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2017-022 Denton Technology CouncilDate: April 21, 2017 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Update on the proposed Denton Technology Council Report No. 2017-022 EXECUTIVE SUMMARY: Councilmembers requested an update on the Denton Technology Council proposed by the 2016 Leadership Denton class. At this time, staff does not recommend official City involvement in the establishment of a Technology Council. However, as Denton's technology community has continued to grow, there are ample opportunities to achieve the desired objectives through alternative means. This report will explain the history of various technology initiatives and plans for future growth. BACKGROUND: Denton's technology scene has developed organically over time, driven in large part by the young talent inherent to a university town along with the city's creative, entrepreneurial, and individualistic culture. Many Denton entrepreneurs have dedicated themselves to starting up and growing in this environment — bootstrapping their businesses through hard work and help from others in the tech community and without outside investor funding. Beginning in the early 2010s, elected leaders and City staff began to contemplate Denton's grassroots tech scene as the foundation for a new strategic focus in building the community's economic future by intentionally fostering a sustainable environment for tech and tech -enabled businesses. In the FY 2014-15 budget, Council invested in this concept with the funding of an initiative to help support and grow Denton's tech sector through more programming and events, the creation of a coworking space, and increased connectivity in the downtown core. The initiative was collectively known as CoDenton, and local leaders from tech, business, government, education, and nonprofits began working together to bring those ideas into reality. The 2015/2016 Leadership Denton class project involved assessing the state of the city's technology community and suggesting ways to grow it. The class reviewed existing tech efforts and assets and interviewed stakeholders such as tech and non -tech business owners, representatives of the education field, and governmental entities. Class members drew two major conclusions from its research: 1) stakeholders have different definitions of and perspectives on tech and the tech community, 2) Denton has a wealth of tech initiatives already in place along with a deep pool of tech talent at its universities. At the conclusion of its class year in April 2016, the class recommended the creation of a Denton Technology Council that would work to increase access to technology-based education, create a plan to provide economic incentives for both current and new tech businesses, devise a technology branding plan, increase capital for tech businesses, and advocate for improved technology infrastructure. While the class recommended the creation of the Denton Technology Council, it acknowledged that it did not have the answers as to structure, funding, membership, or administration of the Council and urged stakeholders to band together to determine the details. DISCUSSION: On August 1, 2016, Stoke Denton, a City -supported entrepreneur center focused on fostering and growing tech and tech -enabled businesses, opened its doors. Built around the concepts of community, education, and mentorship, Stoke is naturally growing into Denton's hub for the tech community. It serves as a Date: April 21, 2017 Report No. 2017-022 connection point not only for its members, but for mentors, service providers, and citizens who attend open education and community events. Some of the stakeholders actively involved in Stoke Denton: • TechMill, a nonprofit designed to support and grow the tech community via education and networking • UNT via the Office of Research and Innovation • TWU via the Center for Women in Business • OpenDenton, a community -driven open data initiative to help increase access and encourage the use of public data in the city • Tech companies in the startup, growth and establishment, and expansion phases • Mentors with experience in venture capital and funding, business formation and planning, marketing, and other skills needed by entrepreneurs • City of Denton via Economic Development and Tech Services • Denton Chamber of Commerce via collaboration between Stoke and Chamber staff on education and membership opportunities City Economic Development staff is creating a new departmental strategic plan, in which tech will remain a key focus. Some recent tech -focused activities include: • Benchmarking surveys of Stoke members in March 2017 and Denton's larger tech sector in April 2017 • Recruitment of a new tech startup to relocate to Denton from another North Texas city; startup is considering Denton due to its desirable tech workforce, culture, and the option of locating in The Railyard next door to Stoke CONCLUSION: The timing of Leadership Denton's class proposal for a Denton Technology Council came shortly before the opening of Stoke Denton, which over the past nine months has brought together many stakeholders in the tech community and provided organic opportunities for collaboration and growth, including: increased access to tech education through Stoke's programming with TechMill, Women Who Code, and others; and increased access to capital through mentors with connections to venture capital, funders, lenders, and grant makers. Given that Stoke Denton has naturally developed into a place where Denton's tech stakeholders come together to collaborate, learn, and grow, staff does not recommend official City involvement in the establishment of a Technology Council at this time. Staff will continue conversations with members of the 2016 Leadership Denton class, and as the tech sector evolves in Denton, will evaluate options and adjust accordingly. STAFF CONTACT: Caroline Booth 940-349-7751 Caro line. Booth(c ).6tyofdcnton.com EXHIBITS: Exhibit 1: Denton Technology Council Report Technology Council 000000 0 � 4. The Denton Technology Council: the story of how we (the Ofy of Denton) can make Denton "The Most Connected City. in North Texas". A group of 18 leaders with diverse backgrounds from within the Denton community came together and began to assess the state of tech within Denton. Based upon the research and meaningful conversations with various stakeholders the Leadership Denton Class realized that there was not one simple solution. When looking at the other communities that are doing tech well and thriving there was one significant thing in common: they all have a technology council. The solution to creating a plan to build the tech community in Denton can be accomplished by creating the Denton Technology Council. This will require all stakeholders coming together to work towards common initiatives, starting with the quick wins. We are all on different tracks focusing on different initiatives in the tech sector, The Denton Technology Council will be a steppmg stone to align and get on one unified track as a city. Establishing the Denton Technology Council will formalize Denton's investment in attracting tech and it's a beacon to the greater tech communitg that Denton is serious about being innovative and forward thinking. More information on the council, initiatives and the quick wins can be reviewed in the sections following. 