Agenda 10-19-2021; 8-f - Renewal of the Expiring Three-Year Interlocal Agreement between Orange County and Chapel Hill to Continue the Joint Funding for the “LAUNCH, Inc.” Small Business Incubator

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3 • 177 Zoom calls and 15 events completed in 2020 • 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 the incubator consultant firm UBI Global, which is a renowned leader in performance analysis of business incubators around the world. History of interlocal agreements between Orange County and the Town of Chapel Hill to jointly support LAUNCH Orange County and Town of Chapel Hill have provided joint financial support of the LAUNCH small business innovation center for the past 91/2 years via previous Interlocal Agreements, as follows: (1) First Interlocal Agreement between the Town and County (31/2 year initial term of 50/50 co-sharing of lease payments for 4,000 square feet, for the period July 1, 2012 to December 31, 2015) • The initial 3'/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'/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. (2) Second Interlocal Agreement between the Town and County (a 3-year renewal of financial support, at the same annual cost that was set during the first Interlocal Agreement) • On November 17, 2015, the BOCC approved a new three-year (36-month) Interlocal Agreement starting on January 1, 2016 and expiring on December 31, 2018. The County's financial contribution remained the same at $10,000 per quarter, or a total cost of $120,000 to the County over the initial three-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 $8,375.00 per quarter ($33,500.00 annual increase) for up to three (3) years. The amended annual cost to the County then increased to $18,375 per quarter, or a total of $73,500 per year. The Town also provided an equal level of financial support. The amended Interlocal Agreement expired on December 31, 2018. (4) Third Interlocal Agreement between the Town and County (a three-year renewal of financial support, at the same annual cost that was set during the second Interlocal Agreement) • The third Interlocal Agreement was amended on February 25, 2019 to set a new three- year term. The County and Town continued to provide an equal 50/50 co-share of financial support (each local government paying $18,375 per quarter, or a total of $73,500 per year). The amended Interlocal Agreement expires on December 31, 2021.