HomeMy WebLinkAbout2024 10 14 Consent 309 - UCF Business Incubation Program Winter SpringsCONSENT AGENDA ITEM 309
CITY COMMISSION AGENDA | OCTOBER 14, 2024 REGULAR MEETING
TITLE
UCF Business Incubation Program Winter Springs: Renewal of Economic Development
Funding Agreement
SUMMARY
The UCF Business Incubation Program (UCFBIP) is an economic development effort
designed to help create and sustain jobs in the community and spur economic growth
throughout the region. This goal is accomplished by helping early-stage businesses
grow to the point where they need to hire employees in order to continue operating
and growing.
The City of Winter Springs engaged in an Economic Development Grant with the
UCFBIP in 2007. To date, the City has provided a total of approximately $1,150,000 in
funding. In 2008, the City provided $200,000 followed up $75,000 yearly from 2011 to
2020. From 2021 to 2024 the City provided funding in the amount of $50,000 yearly.
The UCFBIP is requesting that funding be returned to a funding level of $75,000.
The UCF Incubator made their last update presentation to the City Commission on July
15, 2024.
FUNDING SOURCE
General Government G/L 001-19-1900-580820 - Private Organizations
The FY 2025 Adopted Budget approved by the City Commission includes $75,000 for
funding.
RECOMMENDATION
Staff's recommendation is for the City Commission to review the information provided
and make a determination on the continued funding level for the UCF Business
Incubation Program Winter Springs for Fiscal Year 2025. Additionally, Staff
recommends the City Commission authorize the Interim City Manager to execute the
attached Renewal of Agreement with with University of Central Florida Research
Foundation, Inc (UCF Business Incubation Program) for FY25.
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ECONOMIC DEVELOPMENT AGREEMENT
THIS ECONOMIC DEVELOPMENT AGREEMENT (“Agreement”) is made and
entered into this ________ day of ______________________, 2024, by and between the CITY
OF WINTER SPRINGS, a Florida municipal corporation whose principal address is 1126 E. SR
434, Winter Springs, Florida 32708 (“City”) and the UNIVERSITY OF CENTRAL
RESEARCH FOUNDATION, INC., a Florida not for profit direct support organization of the
University of Central Florida whose address is 12201 Research Parkway, Suite 501, Orlando,
Florida 32826-3246 (“UCFRF”).
WITNESSETH
WHEREAS, the parties hereto previously entered into an Economic Development
Agreement with an effective date of October 1, 2013, which Agreement had an initial term of three
(3) years; and
WHEREAS, the previous Economic Development Agreement was renewed several times
through subsequent modifications, the final of which being the Seventh Modification to
UCFRF/Winter Springs Incubator Economic Development Funding Agreement which was
executed August 31, 2023; and
WHEREAS, the parties desire to enter into a new Economic Development Agreement to
provide for the City of Winter Springs’ continued support of the University of Central Florida
Research Foundation’s Seminole County business incubator program; and
WHEREAS, the UCFRF operates its Seminole County business incubator facility within
the City of Winter Springs at the Vistawilla Office Center located on State Road 434, which serves
as a business development program for new and growing businesses in Seminole County; and
WHEREAS, it remains the desire of the City to aggressively stimulate economic growth
in the City by attracting new industries and businesses to the City, by encouraging the expansion
of existing industries and businesses within the City, and by fostering the creation and growth of
new industries and businesses in the City; and
WHEREAS, the creation of new employment opportunities for residents of the City and
the increased tax revenues resulting from such industry or business expansion and relocation
within the City is beneficial to the local economy; and
WHEREAS, the UCFRF desires to continue to support the business development
incubator in Winter Springs, Florida; and
WHEREAS, in furtherance of maintaining the Winter Springs business incubator program,
UCFRF has requested a financial contribution from the City to defray the ongoing maintenance
costs associated with the incubator; and
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WHEREAS, the City continues to desire to make financial contributions in furtherance of
the municipal purpose of enhancing the expanding economic activity within its jurisdictional
borders under section 166.021(8), Florida Statutes; and
WHEREAS, the parties desire to enter into this new Economic Development Agreement
to ensure the continued success of the business incubator and to ensure that the financial
contribution provided by the City to UCFRF ultimately serves the intended municipal purpose;
and
WHEREAS, the parties agree that this Agreement is in the best interest of the public
health, safety, and welfare, and convenience of the citizens of the City of Winter Springs, Seminole
County, Florida.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein, and
other good and valuable consideration which the parties agree has been exchanged and received,
the parties agree as follows:
1.0 Recitals. The foregoing recitals are deemed to be true and accurate and are fully
incorporated herein by this reference.
