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Community & Economic Development
1200 County -City Building, 227 West Jefferson. South Bend, indiona 46601 - 1630, - Phone 574/235 -9371 Fax 574/235 -9021
To: South Bend Redevelopment Commission
From: Don Inks
Subject: State Certified Technology Park - Recertification Application
Date: November 26, 2012
When the State certified our Technology Park on January 1, 2009, it was for a period of four years.
Our certification will lapse at the end of 2012 unless recertified by the State. Attached is our
Recertification Application in the form provided by the State.
The University of Notre Dame has been instrumental in assisting with the collection of information
for this application, primarily because so much of the tech park business activity has occurred at
Innovation Park thus far. However, Ignition Park did see the first phase of infrastructure
development this year, along with its first business opening, Data Realty.
Investment by the University and the city in the two tech park sites has been significant over the last
4 years. The Universities of Notre Dame and Indiana have invested $33.5 million, while South
Bend has invested $22.5 million. 35 small businesses are located at Innovation Park, employing 81
people with annual payroll of $4.7 million. Two of the small businesses started at Innovation Park
have graduated to the next stage of growth. Data Realty has relocated to its new facility within
Ignition Park and F Cubed is making an interim move to the former St. Joseph High School and will
ultimately locate at Ignition Park.
Staff requests authorization to submit the Recertification application to the State.
What We Do Today Makes A DWerence!
CITY OF SOUTH BEND, INDIANA
CERTIFIED TECHNOLOGY PARK
(Campus Site and Sample Street Site)
CTP RECERTIFICATION CRITERIA
(Answers in Bold Below)
Total Employment and payroll levels for all businesses operating within the Certified
Technology Park ( "CTP ").
a. Include the aggregate payroll for all businesses operating within the boundaries of
the CTP at the time of designation and at the present time.
See Attachment 1
b. Include the name, industry sector, and number of employees of each business
operating within the boundaries of the CTP at the time of designation and at the
present time.
See Attachment 1
C. Include the name, industry, and number of employees of any companies that have
exited the CTP between the time of designation and the present time. Also
specify by company the reason for leaving the CTP.
See Attachment 2
Describe the nature and amount of any major capital investments made by
companies operating within the boundaries of the CTP.
Two research- related facilities have been constructed within the boundaries
of the CTP, both located at the Campus Site. Innovation Park at Notre
Dame ( "IPND ") currently houses a $15.8 million facility funded almost
entirely by the University of Notre Dame ( "Notre Dame" or "ND "). A two
million dollar Indiana Economic Development Corporation ("IEDC ") capital
grant was received to pay for a portion of the costs of constructing this
facility to promote research and innovation. Notre Dame funded the $13.8
million balance of the capital costs.
The construction of Harper Hall (also located on the Campus Site), a $19.72
million cancer research facility, was funded equally by Notre Dame and
Indiana University.
Data Realty Northern Indiana, LLC ( "Data Realty ") is a data center serving
small to mid -sized businesses in South Bend and throughout the Midwest.
The start -up company, initially based at IPND, has completed construction
on an approximately 45,000 square foot facility at an estimated cost of $153
million located on a five -acre parcel in the Sample Street Site (commonly
known as Ignition Park) and has re- located to the facility. Data Realty
expects to employ 15 people within the first year of operation of the facility.
Such employment figures should increase to 30 people with the anticipated
future growth of the company and the corresponding expansion of the
facility to approximately 100,000 square feet.
2. The nature and extent of any technology transfer activity occurring within the CTP.
a. Provide the names of any companies operating within the boundaries of the CTP
that have received awards from the Twenty -First Century Research and
Technology Fund, the Small Business Innovation and Research program, the
Small Business Technology Transfer program, or other grant programs designed
to support the growth of technology based businesses.
See list below:
(1) LoNo LLC: Small Business Innovation and Research Grants totaling
$705,000.
(2) RemSense, Inc. (d /b /a Mopil6): Small Business Innovation and
Research Phase I Grant of $100,000.
(3) US Nano, LLC: Small Business Innovation and Research Phase I
Grant of $100,000.
(4) Sorian Technologies: IEDC Economic Development Grant EDF -10-
327 of $200,000.
(5) PracticaChem, LLC: U.S. Department of Defense Medical Research
and Development Grant of $1.3 million.
(6) Nanosyntek, LLC: U.S. Department of Defense Research Grant of
$100,000 per year over three years, which is renewable.
(7) Data Realty applied for and received a state venture capital tax credit
for their investors. Data Realty has also been approved to participate
in the EB5- Immigrant Investor Visa Program.
b. Specify by company which award was received.
2-
See Response to Question 2(a).
C. Indicate which companies operating within the boundaries of the CTP are
utilizing intellectual property developed at an institution of higher education
See list below:
(1) Ionic Research Technologies, LLC - ND licensing discussions
underway.
(2) Sorian Technologies - ND license terminated by mutual agreement of
the parties.
(3) US Nano, LLC - ND licensing discussion initiated.
