City Council Study Session Agenda and Packet 2011 10 25

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COUNCIL COMMUNICATION TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING, CITY MANAGER DATE: OCTOBER 25, 2011 SUBJECT: UPDATE /DISCUSSION - PROPOSED BUSINESS INCUBATOR ORIGINATING DEPARTMENT: ECONOMIC DEVELOPMENT BACKGROUND: Business incubators are locations (usually buildings) that create a business environment where fledgling businesses can grow until such time as they are large enough to support themselves. The incubators are usually partners with, and associated with, a cadre of mentors, legal counsel, accounting guidance, and administrative assistance as part of the rent package. In early 2011, staff was approached by HoIli Riebel, President and CEO of the Colorado Bioscience Association regarding the lack of appropriate incubator space for the bioscience industry in the northwest corridor. Because Louisville is ideally situated to meet the need, she facilitated a meeting between City staff and Andrew Unkefer of Multiprop, Inc., a potential incubator developer. Andrew has devoted a huge amount of energy into researching business incubators since that meeting. He has visited, and facilitated a separate visit of the Mayor and staff, to Rocky Mountain Innosphere (RMI2 - Innosphere), a new business incubator in Fort Collins. (http: / /rmi2.org). Andrew has employed an architectural firm to draw up concepts for such a space, copies of the concept elevation is attached. In the case of RMI2 - Innosphere, there exists a for - profit company that holds the real estate and a non - profit company that provides the business support and advisorship. Not all of the companies make it "out of the nest" to profitable status. However, the ones that do succeed have a great propensity to remain in the community as viable and important businesses and centers of employment Because there is so much risk to incubators, they are rarely good candidates for direct investment from the public sector, or private sector for that matter. The general principles which guide the formation of a successful incubator facility and associated programs include a nearby research university, good local private investment potential, and a supportive business environment. Louisville would well fit these prerequisites due to the proximity. to CU in Boulder, the thriving businesses within the Colorado Tech Center, and the City's track record with business assistance. If the Council desires, Louisville has the ability to facilitate the location of a business incubator here in a couple of ways. One is to allow a long -term land lease or other favorable terms for the use of 5 acres along 96th Street adjacent to the Colorado Tech Center (see attached map). This land was provided to the City as part of the Northwest Parkway /96th E SUBJECT AGENDA ITEM UPDATE /DISCUSSION - PROPOSED BUSINESS INCUBATOR 11 2