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South Bozeman Technology District Comprehensive Development Plan
South Bozeman Technolo.av District Comprehensive Development Plan Table of Contents Introduction................................................................. ............................... Page 4 Location........................................................................ ............................... Page 5 History.......................................................................... ............................... Page 5 Whatis a Technology Park? ...................................................... ............................... Page 6 MontanaState University ............................................ ............................... Page 8 Why a Technology Park Was Constructed At The Current Site ............... Page 9 GlobalCompetitiveness ............................................... ............................... Page 10 The MSU Innovation Campus Property (Current Site) ............................ Page 11 DevelopmentEconomics ............................................ ............................... Page 11 Market Opportunity and Proximity Advantage ........ ............................... Page 12 Montana State University Innovation Campus - 1986 to Current Day. Page 13 Task Force and On -Site Visit of AURP Professionals . ............................... Page 14 Objectives For Expanding the MSU Innovation Campus Site .................. Page 14 Planning For the Future and Enhancing Economic Benefits ................... Page 14 New Mission and Vision for the Montana State University InnovationCampus .................. ............................... .Y. ............................... Page 15 CoreValues .................................................................. ............................... Page 16 Goal............................................................................... ............................... Page 16 MSU Innovation Campus Expansion Pl ans ............... ............................... Page 17 Implementation Strategies ......................................... ............................... Page 22 MSU Innovation Campus Target Markets .................. ............................... Page 22 Positioning the MSU Innovation Campus .................. ............................... Page 23 Guiding Principles for Expansion of the MSU Innovation Campus........ Page 23 -z- Factors Critical to Success of the Montana State University Innovation Campus........................................................................ ............................... Page 26 Additional Critical Points ............................................ ............................... Page 28 In Addition, Several Observations ............................................................ Page 29 Sustainabiligr............................................................... ............................... Page 29 Conclusion.................................................................... ............................... Page 30 Documents also Included in Plan• Covenants, Conditions & Restrictions (Exhibit A) .... ............................... Page 31 Architectural Guidelines (Exhibit B) .......................................................... Page 49 Site & Landscape Guidelines (Exhibit C) ......................................... I ... ...... Page 56 City of Bozeman Plan, Unified Development Code, And Economic Development Plan (Exhibit D) ..................................... ............................... Page 64 2010 MSU Economic Impact Report (Exhibit E) ........ ............................... Page 75 TIFMap (Exhibit F) ...................................................... ............................... Page111 Legal Description (Exhibit G) .............................. ............................... Page112 -113 Proposed TIF City Map (Exhibit H) .......................... ............................... Page 114 - 3 - South Bozeman Technology District Comprehensive Development Plan Introduction As the leading research and technology park in Montana, the ?vlontana State University Innovation Campus provides a place where people and ideas come together; an environment that assists and supports start -up companies and new ideas; provides state - of -the -art facilities for small, medium, large, and well - established companies to locate and prosper; a place where Montana State University faculty, researchers, and scientists work with private and government researchers and scientists to push forward cutting -edge science and advance technologies; a place where students gain hands -on real -world learning experiences that result in employment opportunities upon graduation; a high -tech research park where companies are our business, and our partners, and collaboration with Montana State University is a daily occurrence. Located on approximately 25 developed acres adjacent to Montana State University, the Innovation Campus provides services, facilities, programs and expertise to stimulate and support the growth of research and technology -based enterprises. Plans have begun to triple the size of the current 25 acres and expand the Innovation Campus to over 75 acres. To ensure efficiency in the use of land within the District, and the capacity of public infrastructure, the MSU Innovation Campus will seek to provide for an appropriate mix of R &D activities, commercial, and light - manufacturing development to guide such development to appropriate areas of the land identified for expansion, The Innovation Campus provides walkways, jogging, and biking trails. As the Innovation Campus develops, expansion will include open green spaces, water features, as well as a partnership to support further development of retail contiguous to the west side of the Innovation Campus, known as the "Mitchell Development Gateway Project ". Innovation Campus companies and their employees will enjoy many services and benefits as our Business Partner. These will include, justto name a few: • Class A office and lab facilities • Executive Conference rooms, 'Think Tanks', and high -tech Conference facilities • Discount programs and services • State -of -the -art high -speed data and telephone services • Special discount programs for office furniture, supplies, lab furnishings and chemicals • Incubation space, to include support services and counseling • Access to services at the campus library http://vvw%N,.UbmDntana.edu • Student assistantships and internship programs —4— Seminars by Montana State University and visiting scientists and scholars Technology Transfer assistance with intellectual property and patent issues, licensing, and coordination of resources with the private sector Use of Montana State University facilities and specialized equipment The Innovation Campus provides 'the place' for the creative and daring to push the entrepreneurial spirit to new heights; to take new ideas from concept to reality; and for pioneering researchers and scientists to expand research opportunities and create cutting - edge technologies that will change the world. Location The Innovation Campus is located in Bozeman, Montana, a place well known for its beautiful landscape, pristine surroundings, and outstanding quality of life. Bozeman has a comfortable climate, four magnificent seasons, recreational and entertainment opportunities, with fantastic dining and culture experiences. Simply put, Bozeman is an outdoor enthusiast's playground of year -round activities, cuisine, music, and art festivals. In addition, Bozeman offers a highly educated population of 40,000 residents with more than 49% of the community holding undergraduate and higher degrees. History In 1986, Montana State University, under the leadership of President Bill Tietz, requested Montana State University Foundation develop and manage the first and only university - related research park in Bozeman, Montana, known as the Advanced Technology Park (ATP). Montana State University Foundation obtained property upon which the Advanced Technology Park was developed. In that same year, engineering services and installation of infrastructure was completed. In 1988, the first building known as the Nopper Building was completed. Over the subsequent 10 years, 12 additional buildings were constructed. As of January 1, 2012, there are more than 35 businesses and research groups housed in the Advanced Technology Park employing more than 200 people. Approximately 46% of those employed are Montana State University graduates. In addition, more than a dozen start -up companies originated in the Advanced Technology Park between 1988 and 2008. In November of 2011, the Advanced Technology Inc. (AT]) Board received approval from the Foundation Board of Governors to hire the first Executive Director to oversee full operation of ATI, the for - profit corporation responsible for the oversight of the Advanced Technology Park. Teresa McKnight, a 20+ year veteran of university- related research parks, consultant, and member of the Association of University Research Parks Board of Directors was hired to fill this position. McKnight was hired to push forward the redevelopment and expansion of the Advanced Technology Park, now referred to as the Montana State University Innovation Campus, In July of 2012, the MSU Innovation Campus received 501(c)(3) non - profit exemption status. —5 What is a Technology Park? A Technology Park (also referred to as a Science or Research Park) is a physical place that contains contiguous acreage manager] by specialized professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge -based research institutions. Technology Parks stimulate and manage the flow of knowledge and technology amongst universities, R &D institutions, companies and markets; it facilitates the creation and growth of innovation -based companies through incubation and spin -off processes: and provides other value -added services together with high quality space and facilities. Technology Parks create an environment that fosters collaboration and innovation and promotes development, transfer and commercialization of technology by providing a location in which researchers and companies operate in close proximity. Technology Parks have emerged as strong sources of entrepreneurship, talent, and economic competitiveness for regions, states, and nations. They have become a key element in the infrastructure supporting the growth of today's knowledge economy. Research Park Concept (information provided by Association of university Research Parks (AURP)]: • Research Partners • Flow of Talent • Exchange of Ideas • Access to Labs and Specialized Equipment Research Parks Communities Generating Innovation, Technology, And Knowledge Growth of Commercialization Existing Creation of New of Intellectual Companies Companies Property Generation of Jobs and income —6— • Nearly 800 firms graduated from park incubators in the past 5 years • About one- quarter of these graduates remain in the park • Only 13 percent failed • Less than 10 percent left the region Note: Information provided by AURP. 7— Typical Tech Science and Research Park Size 114 acres • 6 buildings • 314,400 sq. ft. of space, 95% occupied • Only 30x/0 of total estimated sq. ft. at build -out currently developed • 30,000 sq. ft. of incubator space Location • Suburban community • Less than 500,000 population Governance . Operated by the university or university - affiliated nonprofit Tenants • 72% are for -profit companies • 14% are university facilities • 5% are governmental agencies Employment • Typical park employs 750 Major industry sectors, IT, drugs and pharmaceuticals, and scientific and engineering service providers Finances • Less than $1 million per year operating budget • Revenues primarily from park operations but funds also come from universities and state, local, and federal government • Limited or no profitability; 7S% of the parks have no retained earnings or retained earnings of less than 10% Services Provide a range of business and commercialization assistance services, including: - Help in accessing state and other public programs - Linking to or providing sources of capital - Business planning - Marketing and sales strategy advice - Technology and market assessment • Nearly 800 firms graduated from park incubators in the past 5 years • About one- quarter of these graduates remain in the park • Only 13 percent failed • Less than 10 percent left the region Note: Information provided by AURP. 7— Montana State University Montana State University has grown into a comprehensive university with 1,014 full -time Faculty, 14,153 students and over $110 million in externally sponsored research conducted annually. With its roots in the land -grant tradition of research in the agricultural and engineering sciences. Its research strengths include: • Agricultural biotechnology; • Laser /optical engineering; • Infectious diseases; • Life in extreme environments; • Engineering and applied science, including environmental engineering; • Molecular and cellular biology; and • Math and physical sciences, including surface science, advanced materials and lasers /optical materials. I . t.6 I i tlJ Montana State University has extensive facilities and equipment available on a contractual basis to MSU Innovation Campus tenants. Facilities and equipment include: • Animal Resources Center http://www.montana.edu /wwM�a3•c/ • CBE Microscopy Facility http; / /cores montana edu /' ex ,phn age— microscnnv • Department of Chemistry & Biochemistry Facilities /Instrumentation fLttp://www.chemist�.,.montana,edu /facilitiest • imaging and Chemical Analysis Laboratory (1CAL) http:Ilwww.physics.montana.edui_ical/home/index.asp • Magnetic Resonance Laboratory httl2 :liwww.coe.montana.edu /mrrn/ • Plant Growth Center http: / jae.montana.edLi./ lantgrowtv • Spatial Sciences Center http,/ /ssc.montana edu/, • Subzero Science and Engineering Research Facility http: / /wvvw coe montana edul/subzero/ • Transportation and ITS Laboratory http:/ /www.coe.montana.eWfie /research jabs html • Research Core Facilities http: / /cores.montana.edu • DepartmentaI /Center -based Research Resources http:,/ /cores montana edu /index nhp3 e— departmental- center hasgd Montana State University has several other assets important to small businesses such as: -8- • The Montana Manufacturing Extension Center (MMEC) for manufacturing assistance and prototype development (companies must meet eligibility requirements to receive assistance); • A TechLink Center to find NASA and Department of Defense (DoD) technologies that private companies can commercialize; and • Small Business Institute for student assistance to small businesses. • Additional assistance is provided on a case -by -case basis through the MSU Innovation Campus in partnership with Montana State University. Why a Technology Park Was Constructed at the Current Site Since its founding, Bozeman has been an entrepreneurial city led by visionaries. Based on a recent report published by the Kauffman Foundation, the report highlights the rate of entrepreneurial activity in Montana reaching its highest level in at least 15 years in 2010, and Montana ranks as the nation's second most entrepreneurial state. The Kauffman Foundation calculated Montana's entrepreneurship index at .47 percent, which means that Montana has 470 entrepreneurs per 100,000 in population. That compares to a national rate of .34 percent. A technology park - or in this case the MSU Innovation Campus - provides "the place" for university, local, regional in -state and out -of -state entrepreneurs to further and enhance their ideas, research and technology. Bozeman is a "hot spot" for entrepreneurs, and with the growth of Bozeman's innovative businesses in industries such as software development and support, photonics, lasers, photovoltaics, pharmaceutical, and bin -tech, as well as MSU's increase in research, the MSU Innovation Campus is well- suited for entrepreneurs and the transfer of technology to merge together in one physical Iocation. Executed correctly, technology parks provide high - impact economic effects on communities, regions, and states in which they are developed. Several factors were weighed in developing the MSU Innovation Campus: 1) Public /Private partnerships between business, industry, government and MSU 2) Internships, assistantships, part -time and full -time opportunities for MSU students 3) High - tech /high - paying jobs 4) Global competitiveness for Bozeman, Gallatin County, and the State of Montana S) Economic benefits for the community The MSII Innovation Campus offers high -tech employment opportunities and provides a convergence for economic activity giving hope for an increased standard of living in Bozeman and the Gallatin County. The MSU Innovation Campus provides the physical location, buildings, services and amenities for people who build, operate, study, research, develop, produce, and enhance new discoveries. The MSU Innovation Campus not only provides the place for highly skilled, high - paying jobs, but the Innovation Campus also creates high skilled, high - paying jobs that spur 9— employment even beyond the research park itself. According to a study by Battelle, a nonprofit technology development and laboratory management company, under the auspices of the Association of the University Research Parks (AURP), each tech park creates direct jobs across select industries and geographies, which in turn creates 1.5 additional ( "indirect") jobs in the surrounding economy. What's more, while many of the direct employment opportunities at a tech park would likely be knowledge- based, high skilled jobs, many others would likely require basic skills. As well, many quality jobs would likely be created outside the park to support both tenant companies and their employees. The additional impact is dramatic. Global Competitiveness Recognizing that a capacity to innovate and commercialize new high - technology products is increasingly a part of the international competition for economic leadership. Governments around the world are taking active steps to strengthen their national innovation systems. These steps underscore the belief that the rising costs and risks associated with new potentially high - pay -off technologies, and the growing global distribution of technical expertise, require national R&D programs to support new and existing high - technology firms within their borders. They also reflect the belief that shared facilities, coupled with geographical proximity next to a research university, can facilitate the transition of ideas from universities and laboratories to private markets. Expansion of the MSU Innovation Campus would enhance Bozeman's position in a global economy where cities increasingly compete for emerging tech businesses and associated talent. National governments have identified technology parks as one way to compete for companies and jobs, and consequently are investing heavily in tech parks - big and small. With a leading academic research institution located in Bozeman, established and growing tech clusters in software development and support, photonics, lasers, photovoltaics, pharmaceuticals, and bio -tech, as well as growing a diversified economic base, Bozeman is already in this race. Expanding a best -in -class R &D campus - the MSU Innovation Campus - will provide a new focus for the collaboration and network economics that make for success in this environment. _tc- The MSU Innovation Campus Pro er , [Current Site) The existing site of the MSU Innovation Campus is located on approximately 25 acres in close proximity to Montana State University. It is bordered by 19th Street to the east, College Street to the north, Garfield Street to the south, and 261h Street to the west, Currently, there are 15 buildings containing more than 200,000 square feet of office, dry and wet lab space (current-25-acre site highlighted in blue below), To the west of the current site lies approximately 45 acres of land (areas highlighted in yellow above) owned by Advanced Technology Inc. to support the expansion of the MSU Innovation Campus. The current site provides infrastructure including roadways (Technology Boulevard and Research Drive), curb, gutter, sidewalks, walking and biking trails, electricity, natural gas, sewer and water, telephone, copper and fiber to the existing 25 developed acres, Additional infrastructure will be installed to expand the MSU innovation Campus to the west on approximately 45 acres of land. Development Economics Rents, royalties, taxes and appreciation in land value are commonly used to recapture initial site acquisition and development costs. With development costs for the MSU 11- Innovation Campus, careful consideration has been given to the uses and users that will be attracted, and the resources and infrastructure that justify at and above market rents. Technology companies are often such tenants. They benefit from the collaborative opportunities provided by a concentration and clustering of similar businesses. These companies also generally require specialized facilities such as reinforced floors and high ceilings, specialized electrical supply, and elaborate ventilation and cooling systems. Such facilities, though expensive to create, are able to command premium rents. Market Opportunity and Proximity Advantage Like most other successful tech park locations, the site of the MSU Innovation Campus benefits from its proximity to a renowned research university -- Montana State University - and easy access to other institutions such as Gallatin College, University of Montana, and Montana Tech. Furthermore, Bozeman is experiencing growth in technology start -ups such as LigoCyte, Right Now Technologies (recently acquired by Oracle), Bacterin, Bridger Photonics, and many others. The city is already home to high -tech concentrations in industries such as bio -tech, pharmaceutical, photonics, photovoltaies, life sciences and information technologies. In addition, the region's leadership in science and research has been helpful in attracting a diverse base of corporate R &D labs to the Bozeman area. Proximity to other tech companies and other labs offers potential opportunities for collaboration, commercialization, spin -offs and growth of new and existing technologies. Another important distinction of the MSU Innovation Campus site is its proximity to high - bandwidth fiber lines intersecting 3 major providers in the area (Sprint, Century Link (formerly known as Qwest) and Montana Opticom. Even at the speed of )ight, distance matters. As with the internet, cloud computing and data - intensive applications have become even more central to the daily lives of companies and individuals. The central location of the MSU Innovation Campus provides an important advantage and connectivity to a major IT gateway, as well as a newly constructed data center located at Four Corners (5 miles from the Innovation Campus). New companies creating information technology products and services, and seeking to be close to large -scale server and bandwidth infrastructure, will find the MSU Innovation Campus site has the ability to give them the edge they need to succeed in the global economy. M-FAW Montana State University Innovation C ampus - 1986 to Current Day * In 1986, Montana State University requests Montana State University Foundation develop and manage the Advanced Technology Park (ATP). In 1987, Construction begins on first building - the Nopper Technology Building. * Between the period of 1992 and 2003 (11- years) - 12 additional buildings were constructed on the Advanced Technology Park. * In 2006, 50 businesses were located in the Advanced Technology Park employing more than 400 people, of which approximately 42% were MSU graduates. Today, there are more than 35 businesses located in the Advanced Technology Park employing over 250 employees with 45% being MSU graduates. * More than two dozen start -up companies were established in the Advanced Technology Park. * Currently, there are 68 MSU undergraduate and graduate students employed at the Advanced Technology Park. * In addition, we have companies collaborating together within the research park, as well as collaborating with MSU Faculty, Researchers and Students. ^-13— Task Force and On -Site Visit of AURP Professionals In 2010, the Advanced Technology Inc. Board of Directors formed a Task Force to assess the operations of the Advanced Technology Park and determine the future needs of the Advanced Technology Park on the current 25 -acre site. In addition, the Advanced Technology Inc. Board of Directors held an on -site forum in December of 2010, which several AURP Professionals provided presentations in order for the Board of Directors, local business leaders, city, county and state leadership to better understand the necessary steps and strategic planning required to expand the MSU Innovation Campus at the current site. The conclusion derived by the Task Force, AURP Professionals, University officials, as welt as local and state leadership, was the MSU innovation Campus is well positioned to expand the tech park in its current location with a new vision of creating a `21 St Century Research Park'. All parties understand the decision to push expansion efforts forward would surely be challenging, requiring sound planning, visionary champions, skilled leadership and most importantly, collaboration between the public (City, County, and State), Montana State University Foundation, Montana State University, corporations, civic and business leaders. In addition, all parties understood one important factor would be patience. Leadership concluded expansion of the tech park at this site has a potential to transform not just the city, but also the county, entire region, and State of Montana. Objectives For Expanding the MSU Innovation Campus Site Building on Bozeman's reputation as a high -tech community, a hotbed for entrepreneurs and an emerging technology hub, expansion of the MSU Innovation Campus is to achieve several goals for Bozeman, Gallatin County, the region, and the State of Montana: 1. Create more high -tech jobs that require a wide range of research and technical skills, as well as education levels. 