MEMORANDUM

TO: City Council

FROM: David J. Deutsch, City Manager

SUBJECT: Business Incubator Facility Feasibility Study Final Report

DATE: March 1, 2007

We have received the Business Incubator Facility Feasibility Study Final Report prepared by our consultants, ANGLE Technology Group. A copy of that report is attached.

At your December 4, 2006 meeting, you heard the results from Phase I (found on pages 7 through 69 of this Final Report). Based on the initial market analysis, the consultants found that a business incubation program could be supported in Bowie. As envisioned in our contract with them, they proceeded with Phase II: Business Plan and Financial Feasibility Study. The results of the Phase II effort are contained in the final report; that material begins on page 70.

The consultants will make a brief presentation on their recommendations at your meeting.

Shepherding a local incubator would be quite a challenge. The existing incubators in Maryland are generally affiliated with a county or a community-based nonprofit. Without the support of the County and/or a local nonprofit, the financial and management oversight would fall to the City.

A five-year financial recap reveals a potential City exposure of $660,000, based on an initial year at $70,000, followed by four years at $165,000.

There are too many issues for Council to act now, including cost/benefit analysis, need, direct/indirect potential City role, location and more. The proposed incubator should not be evaluated in isolation, but it should be measured against other existing and potential City programs and projects. Given the scope of the potential financial commitment required to make this a successful venture, I recommend that Council ACCEPT the consultant’s report, but take no further action at this time.

Business Incubator Facility Feasibility Study Final Report

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