HomeMy WebLinkAbout9-25-23 Council EDC Agenda PacketCity Council Economic Development Committee
Monday, September 25, 2023
8:00 AM
Emma Harvat Hall
City Hall, 410 E. Washington
AGENDA
1.Call to order
2.Consider approval of minutes from the November 29, 2022 Economic
Development Committee meeting
3.Consider FY25 budget recommendation to full City Council for Community
Development Assistance funding for business development organizations:
•Entrepreneurial Development Center
•Multicultural Development Center of Iowa
4.Consider FY25 budget recommendation to full City Council for Community
Development Assistance funding for arts organizations:
•Englert Theater
•FilmScene
•Riverside Theatre
•Summer of the Arts
•UNESCO City of Literature
5.Staff Report
6.Old or New Business
7.Adjournment
If you will need disability-related accommodations in order to participate in this program/event, please
contact Rachel Kilburg, Assistant City Manager at 319-356-5014 or rkilburg@iowa-city.org. Early
requests are strongly encouraged to allow sufficient time to meet your access needs.
EDC minutes November 29, 2022 - p.1
Preliminary
MINUTES
CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
November 29, 2022
EMMA HARVAT HALL, 4:00 P.M.
Members Present: Laura Bergus, Megan Alter, John Thomas
Members Absent:
Staff Present: Wendy Ford, Geoff Fruin, Sue Dulek, Rachel Kilburg
Others Present: Tracy Jon Sargeant, Multicultural Development Center of Iowa and Curt Nelson,
Entrepreneurial Development Center, Inc.
Recommendations to council:
Thomas moved and Alter seconded a motion to approve a recommendation to the full council
for $25,000 for MDCIowa and for EDC, Inc. in the FY24 budget. Motion carried (3-0).
Call meeting to order:
Bergus called the meeting to order at 4:00P.M.
Consider approval of minutes from the October 19, 2022 Economic Development Committee
meeting:
Alter moved and Thomas seconded a motion to approve the minutes of the October 19, 2022 meeting.
Motion passed (3-0).
Consider FY24 budget recommendation to full City Council for Community Development
Assistance funding for business development organizations: Multicultural Development Center
of Iowa (MDCIowa) and Entrepreneurial Development Center:
Ford introduced the topic with a brief background on the City’s support of each organization. She said
that the City’s support of MDCIowa is fairly recent, beginning in FY22, with the onset of the business
incubator. Because the program continues, staff wanted to include MDCIowa in the group of annual
requests for Community Development funding, vs. Opportunity funding from which funds were paid
initially. She said that the City has been supporting EDC, Inc. in Cedar Rapids for several years, to
which Nelson added City assistance has totaled $206,000 (since FY15).
Ford introduced Tracy Jon Sargeant With MDCIowa. He started by citing the impact report that was
included in the packet. He noted the program wouldn’t exist if it weren’t for the city’s support of this
program that supports historically underestimated and underserved parts of the community that have
aspirations of being small business owners. 31 business have been supported, with a huge amount of
one-on-one support, technical assistance, etc. Support goes on after the 16-week cohort graduates.
Focused on BIPOC owned businesses. Try to be as inclusive as possible. 100% of people
participating identify as a person of color. Their own survey revealed that one of the biggest
challenges for BIPOC businesses is access to capital, so another strategy of MDCIowa is to create a
microloan and small dollar loan program that the City supported with funds for loan loss reserve. This
enables MDCIowa to serve as an affiliate to the Iowa Community Capital affiliate for Johnson County.
The requirement for people to qualify for a loan from that program is to have completed the program.
They are halfway through their 3rd cohort. Established partnership with ICAD, Builders and Backers.
EDC minutes November 29, 2022 - p.2
Preliminary
Some of the people that have gone through B&B have come out of that program to enter into the
MDCIowa program.
Explained how tight the budget it, how private funding is hard to come by, though this past year, a big
private donation. Important to note that the City is the second largest supporter of MDCIowa, along
with Target, Green State Credit Union and Hills Bank.
Alter asked how big the team is. Sargeant explained it is him only, a challenge of being a small non-
profit. Has a very flexible FT employer which allows him to do this full time as well. Suggested that
ARPA funding could be a source of support to add staff people. Partnership with ICC allowed a
business coach paid for half and half between ICC and MDCIowa, about who he spoke highly.
