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PROJECT/ ASCENT
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Past =i,I Ornse~ d' ('l, ~ F'5..:n'Q.~ aQ'a._~'~
Special Planning Committee Meeting
June 22, 2010
C[TY OF ~
* AtfBURN-
WASHINGTON
Presented by
Deputy Mayor Sue Singer
Councilmember Rich Wagner
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PROjECT AsCENT
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Populate the Green Zone with
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environmentally friendly businesses. _ _
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AsCENT
Spring,2009 : Original Concept'
Produce green collar jobs for the Puget Sound region by connecting our research un ivcrs, itie s f.0
our private sector entrepreneurs and nurturing the emergent technologies and businesses thr-ougll
incubation services, with workforce training provided by our community college~;.
Make Auburn a major player by creating Our owr1 clean tech inc;ubator.
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ZDumrner, 200z:~
Seek "stimulus" grant fundiiig
Original Concept of Project ASCENT:
• A magnet for research, education and training
• A demonstration platform for new alternative energy products
• A job training center for emerging technologies
• A hub for interactive public education in sustainable practices
• A west side office for WSU's Institute for Sustainable Design
• An incubator for new businesses built on emerging green technology
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PROJECT
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Why?
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Support of Vision 2016 Higher quality community New opportunities in clean tech arena
New employment center New, higher paying jobs Mentoring and educational opportunities
Decreased energy costs More money in their wallets More competitive businesses
Increased tax revenue Lower storm water bills Less expensive development costs
Better educational and Visual improvement of neglected Less mitigation costs; place to learn best
economic demographics area practices
Educational opportunities Trained workforce
Increased student services More family friendly city to help attract
employees
Fun place to learn and play Increased property values
Outdoor laboratory; increased quality of life
for employees 4
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PROJECT,11611,,
The Present:
5 concu rrent projects-.
1. WSU Sustainability Projects
2. ASCENT Incubator, Phase 1
3. ACTIA partnership
4. $1million i6 Challenge Grant
5. Auburn Innovation Center with
Phase 2 of ASCENT
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PROJECT :
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WASHINGTON STATE
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1. WSU Sustainability Projects: W~i C,a55. F~ce to Face.
Why do we want to involve a research university?
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Grant funding application enhancement ~
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Low-cost access to innovative state-of-the-art technical expertise ~ ~ a ; ~i ~ .._~,>.s': . ~ t~-y„~,;;w~.'
New companies grow out of research projects
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Auburn students gain appreciation for higher education i•'-
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Projects completed:
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Green aesthetics for AEPD architecture . ~ , " ~ f.~ • I
Green streets for the AEPD and the Promenade
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Projects in-process: - - - - - - - - - - - - -
IDeX, Integrated Design Experience
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- AEPD and Downtown stormwater management focus
Also architecture, streets, parks, economic aspects, energy, etc. ,
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Other WSU connections. . ';_iK HEd
. , ~ ' F---.~ ~7rar~5ii-§3rie~tted~ Nanotechnology research ~f'~ ;~dms~y ~ 4r~~+;~-r,~<~;,,
Mixecl-use
IPZ, Innovation Partnership Zone icflmmerc+alAre~
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Business Incubator " ~ ~ ~
Entrepreneurship Class ' ~ 3 ~ ~ _
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2. Incubator ASCENT, Phase
Located in old IT space (next to Chamber) with temporary lab located
there or nearby in old Print Shop building on A St.
Charter clients:
Dr. Mathur and Dr. Lancaster, GRSNFC
Dr. Ramachandran, Thermodynamik Studies, LLC
Bryan Guy and Stacey Noland: HouseRunner
Capacity to serve many "virtual" clients located elsewhere
Also: informal west side offices of WSU Institute for Sustainable Design
Future clients: to be assessed by Advisory Board before signing
contract with city for incubation services
Cost: <$25K, including janitorial services, printing of pr materials,
incidental costs such as signs, open house refreshments,
memberships, etc. plus some staff time for pr and IT support.
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PROJECT :ASCENT
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What ciients get.
Incubation services provided by Small Business Assistance Center:
help to commercialize their products)
Mentoring by local business leaders
Limited pro bono consultant services through ACTIA
Consultants available through ACTIA at client expense
Introductions to venture capitalists and angel investors
Future access to Community Development Fund for low cost loans
Free or subsidized office space with janitorial services and IT services '
Use of Auburn Avenue Theater for presentations and lectures
Synergy with WSU and each other s
ECT As CENT
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What Auburn gets in return for office space and services:
Help with creation of Auburn Innovation Center
1. connections with other local scientists and clean tech entrepreneurs
2. connection to UW's nanotech center
3. $1,000.000 for nanotech lab from Dr. Mathur's grant
4. Up to $500,000 matching funds for grants from Dr. Mathur
Nanotech lectures for public and high school/GRCC students
Lab tours for kids, inspiring them to go to college
Changed public perception of Auburn and our future
New manufacturing companies to fill empty warehouses
Family wage JOBS
Community development in low income area
Jobs for at risk youth
Downtown business activity
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JECT A
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What'i's Nanotechnoiogy'?
