreneurial Center (DEC). Attached is a summary of the City's ongoing and projected activities for the DEC. Recommendation Staff recommends Council approve Resolution 07-09 to provide funding in the following amounts: • $50,000 in 2009 as a supplemental appropriation request to the Economic Development budget and • $50,000 in 2010 and $50,000 in 2011 to be programmed in the Economic Development budget. TechCohmrbus will be present to address City Council and respond to questions at its March 2na meeting. A contribution of matching dollars towards the Third Frontier Grant application will demonstrate the City's leadership in the region and will support City Council's goal to create high-tech and knowledge-based jobs. ~~ TECHCOLUMBUS ACCELERATING THE BUSINESS OF TECHNOLOGY 1275 Kinnear Rd. I Cdumbus, OH 43212 P: 614487-3700 I F: 614497-3704 February 12, 2009 Dublin City Council ATTN: Dana McDaniel City of Dublin 5200 Emerald Parkway Dublin, Ohio 43017 Dear Members of Council: am writing this letter today to update you on the efforts and success of the Central Ohio Entrepreneurial Signature Program and solicit Dublin's assistance on the next step. This letter will explain our current request for match funding, the results from the current venture development activities of TechColumbus and Central Ohio ESP, and the benefits to date for the citizens of the City of Dublin. Background: TechColumbus manages a continuum of several early stage "preseed" investment funds that date back to Scitech's first fund in 2001. Most of these funds are fully invested, and we manage the portfolio. The latest fund, the TechColumbus Regional Commercialization Fund, which was founded in 2007, has committed all of its $2.25 million to eight early stage Central Ohio companies, three of which are located in Dublin. TechColumbus is leading a proposal to the Third Frontier for a new grant for the TechColumbus PreSeed Fund II. This new fund is critical to the continuation of TechColumbus' entrepreneurial support activities known as TechStart, which includes IP market validation, incubation, coaching and mentoring, entrepreneurs in residence, and expert business consulting. The City of Dublin is currently supporting these services through the previously allocated $750,000 to the Entrepreneurial Signature Program. This new grant opportunity is to replenish our preseed fundin activity. The size of the new fund will be $3 million ($2 million of grant, and $1 million of "cost share"). Fund Purpose: The purpose of this new fund is to provide very early preseed capital to technology based startups in the Central Ohio region, with the goals of attracting follow-on investments, revenues and creating high paying tech jobs. This fund will invest before typical marketplace investors, such as angels and venture capitalists, due to the riskiness of such early stage companies. Investment decisions are made by our blue ribbon Investment Committee. The TechColumbus PreSeed Fund II will continue its predecessor funds' mission and help "bridge the valley of death" for promising tech startups and help Dublin City Council February 12, 2009 Page 2 them to become fundable by angel investors and venture capitalists. The TechColumbus PreSeed Fund is considered a "non-profit" fund in that its cost share is made up of contributions from Central Ohio stakeholders, and its returns will be used to invest in and support additional Central Ohio tech startups. The Third Frontier Process: The Request for Proposals for the preseed fund was released by ODOD on December 29, 2008 our proposal is due March 12, 2009. In order to compete for the state grant, a compelling proposal must be submitted, and cost share provider commitments for the $1 million of match must be included in the proposal. Therefore, we must raise commitments for the $1 million of cost share prior to submitting the proposal. Results to date: The local impact from the existing funds and the Entrepreneurial Signature Program has been outstanding. To date, Dublin has contributed $375,000 in cash towards the Central Ohio Entrepreneurial Signature Program, and Dublin companies have received more than $3.5 million in cash investments in the last two years. City of Dublin Results Summary {Since February 2007, the start of the ESP) (Detail Followsl 42 Dublin startups have been assisted $1.70 million Funding directly from TechColumbus funds to Dublin companies 5 Number of Dublin companies directly funded. 42 Jobs created by Dublin funded companies $29,987 Average annual salary of funded companies $236,948 Revenues of Funded Dublin companies $1.87 million Other capital raised by Funded and Assisted Dublin companies Central Ohio Reeion Summary (Since 2003) $10.3 million Funding directly from TechColumbus funds to Central Ohio companies 44 Number of Central Ohio companies funded 665 Jobs created by Central Ohio funded companies $65,253 Average annual salary of funded companies $125.6 million Follow on capital raised (Cash following our investment). $207.8 million Follow on capital raised and revenue generated from funded and incubated companies. Dublin City Council February 12, 2009 Page 3 City of Dublin Request In only the last two years, the TechColumbus results have created high paying tech jobs, wealth, and a Dublin story, and this is just the beginning. We look forward to working with you to craft this story, and request that Dublin provide cash cost share for this new grant of $200,000 in 2009 and 2010. Best regards, ~~~~ Ted ford President/CEO Attachment City of Dublin City of Dublin ESP Contribution as of 12/31/08: $375,000 TechColumbus Related Funding since February of 2007 TechColumbus Direct Investments Brand Thunder Ohio TechAngel Fund II 200,000 Brand Thunder TechColumbus PreSeed Fund 350,000 Caster Ventures Ohio TechAngel Fund II 200,000 Activity Circle TechGenesis Grant 45,000 Cardiox Corporation TechColumbus PreSeed Fund 350,000 Znode Ohio TechAngel Fund II 200,000 Znode TechColumbus PreSeed Fund 350,000 1,695,000 Outside Investments and Sidecars Brand Thunder OTAF II Sidecars 100,000 Caster Ventures OTAFIISidecars 300,000 Caster Ventures VClnvestors 60,000 Activity Circle Angel Investor 20,000 Cardiox Corporation Reservoir Venture Partners 350,000 Independence Bio-Products Angellnvestor 1,000,000 1,830,000 Debt Financing Activity Circle Unknown Institution 35,000 35,000 Sales Revenues Caster Ventures Brand Thunder Znode 36,200 10,000 190,748 236,948 Dublin Companies Grand Total 3,796,948 Dublin Entrepreneurial Center The Dublin Entrepreneurial Center ("DEC's is both a physical space and is rapidly evolving as a virtual place that provides services and synergy to new start-up business and technologies. PHYSICAL SPACE. 7003 Post Road. Council approved an Economic Development Agreement (EDA) with the owners of the 7003 Post Road fu.cility. This facility provides the "brick and mortar"/physical space now known as the DEC. The EDA enables the City to have a training room, office space, use of common space and lobby and naming rights for the building at 7003 Post Road. In exchange the City is upgrading the facility's teclmolog~ capabilities to include Wi-Fi and optical fiber, resulting in improved internet/telecommunications services. Services. It is in this physical space that the City has been developing and housing unique partnerships that bring service and synergy to the DEC. a. TechColumbus. Rick Coplin ofTechColumbus has physically established his office at the DEC. TechColumbus has assisted forty two (42} Dublin- based companies and helped six companies receive $3.5 million in grant fluids and private investment. b. Workforce Development/Columbus State Communit.~ge. The City has executed an Agreement with the Center for Workforce Excellence, Columbus State Community College. They have already engaged several Dublin companies and will have apart-time presence at the DEC. c. Small Business Development Council SBDC. The SBDC will continue providing services to Dublin companies and intends to have a paa-t-time presence at the DEC. d. Platform Lab. Platform Lab provides a competitive advantage to its clients by offering short term physical or remote access to IT hardware, software and massive bandwidth for all types of companies for the explicit purpose of IT testing and projects. Platform Lab is a member ofTechColumbus and is anot-for-profit entity. Staffis developing an MOU with Platform Lab offering them training room space at the DEC in exchange for upgrades to recycled Dublin computers and other services. e. Center for Innovative Food Technolo„ (y CIFT~. As a result of an EDA, CIFT will establish an office at the DEC for the purpose of a food sensor tecluiology project. LIFT will provide the first Edison Center presence in the DEC. 3. Relationships. Staff continues to identify and develop relationships with those who have an interest in the DEC and its synergies. a. TechStart. This is an ongoing networking event organized by TechColumbus. These are intended to occur at least three times per year in Dublin and are often sponsored by other Dublin businesses. b. EnteraTech (pending. EnteraTech specializes in writing SBIR grants for businesses. Staff is in the process of discussing a relationship with EnteraTech. c. Enterprise Ireland. Enterprise Ireland is the government agency responsible for the development and promotion of the indigenous business sector. Its mission is to accelerate the development ofworld-class Irish companies to achieve strong positions in global markets resulting in increased national and regional prosperity. Economic Development met with Enterprise Ireland last November and will meet with them again in March. We are attempting to form a relationship with them to see if Ireland-based technology and business transfer can occur in Dublin, Ohio. d. EBS Visas. Staff is exploring the possibilities of EBS Visas. A foreign entrepreneur and immediate family can obtain green cards (Permanent US Residency) with an EB5 visa by investing $500,000 to $1 million into a Government approved Regional Center, creating a business and creating jobs. 4. Education. a. Columbus State Communit~ge. b. Tolles Technical Center. Staff is actively working with Tolles Technical Center on the possibility of a Green Engineering and entrepreneurial curriculum. c. Entrepreneurial College. Staff anticipate receiving a proposal in March 2009 from a party interested in establishing an Entrepreneurial College. This college would welcome those interested in entrepreneurship in attending classes that teach not only the text book approach to entrepreneurship, but would also involve serial entrepreneurs as teachers, coaches and mentors. The student will enter the school to learn and develop entrepreneurship and will leave the school with a certification or degree and a business plan in hand. d. CISCO Entrepreneurship Program. We have met with the representative of the international CISCP entrepreneurship program. This program introduces serial entrepreneurs into the class room through internet media. e. CISCO Network Academy. Staff has explored the possibility of introducing a CISCO Network Academy into the DEC as an adult training/re-training opportunity as well as for youth. f. Entrepreneurship Youth Camp. Staff is exploring the possibility of a youth entrepreneurship camp. 5. Start-up Businesses and Technolo i. i.