Thomas explained he is not a businessperson and said he appreciated learning what goes into
business entrepreneurship.
Curt Nelson interjected, offering support to MDCIowa.
Bergus noted that she has firsthand volunteer experience with Sergeant’s cohorts, having spoken to
both previous cohorts and offered free legal advice to members.
At this point, the Committee decided to vote on the two requests together after the second
presentation.
Curt Nelson, CEO of EDC, Inc. spoke next. Nelson founded the organization in 2003, so this is the
20th year of EDC. He explained that a measure of success is whether the companies they help have
improved. They use hard economic statistics, rather than number of events and hours spent. They
have worked with more than 1300 businesses over the years. They have about 120 investors that fund
their effort. He then cited numbers on capital raised, increased revenue in the companies, average
wage in the companies they help (above the county’s median), increased payroll – the key metrics
they use in measuring impact.
They focus on high impact interstate businesses, about 1/3 of which are startups, 1/3 businesses up to
5 years old, and 1/3 mature businesses. He cited Viewpoint Molecular, a local company that has
developed a technology to create “cage” with a protein bonding component that will bond to cancer
cells which then releases an isotope that then washes the cancer out of the body. Helped to take the
idea from academia to “the street.” He said that if EDC hadn’t been there for them, that they would not
have ended up in Iowa. He said they would have been drawn to the coasts where capital is easier to
access. Next, he talked about Michel and Riley Eynon Lynch and the success of their business and
how they are reinvesting the community which, he said, is far greater than the funding the City invests
in EDC, Inc.
Thomas thanked Nelson for the specific stories of businesses and says he remembers meeting the
folks with Pear Deck. Alter said she appreciates the depth of the explanations and the number of
different partners that are involved.
Fruin inquired about how much of the public funding goes to administration and how much goes to the
orgs. Nelson said that 100% goes to administration.
Bergus talked about the City’s new Strategic Plan and its three value lenses – racial equity and social
justice, climate action and partnerships and engagement. She asked if EDC Inc’s focus has changed
at all with regards to these values. Nelson said they only look at businesses and their potential growth
EDC minutes November 29, 2022 - p.3
Preliminary
and economic vitality. They don’t look at anything except the business because a successful business
climate builds the economic base of the community that allows the work in the three groups.
Thomas moved and Alter seconded a motion to approve a recommendation to the full council for
$25,000 for MDCIowa and for EDC, Inc. in the FY24 budget. Motion carried (3-0).
Staff Report
None
Other Business
Bergus asked Ford about how these funds are promoted or accessed by the community. Ford gave
some history about how it began first with the arts organizations. She said they approached the City
touting the economic impact they bring to the community. For several years, it was only the arts
organizations and each year, they were invited to present an annual report focusing on their economic
impact along with their request for support for the coming budget year. The Economic Development
Committee would then recommend to the full council that they be budgeted into the Community
Development Assistance line in the coming budget.
In 2015, Curt Nelson approached the City and was invited for consideration also. In 2021, when
MDCIowa approached the City with their request, it was mid-budget year, and the City Manager
approved $25,000 in support through another line called the Opportunity Fund, a smaller budget line
reserved for Economic Development opportunities that arise during a budget year for activities that
surface after budgeting is complete. Ford said that we’ve never put out a “Call for Proposals.” She
suggested the size of the budget pie could not increase proportionate to the need, which would then
create the risk of underfunding all.
Fruin added that Economic Development is largely outsourced by the municipalities. He said that
when we pool resources, such as neighboring municipalities contributing to ICAD, our dollars work
harder together. Before initially funding EDC, Inc., and because they focus on interstate commerce,
we checked that our neighboring municipalities agreed that this economic development endeavor was
worth the area’s investment. MDCIowa’s work is more council specific to Iowa City’s goals and
aspirations and thus, needn’t necessarily qualify with the “wider net standard” that ICAD and EDC, Inc.
do.
Fruin said Ford alluded to the Linn County municipal model that went to an application and
competition for public funding that some may argue creates a demand for too many small pieces of a
limited budget pie. We could do a competitive call but might get to a situation where we’d risk
underfunding orgs. Fruin told members that if they are hearing a need that is not being met, they
should share with staff who can then investigate and look for opportunities to help.
