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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2 entrepreneurial start-up talent in Orange County was included. The Board sought to reverse the historic trend where promising, growth-oriented tech start-up companies originating out of the University of North Carolina and Orange County were eventually relocating to adjacent counties. Durham's renowned "American Underground" incubator and co-working venture at the American Tobacco campus has historically been a significant competitor to draw local start-up talent away from Orange County. In response, Orange County contracted with UNC Chapel Hill's Department of City & Regional Planning department head, Dr. Emil Malizia, in 2011 & 2012. Dr. Malizia conducted a regional real estate assessment of average office lease costs, ideal space needs and working environments that start-up companies seek throughout their developmental life span. A key recommendation from the consultant report highlighted a severe shortage of competitively priced incubator facilities in Orange County, and suggested the development of an innovation center to better retain entrepreneurial talent coming out of the University and from the local community. Following passage of the successful Article 46 referendum in November 2011, the County gained a new revenue source that enabled it to join with the Town of Chapel Hill to establish the "LAUNCH Chapel Hill" incubator. A series of interlocal agreements were subsequently approved between Orange County and the Town of Chapel Hill. On June 25, 2018, Orange County, the Town of Chapel Hill, the Chapel Hill Downtown Corporation and the University of North Carolina at Chapel Hill agreed to continue all parties' mutual support of the LAUNCH incubator. Also in 2018, operational efficiencies were identified by the Town of Chapel Hill and UNC, leading to a recommendation that the LAUNCH structure among key stakeholders should ideally be shifted into a non-profit agency. This organizational change was approved by both the County, UNC and the Town, when the Orange County Board of Commissioners in February 2019 reviewed and approved the proposed nonprofit's new Bylaws and the County's joint participation as an executive board member on the "LAUNCH, Inc." executive board. "LAUNCH CHAPEL HILL", was subsequently transitioned into a nonprofit in November 2019 and renamed "LAUNCH, Inc. Notable Achievements & Positive Economic Impact on the Local Economy: Velvet Nelson, who has served since December 2019 as Director of the agency, provided the following statistics to illustrate the incubator's notable economic contribution to the local community for the period 2012 to 2020: • 153 companies have been accelerated since 2012 • 98 of those companies are still active 0 94% remained in business after 1 year; 64% remained in business after 2 years 0 31 companies began with UNC students as primary founders, and 7 remain in business • 802 total employees in 2020 • 202 jobs based in Orange County • 25 companies call Orange County home • $714,000 in total venture funding was raised in 2020, compared to $940,000 raised in 2019 • $69 million in total revenues earned in 2020, compared to $43 million raised in 2019 • 35 start-up firms participated in the accelerator program in 2020 o (47% minority-owned, 53% women-owned) • 12,150 square feet of total leased office space • $184,500 paid in rent • $99,000 in annual spending in downtown Chapel Hill • 88 engaged mentors in 2020