Innovation Strategies Presented to MODE

1. Innovation StrategiesPresented to MODE January 2014

2. Presentation Outline • Mission • Membership • Money • Momentum

3. 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

4. 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

5. 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

6. 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)

7. 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

8. 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

9. 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

10. 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)

11. 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

12. Momentum Business Plan Financial Support Project Success Publicity Membership

13. Questions?