UNIVERSITY OF ILLINOIS RESEARCH PARK, LLC BOARD OF MANAGERS MEETING MINUTES July 26, 2017

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1 Approved October 2, 2017 UNIVERSITY OF ILLINOIS RESEARCH PARK, LLC BOARD OF MANAGERS MEETING MINUTES July 26, 2017 ihotel and Conference Center 1900 S. First Street Champaign, IL Chair Ed McMillan called the meeting of the University of Illinois Research Park, LLC Board of Managers (BOM) to order at 10:05 a.m. Present and participating in the meeting were: Voting Managers Ed McMillan Pat Daly Roderick Johnson Rick Stephens Peter Schiffer Mitra Dutta Liang Liu Non-voting Managers Walter Knorr Ed Seidel Absent None UI Attendees Developer Attendee TJ Augustine Tremayne Price Andrea Ruedi Michael Bass Jason Sweet Laura Bleill Bruce Walden Cynthia Faullin Roger West Laura Frerichs Media Kristy Kuzmuk Ben Zigterman, News-Gazette Chair McMillan acknowledged and personally thanked Walter Knorr for his service to the University and the Research Park. Mr. Knorr mentioned that Avijit Ghosh will be acting as the interim Comptroller at the University.

2 Chair McMillan reviewed the history of the University of Illinois Research Park LLC (UIRP LLC) noting the addition of technology commercialization as a mission of the University. Chair McMillan noted how the UIRP LLC has evolved from just University of Illinois Urbana-Champaign (UIUC) activity to also include activities at the University of Illinois- Chicago (UIC). Chair McMillan wants to ensure there is an open dialog in this meeting and then turned the meeting over to Ed Seidel to facilitate. Overview and Strategic Visioning Process and Expectations for the Retreat Dr. Seidel made opening remarks to discuss the strategic plan for UIRP LLC and mentioned the internal audit finding which noted the lack of a strategic plan. Dr. Seidel discussed the goals of this meeting, the governance of UIRP LLC, the strategic planning process and how to align this strategic plan with the new strategic framework of the University of Illinois System. Dr. Seidel led a conversation focusing on UIRP LLC strategic planning as part of the broader VPEDI strategic planning efforts. The discussion included how the UIRP LLC strategic plan will address the University of Illinois responsibility to create value across the State of Illinois and will define specifically what the UIRP LLC serves as part of its business model moving forward. The group reflected a consensus regarding healthcare innovation being a critical space for the UIRP LLC, specifically with the significant healthcare expertise at UIC and the new engineering-based medical school at UIUC. 2

3 Laura Frerichs reviewed the landscape of incubators and tech parks in Illinois. Ms. Frerichs noted the definition of tech parks and growth incubators including the Polsky Incubator, Innovation Project on 53 rd St, Northwestern: The Garage, ispi Innovate Springfield, University Technology Park at IIT, Eiger Lab, SIU Carbondale Research Park & Incubator, Peoria Next, Rosalind Franklin, Greenville Entrepreneurship Center, 1871, Matter, Connectory, UI Labs, mhub, Fintank, Coalition, 2112, Blue 1647, and The Hatchery as examples throughout the State of Illinois. Strategic Planning Session #1: Scope and Governance of UIRP LLC Dr. Seidel initiated discussion how the UIC campus is evolving. He noted that past activities of UIRP LLC have focused on UIUC, and questioned the geographic responsibilities of the UIRP LLC. Dr. Seidel noted there is a lot of interest in having more local input and control by each campus. The group discussed possible UIRP LLC structural updates which may include individual committees/boards that oversee campus-level activities with an overarching group or board that brings those activities together. Peter Schiffer noted that he was very much in favor of local control. Chair McMillan called a break for lunch at 11:36 am. The meeting was reconvened at 11:53 am. Dr. Seidel summarized key principles of the previous session including current momentum at UIC and momentum at UIUC. Roderick Johnson noted how the UIRP at UIUC has evolved and that there is great leadership at UIRP at UIUC. Mr. Johnson also noted he 3

