HomeMy WebLinkAboutC2. MSU Innovations Grant1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Authorize the City Manager to sign, as co-applicant with the Montana
State University Innovation Campus, the Economic Development Assistance Program Federal Funding Opportunity for Investments for Public Works and Economic Development Grant Application.
MEETING DATE: April 13, 2015
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the City Manager to sign, as co-applicant with the
Montana State University Innovation Campus, the Economic Development Assistance Program
Federal Funding Opportunity for Investments for Public Works and Economic Development Grant Application.
BACKGROUND: Montana State University (MSU) has grown into a regional leader in
research and creative projects totaling nearly $112 million in research expenditures in Montana
each year. These achievements have led the Carnegie Foundation for the Advancement of Teaching to recognize MSU as one of 96 research universities nationally with “very high research activity.”
Montana State University's Innovation Campus (MSU IC), sited adjacent to MSU, is
envisioned as a collaborative campus, designed to break down silos and remove barriers raised in classrooms, field research stations and laboratory settings, while encouraging a culture of entrepreneurship and innovation. The MSU IC environment will also focus on accelerating
technology transfer from the university laboratory to the marketplace, providing opportunities for
economic growth and development, creating jobs and further diversifying the local and regional
economy and increasing MSU's national and international research competitiveness. MSU has strong ties to industry in the Bozeman area, particularly in the life science,
aerospace, agriculture, engineering, information technology and photonics sectors and lists
relationships with over 150 companies that span research support, licensing agreements, and
consulting services. The concentration of research activity and development of technology-based companies is a significant contributor to Bozeman's emerging entrepreneurial technology economy.
The Innovation Campus will target natural clusters that have already formed through
cooperative relationships between the University, the City of Bozeman and local and regional
27
2
industry, such as photonics, optics and lasers, photovoltaic, information technology, predictive
analytics, social innovation, health care information technology, pharmaceutical, bio-fuels,
agriculture, alternative energy, bio-films and nanotechnology.
In July 2013, Montana became the 5th region in the United States identified by the Blackstone Charitable Foundation for initiating a Blackstone LaunchPad Entrepreneurship
Center. In November, 2013, LaunchPad opened their doors at MSU's Student Union. This
program is another resource that provides MSU students and faculty with a network of
entrepreneurial support. The MSU IC will network with the Blackstone LaunchPad Entrepreneurship Center to engage students and faculty with externships, research and/or employment opportunities that allow them to be exposed to opportunities as pre-trained hires or
consultants to provide experience with business culture and business structure. In other words,
the MSU Innovation Campus will be the "landing pad" for the Blackstone LaunchPad.
Companies are attracted to the wealth of education and training available in an Innovation Campus. The availability of student interns, graduate research assistants, and MSU
faculty consultants may lead a company or entrepreneur to the next stage of business
development. With access to experienced mentors, experts and engaged investors along with use
of state-of-the-art laboratories, facilities and equipment, the MSU IC will appeal to start-up companies or those in early stages of product development as well as mature companies seeking some of the same support.
State and local interest in the MSU IC focuses on the natural outcomes of workforce
education and training, the increase of high-tech startups that develop and strengthen clusters, the reversal of the outward migration of ideas and talent, and the recruitment and retention of the best and brightest students, faculty and staff. The MSU IC has the potential for significant
positive economic impacts to the community, the region, and the State of Montana. The business
sectors supported by the development of MSU IC add economic diversity to the region, have
high-growth potential, and generally provide mid-to-high level wages. Additionally, the development of MSU IC increases the amount of public infrastructure in the area and, consequently, the values of properties within and surrounding MSU IC. The economic impact of
MSU IC development also includes increased opportunities for elementary, middle and high
school students, and others to work and gain experience at MSU IC with MSU researchers and
private companies. The leadership at the MSU Foundation and the MSU IC strongly believe that the EDA
infrastructure grant application has a much higher chance success with the City of Bozeman as
co-applicant. Staff agrees. The long standing partnership between the City and the MSU IC
demonstrates the need for collaboration and cooperation on this important economic development project. As a co-applicant, the City can meaningfully partner with the MSU IC at this critical moment in the evolution of the development project without assuming the
responsibilities and obligations associated with EDA grant accounting, reporting or compliance.
The purpose of the EDA grant is to leverage the value of approximately $1.8M MSU IC dollars
for development of the site and the construction of public infrastructure. (Attachment 1) FISCAL EFFECTS: The requested grant amount is approximately $1.8M with a match
requirement, to be supplied by the MSU IC, in the amount of approximately $1.8M for a total
project amount of approximately $3.7M. Under the current arrangement, the City will incur very
little in the way of expenses. If awarded, the MSU Foundation and the MSU IC intend to manage all aspects of the grant including project and contract management, receiving and
28
3
disbursement of funds, associated accounting and compliance and reporting responsibilities,
among other tasks. The City will take responsibility for inspecting and accepting the public
infrastructure components of the project, consistent with other development projects where
public infrastructure is installed. (Attachment 2) ALTERNATIVES: As suggested by the City Commission.
Attachments:
1) EDA Grant Application; and 2) Letter from MSU Foundation.
Report compiled on: April 1, 2015
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
102