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Agenda 05/26/2020 Item #11A (FGCU Accelerator Project Agreement)05/26/2020 EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to sign an Agreement with the Florida Gulf Coast University School of Entrepreneurship for programmatic support to the Collier County Accelerator project, in the annual amount of $377,651.29 and authorize the necessary budget amendments. OBJECTIVE: To enable Florida Gulf Coast University’s (“FGCU”) School of Entrepreneurship (“SOE”) to provide entrepreneurial programming and mentorship for entrepreneurs participating in the Naples Accelerator Program. CONSIDERATIONS: On September 13, 2013, the Board approved Agenda Item 11.C, the Office of Business & Economic Development's FY 14 Business Plan, which includes a goal of developing a Business Accelerator program. Policy direction from the Board at its November 26th and December 10, 2013 meetings, culminated in the Board’s eventual approval of the Collier County Innovation Accelerator Business Plan on May 13, 2014. The Naples Accelerator was managed by Economic Incubators, Inc. (“EII”), a contract partner that also eventually operated the Culinary Accelerator @ Immokalee, following Board approval of an administrative contract at its November 18, 2014 meeting (Agenda Item 11.C). FY 2018 was the last year that EII maintained a full complement of staff and operated the program at their full capacity. In FY 2018, the EII budget for the Naples Accelerator was $719,526. That arrangement continued until the Board terminated its relationship with EII at the Board’s July 9, 2019 meeting (Agenda Item 16.F.7). At that time, the Board directed staff to pursue an agreement with FGCU for operation of the Naples Accelerator. In the interim, the facility has been operated on a limited basis by repurposed staff of the Office of Business & Economic Development. The limited capacity was implemented while pursuing an agreement with FGCU at a net cost of approximately $441,747. Since July 2019, County staff has worked with FGCU to integrate the Naples Accelerator programming into the larger regional partnership being pursued with the university. Staff and FGCU personnel have designed a programmatic effort that will add a structured, time-limited program for Accelerator participants where they are initially vetted before acceptance to the Accelerator program and have a program designed to take the business through to a capital pitch with resettlement of operations outside of the Accelerator in Collier County. Under the Agreement, FGCU will provide entrepreneurial programming and mentorship for entrepreneurs participating in the Naples Accelerator Program. Programming will include training modules covering certain areas of entrepreneurship such as the lean startup process, technology and innovation, business modeling, venture launch and growth, venture capital, and other critical tools and skills for entrepreneurs based on the needs of entrepreneurs at the Naples Accelerator. Modules will consist of virtual training sessions that entrepreneurs can access at any time during the program to help them learn critical skills and tools used by successful entrepreneurs. These online offerings are tailored to entrepreneurs at the Naples Accelerator. There are currently six distinct modules the SOE can offer, which will expand to nine within the next year. In conjunction with each module, the SOE will offer in person or virtual office hours for entrepreneurs renting space at the Naples Accelerator. These live one-on-one sessions will be facilitated by an SOE faculty and entrepreneurs will be able to ask specific questions related to their individual businesses. Timing for office hours will be scheduled based on the needs of entrepreneurs at the Naples Accelerator. 11.A Packet Pg. 24 05/26/2020 Current Module Offerings: 1- Entrepreneurship and Creativity 2- New Venture Launch 3- New Venture Growth 4- Technology and Innovation 5- New Venture Capital Management 6- Social Entrepreneurship: Future Module Offerings: 7- Innovative Decision Making 8- Innovation by Design 9- Founder’s Dilemma Mentorship, which is paired with each module, will take place through in person and virtual office hours, where SOE faculty and staff will meet with entrepreneurs at the Naples Accelerator on an individual (or company) basis to answer specific questions related to their companies. Staff has further realigned personnel within the County’s purview in anticipation of the FGCU program, as well as reduced other expenses in the economic development budget. Due to this, the cost of the FGCU program can be added to the Naples Accelerator for operation at a net cost of $594,588 as summarized in the backup material. Naples Accelerator FY18 (EII full program) $ 719,526 FY20 (County limited program) $ 441,747 FY20 (revised w/FGCU full program) $ 594,588 After the Accelerator program is successfully transitioned to programmatic operation by FGCU, the university will seek to provide additional programmatic elements at the