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ICAD Group

Memo To: Board of Directors

From: Joe Raso

Date: January 12, 2011

Re: Board Packet

In keeping with our focus on core work that leads economic development in our region and state, this month’s 90 minute board meeting provides us an opportunity to learn and discuss our efforts to create a culture of innovation for our organization and region.

Our agenda is chalk full of action items for you to review prior to the meeting, including:

1. Voting On Two New Board Members – Johnson County is rotating their board member’s service to our board and has requested Janelle Rettig serve as their representative for the next two years. In addition, Tom Markus will be serving as one of two representatives from the City of Iowa City. Both organizations are requesting that the ICAD Board of Directors approve their appointments to the ICAD Board.

2. Second Quarter Financials – Please take a moment to review the summary report and attached balance sheet and P&L for the second quarter.

3. Creating a Culture of Innovation – An outcome of last year’s strategic planning process was to have staff develop a business plan for the creation of a co-working space that would house ICAD Group and a collaborative work environment for the creation of new ideas and companies. As part of this charge, ICAD Group has also been working to develop the necessary brand, people and events that tie strategically into the space we hope to create. Mark Nolte and I will provide a presentation of our current status with these initiatives, and would ask that you read the attached documents that will aid in our discussion.

4. Staff Reports – In addition to the advancement of our entrepreneurial initiatives, we are making great headway with other core work. Should time allow, we will provide updates on significant activities in business recruitment, existing industry, regionalism and workforce development.

As always, don’t hesitate to call me (936-5610) should you have any questions prior to Friday’s meeting. Thank you.

Iowa City Area Development Group Board of Directors

Friday, January 14, 2011 7:30 a.m. – 9:00 a.m.

Quad City International Airport Conference Room Iowa City Area Chamber of Commerce

AGENDA 1. Call to Order and Introductions Fisher 2. New Board Member Nomination (Board Action Required) Fisher Tom Markus – City of Iowa City Janelle Rettig – Johnson County Board of Supervisors 4. Consent Agenda (Board Action Required) Fisher Second Quarter Financials Board Minutes – November 2010 5. Creating a Culture of Innovation Raso & Nolte White Paper on creating this culture iQ brand and its components Business Plan for ICAD Group and Co-Work space 6. Staff Reports Existing Industry –Synchronist interviews Business Recruitment – prospect updates, shovel ready

Workforce Development – Laborshed presentation Jan 19, virtual military hiring workshops, ACT learning lab

Regionalism and Branding – Regional ED Strategic Plan, Branding data presented, seven-county regional marketing group forming 7. Directors Comments Next Meeting: Investor Council – February 11, 7:30 a.m., Brown Deer Board Meeting – April 22, 2011, 7:30 a.m.

Iowa City Area Development Group Financial Activity Report

For the Period Ending December 31, 2010 REVENUE, GAINS, AND OTHER SUPPORT:

Through the first half of our fiscal year, total income is 15% favorable to budget, with our largest income category, Private/Public Investments, 12% favorable to budget at $442,000, which is primarily due to prepaid investments for FY2012 of $35,000. Though not noted in the report, outstanding investor accounts receivables of more than 30 days total $21,500 (14 investors). Staff is keeping a close eye on our receivables and will work with the executive committee should further action be needed.

EXPENSES:

Office expenses were 35% unfavorable to budget, due primarily to the purchase and contract on a new printer, communications equipment and staff computer. Staff expenses were 13% favorable to budget. Business recruitment was 55% favorable to budget ($32,000) and can be attributed to not paying out the full cost of industry research and marketing of the shovel ready sites program. Communications was 18% favorable to budget ($9,300). Expenses for workforce business services were 71% unfavorable ($16,600) to budget, due to expenses for Laborshed and Benefit survey work. A portion of these expenses will be paid for by regional partners such as Priority One. No other major expense category had significant outlays of resources in the first six months.

Overall, expenses for the first six months are 13% favorable to budget.

LIQUIDITY:

The organization’s liquidity has increased from the close of business on June 30, 2010, with net assets for the first six months rising more than $12,000 to nearly $512,000. The organization’s financial position still remains strong.

4:00 PM 1/03/11 Cash Basis

Iowa City Area Development Group, Inc. Balance Sheet

As of December 31, 2010

Dec 31, 10 Jun 30, 10

ASSETSCurrent Assets

Checking/SavingsHills Bank & Trust Checking 35,925 43,415Hills Bank & Trust Savings 76,241 76,054Wells Fargo Checking 100 100Wells Fargo Savings 89,699 89,615MidWestOne Bank Checking 95,845 91,358US Bank Checking 81,556 90,278UICCU Checking 6 6UICCU Savings 68,215 25,424UICCU CD 100,290 100,000Petty Cash 55 55

Total Checking/Savings 547,931 516,304

Accounts ReceivableAccounts Receivable -36,100 -18,000

Total Accounts Receivable -36,100 -18,000

Total Current Assets 511,831 498,304

TOTAL ASSETS 511,831 498,304

LIABILITIES & EQUITYLiabilities

Current Liabilities

Other Current LiabilitiesEmployee Benefits -147 -138Payroll Liabilities 4,068 0

Total Other Current Liabilities 3,921 -138

Total Current Liabilities 3,921 -138

Total Liabilities 3,921 -138

EquityRetained Earnings 498,443 484,230Net Income 9,467 14,213

Total Equity 507,910 498,443

TOTAL LIABILITIES & EQUITY 511,831 498,443

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3:34 PM 1/03/11 Cash Basis

Iowa City Area Development Group, Inc. Profit & Loss Budget vs. Actual

2nd Quarter FY2011

Oct - Dec 10 YTD Budget $ Over Budget % of Budget

IncomeInvestments 230,151 441,953 394,607 47,346 112%Marketing Income 0 0 10,000 -10,000 0%Grants/Reimbursements 1,250 16,250 0 16,250 100%Events 1,259 8,251 5,000 3,251 165%Interest Income 774 1,373 1,250 123 110%Miscellaneous Revenue 258 3,979 0 3,979 100%

Total Income 233,692 471,806 410,857 -177,165 115%

ExpenseOffice 29,184 43,718 32,500 11,218 135%Staff 135,082 302,365 346,376 -44,011 87%Existing Industry Services 2,113 2,367 3,500 -1,133 68%Business Recruitment 19,164 26,930 59,250 -32,320 45%Communications 21,688 41,636 51,000 -9,364 82%Workforce Business Services 26,527 40,111 23,500 16,611 171%Entrepreneurial Development 2,793 2,821 10,000 -7,179 28%Technology Corridor 306 2,360 5,000 -2,640 47%Other Expenses 14 31 1,500 -1,470 2%

Total Expense 236,871 462,339 532,626 -295,754 87%

Net Income -3,180 9,467 -121,769 118,589 -8%

Page 1 of 1

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Iowa City Area Development Group, Inc. Board of Directors Meeting October 8, 2010 Minutes

