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Home My WebLink About2010 10 11 Regular 600 University Of Central Florida Incubator Funding COMMISSION AGENDA Consent Informational ITEM 600 Public Hearing Regular X October 11, 2010 Meeting II AI gr. / Dep' Authorization REQUEST: The City Manager and the Community Development Department requests the Commission consider the request from the University of Central Florida Incubator for funding for FY 10 -11, FY 11 -12, and FY 12 -13 in an amount not to exceed $75,000 per year. SYNOPSIS: In July 2007, the City Commission approved a grant to the UCF Incubator in the amount of $200,000 (Agenda Item 600, July 23, 2007 City Commission Meeting). The City's grant was in concert with a $900,000 commitment over three (3) years from Seminole County and a $30,000 commitment over three (3) years from the Florida High Tech Corridor Council. UCF is now requesting $75,000 per year for FY 2011 -2013 which represents an extension in the funding support from the City. UCF has also requested additional funding from Seminole County as detailed on Attachment D. The Incubator has been open since February 2008 and has 14 current companies and has graduated 5 companies. CONSIDERATIONS: Many of the Incubator's current and graduated companies are involved in software, communications, military applications, and computer -based technologies. These businesses in conjunction with the on -going efforts of the Incubator are a good compliment to the current economic development efforts of the City relative to the Semetech project and the overall economic development vision for the Greeneway Interchange District. The City of Oviedo is considering a partnership with the City of Winter Springs for half of the $75,000 annual funding level. If this partnership is formally approved by the Oviedo City Council, the City of Winter Springs would be providing $37,500 annually for the three year time frame. FISCAL IMPACT: The fiscal impact of this request is a total of $225,000 over the next three (3) years ($75,000 each year). If the Oviedo partnership is approved, this impact would be reduced by half, or $112,500. October 11, 2010 Regular Item 600 Page 2 While the City's current budget (2010 -2011) contains the first year funding of $75,000, Staff wanted to make the Commission aware of the potential partnership with the City of Oviedo and the resultant decreased impact to the current budget. Any commitment beyond FY 2011($75,000) would be subject to budget appropriations in FY 2012 and FY 2013. These funds, if approved, would come from Economic Development reserves. COMMUNICATION EFFORTS: The Commission Agenda has been posted on the bulletin board outside City Hall, on the City's electronic sign; the agenda is electronically posted according to the City Clerk's procedure. RECOMMENDATION: Staff recommends that the City Commission approve the request of the UCF Incubator and authorize the City Manager and the City Attorney to prepare and execute all appropriate documentation, including the possible inclusion of the City of Oviedo if the partnership is approved by the Oviedo City Council. ATTACHMENTS: A UCF Incubator — Facts Summary of Economic Impact B Winter Springs Incubator Current Client Companies and Graduated Companies C UCF Incubator Occupancy History D UCF Incubator Proposed Budget 2010 -2013 E UCF Incubator Projected Expenses ATTACHMENT A i, t UNIVERSITY OF CENTRAL . FLORIDA BUSINESS INCUBATION PROGRAM UCF INCUBATOR — SEMINOLE COUNTY /WINTER SPRINGS FACTS SUMMARY OF ECONOMIC IMPACT Open Since: February 2008 Size: 10,800 sq ft Incubator Partners: UCF, Seminole County, City of Winter Springs, Florida High Tech Corridor Council, Oviedo - Winter Springs Regional Chamber of Commerce Current Incubator Companies: 14 Current Occupancy Rate: 68% Industries Represented: Technology /Software Development, Construction, Electronics, Medical, Professional Services, Information Security, Telecommunications Current Employment by Incubator Companies: 82 Avg. Employee Annual Salary: $70K 2009 Cumulative Payroll: $5.9M 2009 Cumulative Revenues: $10M Investment Funding Secured by Companies: $4.55M SBIR Grants Awarded to Companies: $650K Graduated Incubator Companies: 5 Graduate Employment to Date: 45 2009 Avg. Employee Annual Salary: $65K 2009 Cumulative Payroll: $3.8M 2009 Cumulative Annual Revenue: $675K Sq. Ft. Occupying: 10,500 Investment Funding Secured by Graduates: $11M Past Incubator Companies: 5 Past Incubator Company Employment: 16 Avg. Employee Annual Salary: $52K 2008 Cumulative Annual Revenue: $420K ATTACHMENT B WINTER SPRINGS INCUBATOR CURRENT CLIENT COMPANIES: ✓ ADD Semiconductor is a world leader in the development of low cost and high efficiency systems on a chip (SoC) for communications and digital signal processing applications. ✓ Advanced Technologies, Inc. develops military and government software, and is currently developing open source intersection control logic under contract to the US Department of Transportation. ✓ Aquiline Group is a full service public relations and consulting firm dedicated to the peak performance of private & public companies. ✓ BDG Construction Services is a general contractor whose recent contracts include splash parks for City of Winter Springs and City of Orlando, Florida Hospital medical offices, various local restaurants. ✓ Datanautix, Inc. enables organizations to drive breakthrough operational