Item 28.1 on the Tuesday, June 28, 2016 city council agenda is another example of a failing project.
In August of 2011 city council awarded a four year grant to The Hub of Innovation. The backup material contained this statement: “This item is to approve funding for programs that encourage entrepreneurship, innovation and technology in order to create higher paying jobs within the city.”
Job creation was an important part of the $4 million grant and the grant required the organization to come before council and demonstrate achievement of certain goals:
They were required to facilitate the creation of at least 224 full time jobs in the first four years. That averages out to about 55 new jobs per year.
Then in August of 2015 city council approved a four year extension of the grant lowering the city’s contribution to $250,000 per year.
Few new jobs
The Hub’s first presentation to council under the extended contract has this slide:
It shows that they have only created 4.4 jobs out of the 12.5 that we should have seen in the first half of their year.
Their proposed solution is to change the requirements removing the hiring goals completely and replacing them with the requirement that they make more presentations as per the chart below:
We deserve better