2.0 Definitions. For purposes of this Agreement, the following terms and words shall have
the meaning ascribed to them, unless context clearly indicates otherwise:
a. “Effective Date” shall be the date on which the last signatory hereto shall execute this
Agreement, and it shall be the date on which this Agreement shall go into effect. The
Agreement shall not be effective against any party until said date.
b. “Grant” shall mean the monies paid by the City to UCFRF in accordance with Section 4.0
of this Agreement.
c. “Work” or “Municipal Services” shall be used interchangeably and shall refer to the
performance of the services outlined in Section 5.0 of this Agreement.
d. “Wrongfully Expended Funds” shall be defined in Section 11.0 of this Agreement.
3.0 Engagement. The City hereby engages the UCFRF and the UCFRF agrees to perform
Municipal Services outlined in Section 5.0 of this Agreement and under the terms and conditions
herein.
4.0 Payment of Grant Funds. Upon execution of this Agreement, the City agrees to pay to
the UCFRF Seventy-Five Thousand and 00/100 Dollars ($75,000.00) each year, subject to the
annual budget and appropriation by the City Commission. The lump sum payment shall be due on
or before February 1 of each year following the Effective Date. The payment provided herein shall
be used by the UCFRF to defray the ongoing maintenance costs (excluding salary and wages)
incurred in operating the business incubator program.
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Payment shall be made payable to the University of Central Florida and remitted to the attention
of Amanda Coveney, 12201 Research Parkway, Suite 501, Orlando, Florida 32826.
5.0 Municipal Services. The UCFRF agrees to continue the operation of the Seminole
County business incubator in the City of Winter Springs for a minimum of three (3) years from the
Effective Date, provided payments are made pursuant to this Agreement. The business incubator
program shall be located in a minimum of 10,000 square feet of office space at the Vistawilla
Office Center on State Road 434. In addition, UCFRF agrees that it shall perform the following
specific services:
a. Meet with City Staff, at least quarterly, to discuss the status and success of the business
incubator program and to discuss the anticipated preparation and contents of the
quarterly reports and presentations to the City Commission as required in Section 6.0,
below;
b. Conduct and advertise quarterly “business bootcamp” workshops to provide ongoing
business education and support to local businesses;
c. Participate in City-sponsored events, when appropriate and when requested by the City
Manager.
6.0 Progress Reports. The UCFRF shall submit a written progress report quarterly as to
the status of the business incubator program set forth in this Agreement to the City Commission.
A UCFRF representative shall additionally attend a City Commission meeting at least once
quarterly to present the progress report and share additional information as appropriate. The
progress report shall provide sufficient and reasonable detail regarding the expenditure of the funds
provided by the City hereunder. If the detail is not sufficient in the City Manager or City
Commission’s reasonable discretion to permit the City to determine compliance with this
Agreement, the City may seek more reasonable detail from UCFRF.
7.0 Compliance with Laws. The UCFRF shall be responsible for complying with all
applicable laws, ordinances, rules, regulations, and lawful orders of any public authority regarding
the operation of the Seminole County business incubator program.
8.0 Work is a Private Undertaking. With regard to the operation of the Seminole County
business incubator program, it is specifically understood and agreed to by and between the parties
hereto that the contractual relationship between the City and UCFRF is such that the UCFRF is an
independent contractor and not an agent of the City. The UCFRF, its contractors, partners, agents,
and their employees are independent contractors and not employees of the City. Nothing in this
Agreement shall be interpreted to establish any relationship other than that of an independent
contractor between the City, on one hand, and the UCFRF, its contractors, partners, employees, or
agents, under this Agreement.