improvements in their call center and back office operations using innovative analytical tools and data. ✓ ERP Consulting Exchange is an online community of professionals who consult to companies that use enterprise resource planning software. ✓ Global -ENC is dedicated to serving the computer and security needs of Non - Profit Organizations, area Businesses, and Government Agencies. ✓ Greensleeves LLC is a building energy systems integrator that delivers proven HVAC and lighting systems that conserve capital, protect the environment, and reduce the costs and risks of acquiring and operating building heating, cooling, ventilation and lighting systems. ✓ iMedia ReachTM provides complete SMS mobile marketing services and text message campaigns for Orlando, Tampa, Jacksonville, Miami, across the state of Florida, and Nationwide. The company specializes in reaching and engaging audiences with Consumer Messaging, Event Messaging and Alert Messaging services. ✓ NR Electronics, LLC procures and distributes obsolete and hard to find electronic components. Recently awarded SBA 8(A) certification. In process of hiring engineers and operations personnel. ✓ Primal Innovation specializes in software development for military applications. Recently awarded a $2.55M contract with Department of the Army. ✓ Reliant Lab Diagnostics, Inc. offers highly specific, expert consulting and management services to the Physician Office Laboratory market, the Independent Laboratory market for certain small to mid -sized medical facilities, the skilled Nursing and Assisted Living Facilities, and Dialysis Centers that wish to establish their own in -house laboratories. ✓ Roble Learning Center offers small -group SAT classes and one -on -one tutoring in a variety of subjects. ✓ The Patent Guild provides patent services and product development support to businesses and individuals. WINTER SPRINGS INCUBATOR GRADUATED COMPANIES: ✓ Spectrum Bridge provides new wireless communication system technologies that enable the real time identification, leasing and utilization of available radio spectrum. ✓ Plus One Solutions enables service organizations to improve the quality and coverage of their service provider networks. ✓ Now Marketplace helps businesses make the transition to online advertising easily and seamlessly, while utilizing the provided content to populate a portal web site. ✓ Piromas LLC is a multimedia company, which has developed a multimedia content provider and affinity -based online platform, www.BlackMediaStream.com. ✓ Great Southern Insurance Brokerage is a full service commercial lines insurance broker with a focus on coverage options for healthcare and legal professionals. . . , . W :cl ; i: 00 .; ; , 1/1/2008 . 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Income' 6,000 10,000 10,000 26,000 TOTAL INCOME 475,334 476,134 476,734 1,428,202 EXPENSES _ _Equipment & Furniture _- 14,164 14,164 1 42,492 Facilities - Maint. & Materials 7,400 7,400 7,400 22,200 Facilities - Rent & Oper Costs 221,400 221,400 221,400 664,200 Indirect & Management Fees 20,750 21,550 22,150 64,450 Marketing & Promotions 6 6,000 6,000 6,000 18,000 Office Materials & Supplies 3,120 3,120 3,120 9,360 Salaries & Fringe Benefits 144,000 144,000 144,000 432,000 Subscriptions & Memberships 1,000 1,000 1,000 3,000 Travel 7,800 7,800 7,800 23,400 Utilities 14,700 _14,700 14,700 _ _ 44,100 Management Oversight 35,000 35,000 35,000 105,000 TOTAL EXPENSES 475,334 476,134 476,734 1,428,202 BALANCE 0 0' 0 0 NOTES: 1- Rent Income assumes_ 70 %, 80 %, and 90% occupancy, respectively _- _ _ _ 2- Misc. Income comprised of conference room rentals and extra copies __ _ 3- Expenses based on historical data -- - 4 for Yrs 1 -3 assumes re- negotiated fixed rate of $20.50sf, incl. CAM, with no annual increase. This represents a 3 -yr total rent decrease of $109k. 5- Indirect/Management Fees based on 5% of income 6- 90% is shared cost of UCFBIP marketing programs 7- Salary + Fringe Benefits for Site Manager & Program Coordinator 8- Includes 2 office phones + 2 staff cell phones 9- Prorated salary/fringe benefits for executive oversight & strategy consulting, Gordon Hogan & Tom O'Neal. Revised: 06may10 ATTACHMENT E UCF INCUBATOR - SEMINOLE COUNTY PROJECT EXPENSES: ACTUAL Year 0 ** Year 1 Year 2 _ Year 3 TOTAL Sep06- Ju1y07 Aug07- JuIy08 Aug08 -Ju109 Aug09 -Apr10 Oct06 - Apr10 INCOME Funding - Seminole County 0 300,000 300,000 300,000 900,000 Funding - City of WS 0 200,000 0 0 200,000 Funding - FHTCC 0 0 10,000 10,000 20,000 Rent Income 0 20,269 59,747 43,831 123,847 Misc. Income _ 0 0 855 2,718 3,573 UCF Contribution 0 65,508 65,508 65,509 196,525 TOTAL INCOME $0 $ 585,777 $ 436,110 $ 422,058 $ 1,443,945 EXPENSES _ Buildout Costs 0 200,000 , 0 0 200,000 Equipment & Furniture 0 34,535 15,660 8,254 58,450 Facilities - Maint. & Materials 0 29,878 8,582 4,183 42,643 Facilities - Rent & Operating Costs 0 243,750 250,290 214,832 708,872 , Indirect & Management Fees 0 10,913 12,055 26,185 49,153 Marketing & Promotions 0 2,109 5,964 215 8,288 Office Materials & Supplies 0 5,823 3,780 279 9,881 Salaries & Fringe Benefits 0 118,915 133,345 72,601 324,861 Subscriptions & Memberships 0 596 1,521 _ 708 2,825 Travel 0 4,924 6,085 2,752 13,761 Utilities 0 4,505 11,368 9,338 25,212 TOTAL EXPENSES $0 $ 666,948 $ 448,649 $ 339,347 $ 1,443,945 NOTES: * Actual (includes Project Account & Research Foundation Account) ** No Activity