Agenda - 12-15-2015 - 6a - Minutes

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10 1 Steve Brantley said as part of the Board of County Commissioners' strategic planning in 2 2011 to utilize Article 46 funding to support key economic development priorities, the 3 importance of growing and retaining entrepreneurial start-up talent in Orange County was 4 included. The Board sought to reverse the historic trend where promising, growth-oriented start- 5 up companies originating out of the University of North Carolina would eventually relocate to 6 adjacent counties over time. The County contracted with the department head of UNC Chapel 7 Hill's Department of City & Regional Planning (Dr. Emil Malizia) in 2011 & 2012, who conducted 8 a regional real estate assessment of average lease costs, ideal space needs and working 9 environments that start-up companies seek throughout their developmental life span. A key 10 recommendation from the consultant report highlighted a severe shortage of competitively 11 priced incubator facilities here in the County, and suggested the development of an innovation 12 center to better retain entrepreneurial talent coming from the University and local community. 13 In March 2012, available property located at 321 West Rosemary Street in Chapel Hill 14 was identified as a potential incubator location, and the Town of Chapel Hill and Orange County 15 began working collaboratively to support further development of an innovation center at this 16 site. 17 On April 3, 2012, the Board of County Commissioners received a summary of the 18 potential economic development project during closed session. Following this report, the Board 19 agreed to continue moving forward on this opportunity. 20 In July 2012, Orange County prepared a draft Interlocal Agreement outlining the 21 commitments of both parties. The final version of the Interlocal Agreement was signed by the 22 County and Town in late 2012, establishing an initial 3 '/2 year term where both local 23 governments would provide a 50/50 co-share of the lease cost for the facility. The County's 24 cost, paid by Article 46 funds, was $10,000 per quarter, or $140,000 total. "Launch Chapel Hill" 25 eventually took form at 321 West Rosemary Street by accepting the initial group of student 26 tenants, and officially opening on May 1, 2013. In addition, UNC Chapel Hill's close mentoring 27 support expanded into becoming a financial backer, and a conduit to attract private venture 28 capital support for Launch. 29 On November 4, 2015 the University of North Carolina at Chapel Hill was recognized 30 among the top five best performing university business accelerators in North America, based on 31 a 2015 benchmark study by UBI Global, a thought leader in performance analysis of business 32 incubators around the world. 33 A memorandum (see attachment 1) from Launch Program Manager Dina Rousset 34 outlines the incubator's recent success stories, a list of current entrepreneur companies, and a 35 brief survey of private funding raised by many of these start-up firms. This summary describes 36 how Launch 37 "brings in a cohort or class of 6- 10 companies every six months (January & July). 38 Bringing companies in as cohorts allows us to most effectively and efficiently serve their needs. 39 We have traditionally received 3 applications per available space at Launch. Selection is made 40 by a selection committee made up of the Entrepreneurs in Residence, Launch graduates, and 41 university and town representatives. The number of companies we are able to accept is based 42 on the size of the teams and the number of seats we have available. As each new class or 43 cohort comes into the program we look to identify both those that are not performing and those 44 that are growing and have secured funding to move out into space in the community." 45 With the original 2012 Interlocal Agreement expiring on December 31, 2015, the small 46 business incubator is now seeking a continuation of support from the County and Town. The 47 proposal is to sign a 2-year lease (January 1, 2016 through December 31, 2017) to fund 48 "Launch" at the current location, and allow the option for a third year (January 1, 2018 through 49 December 31, 2018). This allows some flexibility if UNC, also a financial supporter of Launch, is 50 able to bring together a larger combined space within two years.