HomeMy WebLinkAbout04/07/1998, 3 - RESOLUTION REGARDING LOCAL RESEARCH PARK INITIATIVE councit
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C I T Y OF SAN LU I S OBISPO
FROM: Ken Hampian,ACAO
Prepared By: Ken Hampian, ACAOO/
Diane Sheeley, Economic Development Manager �S
SUBJECT: RESOLUTION REGARDING LOCAL RESEARCH
PARK INITIATIVE
CAO RECOMMENDATION
Adopt a resolution supporting and encouraging California Polytechnic State University (Cal
Poly)to play a leadership role in developing a local research park initiative to enhance and attract
research and technological incubator interests to the City.
DISCUSSION
Background
On March 18, 1998, the City Council held a study session with Technology R&D, Inc., a non-
profit recently formed to promote a business research park relationship between Cal Poly and
emerging,technology-oriented companies (formerly called the California Central Coast Research
Park Committee [C3RP]). The session was scheduled so that Technology R & D leaders Bob
Schiebelhut and Dr. Allen Haile could provide the Council with a status report on the first phase
of a feasibility study undertaken by the Bechtel Corporation. The purpose of this phase of study
is to determine if the pre-conditions exist to establish such a research initiative locally.
A key conclusion already reached by the consultant is that success can only be achieved if Cal
Poly plays a strong leadership role in the endeavor. Cal Poly does not wish to play such a role
without the clear interest of various stakeholder groups, including the City. Therefore, the
Council has been asked to adopt a resolution urging University leadership. A letter from
Technology R&D providing further background is provided as Attachment 2.
What is a Research Park Initiative?
Such an initiative can take many forms, including "virtual" business incubators (non "brick and
mortar" partnerships such as those undertaken in the City of Fort Collins), physical incubators
that are either centralized or de-centralized, or a research park facility. Most who have been
involved thus far do not envision starting with a major facility, although over the long term,
some kind of facility (or facilities) will most likely be needed. However, this issue will not be
considered until the second phase of study.
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Council Agenda Report—Local Research Park Initiative
Page 2
Getting to Phase H of Study
In order to get to Phase lI of the study, Phase I needs to be completed. To complete Phase I,
Bechtel needs to be paid. Technology R&D, Inc. is the mechanism by which debt can be
incurred and funds raised during the initial stages of the study. As Technology R&D completes
its fund-raising, it has asked Cal Poly to "front" study costs. Cal Poly does not wish to do so
until its leadership role has been affirmed by key stakeholders, including the City.
Study Session Issues: City Support and Interests
Over a period of several years, the City Council has established economic development goals in
support of forming strong ties among our higher education institutions (Cal Poly and Cuesta), the
business community, and city and county government. Attachment 3 outlines several City policy
links which, directly or indirectly, support business research partnerships and/or incubator space
to encourage the kind of clean, high-tech jobs sought by the City. Therefore, the City is actually
already on record in support of the concept.
However, during the study session the Council also noted that little is presently known about the
work that has been undertaken thus far, and asked that when the first phase of study is
completed, aggressive efforts are made to communicate the results to the community and to all
stakeholders. The Council also emphasized that public involvement must be an integral part of
subsequent work phases,if the desired goals and partnerships are to be successfully achieved.
With the understanding that encouraging community involvement/public outreach will be
incorporated in to the resolution, the Council directed staff to prepare a resolution for the April
7' Council meeting. The proposed resolution includes these sentiments and also offers City help
to Cal Poly and the committee in achieving the desired level of community outreach.
CONCURRENCES
In late 1997, the Central Coast Software and Technology Association (Softec) endorsed the
research park concept (Attachment 4). On March 3, 1998 a resolution of support was adopted
by the Board of Supervisors (previously distributed). The San Luis Obispo Chamber of
Commerce has also formally endorsed the research park concept and is on record urging Cal Poly
leadership. Numerous other groups and businesses are represented on the committee which has
been exploring this concept. The businesses to be fostered through such an initiative are exactly
the kinds endorsed by Council at the recommendation of the Target Industry Cluster Committee.
FISCAL IMPACT
Adoption of the resolution will not have any fiscal impact on the City. Funding for Phase I is
expected to be fronted by Cal Poly and ultimately supported by funds raised through Technology
R&D, Inc. However, the City Council may be asked for financial support in the future.
3-Z
Council Agenda Report—Local Research Park Initiative
Page 3
ALTERNATIVES
The Council could choose not to adopt the resolution. If this were to occur, the City will be
perceived as not supporting the concept of the local research park initiative and Cal Poly would
most likely not participate. Given the City's past policy support for this idea, and especially
since the concept is intended to support exactly the kinds of businesses the City wishes to
encourage,this alternative is not recommended.