MEMBERS PRESENT: Tim Bradshaw, David Bywater (arrived 7:40 a.m. #3; left 9:00 a.m. #8), Jordan Cohen, Jeff Disterhoft (left 8:45 a.m. #7), Scott Fisher, Bart Floyd, Tom Goedken (left 8:30 a.m. #6), Pat Harney, Kelly Hayworth (left 8:45 a.m. #7), Ryan Heiar (arrived 7:55 a.m. #5), Dale Helling, Tom Hobson, George Hollins, Gary Hood (left 8:45 a.m. #7), Kim Johnson, Ken Kates, Brad Langguth, Hass Machlab, Jerry Melick, Kevin Monson, Nancy Quellhorst, Jim Schreck (left 9:05 a.m. #8), Madeline Windauer and Pamela York. MEMBERS ABSENT: Kevin Digmann, Tom Gelman, Matt Hayek, Chuck Peters, Ronald R. Reed, Lynn Rowat and Damon Terrill. STAFF PRESENT: Eric Hanson, Sheri Jelinek, Joe Raso and DaLayne Williamson. STAFF ABSENT: Mark Nolte. GUEST PRESENT: Steve Kuhl (Greenwood & Crim)

1. CALL TO ORDER & INTRODUCTIONS Chair Fisher called the meeting to order at 7:30 a.m.

2. NEW BOARD MEMBER NOMINATION Kim Johnson has replaced Dee Baird at Kirkwood Community College as Executive Vice President for Continuing Education and Training Services. She has been nominated by Mick Starcevich, President of Kirkwood Community College, to serve on the ICADG board. Hayworth made a motion to approve the nomination of Kim Johnson as the Kirkwood Community College representative on the ICADG Board of Directors. Seconded by Monson.

MOTION CARRIED

3. PRESENTATION OF FY2010 FINANCIAL REVIEW & FORM 990 TAX FORM Steve Kuhl, from Greenwood and Crim, provided some background information regarding the differences between an audit and a financial review. He presented the financial review for ICADG along with the completed Form 990 for board approval. Windauer made a motion to approve the FY2010 financial review and 2009 Form 990 for filing as presented. Seconded by Quellhorst.

MOTION CARRIED

4. CONSENT AGENDA The first quarter financials for FY2010 and August 2010 Board minutes were provided in the board packet. York made a motion to approve the financials and minutes as presented. Seconded by Goedken.

MOTION CARRIED

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5. TECHNOLOGY CORRIDOR AND REGIONALISM UPDATES Fisher reported there will be no Technology Corridor Committee meeting in the fourth quarter of 2010 to allow Dee Baird to settle into her new role at Priority One. Raso and Baird will work together and have their first meeting scheduled for October 19. The Corridor Business Alliance is staying on track and moving forward with initiatives. Members present requested a report on the metrics from the different initiatives at a meeting in the near future.

6. WORKFORCE BUSINESS SERVICES PRESENTATION AND DISCUSSION: Williamson reported the results of the Synchronist Human Resources Supplemental Survey conducted in late FY2010. The survey contained 27 questions regarding out-of-state hiring, hiring recent college graduates and military, internships and H-1B visas. The response rate was 58 percent. Williamson also provided a demo of the Chumra website, called JobsEQ, to show how ICADG is using the information to respond quickly to requests and for analysis to help with future business development and workforce planning. Williamson distributed a list of upcoming events. ICADG will host a H-1B Visa Lunch & Learn on October 26 in the QCIA Conference Room at the Iowa City Area Chamber of Commerce. Space is limited and RSVPs are required.

7. STAFF REPORTS Existing Industry Raso presented at PDI’s Business Retention & Expansion Conference in late September to share how ICAD Group is utilizing Synchronist to aid companies and communities. Raso stated that a systematic use of such programming is not happening enough across the state but efforts are underway to improve on this. A group of organizations (IDED, IBC, ABI, Regents, Community Colleges, utilities, etc.) have formed the Best of Iowa Coalition to drive data collection and analysis on our existing industries across Iowa. Recent data collection from companies indicated a need to focus on nine issues:

Improving our Tax System Maintaining Right to Work status Health Care Reform Simplifying Regulations/Codes/Inspections Environmental Issues Educating and attracting a skilled workforce Need for Available Land and Buildings Need to assist mature companies that have maturing products Providing support for high value & high growth companies

Business Recruitment Raso presented the Prospect Report as provided in the packet. Entrepreneurial Development Raso provided an update on the Culture of Innovation events and will provide an update at the January 2011 board meeting regarding the branding of such events and a business plan for creating a co-working space in our market.

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8. DIRECTOR’S COMMENTS Johnson thanked ICADG for their support on two grant applications and announced that one was approved. Melick noted the FCC broadband network plan is a concern. Machlab noted the new ISE facility will be ready in April 2011. Bradshaw reported the airport is working towards new service additions. Helling announced the new city manager, Thomas Markus, will start December 1.

9. ADJOURNMENT: Chair Fisher adjourned the meeting at 9:07 a.m. NEXT MEETING:

Iowa City Area Development Group Board of Directors Meeting

Friday, January 14, 2010 – 7:30 to 9:00 a.m. QCIA Conference Room, Iowa City Area Chamber of Commerce

Iowa City Area Development Group, Inc. Executive Committee Meeting

January 7, 2011 Minutes

Present: York, Reed, Peters, Goedken, Monson, Hayworth Absent: Fisher Guests: Tom Markus Staff: Raso

1. One Year Fundraising Extension – Staff continues to work on calls to investors. We have roughly $150,000 in investments still to be finalized, excluding Johnson County.

2. Culture of Innovation discussion – Raso shared three documents with the

committee. The first was a white paper describing why we need to create a culture of innovation in our region; what that culture looks like; and activities we should be undertaking to build it. The objective is to have the Corridor Business Alliance adopt this white paper and distribute it through the media and regional leaders to share our common vision. Raso indicated that at this time he things most of the CBA membership is supportive of this concept but will know for certain at the Jan 19 CBA meeting. Peters indicated that this is a good start but the development of this culture is a huge undertaking. He indicated that the science of innovation is ahead of the culture of innovation for our region and that someone is needed to facilitate this process.

Raso also shared the IQ branding process and current status with the creation and implementation of the brand, event and people that will help to accelerate this culture of innovation. Committee members comments were to continue to move this forward and to not be held up by any one person or organization on keeping the momentum moving forward.

3. Targeted Industry Research – Raso indicated that initial presentations have

been made by the MBA research team in the areas of solar, educational services, and IT. Follow up meetings will take place in mid-January with the hope of having the secondary research completed on all six sectors by mid-February.

4. Regional Branding – Presentations were completed on the initial research.

Some concerns were raised about the presentation of this information; research that was conducted; and the brand platform that was developed from the research. That said, it was shared by Raso and committee members that we’ve all committed to this process and must work as a team to advance this work. Another meeting of the Branding Taskforce will be held in the coming weeks and any issues about the process thus far are hoped to be addressed.

5. Regional Economic Development Strategic Planning – Raso indicated that he is working with Baird, Nelson and Elliott to develop the plan by the end of June. Planning meetings and a summit are being scheduled this month.