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9.0 Compliance Monitoring. The UCFRF agrees that City control and monitoring of the
Grant being provided hereunder is necessary to ensure that the UCFRF is expending said Grant in
furtherance of the municipal purposes declared by the City in this Agreement.
10.0 Audit and Inspections. The UCFRF agrees that any records with respect to the
UCFRF’s expenditure of the Grant funds provided under this Agreement shall be made available
to the City, at any time during normal business hours, as often as the City deems necessary, to
audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in
audit reports prepared by the City must be fully cleared by the UCFRF within thirty (30) days after
notice of said deficiencies by the UCFRF. Failure of the UCFRF to comply with the above audit
requirements shall constitute a material breach of this Agreement and may result, at the sole
discretion of the City, in the withholding of future grants or funds or immediate return to the City
of the Grant provided by this Agreement.
11.0 Representation and Warranties Regarding Grants. The UCFRF represents and
warrants that it shall use the Grant received from the City under this Agreement for the sole purpose
of locating and operating a business incubator program as provided under Section 5.0 herein. In
the event the UCFRF fails to expend the Grant for said purpose (Wrongfully Expended Funds),
the UCFRF shall fully reimburse the City the Wrongfully Expended Funds, plus interest calculated
at maximum rate allowable under Florida law per annum. If the City must take any legal action to
collect any Wrongfully Expended Funds, the UCFRF shall be liable for all costs incurred by the
City to collect such Funds including, but not limited to, reasonable attorneys fees, filing fees, and
other costs.
12.0 Promotion of Business Incubator. Either party may issue news releases, public
announcements, advertisements, or other forms of publicity concerning its efforts in connection
with this Agreement. At the City’s request, the UCFRF shall post a small placard (8.5 x 11 inches,
or smaller) provided by the City for display at the main entrance foyer of the business incubator
facility. The placard will generally state that the Seminole County business incubator was made
possible, in part, by an economic development grant provided by the City of Winter Springs.
13.0 Severability. Should any paragraph or any part of any paragraph of this Agreement be
rendered void, invalid, or unenforceable by any court of law, for any reason, such a determination
shall not render void, invalid, or unenforceable any other paragraph or any part of any paragraph
of this Agreement.
14.0 Choice of Law; Venue. This Agreement has been made and entered into in the State
of Florida, County of Seminole, and the laws of such state shall govern the validity and
interpretation of this Agreement and the performance due hereunder. The parties agree that venue
shall lie exclusively in Seminole County, Florida, for all state court actions or disputes which arise
out of or in connection with this Agreement, and in Orlando, Florida, for all federal court actions
or disputes which arise out of or in connection with this Agreement.
15.0 Integration; Modification. The drafting, execution, and delivery of this Agreement by
the parties has been induced by no representations, statements, warranties, or agreements other
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than those expressed herein. This Agreement embodies the entire understanding of the parties and
there are no further or other agreements or understandings, written or oral, in effect between the
parties relating to the subject matter hereof unless expressly referred to herein. Modifications of
this Agreement shall only be made in writing signed by both parties.
16.0 Attorney Fees. Unless otherwise provided herein, each party agrees to bear
their own attorney fees and costs in furtherance of this Agreement.
17.0 Headings. All headings in this Agreement are for convenience only and shall not be
used to interpret or construe its provisions.
18.0 Waiver. Any waiver by the City of any breach or violation of the University’s
obligations under this Agreement shall not be construed as a continuing waiver or consent to any
subsequent breach or violation.
19.0 Notice. Communication and details concerning this Agreement shall be directed to
the following representatives:
For the City:
Attn: Phil Hursh, Interim City Manager
City of Winter Springs
1126 E. State Road 434
Winter Springs, Florida 32708
(407) 327-5957
with copy to:
Anthony A. Garganese, City Attorney
Garganese, Weiss, D’Agresta & Salzman, P.A.
