Agenda 07/07/2015 Item #11E7/7/2015 11.E.
EXECUTIVE SUMMARY
Recommendation to continue operation of a modified Soft Landing Business Accelerator Project in view of
the eminent termination of the Grant Agreement with the State of Florida Department of Economic
Opportunity and veto of the Legislature's request to extend funding for the Agreement into the State fiscal
year 2016.
OBJECTL : To obtain Board authorization to continue operation of a modified Soft Landing Business
Accelerator Project in view of the eminent termination of the Grant Agreement with the State of Florida
Department of Economic Opportunity, and veto of funding extension of the Agreement into the State's next fiscal
year.
CONSIDERATIONS: Staff recommends that the Board approve a modification to the Collier Soft Landing
Business Accelerator Project funding plan that maintains the operation of the Western Accelerator at a scaled back
level, retaining essential functionality with downsized equipment and operational costs. Staff assessment is that a
full continuity of the original plan for the County's Soft Landing Business Accelerator Project including the Western
Accelerator and Eastern facilities is not financially feasible without significant additional financial resources.
Although the Immokalee project would be suspended for the time being, staff believes with collective efforts among
our legislative delegation, County Commission, university and agribusiness partners, alternative funding strategies
for this effort will emerge over the summer and fall.
Background
Since a September 10, 2013, Economic Development Business Plan was adopted, the BCC has established goals to
include international business development and incubator /accelerator programs to foster a stronger economy.
Policy direction from the November 26, 2013 and December 10, 2013 BCC meetings culminated in the May 13,
2014 approval of the Collier County Innovation Accelerator Business Plan including authorizing its implementation.
Subsequently the County was awarded a $2,500,000 State of Florida Collier County Soft Landing Accelerator Grant
(Grant) to develop a soft landing accelerator network focused on entrepreneurship and growing technology based
companies that create quality jobs. Agreements with the State of Florida and EII the Project's administrative entity
were approved by the BCC on November 18, 2014, due to delays caused by implementing new state grant policy
requirements. The delays prompted the County to seek an extension of the legislative funding appropriations into
the State Fiscal Year 2016. That funding appropriation was approved at the legislative level, but was vetoed by the
executive branch.
Despite the aforementioned delays the Project launched in August, and has had encouraging results to date; over 13
fee paying technology based businesses including 6 of international origin, are participating in the Accelerator
Program. Among those businesses participating, 7 are in residence (occupying offices) and 6 are non - resident and
receiving assistance and other benefits of the Soft Landing Accelerator services virtually. The Accelerator continues
to receive 2 -4 inquiries per week, in addition to those produced by Global relationships produced from emerging
French and German relationships.
The Accelerator Project brings value to the local economy through the creation of jobs and the recruitment and
mentoring of innovation companies. They will help to bring high value employment opportunities for citizens,
attract new foreign direct investment, improve export opportunities for Florida companies, extend and expand the
brand recognition the region currently enjoys, build new future for our young citizens who seek to stay in the region
and build their own businesses.
FISCAL IMPACT:. The financial plan for the Accelerator program was anchored by a $2.5m DEO grant and
supported by operational income, private contributions and a funding commitment from Collier County. The grant
provided approximately $1.8m toward developing the Accelerator facilities and approximately .7M to support
Accelerator operating costs. The veto of the grant re- appropriation forces a reevaluation of the Accelerator financial
plan.
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7/7/2015 11. E.
The recommended approach is to proceed with a downsized Western Accelerator facility as outlined in the
following table. County funding already included in the current and F T'16 proposed 'budget is approximately
$500,000. Based on the downsized plan approximately $89,500 in new funding would need to be appropriated from
Economic Development Fund (007) reserves or other sources deemed appropriate. This constitutes a rational
approach with realistic assumptions that will allow the Project to continue with minimally increased County funding
levels. Future funding sources will be sought to reintroduce the Eastern Culinary Kitchen Accelerator component.
Description
Notes
FY 16 Continue Western Accelerator
operations and facility development
with a downsized staffing and facility
improvement model
Personnel Costs
Director, Administrative Manager & FT Intern
295,000
Facility Operating Costs
Rent, IT system, etc.
126,500
General Operating Costs
Insurance, professional services, business
services, auditing, legal, etc.
123,200
Facility Improvements
Site Improvements - Donated furniture & fixtures,
shipping, installation and $50,000 furniture
allowance along with design and installation for
data, electrical, HVAC and lighting requirements
200,000
Total Expenditures
744,700
Business Income & Private Contributions
155,200
Less Grant Funding in FY15
Assumes all grant proceeds are applied to grant
eligible costs incurred in FY15
-
County Funding
589,500
Total Sources
744,700
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 for form and legality and requires a majority vote for Board
approval. — JAB
RECOMMENDATION: Recommendation to continue operation of a modified Soft Landing Business
Accelerator Project in view of the eminent termination of the Grant Agreement with the State of Florida
Department of Economic Opportunity and veto of the Legislature's request to extend funding for the Agreement
into the State fiscal year 2016.
Prepared by:
Bruce Register, Director, Office of Business and Economic Development
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.E.
7/7/2015 11.E.
Item Summary: This item to be heard at 11:00 a.m. Recommendation to continue operation of a
modified Soft Landing Business Accelerator Project in view of the eminent termination of the Grant
Agreement with the State of Florida Department of Economic Opportunity and veto of the Legislature's
request to extend funding for the Agreement into the State fiscal year 2016. (Bruce Register, Office of
Business and Economic Development)
Meeting Date: 7/7/2015
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, County Managers Office
6/30/2015 5:00:59 PM
Submitted by
Title: Executive Secretary to County Manager, County Managers Office
Name: BrockMaryJo
6/30/2015 5:01:00 PM
Approved By
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 6/30/2015 5:49:40 PM
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