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Home My WebLink About01/10/2023 04. Business incubator program discussion 1.`ti.. • iV4t 'L)cii0v1P4 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4. For Meeting of: January 10, 2023 ITEM TITLE: Business incubator program discussion SUBMITTED BY: Rosylen Oglesby,Assistant City Manager SUMMARY EXPLANATION: Background information that would aid in discussion with City Council regarding business incubators and the city's role in this process. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 0 Business i nuubator ppt 12/27/2022 Corer Memo 0;r: �-'1j i ' , ..._ r _ -,,_.:.-, - i - ..„ , .___ • . .M - ------: , .: pattizit,.,.. _.,,;—__ Irirr f- „..i . • : , . - ...40941L d 3 , ,e_ . tad. ,. ,. 4.* r ._ .. Pan So .., 11. 4,1 .. - L Business • ', ` AC� n c u ba orsf 4, . a/iC 1 : :.. . .: : : Ir... ,•,,. .., 1114‘;iiiii: 5. ii . - --,,,, I- City Council Study Session January 10, 2023 Overview The purpose of the presentation is to provide background information that would aid in discussion with City Council regarding business incubators and the city's role in this process . What Are Business Incubators ? A multi-tenant facility that provides young or startup businesses with affordable space shared support services , and business assistance to foster successful entrepreneurial development. It nurtures startups by helping them to survive and grow during the beginning stages when they are the most vulnerable . ,„„ , oss, •Ec��a.�=va Development Incubators o,c.,,a...,..,rv,a.p„ Types of B Incubators Main philosophy: Main objective Secondary Sectors involved dealing with Mixed Employment Business gap Create startups All sectors Incubators creation Economic development Regional or local Regional Business All sectors incubators disparity gap development creation Stimulate Focus on Technology Entrepreneurial Create innovation, technology recently incubators gap entrepreneurship technology targeted, e.g., IT, startups and speech, graduates biotechnology Social Integration of Employment Social gap Nonprofit sector incubators social categories creation Basic research Discovery gap Blue-sky research Spinoffs High tech incubators Source:Aernoudt R. (2004) Incubators:Tool for Entrepreneurship?Small Business Economics, 23, 127- 135. https://doi,org/10,1023/B:SBEJ.0000027665.54173.23 P 4•CityCouncil StudySession• Business Incubators Discussion•January10 2023 9• � Types of Services Services can include , but are not limited to : • Shared Office Space • Access to Equipment • Flexible leases/expanded space • Professional Services • Help with Business Plan CEDS : Yakima Startup Incubator Project We we Yafzinict comprehensive plan 2040 YAKIMA DOWNTOWN MASTER PLAN BASeptember 2013II 1F L it 1- . Yakima Economic Development ;` ': "aje: Strategic Plan ; ` ' .� Ji A plan to spur and sustain the growth of Yakima's Economy over the long term t y ? `r`.4tij ' t V' a,Nt t Off • , 11 2�,t , y ill 1 City of Yakima - 1 - ' . ) ,1' ).::1''- iGandall Arambula.Fehr d Vrrr. • , Ne YAKIMA,WA - ....addhikitn_ 2017-2020 Pg.6 •City Council Study Session • Business Incubators Discussion •January 10,2023 Industry C EDGE SATE CLUSTER CLUSTER SUSTAINABLE AVIATION TECHNOLOGIES AND ENERGIES Pg.7 •City Council Study Session • Business Incubators Discussion •January 10,2023 Tadzo Presentation YAKIM A PROJECT OVERVIEW ECONOMIC DEVE ii. TRATEGIC PL Presented by:Allison Larsen,CEcD— 'Pill Phase I Phase II Where are Where do you How will you want to be? get there? Current Situation rtrategic PrioritieR Phase III you now? I- Action Pia. Pg.8•City Council Study Session• Business Incubators Discussion•January 10,2023 4,. ,-„, 2 Tadzo Presentation continues . . . Areas Examined: Criteria for Rating Factors — • Business Climate Community Competitiveness • Real Estate • Transportation Utilities & Infrastructure =World-class competitive advantage. •• Permitting & Regulatory Environment = Competitive, but missing key elements. • Human Capital — Skills, Talent Relocation, • C = Neutral; found in many communities. & Pipeline • • Entrepreneurship & Innovation Resources D = Fundamental assets are missing. • Sustainability • F = Disadvantages so great it could be a "deal killer." • Incentives • Convention & Visitor Portfolio Pg.9•City Council Study Session• Business Incubators Discussion•January 10,2023 Tadzo Presentation continues . . . Bring wealth into community by selling outside area/economic region x Bring wealth into community via visitor spending (traded-sectors) 14 Tax base •• Tax base 111 r1 grows: • A lr1 grosales ws:& sales& "' - wgim property , �� w ®property Illj ' ' El El taxes \r taxes 1 1 . J 11 ,,, , Creates jobs for families IMI 411M11 44 le Creates more HOTEL 4.,,, i-r - _ ,� jobs& =? d supports . Stimulates non-traded-sector business growth O • 111.c J I ei J traded edor growth .. ..