(4) EMU Solutions, Inc. - Current ND licensee.
(5) Indiana Integrated Circuits LLC - Current ND licensee.
(6) Silkworm Transgenics, LLC - ND licensing discussion initiated.
(7) Citrics Biomedical - Northwestern University Intellectual Property
utilized.
(8) F- Cubed, LLC - Current ND licensee.
d. Provide a description of the role of Indiana institutions of higher education in the
operation of the park. This should include any financial or in -kind contributions
from institutions of higher education, training and internship opportunities, access
to university facilities, or any other partnerships with institutions of higher
education.
The operating budget for Innovation Park at Notre Dame is subsidized by
the University of Notre Dame. A portion of the $1.4 million annual
operating budget for IPND is offset by revenues earned through tenant leases
and other auxiliary activities; the balance is subsidized by Notre Dame. For
fiscal years 2010, 2011 and 2012, the subsidies in each year by Notre Dame
were $920,000, $830,000, and $590,000 respectively.
Raclin- Carmichael Hall and Harper Hall are located on the Campus Site
within the CTP boundaries and operated equally and jointly by Indiana
University and Notre Dame. All of the operating expenses associated with
these two facilities are paid by Indiana University and Notre Dame.
3-
In addition to the above noted direct financial support for the two facilities,
client tenants of IPND have defined access to certain Notre Dame facilities,
such as the Nanotechnology Research Center, the University's new Energy
Center, and an 8,500- square -foot semiconductor processing and device
fabrication clean room in the new Stinson - Remick Engineering facility.
Notre Dame also sponsors the Engineering, Science and Technology
Entrepreneurship Excellence Masters ("ESTEEM") program, operating
within IPND, that augments the scientific and technical skills of individuals
who have already earned their bachelor's degree by providing the
opportunity to obtain the unique skills required to take science and/or
engineering inventions and translate them into commercial ventures. The
cost to Notre Dame to support this initiative is approximately $500,000 per
year.
The nature and extent of any non - technology businesses operating within the CTP.
a. Provide a list of all non - technology businesses operating within the boundaries of
the CTP, including but not limited to retail, hospitality and service (i.e. medical,
legal, finance, accounting) businesses.
See list below:
(1) Konica Minolta Business Solutions, Inc., and its partner,
Administrative Resource Options, manage the business center within
IPND, providing low cost design and document production services
for IPND client companies.
(2) Netech Corporation provides information technology services to the
staff of IPND and client companies.
(3) Blue Waters Group provided public relations services to IPND and
client companies from September 1, 2010 to June 30, 2012. Such
services promoted the progress of high technology client companies
within IPND..
(4) Fish Taco, LLC, an angel investment group, helped screen prospective
client companies for early stage funding prior to its departure from
IPND on January 26, 2012.
(5) Interplan Corporation is an angel investment group which invested in
Golnformatics, Inc., an IPND client company. Interplan Corporation
departed IPND on May 31, 2012.
-4-
(6) Maranon Capital, LP, is a private equity investment group which
helps screen prospective client companies for early stage funding at
IPND.
(7) The following non- technology businesses are tenants within an office
building which is located at the Campus Site of the CTP, immediately
east of the Raclin - Carmichael Hall and Harper Hall medical facilities:
University of Notre Dame (education); RW Armstrong (engineering);
Executive Suites (shared office provider); Wells Fargo (financial
services); O'Rourke's Irish Pub (ND Pub, LLC) (retail); Camelia's
Cosmetics (retaiUservice); Nicholas J. Salon & Spa, Inc.
(retaiUservice); and Outpost Trading Company, Inc. (d/b /a Outpost
Sports) (retail). These businesses are available to provide services and
support to tenants of IPND.
b. Explain how each of these non - technology businesses supports the objective of
creating high tech, high wage jobs at the CTP.
See Response to Question 3(a).
4. The use and outcomes of any state money made available to the CTP
a. Indicate how much money the community has received through the CTP
incremental tax financing fund established under IC 36- 7 -32 -22 and the
Technology Development Grant Fund established under IC 5- 28 -10.
To date, the South Bend Redevelopment Commission (RDC) has received
$812,791 through the CTP incremental tax financing fund (IC 36- 7- 32 -22).
Those funds were received based upon data supplied to the State of Indiana
through June 30, 2011. The RDC recently submitted documentation for the
year ending June 30, 2012 but has not yet received additional funds. No
Technology Grant Funds under IC 5 -28 -10 have been received.
b. Provide a complete and detailed accounting of how funds in part 4(a) have been
expended.
None of the funds received through the CTP incremental tax financing fund
(IC 36- 7- 32 -22) have been expended as the allocation of expenses for future
capital expansion and /or reimbursement for prior capital expansion within
the CTP has not yet been determined. As such allocation of expenses is
determined, the funds will be used toward those costs.
611
C. Explain how the expenditures described in part 4(b) support the objective of
creating high tech, high wage jobs at the CTP.