• A science that is producing the jobs of the future now
• A new area of science that studies the fundamental components of matter
• The controlling of matter on an atomic and molecular scale (1I10,000th width of a hair)
• Improves existing technology for immediate use in manufacturing
• Also results in totally new types of materials with exciting promise for use in many
areas such as
• Medicine
• Solar panels
• Computer technology
• Carbon sequestration (elimination of green house gases)
• Paper and wood products
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PROJECT ;
3. ACTIA Partnership:
The AI~~~nce for C9ean Technology Incubators and AcceIerators
~j~ S C ENT
AUIiURN SC[ENTIFIC CENTER FOR
EMERGENT NEW TECHNOLOGIES
•Futui•e 11ome of The Auburn Innovation Center
•Outdoor Laboratory / Environmeirtal Park
•Niches: Enviromnental Remediation
Water Related Technologies
Nanoteclinology
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AlcheMy F A C T R Y
Clean Tech Comrfiiercialization ~ P ' ; c 1' A I ()P
•F inancial Expertise •40k+Sq ft of incubator office space
•Market Viability Analysis •25+ years experience
•Connection to Venture Capitalists •Niches: Incubator Cxpertise
•Niche: Energy Multicultural Businesscs
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PROJECTi'..1i,
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Wide supportfirom tlle coyiijnunity crnd tlze region
For- exccmple:
Private Sector: Non-Profit and Educational Sectors:
3 Phase Energy Systems Auburn Small Business Assistance Center
Cypress Venture Group Center for Urban Waters
McKinstry Chambers of Commerce
Mithun Cities of Aubuin and Tacoma
Parametrix Engineering Enterprise Seattle
Puget Sound Enei•gy Moontown Foundation
Syntrix BioSystems Green River Community College
Urban Innovations Group WA Assoc. of Sinall Business Incubators
Waste Management WSU Institute for Sustainable Design
Weyerhaeusei- WSU Puyallup Extension Research Center
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PROJECT 11.
ACTIA iNon-Profit, formed to enable collaboration of 3 types of
Alliance of Clean Technology incubators: private, non-profit 501(c)3 and municipal
Incubators and Accelerators
Functians:
: Grant Management/Reporting (outcomes, not fiscal reporting)
~ Lobbying and Fundraising Support
% Connections to private sector
~ Dispatch of consultants
Connections to venture capitalists and angel investors
Commercialization funding strategy
Advantage [o AUbUrn:
Sophisticated business incubation support for ASCENT clients from top commercialization experts
A- Regional support
y Private sector help
Networking with experienced incubators
: Client referrals
~ Increased likelihood of winning grants and getting OPM
Very ia~'w Cr.+ ;t:
~ No staff - shared responsibilities
: Directors come from each member incubator - mayor appoints rep from Auburn
Incorporated, with bylaws similar to William Factory Incubator's (copies available)
~ Any costs are shared equally among member incubators 13
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PROjECT
4. The i6 Challenge Grant
$1 million grant through Federal Economic Development Agency for creating a
collaborative and innovative approach to speeding commercialization of new
technologies
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~ Due July 15
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Recipient chosen this Fall
I' Covers 2 Years: 2011 - 2012
Would pay for development of ACTIA, Phase 1 to 2 of ASCENT, and Auburn
Innovation Center
Written by Loren Bors, Deanna Burnett-Keener, Sue Singer and Lorrie Rempher
Auburn would apply on behalf of ACTIA, GRCC and city, and be fiscal and reporting
agent (one .5 FTE accountant for Finance department included in grant request)
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5. The Aubtim Innovatioti Center
New "green" building on city property in the Environmental Park District
• Nanotechnology labs surrounded by offices for scientists
• ASCENT's home base, with staff paid through rents and lab fees
• Teleconferencing center and classrooms
• Offices for other types of clean tech start up businesses
• Offices for "graduated" companies paying market rates
• Offices for WSU's Institute for Sustainable Design
• Start of Auburn's Innovation Partnership Zone
Goal: use as catalyst for populating area with new clean tech businesses
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PROJECT vAsCENT
Funding Sources for Auburn Innovation Center & ASCENT
City of Auburn: Land, CDBG economic development funds, staff support
$1.5 million committed from private donor
Office leases
Federal and State economic development grants and IPZ funding
Private foundations like Herb Jones and Kauffman Foundations
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Center for Advanced Manufacturing - connections to
Private sector in-kind suPPort and donations ~
SBIR grants (through scientists)
Private sector unions (machinists, for example)
Community fundraisers and support from Incubator "graduates"
Investors for Community Development Company
Equity in supported companies
Increased tax revenues from new businesses and higher property values
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i.1'.~PROjECT
Timeline
Phase 1: rirsf Z years,
Establish ACTIA
Open ASCENT Phase 1
Create Innovation Center design and funding plan
File for Innovation Partnership Zone recognition
Establish Community Development Corporation (recruit investors and banks for revolving loan fund)
F'f~~ se; 2: 3rc! thi-ougf~~ 5[h
Open Auburn Innovation Center
Change ASCENT to 501(c)3 entity separate from city
IPZ recognition acquired
Using revolving loan fund assets
PhaJe 3: 5 to years oLat: fi:oial S01If :3UH'160iZcy
Innovation Center at full capacity
Leases escalating up
Equity investments paying for revolving loan fund
IPZ well established, with many new clean tech companies located nearby
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AsCENT
PROJECT,.
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Needed Now:
Consensus to move forward with Phase 1 and i6 Challenge Grant (cost: under $25k)
PCDC: Put Project ASCENT on work plan for staff support and oversight of ASCENT
Mayor:
1. Sign memo to join ACITA and appoint Deputy Mayor to ACTIA board of directors
2. Appoint ASCENT Advisory Board to report to PCDC
3. Contract with Charter clients for exchange of services, office and lab
4. Apply for CDBG economic development funds for SBDC ($50k/yr)
This Fall: Council to discuss project at retreat: what do we want to budget for project if
we don't get a planning grant? (estimated need of $100k-$150k/yr max)
Result: 100+ new Auburn jobs in the next 2 years just with Phase 1 and 16-20 new
corporate headquarters located in Auburn in next 5 years. (based on review of existing
clients' business plans and financial projections) Also includes planning for Innovation Center
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