Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Rev1 Ventures, a non-profit corporation, in an amount up to $250,000.00 for the purpose of supporting efforts to attract and grow technology businesses through the Entrepreneurial Signature Program. Funding will be advanced to the agency on a predetermined schedule.
Rev1 Ventures, formerly known as TechColumbus, is a seed stage venture development organization that combines investment capital and strategic services to help entrepreneurs build products that people want and companies that succeed. Rev1 Ventures led a successful regional proposal to the State of Ohio to secure $18.7 million for the Entrepreneurial Signature Program (ESP) which accelerated the creation and growth of new technology companies in Central Ohio. The ESP Program includes early stage capital to meet the needs for pre-seed capital for Ohio start-up technology companies. A 1-to-2 funding match was required as a condition of the ESP Program. The City of Columbus provided $188,000.00 in 2007, 2008, 2009 and 2010 as their portion of the match. In 2011, 2012, 2013 and 2014, the City of Columbus provided $500,000.00, respectively, towards this initiative in the form of administrative costs associated with the program. In 2015, 2016, and 2017, the City of Columbus contributed $450,000.00 to the program. In 2018, 2019, 2020, 2021, and 2022, the City of Columbus contributed $250,000.00 to the program. The City wishes to contribute $250,000.00 in 2023.
FISCAL IMPACT: Funding of $250,000.00 for this agreement is included in the Department of Development’s Economic Development 2023 General Fund Budget, but will require a transfer from Object Class 03 to Object Class 05.
CONTRACT COMPLIANCE: The vendor’s contract compliance number is 011852 and expires on 7/10/24.
Title
To authorize the Director of the Department of Development to enter into a grant agreement with Rev1 Ventures for the purpose of administering the Entrepreneurial Signature Program; to authorize the transfer and expenditure of up to $250,000.00 from the 2023 General Fund Operating Budget; and to authorize the advancement of funds on a pre-determined schedule. ($250,000.00)
Body
WHEREAS, Rev1 Ventures, formerly known as TechColumbus, is a seed stage venture development organization that combines investment, capital, and strategic services to help entrepreneurs build products that people want and companies that succeed; and
WHEREAS, Rev1 Ventures, led a successful regional proposal to the State of Ohio to secure $18.7 million to accelerate the creation and growth of new technology companies in Central Ohio; and
WHEREAS, the Entrepreneurial Signature Program (ESP) required a 1-to-2 funding match from regional partners; and
WHEREAS, the City of Columbus provided $188,000.00 in 2007, 2008, 2009 and 2010 for the program; and
WHEREAS, the City of Columbus provided $500,000.00 in 2011, 2012, 2013 and 2014 for the program; and
WHEREAS, the City of Columbus provided $450,000.00 in 2015, 2016 and 2017 for the program; and
WHEREAS, the City of Columbus provided $250,000.00 in 2018, 2019, 2020, 2021 and 2022 to fund administrative cost associated with the program; and
WHEREAS, funding will be advanced to the agency on a predetermined schedule; and
WHEREAS, the City of Columbus desires to continue support of the program by allocating $250,000.00 in 2023 for administrative costs associated with the program;
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 into a grant agreement with Rev1 Ventures in an amount up to $250,000.00 for the purpose of supporting its role as the region’s Lead Applicant Agency, responsible for administering the Entrepreneurial Signature Program grant funding, and is authorized to advance funds per a schedule to be included in the agreement.
SECTION 2. That the transfer of $250,000.00 or so much thereof as may be needed, is hereby authorized within Fund 1000 (General Fund), from Dept-Div 44-02 (Economic Development), object class 03 (Services) to Dept-Div 44-02 (Economic Development), object class 05 (Other Expenditures) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose stated in Section 1, the expenditure of $250,000.00, or so much thereof as may be needed, is hereby authorized in Fund 1000 (General Fund), Dept-Div 4402 Economic Development), in Object Class 05 (Other Expenditures) per the accounting codes in the attachment to this ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.