TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Martha Samaniego Management Analyst
SUBJECT:
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Acknowledgment of Application for U.S. Economic Development Administration Build to Scale Grant
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RECOMMENDATION
recommendation
Receive and file;
Authorize the application for a grant from the U.S. Economic Development Administration’s Build to Scale program to fund a wet-lab manager, the programming, marketing, and ongoing operations of the Murrieta Innovation Center; and
Approve the partnership with Murrieta Partnership DBA “Impact” Inc. (501c3) for the commitment of matching funds in the amount of $800,000 if awarded the Build to Scale grant.
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PRIOR ACTION/VOTE
The City of Murrieta was notified by the U.S. Department of Commerce Economic Development Administration on April 20, 2022, of Award # 07-01-07778 in the amount of $2,429,910 to renovate the Murrieta Innovation Center (MIC). That grant funding is currently being utilized to build a wet-lab and modern incubator space at the MIC, for which the City will be going out to bid for construction in November 2024.
CITY COUNCIL GOAL
Aggressively pursue economic development.
BACKGROUND
The City of Murrieta (City) Economic Development Department, in partnership with Murrieta Partnership DBA “Impact” Inc. (501c3), is applying for a grant from the U.S. Department of Commerce’s Build to Scale program, which is administered by the Economic Development Administration (EDA). This new grant would be used to fund lab management, operational materials, educational programming, and support services for innovators at the MIC.
The City is in the process of issuing bid documents in November 2024, for the construction of the new space within the MIC. To properly run this new incubator space, considering the ongoing management and operating costs at the MIC, the City has been seeking new funding options. The Build to Scale Grant is a potential option that offers funding for technology-focused, innovation-centric projects to support entrepreneurship.
The Build to Scale Grant program’s description is as follows:
EDA invites organizations that support technology and innovation-centric, high-growth companies (including but not limited to startups) as they develop, demonstrate, and deploy the next generation of critical and emerging technologies to apply for Build to Scale funding. The Build to Scale program aims to:
• Build public and private capacity for entrepreneurs and innovators to invent, improve, and bring to market new products and services in critical, emerging, and transformative sectors and industries;
• Accelerate the growth of regional economies that are focused on industries of the future;
• Empower communities to provide proof-of-concept and commercialization assistance to technology innovators and entrepreneurs; and
• Equitably and inclusively increase access to capital for technology-enabled entrepreneurs.
The U.S. Economic Development Administration has appropriated a funding total of $50,000,000 to the Build to Scale program. All grants under this program require a dollar-for-dollar match. The City has partnered with Murrieta Partnership DBA “Impact” Inc.’s (501c3) (Impact Riverside County) to meet this match of non-federal funds totaling $800,000 to be able to apply for a potential grant of $800,000 which would result in a total of $1.6 million in funding to be used at the MIC. An agreement with Murrieta Partnership DBA “Impact” Inc.’s (501c3) (Impact Riverside County) will be executed to ensure the commitment of the match of non-federal funds.
Awards made under the Build to Scale program may only fund operational and programmatic costs related to developing and supporting regional innovation initiatives. Award funds may not be passed or transferred directly to beneficiaries (i.e., participant startup companies and individuals) served by the program being funded by award funds, but recipients may use award funds to facilitate access to equipment, facilities, expertise, or other resources critical to commercializing technologies via an objective, unbiased process.
FISCAL IMPACT
There is no fiscal impact statement associated with the acknowledgment of the grant application process. If the City is awarded a Build to Scale grant, staff will bring a report back to the City Council to accept the award and to appropriate the City’s $400,000 contribution.
Funding for this grant requires a dollar-for-dollar match of non-federal dollars, which the City and the Murrieta Partnership DBA “Impact” Inc. (501c3) would split, effectively making the cost to the City 25% of the total funding amount. The City is seeking $800,000 in grant funding, with a $400,000 match requirement from the City and $400,000 from Impact Riverside County. The grant funds would need to be spent during a (5) five-year term, as the City gets the Murrieta Innovation Center lab management and programming established. Prior to the end of this (5) five-year term, they will need to source new funding opportunities.
ATTACHMENTS
None.