Annual Report from Moonshot at the Flagstaff Campus - 2025
 

The City of Flagstaff contracts with Moonshot to deliver business development services and manage the Flagstaff campus, which includes a 10,000-square-foot Business Incubator and a 28,000-square-foot Business Accelerator. The contract supports entrepreneurship and job growth in key sectors such as research and development, science, technology, clean energy, bioscience, healthcare, manufacturing, digital products, emerging technologies, tourism, and astronomy. These efforts are aimed at advancing economic opportunity for the City of Flagstaff, its residents, and the State of Arizona. Moonshot provides an annual update to City Council highlighting achievements under the contract as well as broader regional economic development initiatives. 

Moonshot operates under a Master Lease and Service Agreement with the City of Flagstaff to provide business development services, entrepreneurial support, and property management at the Flagstaff campus. The City received substantial funding from the U.S. Economic Development Administration (EDA) for the development of the campus, which imposes restrictions on its use. As a result, activities at the campus must align with specific industry sectors, as outlined in the Executive Summary.

As will be detailed in the upcoming presentation, Moonshot has consistently maintained occupancy at the facilities and has played a significant role in supporting the growth of local businesses. Their performance has yielded measurable benefits in key areas such as the number of businesses assisted, jobs created, facility occupancy, revenue to the City, and private investment in client companies. In addition, Moonshot collaborates with the City on special initiatives like the Innovate Green Challenge, Economic Development Week and other economic programs.

The City’s partnership with Moonshot has remained stable over several years. The current agreements began on January 1, 2019, and are set to expire in December 2028. In January 2024, the first five-year renewal was signed. However, the contract includes one more optional five-year renewal period, subject to mutual agreement.

The City receives rent revenue from the campus and pays management and maintenance expenses. The City currently provides just over $273,000 towards Moonshot's budget for both business support services and campus property management. Rent generated from the campus helps offset these costs. 

The Incubator is 100% occupied and is home to seventeen different businesses, while there are 14 businesses located in the Accelerator with 77% occupancy. The accumulative occupancy rate as of May 2025 is 82%. With that said, there are three more companies that have been approved and are in the process of moving in. The occupancy percentage will be over 90% by the end of the summer of 2025. This is the highest occupancy rate we have seen. The difference in businesses creates a diverse economic environment while creating a unique entrepreneurial network.