4 would like the BOM to continue engagement with UIC. Mr. Daly noted the significance of the BOM to providing opportunity for the campuses to interact with each other and find synergies. Strategic Planning Session #2: A Frank Look at Ourselves and Our Future Dr. Seidel introduced part 2 of the strategic planning session to discuss trends in research parks and Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and brainstorming. Ms. Frerichs presented University Research Park Trends including key trends for consideration, research and technology parks, and accelerators/incubators. Bruce Walden reviewed public private partnership models and alternative ways to deliver real estate projects on University of Illinois property. Dr. Seidel facilitated the SWOT analysis noting the following: Strengths Mr. Johnson heralded the day-to-day leadership (and staff) at UIRP at UIUC. Also discussed the need to nurture and expand staff at UIRP at UIUC. Chair McMillan noted a strength in campus leadership with the UIC, UIS, and UIUC Chancellors driven to move their institutions forward in innovation, entrepreneurship, and economic development. Mr. Stephens commented on the public/private partnership with Fox/Atkins as a strength. Fox/Atkins has made investments in the Research Park where others would not. Weaknesses 4

5 Chair McMillan noted the need to relocate the feed mill and animal facilities, citing both as a major obstacle for growth at UIRP at UIUC. Mr. Stephens commented that the Research Park environment is encumbered by the continued presence of agriculture facilities that are inconsistent in purpose, antiquated, odor producing, and constrain the available land to grow and recruit more companies. Mr. Daly noted the UIRP at UIUC has a suburban feel whereas trends have moved towards increasing density and taller buildings to create urban environments. Also discussed was the need to prioritize projects. Mr. Stephens discussed the need for more growth stage venture capital, especially the B, C, and D rounds. Ms. Frerichs noted concerns about the budget stability of the State of Illinois and the lack of business incentives in Illinois to support business growth and attract new larger scale operations. Also noted was the need for matching fund opportunities for SBIR grants, seed funding for startups. Opportunities Mr. Johnson asked why we still used the name Research Park if research is no longer the driving force for operations, vs. development of innovation and should consider rebranding. Dr. Seidel stated the need for a more aggressive growth strategy for the future of the UIRP at UIUC that includes more post-incubation space, and more corporate innovation growth. 5

6 Mr. Stephens discussed the new UIUC College of Medicine as a growth opportunity and could develop engineering-based medical startup companies. Mr. Johnson noted the residential space/affordable housing available in Illinois versus the coasts. Ms. Frerichs noted a funding opportunity through incentives through the State of Illinois which are currently focusing on manufacturing jobs. Dr. Seidel mentioned engaging the endowment funds more aggressively in venture capital activities. Threats Mr. Stephens discussed the lack of critical mass of startups remaining in Champaign- Urbana. Mr. Johnson mentioned the sustainability of funding as a threat and also noted the need to explore additional funding sources and be less reliant on state funds for research park infrastructure and operations. Tremayne Price summarized the key points made during this strategic planning session and the SWOT analysis. Executive Session At 1:40 p.m., Mr. Daly moved that the BOM adjourn to closed session to discuss confidential and proprietary information regarding Research Park tenants and potential tenants which, if disclosed, may cause competitive harm. Dr. Schiffer seconded the motion, which was unanimously approved. 6

7 Reconvention At 2:02 p.m., the BOM open session was reconvened by Chair McMillan. New Business / Old Business / Public Comment There was no public comment and no further old or new business to discuss. Adjournment It was moved by Dr. Schiffer and seconded by Dr. Dutta that the meeting be adjourned. The motion passed unanimously, and the meeting was adjourned at 2:03 p.m. Respectfully submitted, Jason A. Sweet Secretary Designee Approved October 2, 2017 by UIRP, LLC Board of Managers 7