Bergus shared that she had just found an org that supports Latina women-owned businesses. Fruin
said we could look at it. He said we have funded Andre Wright and his org with sponsorships of events
that support the work, highlighting different levels of support the city can offer: Larger scale funding,
such as ICAD, funding from our Community Development line that may or may not be in partnership
with neighboring municipalities, and opportunities that arise during mid-fiscal year, likely very specific
to Iowa City-specific goals. Bergus said she appreciated the explanation.
Alter noted how valuable attending these meetings is.
Adjournment
Bergus moved and Thomas seconded that the meeting be adjourned (4:58 PM). Motion carried (3-0)
EDC minutes November 29, 2022 - p.4
Preliminary
Council Economic Development Committee
ATTENDANCE RECORD
2020-22
NAME
TERM
EXP.
01/27/20
07/13/20 12/09/20 10/27/21 10/19/22 11/29/22
Megan
Alter 01/02/24 --- --- --- --- X X
Laura
Bergus 01/02/24 --- --- --- --- X X
John
Thomas 01/02/24 X X X X X X
Susan
Mims 01/02/22 X X X X --- ---
Mazahir
Salih 01/02/22 X X O/E X --- ---
Key:
X = Present
O = Absent
--- = not a member
O/E = Absent/Excused
Date: September 21, 2023
To: Council Economic Development Committee
From: Rachel Kilburg, Asst. City Manager
Re: FY 25 Funding Support for Business Development Organizations
The City has historically provided financial support for several organization who align with the City
Council’s economic development Strategic Plan priorities. Each year, the Council Economic
Development Committee considers requests from the business development and arts & cultural
organizations and provide a funding recommendation to City Council for inclusion in the upcoming
(FY25) budget proposal under the Community Development Assistance budget line. Following
this memo, you will find a request letter and additional information from each of the organizations.
Within the Economy impact area, the City Council’s FY23-28 Strategic Plan aims to “Cultivate a
strong entrepreneurial and small business ecosystem with a focus on creating new pathways to
success for systemically marginalized populations.” In line with this strategy, staff requests the
Committee’s consider funding requests for two business development operations which provide
early-stage support for entrepreneurs and scalable businesses.
The Entrepreneurial Development Center, Inc. (also as EDC, Inc.) was incorporated in 2003
to improve the economic vitality of the region through the creation and growth of high-impact,
scalable entrepreneurial businesses. While based in Cedar Rapids, they serve businesses on
both ends of the I-380 corridor and have stories of Iowa City businesses they have helped.
EDC, Inc.’s work focuses on enabling high potential businesses to grow and thrive. Curt Nelson,
President and CEO, has developed a “recipe for business success” which EDC uses in guiding
business growth. The recipe calls for six ingredients including marketing, development, sales,
operations, information technology and finance. EDC’s approach is to ensure that clients have
the right amount of each. They gain an understanding of the client’s needs and provide expertise
by building strategic networks for their clients. They are also well connected to financial resources
for their clients. The EDC is requesting continued funding in the amount of $25,000 for FY25.
The Multicultural Development Center of Iowa launched in 2021 and has received City funding
since FY22. INCUBATE, a BIPOC Business Accelerator program provides training, networking,
industry-specific mentors and access to tools and resources for cohorts in the program, and its
5th cohort was successfully completed in 2023. Additionally, MDC Iowa added three new loan
programs, including the Credit Builder loan program which combines financial literacy training
with small dollar loans to help establish or rebuild personal credit. These programs aim to remove
September 21, 2023
Page 2
barriers which have historically prevented systemically marginalized and immigrant populations
from access to financial capital. To date, 65 BIPOC-owned businesses have been served by MDC
Iowa programs and 15 new jobs have been created by businesses which have completed the
INCUBATE program.
In addition to the small business support programs, MDC Iowa provides stem education for
BIPOC youth and adults at no cost, offers a trained mentoring program, and has launched
the_collective, which aims to support young students and adult learners interested in a
cybersecurity career. MDC Iowa is requesting an increased funding amount of $50,000 for FY25.