Iowa City Area Development Group, Inc. Executive Committee Meeting

December 8, 2010 Minutes

Present: Fisher, Reed, Peters, Goedken, Monson, Hayworth Absent: York Staff: Raso

1. One Year Fundraising Extension – Staff has assigned itself around 70 calls to make that were not completed by board members. There is still roughly $185,000 in requests to get locked down, excluding the request for $45,000 from Johnson County.

2. Having Investors Serve on Standing Committees – Raso reported that he has

been approached by a few investors interested in being more involved with the organization. He suggested that the five standing committees – workforce, business recruitment, business retention, entrepreneurial development, and communications be opened for investors to serve. The Executive Committee agreed with this suggestion and asked staff to contact investors.

3. Austin, Texas visit – Raso met with several Austin area leaders in early

December as part of a fact-finding mission and conference amongst economic development leaders from around the country. Austin leaders indicated that their success has more to do with the culture of inclusion and connectiveness that they’ve created over the years than another other attribute. Much of this started 35-40 years ago when the University of Texas leadership got together with state and community leaders to work on building this culture. Raso suggested that a team of individuals from our region spend a couple days in Austin early next year to see first-hand what they’ve accomplished and how it was done. And to follow this visit up with a larger event in our region where we would invite a few key leaders from Austin to come to the Corridor for a sharing of this story.

Committee members said we need to be very thoughtful about doing these road trips and suggested this be a discussion for the CBA. It was also mentioned that it is very important to develop a plan for what to do with the outcome of such a trip.

4. Regionalism – Raso reported that the state has funded our regional marketing

request from IDED for $70,000 (we had requested $100,000). These funds will be used for regional brand implementation and entrepreneurial initiatives. Reporting of the regional branding work will take place on December 20. Regarding the regional strategic economic development plan, Baird, Raso and

Nelson are meeting with Doug Elliott from ECICOG to see about joining efforts to create a public/private regional planning document.

5. Co-Work Space – Efforts continue on the development of the business plan

for the co-work/ICAD Group space. A draft business plan should be presented to the board at the January board meeting.

Taking the First Steps on the Quest to

Create a Regional Culture of Innovation

Abstract:

Our region can be recognized internationally as a vibrant hub for commerce and lifestyle if we

take action to cultivate a true culture of innovation where the predominant mindset is one of

openness and collaboration. When we realize the potential of this cultural shift, we will

improve the way in which we live and work and, as economic development organizations, be

more successful at our core work creating, retaining and attracting commerce.

Statement:

Richard Longworth, Fellow at the Chicago Council on Global Affairs and author of Caught in the Middle,

recently keynoted an economic development event in our area and illustrated how the changing global

economy is separating regions into winners and losers. According to Longworth, those areas who fail to

embrace this new landscape will have no place in tomorrow’s economy. We are already witnessing

many Midwestern communities educating young people only to see them leave; taking their ideas and

dreams with them as they seek out vibrant areas adept at assisting and leveraging the talents they offer.

These increasingly mobile workers, and the companies for whom they work and create, will gravitate to

regions that embrace a mindset of inclusiveness – one defined by open networks of ideas, people and

capital.

The Cedar Rapids/Iowa City Corridor has fared comparatively well during this most recent recession, but

now is not the time to return to business as usual. Rather, it is time to engage in the “Good to Great”

conversation and embrace the changing global economy.

We have many of the assets and ingredients in place or at hand to join other dynamic regions such as

Austin and Boulder which attract people and capital. These regions truly demonstrate and constantly

work to enhance their cultures of innovation. Nothing is preventing our region from achieving this same

kind of success and generating international recognition and acclaim. Nothing, that is, except a deep‐

rooted Midwest mindset that all too often perpetuates comfort with the traditional status quo, is overly

risk averse, and considers novel thinking as a fad challenging traditional institutions.

What steps are required as we begin our quest toward a regional culture of innovation?

Step One: Understand What it Means to Live in a Culture of Innovation

The Midwestern mindset has not always been anti‐innovation. Companies such as John Deere, Pella,

Amana and others became what they are as a result of embracing challenging ideas and taking

calculated risks. After economic shifts and scares of the 1980s and early 2000s, Midwesterners now

relish our role and responsibility for being the devil’s advocate, protecting our turf. When confronted

with new ideas, we are quick to discuss potential pitfalls, satisfied that we have helped a friend or

colleague mitigate unnecessary risk and in doing so have unknowingly held to the status quo. What

appears to be leadership is actually prejudgment and assumption. We are prone to getting bogged

down in the “how” before we truly understand the value of the “why.”

Ask anyone who has ever started a business in our area or state in the past twenty years how

challenging it can be to open minds and gain support for a new concept. Better still, ask those who

chose not to open a business or who left the area altogether. It is hard enough to start a new venture

without the additional challenges of overcoming the antagonists. You may be prone to this state of

mind even now, without knowing it, coming up with reasons why a culture of innovation is not the best

approach. It is not surprising the state of Iowa is near the bottom of most rankings on new company

formation and capital growth, while also near the top in percentage of companies operating for more

than thirty years. It is not that company longevity is bad, in fact retention and growth are economic

drivers. What is becoming increasingly important is developing a balanced portfolio of new and

emerging companies with established operations that embrace creativity and innovation.

Overcoming the status quo mindset will be THE CHALLENGE. But just like in business, where successful

companies recognize everything they touch is part of the sales process, so too must we seek to realize

innovation should be the foundation of everything we do as a region. This culture will be defined by an

inquisitive nature which is open to serendipity; realizing new markets are found and created when we

look beyond sector limitations and open our thinking. We must reprogram ourselves to accept the

merits of new ideas without feeling threatened. We must recognize that long term social capital is as

important as short term monetary gain to our collective vision and our future success as individuals,

organizations, businesses and communities. In the end, we will learn that longevity is fueled by

innovation, rather than seeing them as adversaries.

A culture of innovation is not merely the realm of the entrepreneur, but an embrace of a level of

thinking for each of us in the Corridor who yearn to achieve our highest potential. It is a systemic

rethink of how we plan, engage and solve problems as people, professionals, businesses, organizations

and governments. Led by an understanding that the conventional may not be the most effective, this

cultural shift would move us away from the impulse to limit, control, protect, predetermine and restrict.

Instead, we would embrace a collective mindset which looks for the possibilities of new ideas and the

opportunities of change.

A richness of experience and personal growth arise when people begin interacting and sharing with

those they have not worked with or taken the time to understand. We must realize our turf need not

be mutually exclusive and static, but will be significantly more solid when flexible and shared.

Celebrating and embracing the uniqueness of our communities, business and people is not diluted nor

lost as we build this culture of innovation, but rather this process produces exponential experiences and

opportunities for us all.

Innovation arises when we allow ideas to migrate between and among a diverse set of minds. Rather

than coveting our thought process, innovation utilizes an open source model, embracing with

confidence that the collective and the individuals within generate significantly more rewards, credit and

profit than any one entity could have in isolation. These are traits that define regions like Austin and

Boulder. Rather than fearing those with challenging new ideas, these regions have learned to

collectively support, encourage and provide assistance. They do not relegate this job to a handful of

organizations, but rather trust it is a part of everyone’s role in the community to actively engage in this

process.

