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HomeMy WebLinkAboutItems Submitted at the Meeting r.. PROJECT/ ASCENT i 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 1 b' 1 ~ 1 PROjECT AsCENT Die ~ ' astp~ vis-ioll ZOA0 00('- Populate the Green Zone with ~ ' environmentally friendly businesses. _ _ . ;PROJECT ~ 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. I 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 I - _ - 15 . PROJECT rp Why? J 0 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 . ~ t, a ' 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 . . PROJECT : ~ WASHINGTON STATE ~ L JNIVERSITY 1. WSU Sustainability Projects: W~i C,a55. F~ce to Face. Why do we want to involve a research university? , Grant funding application enhancement ~ A Low-cost access to innovative state-of-the-art technical expertise ~ ~ a ; ~i ~ .._~,>.s': . ~ t~-y„~,;;w~.' New companies grow out of research projects -_'7."+7~ } y ~ . r► i ~ Auburn students gain appreciation for higher education i•'- Ty,-c~ 9 ~ • ~ . Projects completed: rt - ~ N F r' Green aesthetics for AEPD architecture . ~ , " ~ f.~ • I Green streets for the AEPD and the Promenade , Projects in-process: - - - - - - - - - - - - - IDeX, Integrated Design Experience g , f ~I _ - AEPD and Downtown stormwater management focus Also architecture, streets, parks, economic aspects, energy, etc. , rJ~ ~ ' i F i ~ ~ ~ E ~ , F~' . 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~ ~ . .r l ~ ~ t ^ j ' ' Business Incubator " ~ ~ ~ Entrepreneurship Class ' ~ 3 ~ ~ _ ~ P RO j E CT.' zi ' ~ 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. 7 - - - - 'e1 . PROJECT :ASCENT I~i. ' . 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 P RO ~ t. ' 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 9 JECT A P RO 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 10 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 wii_ua;• r., 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 11 PROJECTi'..1i, ~ : . 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 12 n ~ 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 ' 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 , ~ Due July 15 i 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) 14 . k i 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 15 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 ~ 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 16 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 17 AsCENT PROJECT,. ~ 4 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 18 ~