Recommendation
Due to the recent (and anticipated) property tax reform measures enacted at the State level, and
the resulting challenging budget year expected, staff recommend stable funding levels for each
of the business development organizations for FY25.
Historical funding:
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
FY25
request
FY25
staff rec’d
EDC, Inc. 6,250 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
MDC Iowa 25,000 25,000 25,000 50,000 25,000
EDC Inc. - 230 2nd Street SE, Cedar Rapids, IA 52401 - www.edcinc.org - 319-369-4955
September 14, 2023
City Council Economic Development Committee c/o Rachel Kilburg
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
Dear Rachel & Committee,
For the past 20 years, EDC has been actively engaged in the creation and growth of high-impact
businesses in Iowa, with a strong focus on the Iowa City – Cedar Rapids Corridor. Over this time, the
1,350+ businesses supported by EDC have created over $4.9 billion in economic development impact
(Please see attached 2022 Stakeholder Report for details). In the past year, EDC invested time
directly in Iowa City working with the companies listed below. Exciting for Iowa City is the continued
expansion of Viewpoint Molecular Targeting (now Perspective Therapeutics, Inc.), and the ongoing
impact of the Pear Deck exit.
IOWA CITY ENGAGEMENT 2023
Company Raised Capital Created Jobs in 2023
AugmENT
UpStream
No
No
0
0
Oasis (Hummus) No 0
Steel Therapeutics Yes 4
Harvest Increase Yes 0
Viewpoint Molecular Targeting
Iowa Simulation Solutions
Pani-Clean
Sensor Ventures
Meld Marketing
Yes
No
Yes
Yes
No
22
0
0
0
0
IOWA CITY IMPACT
Impact 2022 Program to Date
Capital raised & deployed $11,520,000 $59,881,457
Private vs public ratio $7,520,000 (Private) vs.
$4,000,000 (Public)
$ 44,068,731 (Private) vs.
$15,812,726 (Public)
Increased business revenue $2,200,000 $146,882,472
New jobs created 13 440
Average wage $86,156 $64,792
New payroll added $4,652,424 $69,264,756
New businesses started 0 21
Total impact $18,458,580 $257,656,361
EDC Inc. - 230 2nd Street SE, Cedar Rapids, IA 52401 - www.edcinc.org - 319-369-4955
EDC’s engagement in Iowa City and the related area has been significant and consistent year after
year. EDC is an active partner of the University of Iowa, working on the commercialization of
university technology development. EDC also works with JPEC and the Venture School toward this
same goal. EDC is also an active partner of ICAD and the Ed-Tech Collaborative.
The funds needed to support EDC operations come from over 120 public and private supporters. Our
largest public supporters include the City of Cedar Rapids and the State of Iowa. The Cities of
Coralville, Hiawatha, and North Liberty also provide annual support. A majority of EDC’s funding
comes from supporters outside of Johnson County, so it is very important to the entrepreneurs in Iowa
City / Johnson County that EDC maintain / grow the amount of support provided from that region. To
that end, EDC is requesting the same amount ($25,000) for fiscal year 2025.
Thank you very much for your continued support.
Sincerely,
Curt Nelson
Date: September 21, 2023
To: Council Economic Development Committee
From: Rachel Kilburg, Asst. City Manager
Re: FY 25 Funding Support for Arts & Culture Organizations
The City has historically provided financial support for several organization who align with the City
Council’s economic development Strategic Plan priorities. Each year, the Council Economic
Development Committee considers requests from the business development and arts & cultural
organizations and provide a funding recommendation to City Council for inclusion in the upcoming
(FY25) budget proposal under the Community Development Assistance budget line. Following
this memo, you will find a request letter and additional information from each of the organizations.
Within the Economy impact area, the City Council’s FY23-28 Strategic Plan aims to “Build Iowa
City’s image as the Greatest Small City for the Arts.” In line with this strategy, staff requests the
Committee’s consider funding requests for five arts and cultural organizations which provide
inclusive programming and events throughout the year. Following this memo, you will find a
request letter and additional information from each of the organizations.
In preparation for this annual process, almost all of the organizations expressed a need for
increased funding to support the post-pandemic inflationary impacts on programming, personnel,
and operations, in addition to expanded efforts to offer accessible and free programming to the
public. Staff has shared the difficult financial pressures the City has faced in recent years and to
expect a status quo budget, and it is ultimately each organizations decision to submit a candid
funding request.