How do we arrive at this culture?

Step Two: Make the Commitment to Bringing this Culture to Life in the Corridor

If we want to live in a region recognized internationally as having a culture for innovation and an

entrepreneurial spirit for everyone, we must first commit to making this our goal. It has been said that

you cannot “create” a culture, and with this we agree. A truly genuine culture of this type cannot be

created but it can be envisioned and endeavored with new thinking, new approaches and by utilizing

existing assets in more creative ways.

Moving toward this culture has its own set of challenges. Typically when we desire change, a group of

leaders seeks to enact it into reality. This runs counter to what we envision, because a culture of

innovation cannot be controlled or shaped by a handful of minds. We must resist the urge to overthink

and over plan and instead allow this culture to take shape on its own. This type of culture, like each of

us, works best and produces more when given room to breathe and afforded autonomy.

We can begin by injecting this way of thinking into each of our organizations and businesses. We must

support an environment that gives all our citizens a way to direct their own lives; to learn and create

new products, services, companies, and the like, and to do so in such a way that we better our lives and

those around us. We should not seek to predefine what this culture will look and feel like, but rather let

it take a shape and direction of its own volition. This runs counter to how we have traditionally solved

problems or viewed our roles as Midwesterners in the past, but it is vital to reshaping our culture into

one that can flourish in the unforgiving global economy at hand.

So how will we know when we have gotten there? When people know our story without us having to

tell it. When people, businesses and capital gravitate here autonomously, without extensive outreach

and unsustainable financial incentives. In fact, this new environment will be our strongest incentive.

We will need a new set of metrics to measure our success in the new economy. This too will be an

enjoyable part of the journey in defining who we are and how far we have come; one that will require us

to ask different questions of different people than we have in the past. Again, our basic priorities as

economic development groups are not changing. We are, however, challenging the way in which the

world sees us, such that we are better able to accomplish our missions.

So where do we start at achieving such a seemingly ambiguous and ambitious goal?

Step Three: Start Actively Putting People and Ideas Together

If an innovative culture is a mindset where ideas flow freely between people and organizations and our

goal is to create such an inviting and inclusive region, then we must begin to do just that: bring people

and ideas together. There is already an undercurrent in this market. At times we see it and feel it. We

are not trying to create something out of thin air but instead actively engage in mixing the existing

ingredients in a new and better way.

On January 11, 2011, we will unveil an overarching umbrella brand that will identify events in our region

which capture the essence of this mindset and bring innovative minds together. Many of these will be

tied to larger global initiatives which already have some level of brand recognition we can leverage.

Examples would be Jellys, Start Up Weekends, Ignite Conferences, Tech Brews, Bar Camps and other

similar un‐conferences and events, ultimately leading up to highly visible and internationally renowned

efforts such as TEDx events. As the economic development entities in the region, we can help

coordinate and organize some of these activities, yet as the culture develops, other ideas will emerge

from outside groups. If these concepts hold true to the mission of building this innovative culture, we

can utilize the brand to drive audiences and resources to help make them successful. This is how we

bridge the traditional to the innovative; preserving institutions while still encouraging emergent thought

and solutions until the culture takes hold and self generates.

Another way we can influence the way people engage and interact is to create physical spaces or

encourage development of spaces within the region where innovation can take place. Currently both

ends of the Corridor are exploring how to create knowledge ecosystems. These are not incubators as

we traditionally think of them, but rather physical coworking places where entrepreneurs and

freelancers work next to individuals from existing companies, artists, students, writers and visitors on a

daily basis. Knowledge ecosystems are places defined by their affinity for attracting open minds and

facilitating the ongoing flow of ideas. Similar spaces, including The Hive and New Work City, have

started to take hold throughout the country in the past few years.

To broaden the reach of these events and spaces we will utilize existing social networking platforms to

expand upon the momentum and linkages created. Over time, these events and spaces will prove to

catalyze new company formation, increase the number of workers living in the region working remotely

for outside firms, and develop new markets from this collaborative process. Ultimately this culture will

spread into all businesses, organizations and government entities in the region to help them better

engage and capitalize on new opportunities.

The global economy is changing, but it need not be something to fear. Our region can remain vibrant

and be one of the “winners” if we commit to lead and innovate. We must rethink how we support our

existing companies, grow new firms and increase our attractiveness for recruiting new employers. Our

organizations recognize the incredible potential of what we can become if we embrace this vision and

take these steps. Developing this culture will take time, it will be an ongoing quest requiring hundreds

of engaged Sherpa to guide others. We stand united at the foot of the mountain excited for the journey

ahead and confident that together we will succeed.

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Business Plan for Creating a Knowledge Ecosystem:

A physical space in the market to house the ICAD Group Offices, A Coworking Environment for Nontraditional

Incubation, Meeting and Event space

Exec Summary: The ICAD Group is committed to constantly improving the way in which it assists the economic vitality of the region by supporting interstate commerce. Research has indicated that areas of the country which demonstrate a culture of innovation will be best positioned to thrive in an increasingly competitive global economy. To cultivate this culture, the ICAD Group will work to actively create the spaces and opportunities for a new level of cross disciplinary collaborative engagement. Currently, a calendar of IQ events is being developed to begin mixing people and ideas in this new method. The next step is to create the knowledge ecosystem, the physical embodiment of this new culture; a place where innovation lives on a daily basis to benefit companies existing and emerging, while enticing new firms to locate in the region. This inspiring space will be the home for the ICAD staff, coworking professionals in an open area as well as private rentable offices and play host to a variety of events aimed at building upon this culture of innovation.

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Table of Contents: Rationale for creating the CoLab in the Iowa City Area………………………………………………………………2 CoLab Specifics Location in the market……………………………………………………………………………………………………5 Space size / utilization…………………………………………………………………………………………………….5 Breakdown on division of space……………………………………………………………………………………..6 Events and Programming to take place in CoLab………………………………………………………………………..6 Value Proposition by user group………………………………………………………………………………………………..7 Operations Legal Entity………………………………………………………………………………………………………………..…10 Staffing………..……………………………………………………………………………………………………………….10 Marketing…..……………………………………………………….……………………………………………………….10 Technical Needs……………………………………………………………………………………………………………10 Financial Revenue Sources………………………….………………………………………………………………………………11 Revenue Forecast……………………………..………………………………………………………………………….11 Start Up Costs……………………………………….……………………………………………………………………..11 P&L Scenarios………………………………………….…………………………………………………………………..12 Potential Sources of Funding……………………….……………………………………………………………….12 Year 1‐3 Cash Flow Projections…………………….…..………………………………………....................13 Conclusions………………………………………………………………………………………………………………………………16

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Rationale: Research by the Institute for the Future and The Research Triangle Park (Report SR‐1236) “Future Knowledge Ecosystems: The Next Twenty Years of Technology‐Led Economic Development” discusses how “regional knowledge ecosystems will emerge as a new strategic frame, providing scale, efficiency and global platforms for economic development” (p.22). This paper, a collaboration between academia and economic developers, provides a framework for how successful regions will embrace the need for connections of people and knowledge to create stability, growth and wealth in the new age of global economics. Successful areas will go beyond traditional approaches to economic development and academic research parks to purposefully develop and offer:

“…new kinds of spaces for entrepreneurship and collaborative research…. Rather than warehousing workers, they will meet a need for communal, collaborative meeting space in a world of increased mobility within and between workplaces. They will be neutral places where networks of investors, entrepreneurs, hackers and customers converge for collaborative knowledge creation and trust‐building, cementing relationships initiated and cultivated online. Overlaid grids of social software will enhance serendipitous discovery inside these spaces and knit them together in local, regional and global networks of collaborations” (p.28).

