Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Rev1 Ventures 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.
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 accelerates 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, and 2020, the City of Columbus contributed $250,000.00 to the program. The City wishes to contribute $250,000.00 in 2021.
Emergency action is requested to continue the administration of the Entrepreneurial Support Program without interruption.
FISCAL IMPACT: Funding for this contract is included in the Department of Development’s Economic Development Division’s 2021 General Fund Budget.
CONTRACT COMPLIANCE: Rev1 Ventures contract compliance number is 011852 and expires 5/18/22.
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 expenditure of $250,000.00 from the 2021 General Fund Operating Budget; and to declare an emergency. ($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, and 2020 for administrative cost associated with the program; and
WHEREAS, the City of Columbus desires to continue support of the program by allocating $250,000.00 in 2021 for administrative costs associated with the program; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into contract with Rev1 Ventures 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 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.
SECTION 2. 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 03 (Contractual Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 4. 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 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.