HomeMy WebLinkAbout5B PresentationCVEP Funding
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•How does CVEP and iHub fit into the “economic development
landscape”?
•Economic Development is a priority without a clear strategic plan
•CVEP and iHub programs lack clear measures
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CVEP/ iHub Evaluation
•Economic development is an initiative aimed at stimulating investment
in business activities that growth wealth, create employment
opportunities and increase the livability of a community.
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What is Economic Development?
•Primary Jobs
•Above average pay
•Increase diversity and resiliency of the economy
•Leverage existing assets
•Economic Gardening over recruitment strategies
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Economic Development Goals
•Marketing and communication
•Access to capital
•Business support services
•Market information
•Policies and incentives
•Physical space/ equipment
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Components of Successful Programs
•Myriad integrated partners
•Administrative capacity
•Understanding current economic conditions
•Market information
•Engagement from other partners
•Numerous sources of funding
•Infrastructure, land, buildings etc.
•Time
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The Economic Development Landscape
•Jobs
•Wages/ salaries
•Capital investment
•Diversity of the economy
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Key Measures
•City Annual Contribution FY 16, 17, 18:$196,500 ($589,500, 3 years)
•City Annual Contribution FY 19, 20, 21: $200,000 ($600,000, 3 years)
•Year -to-date Total:$1,189,500
•Expires June 30, 2023
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iHub Management Agreement
•CVEP Membership FY 12 –17: $100,000/year ($600,000, 6 years)
•CVEP Membership FY 18, 19, 20: $125,000/year ($375,000, 3 years)
•CVEP Membership 2021: $0
•Year -to -date Total: $975,000
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CVEP Membership
•2013 Lease Payments of $5,200 month ($62,400 annually)
•2018 Rent credits applied for FY 19 and FY 20 rental payments (CVEP
was credited with $253,000 for tenant improvements)
•2021 Monthly Lease Payments of $3,400 ($40,800 annually,
remaining rent credits applied to rent)
•2022 Monthly Lease Payments of $5,200 ($62,400) resume.
•10 Year Lease expiring June 2023, with 2 5-year options
2901 E. Alejo Lease
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•July 2011 Rent $5,000 ($60,000 annually)
•July 2016 8.5% Cost of Living Adjustment $5,425 ($65,100 annually)
•2021 Rent reduced to $0 for one year.
•Lease expires July 31, 2021, 5-year option available
3111 E. Tahquitz Lease
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City Amount
Palm Desert $305,000
Indio 75,000
Cathedral City 25,000
Indian Wells 10,000
Desert Hot Springs 10,000
Rancho Mirage 10,000
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CVEP -Other City Contributions
The balance of CVEP’s $1.4M budget is from Palm Springs, private sources, or
consulting fees.
Other City Total $435,000
CVEP / iHub Client Feedback
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•Manufacture of electronic systems for lithium batteries to make the
batteries more efficient and long lasting
•Eco friendly laundry soap manufacturer
•Health and Medical Technology Devices
•Custom Covers for trucks and patio furniture
•Energy management, alternative energy, energy storage and energy
optimization
•Water management devices and web platforms
Client Feedback –Business Types
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•“Can’t say enough good things about Joe Wallace and the iHub. They
have been patient, helpful, educated him and supportive.”
•“If it wasn’t for their encouragement and concern in the last seven
months, I don’t know if the doors of my business would still be open.
Every team member I have encounter cares about their job and the
team leads run such a smooth operation.”
•“There is also a synergy within the group of other iHub clients and
people in the accelerator campus that help with ideas, and support
and educate each other.”
Client Feedback
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•“There should be more networking, meet and greats to local investors
that presents startups in the area.”
•“We have a great level of resources at our disposal.”
•“Joe Wallace has been a tremendous asset to our success. He has
shared invaluable business knowledge and introduced us to business
partners.”
Client Feedback
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•“iHub provided useful advice, lots of coaching, a very supportive
atmosphere and helped raise money for product marketing and
development.”
•“The iHub helped execute initial marking plan by making
introductions to water utilities. This led to first pilot at the Mission
Springs Water District.”
Client Feedback
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•10
•10
•7
•10
•10
•10
•Average 9.5
Value of being an iHub client on a scale of 1 to 10
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