P.O. Box 2873
Orlando, Florida 32802-2873
(407) 425-9566
For the UCFRF:
Attn: Kim Smith
Office of Research and Commercialization
12201 Research Parkway, Suite 501
Orlando, Florida 21726-3246
(407) 823-3062
The foregoing addresses and representatives may be amended by any party at any time during the
term of this Agreement by providing the other party with written notice of said amendment.
20.0 Termination. This Agreement shall terminate three (3) years from the Effective
Date, unless sooner terminated by the City or UCFRF. The City may terminate this Agreement if
UCFRF fails to operate a business incubator program as required hereunder. If the City terminates
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this Agreement under such circumstances, any funds provided by the City in the preceding year
shall be repaid to the City. The City may also terminate this Agreement if the City Commission
elects, at its sole discretion, during the City’s annual budget adoption proves not to budget and
appropriate the annual installment payment required under Section 4.0. UCFRF may terminate this
Agreement if the City fails to make the payments required under Section 4.0.
21.0 Indemnification and Hold Harmless. UCFRF assumes any and all risks of personal
injury and property damage attributable to the negligent acts or omissions of UCFRF and its
officers, employees, and agents thereof while acting within the scope of their employment by
UCFRF. The City assumes any and all risks of personal injury and property damage attributable to
the negligent acts or omissions of the City’s officers, employees, agents, or other persons acting or
engaged to act by the City in furtherance of the obligations of the City under this Agreement.
UCFRF warrants and represents that it is self-funded for liability insurance, both public and
property, with said protection being applicable to officers, employees, and agents, while acting
within the scope of their employment by UCFRF. UCFRF and the City further agree that nothing
herein shall be construed or interpreted as (1) denying to either party any remedy or defense
available to such party under the laws of the State of Florida, (2) the consent of the State of Florida
or its agents and agencies to be sued, or (3) a waiver of sovereign immunity of the State of Florida
beyond the waiver provided in Section 768.28, Florida Statutes.
22.0 Assignment. This Agreement and the Grant provided hereunder shall not be assigned by
UCFRF without the prior written consent of the City.
23.0 No City Obligation for Future Funds. No provision of this Agreement shall
be construed as requiring the City to provide additional funds for the business incubator program
in the future, other than as specifically provided herein.
24.0 E-Verify.
a. Pursuant to section 448.095, Florida Statutes, beginning January 1, 2021, Contractors (such
as UCFRF) shall register with and use the U.S. Department of Homeland Security’s E-
Verify system, https://e-verify.uscis.gov/emp, to verify the work authorization status of all
employees hired on and after January 1, 2021.
b. Subcontractors:
i. Contractor shall also require all subcontractors performing work under this
Agreement to use the E-Verify system for any employees they may hire during
the term of this Agreement.
ii. Contractor shall obtain from all such subcontractors an affidavit stating the
subcontractor does not employ, contract with, or subcontract with an
unauthorized alien, as defined in section 448.095, Florida Statutes.
iii. Contractor shall provide a copy of all subcontractor affidavits to the City
upon receipt and shall maintain a copy for the duration of the Agreement.
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c. Contractor must provide evidence of compliance with section 448.095, Florida Statutes.
Evidence shall consist of an affidavit from the Contractor stating all employees hired on
and after January 1, 2021, have had their work authorization status verified through the E-
Verify system and a copy of their proof of registration in the E-Verify system.
d. Failure to comply with this provision is a material breach of the Agreement, and shall result
in the immediate termination of the Agreement without penalty to the City. Contractor shall
be liable for all costs incurred by the City securing a replacement Agreement, including but
not limited to, any increased costs for the same services, any costs due to delay, and
rebidding costs, if applicable.
IN WITNESS WHEREOF, this Agreement is entered into as of the day and year the last party
signs the Agreement as stated below:
WITNESS: UCFRF:
________________________ ______________________________
Print: ___________________ By: __________________________
Address: ________________ Title: _________________________
________________________ Date:_________________________
________________________
Print: ___________________
Address: ________________
________________________
ATTEST: CITY OF WINTER SPRINGS:
_________________________ ______________________________
Christian Gowan, City Clerk Phil Hursh, Interim City Manager
Date: ____________________ Date: _________________________
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UCF BUSINESS INCUBATION
379
For 24 years we have been helping early stage,
scalable companies unleash their potential!