ATTACHMENTS
1.Resolution
2. Letter to Council from Bob Schiebelhut(March 12, 1998)
3. City Policy links to business research park(March 18, 1998)
4. Softec Endorsement
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RESOLUTION NO.
SUPPORTING AND ENCOURAGING CALIFORNIA POLYTECHNIC STATE
UNIVERSITY'S LEADERSHIP ROLE IN DEVELOPING A LOCAL RESEARCH
INITIATIVE TO ENHANCE AND ATTRACT RESEARCH AND TECHNOLOGICAL
INCUBATOR INTERESTS TO THE CITY
WHEREAS, the City Council of the City of San Luis Obispo has long recognized the
increasing contribution of knowledge-based and technological-based businesses in our
community; and
WHEREAS, consistent with the adopted plans and policies, the expansion of such
businesses is desired by the City in order to create improved employment opportunities for local
residents; and
WHEREAS, the City has established goals encouraging the development of strong
linkages between such businesses and California Polytechnic State University(Cal Poly)in order
to provide these business with greater access to University-based research,technology,
instruction,talent and facilities; and
WHEREAS, a not-for-profit organization known as "Technology R&D,Inc.",
comprised of volunteers in the community,is serving as a catalyst for establishing a Cal Poly
research initiative; and
WHEREAS,Cal Poly has unique strengths in applied research and scholarship that
cannot be found elsewhere in the community,making Cal Poly's leadership essential to the
success of the endeavor, and
WHEREAS,the potential of the community to prosper is enhanced by cooperative efforts
among its various constituencies.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of San Luis
Obispo:
1. Supports and encourages a Cal Poly leadership role in developing a research initiative
for the purpose of enhancing research and technological incubator activity in the City of San Luis
Obispo; and
2. Commits to assisting the University in this role by encouraging Technology R&D to
include a strong community outreach effort in the further study and development of the research
initiative,whether that initiative takes the form of strategic alliances between businesses and Cal
Poly resources and/or the eventual development of an appropriately located research facility.
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ATTACHMENT
On motion of seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of 1998.
ATTEST:
Bonnie Gawf, City Clerk Mayor Allen K. Settle
APPROVED AS TO FORM:
J e Jor erase ity ttorney
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March 12, 1998 0E3 FIRE CHIEF
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Mayor Allen Settle HAND DELIVERED
San Luis Obispo City Council Members
990 Palm Street
San Luis Obispo, California 93401
Dear Mayor Settle and Council Members:
This report is being proffered by Technology R&D,1nc.,a non-profit corporation comprised
of interested volunteers in the San Luis Obispo community. The purpose of our corporation is to
serve as a catalyst for the establishment of a Cal Poly related research park. Our group strongly
believes that Cal Poly,its students and faculty, and the entire community of San Luis Obispo will
receive substantial benefits from a University related research park.
Technology R&D,Inc. is the formal successor to an ad hoc community-based task force
called Califomia Central Coast Research Task Force(CRP)which Allen Haile and I have co-chaired
for over one year. This group is a"grass roots"effort and includes representatives from the City and
County of San Luis Obispo,the Chamber of Commerce,the Economic Vitality Corporation, Softec
(a local association of a high-tech firms), California Space and Technology Alliance,PG&E,and Cal
Poly.
Background 1jigm.
During the past 10 to 15 years there has been considerable discussion in the San Luis Obispo
community in favor of the establishment of a University related research park. Some ad hoc efforts
were initiated but never reached fruition. Our group is determined to establish a feasible University
related research park
Our group has spent considerable time with founders of research parks throughout the
country, including George Kozmetsky, founder of the IC2 Institute of the University of Texas at
Austin. We have attended various conferences sponsored by the American Association of University
Related Research Parks.
._...-RECEIVED -
MAR 1 2 1997
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ATTACHMENT 2
Mayor Allen Settle
San Luis Obispo City Council Members
March 12, 1998
Page 2
Our task force recognized that a comprehensive feasibility study would be required before
this project could progress. Because of the involvement of governmental agencies,we attempted to
develop a RFP and bidding procedure for such a study. However,we soon realized that the process
was too time consuming(involving more than one year)and would jeopardize our efforts. We needed
to move quickly to maintain momentum,and given the relationship and good will of Allen Haile with
Bechtel Corporation,we chose another course. In October we were able to negotiate a feasibility
project with Bechtel at a reasonable cost. Moreover, Bechtel committed substantial resources to
complete the study quickly. The Bechtel feasibility study is divided into two phases: first, to
determine whether a Cal Poly related research park is feasible in this community; and second, to
identify the best site(s)and articulate a strategic plan. More specifically,the first phase contains an
analysis of San Luis Obispo and its inter-relationships with Cal Poly, and a review of successful
research parks around the country, including assessments made through personal visits to the
University of Utah and Virginia Tech,for the purpose of designing a feasible prototype for San Luis
Obispo.
San Luis Obispo Community Involvement.
Our investigation has revealed one critical fact: The university must take a leadership role by
contributing its resources, including financial, if a university related research park is to prove
successful. A major focus of the task force over the past year has been consensus building among
various stakeholders in the community. The existing high tech business community in San Luis
Obispo is very interested in establishing relationships with the faculty and students of Cal Poly in a
more productive way.
The County of San Luis Obispo has passed a resolution identifying the knowledge-based
industries as a priority for development and recognizes that Cal Poly is critically important to the
success of a research park. Softec has also passed similar resolutions. We respectfully request that
the City of San Luis Obispo also pass a similar resolution. (County resolution attached. )
The San Luis Obispo Chamber identifies Cal Poly as a"secret weapon"and enthusiastically
supports our efforts to develop a University-related research park. The San Luis Obispo County
Economic Advisory Committee has supported our group and has made the establishment of research
park a priority. The Economic Vitality Corporation of San Luis Obispo County has also identified
our group as the vehicle to facilitate the establishment of University research park.
Onnortunity and Challenge.
The global economy is increasingly becoming information and knowledge driven. The
economic well-being and the quality of life in San Luis Obispo will be linked increasingly more to
the ability to generate knowledge and produce reality for the manipulating knowledge. The wealth
generating activities in the San Luis Obispo region,and the Cal Poly campus,must be a part of and
in step with regional economic development. The role of Cal Poly is not only essential,but must be
3-`7
Mayor Allen Settle
San Luis Obispo City Council Members
March 12, 1998
Page 3
irticulated as a vital link between creating knowledge and marrying it to wealth generating activities.
The core mission of the University - teaching and learning - merges with our core mission of
knowledge-based wealth generation efforts.
Next Stens.
The next step is to bring the Bechtel first phase feasibility study to a close. A final draft will
be available in the near future and a final report issued thereafter. The report will focus on current
environmental constraints and opportunities, including the emerging global economic trends that
differentiate future opportunities for a University related research park. The report will establish a
launching pad for phase two, a site specific study and strategic plan development.
As part of the strategy,our group will continue to act as the catalyst,and maintain its ongoing
relationship with Bechtel.
Technology R& D, Inc. and its predecessor the task force,has far surpassed any previous
effort to establish a University research park. While there is risk that a University research park may
not be established, it is the strong belief of those in our group that this is a feasible concept that can
be brought to fruition at this time,and we are fully committed to its success.
We therefore request that the City of San Luis Obispo recognize our effort and join us in
asking Cal Poly to dedicate its resources so that our group can achieve its goal:the establishment of
a University related research park.
Thank you for your consideration.
Ver
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MEMORANDUM
DATE: March 18, 1998
TO: John Dunn, CAO
FROM: Ken Hampian, ACAO
Diane Sheeley, Economic Development Manager
SUBJECT: City Policy Links to Business Research Park
You asked that we research the City's policy background and "linkages" to the concept of a
business research park. Our findings are outlined below. You will note that some of the
linkages are direct,and others more indirect.
Business Research Park Committee (the first one)
During 1993, an informal committee was formed for purposes of discussing the potential for
creating a business research park either on the Cal Poly campus or elsewhere (e.g. Orcutt
Road). The Committee included Cal Poly representatives (Robert Koob, Frank Lebens), the
County CAO and a Supervisor (David Blakely), the City CAO and Mayor, the Chamber
Executive Director and President, and representatives from Cuesta College. Initially, the
committee was called the"Business Research Park Committee".
The 5 C's Committee (Cal Poly, Cuesta College, County, City and Chamber), as it later came to
be called, eventually ceased pursuing the research park idea, largely based on the availability
of the Norm Beko/Orcutt Road industrial subdivision, the uncertain status of the Airport Area
(at that time) and the perceived lack of a "champion" to purse the idea. The Committee turned
to other matters, becoming the base group for the sponsorship of the first Electronic Village
Conference. After Dr. Koob left Cal Poly, the Committee ceased to meet.