As noted in the Response to Question 4(b), these funds have not yet been
expended.
d. Describe the nature and amount of local funds (not including CTP incremental tax
financing fund revenue) invested in the development of the CTP from the time of
designation to the present time.
As summarized in the Response to Question I(d), Notre Dame and Indiana
University have collectively invested over $33.5 million of capital in the CTP.
In addition, the City of South Bend has provided over $22.5 million of capital
support primarily related to acquisition, demolition, relocation,
environmental remediation and new infrastructure (roads, water, sewer,
electric and metronet) to facilitate development at Ignition Park.
5. Please describe the CTP's progress to date in the context of the goals set forth in the
original application submitted to the IEDC, formerly the Indiana Department of
Commerce. If the CTP's progress to date differs significantly from the goals set forth in
the original application, please provide an explanation as to why this has occurred.
The CTP has met or exceeded each of the goals spelled out in the original
application to the IEDC.
6. An analysis of the CTP's overall contribution to the technology -based economy in the
community in which the CTP is located.
In addition to the information provided in the Responses to Questions 1 through 5
above, the impact of the CTP in this region has clearly been substantial, creating not
only new jobs but also a renewed optimism about the emerging ecosystem to
perpetuate these commercial inroads. For example, Innovation Park at Notre Dame
has partnered with other regional entities, such as the Small Business Development
Center in South Bend and several local professional service providers, to initiate
new programs to explore the commercial development potential of promising
technologies in Pre -Seed Workshops and Start-Up Weekend programs, among
others. Other key indicators include the acceleration of the development of new
technology ventures, such as Data Realty, a company originally located in
Innovation Park at Notre Dame, which has moved to its own free - standing facility at
Ignition Park (see Response to Question I(d) above). This new company will not
only store large data files for its clients at its facility, but also can provide fiber
connectivity to other new companies pursuing new commercial applications
emerging in high technology sectors. Aunalytics, Inc. is presently in development at
Innovation Park at Notre Dame with that specific purpose in mind. Another
company developed at Innovation Park at Notre Dame, F- Cubed, LLC ( "F-
Cubed"), is transitioning to interim facilities at Hillcrest Hall in South Bend, to
expand its operations five -fold and to hire additional staff, as it develops its
microlluidics technology for environmental, food safety and healthcare applications.
The City of South Bend and the South Bend Redevelopment Commission have
recently approved additional local financing to assist F -Cubed in transitioning to the
interim facilities at Hillcrest Hall and to promote the growth and success of the
company, with the intent that F -Cubed will relocate to Ignition Park.
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Community & Economic Development
1200 County -City Building, 227 West Jefferson. South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fox 574/235 -9021
To: South Bend Redevelopment Commission
From: David Relos, Economic Development Planne
Subject: Resolution No. 3106 — Fair Market Value of 1202 S. Lafayette Blvd.
Date: November 29, 2012
Attached is Resolution No. 3106, which sets the fair market value for 1202 S. Lafayette
Blvd., within the Airport Economic Development Area.
The proposed fair market value of the property, as derived by two independent
appraisals, is found in "Exhibit A" in the attached resolution.
Staff requests approval of Resolution No. 3106.
What We Do Today Makes A Difference!
RESOLUTION NO. 3106
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION APPROVING THE FAIR MARKET VALUE OF
PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA.
WHEREAS, the property identified at Exhibit "A" attached hereto and
incorporated herein has been appraised by two qualified, independent, professional real
estate appraisers and a written and signed copy of their appraisals is contained in the
Commission's files; and
WHEREAS, each such appraisal has been reviewed by a qualified
Redevelopment staff person and no corrections, revisions, or additions were requested
by such reviewer; and
WHEREAS, the reviewer has prepared a written report which indicates that the
appraisals are complete and consistent in the factual data contained therein, comply
with existing statutory and regulatory requirements and are acceptable for the
determination of fair market value.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission, governing body of the City of South Bend Department of Redevelopment,
that based upon such appraisals and the review thereof, the offering price of the
property described at Exhibit "A" is hereby established as stated therein and all
documentation related to such determination is contained in the Commission's files.
ADOPTED at a meeting of the South Bend Redevelopment Commission held on
November 29, 2012, at 1308 County -City Building, 227 West Jefferson Boulevard,
South Bend, Indiana 46601.
CITY OF SOUTH BEND
DEPARTMENT OF REDEVELOPMENT
ATTEST:
EXHIBIT "A"
RESOLUTION NO. 3106
Property I Size
1202 S. Lafayette Blvd
018 - 8004 - 0162,0164
Vacant Lot:
165'x 242'
Minimum Offering Proposed Use
Price
Projects that are
$47,000 permitted within the "GB"
and "GI" District zoning
designation.
Strong emphasis will be
placed during the review
process on compatibility
with the goals and
objectives of the Airport
Economic Development
Area planning area, with
an added preference for
development that
compliments and
enhances the
surrounding businesses
and neighborhood,
including the Ignition
Park PUD.