2. Attract more established companies, and foster creation of new companies in emerging business sectors, as well as retain and build on existing sectors. 3. Attract more individual and institutional investors to support these companies. 4. Foster more economic development opportunities. 5. Generate a positive impact (direct and indirect) on the University, City, County, Region and State. Planning For The Future and Enhancing Economic Benefits Business and industry make a positive contribution to the fiscal health of a community both by creating jobs for the residents and by contributing local tax revenues that exceed the cost of providing public services to such development. -14- In order to avoid excessive reliance on a single sector of the economy, a focus on attracting high -tech R &D activities will increase well- paying job opportunities for the City and Gallatin County's highly qualified labor force and MSU graduates, Creating high -tech jobs will make it easier for people to both live and work in the City and Gallatin County. in this regard, the mixed -use development concept with office, lab, and light manufacturing is an important tool that has great potential in Bozeman. The physical and functional integration of a single compact, comprehensively planned development creates opportunities for people to live, work, and expand opportunities that are close to their neighborhoods with minimal travel by car, bus, or bicycle. Clearly, the competition for high -wage businesses in Montana will be keen. Moreover, in today's global marketplace, Bozeman must realize that competition for economic development is not just local or even statewide: rather, it is national and worldwide. New Mission and lisiion for the Montana State Universitv innovation Campus The Mission of the Montana State University Innovation Campus is: • To promote economic development and support partnerships between regional, national, and international high tech -based businesses and the research community of Montana State, the region, and the State of Montana. • To create a world -class research park to promote academic and industry collaboration to advance research and scientific discoveries with Montana State University Faculty and Students that will maximize the academic talent and regional resources of Montana State University, the region, and the State of Montana. • To promote learning and collaboration in support of scientific research, new discoveries, and inventions to further the coin mercialization of Montana State University's intellectual assets and technology transfer, • To provide state -of -the -art facilities, programs, services, and amenities to support the growth and success of technology -based businesses. • To provide 'the place" to link academic, private, and governmental researchers and scientists to advance new discoveries in support of the Citizens within the State of Montana, the nation, and the world. The Vision of the Montana State University Innovation Campus is: To be recognized as the'the place' that provides a unique community to connect people and support public private partnerships to stimulate new ideas, push forward the advancement of research and science, and produce new discoveries and technologies that will transform the world. Mls- Core Values The Montana State University Innovation Campus will pursue its vision within an environment that fosters teamwork, innovation, an entrepreneurial spirit, and the understanding that knowledge generates economic growth and enhances the quality of life. The MSU Innovation Campus is committed to: People Human talent is the primary resource and fundamental contribution to society. The Montana State University Innovation Campus is committed to providing facilities, resources, programs, support, and services to create opportunities]or individuals to realize their full potential to push forward new discoveries and technologies in advancing research and science. Synergy Partnerships and collaboration is the powerhouse for research to move forward and push science to new freights, The Montana State University Innovation Campus is the epicenter to bring academic, private, andgovernmental researchers and scientists together in one physical location to promote academic and industry collaboration and further the commercialization of Montana State University's intellectual assets and technology transfer. Advancement The highest levels of performance are measured against regional, national and global standards and understanding knowledge generates economic growth and new discoveries enhance the quality of life and transform the world. The Innovation Campus will continue to provide state-of-the-facilities and provide the maximum level ofservices, amenities, and support in order for knowledge and science to advance and collaboration efforts to succeed. Goal Build a healthy and diverse high -tech economic base that provides high- paying jobs and generates revenue to pay for service needs without degrading the natural resources or the overall quality of life. -16- 19th Street i rI 1 Aa 1 r Y L r its 4 L� loft 0 mom Q) L �i U a w V) Q LiQ O r Vf y O u L v � Y cs C 13 R u S � � •C u m � N y� v rt teI M .+ O "�" 'O n u u t h C> �' y C cw %D 4N ;a M O O N O he F a� p C .G�' 'S A 'C � v' O b O m Z- P 0) .� w i Z fq C 0 33+ w '° r o .a u E b $ b u z M S` y y c w 6. S cu O i ., R.. 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Develop the MSU Innovation Campus with primary emphasis on improving vehicular access, innovative building design both interior and exterior, use of land, conservative sewer, water, and storm water management, as well as a redundant fiber backbone and state -of -the -art telecommunication facilities. 2. Assist start -up and existing businesses with retention and /or expansion. 3. Continue to require innovative landscape design and, to the extent practical, the preservation of existing trees and vegetation. 4. Provide opportunities for the mixing and integration of different types of uses - both business and light manufacturing under a well- designed master plan. S. Amend the Zoning Ordinance for high -tech and mixed -use development that allows the integration of different types of activities with businesses within a pedestrian - oriented development under a coherent overall master plan 6. Promote use and development of blighted properties in highly visible locations by working with land owners, purchasing properties, demolishing existing structures, and improving the sites. 7. Actively work with regional entities, Montana State University and Gallatin College to develop and promote regional strategies and plans that will benefit the economic well -being of Montana State University, City of Bozeman and Gallatin County. 8. Foster mutual communication and cooperation with City and County government, university, business, surrounding communities, and the State of Montana. 9. Public improvements for the good of the community. 10. Transform and expand the site into a world -class technology park to elevate the MSU Innovation Campus into a globally competitive high -tech community while at the same time contributing to the growth and economic prosperity of Montana State University, the city of Bozeman, County of Gallatin, and State of Montana. MStJ Innovation Camptis TarjPet Markets Technology Companies • Information Technology, Data Centers, other Software, Hardware, and Data Intense Businesses • Life Sciences and Health Care • Pharmaceutical • Bio -fuels and Alternative Energy • Bio -films • Nanotechnology • Photonics, Lasers, Optical and Photovoltaics • Agricultural biotechnology; 22 • Infectious diseases; • Ecosystems, Surface Science and Extreme Environments • Engineering, Applied Science and Environmental Engineering; • Molecular and Cellular Biology • Service - Web design, Graphic design, Internet, Legal, Accounting and Human Resources Positioning the MSU Innovation Came • Recognized as the "Hot- Spot" and best location for companies to locate and the most efficient and effective place to innovate • Recognized as the "Hub" for talented people, cutting edge companies, and R &D community bustling with new innovation • Recognized for its "cutting- edge" infrastructure • Recognized as a "vibrant" place to attract a dynamic 24/7 population looking to work, live, learn and play • A "Hot" location for all generations of people to live, to work, and to innovate Guiding Prindples for Expansion of the MSU Innovation Campus Expansion of the MSU Innovation Campus will strive to: a. Strengthen Bozeman's position as a premier, globally competitive, high -tech place b. Create a world -class showcase for business and entrepreneurship c. Provide job opportunities for neighborhood residents as well as the region as a whole d. Foster continued economic development in the city, the county, the region, and the State 2. Expansion of the MSU Innovation Campus will support public /private partnership that provides a net return to all investors and stakeholders: a. Government (City of Bozeman, County of Gallatin, and State of Montana) b. Montana State University and Gallatin College c. Business (developers and corporate tenants) d. Civic (private foundations, community leaders) 3. Expansion of the MSU Innovation Campus will benefit the welfare of all: a. Investors & Stakeholders i. Montana State University ii. Gallatin College iii. Private Entities 23 iv. Government V. The Bozeman and Gallatin Community b. Tenants will be a diversified tenant base of multiple independent tenants: i. R &D Companies (i.e. small, medium, large, and well- established high -tech companies and ancillary businesses to support them) fl. Non -profit research centers iii. Centers of Excellence iv. Light - Manufacturing V. Start -up Companies vi. Service Providers (web - design, graphics, HR, Accounting, Legal, etc.) c. Public /Private and Governmental Partnerships 4. Expansion of the MSU Innovation Campus will support community: a. Embrace the rich cultural history of the community b. A multi -use development, including office, laboratories, data center(s), light - manufacturing facilities, and potential retail, hotel, conference center, and restaurants c. Open space provided for both MSU Innovation Campus companies and surrounding neighbors d. Streets within the tech park should connect with surrounding city streets e. Be the "high- tech" landmark in the City along with retail, etc. f. Residential development must include affordable housing in the mix 5. Expansion of the MSU Innovation Campus will be developed as a city of innovation and leadership a. Daring in its aspirations b. Confident in its design c. Vibrant and compelling as a place to work, live, learn and play d. Provide synergy among its companies and the surrounding community e. Showcase cutting -edge green tech ( "sustainability to design ") as a statement of possibility, as well as demonstrate economic viability 6. Expansion of the MSU Innovation Campus will be a long -term initiative (15+ years) a. It will likely take at least a decade or two to fully develop the property b. The economics will be both challenging and fruitful, due to the cost of necessary infrastructure and investment made to construct state -of- the -art facilities c. The competition among cities and nations for companies and new technologies will continue to be fierce d. Though the vision will evolve over time, the past and current vision will sustain the development 24 7. Expansion of the MSU Innovation Campus will be deliberative, open and transparent a. The ultimate development will be led by the MSU Innovation Campus and the MSU Alumni Foundation as determined best to achieve the desired outcome and leadership role throughout its development Benefits - Direct and Indirect: Benefits to Montana State University: O Increase in research grants and sponsored research opportunities o Opportunities to work with private sector to solve "Real World" problems o Collaborate with industry experts o State -of- the -art facilities - unique architecture both interior and exterior Opportunities for faculty consulting, recruiting and retention o Internship and career opportunities for students 2. Benefits to Bozeman, Gallatin County, Region and State of Montana: a. Direct Benefits o Provide a mix of quality jobs (functions and skills) ■ Working in the park (permanent jobs, with opportunity for growth and career development) Provide new amenities and infrastructure (amenities improved street grid, utilities, etc.) • Transportation • Linkage to Loop central business district • Linkage to Montana State University and Gallatin College • Linkage to restaurants and retail • Linkage to surrounding neighborhoods and housing • Attract commercial development • Retail • Dining • Entertainment ■ Hotel /Conference Center ■ Parkin; • Attract new residents to the area b. Indirect benefits There will be a "ripple effect" on the community from the development of the MSU Innovation Campus - development will enhance the caliber, size and reach of those ripples o Area jobs servicing employees and companies located on the MSU Innovation Campus 25 o "Critical Mass" and cluster of high -tech R &D companies, services and amenities in and around the MSU Innovation Campus * Support for schools through collaboration with MSU Innovation Campus companies - increasing entrepreneurial K -12 activities and STEM - focused (science, technology, engineering and math) schools that could provide alternative educational options 3. Benefits to the City, County and State, a. Solidify Bozeman as a global technology city b. Develop a world -class 21st Century Research Park c. Attract tech companies, established and start -up, to the region, thereby creating jobs throughout the area d. Create an option for high -gro A th tech companies to remain, expand and prosper in the city e. Attract additional risk capital (investment and investors) to the region f. Help retain top rated science, technology, and research talent in the region g. Provide a living laboratory for cutting -edge sustainability development h. Create an environment for technology companies to seed, take root and make a home in Bozeman, the region, and the state i. Tap into the commercial potential of private and federal dollars invested in research Factors Critical To Success of the Montana State University Innovation Campus The first factor necessary for the successful development of the MSU innovation Campus is capital. On the other hand, capital is necessary, but not sufficient for success. Of equal importance is a long -term perspective and ample patience. Tech parks take years to progress from concept to critical mass. Some of the most notable parks took a decade, if not decades, to emerge to success. Often, tech parks that identify and secure one or more anchor tenants can reduce the time to as few as 10 years. In March 2008, the National Research Council convened a conference on best practices among science and technology parks around the world. The symposium identified six best practices: • One or more committed champions. NO That is, an individual or individuals who possess both the dedication, energy, and to a significant extent, the power and influence to get a project off the ground and see it through to completion. Effective leadership with the capabilities and resources to create and nurture networking and collaboration among the residents of the park is critical. Furthermore, a dynamic, capable leader can attract entrepreneurs, capital investors and other necessary people to the broader network structure of the park. Funding, both public and private, to support development of the tech park as well as provide risk capital for innovation and commercialization of ideas. o The most successful tech parks generally operate in a rich environment of stable access to venture capital for new companies, as well as private equity and debt financing vehicles for more established firms. • Bridging Institutions or other long -term governance mechanism to maintain and continuously develop the tech park's vision. • Soft Infrastructure, which includes the human factors that create and maintain the talent pool necessary to fuel innovation and help companies to grow. Soft infrastructure includes housing options, educational systems, and lifestyle amenities among others. Metrics or measures to allow for proper evaluation of the performance and contribution of the tech park in light of the commitments of investors, governments and the community. Another study prepared by Battelle in 2007 identified several important features and trends in the development of current tech parks. The study notes that research /tech parks have evolved from the early 1960's stand -alone model to a form that is today much more integrated into their communities. These parks tend to be master planned developments with a mix of academic, industrial, commercial and residential structures. Because people work, live and play in these integrated communities, on -site amenities must be provided commensurate with the demands of the park tenants and residents. The Battelle study notes several challenges that must also be addressed, including facilitating relationships - cultural and commercial - between business and universities. As well, it is necessary to address the challenges of commercialization inherent in bringing any new product idea to market, 27 Additional Critical Points: • University affiliations. o While virtually every tech park is linked to at least one university, having the collaboration of several institutions significantly increases the likelihood of viability. • Anchor tenants help create the critical mass, and cash flow, necessary to carry a park from concept to reality (and serve as a powerful magnet for start -ups and talent). • Industry clusters attract tenants, and new companies spinoff from existing firms. o Clusters become virtuous circles, the more pronounced they become the strong they attract other like businesses. o Early incentives to attract anchor tenants can build important momentum in establishing clusters. • Hard infrastructure o Data bandwidth o Electrical capacity and redundancy o Lab space o Office space o Light - manufacturing space o Transportation access (including bus, car and bicycle) o Security o Dining (convenience and better quality establishments) o Hotel /Conference facilities • Price competitiveness Taxes /Incentives Rents o Labor Indirect costs • Flexibility Q Building uses o Floor plans Lease options o Flex construction 28 Proximity to o Affordable and attractive housing Transportation options Restaurants, Night life, Culture o Quality -of-life activities Round the clock life style opportunities c 24/7 accessibility Security Its addition, Several Observations • It is important to note that virtually every Tech Park, successful or not, has received significant investment of public funds. • It will be difficult to achieve qualitative success and probably more difficult to achieve quantitative success (Le,, return on financial investment). In fact, "making the numbers work" may require support from civic- minded philanthropies /philanthropists. • While it is most likely that data intensive companies will be attracted to the technology park because of the proximity to the fiber lines, it will be important to also target more people- intensive industries and business to create adequate demand to sustain the ancillary amenities that bring a tech park to life. • While it is not clear- which came first - park or culture - most thriving tech parks are located in communities that celebrate entrepreneurship and risk taking. • The most famously successful parks achieved their success over a long period of time. Consequently, it is worth again emphasizing the importance of governance structures, bridging institutions, and perhaps, most important, patience. S sUdnabilitX Certain types of building are disproportionate users of resources, for example, data centers, clean rooms and laboratories. In other words, the types of buildings that you would expect to find in a technology park. According to Laboratories for the 21s' Century (Lab2l@), a laboratory can demand 3 - 8 times the energy of a traditional office building. A laboratory hood requires as much energy as three homes. Design matters. As energy consumption and pollution become increasingly important in evaluating new development, designed -in sustainability factors will play a role in project selection. It is reasonable to believe that the "sustainability quotient" of a facility can become a competitive advantage. Designed -in sustainability can increase value of a building, decrease its operating costs, and increase tenant appeal. 29 Practices and design that will lead to higher building values for buildings designed to achieve efficiencies, All achieved with little added construction cost (1% For "silver" LEED certification, 2 -3% more for "gold" or "platinum "). The MSU Innovation Campus site offers ideal characteristics to create the single best example of sustainable planning design and building in the world. The City of Bozeman is positioned to respond to and lead (sustainable design) trends and, in so doing, become a capital of Green Innovation. Green building and practical Green economic development. Bozeman can become to sustainability what Silicon Valley is to Information Technology. Conclusion MSU Innovation Campus' size and location factor into producing a world -class tech park that will create many jobs and enhance Bozeman's global competitiveness as a high - technology center and "Hot- Spot" for entrepreneurs to locate and /or expand. The MSU Innovation Campus will attract high- growth high -tech value companies, capable of substantial investment in facilities and people. The MSU Innovation Campus site benefits from close proximity to Montana State University and Gallatin Collage, and many of the region's major research and high -tech companies; it is also adjacent, and connected to, high - bandwidth fiber lines, a critical asset to companies that place a premium on data speed. In support of creating a Technology district, companies will be highly engaged in technology -based operations within Montana through the employment of knowledge or labor acid value to a product, process, or export service that will create new wealth and sales for which at least 50% of the sales of the business and collaboration efforts will occur outside of Montana, thus supporting the mission for partnerships and economic growth on national and global Ievels. Supporting the idea of expanding and developing a world -class technology park - the MSII Innovation Campus - is worthy of serious consideration. Such an endeavor will be complex, requiring sound planning, visionary champions, skilled leadership, and most importantly, collaboration between the public (City, County and State) and the private (universities, corporations, civic and neighborhood leaders) sectors. We believe the MSU Innovation Campus not only has the potential to transform the city, but also the entire region, and the State of Montana. 30 ll :. DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE MONTANA STATE UNIVERSITY INNOVATION CAMPUS This Declaration of Covenants, Conditions and Restrictions (collectively referred to hereinafter as "Covenants ") is made this _ day of ZO_ by Montana State University Innovation Campus LLC, hereinafter referred to as "MSUIC LLC' for the development of the Montana State University Innovation Campus, hereinafter referred to as "Innovation Campus ". RECITALS A. These Covenants are made to assure that the land utilized for the Montana State University Innovation Campus (hereinafter sometimes referred to as the "Innovation Campus ") will be developed and operated in a manner consistent with the high standards of Montana State University and the Montana State University Foundation, and with the declared intention of creating a professional and attractive physical environment for advanced research and development activities related to the education, research, entrepreneurial, and economic development objectives of Montana State University and the Montana State University Foundation. The Innovation Campus will use these covenants in order to preserve confidence that the overall quality of development within the Innovation Campus will be permanently protected and will maintain a consistently high quality of architectural, site, and landscape design, integrated into a carefully preserved and sensitively enhanced natural setting. Tenant activities shall be evaluated by the President and Chief Executive Officer of the Montana State University Foundation and the Executive Director of the Montana State University Innovation Campus, in partnership with the Montana State University Innovation Campus Board of Directors (hereinafter referred to as "Board "). 