Economic Strategy Task Force Report Implementation
The first two references to a research park were in the October 1", 1993 "Recommendations of
the Economic Strategy Task Force", as stated below:
1. "Continue working closely with the County of San Luis Obispo and Cal Poly in support of the
development of a business research park" (page 25, under the heading of °Industry')
2. "Establish a Partnership Committee consisting of the City of San Luis Obispo, local
business leaders, and Cal Poly and Cuesta officials to identify and implement collaborative
programs for supporting mutual goals, such as taking better advantage of technology and
research resources." (page 27, under the heading of"Education)
In March 1994, the Council took action on the implementation of the various ESTF
recommendations. With regard to #1 above, the Council affirmed continued representation on
the "Research Park Committee" and directed the Assistant City Administrative Officer also
attend the meetings. With regard to #2, the Council concluded that the Research Park
Committee could fulfill the role, rather than creating a new"Partnership Committee".
ATTACHMENT 3
1995-97 Financial Plan
In this financial plan, the City Council approved expanding the Economic Development Program
to add staff and business recruitment goals. In addition to this "expansion goal", the Council
included a Major City Goal to assure commitment to previous economic development goals,
which was stated as follows:
"Implement the Economic Development Program approved by the Council in 1994"
The goals approved by Council in 1994 included the two ESTF implementation actions outlined
earlier.
In addition, the 1995-97 Financial Plan Economic Development Program Description (page D-
119) affirmed that ongoing activities should include:
"Collaboration with Cal Poly and others concerning such things as a conference facility and
business incubators".
Targeted Industry Cluster Committee (TICC) Report and Work Program
Although the 1997 TICC report did not explicitly mention a research park, two related goals
were recommended and ultimately endorsed by the Council:
• "Develop stronger networking linkages with Cuesta College and Cal Poly"
• "Support the development of incubator space"
Summary
Over a period of time, there has been the general realization that the community "underutilizes"
our higher education facilities of Cal Poly and Cuesta College, and that the research park
concept represents an opportunity to form tighter linkages between the City's economic
development initiatives and these educational resources.
Therefore, either directly or indirectly, some formal goals have been established by the City
Council to encourage a closer economic development relationship with Cal Poly and Cuesta
College. Some of these goals have been supportive of a research park concept and/or
incubator space to encourage the kind of clean, high-tech jobs sought by the City.
The City has not, however, taken any position as to where such facilities should be located.
Locations that have been discussed at one time or another by various parties have included an
Orcutt Road/Broad Street site, the Airport Area, and the Cal Poly campus. However, the City
Council's actions have only related to the concept, and have never dealt with the question of
location.
g:hampian/policy links
For details,contact Henry Hernandez,Chairman
Softec
1241 Johnson Avenue#130
San Luis Obispo,CA 93401
(805)542-8557 - .,
httpJ/wwwsoftec.org
E-mail:info@softec.org
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Softec Supports Proposed California Central Coast Research Park(C3RP) Concept*.
San Luis Obispo,California,December 1, 1997.Softec,the Central Coast Software and Technology
Association,would bice to voice its support-for the proposed California Central Coast Research Park
(C3RP)concept that is currently under consideration. The C3RP concept contemplates a university-
related research park in partnership with Cal Poly. Softec believes that it is a positive step for the
companies starting up and conducting business on the Central Coast,Cal Poly,and the community in
general.
Accordingly,Softec strongly endorses and supports this project moving forward in a positive manner
with good communication between the project teams,our group and the community at large.Softec
believes.that it will assist in the formation of new businesses and create a positive impact on the local
economy;while having little or no adverse impact on the quality of life issues that are important to our
local area.
The C3RP.wi11 foster technology transfer from Cal Poly to the business community,which gives our local
businesses a competitive advantage that promotes a vibrant local economy. The C3RP will promote the
further development of the local technology industry,an industry which is know nationwide for
producing high-paying jobs with low levels of environmental impact
Softec represents a diverse and highly influential membership of high-tech and associated businesses.
Because of this diversity,there exists different personal interests that could be affected directly by the
details of this project Due to this potential conflict of interest issue,Softec does not have a position as a
group regarding issues such as actual location,size or style of facilities,funding or other details.This
endorsement of the project is of the concept We would like to see it built and contributing to the
community.
Softec thanks those in the public and private sectors who are involved with the C3RP and encourages
them in their future efforts.
Softec(the Central Coast Software and Technology Association)is a California nonprofit,tax-exempt
(501(c)(6))corporation that promotes and facilitates networking(of the human kind),resource sharing,
advocacy,and economic development for the software and technology industries on the Central Coast of
California.It helps businesses and individuals establish contacts and share experience and technical
knowledge with others interested in software and technology.
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'Fo• efeaseD cern r•1�1997��'" ��` - .
ATTACHMENT 4