HomeMy WebLinkAboutResolution 02-13RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc.. Form No 30045
02 -13
Resolution No
Passed 2 0
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH TECHCOLUMBUS
WHEREAS, the City's dynamic local economy is the direct result of an
entrepreneurial spirit; and
WHEREAS, the City recognizes that in addition to its efforts to retain, expand
and attract business, the City must also set the conditions for new business,
technology and job creation; and
WHEREAS, TechColumbus is the lead agency responsible for accelerating
business growth, job creation and prosperity for the 15 -county Central Ohio
region with a focus on operating a regional technology business incubator,
working with entrepreneurs and investors to develop and launch technology start-
up companies, and growing young companies that will provide the jobs of the
future; and
WHEREAS, the City and TechColumbus 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 both the City and TechColumbus 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 designated as the lead agency in the Central Ohio
region responsible for the administration of the TechStart program grant funding
consisting of funds from the Ohio 3r Frontier and local matching funds; and
WHEREAS, the City intends to continue its support of the regional effort to
create new companies, technologies and jobs by providing $200,000 in 2013 as
matching funds for the TechStart program; and
WHEREAS, the City has previously supported the Entrepreneurial Signature
Grant Program, the Regional Capitalization Program and TechStart program since
2007 in partnership with TechColumbus experiencing a nearly 17:1 return on
investment in Dublin -based companies; and
WHEREAS, the City and TechColumbus desire to enter into an Agreement
memorializing the responsibilities and commitments of each party to efficiently
and effectively execute the TechStart program.
NOW, THEREFOJZE, BE IT RESOLVED by the Council of the City of Dublin,
State of Ohio, of the elected members concurring:
Section 1 . That City Council hereby authorizes the City Manager to execute the
Agreement with TechColumbus, in the same or substantially the same form as
attached hereto.
Section 2. That the City commits to a total of $200,000 to be paid to
TechColumbus in Fiscal Year 2013 as its local match towards the TechStart
Program and in exchange for the services outlined in the Agreement to be
executed by the City Manager.
— °—
RECORD OF RESOLUTIONS
30045
Resolution No
02 -13
20
Section 3 . That this Resolution shall take effect and be in force on the earliest
date permitted by law.
Passed this day of LZhldav 2013.
Mayor- Pres Jdg Officer
Page 2 of 2
Passed
ATTEST:
J :::�Ulvlyz .0 / , -em2�
Clerk of Council
City of Dublin
Office of the City Manager
5200 Emerald Parkway • Dublin, 01-143017-1090
Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager`rc
Date: January 24, 2013
Memo
Initiated By: Dana L. McDaniel, Deputy City Manager /Director of Economic Development
Re: Resolution No. 02 -13 — TechColumbus Agreement
Background
Attached is Resolution No. 02 -13, authorizing the City Manager to enter into an Agreement
with TechColumbus. This Agreement represents a continuation of services provided by
TechColumbus focused on new company, technology and job creation in exchange for the City
providing matching funds for the "TechStart" grant program. The State of Ohio's TechStart
grant program is the primary funding mechanism to support this effort. TechColumbus is
designated as the lead agency in the Central Ohio Region responsible for the administration of
the TechStart grant program. This program is funded by a combination of the Ohio Third
Frontier and local matching funds. Local matching funds are provided by participating local
and county governments, higher institutions of learning, not - for - profit organizations and
private companies and individuals. The City's 2013 Operating Budget included $200,000 for its
local match.
Business creation is one of several key economic development strategies employed by the City
of Dublin. The centerpiece of this effort is the Dublin Entrepreneurial Center (DEC), its
programs, associated activities and companies located in and interacting with the DEC,
TechColumbus and the Small Business Development Center (SBDC). Businesses do not have to
be located in the DEC to receive TechStart funding or access to programming. In fact, most
Dublin companies receiving TechStart funds have not been located in the DEC. However,
those located in and participating in programs at the DEC receive many services provided by
TechColumbus. For the past several years, TechColumbus has provided City Council ongoing
reports regarding their efforts in Dublin. Attached is a report by Mr. Rick Coplin of
TechColumbus. Mr. Coplin is an employee of TechColumbus and maintains an office at the
DEC. He is engaged in TechStart activities in and around Dublin as a result of the City's
original Agreement with TechColumbus in 2007. He has worked very closely with Dublin staff
in our Business Creation efforts.