~A primary mission ofthe Post Road facility is to accommodate start-up companies and technologies. Business, beyond the incubation mode, can co-locate at the facility and lease rooms by the office or suite and on a short-term basis. The co-location of this type of business and technology promotes potential synergies among the businesses and connects them directly to the services also physically located there. a. Vitality Distributing_ b. Caster Ventures. c. Delonti. d. Socius. e. Opticon Medical (7001 Post Road - 3 employee earl.'~ge medical products business) f. Others. City staff and TechColumbus have identified a significant number of possible start-up companies and technologies interested in Dublin. We continue to develop relationships with them, understand their needs and assess how we may help with the intent of attracting/retaining/creating them in Dublin. As mentioned previously, forty two Dublin-based start-up companies have been identified and received various levels of service from TechColumbus. VIRTUAL PRESENCE. A very unexpected and most promising outcome has been the evolution of a virtual presence of the DEC through several venues. We are beginning to experience a "viral" spread of the DEC through social media and networks of entrepreneurs/technology startups. 1. Meet up -Dublin based TechLife Columbus was established in August, 2008 to accelerate networking opportunities for Dublin entrepreneurs and innovators. Closelty aligned with TechColumbus, it now has over 825 members from across Central Ohio and has held over 70 networking, educational and charitable events. TechLife Columbus has become a key integration point for bringing central technologists together. http:;`Iw«~«~.meetup.comltechlifecolumbus 2. Techlife Wiki - A companion to TechLife Columbus Meetup, Dublin based Columbus TechLife Wiki was established to support virtual conversations and learning opportunities for Central Ohio entrepreneurs. TechLife's mission is to foster a greater culture and passion for Social Media, Internet, Web and other cutting edge technology, ultimately leading to increased innovation. The Wiki format enables all members to contribute and discuss in a virtual environment. http:I,'`techlife.pbwiki. com 3. LinkedIn -Two primary LinkedIn groups for Central Ohio Entrepreneurs exist as part of the LikedIn professional networking website. TechColumbus (httpa,/~~~~i~~i~.linkedui.com/groups'?gid=39787) has over 400 members and Dublin based TechLife Columbus has over 600 members (http:l,'«~«~«~. linkedin. con~lgroups?gid=1776905 ) 4. Jellies -Jellies are a casual work event for professionals that typically work alone who'd like to occasionally work alongside other creative people. Networking and casual collaboration are attractive aspects of these events. Jellies typically have a lunchtime educational presentation and discussion tailored to the group. Dublin has a high percentage of uidividuals working out of home offices. The DEC will be home to monthly Jellies where these professionals can work alongside other professionals in a casual environment. DHB Wireless is providing free high speed Internet access and lunches will be sponsored by Qwirk. 5. Facebook - A Facebook page for the Dublin Entrepreneurial Center has been establish as another avenue of virtual connection to the DEC. http :I,`poprl. co m;'L3 5 6. Other. 117 ~RKETING 1. Open House. The City of Dublin is hosting an Open House at the DEC on March 19 from 7:30 to 10:30 a.m., which will include aribbon-cutting, tours of the building and a chance for visitors to learn more about the companies and resources located in the DEC. The SBDC will present the program "Ideas to Deals" in the training room during the event and Vice Mayor Cathy Boring will make brief remarks before the ribbon-cutting. Invitations have been e-mailed to targeted groups, who have been asked to forward the invitations. To date, roughly 150 people have indicated that they will attend. 2. Collateral Materials. Information on the DEC was included in a flyer distributed at the BioOhio Conference in Dublin, Oct. 21-22, 2008. A four-page brochure on the DEC and Innovation Park was distributed at the Mid-America Economic Development Council Competitiveness Conference in Chicago, Dec. 7-9, 2008. 3. Web Site. A Web portal is being developed by DHB Networks, which will include a video of the DEC and links to the Web sites of all participants in the DEC. 4. Published Articles. Stories on the DEC and its participants have appeared in the Columbus Dispatch (2/25109), the Dublin Villager (6/25/08), Dublin News (2/25/09), Dublin Chamber new-sletter, and the TechColumbus newsletter. More press is anticipated preceding and following the Open House. 5. Additional Promotions. a. The DEC has been promoted to various groups including the Dublin Chamber of Commerce Small Office, Home Office (SOHO) group. b. Dana McDaniel has been asked to participate in a global panel discussion at the Intelligent Community Forum's "Building the Broadband Economy" conference in New York in May. The focus of the session asks panelists to describe specific programs -from boosting broadband use to entrepreneurship training -that increase their communities' "economic fitness" in good times and bad. c. Removable wall graphics that promote the City of Dublin Economic Development brand are being created for the lobby and fourth floor of the DEC.