“The collaborative magic of [these spaces] depends heavily upon the ability of managers to ‘produce’ and ‘direct’ the space like a ‘show’ on a daily basis. This involves coordinating events, both formal and informal, ensuring a steady flow of new people and ideas through the space, and making connections between participants. This is a very different set of skills than the typical research park manager or economic developer today. The shift from managing land use and real estate to managing activity (or both) will require a fundamental shift in perspective” (p.29).

In his new book Where Good Ideas Come From: The Natural History of Innovation, Steven Johnson discusses how each great advancement of thought was less a product of unitary inspiration than it was the process of putting “slow hunches” housed in a variety of minds over a period of time together to form a meaningful, whole thought. “For that hunch to blossom into something more substantial, it has to connect with other ideas. The hunch requires an environment where surprising new connections can be forged: the neurons and synapses of the brain itself, and the larger cultural environment that the brain occupies” (p.99).

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Ed Morrison: http://edmorrison.com/the‐regional‐transformation‐toward‐open‐innov

Despite the high number of innovative ideas created in our area, we have not realized the full potential of the talents and opportunities they might create in a more open environment. If our area is to advance to higher horizons there is a definitive need to catalyze connections between ideas, people and companies. This creates the scenario in which individual purpose (profit) is enhanced through a common systems approach to information sharing and problem solving. ICAD can create and foster open innovation and drive these connections by creating the civic space and network platforms of value to emerging and existing local companies. The increased effectiveness of these networks will also provide further incentive for outside companies to relocate to this market. At its full potential, this space becomes the epicenter of innovation where people, creative ideas and capital converge to create long term investment, employment and related benefits to the region. These benefits would be measured by a combination of traditional (capital investment/jobs) metrics and novel benchmarks to understand the impact of the organization and the space. Our initial challenge will be to drive the narrative shifting necessary for the area to embrace the need to move to the next horizon where networks can begin to form via this civic space.

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Accepting this premise, it would logically follow: the better an area is at facilitating connections of minds, the more potential there is for transformative ideas. If we narrow this focus slightly to the specifics of interstate commerce, we can infer: our area will recognize a stronger economy if we can find better ways for those hunches in our region to bump into each other. By promoting new types of events and creating a physical space for this to transpire, we can build this larger cultural environment Johnson writes of, akin to the coffeehouses of the renaissance which are responsible for much of the writing and art we treasure today. Economic Development groups typically assist companies after the complete thought has been formed and market need established. Yet, if we are to be proactive in making this area one in which innovation flourishes, we must as the ICAD Group create the framework environment to encourage and accelerate the serendipity of these connections. Not only will this help us generate new companies, but it will also demonstrate ways to strengthen existing industry and identify and develop cross boundary exploration and partnerships between interstate commerce, the University of Iowa, Kirkwood Community College, K‐12 education, Out of state and foreign companies and more. While we can create such an environment, we acknowledge that we cannot control or limit the possibilities which will certainly arise, yet, by being positioned as an economic development group in the center of this micro universe, we can help forge topophilia, defined as the effective bond between people and place. In this case, we can work to keep talented people and their ideas and companies linked to the area via their affinity for the support and guidance the region and its residents have provided and other markets around the state with this same sense of place will want to connect into this mindset. Coworking as a concept is happening globally, with over 300 identified coworking facilities in the U.S. alone. Open spaces where the creative minds of entrepreneurs, freelancers, designers and the like work together in a shared environment designed specifically with their need to produce, interact, share, network and collaborate in mind. In many cases these are stand‐alone entities created on purpose by entrepreneurs specifically for coworking. Other times it is a company with extra space looking for a way to engage other creative minds and cover overhead costs. While a few of these spaces are being discovered and embraced by the traditional economic development organizations in their communities, we have yet to identify one space that was created by a local economic development group with the specific purpose of strengthening the interstate commerce of the area. By creating this space and utilizing the power of the existing institution and reputation of the ICAD Group to foster this type of economic development method, we can be the pilot study for ED entities across the state and nation. If this model proves successful in improving our ability to create and retain jobs in the region, other areas can surely replicate its processes to improve the overall economic vitality of Iowa.

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Space: Location in the market: The ICAD Group has worked with developers in Iowa City and

Coralville to assess potential locations to house this concept. Much consideration was given to where in the region such an entity should be placed. Ultimately research with other coworking entities led the discussion to focus on the need to be proximate to natural high flow traffic patterns of commerce where the space could have ease of access and high visibility; this led to a narrowing to downtown Iowa City and the 5th Street Coralville area surrounding the new Coralville Performing Arts Center. While other locations in the region may also work to serve the coworking needs of the market, these locations of focus seemed to offer the highest possibilities for success for this new venture. Downtown Iowa City offers the highest visibility and access to a wide variety of professionals, companies and students, while the Coralville location offers a good alternative, easy to access via public transit lines with ample free parking which can be an attractive amenity for many. Size / Utilization: In October 2010, ICAD conducted an international survey with coworking entities via an active Google Group. This research helped the ICAD Group determine the ways in which other spaces were using space to develop successful coworking entities. Further, ICAD Staff travelled to New York, Chicago, Austin, Omaha, Des Moines and Ames to see coworking in action and talk with the individuals responsible for creating and managing these spaces on a daily basis. Additionally, ICAD met with executives with AllSteel, a division of HON, which has been actively studying the new ways in which people work and offices will function in the coming years. ICAD staff has also been comparing research with the Cedar Rapids Chamber as they have been planning the design and build of their Commerce Center with funding support from the EDA. As a result, ICAD staff has worked with the design team at Neumann Monson Architecture to plot out how best each of the potential sites would be laid out to maximize its effectiveness for a variety of constituencies working from the following assumptions:

This space will need to house the ICAD staff offices as a ‘space within a space’ that offers security and privacy for the confidential work of the organization while also allowing the flexibility and ability for ICAD to live this new open concept and work style as well.

Unlike many coworking sites, the explicit purpose of this space is to foster the growth, development and attraction of interstate commerce for our region’s future. Therefore it must appeal to the types of entities we wish to assist through this new approach to economic development and be a centerpiece of productive activity and energy.

Based on research, our area could support in the area of 2,500 sq/ft of open coworking space. This space will require work areas with some variety of work style accommodations. In this case, we envision a workbench area, with a quiet, more library like lounge area and one more stimulating region all designed to spur and foster spontaneous collaboration.