MENTORSHIP BUSINESS
DEVELOPMENT
BUSINESS
OPERATIONS
CAPITAL &
COMMUNITY
CONNECTIONS
LEADERSHIP
DEVELOPMENT
LABS & OFFICE
SPACES
380
V ol usia
SERVICES 9 LOCATIONS
E u s t i s
V o l u s i a
W i n t e r S p r i n g s
R e s e a r c h P a r k
P h o t o n i c s
O r l a n d o
D o w n t o w n
L a k e N o n a
K i s s i m m e e
Locations
C l u s t e r l o c a t i o n s a r e c o l o r e d i n g r e e n
D e f e n s e , s i m u l a t i o n , c y b e r , p h o t o n i c s , s p a c e , e n e r g y , r o b o t i c s , A i ,
V R /A R , G a m e D e v , S m a r t C i t y , F i n t e c h , L i f e S c i e n c e , H e a l t h c a r e ,
D i g i t a l M e d i c a l T o o l s , H u m a n P e r f o r m a n c e , a m o n g o t h e r s .
1st Customer Program
Business Networking
Media Support
Market Research Business Development
Training/
Leadership Development Connections
Mentorship/Coaching
Programing
Spacialized /Office Space
381
U C F B U S I N E S S I N C U B A T I O N P R O G R A M
P R O G R A M T R A C K
T h i s p r o g r a m s u p p o r t t h e e x p a n s i o n
f o r s u c c e s s f u l t e c h n o l o g y /i n d u s t r y
c l u s t e r c o m p a n i e s h e a d q u a r t e r e d
o u t s i d e o f F l o r i d a o r t h e C e n t r a l
F l o r i d a R e g i o n .
S O F T L A N D I N G
T h i s p r o g r a m h e l p b u s i n e s s e s t o
d e v e l o p t h e s t r a t e g y , i n f r a s t r u c t u r e ,
a n d c a p i t a l t o s c a l e .
G R O W T H
H e l p b u s i n e s s o p e r a t i o n s a n d
h e l p t o d e v e l o p a g o -t o -m a r k e t
s t r a t e g y t o b e g i n b u i l d i n g
c u s t o m e r b a s e .
T R A C T I O N
382
A T L A N T I C
O C E A N P A C I F I C
O C E A N
I N D I A N
O C E A N
U k r a i n e - 2
G e r m a n y - 1
U n i t e d K i n g d o m - 5
V i r g i n i a -2
B r a z i l - 2
2 4 C o m p a n i e s i n t h e P r o g r a m
O h i o - 1
C o l o m b i a - 2
T e x a s -1
C a l i f o r n i a -3
A r i z o n a - 1
N e w J e r s e y - 1
G e o r g i a -1
S o u t h C a r o l i n a -1
N o r t h C a r o l i n a -1
F o r t L a u d e r d a l e -1
D e f e n s e , L i f e S c i e n c e , T r a i n i n g S i m u l a t i o n , E n e r g y ,
S o f t w a r e , M a r i n e T e c h n o l o g y , E V B a t t e r i e s ,
P h o t o n i c s & O p t i c s , a m o n g o t h e r s ...
Soft-Landing Program
Q1 - 2023-2024
T a r g e t e d R e g i o n s
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Key
Criteria
Companies
Headquartered
Outside Central
Florida
At Least One Full-Time
Executive or Management
Team Member Operating
from Central Florida
Companies that operate
within the realm of
innovative technology or
boast scalable business
models
384
Why Incubators?
