PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Approval of a resolution of the City Council of City of New Braunfels, approving a recommendation of the New Braunfels Economic Development Corporation to renew a contract with the Spark Small Business Center (SPARK) for a grant in an amount not to exceed $210,000 to operate the SPARK Small Business Center; and declaring an effective date.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Spark Small Business Center (“SPARK”) is a volunteer organization that works to support and further develop the entrepreneurial and small business environment of New Braunfels. SPARK primarily focuses on counseling sessions, expanding access to capital, contracting and procurement opportunities and exporting initiatives. In 2011, SPARK (then named the Center for Entrepreneurship) joined with the Small Business Development Center (SBDC) of University of Texas at San Antonio’s Institute for Economic Development to establish the Small Business Development satellite center in New Braunfels. The satellite center is staffed by a manager and administrative assistant and offers integrated services to meet the needs of experienced small business owners as well as individuals interested in starting a business.
This expenditure will allow the Spark Small Business Center (SBC) to finance and operate the Small Business Development Center (SBDC) in New Braunfels through the end of fiscal year 2023. Since approximately 2011, SBC, formally known as the Center for Entrepreneurship, has focused on delivering counseling sessions, expanding access to capital, business planning, training, contracting and procurement opportunities, and exporting initiatives relevant and helpful to the small business community.
The satellite center is staffed by a manager and administrative assistant and offers integrated services to meet the needs of experienced small business owners as well as individuals interested in starting a business. At the last presentation in May 2022, the NBEDC board provided consensus around including the following performance measures, which are included in the service contract as part of SPARK’s quarterly reporting:
• Number of business plans created
• New business starts
• Number of jobs created
• Number of jobs retained
• Amount of financing closed
The Center has continued to build on business partnerships and expand awareness of the services through targeted in-person and virtual events to include webinars and round table mentor sessions.
In its contract with the SBDC, SBC is responsible for financing SBDC’s costs, as well as the direct and indirect costs of running the center on West San Antonio Street. In total, this has cost approximately $172,000 for SBDC’s costs and another $60,000 in rent, utilities, and other expenses for a total annual budget of approximately $232,000.
ISSUE:
The project expenditure would fund the SBDC through the end of fiscal year 2023 (September 30, 2023).
FISCAL IMPACT:
The proposed project expenditure is $210,000, which the EDC has adequate funds for. SPARK has adequate reserves to fund the estimated total cost of $232,000 for FY 2023.
Recommendation
RECOMMENDATION:
The New Braunfels Economic Development Corporation Board met on August 18, 2022 and voted to approve the request.
Staff recommends approval of the project expenditure.