Housing and Economic Development Proposed Business Incubator for James E. Guinn Campus (Third Building)

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Sara Floyd
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1 Housing and Economic Development Proposed Business Incubator for James E. Guinn Campus (Third Building) April 2, 2013

2 Presentation Purpose Obtain the Housing and Economic Development Committee s endorsement to move forward with plans to: 1. Develop a general business incubator at the Guinn School Complex in the recently renovated former elementary school building 2. Contract with the Fort Worth Business Assistance Center s Education Foundation, Inc. (BAC) to operate and manage the incubator using existing grants funds, including lease of the building; 2

3 General Background Presentation Overview BAC Education Foundation, Inc. and the Business Assistance Center (Public/Private Partnership) General Business Incubator Concept and Plan Funding Sources Next Steps 3

4 General Background The James E. Guinn Campus consists of three historical buildings: 1. The former Middle School Building: now renovated and serving as the Business Assistance Center. 2. The former Industrial Arts and Gymnasium Building: now renovated and serving as Tech Fort Worth. 3. The former Elementary School Building: now nearing completion of renovations and is proposed as a general business incubator with a focus on job creation. 4

5 James E. Guinn Campus Partners Tarrant Small Business Development Center City of Fort Worth BAC Component M/WBE Office Fort Worth Metropolitan Black Chamber of Commerce William Mann Community Development Corporation James E. Guinn Campus Complex Alliance Lending Corporation Southeast Fort Worth, Inc. SCORE BAC Board Proposed New General Business Incubator Tech Fort Worth 5

6 James E. Guinn Campus Tech FW (Industrial Arts and Gymnasium) Rosedale Proposed Incubator (Elementary School) I-35 Service Road Business Assistance Center (Middle 6 School)

7 James E. Guinn Campus 7

8 Elementary School Building 8

9 Presentation Overview The BAC is part of the Housing and Economic Development Department, but maintains a non-profit component called the BAC Education Foundation, Inc. (the Foundation) which has a Board of Directors and supports the City in producing educational programs and counseling for small, minority and women-owned business The Foundation s non-profit status allows it to seek and obtain corporate sponsorships to support the mission of the BAC and the City. The Foundation conducts monthly Board meetings, in addition to regular meetings of four distinct committees, including an Incubator Committee. The Foundation represents a public/private partnership between the City and the private sector as reflected by the composition of its Board of Directors. 9

10 Presentation Overview The BAC Education Foundation, Inc. s Board of Directors Lucas Sawyer (Chair) Worthington National Bank Gwen Barbee Color Me Beautiful (small business) Jeremy Dean Omni American Bank William Giron FWISD Ed Herrera Alcon Bennibi Lao BNSF Jason Putnam First American Payment Systems Marc Richards CBIZ Valuation Group, LLC Ed Riefenstahl Director, TCU Neeley School of Business and Founder, The Alternative Board of Greater Fort Worth (TAB) Alberto Rios Chase Bank Jim Tanksley Lockheed Tamela Thornton ESmith Legacy (private business) 10

11 Business Incubator Concept and Plan Business incubators significantly increase the probability of business survival, stability and success. Tech Fort Worth serves as a successful business incubator focused on technology-based businesses. A general business incubator can provide a similar role for businesses that are outside of the technology market. The Foundation provides an excellent mechanism to manage and operate a general business incubator. 11

12 Business Incubator Concept and Plan The Foundation advantages: Existing relationship with the City; Already focused on business education, counseling and assistance; Brings considerable knowledge, expertise, experience, resources and focus; Can leverage limited City grant operating funds by seeking and obtaining private sector sponsorships, other grants and developing additional revenue streams Excellent opportunity for a public-private partnership 12

its Board of Directors, an Incubator Committee.

13 Presentation Overview General Business Incubator Concept and Plan The Foundation with support and input from the City has established, through its Board of Directors, an Incubator Committee. The Incubator Committee is developing plans for the use of the building. First Floor Second Floor 13

14 Business Incubator Concept and Plan The Foundation s plan includes (open by Fall 2013): Outreach to stakeholder groups for input; Hiring a manager to operate the incubator; Developing incubator entrance and exit criteria, with job creation being the key factor; Selection of an incubator anchor tenant to provide mentoring and support to other start-up tenants; Pursuit of private sector sponsorships, additional grants and other potential revenue/funding streams; Naming and marketing the incubator; and Hosting formal Open Houses and a Grand Opening. 14

15 Funding for the Project The BAC is funded through an agreement with the University of North Texas Health Science Center (UNTHSC) utilizing a state grant for joint economic development/job creation and technology commercialization activities between UNTHSC, Tech Fort Worth and the City of Fort Worth. The annual BAC budget is approximately $350,000, but received an allocation of $450,000 for FY2013 in anticipation of the opening of the third building. It is proposed that the additional $100,000 in FY 2013 be used to contract with the Foundation for operation of the incubator program City staff will manage the contract and be responsible for the maintenance and upkeep of the physical building. 15

16 Next Steps Staff will prepare M&Cs to be considered on April 23 rd to: Authorize staff to enter into a three year contract, with three one year extensions, for $100,000 annually with the BAC Education Foundation, Inc. to manage, operate and cover initial costs of the general business incubator at the former elementary school as long as grant funds are available. Authorize execution of a lease agreement with the BAC Education Foundation, Inc. to lease the former elementary building at the James Guinn School Campus to run concurrent with operating contract 16

17 Questions? 17

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