• ,� Suppliers .• � •• Stimulates non-traded-sector business growth T 1 lifid)r.1.111111111411111601 Il 'PF ill it • 11,,,,,,,,,,,,,,,, m‘11=M - Or 1Mr i4 Grows demand for real estate&construction AL ■l& Grows demand for real estate&construction Stimulates more non-traded-sector business growth P 10•CityCouncil StudySession•Business Incubators Discussion•January10 2023 9• � > Tadzo Presentation continues . . . ENTREPRENEURSHIP & INNOVATION RESOURCES 9? Does the commun►ty fac►l►tate relevant resources to support bus►ness growth and innovation? ■ Culture for entrepreneurship ■ Resources for business development & start-ups ■ Local research institutions engaged with business for innovation, R&D ■ Tech transfer ■ Patents, licensing of technology ■ Financing available for innovation & entrepreneurs Pg.11 •City Council Study Session • Business Incubators Discussion •January 10,2023 Tadzo Presentation continues . . . YAKIMA'S ENTREPRENEURSHIP & INNOVATION RESOURCES , , ,_, , „ . . . . . 1� i . 1 lF r 41e.""k' A� / 101 . am� R(.R f" �� 1• � sw�l1 Mr.[neN Incrb��br i�:'�fa� 5ii ilitimb, NEW VfS/�!V and CHAMsl:F�e' r�COMMEFCE „_ . ENTERPRISE -. — _ 101 _ ..,_..„,..... _ CHALLENGE _..,, . Sii . _____ Business Plan Contest Concept Exploration: • Fairly disconnected - . Incubator - ecosystem of resources & 111\ !?� I oil''' _ a Commercial service providers •�� Kitchen - Public --� • Available equity capital? ' I H-- - ' 11111111111 1 Market ;_ � Limited access to � �. _�� Illtc' » • �- �.�, � � 1 �- ___ '�� ,. - pi,- �'i' innovation resources r,�F ,iy- - t • Piecemeal strategy Pg.12 •City Council Study Session • Business Incubators Discussion •January 10,2023 I Tadzo Presentation continues . . . BUSINESS CLIMATE Does the community support new development now and are they planning for the future? 4 ■ Local official involvement and leadership ■ Vision for community ■ Government support for growth ■ Public opinion - do people want to grow? ■ Business retention program Pg. 13•City Council Study Session • Business Incubators Discussion •January 10,2023 ,. ; Tadzo Presentation continues . . . YAKIMA'S BUSINESS CLIMATE Oer • Outreach to existing traded-sector • Apathy— letting things happen instead of driving change businesses — delegated toYCDA/New • Focus on Downtown Vision • Visits • No Strategic Plan for economic development....But working on it • Industry roundtable • New and qualified leadership at key organizations • Lack of External HQ visits - risk • Community Pride? • "JustYakima" • Lack of telling story • Starting to bubble up Two City Best Practices: • Do you have the guts to act? Do what needs to be done? CityofHenderson.com The Official Website of the aty of Henderson,Nevada Pg.14•City Council Study Session• Business Incubators Discussion•January 10,2023 (i) Department of Commerce announces $32.5 million in grants from new Small Business Innovation Fund Sample of Awards from across the state: • Center for Inclusive Entrepreneurship, Seattle — incubator program: $538,000 • Chelan Douglas Regional Port Authority, East Wenatchee — incubator program: $1 million • Economic Development Board for Tacoma-Pierce County — accelerator program: $1.89 million • Latino Community Fund of Washington State, Seattle — accelerator program: $2 million • Multi-Ethnic Business Association (AHANA), Spokane — incubator program: $2 million qt%, • Native Funds, Chelan — accelerator program $520 000 • Colfax Downtown Association — incubator program: $2.6 million • Tn -cities Diversity and Inclusion Council, Richland — incubator program: $500,000 • Walla Walla Foundation — incubator ro ram: $636,000 p 9 Pg.15•City Council Study Session• Business Incubators Discussion•January 10,2023 �= City Role • Provide the space • Purchase a building & rent space • Partnership •)>\,1=1 E.7 • Serve as a resource _� Q • Doing business in Yakima 101 _o ° • Listing of available properties • Improving Processes p g • Remove barriers/ "red tape" • Access to identifying sources of funding Pg.16•City Council Study Session•Business Incubators Discussion•January 10,2023 Recap • Business Incubators • Catalyst tool for new businesses • Various types of incubators • Clusters • EDGE — agribusiness • SATE — sustain aviation MANY�19 i MAMA EMEN i - 1i-umc. - • INCUBATION • Grading of City a _ BUSINESS • Entrepreneurship & Innovation Resources: C t , • Business Climate. 0- aaPVI W S � ERR � tall;% • City's role - varies o A � Pg.17•City Council Study Session•Business Incubators Discussion•January 10,2023 (CA) E.4•••• - :