The proposed agreement provides for the continuation of services by TechColumbus to include
the following:
• Provide one experienced staff member with a significant focus on Dublin.
• Maintain an office /presence at the DEC at TechColumbus expense.
• Facilitate and promote networks among entrepreneurial /technology start-ups.
• Assess the potential and legitimacy of start-up companies /ideas.
• Market and communicate to promote services and funding.
Memo re Resolution No. 02 -13 — Agreement with TechColumbus
January 24, 2013
Page 2 of 2
• Provide assistance to compete for funding /capital (Tech Angel, VC, ESP funds & Small
Business Loans).
• Provide access to " entrepreneur()-in- residence."
• Provide access to entrepreneurial training.
• Provide and support training programs in Dublin.
• Generate "deal flow" as a result of the resources and activities listed above.
Recommendation
Staff recommends Council approve Resolution 02 -13, authorizing the City Manager to execute
the proposed Agreement with TechColumbus in order to receive services as described therein
and to provide matching funds to TechColumbus in the amount of $200,000 in 2013. Please
address any questions to Dana McDaniel. TechColumbus staff will also be present at Council's
meeting to answer questions.
I of Dublin
December 31". 2012
Through December 2012:
The City of Dublin has invested $1,100,000 in the TechColumbus partnership.
Companies in Dublin have benefitted through:
TechColumbus Investments (TechGenesis, PreSeed,. etc.) $4,688,714
Investment (OTAF, Side Cars and Other): 16,084,888
Other Grant or Debt Financing (Incl. IOLF): 6,189,167
Sales Revenues: 8,334,512
Total Inv /Debt/Rev: $35,297,281
Estimated tax revenues: $272,692
(Based on job creation and payroll data at 2 % income tax rate)
The Dublin TechColumbus partnership continues to produce results — 132 Dublin
based companies are currently engaged with or have received assistance through
TechColumbus. Actively engaged companies currently represent 64 full time jobs with
an average salary of $34,927.75.
2012 Year to Date Highlights:
• The DEC has moved to the new facility at 565 Metro South, which houses The DEC,
TechDEC, and the Dublin International Business Assistance Center. The DEC is now home to
nearly 80 Dublin companies representing approximately 130 jobs.
• One Company (a DEC resident) utilized TechColumbus' Pre -Seed funding and has raised
additional outside investment that has enabled it to make strategic hires, refine their product
and increase sales efforts..
• Nine companies have attended TechStart Essentials, a 1 1 /2 day course designed to help
entrepreneurs understand key components of starting and growing a technology company in
Central Ohio. Companies receive guidance on teams, legal considerations, funding options
etc. and are often referred to additional supportive resources.
I of Dublin
Appendix I: Deal Flow Summary — All Deal Flow Since 2006
Note: Only includes clients /opportunities with Dublin zip codes
Activities in Period
132 Opportunities
70 Intakes
27 Accepted Clients
20 Funding
Prospects
14 Funded
December 31", 2012
Client Industries
13%
11%
■Advanced
Materials
11%
■ Biosciences
0% 0%
■ Information
Technology
■ Energy
Client Business Stages
a%
9%
129 ■ concept
■ Seed
■ Startup
55% Early
20% ■ Growth
City of Dublin
Appendix II: Deal Flow Summary — All Deal Flow Since July 1, 2011
Note: Only includes clients /opportunities with Dublin zip codes
Activities in Period
35 Opportunities
18 Intakes
6 Accepted Clients
7 Funding
Prospects
0 Funded
December 31", 2012
Client Industries
26% 11% ■Advanced
9M Materials
■ 6iosciences
■ Information
Technology
■ Energy
Client Business Stages
9% 0%
14% ■ Concept
■ Seed
■ Startup
11% ■ Early
66% 0Growth
Draft Agreement Between
City of Dublin, Ohio
and
TechColumbus
This AGREEMENT (the "Agreement') is made and entered into this day of
2013, by and between the CITY OF DUBLIN, OHIO (the "City "), a municipal corporation duly
organized and validly existing under the Constitution and the laws of the State of Ohio (the
"State ") and its Charter, and TechColumbus ( "TechColumbus ") an Ohio not - for - profit Ohio
