HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/21/2017 - FIRST READING OF ORDINANCE NO. 051, 2017, APPROPRIAgenda Item 20
Item # 20 Page 1
AGENDA ITEM SUMMARY March 21, 2017
City Council
STAFF
Josh Birks, Economic Health Director
SUBJECT
First Reading of Ordinance No. 051, 2017, Appropriating Prior Year Reserves in the General Fund to Support
the Idea 2 Product 3D Printing Community Center.
EXECUTIVE SUMMARY
The purpose of this item is to present City Council with an Ordinance appropriating General Fund Reserves to
support the relocation of the Idea 2 Product (“I2P”) laboratory and develop a 3D Printing Community Center.
The City through the proposed appropriation will pledge $150,000 to support the relocation and construction of
the 3D Printing Community Center within the Fort Collins community. The funds will be pledged contingent
upon the ability of I2P, the operator of the 3D Printing Community Center, to raise a total (including the City's
pledge) of $3.0 million from private sources, other communities, and grants. The pledge will terminate at the
end of 2017 unless I2P has successfully raised funds and may be renewed at City Council's option in future
years.
STAFF RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
BACKGROUND / DISCUSSION
This funding will accelerate innovation, commercialization and entrepreneurship in Fort Collins by expanding
City support of the I2P Lab currently housed on the Colorado State University (CSU) campus.
History of Idea 2 Product
Three years ago Colorado State University (CSU) created the I2P lab with the intention of providing support for
innovators in the community. Since opening, I2P has leveraged City cluster funding to enable nearly 2,000
user sessions and trained nearly 500 new users in 3D printing and scanning. Established companies and
individual entrepreneurs alike have developed products and prototypes accelerating their innovation and
commercialization capability. There are numerous stories about the success of the current I2P lab.
The I2P Lab has received assistance through the Economic Health Office (EHO) industry cluster grant
program in both of the last two years totally $34,000. I2P has been tentatively awarded $20,000.
Future Plans
I2P has been a huge success on the CSU campus; however, it has not had the community reach stated in its
goals. In order to connect better with the entrepreneurial community and private businesses, I2P would like to
develop an off-campus 3D Printing Community Center. This center would provide a wide range of 3D printing
solutions. The facility will:
Move off CSU campus in downtown (location TBD), close to public transportation, while maintaining a
strong CSU connection and remaining a CSU entity. The current I2P Lab would move.
Agenda Item 20
Item # 20 Page 2
Expand I2P's community, directly enabling the "grow your own" theme adopted by the City of the 2015
Economic Health Strategic Plan - expanding workforce development, business incubation and enhancing
downtown economic viability. Fort Collins maker group is eager to use I2P II. I2P II would host STEM
groups, artist guilds, and any other groups. Funds from this offer would enable marketing.
Add new fabrication capabilities for corporate and entrepreneurial users through donations and acquisition,
i.e., more advanced 3D printing and mold-making.
Provide small office/conference spaces available to frequent users (rented monthly).
Expand training programs offered by I2P for the community.
Proposed Funding
This Ordinance will provide City support of the construction of a 3D Printing Community Center off the CSU
campus. This expansion has the intent of broadening the lab’s reach to more local and regional companies
and entrepreneurs. This will enable the lab to enhance its educational and workforce training programs and
provide advanced fabrication capabilities.
The Ordinance will match funds raised from private sources, other communities, and an anticipated grant from
the Office of Economic Development and International Trade (OEDIT) to be submitted in the second quarter of
2017. The grant application will request $1.5 million in Advance Industry Infrastructure funds to support the
construction of the new lab. The OEDIT grant has a matching requirement of 1 to 1. Therefore, I2P plans to
raise the remaining funds from two sources -fundraising (private sources and other communities) and this City
commitment.
Currently, I2P has projected fundraising of $850,000 from a number of sources. The City’s funds will be
pledged and contingent upon I2P raising the remaining funds and/or receiving the OEDIT grant. If
unsuccessful, the City’s funds can be released and used for another purpose. I2P anticipates having word on
the remaining funds and grant by June 31, 2017.
Financial Commitment: Terms & Conditions
This Ordinance appropriates $150,000 to support the proposed 3D Printing Community Center. The
commitment will be codified with a Grant Agreement (similar to those provided to Industry Cluster Grant
recipients) and include the following terms and conditions:
The funds will be pledged with the intent to support the 3D Printing Community Center and not any other
activities of I2P (the current activities of I2P may be supported through the Industry Cluster Grant process,
which will be kept separate from this pledge);
The funds will only be made available to I2P upon successfully raising $3.0 million (including the City’s
pledge);
The pledge will terminate at the end of 2017 unless I2P has successfully raised the necessary funds
The City Council may elect to renew the pledge by re-appropriating the funds in 2018, through the 2018
appropriation process, or by considering another appropriation ordinance in 2018.