31 B. The land in which the Innovation Campus will be developed, and more particularly described as follows: (Insert legal description here) These Covenants shall apply to all of said land and shall be binding on all Lessee's and Owners of buildings within the Montana State University Innovation Campus. These Declaration of Covenants, Conditions and Restrictions shall also run with the land, what is and what may be, and such other properties the Montana State University Innovation Campus may acquire under the Innovation Campus. C. For the efficient administration of these Covenants and of the Innovation Campus, and for the preservation of the aesthetics and amenities of the Innovation Campus, the Montana State University Innovation Campus deems it desirable to create, and in conjunction with the recordation of these Covenants has caused to be created both a Board of Directors and a Facility Advisory Council, having the duties and prerogatives set forth herein, as may be amended from time to time by the President and CEO of the Montana State University Foundation and the Executive Director of the Montana State University Innovation Campus, NOW, THEREFORE, for the foregoing purposes the above described land, comprising the Innovation Campus, shall be established, held, developed, and occupied subject to the covenants, restrictions, easements, and charges hereinafter set forth. INNOVATION CAMPUS EXPANSION The Montana State University Innovation Campus through action by the appropriate governing bodies may from time to time expand the property subject to these Covenants by the addition of additional lands to the Innovation Campus. The addition of any such land shall become effective upon the recordation in the Office of the County Recorder of Gallatin County, Montana, of a Supplemental Declaration of Covenants which (i) describes the land to be added or incorporates by reference the description contained in any filed plat covering the Innovation Campus; (A) declares that the additional land is to be established, held, developed and occupied as part of the Innovation Campus subject to these Covenants; and (iii) sets forth such additional limitations, restrictions, covenants and conditions as are applicable to the additional land. When any such addition becomes 32 effective, the additional land shall become part of the Innovation Campus and subject to the provisions of these Covenants and any amendment or supplement thereto. The Montana State University Innovation Campus and its governing bodies have no obligation hereunder to add or annex any additional land to the Innovation Campus or to develop or preserve any portion of additional land in any particular way or according to any particular time schedule. No land other than that defined hereto shall be deemed to be subject to these Covenants, whether or not shown on any Master Plan or on any plat prepared or filed by the Montana State University Innovation Campus or described or referred to in any documents prepared, executed or recorded by the Montana State University Innovation Campus. INNOVA'T'ION CAMPUS BOARD OF DIRECTORS AND FACILITY ADVISORY COUNCIL The Innovation Campus is controlled and governed by the Montana State University Innovation Campus Board of Directors and the Montana State University Alumni Foundation Board of Governors. To assist the Boards in the operation and development of the Innovation Campus, a Facility Advisory Council will be established. The Facility Advisory Council reports to the MSU innovation Campus Board of Directors through the Executive Director of the Montana State University Innovation Campus, The Board of Directors and the Facility Advisory Council, consisting of members and having such duties as are set forth herein. SECTION 3.1. The Montana State University Innovation Camp s Rnard of DirectQts. (a) Membership. (1) As outlined in the Montana State University Innovation Campus Articles of Incorporation and Montana State University Innovation Campus Bylaws. (2) President and Chief Executive Officer of the Montana State University Foundation. (3) Executive Director of the Montana State University innovation 33 Campus. (b) Functions: The Board of Directors shall: (1) Be responsible for the orderly development of the Innovation Campus in a manner that provides maximum benefit to the research, educational, entrepreneurial and economic development objectives of Montana State University and the Montana State University Alumni Foundation. (2) Review and make recommendations to matters pertaining to the tenancy and occupancy of the Innovation Campus; (3) Insure compliance with these Covenants, (4) Insure fulfillment of the above responsibilities in an atmosphere of mutual cooperation, with the intent to approve and support full development of the Innovation Campus in a manner that will inure to the benefit of all interested parties; and (5) Exercise its discretion and best judgment in honoring the intent of these Covenants and not unreasonably withhold its consent or approval of any project or activity contemplated hereunder. (6) To support and assist the Executive Director of the Montana State University Innovation Campus in development of a world -class research park. SECTION 3.2. The Montana State University innovation Cam12U racilitk Advisory Council. (a) Membership -Voting. (1) Executive Director of the Montana State University Innovation Campus (Chair). (2) Director, or his /her Appointee, Physical Plant, Montana State University (3) Chief Information Technology Officer, Montana State University 34 (4) Licensed Architect (non - voting) (5) Licensed Engineer (non- voting) (6) Representative, Utility Company (7) Representative, Telephone /Internet Company (8) City Engineer, City of Bozeman (b) Functions. The SDSU Innovation Campus Advisory Council shall: (1) Review and approve, or disapprove, all proposed construction or significant alteration of any buildings, structures or other improvements, including information technology, site, and Iandscaping within the Innovation Campus. (2) Review and approve, or disapprove, all plans and specifications pertaining to such construction or alteration and certify their compliance with these Covenants: (3) Review, approve, and amend where necessary, the Site & Landscape Guidelines, Architectural, and Information Technology Guidelines. (4) Innovation Campus Facility Advisory Council members will be appointed by the Montana State University Innovation Campus Executive Director and approved by the Montana State University Innovation Campus Board of Directors. SECTION 3.3, General Rules Pertaining to the Board and the Facility Advisory Cquncil. All plans, specifications, requests, or other matters requiring the approval of the Montana State University Innovation Campus Board of Directors and the Montana State University Innovation Campus Facility Advisory Council shall be submitted to the Innovation Campus Executive Director. All approvals will be dictated by the Architectural, Site, Landscape, and Information Technology Guidelines. SECTION 3.4. No Liability for Actions or Omissions Neither Montana State University, its President, nor the Montana State 35 University Alumni Foundation, its President, and the Montana State University Innovation Campus Board of Directors, Executive Director of Montana State University Innovation Campus, or the Montana State University Innovation Campus Facility Advisory Council, nor any member thereof, shall be liable to any Lessee's, Owner, or other party for any mistake in judgment, or for any negligence or nonfeasance arising in connection with the review, approval, disapproval or failure to act upon any matter submitted for action by the Board or Council, or for any other matter arising in connection with their duties hereunder. SECTION 3.5. Amendments. Amendments to the membership, functions, duties or other matters relating to the Montana State University Innovation Campus Board of Directors or the Montana State University Facility Advisory Council (through the MSUIC Board of Directors) may be made from time to time at the sole discretion of the Montana State University Alumni Foundation Board of Governors, provided that no such amendment shall operate to substantially and demonstrably diminish any right or benefit already conferred by these Covenants upon an existing tenant or building owner within the Innovation Campus. Any such amendment shall become effective as part of these Covenants upon recordation in the Office of the County Recorder of Gallatin, Montana of Supplemental Declaration containing the amendment. IV. PERMITTED USES In order to assure the Montana State University Innovation Campus is developed and occupied in a manner consistent with these covenants, all Lessee's must be approved as to qualifications for occupancy by the Board. The following criteria will form the basis for that approval: (a) Laboratories, offices, and related facilities intended for basic and applied research, development of technology -based products and services, consulting, or testing of technology-based products and services conducted by or for any individual organization, whether public or private. (b) Facilities intended for prototype development, production, or assembly of products of a technological nature provided that this production is supported by on -site research or product - development activities. (c) Pilot plants in which prototype production processes can be tested and used 36 for assembly of products of a technological nature. (d) Corporate, regional and divisional headquarters of technology -based or knowledge- driven companies and organizations. (e) Association and other nonprofit institutions primarily engaged in industry - based research or educati on- oriented activities. (f) Technology- dependent or computer -based facilities, dedicated to the processing of data or analysis of information provided that these information services are supported by on -site research or product developments (g) Offices and related facilities of not- for - profit research or educational institutes, as well as professional, training, research, scientific or engineering associations, (h) Corporate or professional training facilities provided these facilities maintain ongoing cooperative relationships with the University's Continuing Education or Extension Programs. (i) Businesses or organizations that provide ancillary and supporting facilities for services and retail uses incidental to, and in support of, any uses permitted in Sections (a) through (h) above, such as hotels, conference centers, restaurants, administrative and office support functions, banking facilities, day -care centers, and recreational facilities for the convenience of the clients and employees of the Montana State University Innovation Campus and Lessee's of the Montana State University Innovation Campus. (j) Incidental operations required to maintain or support any uses permitted in Sections (a) through (h) above, such as maintenance shops, parking garages, hazardous - materials handling facilities, water - treatment facilities, and machine shops. (k) Businesses or organizations whose activities have a logical tie or relationship with Montana State University. Such considerations may include; possible employment of students or faculty; library or scientific equipment, the use of which may be available to students or faculty; complimentary areas of expertise; actual or potential financial or other direct benefits to Montana State University or its faculty, 37 Montana State University Innovation Campus and Lessee's must be engaged in operations which are nuisance free with respect to smoke, noise, noxious gases, vibration, odors, radiation, dust, and biological hazards. Precautions shall be taken against all radiation, fire and explosion hazards. All activities conducted within the Innovation Campus shall be in compliance with applicable federal, state, county and city laws, regulations, ordinances, and orders and in accordance with applicable environmental health and safety standards. The physical facilities must be attractive and comply with the requirements of these Covenants, Architectural, Site and Landscape, and information Technology Guidelines, and be approved by the Montana State University Innovation Campus Facility Advisory Council. V. COMMON AREAS SECTION 5.1. Maintenance. In order to ensure that the high quality of development planned for the Innovation Campus is maintained, the Innovation Campus retains the following rights: (a) The Innovation Campus shall have the right to maintain all designated Common Areas and roadways, and, for this purpose, to enter into contracts for maintenance and replacement of landscaping, snow removal, and the repair of improvements within the Common Areas, The Innovation Campus shall also have the right to enter into contracts for trash collection, fire protection, security, and other services that it deems beneficial to all Owners and Tenants in the Innovation Campus. (i) The Innovation Campus shall bill all Owners and Tenants their pro -rated share of the cost of such services to the site user, plus an administrative service fee of fifteen percent (15 %) of the amount billed to offset the cost incurred in negotiating and administering service contracts. (ii) Each site user may contract with the Innovation Campus service contractor(s) for landscape, snow removal and other maintenance services, 38 NO In the event that the obligations for meeting the standards of these guidelines are not kept by the site user on their individual site, the Innovation Campus shall have the right, thirty (30) days after written notice of intent to do so has been mailed to the site user, to enter the property, perform the required maintenance and upgrading, including, but not limited to, replacement of dying landscape materials, building repairs, removal of non- conforming signs and lighting standards. (iv) Unpaid financial obligations of the site user with respect to maintenance charges shall become a lien on the fee or leasehold interest of the Lot Owner or Tenant. (b) The Innovation Campus has the right, from time to time, to dedicate, transfer or grant easements over all or any part of the Common Areas to any Government Authority or Utility for such purposes and upon such conditions as the Innovation Campus Administration office may determine. (c) The innovation Campus has the right to amend this Declaration, either by specific amendment or by adding any additional covenants, restrictions or easements on any plat of all or any part or parts of the Property now or hereafter placed of record; provided, however, that any such amendment or plat hereafter placed of record shall not affect any part of the Property whose Owner or Owners does not execute the same. (d) The Innovation Campus has the right (but not the obligation), from time to time, to establish, modify, amend and rescind reasonable rules and regulations regarding the use and enjoyment of the Common Areas. (e) The Innovation Campus has the right, from time to time, to amend all existing easements and restrictions of record affecting all or any portion of the Common Areas and the right to grand additional easements affecting the Common Areas or any part thereof: (f) The Innovation Campus has the right (but not the obligation), from time to time to borrow money for the purpose of acquiring, leasing, or improving the Common Areas and in aid thereof to mortgage or 39 otherwise burden or encumber the same, but any such mortgage shall be subject to any and all easements upon or affecting streets, roads, walkways and recreational facilities, and storm water control system. (g) The Innovation Campus has the right (but not the obligation), from time to time, to suspend the enjoyment rights of any Owner or Tenant with respect to the Common Areas for any period during which any assessment remains unpaid, and for such period as it considers appropriate for any infraction of its published rules and regulations. SECTION S.2. —Use. The Common Areas shall be for the use and benefit of the Innovation Campus, the Owners, the Tenants, and their respective agents, employees, tenants, contractors and invitees for the purposes referred to in Section 5.1 above. The Common Areas shall be used by each Person entitled to its use in such a manner as shall not abridge the equal rights of other Owners to the use and enjoyment thereof. Each Owner shall be liable to the Innovation Campus for any and all damage to the Common Areas and any personal property or improvements located thereon, caused by such Owner or Tenant, its agents, employees, tenants, contractors, subcontractors, invitees, licensees, lessees and contract purchasers, and the cost of repairing same shall be a lien against such Owner's Lot or Lots as outlined in Section 6.1. The use of the Common Areas shall be restricted to ingress and egress, utility purposes, parking, landscaping, drainage, security, safety, recreation and lighting purposes or any other common use which the Innovation Campus may designate in any amendment to this Declaration or on any plat establishing one or more Lots. SECTION 5.3. Rules and Regulations No owner or other permitted user shall violate the reasonable rules and regulations for the use of the Common Areas, as the same are from time to time adopted, amended or restated from time to time by the Innovation Campus Administration Office. V1. POWERS AND DUTIES OF THE INNOVATOIN CAMPUS SECTION 6.1. Powers and Duties. The Innovation Campus shall have the powers and duties set forth herein, He] including the right to enforce the provisions of this Declaration, and the right to levy and collect assessments for expenses relating to the Common Areas, and such additional rights as may be reasonably implied therefrom. V11. GENERAL REQUIREMENTS SECTION 7.1. Design Review, The external appearance and siting of the buildings and improvements within the Innovation Campus are the primary concern of the Montana State University Innovation Campus Facility Advisory Council. No building, structure or other improvement, including landscaping, shall be constructed or significantly altered within the Innovation Campus without the prior written approval of the Montana State University Innovation Campus Facility Advisory Council, Informal, pre - design conferences with the Council will be required. The following material and information shall be submitted to the Council for approval prior to the execution of construction contracts. (a) All land use will be governed by Montana State University Innovation Campus and these covenants. (b) All design shall be governed by these Covenants, Architectural, Site, Landscape, and Information Technology Guidelines. (c) Site and Landscape documents shall include the following: - Setback lines - Roads and sidewalks - Parking areas Loading and maneuvering areas External lighting - Utilities and utility easements - Grading and planting plans, which plans shall show existing grades and natural vegetation - A professional designed landscape, irrigation, and draining plan Appropriate specifications (d) Architectural documents shall include: Floor plans - Cross sections - Elevations of all sides of the buildings 41 Structures or improvements Location and detail of signs Samples of the actual materials proposed for all external surfaces An accurate architect's or artist's depiction or scale model of the project Appropriate specifications; and (e) Construction cost estimates shall include sub - totals for site work and utilities, building, and landscape amenities. In addition, an estimate of the square foot costs for the building shall be included. Information shall be used for internal purposes only. (f) Information Technology documents shall include: - Process - Reserves - Physical Security - Appeal Process - Standards and Guidelines - Services SECTION 7.2. Buildings, (a) Any building constructed within the Innovation Campus shall be designed by an architect licensed in accordance with state law and shall conform to all applicable building codes. (b) Design and construction documents shall be submitted to the Montana State University Innovation Campus Facility Advisory Council for approval. (c) All construction within the Innovation Campus shall be of commercial Grade with a minimum life expectancy of 40 years. (d) Not more than thirty -three percent (33 %) of the contiguous Iand area Contained within a specific land lease agreement shall be covered by Buildings. Request for variance may be submitted in writing to the Montana State University Innovation Campus Facility Advisory Council and the Montana State University Innovation Campus Board. (e) All significantly exposed and noticeable projections outside of any building, including mechanical and electrical equipment, 42 communications equipment, cooling towers, transformers, ducts, vents, trash and recycling receptors, etc., shall be screened from the public view by appropriate enclosures. All plans submitted to the Montana State University Innovation Campus Facility Advisory Council for approval shall show such projections and enclosures. (FJ Suitable draperies /blinds or window screening devices shall be uniformly coordinated throughout the building and shall be in place at the time of the initial occupancy. SECTION 7.3. band cape The design and appearance of ground and common areas are similarly significant in achieving the environment desired within the Innovation Campus. Careful attention must be given to this dimension of the Innovation Campus development. The following shall be required of Montana State University Innovation Campus, Sublessee's and Owners of buildings or land within the Innovation Campus, unless a variance is applied for and approved by the Montana State University Innovation Campus Facility Advisory Council in appropriate individual circumstances: (a) The site plan shall be by a licensed civil engineer, architect, or landscape architect according to the Montana State law and shall conform to all applicable codes. (b) Any landscaping installed within the Innovation Campus shall be designed by a landscape architect licensed in accordance with Montana State - state law and shall conform to all applicable codes. (c) Landscape elements, irrigation, drainage, and planting shall be an integral part of the project design. Design and construction documents shall be submitted to the Montana State University Innovation Campus Facility Advisory Council for approval. (d) All grounds and exterior areas shall be clean, neat and properly maintained at regular intervals. (e) Parking areas shall be substantially screened by planting, berming or fencing, and (f) All Fencing materials shall be permanent and properly maintained. 43 (g) Any variances from the "Site and Landscape Guidelines" must be presented to the Montana State University Innovation Campus Facility Advisory Council for review and if modified prior to approval. SECTION 7.4. Roads. Sidewalks. and Parking, (a) All roads, sidewalks, and parking areas shall be Surfaced with permanent material and properly maintained. (b) Montana State University Innovation Campus, Sublessee's and Owners shall consider present and future parking requirements and provide adequate on -site parking for all anticipated needs for buildings. As a minimum standard not less than one parking space shall be provided for every 300 square feet of gross building floor space, or no less than one for two employee's anticipated on side at one time, whichever is greater. (c) Where building occupancy will occur in phases it is not necessary that all of the required parking area actually be paved, so long as the total area requirements be shown on the site plan, the land is kept available and actual paved parking continuous to be sufficient. A smaller amount of initial paving may be agreed upon if the owner and the Montana State University Innovation Campus will express in writing a willingness not to change the space use without advanced approval and a statement indicating that parking may be a reason for denial of use change. (d) When a building is constructed for a particular use, and it contains a disproportionate number of large laboratories, the number of parking spaces may be limited to the number of expected occupants plus 10 0/(, for visitors. However, sufficient space must remain to meet the conditions of (b) and (c) above if the usage is changed. (e) No parking shall be permitted on roads, driveways, shipping & receiving areas, electrical or trash enclosures, or maneuvering areas within the Innovation Campus. (f) No overnight parking or storage shall be allowed except in designated parking areas from 1 November through 31 March to facilitate snow removal. 