Innovation Strategies

Presented to MODE

January 2014

Presentation Outline

• Mission• Membership• Money• Momentum

Mission

• Community Needs– ROW, Infrastructure, Marketing, Project Assistance

• Immediate Opportunities– Commercial Property Sale, Bond Refinancing

• Long Term Goals– Real Estate Development, Sustainable Funding (non-political)

• Compile into a Business Plan– Projected Cost/Revenue with a timeline

• Educate Elected Officials / Business Community– Demonstrated the CIC was a good investment

Membership

• Diversity of Skill Sets– Financial, Developer, Engineer, Retiree, Chamber, Legal, Utility, General

• Two Council Members, Mayor and Development Director

• Community Leaders– Retired professionals that want to volunteer, aspiring politicians

• Business Leaders– C Suites, Owners, Stakeholders

• City Administration– ED Staff, Department Directors, Council Members

Money

• 8 Sources of Revenue– Lodging Tax (M)– Investment Income (Q)– Technology Fees (Q)– Development Fund (1)– Commercial Real Estate (M)– Grants (1)– Advertising (P)– Administrative Expenses (P)

(1) = One Time (M) = Monthly (Q) = Quarterly (P) = Project Based

Money

• Lodging Tax– Historical Funding Stream– ½ % Hotel Taxes Collected

• $3,000 (M)

– Annual Contract Renewal– Reduces competition among General Fund Items

• Investment Income – Immediate Funding Opportunity– Non-Recourse Loan Agreement with Franklin County

• Pass through entity to help remediate landfill• Minor initial legal expense

– 30 Year Revenue Stream• $2,300 (Q)

Money

• Technology Fees (GahannaNet)– City has installed 15 miles of fiber over past 10 years– City Leases Municipal Fiber to CIC– CIC partners with Private Provider to sell technology services– CIC gets 15% of all gross revenues of Private Provider

Pros– 3 Businesses have GahannaNet

• $1,400 (Q) for 5 years

Cons– Need additional revenue to connect from street to building– Time Consuming securing customers– Requires education of businesses/realtors/property owners

Money• Development Fund

– $350,000 City Investment (1)• Implement CIC Business Plan

– Commercial Real Estate, GahannaNet, Marketing

– Essential for CIC to maintain financially viable• Cash Flow

– 2 year contract to implement Plan• Deliverables and ROI

– Non-General Fund Money • More palatable

– Seed Money to generate future revenue• Reduce need for future public support

Money• Commercial Real Estate

– City wanted to expand road, but needed to buy commercial building– CIC used to acquire property– City pays CIC annual TIF Revenues for property purchase

• Property Acquisition eligible expense under TIF District

– CIC manages property until new roadway construction– CIC collects all revenues generated from tenants

Pros– Good for business retention– Used as hub for GahannaNet

Cons– Old building with legacy issues– Requires additional monies to renovate/maintain

Money• Grants

– $5,000 grant local utility company (1)– Utilities have “ED Funds” to help local communities

• Annual obligations under PUCO

– CIC Business Plan helped ensure funds were received

• Advertising– $8,500 generated for Groundhog Day sponsorships (P)– CIC funds business events due to City budget restraints– CIC members secured 15 private sector sponsors– Future potential advertising on website (TBD)

Money• Administrative Expenses (TIF)

– Engineering expenses required to start a TIF District– CIC pays for initial costs due to City budget constraints– City agrees to repay CIC with interest once TIF performs

• Administrative Expenses (Land Bank)– City partners with Franklin County Land Bank– City assigns CIC to implement Land Bank Program– CIC collects properties and sells to private developers

• Revenue potential depends on individual project

Momentum

Business Plan

Financial Support

Project Success

Publicity

Membership

Questions?