Current Funding Status
I2P is currently fully engaged in a process to raise funds that will allow the lab to move off CSU’s campus and
increase its visibility and access to private companies and entrepreneurs. The goal is to raise $3.0 million, which
will provide both the capital and operating funds to move the lab and begin operating in a new environment.
Currently, I2P is confident of $850k in matching funds for a $1.5 million Office of Economic Development and
International Trade (OEDIT) grant proposal that will be submitted later this year. This leaves a gap of
approximately $650,000 to reach the stated $3.0 million goal. The City’s funds would help close the gap
significantly. The City’s funds would be contingent upon receiving the grant and raising the remaining matching
funds.
Agenda Item 20
Item # 20 Page 3
CITY FINANCIAL IMPACTS
This Ordinance will appropriate $150,000 of General Fund Reserves to be pledged to the support of a 3D
Printing Community Center. The funds will only be expended if I2P is successful at raising the balance of $3.0
million from private sources, other communities, and grants. If at the end of 2017, the funds have not been
expended they will revert back to the General Fund balance. City Council may elect to re-appropriate the funds
in 2018.
BOARD / COMMISSION RECOMMENDATION
No board or commission recommendations.
PUBLIC OUTREACH
Public outreach was completed as part of the 2017/2018 Budgeting for Outcomes process. No additional
public outreach was done on this stand-alone appropriation request.
ATTACHMENTS
1. Power Point Presentation (PDF)
1
Appropriation to Support 3D Printing Community Center
Josh Birks, Economic Health & Redevelopment Director
03.21.2017
ATTACHMENT 1
Funding Objectives
§ Move off-campus (TBD) in downtown, close to public transportation
§ Expand I2P's community
§ Add new fabrication capabilities, e.g. more advanced 3D printing and
mold-making
§ Provide small office/conference spaces for frequent users
§ Expand training programs offered by I2P for the community.
2
Current Status
3
§ Anticipated State Grant of
$1.5 Million
§ Approximately $850,000 in
pledged funds from other
sources
§ June 30, 2017 – Anticipated
Status Update
Funding Terms & Conditions
§ Funds will be pledged with the intent to support the 3D Printing
Community Center
§ And not any other activities of I2P
§ The funds will only be made available to I2P upon successfully
raising $3.0 million
§ The pledge will terminate at the end of 2017 unless I2P has
successfully raised the necessary funds
§ The City Council may elect to renew the pledge by re-appropriating
the funds in 2018
4
Staff Recommendation
5
§ Staff Recommends Adoption
of the Ordinance
I2P in the News
§ Online 3D printing training now offered by CSU
§ Snow sculptors use 3D printed model at International Competition
§ I2P Lab hosts Zach Elementary School Robotics Club
§ New technology will allow paralyzed teen to kick first ball at 2014
World Cup
§ Thirty-Five percent of engineering jobs now require 3D printing skills
6
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ORDINANCE NO. 051, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES
IN THE GENERAL FUND TO SUPPORT THE IDEA 2 PRODUCT 3D PRINTING
COMMUNITY CENTER
WHEREAS, the purpose of this item is to appropriate $150,000 from the General Fund
Reserves to support the relocation of the Idea 2 Product (“I2P”) laboratory and the construction
of a 3D Printing Community Center within the Fort Collins community; and
WHEREAS, this funding will be used to accelerate innovation, commercialization and
entrepreneurship in Fort Collins by expanding City support of the I2P Lab currently housed on
the Colorado State University campus; and
WHEREAS, the provision of these funds is contingent upon the ability of I2P, the
operator of the 3D Printing Community Center, to raise a total (including the City's pledge) of
$3.0 million from private sources, other communities, and grants, including an anticipated grant
of $1.5 million from the Office of Economic Development and International Trade to be
submitted in the second quarter of 2017; and
WHEREAS, the funds will only be made available to I2P upon successfully raising $3.0
million and are pledged with the intent to support the 3D Printing Community Center and not
any other activities of I2P; and
WHEREAS, the pledge will terminate at the end of 2017 unless I2P has successfully
raised funds, however, this funding may be reappropriated at City Council's discretion in future
years; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated; and
WHEREAS, City staff have determined that the appropriations as described herein are
available and previously unappropriated in the General Fund; and
WHEREAS, the City Council hereby finds that providing these funds to I2P will serve
the public purposes of expanding workforce development in the community, assisting in business
incubation within the City, and enhancing the Downtown’s economic viability by helping to
make this advanced technology more readily and easily available to local and regional
companies and entrepreneurs.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated for expenditure from prior year reserves
in the General Fund the total sum of ONE HUNDRED FIFTY THOUSAND DOLLARS
($150,000) for the I2P laboratory and 3D Printing Community Center.
Introduced, considered favorably on first reading, and ordered published this 21st day of
March, A.D. 2017, and to be presented for final passage on the 18th day of April, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 18th day of April, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk