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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4 (2) Second Interlocal Agreement between the Town & County (a 3-year renewal of financial support, at the same annual cost that was established during the first Interlocal Agreement) • On November 17, 2015, the BOCC approved a new three-year (36-month) Interlocal Agreement starting on 1/1/16 and expiring on 12/31/18. The County's financial contribution remained the same at $10,000 per quarter, or a total cost to the County of $120,000 over the full 3-year term. The County's payment was funded from Article 46. The Town also provided an equal level of financial support. (3) Amendment made to the Second Interlocal Agreement to permit LAUNCH to add 3,700 square feet for additional co-working space in the incubator's existing facility. • The second Interlocal Agreement was amended in June 2016 to permit an on- site expansion of the LAUNCH office, which required Orange County and the Town to contribute an additional $8,375 per quarter (or $33,500 annually) for up to three (3) years. The Town also provided an equal level of financial support. The amended Interlocal Agreement expired on December 31, 2018. FINANCIAL IMPACT: The proposed new Interlocal Agreement requires Orange County to contribute $18,375 per quarter (or $73,500 annually) for up to three (3) years, or a total of up to $220,500 over the full 3 years. County funding is provided exclusively by Article 46's annual retail sales tax collections that fund a variety of economic development activities, to include the LAUNCH small business incubator. As the annual payment amount is included the current 2018-19 budget, and is unchanged from the County's previous annual contribution under the prior Interlocal Agreement that expired on December 31, 2018, there is no additional budget impact at this time. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board 1) approve and authorize the County Manager to sign a new three-year Interlocal Agreement (Attachment 1) that renews the County's contractual relationship and joint funding arrangement with the Town of Chapel Hill enabling the tech incubator LAUNCH to continue to provide entrepreneurial services that promote the growth and retention of small businesses; and 2) review and approve the Bylaws (Attachment 4) of the "LAUNCH, Inc." small business incubator in Chapel Hill that was formed on January 1, 2019 as a new nonprofit organization, which includes authorizing the Manager to serve as an executive board member of the new non-profit (or to designate another County representative to serve in that capacity), thereby joining representatives from the Town of Chapel Hill and the University of North Carolina at Chapel Hill as executive board members.