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 $18.7 million for the Entrepreneurial Signature Program which will accelerate 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 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, 2009 and 2010 as their portion of the match. In 2011, 2012 and 2013, the City of Columbus allocated $500,000, respectively, towards this initiative in the form of administrative costs associated with the Entrepreneurial Signature Program. The City wishes to continue this level of contribution for 2014.
Since inception, TechColumbus has served more than 500 entrepreneurs and companies. An investment of $12.3 million in 140 firms has attracted more than $540 million in company investment and created over 720 jobs by funded and incubated companies. More than 20 percent of the companies have achieved commercial success or profitable exists, returning a value of $2 million to TechColumbus.
FISCAL IMPACT: This legislation authorizes the expenditure of $500,000 from 2014 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; to authorize the expenditure of $500,000.00 from the General Fund; and to declare an emergency. ($500,000.00)
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 $18.7 million (ESP Program) to accelerate the creation and growth of new technology companies in Central Ohio; and
WHEREAS, the Entrepreneurial Signature Program (ESP) required a 1-to-1 funding match from regional partners; and
WHEREAS, the City of Columbus provided $188,000 for years one, two, three, four and $500,000 for years five, six and seven, respectively, of the ESP program; and
WHEREAS, the City of Columbus desires to continue support of the Entrepreneurial Signature Program by allocating $500,000 in administrative costs associated with ESP; 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 continue the administration of the above activities without interruption, 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 contract with TechColumbus for the purpose of supporting its role as the region's lead applicant agency, responsible for administering Entrepreneurial Signature Program grant funding.
Section 2. That the expenditure of $500,000.00 or so much thereof as may be necessary, be and is hereby authorized to be expended from the Department of Development, Economic Development Division 44-02, Fund 010, Object Level One 03, Object Level Three 3337, OCA 440314.
Section 3. That this contract is awarded pursuant to Section 329.15 of the Columbus City Codes, 1959 as amended.
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 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 if the Mayor neither approves nor vetoes the same.