corporation, under the circumstances summarized in the following recitals:
WHEREAS, the City's dynamic local economy is the direct result of an entrepreneurial spirit;
and
WHEREAS, the City recognizes that in addition to its efforts to retain, expand and attract
business, the City must also set the conditions for new business and job creation; and
WHEREAS, TechColumbus is the lead agency responsible for accelerating business growth, job
creation and prosperity for the 15 county Central Ohio region with a focus on operating a
regional technology business incubator, working with entrepreneurs and investors to develop
and launch technology start-up companies, and growing young companies that will provide the
jobs of the future; and
WHEREAS, the City and TechColumbus 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 both the City and TechColumbus 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 designated as the lead agency in the Central Ohio region
responsible for the administration of the TechStart program grant funding consisting of funds
from the Ohio 3` Frontier and local matching funds; and
WHEREAS, the City intends to continue its support of the regional effort to create new
companies, technologies and jobs by providing $200,000 in 2013 as matching funds for the
TechStart program; and
WHEREAS, the City has previously supported the Entrepreneurial Signature Grant Program,
the Regional Capitalization Program and TechStart program since 2007 in partnership with
TechColumbus experiencing a nearly 17:1 return on investment in Dublin -based companies; and
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WHEREAS, the City and TechColumbus desire to enter into an Agreement memorializing the
responsibilities and commitments of each party to efficiently and effectively execute the
TechStart program.
NOW, therefore, the City and TechColumbus covenant agree and obligate themselves as
follows:
L Purpose. The primary purpose of the program is to provide consistent, coordinated,
effective and accessible assistance to technology entrepreneurs to catalyze the launch
of new technology based businesses with an ultimate goal of creating high quality
jobs in Central Ohio. The program will provide services to identify and mentor early
stage organizations to create a sustainable technology based business cluster and a
culture that provides future opportunities to thrive. Periodic program reviews will
determine the amount and type of resources needed to achieve the agreed -upon goals.
TechColumbus is required to remain flexible in the deployment of the resources
across the entire 15 county region to insure that successful programs are funded based
on the achievement of the desired metrics. TechColumbus will be required to report
metrics to the State to justify future investments.
IL Services. TechColumbus, as the manager of the TechStart program will, in a
partnership with the City, provide the following services:
a. Physical Presence. TechColumbus will establish a physical presence in the
Dublin Entrepreneurial Center ( "DEC ") and provide a designated lead contact
from the TechColumbus team who is responsible for coordinating TechColumbus
services within the Dublin community. Tech Columbus will be responsible for the
cost of its own office(s) and all related expenses in the DEC.
b. Designated Lead's responsibilities. The designated lead will have responsibility
for the following:
i. Provide Entrepreneurial development and outreach in Dublin and the
counties of Delaware, Morrow, Marion, Logan and Union and will serve
as TechColumbus' "gateway" to the Northern and Western Central Ohio
region.
ii. Identify prospective entrepreneurial start-up companies best suited for
program and capital assistance with the assistance of the TechColumbus
team
iii. Coordinate and communicate with both City Economic Development staff
and its associated consulting team regarding Dublin- focused
programming.
iv. Attend, at a minimum, a monthly staff and consultant meeting and semi-
monthly DEC coordination meeting, unless otherwise determined by the
parties.
v. Provide input to and when possible and appropriate provide resources in
support of DEC programming, as determined by TechColumbus.
