Agenda 8-e - New Three-Year Interlocal Agreement between Orange County and the Town of Chapel Hill to Continue Joint Funding for the “LAUNCH, Inc.” Small Business Incubator

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3 Recent Notable Achievements & Positive Economic Impact on the Local Economy: "LAUNCH" directly contributed to the University of North Carolina at Chapel Hill being recognized on November 4, 2015 as ranking among the top five best performing university business accelerators in North America, based on a 2015 benchmark study by UBI Global, which is a thought leader in performance analysis of business incubators around the world. Amy Linnane, who is a former LAUNCH cohort graduate and the current Acting Director of the agency, has provided the following new statistics to illustrate the incubator's notable economic contribution to the local community: 5 Year Statistics (2012 thru 12/2017) • 75 companies served in 9 cohorts, with 44+ completing the survey (59% of total) • At least 46 original companies still remain in business (61%) • 94% remain in business after 1 year; 64% remain in business after 2 years • 31 companies (41%) began with UNC students as primary founders, and 7 remain in business (23%) Calendar 2017 Results (by all LAUNCH companies) • $12.75 million in venture capital support was raised (by 19 companies) • $20.6 million in annual revenues earned • 1,124 employees (215 full-time and 909 part-time) • 202 jobs based in Orange County • 25 companies call Orange County home • 12,150 square feet of total leased office space • $184,500 paid in rent • $99,000 in annual spending in downtown Chapel Hill In recent developments, Cohort #11 took up residence at LAUNCH on January 22, 2019 with 10 new entrepreneurial teams (including four UNC student teams). Summary of previous co-funding agreements between Orange County and the Town of Chapel Hill to support the LAUNCH incubator: Orange County and Town of Chapel Hill have provided joint financial support of the LAUNCH small business innovation center for the past 6 '/2 years via previous Interlocal Agreements, as follows: (1) First Interlocal Agreement between the Town & County (3 '/2 year initial term of 50/50 co-sharing of lease payments for 4,000 square feet, for the period of 7/1/12 to 12/31115) • The initial 3 1/2 year (42 month) Interlocal Agreement between the County & Town to co-fund LAUNCH was split 50/50 in a mutual cost sharing. The County paid its portion from Article 46 funds ('/4 cent sales tax proceeds for economic benefit) dedicated to providing entrepreneurial support, at a level of $10,000 per quarter for 42 months, or, a total cost to the County of $140,000 over the full 3 1/2 year initial term. The Town of Chapel Hill provided an equal amount of financial support. This first Interlocal Agreement expired on December 31, 2015.