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?