Accelerator facility, including the FGCU Complete and Renaissance Programs. Staff envisions future opportunities to expand the relationship between the University and County and continue to build on future workforce development initiatives, job creation, and overall diversification of the economy. The attached proposed Agreement provides that before expiration of the Kraft Center lease in October 2020, the parties agree to pursue a mutually acceptable location (new or existing) to host these programs and activities. FISCAL IMPACT: The first year of the FGCU Agreement amount is $377,651.29. Upon execution of the necessary budget amendments, budget will be available within Economic Development Fund (007), which is comprised of proceeds from the local government share of revenue sharing from gaming proceeds pursuant to the agreement between the State of Florida and the Seminole Tribe. Through an effective staff reorganization and identification of budget efficiencies within the County’s Economic Development program, the FGCU program can be added at the Naples Accelerator while still 11.A Packet Pg. 25 05/26/2020 reducing the overall projected FY20 Economic Development budget from $2,000,000 to $1,886,034. With the FGCU addition, the overall Accelerator operating budget is at a cost savings to the prior contract operator when fully staffed for program delivery. GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: “Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industries in order to diversify the County’s economic base.” LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: To approve and authorize the Chairman to sign the attached Agreement with the Florida Gulf Coast University Board of Trustees for programmatic support to the Collier County Accelerator project, through FGCU’s School of Entrepreneurship, in the annual amount of $377,651.29 and authorize the necessary budget amendments. Prepared by: Sean Callahan, Executive Director, Corporate Business Operations ATTACHMENT(S) 1. Accelerator Budgets FGCU (PDF) 2. FGCU Accelerator Agreement 05.20.2020 (PDF) 11.A Packet Pg. 26 05/26/2020 COLLIER COUNTY Board of County Commissioners Item Number: 11.A Doc ID: 12375 Item Summary: ***This item was continued from the May 12, 2020 BCC meeting *** Recommendation to approve and authorize the Chairman to sign an Agreement with the Florida Gulf Coast University School of Entrepreneurship for programmatic support to the Collier County Accele rator project, in the annual amount of $377,651.29 and authorize the necessary budget amendments. (Sean Callahan, Executive Director, Corporate Business Operations) Meeting Date: 05/26/2020 Prepared by: Title: Manager - Technical Systems Operations – Administrative Services Department Name: Michael Cox 05/13/2020 11:02 AM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 05/13/2020 11:02 AM Approved By: Review: Public Services Department Jennifer Reynolds Additional Reviewer Completed 05/13/2020 1:33 PM Corporate Business Operations Sean Callahan Additional Reviewer Completed 05/13/2020 1:38 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 05/14/2020 9:19 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/14/2020 9:31 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/14/2020 12:39 PM Budget and Management Office Ed Finn Additional Reviewer Completed 05/19/2020 3:22 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 05/20/2020 2:41 PM Board of County Commissioners MaryJo Brock Meeting Pending 05/26/2020 9:00 AM 11.A Packet Pg. 27 FY 18 (EII ‐ Full) FY20 (Limited) FY20 (Full ‐ FGCU) Personnel 379,926$                252,784$                     67,067$                        Operating 141,700$                96,713$                       57,620$                        Rent 197,900$                211,000$                     211,000$                      *FGCU Program 377,651$                     Direct Revenue ‐$                         (118,750.00)$             (118,750.00)$              Program Cost 719,526$                441,747$                     594,588$                      Naples Accelerator Budgets 11.A.1 Packet Pg. 28 Attachment: Accelerator Budgets FGCU (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 29Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 30Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 31Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 32Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 33Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 34Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 35Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 36Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 37Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 38Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 39Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 40Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 41Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement) 11.A.3Packet Pg. 42Attachment: FGCU Accelerator Agreement 05.20.2020 (12375 : FGCU Accelerator Agreement)