Small, rentable private offices would have appeal to a variety of users who wish to parlay the synergy and collaborative properties of the space, yet wish to have

some dedicated space they can close off for privacy. ICAD has

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talked with a number of European companies interested in locating sales operations in an entity such as we are defining.

Conference and meeting rooms of various sizes, some with video conferencing capacity, are a key part of building this community internally as well as for creating a hub locally for external firms to locate off‐site events which can benefit from this vibrant environment.

As more companies are learning the power of video content to build awareness, share ideas and pass on institutional memory, a video production room will be a key asset in this space for new and existing interstate commerce firms in the region.

The space needs to be flexible and adaptive, with the ability to host a wide variety of events, presentations and meetings as we work more to build an open, collaborative and innovative culture and mindset in the area.

Space Breakdown Assumptions:

Utilizing this configuration, the CoLab space could house: ICAD Staff: 5‐8 people Private office tenants: 2‐12 dependent on the size of the overall space Coworkers: maximum between 29 and 45 on a daily basis (est: 55 sq/ft per person) Conference Room Meetings: up to 40 in traditional board room configuration Events: Space could accommodate between 80‐120 people for a variety of events

IDEAL Approx. Space Opt A

Space

Option B

Meta

ICAD Specific Sq Ft Sq Ft Sq Ft

3 Private offices 600 550 450

Area for staff to back office (storage of belogings, items typically found on/in desk, area to take private calls) 300 250 250

small meeting room exclusively for ICAD use 300 300 250

Storage / supplies / Server 175 175 125

ICAD Space within the space equates to around 1400 sq/ft or 20% of total

Coworking / Shared Use

Kitchenette large enough to be used by caterers for events 100 100 100

Area for Printer / copier, mailboxes, paper 80 80 80

4 'phone booths' (small private areas for people to take phone calls) approx 4'X4' 60 50 50

Small conference room 300 275 275

1200 500 1000

Rentable Private Offices 800 600 400

Open Coworking Space ‐daily use by coworkers, open enough to be used for events 2500 2176 1475

Reception / Concierge Area

Open style coffee shop like seating, possibly one long table as primary feature

Lounge Areas ‐ ideally 2, one quiet and library like with one more stimulating with video

screens / noise

Hacker bar ‐ shelf along wall for 3‐5 people to do heads down work on laptop

Video Production Studio 150 100

Storage / Lockers for coworkers belongings 100 100 100

Coworking / Shared Spaces / Private Offices approx 5300 sq/ft or 80% of total

Total Approx Square Footage (externalizing restrooms) 6665 5256 4555

Large Conference Room w/ video conferences (suitable for ICAD board mtgs) potentially with wall divider to

open into coworking space flow

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Events / Programming: To achieve our long term overall goal of this area being recognized internationally as a hub for innovation, entrepreneurial thinking and collaboration this new space becomes a critical driver for advancing the types of action and mindset required. With the design flexibility of this concept, we envision the CoLab becoming the natural host of a significant number of events throughout the year. It will be dependent upon ICAD to produce and host many of these events, yet, if done correctly many will arise organically and be administered by other formal and ad hoc groups and held in the CoLab. The common thread will be the advancement of ideas and concepts which can better the area’s overall ability to foster interstate commerce. There are a number of event platforms which already have national recognition which would fit within the mission of this space and of which ICAD plans to encourage or host. Examples would be:

Jelly’s – Coworking events for non‐members to experience the culture and space for a day or evening.

Ignite – these events use a vibrant format to allow individuals the opportunity to present 20 slides for 20 seconds each on a topic of their passion.

Tech Brews with the Technology Association of Iowa, are happy hour type events where people can learn and share about IT, software and related concepts in a casual manner.

BarCamp defined in their rules for: No Spectators, Only Participants, Attendees must give a demo, a session, or help with one, or otherwise volunteer / contribute in some way to support the event. All presentations are scheduled the day they happen

Fishbowls another type of “Unconference” where the lines between audience and speaker change determined by the seating arrangement

Startup Weekend, defined on their webpage as: 54‐hour events where developers, coders, designers, marketers, product managers and startup enthusiasts come together to share ideas, form teams, build products, and create startups

This is but a short list of potential activities which would be produced and encouraged in the CoLab. It is in the production of such events where the unique possibilities for creating such a purposeful location are realized, not to mention more traditional events such as: Roundtables (manufacturing, simulation / animation, green tech, bio tech, etc.), presentations (variety of business topic based, angel / venture capital),ICAD Board and committee meetings, Networking lunches, cocktail hours, tweet ups, speed networking and various social events throughout the year In the past, Economic Development groups have spoken about the vibrancy of their communities, this would be a way for us to not only enhance the true collaborative energy of the Iowa City Area, but also to provide a showpiece for outside individuals and entities as an attractor to our market. Again, the daily function of the ICAD Group to retain, attract and grow interstate commerce companies in the market will not change, yet the tools and abilities by which this takes place

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will set us apart from all other regions of the state and Midwest to allow us to better compete on a global scale. Value proposition (by user group)

ICAD Group – creating this space and immersing the daily efforts of the ICAD staff in this collaborative environment is the best way for us to live the culture we are trying to create. As this space becomes the epicenter for knowledge sharing across a broad spectrum of minds engaged in attracting revenue to the area through interstate commerce, ICAD will be ideally positioned to connect people and ideas to accelerate serendipity to further advance interstate commerce. Locating in the CoLab allows ICAD to actively mix different and traditionally disparate entities in novel ways such that each can derive sustainable mutual benefit. Operating this space as a showpiece in the region will further define the organization and leading edge amongst its peers, as well as providing broader public recognition of its work to the community at large as to the value ICAD creates in the market. Thus, ICAD will be able to assist more companies and realize increased investment from this heightened exposure. Additionally, by developing a proper pass thru legal entity, this space has the potential to diversify ICAD’s revenue stream and augment traditional investment based support to create greater long‐term financial stability for the organization.

ICAD Investors – Those entities which support the work of ICAD will see an increased return on investment in a variety of ways. Local governments will realize increased revenues as more companies emerge from this space and grow into new and existing commercial properties. Thusly, property owners, developers, construction firms and financial institutions will see direct results as this space, and the greater culture it fosters, leads to more companies needing additional space in the area to support their growth. The indirect benefits from this enhanced economic development will spur increased revenues for a wide variety of area merchants as more minds are retained and attracted to the area to take part in this culture of innovation.

CoWorkers – This subset of CoLab utilizers runs the gamut from entrepreneurs who need a professional environment to plan and grow, teleworkers from companies around the globe, who choose to live in our area yet who have no daily locale to operate, save their home office or coffee shops, freelancers who also desire a dedicated, affordable space in the market they can interact and compete for work, as well as professionals from a variety of local firms who may seek a more collaborative culture than may be the norm at their place of work. As well, from our research, often times, coworking locations can be the meeting place of ad hoc groups working on side projects and plans that will become the next innovation or company. These professionals may have traditional “day jobs” but the space becomes a place for them to collaborate on an idea in line with their passions. Each of these will benefit from having a place they can be a part of which caters to their needs as professionals and offers the right amenities, climate and exposure to advance their companies and careers. The CoLab can also be the home to traveling professionals who can carry the message back into the world about how connected and vibrant or market is.