44 (g) Wherever possible, parking areas should include landscaped areas, trees and adequate lighting. (h) Prompt removal of snow from parking areas is the responsibility of each individual building Sublessee and Owner. (i) See the Site and Landscape Guidelines for landscaping and other requirements in parking areas. SECTION 7.5. Signs. Each building within the innovation Campus may include an exterior sign suitable for displaying company names and logos of the Innovation Campus and Sublessees within each building. The design, color, materials, location, size, height, font and lighting of each sign shall be approved by the Montana State University Innovation Campus Facility Advisory Council. No flashing, moving or mechanical signs will be permitted within the Innovation Campus. All signs shall be properly maintained and updated by the Montana State University Innovation Campus, Sublessee's or Owners of each building within the Innovation Campus, SECTION 7.6. Loading and Storage Facilities (a) Outside loading and storage areas and facilities shall be screened from public view, (b) Required vehicle maneuvering areas shall not project into common areas. SECTION 7.7. UtdiZLConnectionj& All utility lines, connections and installations shall be underground and rise within or immediately adjacent to the serviced building or structure. Any external transformers, meters or similar utility equipment shall be below ground level and covered for safety. Where approved in writing by Montana State University Innovation Campus Facility Advisory Council, above ground level equipment shall be screened from public view. SECTION 7.8. Illumination of Buildings and Grounds Uniform exterior Iighting within the Innovation Campus is desirable to achieve overall continuity and to avoid unnecessary glare. Exterior lighting shall be 45 coordinated and approved by the Montana State University Innovation Campus Facility Advisory Council. SECTION 7.9. Trash Recyclable. Trash and recyclable items shall be treated and disposed of as required by the lease agreement and local ordinances. Any external collection facilities shall be gated and screened from public view. SECTION 7.10. Nuisance. Hazards and C,om fiance No activities may be conducted within the Innovation Campus which emits harmful noise, vibration, smoke, odors, dust or gases into the exterior atmosphere. Precautions shall be taken against all radiation, fire and explosion hazards. All activities conducted within the Innovation Campus shall be in compliance with applicable federal, state, county and city laws, regulations, ordinances, and orders and in accordance with applicable environmental health and safety standards. SECTION 7.11. Condition and Maintenance of Property. (a) Montana State University Innovation Campus, Sublessee's and building owners shall at all times, and at their own expense, keep and maintain premises leased or owned by them in a safe, clean and wholesome condition and in good repair. Maintenance of the exterior of buildings and other improvements including parking areas, shall include, when and as needed, painting, parking stall and directional striping, removal of debris, washing and sweeping, and surface and other repair. Maintenance and Iandscaping shall include, when and as needed, watering, trimming, fertilization, removal of waste materials and all debris, and replacement of dead or diseased grass, ground cover, shrubs or trees. Sublessee's and building owners will comply to a common ground and parking maintenance policy to support consistency in the upkeep of grounds and parking throughout the Innovation Campus. (b) Prompt removal of snow from parking areas and sidewalks in the responsibility of building owners and /or Montana State University Innovation Campus. Stock piling of snore shall not interfere with drainage or damage the landscape, utilities, or other site improvements. Removal of stock piled snow will be at the expense of 46 Montana State University Innovation Campus, Sublessees and building owners. III I L. ONGOING INTEGRATION The purpose of the Innovation Campus is to benefit and advance the research, education, entrepreneurial, and economic development of Montana State University, and stimulate development purposes of the Gallatin County, the City of Bozeman, and the State of Montana. Therefore, in addition to compliance with the permitted uses, operations and functions set forth in these Covenants, Sublessee's of the Innovation Campus shall, upon request by the Montana State University Innovation Campus, meet with designated officials /representatives of the Innovation Campus, at reasonable intervals, times and places, to discuss and promote active integration and cooperation between the Sublessee's and its activities with Montana State University Innovation Campus, Montana State University, Montana State University departments, faculty, designated students, as well as county, city and state functions which are or may be relevant to the Sublessee's operations; and, the Sublessee's shall exercise its good faith efforts, upon such terms, at times and in such manner as may be reasonable under the circumstances, to encourage and permit access to its technical facilities and personnel, and to promote cooperative activities between the Montana State University Innovation Campus, Montana State University, Montana State University Alumni Foundation, the city of Bozeman, Gallatin County and the State of Montana. IX. DURATION AND AMENDMENT These Covenants may be terminated or amended by written agreement executed and acknowledged by the Montana State University Innovation Campus Executive Director with the approval of the Montana State University Innovation Campus Board and by at least two- thirds (2/3) of the owners of buildings within the Innovation Campus. X. ENFORCEMENT These Covenants and any amendments shall be binding upon and inure to the benefit of the Montana State University Innovation Campus, Montana State University, 47 the County and City of Bozeman, and the State of Montana, and the lessees, tenants and owners of buildings within the Innovation Campus and their respective successors and assigns. Any violation of these Covenants shall give the Montana State University Innovation Campus the right to recover damages and /or injunctive relief against violating parties. In any such proceeding, the party against who judgment is entered shall pay the costs and reasonable attorney fees of the Montana State University Innovation Campus as may be fixed by the court. X1. WAIVER The failure of the Montana State University Innovation Campus, or other person or authorized body, to enforce any requirement, restriction or standard herein contained, shall in no event be deemed to be a waiver of the right to do so thereafter or in other cases, nor of the right to enforce any other term, condition or restriction. XII. SEPARABILITY If any provision of these Covenants is invalidated by statute, judgment or court order, the remaining provisions shall remain in full force and effect. 48 1. Intent MONTANA STATE UNIVERSITY INNOVATION CAMPUS ARCHITECTURAL GUIDELINES (a) The Montana State University Innovation Campus is a community of business, industry, government and university tenants involved in development of scientific research and technology in cooperation with the interests of Montana State University, the Gallatin County, the City of Bozeman, and the state of Montana. The design and construction of the physical facilities of these firms should reflect the high level of commitment to excellence and value. Each building should attempt to show a high quality and professionalism rather than temporary or industrial appearance. Individual identities are encouraged but new facilities should complement high - standard architecture. (b) Overall architecture character should reflect that of a well- designed structure of lasting quality, detailed to accommodate the changing weather conditions of Montana. 2. Process (a) Meeting Early in Design Process: The Montana State University Innovation Campus Facility Advisory Council members will be supportive in encouraging quality design without arbitrarily limiting the options available to the tenant firms. Consistent with this, the Facility Advisory Council requires a meeting with the owner's representative and their architect early in the design process to provide design directions consistent with the overall intent. (b) Additional Review with Facility Advisory Council Chair: An "Application and Review Procedure" is provided as a minimum to allow both the Montana State University Innovation Campus Facility Advisory Council and the prospective firms an opportunity to efficiently arrive at building designs consistent with the needs of both parties. If additional interface is desired, the Chair of the Facility Advisory Council should be contacted to arrange for the appropriate members to be available. ,. 3. Lm be (a) Appeals of Facility Advisory Council decisions may be made in writing to the Chair of the Facility Advisory Council, stating in a concise manner the issues to be considered. The Chair of the Facility Advisory Council will review with the Chair of the Montana State University Innovation Campus Board, the Board responsible for the oversight of the SDSU Innovation Campus. If the Board finds it appropriate, a personal appearance may be scheduled. The decision of this appeal by the Board will be final. Architectural Guidelines (a) Massing: Horizontal massing with lines and features emphasizing horizontality and simplicity shall be evident. Massing shall include all service yards and equipment screen walls. Three dimensional block models must be TI.CYT OF CFA? B n.c:'x: DOM id-r' L' £ ql u I � I �t �7Lih'71N:i- - - >u�1:4A1K- used during planning. (b) Height: Building heights at setback shall not exceed 24 feet from natural or existing grade at interior roads and 18 feet at Garfield. Additional height may obtained by compliance with the following sketch. so Request for variance must be in writing to the Chair of the Facility Advisory Council. * Refer to the Montana State University Innovation Campus Plat for right of way dimensions. Maximum Height = 50' -0" (c) Roof: 1. If roofs are exposed to public view, they shall be of a finished, durable material consistent with the overall design of the building. Materials not approved include highly reflective materials, such as uncoated aluminum or galvanized metal. False mansard roofs shall not be used. Colors of all materials need to be approved by the Facility Advisory Council. 3. All roof flashing, coping, and related materials shall be harmonious with the overall building colors. 4. All mechanical equipment shall be designed integrally with the building massing. Where visual screens are necessary, they should be incorporated within the building massing and be of materials harmonious in color and texture with prominent materials found elsewhere on the building. (d) Walls and Facades: Buildings shall have a consistent implementation of design on all sides. Buildings with a "finished" front and "unfinished" sides or back will not be permitted. 2. Quality, uniformity, and simplicity are objectives to be sought in the building's appearances. Consideration of the effects of'weathering should be clearly apparent. All colors including mortar must be approved by the Facility Advisory Council. Caulking colors must match finish colors of adjacent materials. 51 (e) Building Materials: Materials generally acceptable include: brick, architectural block, architectural concrete, architectural pre -cast concrete, polished stone, energy efficient glass and pre - finished metal curtain wall systems. 2. Because it is difficult to clearly designate a materials palette, the Facility Advisory Council remains open to suggestions on exterior materials. The Facility Advisory Council reserves the right to disapprove or suggest alternatives to prospective owners based upon the design's compatibility with the existing architectural character of the Innovation Campus. 3. Exterior materials not approved include: wood, steel, vinyl or aluminum siding, synthetic stucco or plaster systems, Masonite siding, concrete masonry units, some highly reflective glass, and rustic stone. 4. Samples of proposed exterior materials must be presented for review And approval at the same time as any exterior colored renderings to the Facility Advisory Council. (f) Windows: All window coverings (drapes, blinds, etc,) shall be approved by the Facility Advisory Council. (g) Mechanical and Service Areas: All loading service, and trash areas as well as mechanical units, shall Be visually screened from adjacent buildings and drives. S. Codes (a) Buildings and sites shall comply with all applicable codes, including Montana Energy Code, International Building Code, Montana State PIumbing Code, National Electric Code, and local zoning ordinances. h. Construction (a) A sample panel of proposed wall construction indicating the color and 52 workmanship must be approved by the Facility Advisory Council before work may proceed. (b) Any construction changes affecting the exterior appearance of a development must be approved by the Facility Advisory Council before implementation. in the interest of time, an e -mail response from the Facility Advisory Council members may be used to approve changes. 53 MONTANA STATE UNIVERSITY INNOVATION CAMPUS APPLICATION AND APPROVAL PROCEDURE FINAL TIME PERIOD ACTION REQUIRED DURATION MATER(ALS PREDESIGN /SLOPING SUBMITTAL Upon acceptance 1. Receive covenants and by Facility guidelines. Advisory Council Design package. and Montana 2. Receive review procedure. State University c. Innovation 3. Submit statement of Campus Board a) Project scope. prior to b) Occupancy and activities Beginning description. Schematic c) Architect. Design d) Design engineers. Outline - specification e) Owner`s representative for ongoing coordination. CONCEPTUAL DESIGN REVIEWS prior to 1. Meet with Facility Advisory Schematic Council to present conceptual Design design and gain mutual understanding of expectations. SCHEMATIC_ DESIGN REVIEW End of Schematic 1. Submit schematic design Submit material one a, Site plan. Design package. week prior to review b, Site utilities design. c. Building plan. 2. Written letter from Chair of d. Colored building Facility Advisory Council elevation showing approving and,'or requesting materials. changes to site plan, site e. Outline - specification utilities design, building of materials. plan, colored building f Color board of actual elevations, outline materials used. specification of materials, g. Block massing study color board. model or computer generated simulation. 54 DESIGN DEVELOPMENT REVIEW End of Design 1. Submit packet of progress Development drawings and environmental studies for review and writwn approval from Chair of Facility Advisory Council. CONSTRUCTION DOCUMENTS REVIEW 3.4 Through l . Submit set of progress Working drawings and specifications for Drawings review. PRE - CONSTRUCTION SUBMITTAL Two weeks prior to Same drawings as review schematic plus. a. Drainage design. b. Irrigation design. c. Landscape design. Two weeks prior to a. Complete set of review progress prints. b. Samples of materials to be used on exterior of building. c.. Exterior building details. d. Site details. End of Bid or 1. Submit list of contractors and Prior to Start of major subcontractors. Construction 2_ Submit schedule, staging area, parking and vehicular access plans. 55 AS BUILT SURIM[TTAL Within 30 Days 1. As built drawing of siic, Following Building floor plans, Substantial Utilities, landscaping and site - Completion in-igation, balancing reports, operations and maintenance manuals and copies of equipment warranties. 55 Exhibit C MONTANA STATE UNIVERSITY INNOVATION CAMPUS SITE AND LANDSCAPE GUIDELINES 1. Intent The landscape development within the Montana State University Innovation Campus will be used to reinforce the architectural guidelines and lend additional unity to the Innovation Campus appearance. Trees, turf, and building integrated earth mounding have been designated as the dominant materials for landscape development. Proposed landscape development must be subtle, uncluttered and convey a horizontal quality in overall effect. The intent of the following guidelines and recommendations is to provide visual and spatial continuity to the landscape development associated with the individual buildings within the Montana State University Innovation Campus. These regulations and recommendations will be applied in reviewing all site plans submitted. Plan approvals and construction permits by applicable local municipality will be required in addition to any reviews made by the Montana State University Innovation Campus Facility Advisory Council. Fees for permits shall be paid by the tenant /developer. 2. Definitions a. Right of Way (R.O,W.- the right of passage across public or private land. In the Innovation Campus, the right of way limit is coincident with the parcel boundary along common streets. b. Easement: a corridor of land, often on ]eased property, used for infrastructure such as utilities, C. Set back: the prescribed minimum distance from the property line that structures, such as buildings, must be placed. The setback is thirty feet from peripheral and internal roads, and ten feet from parking areas and driveways within leased parcels. Variances may be submitted in writing to the Chair of the Innovation Campus Facility Advisory Council 611 d. Innovation Campus Commons: those areas of the Innovation Campus that are maintained by the Innovation Campus administration office. This includes all landscaped areas, the central pond area, sidewalks, service areas, roads and parking. e. Low Maintenance Ian uy . that requiring little irrigation, no mowing or pruning. Unmowed turf or «Ndldflower mixes are examples of suitable low maintenance landscaping. All areas will require removal of weeds that extend above the level of the intended dominant plant type. All areas will require monitoring and removal of trash or debris. f. Standard References: Innovation Campus Declaration of Covenants, Conditions and Restrictions and Innovation Campus Architectural Guidelines which have been identified by the Montana State University Innovation Campus for use in specifying building materials-and construction standards. 3. General Site Planning RequireMents (a) The front yard setback area of each building lot shall be landscaped with an effective combination of turf, building integrated earth mounding, trees, ground cover and shrubbery. (b) All unpaved areas designated, but not yet utilized for parking shall be landscaped in a similar manner. (c) The entire area between the curb and a point ten (10) feet in back of the front property line on all parcels fronting Garfield shall be landscaped, except for any access driveway in said area. Notwithstanding the above, the entire area between the curb and the building setback line thirty (30) feet of any property fronting on internal Park access roads shall be landscaped. (d) Except for the area occupied by buildings, sidewalks, and paved areas, all parcels shall be landscaped in their entirety. Low maintenance landscaping, may be installed at the rear of buildings, away from Innovation Campus roads and drives. (e) Undeveloped areas proposed for future expansion shall be maintained by the Innovation Campus Administration Office and shall be subject to common area charges to tenants /developers on a pro -rated basis. 57 (f) Areas immediately surrounding parking lots, shipping and receiving areas shall be landscaped in such a manner as to interrupt or screen said areas from view from access streets and adjacent properties. Such planting, however, shall not impede the view of pedestrians and /or drivers at all intersections and crosswalks. (g) Outdoor storage is prohibited, but if deemed absolutely necessary approval must be obtained as an exception. A special use permit must be approved by the Innovation Campus Facility Advisory Council. (h) All outdoor refuse collection areas shall be visually screened from access streets and adjacent property by a complete opaque screen. No refuse collection areas shall be permitted between a frontage road and the building line. Refuse collection containers must be coordinated with solid waste service provider. 4. Site Engineering Requirements (a) The minimum road specifications recommended for use in all driveways and parking areas shall be, as follows: 4" asphalt over, 8" concrete over, 6" road base over, 3" road base over, 18" pit run material @ (C" minus) 4" pit run material A standard road section recommended for use in all other parking areas is: 2 Va" asphalt over, 4" road base over, 12" pit run material All road gravels are to be compacted to 95% of maximum laboratory dry density. Request for variations to the above must be submitted in writing to the Chair of the Innovation Campus Facility Advisory Council. (b) All parking areas shall be designed for proper storm drainage in accordance with existing code and local ordinances. The tenant is responsible for control of all surface run -off water consistent with the drainage plan of the Innovation Campus. (c) All new curb and gutter details is required for use in all driveways and 58 parking lots or other areas where curbing is proposed shall be consistent throughout the Innovation Campus. Detail maybe obtained from Innovation Campus Administration Office. (d) A curb radius of 15' is required for all driveways and parking lots; larger- radii may be required for service drives and loading areas. (e) No earth mounding or graded depression to be planted in turf shall exceed a 3:1 slope. (f) Required minimum grade for all surface materials is 11/2% with the exception of turfed areas designated for retention of surface run -off. (g) Detention ponds and canals are not to be used for the disposal of solid wastes, toxic liquids or byproducts. (h) All facilities must be tied to utilities specifically installed for use by Innovation Campus tenants. (i) All utility lines shall be run underground. (j) State requirement for accessibility for handicapped persons shall be incorporated into all buildings, parking lots and walkways. � 7 5. Signage Requirements (a) One free - standing sign is permitted per street frontage (Innovation Campus internal roads only) in single -and multi- building sites, With multi- building sites a project name or logo is encouraged for the entire site. (b) No free - standing sign shall be erected in the first: 15 feet as measured from the property line of any street or set back area. (c) No free - standing sign shall exceed 100 square feet in area per face. An additional 20 square face feet shall be allowed per tenant (d) Free- standing signs shall not be more than six (6) feet above the surrounding grade. (e) No flashing or moving signs will be approved. (f) One tenant identification sign (flush - mounted fixture type) will be permitted at each building entry. (g) Temporary signs including construction information and for sale and lease signs are permitted. (h) All permanent and temporary signs must be approved in writing by the Innovation Campus Facility Advisory Council. .� 6. Site Lighting Guideline,,; (a) All exterior light fixtures are to be concealed source fixtures. Exterior wall - mounted floodlights are expressly prohibited. For parking lot lighting, pole - mounted Fixtures are required. (b) Lighting of all pedestrian pathways is recommended. (c) Lighting of building and site identification signs is permitted. (d) All parking lot and walkway light Fixtures shall be of a matching design and of the style and manufacture as recommended by the committee. (e) Foot - candle requirements are as follows: 1 Foot- candle minimum in parking area. 3 Foot - candles on sidewalks and at building entries. Ambient light from adjacent buildings may be included in the lighting calculations for new sites. (f) Exterior lighting design will comply with the most restrictive local municipality ordinances. 20 7. DesigIj Requirements - To Reduce Maintenance (a) All shrubs, ground cover and /or other planting beds shall be mulched with wood chips or other suitable mulching material, to a minimum depth of Z". (b) All planting beds shall be separated from turf areas with a poured in place concrete mowing strip at grass level of 6" wide x 4" deep. (c) All parking areas shall be designed with ample internal or adjacent space for stockpiling snow. (d) Parking lots must be arranged to provide for efficient snow removal and stockpiling. Snow shall be stockpiled away from drain inlets. (e) All grounds and exterior areas shall be clean, neat and properly maintained at regular intervals, (f) All fencing materials shall be permanent and properly maintained. W 8. Planting Recommendations (a) A well- conceived landscape design will include trees, shrubs and groundcovers as proposed by the landscape architect. (b) A minimum of one (1) tree is recommended per 400 square feet of the Building's footprint. (c) No deciduous tree shall be installed which has a caliper smaller than 1 V? ", and no evergreen tree shall be installed with a height of less than 4'. (d) in addition to the minimum number of trees, a variety of tree sizes is recommended as per the following schedule. Quantity Caliper of Deciduous Height of Evergreen 70% medium 2" or larger 4' or larger 20 small 11/2" - 2" 4' (e) Recommended trees (list available from Montana State University Innovation Campus Administration Office). (f) Recommended shrubs (list available from Montana State University Innovation Campus Administration Office). (g) Recommended ground covers (list available from Montana State University Innovation Campus Administration Office). (h) Existing landscapes shall be evaluated and preserved wherever suitable. Existing, mature, healthy trees shall have high priority for preservation. (i) All areas will require monitoring and removal of trash or debris. (j) All planted areas shall be adequately watered using materials and equipment specified in the Montana State University Innovation Campus Design Guidelines. At a minimum, irrigation systems shall include protection against cross - connections and an automatic controller. *Note: Plant materials in the list above have been proven reliable in this area. However, plant survival is dependent on many factors, including healthy stock, proper installation, and proper maintenance. The Montana State University Innovation Campus Administration Office is not responsible if plant materials selected from these lists fail to survive. All materials are to have a one -year warranty. 