8.
City Council Work Session
- Meeting Date:
- 05/31/2022
- From:
- David McIntire, Community Investment Director
- Department:
- Economic Vitality
Co-Submitter:
TITLE:
The Annual Update from Moonshot at the Northern Arizona Center for Entrepreneurship and Technology (NACET)
DESIRED OUTCOME:
City Council and the public will be updated about Moonshot's outcomes and initiatives with business development and the management of the City-owned Incubator and Accelerator at the NACET campus.
EXECUTIVE SUMMARY:
The City of Flagstaff contracts Moonshot to provide business development services and to operate the NACET campus including a 10,000 square foot Business Incubator and a 28,000 square foot Business Accelerator. The focus of the services is to manage the facilities to grow businesses and jobs in research and development, science, technology, clean-energy, bio-science, healthcare, manufacturing, digital products, emerging technology, tourism and astronomy for the benefit of the City, Moonshot and the citizens of the city of Flagstaff and the State of Arizona. Each year Moonshot presents to the City Council on their accomplishments and activities related to this contract and to their other economic development efforts.
INFORMATION:
As mentioned above, Moonshot is contracted, through a Master Lease and a Service Agreement, to provide business development services and property management for the City of Flagstaff in the Business Incubator and Business Accelerator. In doing so they must adhere to grant restrictions in place because the city received significant funding for the campus from the Economic Development Administration which limits the use of the campus to the specific sectors outlined in the Executive Summary.
As you will hear with more specifics in the presentation, during the term of their contract, and especially over the past year, Moonshot has provided significant growth in occupancy and has supported businesses to overcome the pandemic and grow. They have generated a large increase in benefit both in terms of businesses served, jobs created and tenants in the space. They partner with the city on programs such as the Innovate Waste Challenge as well.
The agreements commenced on January 1 of 2019, and the term of the contract expires in December 2023, but has two 5 year renewals available should both sides agree to extend the relationship. The City pays a combined total of approximately $268,000 for business services and property management of the campus. The City receives all rents from the campus as well and a report run on May 20th showed receipts for the fiscal year already totaling over $320,000 with more to come as the year closes out.
As you will hear with more specifics in the presentation, during the term of their contract, and especially over the past year, Moonshot has provided significant growth in occupancy and has supported businesses to overcome the pandemic and grow. They have generated a large increase in benefit both in terms of businesses served, jobs created and tenants in the space. They partner with the city on programs such as the Innovate Waste Challenge as well.
The agreements commenced on January 1 of 2019, and the term of the contract expires in December 2023, but has two 5 year renewals available should both sides agree to extend the relationship. The City pays a combined total of approximately $268,000 for business services and property management of the campus. The City receives all rents from the campus as well and a report run on May 20th showed receipts for the fiscal year already totaling over $320,000 with more to come as the year closes out.