Existing Local Industry – In addition to benefitting from the programming and events and the knowledge sharing they entail, local companies can become stronger through the

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existence of this space in several tangible ways: First, having a centralized locale in the region for innovation, companies will find it dramatically easier to create novel partnerships, identify new clients, employees and service providers while also having an ongoing forum for ad hoc problem solving. Secondly, the CoLab becomes the model for how the workplace is changing and the growing way in which company culture contributes to its ability to continue innovating, finding and keeping the best talent and staying in front of market changes. Companies can ‘borrow’ this culture by allowing employees to cowork at the facility, holding offsite planning meetings and retreats, utilizing the production studio, video conferencing capabilities and holding events in the space.

Attractiveness for expansion opportunities – while traditional costs (land, buildings, taxes, labor and incentive offsets) will remain the predominant driving factor for most companies conducting site location searches, there is increasing evidence to suggest more firms are also vying for regions which offer connections to University research, transferrable skill sets in the labor force and unique quality of life attributes which enhance their ability to retain and recruit employees. Creating this knowledge ecosystem in the region is a way to convey the value proposition and uniqueness of our market to visiting prospects; a way to differentiate ourselves from the other cities in consideration. Further, this space creates a low risk point of entry in to the U.S. market for many foreign firms. Entities such as the Renewable Energy Network of England have already expressed their desire to help EU companies establish small sales and engineering presences in a space like this in our market as a first step towards the ultimate goal of full manufacturing operations. If we can host and support these firms in the CoLab, we stand a greater chance for attracting capital investment and job creation.

Education – one of our regional challenges continues to be alignment between commerce and education. Having one functional hub of this magnitude in our market offers a center entry point for interstate commerce to engage with our educational institutions and vice versa. This will help align education and skills with tomorrow’s jobs and work to slow the “Brain Drain” which has plagued the Midwest for nearly a generation.

Region as a whole‐ Overall, having this space in the area, and hopefully similar sites across the region will help connect people into deeper relationships and advance serendipity, the flow of capitilizable ideas which will strengthen our economy over time. This entity can demonstrate collaboration and become a source of community pride to attract the minds, capital and companies we seek for years to come. The way in which people work in our country is changing; this is our way to be proactive to this change, such that we can be competitive in the global economy.

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Operations: Legal Structure: ICAD will create a new legal entity for this space separate from the existing 501(c)6. This subsidiary could be a good fit for the Low Profit, Limited Liability designation (L3C) being considered by the Iowa Legislature for entities which seek outside investment for social good but are not limited by the constructs of traditional non‐profits, such as having a separate board of directors, etc. The ICAD Group would pay rent to this subsidiary reflective of the portion of the space utilized for its dedicated use. This legal entity could then either sign a lease or obtain a mortgage to purchase property for this usage. Staffing: Year one, the space will require one dedicated staff person to serve as the concierge / coworking manager. To access the economies of scale for benefits and administration it is likely this person will be an ICAD Group employee. This person will be responsible for managing the day to day activities of the space such as: checking members in, scheduling conference rooms, giving tours, basic housekeeping / organization to maintain optimal conditions and event coordination. Existing ICAD Group staff will assist in the production and promotion of events, meetings, video production studio usage and facilitating collaborations between members. See Appendix A Marketing: The IQ CoLab marketing will be part of a larger IQ marketing initiative and will utilize its sub brand for signage and logo purposes. Ideally there will be more than one CoLab under unified brand name within the broader region all linked to one main web presence along with the IQ events calendar and Sherpa membership portal. Technology Needs: ICAD has begun discussions with Cramer IT and Keystone IT to learn how best to manage the various data and telecom needs of the space and its users. Significant wireless internet bandwidth will be required, networked printing, video conferencing, VOIP options and ICAD specific IT needs must be addressed cohesively for the CoLab to function properly. For the CoLab spaces in the region to integrate as part of this larger IQ initiative of next level economic development, it will be vital to construct a social networking linkage platform such that individuals in the area can identify and connect based on interest categories and collaboration possibilities. ICAD is working with Letter B in North Liberty to determine if an application engine they have created could be the backbone of this linkage system.

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Financials: Sources of Revenue: To support the ongoing, operational costs associated for the CoLab, this new entity will derive monthly income from the following sources: ICAD Group Rent: $2,000 month Coworking Memberships: $15 a daily drop in rate $100 10 day punch card membership $200 Unlimited access coworking membership $300 Unlimited access semi private space (cubicle) membership $500 Private Office Rental Event Rentals: $50‐500 depending on size / length of event Revenue Forecast:

Months 1-15 Months 16-36 Price Units/Month Revenue Units/Month Revenue Drop ins $15 15 $225 20 $300 10 day punch card $100 15 $1,500 20 $2,000 Monlthy Membership $200 10 $2,000 25 $5,000

Semi Private $300 3 $900 5 $1,500 Private Office Rental $500 2 $1,000 3 $1,500

Event Rentals $300 3 $900 3 $900 ICAD Group Rent $2,000 1 $2,000 1 $2,000 Total Monthly Revenue $8,300 $13,200

Start Up Costs:

Buildout TBD Furniture TBD Signage TBD AV / Computers/ Printer $22,500 Fixtures $3,500 Kitchen Appliances $4,000 Supplies $2,000 Production Studio $20,000 Misc $5,000 Legal $7500 Total Estimated: $

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Financial Projections: Assumptions:

Start Up Costs not included in model

1 FTE at $25,000 year one Scenario 1: Projections for fully subsidized space: $0/month rent or mortgage

Year 1 Year 2 Year 3 Year 4 Year 5Yearly Profit/(Loss) $6,932 $63,824 $74,256 $70,520 $70,520 Scenario 2: Projections for Space at $5,000/ month rent or mortgage

Year 1 Year 2 Year 3 Year 4 Year 5Yearly Profit/(Loss) -$38,068 $3,824 $14,256 $10,520 $10,520 Scenario 3: Projections for Space at $10,000 / month rent or mortgage

Year 1 Year 2 Year 3 Year 4 Year 5Yearly Profit/(Loss) -$83,068 -$56,176 -$45,477 -$49,480 -$49,480 Scenario 4: Projections for space at $13,000/ month rent or mortgage

Year 1 Year 2 Year 3 Year 4 Year 5

Yearly Profit/(Loss) ‐$110,668 ‐$92,176 ‐$81,744 ‐$85,480 ‐$85,480

Options: Seek public / corporate support to subsidize rent or purchase space to rent at marginal level. Identify Federal Support such as EDA funding to offset annual operating losses. Mortgage the space using a combination of MDA Bonds with New Market Tax Credits Scale back plans to smaller space and operation without a new employee. Identify space in less ideal location which might be more affordable. Potential Sources of Funding:

Public: City of Iowa City / Coralville Iowa Department of Economic Development New Market Tax Credits Federal Economic Development Administration Private: Corporate Sponsorships