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vi. Maintain a Charter Membership in and participate on the Board of The
International Entrepreneur (TIE- Ohio).
vii. Provide the City a Quarterly Activity Report summarizing the type and
amount of activity in Dublin. The format and specifics of the content to be
included in the report will be mutually agreed upon between the City and
TechColumbus.
c. Deal flow. TechColumbus and City will coordinate marketing, outreach and
programming activities to stimulate deal flow. TechColumbus agrees to provide
and /or support, as mutually agreed upon, entrepreneurial training (i.e. workshops,
guest speakers and /or seminars by TechColumbus), leveraging off existing
events /organizations when possible, to ensure program awareness and
engage /entice potential entrepreneurs. TechColumbus agrees to invite the City
and the City agrees to participate in the Deal Flow Assessment Committee
(DFAC).
d. Coaching and mentoring. TechColumbus will provide promising entrepreneurial
companies and individuals access to their experienced and successful team of
mentors, including entrepreneurs -in- residence, technology commercialization
specialists, and startup coaches in order to create high -return commercialization
ventures and/or ideas to market. TechColumbus also agrees to assist in the City's
collaboration with area schools, colleges/ universities, public agencies and Cities
to promote entrepreneurship and technology to students of all ages. The goal is to
invest long term in our youth to promote technology, entrepreneurship and
potentially workforce development.
e. Access to capital. Through its coaching and mentoring services, which are the entry
point to all TechColumbus /TechStart funding sources, the City and regional companies
will have local access to:
i. Proof of Concept Fund: Equity investments to assist capital efficient companies
with market entry and to validate early tech ideas based on intellectual property
(IP), validate IP, build prototypes, complete marketing studies, etc for the most
promising opportunities.
ii. Pre -Seed Fund: Seed stage convertible debt funding for the most promising
opportunities. With each investment, TechColumbus will assist the company to
reach the goals of growth and follow -on, institutional or angel funding.
iii. Ohio TechAngel Funds: local angel funds managed by TechColumbus which
make equity investments in Ohio tech startups.
iv. TechColumbus and SBDC expertise and access to SBA loan opportunities for
small businesses.
f Acknowledgement. TechColumbus agrees to acknowledge the City in its
sponsorship opportunities, website and other opportunities as a TechStart Partner.
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g. TechStart contribution. The City agrees to pay to TechColumbus $200,000 in
matching funds in 2013. Payments to TechColumbus will be made in four equal
installments of $50,000 each. The first payment will be made within 30 days of
the execution of this Agreement. The remaining payments will be aligned with the
calendar year quarter with remaining three payments being made no later than
April 15, 2013, July 15, 2013 and October 15, 2013. The City reserves the right to
audit this program by its own means or by a third party hired by the City at the
City's expense and at a time(s) determined by the City for the purpose of auditing
the use of the City and State provided funds.
III. Miscellaneous.
a. Notices Except as otherwise specifically set forth in this Agreement, all notices,
demands, requests, consents or approvals given, required or permitted to be given
hereunder shall be in writing and shall be deemed sufficiently given if actually
received or if hand - delivered or sent by recognized, overnight delivery service or
by certified mail, postage prepaid and return receipt requested, addressed to the
other party at the address set forth in this Agreement or any addendum to or
counterpart of this Agreement, or to such other address as the recipient shall have
previously notified the sender of in writing, and shall be deemed received upon
actual receipt, unless sent by certified mail, in which event such notice shall be
deemed to have been received when the return receipt is signed or refused. For
purposes of this agreement, notices shall be addressed to:
i. the City at: City of Dublin, Economic Development
5800 Shier Rings Road
Dublin, Ohio 43016 -7295
ii. TechColumbus at: TechColumbus, Mr. Tom Walker
1275 Kinnear Road
Columbus, Ohio 43212
The parties, by notice given hereunder, may designate any further or different addresses
to which subsequent notices; certificates, requests or other communications shall be sent.
b. Extent of Provisions; No Personal Liability. All rights, remedies,
representations, warranties, covenants, agreements and obligations of the City
under this Agreement shall be effective to the extent authorized and permitted by
applicable law. No representation, warranty, covenant, agreement, obligation or
stipulation contained in this Agreement shall be deemed to constitute a
representation, warranty, covenant, agreement, obligation or stipulation of any
present or future trustee, member, officer, agent or employee of the City or
TechColumbus in other than his or her official capacity. No official executing or
approving the City's or TechColumbus' participation in this Agreement shall be
liable personally under this Agreement or be subject to any personal liability or
accountability by reason of the issuance thereof.
