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ITEM 9

City Council Memorandum Economic Development Memo No. ED24-034

Date:

June 27, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
Micah Miranda, Economic Development Director

From:

Michael Winer, Economic Development Project Manager

Subject:

Resolution No. 5809 Amendment to IGA with ASU for Business Incubation Services

Proposed Motion:

Move City Council pass and adopt Resolution No. 5809 approving an amendment to the Intergovernmental Agreement between the City of Chandler and the Arizona Board of Regents, on behalf of Arizona State University, for the delivery of business incubator and ecosystem building services, in an amount not to exceed $275,000 annually, for the period of one year, beginning July 1, 2024, through June 30, 2025.

Background/Discussion:

Since 2009, the Chandler City Council has approved funding for local business incubator programming with the goal of supporting and elevating the entrepreneurial ecosystem to diversify the employment base and drive business and job growth in Chandler. Business incubator management services are currently being provided by Arizona State University ("ASU") through an intergovernmental agreement ("IGA") with the City of Chandler ("City"). The Chandler Endeavor Venture Innovation Incubator ("Chandler Endeavor") program is housed at the ASU Chandler Innovation Center and managed by a team of community entrepreneurship leaders from ASU's J. Orin Edson Entrepreneurship + Innovation Institute ("Edson E+I"). The IGA between the City and ASU has an initial one-year term of July 1, 2023, through June 30, 2024, and the proposed amendment would extend the term for another one year, from July 1, 2024, through June 30, 2025.

The City's Economic Development Division has been satisfied with the progress ASU's Edson E+I team has made in building the Chandler Endeavor program, providing valuable support to local entrepreneurs and startup companies, and engaging with the community. Below are performance measures established for the 2023-24 contract year. The column on the right shows ASU's performance through May 21, 2024. A revised Scope of Services and updated Performance Measures have been prepared for the second term of the IGA. ASU will continue to provide the city with quarterly progress reports.

Performance Measure	2023-24 Targets	2023-24 Actuals¹
Total people engaged in the Chandler Endeavor ecosystem	1,000	940
Ventures engaged in Cluster Cohorts Venture (Fall 2023) - 6 Accelerate (Spring 2024) - 6	12	12
Total number of ventures given access to private office space	6	7
Average Net Promoter Score for all ASU Edson E+I initiated programming²	60%	89.9%
Chandler ecosystem Connectivity Score³	TBD	Survey in progress

1. Data is for the period July 1, 2023, through May 21, 2024. Contract term runs through June 30, 2024.
2. Customer satisfaction metric based on participant surveys, with 60% being industry average for educational training.
3. Score measures the number of connections the average entrepreneur has to other entrepreneurs in the community. Goal is to increase over time.

Financial Implications:

A one-time decision package request has been submitted for the Fiscal Year 2024-25 budget to make funds available for the second term of the IGA in the Innovations cost center account 101.1590.5219.0000. If funding is not approved by City Council for the second year of this contract, there are provisions within the contract where the city can terminate the remainder of the contract without any further obligations.

Attachments

Resolution 5809

Chandler Endeavor IGA Amendment 1