City Council Work Session

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11.

Meeting Date:	05/30/2023
From:	David McIntire, Community Investment Director
Department:	Economic Vitality
Co-Submitter:

TITLE:

Annual Report for MOONSHOT at the Northern Arizona Center for Entrepreneurship and Technology (NACET) - 2023

DESIRED OUTCOME:

MOONSHOT is contracted with the City to provide business development and support as well as property management services. They provide an annual report to City Council. The desired outcome is for City Council and the public to be informed of the activities and results generated by the contract, as well as MOONSHOT's efforts in the region with the City of Flagstaff.

EXECUTIVE SUMMARY:

The City of Flagstaff contracts MOONSHOT to provide business development and support services and to operate the NACET campus. The campus includes a 10,000 square foot Business Incubator and a 28,000 square foot Business Accelerator. The focus of the contract is to provide business development services for entrepreneurs in Flagstaff and to manage the facilities in order 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 and the citizens of Flagstaff and the State of Arizona. Each year MOONSHOT presents to City Council on their accomplishments and activities related to this contract and to their other economic development efforts in the region.

INFORMATION:

As described above, MOONSHOT is contracted, through a Master Lease and Service Agreement, to provide business development and support services and property management for the City of Flagstaff in the NACET campus. In doing so, they must adhere to grant restrictions in place because the city received significant funding for the campus from the US 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 from the presentation, during the previous years and over the term of the agreement MOONSHOT has provided continued strong occupancy and has supported businesses to develop and grow. They have generated strong benefit in their benchmark areas such as businesses served, jobs created, occupancy, revenue to the City, and investment in their business clients. They also partner with the City on programs such as the Innovate Waste Challenge and other opportunities as well.

The relationship with MOONSHOT has been consistent over a number of years. The current agreements began on January 1, 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 partnership. City staff and MOONSHOT staff have met to discuss that renewal and any amendments that could improve the agreements and are reaching consensus on those terms. The City currently pays a combined total of $268,000 for business services and the property management of the campus. The City receives rent revenue from the campus and pays management and maintenance expenses. A revenue report generated on May 19th shows rent revenue of approximately $339,000 with more to come as the year closes out. This is approximately $19,000 more than at this time last year which had been the strongest year to date.

Attachments
MOONSHOT presentation 23