Explanation
BACKGROUND: TechColumbus is a non-profit organization dedicated to providing a catalyst for technology-based economic development in Central Ohio. To that end, TechColumbus led a successful regional proposal to the State of Ohio, to secure $15 million over four years for the Entrepreneurial Signature Program which will accelerate the creation and growth of new technology companies. The ESP program includes early stage capital to meet the needs for pre-seed capital for Ohio start-up technologies companies. A 1-to-2 funding match was required as a condition of the ESP. The City of Columbus committed $188,000 in 2007, 2008 and 2009 as their portion of the match and is again committing $188,000 in 2010.
In addition, another TechColumbus program, Third Frontier TechColumbus Pre-Seed Fund III, will provide pre-seed capital to late imagining, incubating and early demonstrating phase technology based start-up businesses. TechColumbus will create this $1,000,000.00 fund with a $500,000 grant from the Third Frontier Pre-Seed & Entrepreneurial Success Initiative and a grant from The Ohio State University. The City of Columbus is allocating $250,000 towards this initiative in the form of administrative costs associated with the Pre-Seed Fund III.
This legislation authorizes the Director of Development to enter into an agreement with TechColumbus for the purpose of supporting efforts to attract and grow technology businesses through the Entrepreneurial Signature Program and the Third Frontier TechColumbus Pre-Seed Fund III. This ordinance authorizes the use of $438,000 of General Funds to contract with TechColumbus for that purpose.
Emergency action is requested to continue the administration of the above activity.
FISCAL IMPACT: Funding for this contract is available in the 2010 General Fund budget.
Title
To authorize the Director of the Department of Development to enter into a contract with TechColumbus for the purpose of administering the Entrepreneurial Signature Program and the Third Frontier TechColumbus Pre-Seed Fund III; to authorize the expenditure of $438,000.00 from the General Fund; and to declare an emergency. ($438,000.00)
Body
WHEREAS, TechColumbus is a partnership working to provide the catalyst for technology-based economic development in Columbus and Central Ohio; and
WHEREAS, TechColumbus led a successful regional proposal to the State of Ohio to secure $15 million over four years (ESP Program) to accelerate the creation and growth of new technology companies in Central Ohio; and
WHEREAS, the Entrepreneurial Signature Program (ESP) requires a 1-to-2 funding match from regional partners; and
WHEREAS, the City of Columbus provided $188,000.00 for years one, two and three of the ESP program; and
WHEREAS, an additional $188,000.00 has been allocated for year four for the ESP program; and
WHEREAS, another TechColumbus program, Third Frontier TechColumbus Pre-Seed Fund III will provide pre-seed capital to late imagining, incubating and early demonstrating phase technology based start-up businesses; and
WHEREAS, $250,000.00 has been allocated for the Third Frontier TechColumbus Pre-Seed Fund III; and
WHEREAS, the total amount allocated for both TechColumbus programs through this legislation is $438,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to enter into contract with TechColumbus to prevent an interruption in the delivery of program services, all for the preservation of the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter an agreement with TechColumbus for the purpose of supporting its role as the region's Lead Applicant agency, responsible for administering the ESP grant funding and the Third Frontier TechColumbus Pre-Seed Fund III.
Section 2. That the expenditure of $438,000.00 or so much thereof as may be necessary, be and is hereby authorized to be expended from the Department of Development, Economic Development Division No. 44-02, Fund 010, Object Level One 03, Object Level Three 3337, OCA Code 440314.
Section 3. That this contract is awarded pursuant to Section 329.15 of the Columbus City Codes, 1959 as amended.
Section 4. That for the reasons stated in the preamble hereto which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten days after passage of the Mayor neither approves nor vetoes the same.