Three Year Cash Flow Projections

Assumptions: $10,000 month rent / mortgage (w tax) payment No Outside Financial Support shown in this model Start‐Up Costs not reflected as ongoing debt

Month 1 2 3 4 5 6 7 8 9 10 11 12Monthly Income $1,660 $2,490 $4,150 $5,810 $6,640 $7,470 $8,300 $8,300 $8,300 $8,300 $8,300 $8,300

Total Monthly Costs $6,148 $6,148 $6,248 $16,248 $16,248 $16,248 $16,248 $16,248 $16,348 $16,348 $16,348 $16,748sub total $1,240 $1,240 $1,340 $11,340 $11,340 $11,340 $11,340 $11,340 $11,340 $11,340 $11,340 $11,340Rent / Mortgage $0 $0 $0 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Internet ICAD $140 $140 $140 $140 $140 $140 $140 $140 $140 $140 $140 $140Electric / Gas $300 $300 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500Phone $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300Parking $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450

Cowork specific $4,908 $4,908 $4,908 $4,908 $4,908 $4,908 $4,908 $4,908 $5,008 $5,008 $5,008 $5,408Internet (T1 bandwid $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150Coffee/Tea/Cups $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200Food $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600Copier Lease $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200Promotion $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Maintenance / Clean $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400Cleaning Supplies $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Supplies $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100Event Costs $150 $150 $150 $150 $150 $150 $150 $150 $250 $250 $250 $250Accounting $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $500

Misc / Unplanned $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200$2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708

Monthly P/L -$4,488 -$3,658 -$2,098 -$10,438 -$9,608 -$8,778 -$7,948 -$7,948 -$8,048 -$8,048 -$8,048 -$8,448Year 1 Annual Profit / Loss ‐$83,068

Personnel w/ benefits

Month 13 14 15 16 17 18 19 20 21 22 23 24$8,300 $8,300 $8,300 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200

Total Monthly Costs $16,348 $16,348 $16,648 $16,648 $16,648 $16,648 $16,698 $16,698 $16,698 $16,698 $16,698 $17,098sub total $11,340 $11,340 $11,640 $11,640 $11,640 $11,640 $11,640 $11,640 $11,640 $11,640 $11,640 $11,640Rent / Mortgag $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000


Cowork specific $5,008 $5,008 $5,008 $5,008 $5,008 $5,008 $5,058 $5,058 $5,058 $5,058 $5,058 $5,458Internet (T1 ba $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150Coffee/Tea/Cu $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200Food $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600Copier Lease $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200Promotion $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Maintenance / $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400Cleaning Supp $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Supplies $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100Event Costs $250 $250 $250 $250 $250 $250 $300 $300 $300 $300 $300 $300Accounting $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $500

Misc / Unplann $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200$2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708



Monthly Income

Month 25 26 27 28 29 30 31 32 33 34 35 36$13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200 $13,200

Total Monthly Costs $16,698 $16,698 $16,698 $16,698 $16,898 $16,898 $16,998 $16,998 $17,290 $17,290 $17,290 $17,690sub total $11,640 $11,640 $11,640 $11,640 $11,740 $11,740 $11,840 $11,840 $11,840 $11,840 $11,840 $11,840Rent / Mortgag $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000


Cowork specific $5,058 $5,058 $5,058 $5,058 $5,158 $5,158 $5,158 $5,158 $5,450 $5,450 $5,450 $5,850Internet (T1 ba $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150Coffee/Tea/Cu $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200Food $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600Copier Lease $200 $200 $200 $200 $300 $300 $300 $300 $300 $300 $300 $300Promotion $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Maintenance / $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400Cleaning Supp $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50Supplies $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100Event Costs $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300Accounting $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $500

Misc / Unplann $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200$2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $2,708 $3,000 $3,000 $3,000 $3,000


Monthly Income


Page 16

Conclusions Without deviating from its core functions, ICAD Group should move beyond traditional approaches to economic development and begin to drive the type of culture necessary to achieve innovation commercialization. By creating a space such as this and building the physical and virtual networks that will allow the sharing of "sticky" knowledge, the area can begin to develop clusters of technology which will lead to new capital investment and job creation. Further, it will aid in the recruitment of new firms eager to join the vibrancy of the region and can assist our existing companies in remaining relevant and prosperous. This collaborative spirit, put into practice, will become the brand identity which the authors of Future Knowledge Ecosystems paper find to be “crucially important in attracting globally mobile talent and earning reputation in new group economies" (p.40). Or more aptly stated by Jacob Lerner, the Jacob H. Schiff Professor of Investment Banking at Harvard Business School states, “entrepreneurial activity does not exist in a vacuum: building an environment where new ventures can thrive is a critical first step.” With this concept proposal, the ICAD Group is offering a means to taking this first step. Our challenges will be to determine new metrics and means by which this space produces a direct return on investment to the region in the form of new jobs, new companies and how we calculate its effect on existing companies. The enclosed cash flow projections utilize a fairly conservative revenue assumption model. If the space can realize its full potential of approximately 50 monthly memberships, it becomes profitable even with a much higher operating cost. It does not seem likely that without significant public / corporate support the CoLab will break even at market lease rates in downtown Iowa City or Coralville. The ICAD Group will assess all scale and options to determine the most viable means for sustaining this next level economic development effort.

Project Update Jan 14, 2011

ICAD Group Board of Directors Projects Actively Worked Oct-Jan NIS – Assembler for whirlpool leased the former N.L. Plastics building and has begun moving

production into this facility from operations in Davenport and an existing N.L. facility.

Local Firm Modernization / Right Sizing – ICAD has had several meetings with a local firm looking at scenarios to meet future space needs as they evaluate modernizing or new construction. Currently down to 3 options they are talking to parent company for selection. We are visiting with parent company to continue dialogue on how we can assist. ICAD visited with corporate site selection team in New York in October and continues to be in direct communications with company leaders.

Financial Services Firm – growing local firm exploring growth from 60 employees to 300 over the next three years. Company working to finalize purchase of building in market to accommodate anticipated growth.

Wind Energy Foundry – ICAD hosted a second visit from a US firm partnering with a Spanish

Foundry about locating their wind energy casting and machining operations in the Wind Energy Supply Chain Campus. Company is down to 4 finalist sites and indicating we are top preference at this stage.

Zero Energy Walls – Local entrepreneur extended $7.75M in Midwest Disaster Recovery Bonds.

Working with local banks and investors to finalize financing. Local Biomedical Mfg. – Expanding manufacturing at current site while working to build a new

office building to house administrative, sales and management operations in Coralville. Local Biotech Company – Expanding in multiple areas, warehousing, office, research over the

next 12 months. Existing Software Firm – Anticipates Jan loan closing on expansion capital to add new positions

and transition ownership. Local Consumer Goods Producer – Identifying site options around North Liberty to expand local

footprint.

20Packet%20for%201-14-11%20meeting

Documents

icad board of directors

board packet

minute board meeting

board members service

consent agenda board

brown deer board meeting

icad group memo

economic development