E c o n o m i c D e v e l o p m e n t : I n c u b a t o r s t i m u l a t e l o c a l e c o n o m i e s b y c r e a t i n g a n d h e l p i n g s u s t a i n j o b s , n e w
b u s i n e s s e s t h a t c o n t r i b u t e t o t h e e c o n o m i c g r o w t h o f t h e e c o n o m y . W i n t e r S p r i n g s D i r e c t I m p a c t 2 0 2 3 -$3 0 M
S u p p o r t f o r S t a r t u p s : I n c u b a t o r p r o v i d e c r i t i c a l s u p p o r t w h i c h s i g n i f i c a n t l y i n c r e a s e s t h e i r c h a n c e s o f s u c c e s s .
W i n t e r S p r i n g s 3 5 0 + h o u r s o f d i r e c t b u s i n e s s c o a c h i n g & c o n s u l t i n g s u p p o r t - 2 0 2 3
I n n o v a t i o n a n d T e c h n o l o g y A d v a n c e m e n t : I n c u b a t o r s f o s t e r i n n o v a t i o n b y p r o v i d i n g a n e n v i r o n m e n t f o r t h e
d e v e l o p m e n t o f t e c h n o l o g i e s a n d i n n o v a t i v e s o l u t i o n s . W i n t e r S p r i n g s - L i f e B r i d g e , T i m e p l a s t , F r e s h o r i z e ,
P r o g r a m W o r k s , D i c a p t a a m o n g o t h e r s .
A t t r a c t i n g I n v e s t m e n t s : I n c u b a t o r a t t r a c t i n v e s t m e n t t o t h e c o m m u n i t y b y s h o w c a s i n g a p i p e l i n e o f p r o m i s i n g
s t a r t u p s t o i n v e s t o r s . W i n t e r S p r i n g s C l i e n t s A t t r a c t e d -2 0 2 3 - $9 M i n C a p i t a l I n v e s t m e n t s
P r o m o t i n g L o c a l T a l e n t : I n c u b a t o r s e n c o u r a g e l o c a l t a l e n t t o s t a y w i t h i n t h e c o m m u n i t y b y o f f e r i n g o p p o r t u n i t i e s
a n d r e s o u r c e s t h a t m i g h t o t h e r w i s e o n l y b e a v a i l a b l e i n l a r g e r c i t i e s . W i n t e r S p r i n g s - E p i c E n g i n e e r i n g , S p o r t C a s t ,
H o v e r f l y , E c h o E n g , a n d o t h e r s ...
R e d u c i n g B u s i n e s s F a i l u r e R a t e s : B y p r o v i d i n g s t r u c t u r e d s u p p o r t a n d r e s o u r c e s , i n c u b a t o r s h e l p r e d u c e t h e h i g h
f a i l u r e r a t e s t y p i c a l l y a s s o c i a t e d w i t h n e w b u s i n e s s e s . A 2 0 1 0 s t u d y f r o m t h e N a t i o n a l B u s i n e s s I n c u b a t i o n
A s s o c i a t i o n (N B I A ) f o u n d t h a t i n c u b a t e d c o m p a n i e s h a d a n 8 7 p e r c e n t s u c c e s s r a t e —a b o u t d o u b l e t h e r a t e o f
n o n -i n c u b a t e d b u s i n e s s e s . A U K s t u d y f r o m 2 0 1 4 f o u n d t h a t 9 2 p e r c e n t o f i n c u b a t e d b u s i n e s s e s w e r e
s u c c e s s f u l .
385
WHAT TO EXPECT FOR 2024-2025
C o n t i n u e t o g r o w t h e S o f t -l a n d i n g e f f o r t s a l o n g w i t h S e m i n o l e S t a t e a n d
S e m i n o l e C o u n t y .
D e p l o y C o m m u n i t y W o r k s h o p S e r i e s d u r i n g t h e F a l l a n d S p r i n g 2 0 2 4 -2 0 2 5 .
A s s i s t 2 c l i e n t s i n i d e n t i f y i n g l o c a t i o n s a s t h e y a r e g e t t i n g c l o s e r t o g r a d u a t i o n .
386
Conclusion
For the City For the County For the Region
Economic Growth
Innovation Hub
Community Development
Resource Optimization
Regional Competitiveness
Sustainable Growth
The Value of the UCF Business Incubation Program
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T h a n k Y o u !
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