Council Delays TechColumbus Contribution

The city of Upper Arlington is considering continuing its support of local technology incubator TechColumbus.

Representatives of TechColumbus approached council members earlier this month to tell them that the organization hopes to continue its TechStart program, originally called the Entrepreneurial Signature Program, that supports technology-based startups around central Ohio.

To do so, TechColumbus is applying for $3.5-million grant from the Ohio Department of Development's Third Frontier Program, which would be matched dollar-for-dollar by $3.5-million raised from donors and local municipalities and counties.

TechColumbus will compete with other incubator organizations from throughout the state for the Third Frontier money. The Third Frontier Program is a voter-approved economic development initiative that provides money to technological industries.

Will Indest, vice president of venture development for TechColumbus, said the organization has gone back to a number of its original investors to ask for continued support.

"It's a pretty easy sell because the state matches now dollar for dollar, but we also are able to show some significant results in terms of job creation," he said.

In 2006, Upper Arlington pledged $150,000 to TechColumbus for a three-year period.

"It started out as a three-year project, but through managing it well, it stretched to a four-year project and ends at the end of 2010," Indest said. "We are going back to the state now for money to continue the program."

Indest said TechColumbus plans to submit its grant application to the Third Frontier Commission by Friday, Oct. 22.

At that time, he said he hopes to have all $3.5-million committed for the local match.

Upper Arlington city council likely will not vote on a contribution prior to TechColumbus' Oct. 22 deadline.
When TechColumbus officials approached council at its work session Oct. 4, a few members suggested they have more time to decide if Upper Arlington's previous $150,000 contribution provided the city with $150,000 in results.

"I would like to kick this around," council member Wade Steen said Oct. 4. "From a cost-benefit standpoint, I just want to make sure it's beneficial to us."

Council member Erik Yassenoff said he supports assisting TechColumbus again with the TechStart program.
"It's imperative, in my opinion, that we continue to support TechColumbus as they have been supporting Upper Arlington in business incubation," he said.

According to information TechColumbus presented to council, Upper Arlington's support of the TechStart program in 2006 helped four businesses in Upper Arlington receive $400,000 in funding from TechColumbus.

As of August, the four businesses — Epico, Health Care Data Works, MetroLinked and Natural Fiber Composites Corp. — have an annual payroll of $1.4-million that contributes to the city's income-tax revenue.
A number of other Upper Arlington startups in various stages of development also receive mentoring and other types of support from TechColumbus.

Matt Shad, deputy city administrator for economic development, said he planned to bring the subject up to the Community Improvement Corp. (CIC) at their meeting today (Thursday, Oct. 21).

The CIC cannot vote to donate money to TechColumbus but can recommend that council contribute.
"We will evaluate at the CIC meeting a renewal of our existing commitment," Shad said. "Our commitment is only good if the state's commitment were to come."