63 Exhibit D CITY OF BOZEMAN COMMUNITY PLAN, UNIFIED DEVELOPMENT CODE, And ECONOMIC DEVELOPMENT PLAN Section 1: Relationship to the City of Bozeman Community Plan The MSU Innovation Campus Comprehensive Development Plain has been developed to be consistent with, and to implement the policies of, the Bozeman Community Plan, Bozeman Community Plan Future Land Use Map And Land Use Categories Community Business Park 97 Commercial Mixed Use Mixed Use r I The MSU Innovation Campus property is highlighted in red within the above map, which is an excerpt from Future Land Use Map of the Bozeman Community Plan. Two land use categories from the Bozeman Community Plan apply to the MSU Innovation Campus property: • Business Park Mixed Use; and, • Community Commercial Mixed Use. The following sections from the Bozeman Community Plan describe these two land use categories. 64 Business Park Mixed Use: This classification provides for employment areas with a variety of land uses typified by office uses and technology- oriented light industrial uses. Civic uses may also be included. Retail, residential, services, or industrial uses may also be included in an accessory or local service role. Accessory uses should occupy 20% or less of the planned Business Park Mixed Use areas. These areas are often a buffer between uses, and the scale and intensity should be carefully considered to ensure compatibility with adjacent developments. The developments should provide integrated open spaces, plazas, and pedestrian pathways to facilitate circulation and a pleasant environment. Uses may be mixed both vertically and horizontally with vertically mixed uses being encouraged. Higher intensity uses are encouraged in the core of the area or adjacent to significant streets and intersections. As needed, building height or other transitions should be provided to be compatible with adjacent development. Community Commercial Mixed Use; Activities within this land use category are the basic employment and services necessary for a vibrant community. Establishments located within these categories draw from the community as a whole for their employee and customer base and are sized accordingly. A broad range of functions including retail, education, professional and personal services, offices, residences, and general service activities typify this designation. In the "center- based" land use pattern, Community Commercial Mixed Use areas are integrated with significant transportation corridors, including transit and non - automotive routes, to facilitate efficient travel opportunities. The density of development is expected to be higher than currently seen in most commercial areas in Bozeman and should include multi -story buildings. A Floor Area Ratio in excess of .5 is desired. It is desirable to allow residences on upper floors, in appropriate circumstances. Urban streetscapes, plazas, outdoor seating, public art, and hardscaped open space and park amenities are anticipated, appropriately designed for an urban character. Placed in proximity to significant streets and intersections, an equal emphasis on vehicle, pedestrian, bicycle, and transit circulation shall be provided. High density residential areas are expected in close proximity. Including residential units on sites within this category, typically on upper floors, will facilitate the provision of services and opportunities to persons without requiring the use of an automobile. The Community Commercial Mixed Use category is distributed at two different scales to serve different purposes. Large Community Commercial Mixed Use areas are significant in size and are activity centers for an area of several square miles surrounding them. These are intended to service the larger community as well as adjacent neighborhoods and are typically distributed on a one mile radius. Smaller Community Commercial areas are usually in the 10 -15 acre size range and are intended to provide primarily local service to an area of approximately one -half mile radius. These commercial centers support and help give identity to individual neighborhoods by providing a visible and distinctive focal point. 65 They should typically be located on one or two quadrants of intersections of arterials and /or collectors. Although a broad range of uses may be appropriate in both types of locations the size and scale is to be smaller within the local service placements. Mixed use areas should be developed in an integrated, pedestrian friendly manner and should not be overly dominated by any single land use. Higher intensity employment and residential uses are encouraged in the core of the area or adjacent to significant streets and intersections. As needed, building height transitions should be provided to be compatible with adjacent development. The MSU Innovation Campus Comprehensive Development Plan, including specifically the MSU Innovation Campus Expansion Plans, Implementation Strategies, and Guiding Principles, are consistent with the Business Park Mixed Use and Community Commercial Mixed Use land use categories of the Bozeman Community PIan. Additionally, the MSU Innovation Campus Comprehensive Development Plan is consistent with, and will substantively implement, the following goals and policies of the Bozeman Community Plan: • Objective LU -1.4: Provide for and support infill development and redevelopment which provides additional density of use while respecting the context of the existing development which surrounds it. Respect for context does not automatically prohibit difference in scale or design. Goal LU -2: Designate centers for commercial development rather than corridors to encourage cohesive neighborhood development in conjunction with non - motorized transportation options. Objective LU -23: Encourage redevelopment and intensification, especially with mixed uses, of brownfields and underutilized property within the City consistent with the City's adopted standards. Using this approach rehabilitate corridor based commercial uses into a pattern more supportive of the principles supported by commercial centers. Objective LU -4.4: Review and revise the City's regulations to encourage and support sustainability in new construction and rehabilitation or redevelopment of existing areas. Objective C -1.1: -Expand design review programs citywide to ensure well designed spaces throughout the community, Objective C -4.1: Continue to develop the design guidelines for site planning and buildings to emphasize creativity, diversity, and individuality. The design guidelines .. shall be based on the premise that truly creative design is responsive to its context and contributes to a comfortable, interesting community. • Objective C -6.3: Encourage and support energy conservation and efficiency in all aspects of development. • Goal ED -1: Promote and encourage the continued development of Bozeman as a vital economic center. • Objective ED -1.2: Coordinate the provision of infrastructure necessary to support economic development • Objective ED -1.3: Foster a positive economic climate through a well - managed and aesthetically pleasing built environment, and by maintaining a beautiful and healthy natural environment to promote and attract businesses with a desirable impact on the community. • Objective ED -1.4: Encourage ongoing improvements in private infrastructure systems, such as telecommunications, and promote state -of- the -art facilities. • Objective ED -1.5: Encourage, through the use of incentives, the development of business and industry that provides wages that are proportionate to, or are higher than, the cost of living and provide options to expand skills and opportunities for Bozeman's workforce. • Objective ED -1.6: Utilize the City's economic development and urban renewal plans to stimulate investment and maintain a health and vibrant economy. • Objective ED -1.7: Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman Area Chamber of Commerce, the Downtown Bozeman Partnership, Prospera Business Network, MSU- Bozeman and others to promote Bozeman. (Source: Bozeman Economic Development Plan) • Objective ED -1.8: Leverage local, state, and federal economic development resources to enhance economic growth in Bozeman. (Source: Bozeman Economic Development Plan) • Objective ED -2.7: Support Montana State University in its educational and research mission, which contributes to the local and state economy. • Objective ED -2.8: Support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business, (Source: Bozeman Economic Development Plan) 67 • Objective ED -3.2: Encourage sustainable development to minimize costs to businesses and customers and protect quality of life. Objective RCC -2.7: Continue cooperation with Montana State University on transportation, building siting, future land use planning, and other town /gown issues. M -M - toll= rITITO-41,10111TIM The City of Bozeman Unified Development Code contains both subdivision and zoning procedures and standards. The MSU Innovation Campus Comprehensive Development Plan has been developed to be consistent with all applicable provisions of the City of Bozeman Unified Development Code. -:Ja Bozeman Zoning Designation Map IntentofApplicable Zoning Districts The intent of the Business Park (BP) district is "to provide for high quality settings and facilities for the development of a variety of compatible employment opportunities. These areas should be developed so as to recognize the impact on surrounding or adjacent development and contribute to the overall image of the community. Compatibility with adjacent land uses and zoning is required." The intent of the Community Business (B -2) district is "to provide for a broad range of mutually supportive retail and service functions located in clustered areas bordered on one or more sides by limited access arterial streets." The land uses and site development proposed by the MSU Innovation Campus Comprehensive Development Plan is consistent with the intent of both the BP and B -2 zoning districts. Allowed Uses In Zoning Districts The following are excerpts from the Authorized Use Tables in the City of Bozeman Unified Development Code for the BP and B -2 zoning districts. The excerpts have been chosen to highlight how the land uses that are likely to occur within the MSU Innovation Campus as proposed by the Comprehensive Development Plan would be regulated. In these tables, principal uses are indicated with a "P," and conditional uses are indicated with a "C." Table of Industrial Uses BP Zone District Permitted Uses Laboratories, research and diagnostic P Manufacturing, light PY Offices, as defined in this chapter P5 Public buildings P Technology research establishments P Notes; 4Completely enclosed within a building. Professional and business offices only. Table of Commercial Uses B -2 Zone District Permitted Uses Laboratories, research and diagnostic P Manufacturing, light and completely indoors C Offices, as defined in this chapter P Public buildings P Research laboratories P Because of the large, contiguous, undeveloped area within the MSU Innovation Campus, there no constraints that would not allow all site specific development to conform to the dimensional and development standards of the BP and B -2 zoning districts. It is anticipated that the Comprehensive Development Plan will be further refined through a master planning process to facilitate the orderly development of the infrastructure, amenities, and facilities within the MSU Innovation Campus. This master planning process will be closely coordinated with City of Bozeman to ensure ongoing conformance with all applicable plans and policies, including the potential creation of a zoning district or overlay that would more accurately reflect the specific development pattern of the MSU innovation Campus. 70 Section 3: Relationship to the City of Bozeman Economic Development Plan Montana State University [plays] a significant role in the growth and development of Bozeman's technology industry, and is the reason the Bozeman area is considered the technology center of the state. (City of Bozeman, 2009 Economic Development Plan, Section III - 2) Home to more than 100 technology -based firms, Bozeman has become the high -tech center of Montana; and it is one of the largest technology communities in the northern Rocky Mountains. Bozeman's technology sector has grown significantly since the early 1990's. A 1994 report on high -tech clusters in Montana by the Federal Reserve Bank of Minneapolis cited just 8 companies engaged in research or production of laser optic equipment and only 12 in biotech in the Bozeman area. Today, there are an estimated 20 firms engaged in laser optics and an estimated 33 firms engaged in biotech. Bozeman's technology sector now includes firms engaged in advanced manufacturing (an estimated 26 firms) and laser optics Can estimated 20 firms); information technology` application development, information technology services, software, Internet applications, telecom, etc. (an estimated SO firms); biotech or bioscience (an estimated 33 firms); and agricultural, environmental, or miscellaneous activities (an estimated 14 firms). These firms for the most part are selling their goods and services entirely to customers located outside of Montana and many located outside of the U.S. These firms directly employ an estimated more than 3,000 individuals whose earnings are significantly higher than the county's annual average wage of about $32,SOO. Without a doubt, the concentration of research activity at Montana State University has fueled the development of technology -based companies clustered in Bozeman and it has been a significant contributor to Bozeman's vibrant entrepreneurial technology economy. University technology transfer and commercialization activities have been driving economic development nationwide since the early 1980's when changes in federal legislation accelerated the process and increased incentives for collaboration between universities and industry. Montana State University has been no exception. According to the MSU Technology Transfer Office, technology developed at MSU has resulted in the spin- off of 30 companies and licensing by 37 companies in the Bozeman area and nearly 300 companies statewide. The university holds 163 licenses for patents for innovations such as biological, chemical, and engineering processes and compounds, coatings for the space shuttle or pharmaceutical drugs. Of those 163 licenses, 60% are with Montana companies, many located in Bozeman. 71 MSU has grown to become a regional leader in research and creative projects with nearly $100 million in research expenditures in the state each year. MSU was recognized by Carnegie Foundation for the Advancement of Teaching as one of 96 research universities nationally with "very high research activity." MSU has strong ties to industry in the Bozeman area, particularly in the life science, aerospace, and information technology sectors. MSU lists relationships with over 150 companies which include research support, licensing agreements, and consulting services. In 2007, MSU granted 283 Bachelor's degrees in engineering Fields and 195 Bachelor's degrees in science fields. According to the MSU Career Destinations survey of graduates in 2007, 56% of engineering graduates and 61% of science graduates were employed by Montana companies after graduation, many in the Bozeman area. The strength of Bozeman's technology economy has also translated into private companies receiving research and development and investment funding. During the 2000 -2004 time period, Montana ranked 10th in the nation in the average annual number of federal Small Business Innovation Research (SB1R) awards made, with nearly half going to Bozeman companies (18 out of 44 total). (City of Bozeman, 2009 Economic Development Plan, Section TV, 1 -2) Supporting Technology and the MSU Innovation Campus 1) Support the expansion and retention of existing businesses and economic clusters that will continue to strengthen and diversify the economy and create higher paying jobs in Bozeman. a. Pursue, support, and provide assistance for business start -up, expansion, and business recruitment efforts that strengthen the following economic clusters: • Technology (biotech /bio science, information technology, laser /optics) b. Support and promote entrepreneurial efforts linked to emerging markets, high technology, and research and development. c. Leverage MSU- Bozeman research, faculty, and students to expand upon current opportunities and identify additional opportunities for the long term economic diversity and vitality of Bozeman. 72 d. Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman Area Chamber of Commerce, the Downtown Bozeman Partnership, Prospera Business Network, MSU - Bozeman, and others to promote Bozeman. 2) Maintain and upgrade infrastructure to support the current and future needs of business. a. Maintain infrastructure (city service or private service) at safe and efficient levels to satisfy the current and future needs for economic expansion. The condition of streets and sidewalks, water and server, gas and electric distribution, communications, and solid waste disposal all affect how efficiently businesses conduct their operations. It also contributes to business retention and recruitment efforts. 1 Support .1 developmentpf technology park areas to meet the needs of existing _ 1 1 1 companies, 3) Support education and worlcforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business. a. Support the efforts of the Montana University System to expand 2 -year degree and job training and certification programs in Bozeman. b. Support the enrollment growth of MSU- Bozeman through the statewide legislative level and at the local level. All avenues should be explored that promote MSU and Bozeman in a cooperative manner. c. Encourage MSU College of Technology in Bozeman, Bozeman job Service and the Bozeman School District to develop and maintain continuing education and certification programs for high- demand jobs. d. Support the "Come Home Montana" promotion (and consider developing a "Come Home Bozeman" promotion) to Montana alumni residing out of state, highlighting local employers and career opportunities, local quality of life, and other factors that may lead to a decision to return to Bozeman. 4) beverage local, state, and federal economic development resources to enhance economic growth in Bozeman. 73 a. Continue to utilize tax increment financing (TIF) programs as a tool for urban renewal and economic redevelopment opportunities where appropriate. 5) Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman's regulatory environment to accomplish goals without hindering business expansion and economic growth. a. Support efforts of the Montana Manufacturing Extension Center (MMEC), TechRanch, the Small Business Development Center (SBDC), and other organizations to encourage and foster entrepreneurship and small business development in Bozeman, 6) Maintain the high quality of life that is considered an important asset to the business community. a. Recognize and support the idea that Bozeman's "quality of place" is a significant asset for the business community. (City of Bozeman, 2009 Economic Development Plan, Section VII, 1- 8) Based on 2008 -2009 data, MSU adds 13,511 public and private jobs to the state's economy. This generates more than $1 billion in personal income from the four campuses and MASS, which equates to $897.7 million in after -tax income and $253 million in state tax revenue. MSU's research innovation has led to the creation and growth of businesses throughout the state, providing employment opportunities in industries such as agriculture, energy, construction, healthcare and technology. 74 ECONOMIC IMPACT REPORT I 6 ArJ_ al .. a. F!.1 am s s r sd BOZEMAN I BILLINGS NORTHERN I GREAT FALLS MSU Extension Montana Agricultural Experiment Station Dccemtber 2010 Montana State University Presence Across the State Lfnpeln •. 1-•. —r -- Glacier J Tode I &aina k�l i ~I Daniels — �, StlHldan # f17rUst�d `� L t e valley liogseveh — " J 1 j Pmclera� i Phillips -•_ --_a"� setor! IbchUnd 1 sende�sr �LaMrr • {I I Chou r �tceene —i _ r I Dawson �� i sunenit `Lewis Cascade k�� - Aat�kwn T� 4 r� MktauL ead `I L t • ,,,, ` % I A .:irk � —, �.� � Judith Basin paid.; t Iosabud �L,_— 1 Granite . �I ^ hlrsselsndl ' 8rweter; fdeegtrr ! ` lral eya —— r'leKerson ( 11'hgtl?and �. r— ► L C �'valinaswnenasurel i uster AMID L?WSilverl. rGallal.n ISweet Gross .! ,.: ke, "—.Bow �� e= Bemrheatl ~i I r Cuter r Park - 1/' _ Big W rn I -- Ppader IGrer Madisnsas I Carban N EMensiOnOfflca �---i Exteni'NnTsW- CountyAgrrcncr� 0 Tribal College Alfillate 4••.....). Local Extension AMIlate ti Montana AgricL hdral Experlrnrmt Station IASU Ememlon Fire ServiceSTralning School w IASU Nusing0impus * hISU Campus MONTANA STATE UNIVERSITY - r BOZEMAN ( BILLINGS I NORTHERN ( GREAT FALLS MSU Extension Montana Agricultural Experiment Station ECONOMIC IMPACT REPORT TABLE OF CONTENTS Economic Impact Report Summary x The Economic Impact Model q Statewide analysis 7 University Operations 8 University Research ii Graduate Earnings TF Visiror and Nonresident Student Spending 18 Statewide Economic Impact zo Campus Close -up; MSU- BDZema.n 22 Campus Close -up: NISU- Billings Z3 Campus Close -up: MSU- Northern 24 Campus Close- up: .10 -W -Great Falls z5 Close -up: Monrana,Agricultural Experiment Sracion zG Close -up: \fonrana State Univcrsity Extension 27 Conclusions 2.8 Appendix 30 Data ara'ys!s I rr.•vi;icrl If.!, •7e fatolr.all,- 5:ale uni"Ersit" c fi;;C .)' .ne P Csi;'ena h•: Wi't 111 P -im i:I ii,l' %vti i I. {'I:GR r.G ��:•_'_ti?I'_t'. 3t 'I le Lo':ersllt n1 I60:11'viTi Economic impact of Montana State University Montana State University (,MSU) is an integral and significant portion of Mantana's economy. With a presence in even county across the state, ongoing research that drives new innovations, and a commitment to provide education that empowers all Montanans, MSU advances the economic health of Montana. As Montana's land -grant insdrution, MSU is dedicated to serving the people of the crate. This service is provided in many forms including: education on our four campuses in Bozeman, Billings, Havre and Great Falls; research on the campuses and at the Montana Agricultural Experiment Station (MASS) at.MSU- Bozeman and its seven regional centers; and dissemination of knowledge through our comity Extension offices and MAES centers across the state. Not only does MSU serve the state through education, research and outreach, but it also makes significant contributions to MontanA economy: To quanri6, the impact of MSU on the state's economy, an economic impact srudy was conducted by the Univcrsiry of Montana's Bureau of Business and Economic Research. The premise of the study was to compare the actual economy with a hypothetical economy in which the university is removed. 'Me result of this analysis, which is presented in this document, measured the University's contributions related to five key areas for which data were available. Those five areas include university operations, research expenditures, increased earnings of graduates and visitor and nonresident student off - campus spending. Note: 9%tth a prerenre in'all ofhfentanat counties, AfW Extension is unigw, and cannot be eefertiveiy measured by the same five metrics as the caritpusm rind .MA,eS. Thus, the economic impact ofMSU Fx- remion is not inedxded; b. swewr iri formation describing tJJe breadth and scope it provided in this report. Based on the analysis of MSU and the state economy, the economic impact study reported MSU's economic impacr (excluding MSU Extension) is; • Jobs: 13,511 Montana jobs. • Income: More than $1 billion in personal income which equates to $897.7 million in after -tax income. • Tax Revenue: $253 million in state tax revenue, which means the state receives $2.60 in tax revenues for every $1 of tax support. • Compensation: MSU's presence increases annual wages across the state by $1,087. • Investment Spendingt An increase of $3493 million in investment spending in chc Montana economy occurs every year due to the operation of .