Englert Theater is requesting a stable $70,000 to support the operation of the theater and its
signature festivals which have historically included Mission Creek Festival and, more recently,
Witching Hour. The City has supported the theater since it was purchased and renovated in 2004,
saving the City’s last historic theater. In the past year, the Englert has focused on developing a
new strategic plan with an enhanced focused on engaging younger and more diverse audiences,
redesigned educational programs, and the development of a Historic Venue Fund to support the
sustainability of the historic theater. Englert programming attracts patrons who are likely to spend
more money in Iowa City on restaurants, lodging and shopping, creating a significant visitor
economic impact.
September 21, 2023
Page 2
FilmScene is requesting $30,000 for operations (a $5,000 increase) and $10,000 for the ReFocus
Film Festival ($3,000 increase). FilmScene has a become a mainstay in the Iowa City arts and
culture scene, operating out of a downtown historic building which had previously been a
problematic bar and more recently expanding into a newer, state of the art facility in the Chauncey.
FilmScene became the first year-round non-profit cinema in Iowa ten years ago and has grown
its budget by over $1.3 million during that time. FilmScene welcomes over 75,000 patrons
annually, which is estimated to have a $2.3 million impact on the local economy through dining,
shopping, parking, hotel stays, and more. Looking ahead, FilmScene hopes to enhance
community partnerships, engage more diverse communities, and add a community engagement
and programming coordinator position.
Riverside Theatre is requesting $30,000 (a $10,000 increase) to support theatre operations and
programming. Riverside occupies a unique role in the statewide theatre space, anchoring the only
professional theatre company in Eastern Iowa right here in Iowa City and serving as only one of
two theatres in Iowa with a standing agreement with the performers/stage managers union. In
addition to patrons, this unique role attracts and retains hundreds of professional performers, who
choose to live, work, and play in the area due to paid opportunities at Riverside. Riverside
Theatre’s budget has grown 60% over the past ten years, reflective of the enhanced programming
and educational outreach, and offering free Shakespeare in the Park, which has hosted record-
breaking attendance in recent years.
Summer of the Arts is requesting $70,350 (a 5% increase) to support the 200 hours of free arts
and cultural programming, events, and festivals offered throughout the year. Summer of the Arts’
signature annual festivals and events include the Iowa Arts Festival, Jazz Fest, Soul and Blues,
and the Holiday Thieves’ Market, with the former two weekend festival attracting around 25,000
people to the downtown annually over each of the 3-day events. Weekly summer events include
two music concert series and has expanded into free movie and music events held in different
neighborhoods to make events more accessible to different populations.
UNESCO City of Literature is requesting a stable $60,000, which includes $50,000 for
operations and $10,000 for the Book Festival. The City of Lit promotes and encourages the love
of literature and by doing so, contributes to the literary fame the City has enjoyed for decades.
Noteworthy annual events include the popular One Book Two Book Children’s Literature Festival
and the Iowa City Book Festival. The organization’s reach goes well beyond our own community,
however, and into the entire state, with programs such as the Glory of the Senses for all Iowa
high school kids, and a partnership with a UI MFA program around Literary Translation.
Additionally, the director, John Kenyon, is involved in the wider UNESCO organization
coordinating efforts with other world Cities of Literature.
Recommendation
Due to the recent (and anticipated) property tax reform measures enacted at the State level, and
the resulting challenging budget year expected, staff recommend stable funding levels for each
of the arts and culture organizations for FY25.
September 21, 2023
Page 3
Historical funding (shown in $1,000s):
*included $20,000 for capital improvements
**$7,000 for ReFocus was added in FY22
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Request
FY25 staff
rec’d
Englert Theatre 62 82.5* 90* 70 70 70 70 70 70 70 70 70
Film Scene &
Refocus Film Festival 35 25 15 25 25 25 25 32** 32 32 40 32
Riverside Theatre 20 0 16.5 15 20 20 20 20 20 20 30 20
Summer of the Arts 67 67 67 67 67 67 67 67 67 67 70.35 67
UNESCO City of Lit
& Book Festival 60 60 60 60 60 60 60 60 60 60 60 60