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c. Most Favorite Nation. The City shall be afforded the same opportunity to use
ESP Grant dollars in the same manner TechColumbus may allow grant dollars to
be used in other communities provided such use is not covered elsewhere or
otherwise permitted or governed by this Agreement.
d. Successors. This Agreement shall be binding upon and inure to the benefit of
TechColumbus and its successors and assigns.
e. Recitals. The City and TechColumbus acknowledge and agree that the facts and
circumstances as described in the Recitals hereto are in an integral part of this
Agreement and as such are incorporated herein by reference.
f Amendments. This Agreement may only be amended by written instrument
executed by the City and TechColumbus.
g. Executed Counterparts. This Agreement may be executed in several
counterparts, each of which shall be regarded as an original and all of which shall
constitute but one and the same agreement. It shall not be necessary in proving
this Agreement to produce or account for more than one of those counterparts.
h. Severability. In case any section or provision of this Agreement, or any covenant,
agreement, obligation or action, or part thereof, made, assumed, entered into or
taken, or any application thereof, is held to be illegal or invalid for any reason,
that illegality or invalidity shall not affect the remainder hereof or thereof, any
other section or provision hereof, or any other covenant, agreement, obligation or
action, or part thereof, made, assumed, entered into or taken, all of which shall be
construed and enforced as if the illegal or invalid portion were not contained
herein or therein. The illegality or invalidity of any application hereof or thereof
shall not affect any legal and valid application hereof or thereof, and each section,
provision, covenant, agreement, obligation or action, or part thereof, shall be
deemed to be effective, operative, made, assumed, entered into or taken in the
manner and to the full extent permitted by law.
i. Termination and extension. The City or TechColumbus may terminate this
Agreement with at least 60 days prior written notice. Should the City terminate, it
will pay in full its obligation for the period prior to termination. Should the City
terminate its participation it does not forfeit Dublin -based companies' ability to
continue to access TechColumbus services and /or grant dollars and they shall be
given equal access as companies in other communities which provided no
matching dollars. The City understands that should it terminate prior to the end of
its one year commitment and not pay the full $200,000, the State of Ohio may
reduce the overall amount of Ohio 3` Frontier grant dollars it makes available to
the 15 county service area unless other sources of match are identified. Should
TechColumbus terminate and provide proper notice to the City, TechColumbus
will provide those services to the City as prescribed herein for the period of time
for which the City has paid its installments.
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Captions. The captions and headings in this Agreement are for convenience only
and in no way define, limit or describe the scope or intent of any provisions or
section of this Agreement.
k. Governing Law and Choice of Forum. This Agreement shall be governed by
and construed in accordance with the laws of the State of Ohio or applicable
federal law. All claims, counterclaims, disputes and other matters in question
between the City, its agents and employees, and TechColumbus, its employees
and agents, arising out of or relating to this Agreement or its breach will be
decided in a court of competent jurisdiction within Franklin, County, Ohio.
1. Survival of Representation and Warranties. All representations and warranties
of TechColumbus and the City in this Agreement shall survive the execution and
delivery of this Agreement.
m. Indemnification. TechColumbus agrees to indemnify, protect, defend and hold
harmless the City and its elected officials, officers, employees, agents and
volunteers from and against any claims, costs (including reasonable attorney's
fees and court costs), expenses, damages, liabilities, obligations, losses or
judgments to the extent arising out of, or in connection with, any claim, demand
or action made, if such claims, costs, expenses, damages, liabilities, obligations,
losses or judgments are directly or indirectly related to TechColumbus' furnishing
or failing to furnish services as required herein.
Remainder of Page Intentionally Left Blank
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IN WITNESS WHEREOF, the City and TechColumbus have caused this Agreement to be
executed in their respective names by their duly authorized representatives, all as of the date first
written above.
Approved as to Form:
C
Printed: Stephen J. Smith
Title: Director of Law
CITY OF DUBLIN, OHIO
C
Printed: Marsha I. Grigsbv
Title: Citv Manager
TECHCOLUMBUS
C
Printed: Tom Walker
Title: President & CEO
CERTIFICATION OF FUNDS
I hereby certify that the funds required to meet the City's obligation, payment, or expenditure
under this Agreement have been lawfully appropriated or authorized for such purpose and are free from
any obligation now outstanding.
Angel L. Mumma
Director of Finance
Date
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