\,1SU. MSU- Bozeinan • Jobs: lvlore than 9,000 jobs arc available due to the presence of the Bozeman campus. • Income: Almost three - quarter billion dollars in earnings are attributable to MSU - Bateman. • Tax Revenue: The return on investment in the Bozeman campus is threefold. The 2009 appropriation of $50.5 million was increased to $168.6 million in state tax revenues. • Compensation. Annual wages arc $690 higher across the state because of the presence of MSU- Bozeman. • Investment Spending: An increase of $234.6 million in investment spending in ncc Montana economy occurs every year duc to the operation of the Bozeman campus. Mutuaua State UW lu8ity I ECO OMIC Impact Report 2010 MSU- Billings • Jobs: 'I71e Billings campus creates nearly 1,700 jobs for state residents. • Income: More than $175 million ill personal income results from MSU- Billings. • Tax Revenue: In 2009, MSU - Billings was responsible for $36.5 million in state tax revenues from the $20 million investment. This means the state received $1.80 in rax revenues for every $1.00 of tax support. • Compensations Annual wages are $235 higher across the stare because of the pres- cnee of MSU - Billings. • Investment Spending: An increase of $36.5 million in investmenr spending in the Montana economy occurs every year due to the operation of the Billings campus. MSU - Northern - Jobs: The Havre campus contributes 800 jobs in a region of - Montana where job availability is crucial. - Income: These jobs mean an additional $82 million in personal income. - Tax Revenues VISU- Northern produces a two to one return on investment of stare dollars. 'The $9 million investment resulted in $18 million in stave tax revenues in 2009. - Compensation: Annual wages are $94 higher across the state because of the presence ofMSU- Northern. • Investment Spending: An increase of$14.7 million in investment spending in the Montana economy occurs every year due to the operation of the Northern campus. MSU -Great Falls • Jobs: More than 400 jobs are added co the state economy through the presence of the Great Falls campus. • Income: The resulting personal income is nearly $37 million. • Tax Revenue: In 2009, Great Falls increased the initial investment of $6 million to $7.9 million instate tax revenues. This means the stare received $1.30 in tax revenues for evert $1.00 of tax support • Compensation: Annual wages are $41 higher across the state because of the presence of MSU -Great Falls. • Investment Spending: An increase of $7.3 million in investment spending in the Montana econorny occurs every year due to the operation of the Great Falls campus. Montana Agricultural Experiment Station (MASS) • Jobs: MAES contributes almost 1,600 jobs that support the agricultural industry in Montana. • Income: Through MAES more than $100 million in personal income is dispersed. • Tax Revenue: 'The state's investment of $12.7 million was increased to $22 million in tax revenues in 2009. This means the state received $170 in tax revenues for every $1.00 of tax support. • Compensation: Annual wages arc $27 higher across the state because of the presence of MASS. • Investment Spending: An increase of $56.2 million in investment spending in the Montana economy occurs every year due to the operation of MAPS. A.'OTE: Please see Economic Impact Report Restart? Note on page 4 MSU Extension Funding • State: $:5.93 million (35 percent) • County: $5.68 million (33 percent) - Competitive or formula federal: $3.23 million (19 percent) • Federal: $2.20 million 0 3 percent) Employment 188 FTE that includes 80 campus -based specialists and staff and 108 county -based Faculty/staff located at 62 offices across the state serving all 56 counties and five reservations. Community Improvement • $6.2 million generated for local programs and projects by county agents/staff in FY09 The Research Question The purpose of this study was to address the following question: What would the economy of the state of Montana look like if Montana State University- did not exist? Using tools which track and measure the interaction of the key sectors of the Montana economy (see The REMI Model, page 5), the study examines a hypothetical world that removes the spending and output of h4SU. 'Tire difference between the economy of today and the hypothetical economy with no university is the total economic impact of MSU_ 'chat impact can be thought of as the sum of three pieces: Direct Impact This is the impact that the operations of the University itself have on the economy. The items in this list are incredibly varied. MSU pays employees and vendors, attracts research dollars from governments and industry, and increases the earning power of its students when they graduate, It also hosts sporting events and sells merchandise. MSU attracts our -of -state scholars and students. It receives tax support from the state of Montana. All of these mechanisms directly impact the economy of the state. Indirect impacts 'These are the economic activities that occur in the state of Montana because of the University, but are not part of the University itself. Companies that locate in Montana because of the presence of the University, visitors and tourists, technology companies with informal links to the University, and even highly educated workers who come to Montana because their spouses are employed at MSU arc examples of these. Induced Impacts An economic stimulus such as the University produces changes in the economy that go beyond its direct and indirect impacts. When businesses and employees are economically enriched through the University's activities, they further stimulate the economy through the increases in their spending that result. This second - round" impact is significant and can be estimated with the use of an economic model that captures the linkages between spending and production for the Montana economy. Limitations of the Study Many additional indirect impacts could be added m this study. For example, the presence of businesses, workers, investments and spending in Montana that are in some way related to dte presence of Montana State University also contribute to the state's economy. These include startup businesses, businesses that co- locate with the Universinr for a variety of reasons (e.g., labor market recruitment). conferences and events, and the labor supply of educated spouses of l3niversity employees. None of these indirect impacts are included in this report. Although substantial, the rigorous estimation of these was beyond the scope of the economic impact study. The total impact of the University involves tracing and tabulating the induced impacts caused by the direct impacts of MSU using an economic model. In addition, it is important to note that the MSU Extension impacts arc not included in this report. t imina State Univer%Ly ( Eeoion lc Impact Rcporl 20 1 U The REMI Model A critical link in this analysis involves translating Montana State University's direct and indirect impacts into overall state economic activity. This is accomplished by means of an economic model. The model is used to make two kinds of economic projections: The first is the baseline, or status quo, a projection of the Montana economy as it stands today. The second projection removes the direct and indirect contriburions of MSU. These changes bring about further economic impacts —the induced impacts. The model is a critical tool in understanding how those first -round impacts alter investments and decisions that ultimately determine the size of the resulting economy. The difference between these eco- nomic projections is the total impact of the University. The Bureau of Business and Economic Research used a top -tier economic impact model, provided by REMI, Inc. of Amherst, Mass., for this purpose. The REMI model has been in existence since the early 1980s and has been used to evaluate the economic contributions of the University of Michigan, the University of Connecticut and other higher education institutions. It has been evaluated or used in more than 700 studies and appears in more than a dozen peer - reviewed academic journal articles, The model is capable of examining impacts in fine detail and has a peerless reputation. Economic Impact Study Research Note Research Note form the Bureau of Business and Economic Research Regarding Comparisons of the Economic Contributions of The University of \Montana- Missoula (UM) and Montana State University. The economic impact studies for UM and the campuses of MSU were conducted at different points in time, using slightly different models and methodology. Each study was carried out so as to represent and estimate the instirution's economic impact as thoroughly and accurately as possible. However, the passage of time and the evolution of the method- ology make a direct comparison of the results between the two institutions inappropriate. Both studies use the REMI model, and both construct an alternative future economy that removes the direct expenditure Flows of the particular institution. However, i. the UM study uses a (one region) REvll model of the state Of Montana, whereas the MSU studies have employed a REMI model which considers five sub - regions ofthe state separately, adding up the regions to produce a state impacr; ii. some of the MSU studies incorporate the spending of business startups and other spin -offs of MSU research; iii. 'Ihe Ui.•4 study was constructed to produce an estimate of how its economic con- tribution changed over time, whereas the MSU studies were designed to deliver a profile of the institution's current (and ongoing) Contribution. For these reasons a numerical comparison of the results of the UM and MSU studies is misleading and inappropriate. The results clearly show that the operations of U.M and the campuses and agencies of MSU are a complementary fiorce for economic advancement in the state of Montana. Key Terms for this Report The Bureau of Business and Economic Research analyzed several distinct mechanisms with which .'Montana State University interacts to increase the state economy. To under- stand the analysis and its implications, it is important to define and delineate each of the factors that were examined and analyzed as part of the economic impact study. Definitions University operations The payroll and purchases of the University for academic year 2008- 09 were tabulated and categorized. This analysis included a thorough accounting of tax and tuition payments in support of that spending originating from the state of Montana. University Research The Universiry's spending and payroll fur research activities, net of within state support, were assembled and summarized. Graduate Earnings Census data arc used to estimate the additional earnings of those with bachelor and graduate -level college degrees in Montana.. Applying these estimates to MSU graduates residing in the srate of Montana produces an estimate of the aggregate earnings impact of MSU. Nonresident Visitors* An estimate of out-of-stare visitor spending attributable to MSLJ is constructed by using student survey responses on visitation frequency for nonresident students, combined with spending profiles from he University of Montana's Institute for Tourism and Recreation Research. Nonresident Student Off- Campus Spending* The spending profile of nonresident students is estimated and presented using survey responses of The University of Montana students. These are direct impacts of the University. Wonresident visitor and student spending were based an studies conduaed at The university of Montana. The resuk wer•e:etiiixed w estimate visitor and nonresident expenditr res for MSU Montana State UnivmhT I Ecnoamic Impoct Report 20 nt) Statewide Analysis Montana Stare University is comprised of four campuses in Bozeman, Billings, Havre and Great Falls, as well as all county Extension offices and Montana Agricultural Ex- periment Station statewide programs. Although much of the economic impact is con - c:enttared where there is a physical campus, MSU's impact is also felt broadly across the state through the county Extension offices and Montana Agricultural Experiment Station research centers. MSU's most valuable contribution to the state is an educated workforce chat attracts, promotes, and retains higher paying jobs in Montana. With a combined fill 2010 enroll- ment of nearly 22,O00, MSU's four campuses serve citizens throughout the state, prepar- ing students to become productive in their communities. In this report, it is recognized that state support for MSU and resident student ex- penses, including tuition and spending, does not represent additional revenue for the state economy. Therefore these resources are not reflected in this analysis. Only revenue that is truly a result of the University and its outputs arc factored into the economic impact. The Economic Impact study found that MSU has a significant impact on the state economy, even when money and resources from Montanans are excluded. The money, added To the state's economy as a result of MSU comes from four primary sources: • Higher incomes, productivity and spending of Montana residents who are MSU graduates are significant additions To the stare's economy. • IvISUJ attracts significant support from outside the state through nonresident studenr spending that adds to the Montana economy. • MSU has a record of successfully competing for research funds. These dollars repre- sent new money for the state economy attributable to the presence of the university. • University dollars spent on payroll, MSU: education and research has a higher made in Montana" fraction than most goods and services consumers [night buy. Thus Tak- ing money away from general spending and directing it toward the University results in a net gain to the Montana economy. Because the economic impact study is designed to compare the state's current economy and an economy without the Univet -sity, the analysis of these measures is careful to include only resources that come from external sources. Support generated from in -state sources, such as stare appropriations or in -srare tuition, would likely still be retained in Elie stare if the University did not exist. The Economic Impact study found that Montana State University has a significant impact on the state economy, even when money and resources from Montanans are excluded. University Operations Montana State University is one of the largest employers in the state. The MSU campuses alone account for $754.3 million in payroll and benefits, meaning that approximately 79 1 percent of the unrestricted funds go to employees who live and spend their wages in Mon- Cana. In addition to compensation and benefits, University faculty and staff wages and other expenditures related to instruction, academic support, student services, institutions] support, public service and outreach, and operation and maintenance of facilities are ac- i counted for in what are referred to its unrestricted fonds. Funds for University operations come from four primary sources including tuition and fees, state appropriations, private and public research support funds, and payments from i i individuals. The MSU campuses 1 Unrestrmted Spending—Campuses Bozeman sit"01101 Nordiem Orast FORS Total atone account for i Salaries $75,388,821 519,458,671 $7,016,171 $6,186163 5106.029,4x6 $2 54 3 million in i -- - - -� _. .__. -_ W4105 51,409,9921 $353,522 S162,318 51467641 $2,071.696 payroll and benefits. ': _ _ _ other Compensatior $808,811 ! 8221,747- $58,135 $28,551 $3,111,244 Benefits S26,892,253 ' $6,478,054 $2,389,460 $2,050,006 ' $37,809,773 i _ Benefits and Claims 53,481,815 51,048,007 I $463,453 $305,418 S5,298,693 Supplies - - - I $3,887,088 ' $1,655,430 $564.153 $507,273 — $6,613,944 i COmmUfliCatiD115 $9_87,838 $529.810 $133,223 5202,465 51,833,334 Travel - I - 51,189,302 $784,973 $3,96,5N 5118,ld9 $2,447.012 i - Rent $564,765 $1,136,413 1 $$G,307 $6,795 $1,758,280 Utilities $4,648,960 53284,589 j $647.255 5413433 i $6,999;237 Maintenance 53.123,742 ; $858,432 $180,289 $272,216 $4,434.679 t Transfer,& Other (33,380,633) ($299,838) $34,119 ($9,215) ($3,655,567) Contracted Services $4,390,501 51,979,949 $724,962 $252,299 $7,347,811 1 Capital $1,408,4841 $681,582 582360 $7.400 l Debi $96.383 - - - $96,383 i Other Expenses MA86,300) $854,720 $197,654 $194,682 (6239,244) =- Scholersbips S8,B04,192 $1,656,985 $1029,867 S131,408 $11,882,452 F Total $132,176,109 $38,688.043 514,090,315 51018701806 EMM Source: Br(rCat< W AVSUIg53 bfp Ccowwt Researar, ar Ihb Unlverslry of Montana bolo on 2009 sans. 6afe: A WrtylOtUll of ttv WA iv I!113 rem, , ane the Un- varsity afMonraea rapes tea wt aaAroyriartr %Y) rtIey, b=,twwawiog (say pays: 5). i MSU Extension Operations The unique funding structure of the Extension Service includes state general fund, federal Smith -Lever tact and counry sources. The state legislature appropriates both state general funds and federal Smith -Lever funds on a biennial basis. Extension agent salaries are paid from federal Smith -Lever and county funding sources. a- tension specialists are paid from s state general funds. Extension funds 100 percent of the benefit costs for all employees hired on Curren unrestricted funding from a blend of federal Smith -Lever and state gen- oral fund dollars. Operational allocations are made to specialists based on a pre - established j formula. Other operating dollars arc allocated to support staff development, program development, personnel recruitment and general operating purposes. S ' Montana Scare Vnimsitg l Economic Impact Roport 2010 Montana Agricultural Exp.- rinlent Station Operations Salaries Wages Other Compensation 9eneftts Berieflts and Claims Supplies Communications Travel Rent Utilities Maintenance Other Cartracted Services Capl;al Deb, Dther Expenses Scholarships Total MAES $8.667.486 S260,345 $188 -386 $2,810,770 $385,262 $686,917 5155,369 $117,987 £48,287 £273,295 $289,051 $699,447 $279,696 $160,406 £383,351 S65 Source: Bureau n; Business andEcmgarrc Nesearr.Yial The Li n.Vers,ry at Montana based as 1009 data. Nate: A domparlSon or ME data Al lids report and the JAIVera,ry of Montana report is wrapprgwee and May be mtsleed,ng (see page 5). University Operations The Montana Agricultural Experiment Station is supported by the Montana General Fund and federal Hatch Act capacity funds. Faculty, staff and srudents, and some operations allocations are made to the main station (Bozeman) and the seven research centers through expenditures of stare and federal funds. Operations anti maintenance of statewide research facilities are supported by unrestricted funds and private and public research support Funds. MAE5 is similar to the campuses in that the majority of its unrestricted funds are reinvested into the state through salaries and benefits, and op- eration of research facilities. Unrestricted Funding Sources The sources of unrestricted funds are almost entirely tuition and fees levied on students and appropriarions received from the Montana Legislature. Tuitinn Revenues Hotternm 8Mlilres Northern Great Falls MSU To1mr Regisuaticn Fee $801,086 5329,218 S88,847 $127.657 S113461808 Resident Tuition 637,909,027 514,524,7:3 $3,678,585 53,889,7641 $60,002.089 Nonresident Tultion $38.855,520 $1,548,303 S479,667 £367,823 $41,251,313 )NUETUAlon $.2.150,660 $1,441,957 $375.270 $31,389 $4,009,275 Admissions fees 5308,489 $73,065 $21.!32 $28,350 £431,036 Pmgrian Tuition & Fees $1,461,253 50 $48,125 SD S1,509,378 TOTAL $81,496,035 $17,917,256 $4,691,626 $4,444,982 .$durce: sirreav a(a:imiress acrd EmoD ntG Jtesoarcb at The unowsity 9 (rotas Cased Gn 2OD9 flora. Ovate: A. comparison if the data fr, !fis report and The urlversity dr Aiortona ,,Wort is rot appmprWe and troy be in lPad'_Irr (Sea page 5). G If the University was removed from the economic equation, tNvo changes would occur. First, the jobs and income supported by University operations would not exist. Second, the tax support and tuition paid by resident students would be returned to them, to be potentially spent on other goods and services. The operation of the University boosts the state economy through unrestricted funds produced from two primary sources. The first is the fact that the University attracts stu- dents and funding From sources outside the state of Montana. These include both tuition and fees paid by nonresident students, as well as tuition support in the form of scholar- ships and grants that come From Federal or other non - Montana sources. The University also attracts significant private sector support from both inside and outside Montana. Al. though there is an unequal distribution of nonresident students among all of the campuses, with the majority attending in Bozeman, all of the campuses experience some benefit from nonresident student revenue and all of the campuses are successful in attracting external funding. Thus the operations of the University bring new money into the state. The second stimulus comes from the service- oriented nature of the 'University itself. MSU has a very high proportion of its output That is locally produced. Directing in -state spending to the University, instead of To mosr other goods, will provide more stimulus to the state economy even if the dollar amounts are the same. For example, another item a Montanan might spend money on, say, a new car, has a much lower fraction of its value that can be said to come from Montana. i[9 i LlonLAna Stacc lhiivcrs:n I Cconomle Impact Repoit A:I It University Research 1 University Research Through its four campuses, Montana State University represents the largest research enter- prise— public or private —in the state. 'Ilse majority ol= the roughly $100 million annually fueling MSU research comes from the federal government. Without the MSU campuses and Montana Agricultural Experiment Station, those funds would be dispersed elsewhere in the nation. Research expenditures allow MSU to offer undergraduates access to research and cre- ative experiences, attract world -class graduate students and faculty, and pave the way for new discoveries that help make Montana and the nation more economically competitive. ,MSU research covers a broad rtnge of topics, but the system's strengths are in the areas of biomedical research, seeking new ways to fight human and livestock diseases; energy research, opening new territory in everything from biofuels to fuel cells; natural resources, discovering better ways to use waters, Iand and wildlife:; and agriculture, advancing new crop varieties, and creating new technologies and stewardship practices. Based on 2008 -09 figures, the $109.5 million in annual spending and the equivalent of ap- proximately 730 high- pitying jobs in MSU research would be lost to the state if the University did nor exist, and so would the fruits of those research efforts —the patents and inventions, the spinoff of business into the state economy, and the well- trained engineers and scientisrs that will help keep Montana and Elie nation competitive into the 21st century. Products Based an Montana State University Licenses Although not included in the economic impact study. significant economic activity is generated by discoveries made at Montana State University. Examples of these innovations follow. Products Currently Produced and Sold Safflower International licenses and sells safflower varieties developed and protected by MSU. Currently seven licensed varieties are sold, including varieties for animal feed, cooking oil and birdseed. Through Its four campuses, Montana State Unhiersity represents the largest research enterprise— public or private —in the state. • Bozeman Billings Northern Wall Falls j Total Federal Grants and Contracts 383.666,939 55,547,205 $2,289,684 $330,799 ' $91.834,627 Private Grants and Conttads $10,827,495 $724,955 $14,557 $138,873 $11,705,ST1 State Giants and Contraots 53.937,268 $606.589 416,582 ; $404,152 S5364,591 indirect Cost Reoverles $410,424 $167,895: $1,125 $579,444 TOTAL $98,431,693 $7,289,173 $2,888,718 $874,949 HE for FY09 648 46.55 34.96 • 729.51 Compensation end Benefits $42,254,265 x215001000 St.546,892 • 346,301,157 SW' ree. 1114NIV of Uuslress ardrea-1omitPesea.!ch Of me 0111*10yorlaonrans based on 2009 data. Nefe: A cornFansor, of the COW in ;ors ,report and Toe uarmaslrr o0ftnrana rcamt is not apay.matr ano myy bu m-sI:enirg (seepage S ;. , Data nDt 11VItlpatl All SAWj'S7s Products Based an Montana State University Licenses Although not included in the economic impact study. significant economic activity is generated by discoveries made at Montana State University. Examples of these innovations follow. Products Currently Produced and Sold Safflower International licenses and sells safflower varieties developed and protected by MSU. Currently seven licensed varieties are sold, including varieties for animal feed, cooking oil and birdseed. Through Its four campuses, Montana State Unhiersity represents the largest research enterprise— public or private —in the state. • • ConAgra licenses and sells an MSU- developed barley variety for use in the healthy j foods market. i i Numerous MSU - developed (Monoclonal Antibodies are licensed and sold by several companies for use in biochemistry, biomedicine and molecular biology research. T j • WestBred, a unit of :Monsanto: sells several licensed varieties of wheat, developed by I MSU, to Montana and regional growers, • Sensol'ath sells biosensors licensed From MSU for the rapid dctection of biorerrorism pathogens. Research expenditures • BioSurfacc Technologies sells licensed technology utilized for creating and measuring allow Montana State biofiltns —slimy masses Thar can clog municipal and industrial pipelines and equip- ' merit and even contaminate implants such as prosthetic hips and heart valves. University to offer • Innovative Bioscnors' technology uses MSU antibodies for rapid detection of ricin, a undergraduates access i f deadly poison. to research and NWB Sensors sells an instrument licensed from i44SU for calibrating infrared creative experiences, ! cameras designed to be mounted in unmanned aerial vehicles and used for remote attract world -class t analysis in agricultural ivork, wildlife research and military applications. graduate students and GrayMatter Research, LL(Aicenses MSU technology For neurological monitoring of faculty, and pave the animals. way for new discoveries ! Seed Source, Inc. sells a variety of alfalfa licensed from MSU. that help make i Seed Research of Oregon sells a variety of grass licensed from MSU. Montana and the nation Agril a Foods sells a flour made from avariety oft4grass licensed from �NISU. more economically • Westland Seed Co. sells a variety oFalfalfa licensed from MSU. competitive. • lnnovadve Food Project sells gluten -free flour from a variety of grass licensed from MSU. i Products Under Development • Zdye has licensed and continues to develop specialty dyes for proreomics applications, a promising area for bionnedical research. • Aura has licensed and continues to develop nanotechnologies for use in diagnostics and Therapeutics. i • LigoCytc has licensed several MSU biotcchnologies for use in the vaccine market. i • Bridget Photonics has licensed and continues to develop laser -based technology For extremely precise and fine distance measurements that have applications for civil engineering, the military and a variety of other fields. i • Phillips Environmental Products (dba C:leanWaste) has licensed and is in the final ap. l proval stages for a fungus that both sanitizes and deodorizes the contents of portable 1 toilets, filling an important niche in disaster relief., recreational use, military and other massive field operations. l precision Laboratories, Inc. has licensed and continues to develop an organism that, iwhen applied ro seed in dry land or drought conditions, reduces water needs of the l plant significantly. 1 1 i ✓nntana Stair Vnivrrs y l EconomlG lmpoct Report 2010 • S2 Corp has licensed and continues ro develop advanced radar systems. • Montana Microbial (_Montana BioAgriculturc) has licensed and continues to develop a microorganism that confers a nonspecific immunologic boost—especially signifi- cant in sugar beet, tomara and pecan crops. • 1nBios has licensed an MSU antibody to incorporate into a diagnostic test. i • CZiagen, Inc. licensed a method from MSU for distinguishing between live and dead bacteria in molecular assays. • Scrim Research Corporation licensed an MSU- reagent for medical diagnostics and food safety tests. i Products In Research Mode 1 • Vaccines for autoimmune diseases such as multiple sclerosis • Compounds to enhance innate immunity _ r • Antibioric and antimicrobial compounds [ j� • Improved mass spectrometry for use in rite medical area x • Improved antenna that allows for better communications • Biofuel technologies • Improved wind power generation i • Carbon sequestration systems • Technologies for use in hydrogen production i i • Improved fuel cell technology, g • Bioinspired nanomaterials for use in medical, energy production and computer ap- i plications • Laser -based technologies for weather, computer storage, remote sensing of particles and other applications c • Tiny mirrors for uses in medical and military applications Examples of Montana State University Intellectual Property- Dependent i Spin -Off Companies • Bridger Photonics develops laser -based technology for extremely precise and fine distance measurements. i • LigoCyte is a drug development company which has raised nearly 130 million in venrure capital and has vaccines in clinical trials. • WB Sensors makes instruments for calibrating infrared cameras. i Resonon develops and manufactures spectral imaging scanning systems. • Zdyc develops dyes for medical and diagnostic uses. • S2 Corp develops advanced radar technologies. • AC)VK develops and commercializes photonics technologies. i i i • I ;i • Bacterin develops and markets antimicrobial medical coatings and growth factors for human grafts. • BioSurface'lechnologies sells technology for creating and measuring biofilins. • Project WI:T is a nonprofit organization teaching A-ater issues to children, parents; teachers and community leaders. Companies influenced or Enhanced by Montana State University • RightNow Technologies is a publicly - traded company located in Bozeman and thw founder states that MSU was a sigaiificant factor in irs location. • Scientific MaterialslFL1R, a crystal grtm th company, works closely with MSU optics. • Zoot is a financial technology company that offers comprehensive, robust and flexible credit deckjoning, loan origination, credit risk management and customer acquisition. • Anasphere Inc. conducts cutting -edge research and develops and manufactures analytical and atmospheric technology. • 1LX Lightwave manufactures laser diode instruments and test systems for research purposes. • Wavelength Electronics manufactures laser diode and thermal control for electro- optical equipment. • Fluorescence Innovations designs, builds and markets instrumentation that measures the fluorescence lifetime properties for biotechnology research. 14 illonrana 5 we Univeirbv I Ecoeomic Impact Report 2010 University Research Company (Bozeman Affiliated) Employment Company (BoyemanAffiliated) Employment RightNow Technologies 450 Bridger PnotoMes 5 'Loot t00 Montane Molecular 4 Ligorgte 44 Fh;orescentlnnova7Drs 4 I Ughtwave 40 CT'W Energy 4 SelentificMate.ialsCorporation 30 Yevo 3 CDI Aerospace,/ Sikorsky 30 Western Feedstock Techrologies 3 Bocterin 28 Sustainable Bioproducts, LLC 3 5ustainablosystems 23 SpeciallyBiopolynrers 3 WaMength 20 Raslas 3 Clean Waste /Phillips Environmental 20 N'NB Sensors 3 32 Corporation 18 NanoMed Tech r.ologies, LLC 3 New Wow Research 15 MPA Technologies 3 Advanced Acoustic Concepts 15 Mortans Microbial Products 3 Autopllol, Inc. 11 Integrated Englaeering Soflaare 3 Project WET 10 BloSurfece Technologies 3 Microlab 10 MiCrobion 2 Hyperspecuvas 10 ! Hylilach - e Arcomac 10 Gray Matter Research, LLC 2 Resonon 9 Big Sky Statistical Analysts, LLC 2 Quantum Composers 8 Untbas: 1 GTCTochnology 8 Safflower lea pology Intl, 1 ARos Photonics 8 Pinyon Photonics 1 Reclamation Research GrDLp a Image Labs /Aspecl Components i Son sopath Technologies 5 FractorTechnologles 1 Montane Gluten free Processors (IFP) 5 Chronochrorre 1 15 The value of a college education is well documented. Benuflts range from increased earning potential to a more informed citizenry better health choices and even a more politically engaged population. 16 Graduate Earnings .Montana State University provides access to education and development opportunities to many state citizens. Graduates fill critical needs in communities across Montana, with specialization in health professions, on all campuses: alternative energy, especially at Northern and Bozeman; and distance education to serve all Montanans, most extensively through Billings and Grear Falls. The value of a college education is well documented. Benefits range from increased earning potential to a more informed citizenry, better health choices and even a more politically engaged population. Evidence from the economic impact study suggests that college is critical for the future economic status of individuals. Using !Montana data from the most recent American Community ,Survey conducted by the U.S. Bureau of the Ccnsus, the Bureau of Business and Economic Research was able to estimate age - income profiles for Montana men and women for four basic educational attainment categories: high school education, those with some college, those with a four -year college degree, and chose with a graduate degree. In all instances, earnings of workers rise rapidly early in their working years, poking in middle age and declining as individuals cut bash on hours or retire from the labor force, as shown in the figures. Yet the height of these earnings profiles clearly shows the impact of education on earnings through all stages of working lives. Since 1975, the average growth in inflation - adjusted gages for high school- educared Montana workers has been 0.6 percent per year. Over this same period, average -.,,-age growth for college- educated workers was 1.1 percent per year. Taking these differing growth rates into account and recognizing that higher earnings that occur in the future must be discounted to be comparable to dollars earned today, the Bureau of Business and Economic Research has computed the lifetime earnings premium that a 25- year -old man or woman can expect to enjoy as a result of educational achievements beyond a high school degree. Age /Earning Profiles by Educational Attainment —Men Earnings $140,000 $80,000 $60.000 $40,000 Grad $20.000 B.A. Some Ulleg: / Hlgh School 20 25 30 35 40 45 50 55 60 65 ilantana State Univeisin,1 Economic Impact Report Zn 11, As shown in the figure, the payback ro individuals for investments in educational achievement is substantial. A 25 -year- -old Montana man with a four -year col1W. degree will enjoy, on average, earnings over his working life that are worth $814,318 more in pros ent dollars than those he would realiae with only a high school degree, Tlie comparable figure for a 25 -ye2r -old woman with a four -year degree is $568,941. But these additional earnings are not only a reward for the student —they are a gain for the state economy as «eil. An educated worker is a more productive worker, and inercascd productivity raises the output and the competitiveness of the entire state economy. Higher output levels and higher compensation reverberates throughout the economy with in- creased spending, demand and state tax revenues. Earnings $ 70.000 $60,000 $50,000 $40.000 $30,000 $20,000 $10,000 Age /Earning Profiles by Educational Attainment —Women Hij.i School 20 25 30 35 40 45 50 55 60 65 Lifetime Earnings Differential by Educational Status, Earnings Relative to High School-Educated Workers . $926.6$0 ■ v�ornc, Some ccllege 5230,108 hlen $569.947 4-year Degree U1u,31d $sa4,6ss Graduate Degree $1,552,635 a $500,000 $1.000.000 516001000 $2.040,000 17 Visitors Montana State University Campuses generate significant visitor traffic, including visits by friends and families of its students and faculty and by those attending academic, cultural, and athletic events hosted by the University. Spending by these visitors who are traveling through The state are another way that the presence of the University enhances the econorny. Only spending by out -of -state visitors who are visiting the campuses was accounted for in the economic impact study, because it reflects the actual value added to the economy by MSU. A conservative estimate of this spending was constructed by consideri ng only one ty =pe of visitor- friends and families ofout of -scare students. Based on a Bureau of Business and Economic Research student expenditure survey conducted with nonresident UM students, it is csrimarcd that visitors stay in Montana an average of 35 days. Based on daily expenditure estimates of nonresident visitors seeing family and friends, it is cstimar- ed that tliese Trips generate spending of about $6.2 million wi&n the state of Montana. As shown in the table, travel, accommodations and food services account for the majority of expenditures. Without MSU, visitors' expenditures for accommodations, food, services, rersil goods and transportation would be lost to the state economy. Swroe: 8!trmeual8usigessanBFucaseno ftseoreha: The I10im0y of; W-fana Gases ao 2009 Tale. Male: A oampadwn of;hn ctats to 13 rep&I bid ?hP 1,00eiMy of Is rot aa¢m,7nVE and rear to !ru's ding (see page 5j MSV &act Fans. noes nar generale sig0canf nsiTar svenalrg Nonresident Student Expenditure Student spending plays a significant role in Montana Stare University's impact on the econorny, particularly the Bozeman campus. MSU draws in nonresident students to the stare that, in the absence of the University, would locate and spend their money elsewhere, For example, the Call 2008 enrollment profile of MSU- Bozeman was 28 percent nonresi- dent or 3,415 students paying nonresident tuition. Spending by these studesirs for living expenses represents dollars added to the state econorny. 18 ' 4lontana State I Economic impact Report 20)[0 Category Bateman 91111a4x Horthem MSU Total Retail trade 5333,000 $42,000 $16,000 $391,000 Transportation $1,269.000 ! $161,000 563,000 $1,493,DDO Rental and leesing services $52.000 S7000 S3400 $62,000 Idminisuative and support services $85,000 $11,900 $4,000 $100,000 Perlarmingarts and WeLatatSPOILS $83,000 $11,000 $4,000 $98,000 Muscment, gambling, and recreWdon $424,000 454,000 $21,000 $499,000 Accommodation $1,197,000 5152,000 $59,000 $1,408,000 Food services and drinking g' aces 5961,000 $122,000 $47,000 $1,130,000 Repair and maintenance 5631000 S81000 43,000 S76,ODD Other $815,000 5103,000 540,000 $958,000 Total $5,284,000 $671,000 $260,000 Swroe: 8!trmeual8usigessanBFucaseno ftseoreha: The I10im0y of; W-fana Gases ao 2009 Tale. Male: A oampadwn of;hn ctats to 13 rep&I bid ?hP 1,00eiMy of Is rot aa¢m,7nVE and rear to !ru's ding (see page 5j MSV &act Fans. noes nar generale sig0canf nsiTar svenalrg Nonresident Student Expenditure Student spending plays a significant role in Montana Stare University's impact on the econorny, particularly the Bozeman campus. MSU draws in nonresident students to the stare that, in the absence of the University, would locate and spend their money elsewhere, For example, the Call 2008 enrollment profile of MSU- Bozeman was 28 percent nonresi- dent or 3,415 students paying nonresident tuition. Spending by these studesirs for living expenses represents dollars added to the state econorny. 18 ' 4lontana State I Economic impact Report 20)[0 To generate an estimate of nonresident student expenditures for the MSU campuses, the results of a srudenr expenditure survey conducted ky the Bureau of Business and Eco- nomic Research Nvcre updated to 2008 using price information from the Bureau of Labor Statistics Consumer Price Index.lile results indicated that average non- housing expendi- rures K1ere $892 per month. Based on this information, the direct impact of nonresident student spending on Montana's economy in 7008 was approximately $40.8 million. Con- sistent across all four campuses, retail sales accounted for the largest portion of student spending, aside from housing, ar $28,6 mullion annually. Aside froth tuition, nonresidenr students' expenditures arc $67.3 million each academic year that they live in ,Montana. Category Borernan I Dlliings Norther MSU Total Retail Trade Establishments $24,330,055 53,082,509 S1,2001704 $28,613,268 Appaial and department stores $4,402,422 $557,767 $217,262 $5,177,451 Bookstores $3,000,022 1 $3_80.089 $148,053 I $3,528,164 vehicle purchases 5130,336 ( $16,513 $6,432 5153,281 Gasoline and veMcleservice S7690,325 I $974,330 $379,523 $9,044,178 Eating and drinking establishments S2,320,107 $293,947 I 1114,499 S2.723553 Food and liquor stores 54,585,763 15801998 $226,320 S5,393,069 Furr:iurreand appliance stores $217,597 $27,569 510,739 $255,905 Other retail stores I1 $1,983,482 I $251,298 I 597,886 $2,332,666 Servloes 52.388,868 $302,659 $117,892 $2,809,419 Medical, dental anc vision $282,084 $35,739 $13,921 S331,744 Auto, home, renters's health nr other incur- $211,208 $26,758 $10,423 $248,390 ance Beauty shops, barbers, laundries $414.557 $52,523 $20,459 5487,539 Theaters, golf courses and other recreation 51,187,555 $1150,458 558,607 51,396,620 services Hotels and lodging pracxS $284,918 S3B4O98 514,061 5335.077 Ulcattonal services, except MSU $8,546 511083 $422 $10,05: ' Utllltles $1,412,072 $178,903 569,687 S1,660,662 'Niter, gas and electric $258,234 $32,717 $12,744 $303,695 Telephone $652,916 $82,722 $32,222 $767,8610 Garbage oollec ion $46,253 $5,860 $2,283 554,396 Cable television $454,669 $57605 $22,438 $534,712 Housing $24,447,706 $3,097.415 $1,206,510 528,751,631 Apartment or huusr rent $1,885,499 $238,884 193,051 $2.217,434 MSU room and board $22,562,208 $2,858,531 $1.113,460 $26,534,199 Charitable Donations $108,553 $13,753 $5,357 $127,663 Transportation (bus, taxi, alillne) 13,720,092 $471,319 $183,589 $4,375,000 Other County Expenditures $810,314 $102,663 S39.990 $952,967 (Gallatin, yerlowstone and Hill, respectively) Total $57,217,660 $7,249,222 $2,923,729 Total Spondtrg loss MSU Boom and Board 334,655,452 S4,39C.690 51,710,269 540,756,411 Sotwcc wreav of &siness arc Emomic Rerearch ar the University orrAOnrana based on 2033 ava. fuft: A cm.panson ottre data in this reporrantl the Ummsrty of ton ana mk7rt is (sec page w/ Ar5t6Cooat Ws, dea to Its pnmar0y r1w^a. r r ear brovam bn, does rot Anna ate_ sa;ntficant VWIW Ssendtng. Aside from tuition, nonresident students' expenditures are $67.3 million each academic year that they live in Montana. 19 Statewide Economic Impact '• The Montana State University campuses, county Extension offices and Montana Agricul- rural Experiment Station significantly enhance Muntan;'s economy. The central contribu- Lion is educated students who are prepared For careers. These graduates command higher salaries and help to make Montana competitive on a national scale. "the results from the economic impact study represent the net benefits of MSU to the state as a whole. For I details, see Appendix on pages 30 -33. i Impacts Suininary—Campuser i i Category Units I Botoman Billings tlotthern Great Fatis Total 1 Total Employment Jobs 91018 1,587 800 416 11,921 1 - Private Sector Jobs 6,043 1130 568 _ _ 197 7,878 1 i Personal income S Millions 5723.3 $175.5 ' S82.A $16.9 $1,016.1 f Disposable Personal Ircome 5 MIAlons $596.2 j $132 $64_8 925.8 $916.8 i Population People 12,098 j 1371 995 $97 14,861 The Impact of Montana i Statt Tax Revenum s l4lluaus $16816 $36.5 s18.101 $7.51 $231.0 State University Is a i SOwre: BVrCe�oPBUSrnessa�rfEcavctnrcResaarchalir, �Ur� ,y,;y01(Rur'dL2se.or.2CG9Cara. state economy that is sore. A wripanson at the aster In :rfs report and Tre urr mP y of arxf mr be (Ste cap, 5i l Increased by 13,511 i Impacts jobs, including 8,891 category Units MAES additional jobs in the Total Employlnem. Jobs 1,590 Private sector. Those PrivateSectnt Jobs 1,013 jobs contribute more i Personal IRCDme $ )Aiuions $101.4 i Disposable Personal Income $ Millions than $1 billion in pre Population People 1,734 tax personal Income to I State Tax Revenues ! $ Millions S22.0 Montana households. l Sovrce: Fareau o1 Bps ;�ess end Economk rteseartih ar tAe Ur!urrstty oLLla�wra ailed Ca 20D4Aeta. ! Kole: A camparsat of the data v, this reportaW The Unlwvey of monrana revsrz is rot appmprtate and may bemi eaft(seergv5) i i i T7ie impacts reported represent the total contribution of the University to the state i aeronomy. 'The tables derail the differences between an economy with, and an economy i without, MSU, The analysis used the spending and enrollment levels as of fiscal year 2009 i (July 2008 June 2009) as a baseline. The present impact of MSU Is a state economy that i is increased by 13,511 jobs, including 8,891 additional jobs in rile private sector. Those 1 jobs contribute more than fat billion in pre -tax personal income to Montana households I and result i n nea rly 15,000 more people living the state, The accompanying tables sh(AN' i many of the ways in which MSU contributes ro ncc wealth and economic health of Mon- ! Tana. Among the highlights of the impacts arc: I i • More than $ol billion of pre -tax personal income. paid to Montana workers. i • $253 million of additional state tax collections. MAFS is estimated to increase state agricultural output by 0.75 percent per year. 20 i Montana State Unive airy I Economic Irnpae.. Report 20 Iii Statewide Economic Impact Compensation I,. 1 Station Cattig<lry I Units MAES Wage am Satary DMursements I categaly Units eoxelnan Billings Northern Great Falls Total j Wage and Salary Disbursements S Millions 570.2 1593 67.6 30.8 I 627.9 Compensation S Millions 688.7 191.9 80.8 36.3 997.7 Earnings by Place of rlrork S Milions 70119 194.9 83.1 37.8 1017.7 Average Annual Wage Rate S Thousands 0.690 0.235 0.094 0.041 Average Annual Compensatior. $ Thousands 0.831 0.282 0.111 0.047 Rate i Ave rage Annual Earnings Rate 5 Thousands 0.7,89 0.275 0.110 0.047 Sorrrca; Burauu Of OV44e0 add Ctwnomrc Rr al39rth of The 11niv001YOf ATonter,rr beseal on 200 0414, flair: A e mpvto: i of the dole m this report and 7110 UNI rsily ofblonrana repwl 13 riot nfWVt Ware and mey be rnslea4iog (seepage 5). Compensation imt cts— Monta na Agricultural Experiment Station Cattig<lry I Units MAES Wage am Satary DMursements I 5 Millions -- 68.4 Compensation i S Manors 87.2 Earnings by Place at Work S Million 9913 Average Annul lereRate $Thousands 0,027 i Average Annaal Compensalion Rate S Thousands 0.035 Average krnuat Earnings Rats S thousands 0,036 Source: 8areae of bvs. noss anu Economic Resoarctr at 1ho Wiversity of rhVnland Wised un 20J'.4dble. Rote: A calnnar'san of the doo in this sport and The 641i4crsdy ar Nonterna m?Forr rs not appropriate and Troy be mrslcadirr8 flee pag0 5). x M ?I Montana State University - Bozeman MSU- Bozeman delivers undergraduate and graduate educational programs; engages schol- ars in cutting -edge research and creative projects; and provides service to the state, nation and globe. Excellence In Education Montana State University - Bozeman was reaccrcditcd in 2010 by the Northwest Comtnission on Colleges and Universities and commended for the "ex- treinely high level of productivity and effectiveness" of its faculty. MSU- Bozetuan is desig- nated as one of 96 research universities with "very high research activity" by the Carnegie Foundation for the Advancement of Teaching. This highest rier classification----out of 4,400 institutions — distinguishes MSU- Bozetnan as the only insdtudon in a five -state region to achieve this level of research prominence. Revolutionary Research Although the core focus continues to be the education of students, research and education at MSU- Bozernan are inextricably linked. Faculty experts Men- tor students from field work and lab analysis to publication of findings. In addition to .� enhancing student learning, research produces new discoveries that lead to improvements _ in quality of life, positively impacts the economy through the creation of new companies 1 and jobs, and explores opportunities and challenges unique to the region. Scholars at MSU - Bozeman set a new record in fiscal year 2010, boosting the Univer- sity's research expenditures to $ 109.5 million— making it the state's leading research and development enterprise. Approximately two- thirds of this amount is expended for salaries, making the research activities of the campus one of the state's leading employers. Research i money is critical m providing students and faculty with cutting -edge technology and re- sources to make breakthrough discoveries. Major sources of federal funding in fiscal year 4 2009 were the National Institutes of Health, the National Science Foundation, the U.S. Department of Energy, the U.S. Department of Agriculture, NASA and the U.S. Depart i meat of Transportation. Areas of research expertise include: biomedical sciences, energy, environment, solar physics, agriculture, optics, cold regions sciences, Yellowstone studies, s earth sciences and transportation. Economic Impact New research findings at MSli- Bozeman lead to advances that can be ap- plied to global challenges. I.n addition, these new discoveries have a significant impact on the state and local cconom): Many of the discoveries that have commercial potential are licensed i to Monrana companies. !vISL- Bozeman contributes to Montana's economic development in five major ways: i i Business Assistance MSU - Bozcman houses a number of business assistance pro- grams that range from manufacturing expertise to help businesses maximize profit i ability and efficiency; to access to premier R&D facilities and resources to facilitate business innovation; and assistance for businesses pursuing Stnall Business Innova- tion Research (SBIR) funds. • Workforce Development Research participation provides students practical, hancis- jon experience, better preparing theta to compere for jobs and make an immediate r impact when they enter the workforce. I i Technology Transfer MSU - Bozcman has nearly 200 active technology licenses for i discoveries and more than 100 patents have been issued for discoveries. I 22 MnnWna Sixk UnivOSh}• I EconunUc Impact Report io 10 Campus Close -ups Montana State University - Billings Measuring the overall impact of a university in Montana's largest city can be done on a variery of levels. As a vibrant institution scrving a diverse constituency with varied needs and expectations, IMSU- Billings has grown into its role as a conduit to educational oppor- tunity, not only for billings, but also for the entire state. %'Vith traditional undergraduate education as its core, the university also embraces alternative pathways for student success. MSU - Billings has become a leader in providing educational opportunities in areas of two -year education, distance learning and outreach. Two -year education As one of Eve academic colleges at MSU - Billings, the College of Technology is the point of access for many students in the region who are seeking general education or specific workforce skills in high - demand areas. Enrollment at the two -year campus has grown from 482 in the fall of 2001 to 1,531 in the fall of 2010. More than 61 percent of the students at the CUT are from Yellowstone County, with an increasing number of Hispanic and American Indian students. Graduates in those programs have a major impact on the economy by filling jobs in the healthcare, energy, automotive technology, and computer networking and business sectors. About 95 percent of those graduates remain in Montana to work and raise their families. Through a unique partnership with Billings School District 2, the COT also provides Adult Basic Education and GED access. Distance education Recognized as a statewide leader in distance education, N1SU- Billings is committed to integrating technology and teaching in new formats for the next genera- tion of students. Because 40 percent of MSU- Billings' student body is over 25 years old, and many attend part-time, the flexibility provided through an online format is critical to their success as they juggle education, work and family responsibilities. About 16 percent of MSU - Billings students in fall 2010 were online -only students, taking classes from their hones in nearly every county in Montana. Producing more than Just an a la carte menu of courses, the distance education portfolio includes 21 fully online degree programs and 275 fully online unique courses. In fiscal year 2010, MSU - Billings' online programs produced 29,997 student credit hours, the most in the Montana Univer- sity SYstcrn. 'The strength and reach of the distance education program at MSU- Billings also provides for important system collaborations. These include engineering with MSU - Bozeman; health informatics with Montana Tech of the University of Montana; and surgical technology with the University of Montana's College of Technology. Outreach As part of its public service and with the assistance offedcral funding, Y1SU- Billings has built programs to address needs of underserved populations: • The Pathways to Self-Sufficiency prograin at the Montana Women's Prison has pro- vided about 70 uromen with academic and workforce training in an effort to reduce recidivism and increase overall educational attainment. • °ihe Garfield C'•ommuniry Outreach Center, providing free or inexpensive access to basic skills training on the city's South Side. 23 Montana State University - Northern MSU- Northern was founded in 1929 and has served Havre as an academic hub for the Hi -Line and north central ?Montana for more than 80 years. The town's dedication to MSU- Northcrn and the campus' commitment to the Hi -Litre has always been the founda- tion to every program offered. Distance Education MSU- Norrhern has long been a pioneer in distance education. The NorthNet system was one of the largest interactive television networks in the U.S., which reached 52 high schools across the state, 'These innovarions and transition to the Internet has made it possible for students to access a MSU - Northern education from home. Three Campuses MSU- Northern has campuses in Havre, Great Falls and Lewistown. These facilities snake it possible fnr MSU- Northern to offer on -site instruction in practical programs like nursing, education and business. Transferability Most of MSU- Northern's programs have a two-year associate's degree that leads to a four -year bachelor's degree. This approach makes it possible for a student to start by getting the two-year associate's degree and enter the workforce sooner. It also gives its students the opportunity to go back to college at a future date and seamlessly finish their bachelor's degree. This approach to education makes MSU - Northern very unique and appealing. Out of the 22 bachelor degrees offered, 18 of them have a two-year associate's degree option. The University also has many articulation agreements with other two - and four -year institutions to make it possible to continue education without starting over. Innovative Programs MSU- Norrhern's diesel program is in high demand because it is one of only a handful of four -year diesel degrees in the country. This puts students in high demand for management positions in major companies like BNSF, General Electric, Cat- erpillar, Kiewit and Tractor & Equipment. Northern is also the hub for many state pro- grams like the Montana Motorcycle Safety program, Montana's Veteran Upward Bound, Montana Environmental Training Center and nine Educational Opportunity Center sites. Blediesel Research MSU- Northcrn's Bin - Energy Center has a strong focus on biofuels and heavy duty diesel engines. This internationally recognized center is able to conduct comprehensive studies on biofuels, from the seed ro furl processing, furl testing, engine testing and real -rime emissions monitoring. Recently, the center partnered with Burling. ton Northern Santa Fe Raihvay (BNSF) to conduct a comprehensive test to utilize 20 percent biodicscl blend for fuel in a switcher engine. BNSF is the second largest diesel fuel user in the United States and consumes 30 million gallons a year in Havre alone. This is a year -long project that will demonstrate the performance of biodiesel under adverse weather conditions in Montana. Unmanned Aerial System (UAS) Testing MSU - Northern, MSU- Bozeman, Mississippi State University and Rocky Mountain College are exploring the possibility of conducring research and testing on UAS's. h4SU- Norrhern is located in the middle of a large, sparsely populated, military operarions airspace (MOA) chat is conducive to drone testing. Re- search possibilities include MSU - Northern examining aspects of biofud use for the drones. The College of 1~ ngi neering ar MSU- Bozeman could potentially do research in design and engineering and the aviation program at Rocky Mountain College could handle the avia- tion simulations. 24 1 l tunLana SLUZ Univcrsiep I Ewnomlo Impact Report ZUltt Montana State University -Great Falls MSU -Great Falls is a community asset — serving the educational and career goals of more than 2,500 individual students. Partnerships with key cmplovcrs in north central Mon- tana ensure that student learning specifically meets workplace needs. • MSU -Grear Falls celebramd a record number of graduates in 2010 as 301 degrees and certificates were earned by 278 students. • ?he total number of high school students enrolled in college courses with MSU - Great Falls increased 15 percent in Fiscal Year (FY) 2010 over FY2009. • For its service to military students and families, the college was designated as a !vl& tary Friendly School for 2010 and ranked in the top 15 percent nationwide. Service to these students and others has resulted in a retention rare increase of 6 percent in 2009 -10 and 16 percent since 2008. Fiscal Stewardship Although it has some of the most expensive programming, spending at MSU -Grcat Falls is less per student than nearly all other institutions in the Montana Uni- versity System. 'lie state funding received for each student in FY2010 was $4,731, repre- senting an annual savings to the state of Montana of $2,201 for each student who chooses to begin college at MSU -Great Falls rather than a public four -year college in Montana. • '(lie total annual expenditure per student at MSU -Great Falls is approximately $2,000 less than the average for the Montana University System ($7,924 compared to $10,134). • Annual tuition at MSU -Great Falls averages $2,997 compared to $3,821 at Mon- tana's four -year public colleges. Workforce Development Montana students earning a certificate or associate degree are more likely to stay and work in Montana than those earning bachelor or master degrees. Workforce development statistics from the Office of the Commissioner of Higher f duca- don, show that 82.5 percent of resident Associate of Applied Science graduates entered Montana's workforce within one year of graduation. • Students earning an associate degree in FY2009 earned an average salary of $29,098 in FY2010. • MSU -Grear Falls offers 14 of the 19 healthcare occupations offered by colleges within the Montana University System. Zhe average salary of healthcare graduates, regardless of degree level, was S39A00, 35 percent higher than the average Montana University Systcm graduate. • Despite the recession, in -field job placement for graduates has remained strong with 76 percent of graduates reporting employment the fall after they graduate. Of the FY2009 graduates, those in dental hygiene started at the highest pay rate with an average hourly salary of $27.89. Physical therapy assistants, practical nurses, radiology technicians, and respiratory care graduates earned a starting hourly of salary averaging $18.28 to $20.67. In the past year, students achieved 100 percent pass rates on national exam for respiratory care, dental hygiene, surgical technology, practical nurse, and physi- cal ncCrapist assistant. N • 25 I Montana Agricultural Experiment Station The Montana Agricultural Experiment Station is a vibrant and high impact research and 1 outreach program with statewide impacts to agriculture and natural resource comniuni- ties. MAES is a prog,ramniatic and financial partnership between the State of Montana and federal U.S. Department of Agriculture (USDA). The primary focus of MAES is research, which complements agricultural undergraduate, graduate and outreach educa- tion through split appointments with MAES- supported faculty, staff and facilities. This arrangement allows MATS and the College of Agriculture at MSU to leverage and maxi- mize efficiencies with scarce resources. Montana Agricultural Essential Research MAES conducts research in agricultural and natural resource systems Experiment Station from multiple Montana locations: the main station (Bozeman), seven research canters economic benefits (Conrad, Corvallis, Creston, Havre, Huntley; Moccasin, Sidney) and allied farntlranch i properties. Research results provide short- and long -term impacts throughout Montana by • ,'MAES research ! focusing on key challenges that food producers face and additional future discoveries that programs add nearly 1 will maintain Montana's agricultural competitiveness in a global market. Selected research 1,600 jabs, $22 themes encompass small grain and livestock production; food biosecurity; sustainability, mullion in state tax 1 stewardship and management; bioenergi, integrated pest management; infectious disease; revenuc and more than trade and policy analysis; and environmental science. Stare and local citizen -based adviso- $100 million in per- 1 ry groups provide guidance for MAES research activities to address future challenges from sonal income, accord- E Montanan largest natural resource industry. ing to the Economic Impact Report. Examples of vital research projects impacting Montana agriculture include wheat stem • MAES employs 160 sawfly and noxious %needs. Wheat stern sawfly is the major pest to Montana crops. Re- faculty and staffh TE. i search has created new solid stem varieties in spring and winter wheat, developed akerna- rivc management strategics to combat losses, reduced fuel and chemical costs and in- • MARS- sponsored 1 creased yield. llie research improves income to producers by at least $10 million annually, research expenditures 1 Integrated noxious -Aced rangeland research has led to: a reduction in herbicide use which total more than $22 saves at least $4 million ($4 per acre); an increase ill forage production through manage - million over the last F meat based upon Animal Unit Months, an increase of at least $5 million ($5.20 per acre); three years from public. � and prevention of current spread and future invasions, a savings of $10 million per -mar and private external ($20 per acre over 10 years) fora total of$19 million a year. funds. In addition to job creation, these l Economic Impacts MAES research supports the State's primary industry — agriculture. discoveries result in I Cash receipts Isom the marketing of agricultural commodities were -$1.72 billion for crops numerous licenses and € and $1.18 billion for livestock products and the total value of agriculture to the State's parents. economy is $3.8 billion (in 2008). Revenue from diverse agricultural activities fuels the I Montana economy across all economic sectors and sustains rural and urban communities. ' While an integral part of Montana State University's land grant rnission, MAES does I not receive any funding from tuition, Fees, or other sources. The State General Fund sup - ports 84 percent of the MALTS appropriated base budget through House Bill 2 and serves as a required match to the federal capacity Funding (16 percent of MAF.,S' budget) ap- t pro riated through the USDA National Institute for food and Agriculture NIFA NIFA provides program funding and research program direction. Additional funding for MAES l facility repair, renovation and new construction has been supported through the State. Long Range Building Program (LRBP) with many projects leveraging state appropriations i i through privatc giving. i 26 Montana State Univctsi:y l Ememic Impact Report 2010 Montana State University Extension The mission of Montana State University Extension is to share research - generated knowl- edge throughout the state by making it accessible and useful to individuals, farnil ies and communities, empowering them to improve their quality of life and strengthen agricul- ture, forestry and other businesses. To meet the educational nerds of Montanans, Exten- sion coordinates all appropriate educational and research resources in the region through campus -based specialists and county and reservation agents. MSU Extension has 188 FTE that includes 80 campus -based specialists and staff and 108 county -based Faculty /staff located at 62 offices across the state serving all 56 counties and five reservations. To deliver the practical advice and information needed by Montana's agricultural community, Extension taps into the resources of the entire university system. Primary concerns related to agricultural sustainability and profitability, natural resources and the environment, and rcehnology transfcrlvaluc -added opportunities arc addressed through outreach efforts across the state. Extension's Fancily & Consumer Sciences program area serves people and families of all shapes and sizes —from the elderly to kids, from single parents to stepfamilies. Topics include food and nutrition, housing, health, family issues, personal finance, environmen- tal health and many other subjects useful to Montanans. Onc such program emphasizes nutrition education for families with limited resources. Montana 4 -H annually reaches 23,332 Montana youth, ages G -19. About 49 percent of these youth are involved in year -long community clubs, while the rest arc active through a variety oFshorr term and special interest education programs. These youth are supported by 4,551 trained adult and youth volunteers who lead local programs and activities. Community and Economic Development Programs focus on addressing the needs of communities throughout Montana. Thirty -five com rnu nities have completed the Hori- zons program, an 18 -month comprehensive process to address local needs for leadership development, asset development and strategic planning,. Tlie local Government Center provides certification and training for county commissioners, clerks /recorders and mayors and workshops for locally elected and appointed boards. The strategic plan for Extension outlines strategies and action plans for meeting the challenge of helping Montana families and communities thrive through practical applica- tion of research -based information. Tr is based on the integration of extensive input and advitt from ANiontana citizens, advisory boards and Extension personnel. iiC %orking groups of Extension staff, an coverall planning committee and the Montana Extension Advisory Council chart annual progress in achieving the goals and objectives for each major issue identified in the plan. I i Conclusions r Montana State University impacts every part of the state, providing education, research and outreach that drives creativity, productivity and economic activity. With campuses in all regions of the state, Cxtension presence in all 56 counties, Mon- tana Agricultural Experi ment Station main campus and seven research centers and the largest distance learning system in the state, MSU reaches all Montana communities. MSU plays a critical role i While it is impossible to measure all of the benefits of Montana State University, this in Montana's economy. I report underscores several key areas which can be quantified. The economic impact analy- The University will sis only measures revenue that is added to the state because of the University; no Montana - continue to be a major based funds, such as state- appropriations or resident tuition arc included in Elie figures. educational leader and s (used on 2008 -2009 data, MSU adds 13,511 public and private jobs to the state's powerful economic economy. This generates more than $1 billion in personal income from the four campuses engine for the state, and MAFS, which equates to 5897.7 million in after -tax income and $253 trillion in state tax revenue. improving the quality of i life for all Montanans. f MSU's research innovation has led to the creation and growth of businesses throughout i the state, providing employment opportunities in industries such as agriculture, energy, i construction, healthcare and technology. MSU plays a critical role in Monrana's economy. The University will continue to be a major educational leader and powerful economic engine for the state, improving the qual- i ity of life for all Montanans. l t I i i l i i l 1 l i f i i I l i I i { i 28 bion._n : + State Univmkv Fcono nlr. impact deport 'rn m Appendix: Statewide Economic Impacts Employment Impacts—Campuses Industry Bozeman Billings Northern Great Ftlis Total forestry, Fishing, Related Activltles, and Other It 1 0 0 0 Mining .54 C 1 4 • Utilities 14 5 _ 1 22 COASIMU4n 740 143 46 22 951 Manufacturing 236 2 D 239 NiholesaleTrade 119 30 10 4 163 Retall Trade 1,084 251 119 50 1,504 Tr inspartalion and ylarattoesing 23 7 2 4 32 Iriorma;ion 221 13 c 2 240 Finance and insurance 115 I 41 12 4 172 I Real Estate and Rentat anc Leasirg i 210 I 40 15 5 1 276 Professional and Technical Services I 1,143 1t19 6o- 20 1,332 Managamental Companies and Erterpilses 12 1 1 D 14 Adminisaativeard Waste Sernces 322 76 27 11 436 Educational Services 1,406 ?92 167 161 2,126 Health Care and Social ASSIS'.arce 960 184 108 40 1292 Ars, Entertainment, and Recreetion 214 47 23 9 293 Accommodation and Foco Services 561 98 r,q 21 729 Other Services, except Public Adrnlrlstratian 719 39 67 26 951 State Govemment 476 25 37 is 556 Local Government 445 85 53 23 603 Total 9,018 1,687 800 416 Source: Bureau of 8usuress and£cahorrs,Yasearch a Me urtrersi'y or ldar!ava how doa 2009doto, Nate: A oamparkrron of Me data !n tm5 repoa and the Ur,wrsl!yatrdWrr!ana rep on Isnot apprepr+nto and way to (see riv 5). •Negaara ims can ooce!Aecause o! the !R!pac! ,NSu Pas or, wages. As a errpieyor, the praswco cf ,?iSU uxiwt wMes higher-rah rnay. marginaltf. Nsewrage some car. raanks from experrdlrtg/ot»r wr;g 30 1 Mrnuana Srarr ;m;"ryin I Econornic Impact Report 2u 111 Appendix Industry 61AE5 Faiesoy, Fishing, Related Actlntles, and Other 293 Miring 0 Utilities 7 Cons:racuon 152 hianuiactuling 2 Vitolesale Trade 49 Retail Trade 86 Transportatlon and Warehousing 1 Information 2 Finance and Insurance 11 Real Estate end Rental and Leasing 105 Professional and Technical Senriaes 232 6lanagumert of Companlos and Enterprises -14 AdminiwWoe and Waste Services 41 Educational Services 10 Health Care and Social Assistance 77 Arts, Entertainment, and Recreation 19 Accommodation and Food Services i 67 Other Services, except Public Adminlstratlan 47 State Govemment 149 Local Govemmem 242 Total 11590 Source: bu; eau a Basiress and Fcomomrc Raswch at the tnuuemy ofMontsra based nn 2009dara. fJOCe: A. cempanson of the data .A tns report aro (be Un+re's,tp of btonram mperi ss rur anjamprmte and may be rnisreadtng (seepage 5). •fi,egebve Jobs car, occu, because of Me Anpaet tdSU tus one wages. As a .arge e: rplcgef. rhe,prasenee of XiSv makes wages hohef —w.hmn tray, margmauy, 0s ounige some cornpartes ftm excaromg/cpera?.ng. 31 Gross Domestic Product 1 Sector, { { industry Bozeman 9118ngs Northern ©Feat Falls Total Forestry, Fisning. Rela-ed Activities, and Other •0.3 0 0 0 -0.3 Mining •0.8 0.2 0 0 42 t VIfties 9.4 2.2 :.1 0.5 13.2 Construction 35.8 9,1 2.2 1 47.1 Manufecturirg 59.2 0.3 0.1 0 59.6 Wholesale Trade 21,3 b.g 19 0 -6 29.8 Retail Trade 1113.9 :0 10.5 4.4 138,8 Transportation and' Warehousing 215 0.8 0.1 0 3.4 Information 57.7 25 1.1 0.5 61.8 Finance and Insurance 18.1 6.2 2.2 0.8 273 Reel Estate and Rental and Leasing 30.7 5.2 1.8 0.6 383 Protessiorel one Technical Services 67,6 5.3 "s.A 1.1 78.A Management of Companies and Enterprises 1.4 0.1 0.1 0 116 hdministrative anc Waste Services 13.2 2.9 11 0.5 17.? Educational Services 17.3 6.2 3 2.9 29.A Health Care and 50631 Assistance 56 13.5 7 2.7 79.2 Arts, Entertainment, anc Recreation 9.7 1.6 1 01•9 11.9 AcOnmmodatIon one Food Services 12.9 2.3 1.? 0.5 16.8 Other Services, except PCblic Administration 16.3 3.5 .6 016 22 Source: Wreaa orHustness and EcagnrrctiessarcN at the unlversrfyar [iodraoa based on 2GG9 etas. file: A ccvneanscn c; the data m.n's repwi and Tire "JgIVarslrp WAUAW Ia 1100. is Aw apwapn a andmaj be misreading (see ()o& 5). 32 hlontana Staic Univrrsa:p I Econom'C Impr.{:t Report 7e.; I o Industry MASS Forestry, Fishing, Relates Aeth�ltios, and Other 2.4 Milling 0.0 Utillties 4.9 Construction 13.5 Manufacturing 1.0 Wholesale Trade 15.2 Retail Trade 10.0 Transportation and Warehousing 0.4 Irformatlon 1.4 Finance and Insurance 4.9 Real Estate and Rental and Leasing 17.0 professional and TeMiceI Services 18.4 Management of Companies ano Enterprises •0.1 Administrative and Waste Services 2.5 Educational Services 0.1 Health Care and Social Assistance 6.8 Arts, Erlertainment, ana Recreation 0A Accomtnodargon and Food Services 1.9 01.herServices, except Public Administration 1.5 Sawoe. Sweati a Business and EcanovW Research at The Uhncmiryof tiatOwe! bmd are 200.5 We. .vote: A C0M.LMn?}ar_ n: the data 1r, rNs rerorraad fh.. (IN newly arMvIIaIw rep 0)114 -rot dfip rap ,afs ant' maf he misreading (see page 51. )i MONTANA STATE UNIVERSITY BOZEMAN I BILLINGS I NORTHERN I GREAT FALLS MSU Extension Montana Agricultural Experiment Station This publication was prepared by MSU Creative Services and produced with non -state finds. r do- + ILN • S j� • � y 1 r C 4 N` 4 EXHIBIT G LEGAL DESCRIPTION OF SOUTH BOZEMAN TECHNOLOGY TIF DISTRICT Tract C- IA of Minor Subdivision 195A situated in the ncarth 117. of Section 14, T2S, RSE, P.A4., Gallatin County, Montana, and being further described as follows: Beginning at the southwest corner of Tract C-1A of Minor Subdivision 195A; Thence along the west line of said tract N0012'32 "W a distance of 935.69 feet to a point on the south line of Tract I of Minor Subdivision 195: Thence along said line N75 °14'50" E a distance of 280.20 feet; Thence along said line N89157'48'--E a distance of 30.00 feet; Thence along the west line of Tract C -1A N01101 1 TV it distance of 259.99 feet; to a point on the south right -of -way of West College A-,.,enue; Thme:c along the said right of way N89058'42 "E a distance of 1156.13 feet, to the northeast corner of said tract; Thence along the east line of said tract S 14°4622 "E a distance of 215.13 feet; Thence along said line S32'37'32 "W a distance of 307.89 feet_. Thencc along said line S49 °45'54 "E a distance of 3 87.53 fie#, to the northwest right-of-way of Technology Boulevard; Thence= along said right -of -way on a non - tangent arc to the left with a radius of 270.00 feet, a central angle of 6 027'39" a distance of 30.45 feet, chord bearing N49 122'20 "E and chord length of 30.43 feet; Thence S46 °43'30" E a distance of 60.06 feet, to the srnttheast right -of -way of Technology Boulevard; Thence on a non - tangent are to the right with a radius of 330.00 feet, central angle of 200.32'11 a distance of 11818 feet, chord bearing S55 °53' 19 "W and chord length of 117.65 feet; Thence S00° 10' 16"E a distance of 475.74 feet, to the southeast comer of Tract C -1 A; Thence along the south line of said tract 589050'45 "W a distance of 1311.69 feet; Thence along said line S89 °34'27 "W a distance of 270.56 feet to the Point of Beginning. The land described herein contains +1- 41,97 acres. SEE EXHIBIT B. I, flans J. Streufert, Montana Professional Land Surveyor License No. 1697I LS, hereby certif}' that I have prepared Exhibit A and Exhibit B for the Proposed Montana State University lnnovatiot) C:atnpus TIF llistrict. r FHAMS .4 Hans J. S treuferti111,5 Ite � JO FF-RT 71 5'�9 O� 1,11 \5 V4SU Tiff M` rt2'ict1,1V1612 ::pda °e5 Legal 3escripticr. � s1143d 112 rn � l--L -� I�'IT I - -� � NYI I zP I arU WK i 2 A VI L7 rn � l--L -� I�'IT I - -� � NYI I zP I arU WK i ,r a I WGE-.i lV17ff- N A1 inch = 2,000 feet 1.5 0.26 0 EXHIBIT H 0.5 Mile 114 Legend Proposed Technology TIF Boundary �I Northeast Neighborhood Ulan Renewal District orth 7th Tax increment Districi Mandeville Farms Tax Incremeni District '+1 Downtown Tax Increment District rV Road """.'Alley City Limits E•A'�A,TN �'i' ,� ....