11',I, -F Fl, We (the City of Denton) have significant and exciting tech initiatives already happening in Denton. One of the challenges the Leadership Denton class of 2016 uncovered is that we're all on different tracks - a "switchyard." This informal whitepoper will walk you through how we can get out of the switchyard and as a city align onto one unified track. Meet the Leadership Denton Class of 2016 and check out the intro video here. You can also visit dent on.techpplo-gLU to get involved and plugin with the Denton Technology Council. The Proaressive Policu Institute identified Denton as #6 in the to - P 25 leadln,q locations for high-tech jobs in the US. This already begins to tell the story of how Denton is a force to be reckoned with when if comes to our established community,, simultaneously, it highlights that we have room for improvement. As a team, Leadership Denton began to assess the state of the tech community in Denton. The Leadership Denton project asked the group to determine how we can attract and retain talent, build infrastructure and grow upon what Denton already has? Ultimately answering the question: "How do we build the tech community in Denton?" T.- �,/',2016 When Leadership Denton started talking about what tech means it became apparent that each individual had a vastly different understanding of "tech." Initial conversaflons were narrow in scope and focused on "internet and connectivity`` but quickly determined that tech and tech community are much bigger. The Leadership Denton class determined that the best way to gather this information was to get out into the community and have meaningful conversations with various stakeholders. They talked to the City of Denton, Higher Ed, business owners - both in and outside the tech sector. Conversations were had with fellow residents, associations and organizations. They talked to reglona leaders who champion tech in their communities and individuals who work in and are truly vested in the success of the tech :nclustrg. They talked to startups and reached out to CIOs of major companies. polr)ts- 1. First, Denton is a gold mine for the tech savvy. We have amazing tech initiatives already occurring within the city and we have a pool of talent at each of our 3 universities. 2. Second, similar to our group conversations, we realized that tech and tech community have a different definition to every stakeholder within the city - and we're all or different tracks. . ... . .. ... These are examples of "the goldmine" that alread_q exists when it comes to technologg in Denton. * Programming classes at The Forge • Rciiluard is the new mixed use development across the street but the secret sauce is the tech entrepreneurial flair. Roilyard represents the power of a partnership between the City of Denton, Developers, Business Owners and corporations. If you remember nothing else about it remember this: collaboration space, job creation and if has really fast internet! * Stoke Coworking Space * TechMill Tech Education Training Bloomberg recognized Denton to be one of the few cities to participate in their "What Works Cities Initiative". Denton wil receive support from the organizations across the country that have been endowed with over $42 million dollars available from this program. This initiative will make public data more useable for the city and its residents. These are a few examples of what makes Denton great - partnerships that are consistently working to build and grow our city I E Here are a few highlights as to why tech and technology based community and businesses are keg to the future of Denton's growth and overall economic development, a All professions require technically competent workers. Mechanics, nurses, educators and all future job seekers will need a strong tech foundation in order to compete. Tech pays more. In fact, lifetime earnings for tech jobs are proven to exceed all other professions including legal and medical. Tech jobs are greener. They require small building footprints and Iittle environmental demands. • Tech is education -based. Realistically, tech requires education and little else. Denton has one of the highest densities of educated citizens compared to any community in Texas. In fact, there are over 50,000 students being educated todog in Denton according to Denton Economic Develooment Partnershic) facts. But most importantly, tech is hiring now! Bg 2024 there will be one million tech jobs that will not have qualified applicants, jobs that lack a properly trained and educated workforce to fill. If we can capture even a half of a percent of these one million jobs it we could net an additional 5,000 new jobs to Denton. The schools can't accomplish this goal alone . The community has to help, which leads us to: Why Denton? . . . . . .. .... . People used to move to where the jobs were located. Now, companies want to locate where the talent is and a talented workforce wants to live where they can mingle with other creative types. There's no denging that Denton is a hub for the music and entertainment culture. This culture fosters a creative lifestgle while still enjoging a lower cost of living. We have a vibrant commucLIW centered around our downtown area, we were voted the Most Livable C "t in Texas the past two gears and one of the top 25 fastest growuna American, Cities. Our vibrant city is attractive to the tech sector! I 1-1-1 'No/ E B L...... D 11� The task assigned to Leadership Denton Class of 2016 for developing a plan to build the tech community may sound simple, but it truly is one of the most complex and complicated questions being posed within the city today. It you're looking for a simple solution you're not going to, walk away with that. Instead, we (Leadership Denton 2016) want to challenge you. Think about where you'll be able to serve and how you can get on board to be an advocate for the tech community in Denton. E �Nl: ' � . How many hear the word "tech" and immediately get a little uncomfortable because you don't consider yourself the most tech savvy`? You're in good company because for the majority of the Leadership Denton group felt the same way when these questions were posed. So, in order to simplify things, the Leadership Denton group came up with the analogy of a train and train track. Imagine walking into a bustling train station. People traveling place to place. Trains coming and going. Tracks crossing, and intersecting in a dizzying array. But in the chaos there is order, the trains travel a path to get places further, faster and with greater ease. That's the vision for Denton tech - we want to go further and faster with ease. Today we (City of Denton) sit in a switchyard with all these tracks going different directions. While movement does occur, it's chaotic. What could happen if we get out of the swifchgard and move onto a single unJied track that helps move the city move along with ease, allowing the Denton community to maximize resources. The task assigned to Leadership Denton was to build a plan to grow the tech community in Denton. The scluflon: A technology council. A unified track, . .. ... . .... . ..... I'���11, L-11 Today, the Leadership Denton Class of 2016 is advocating for the creation of a partnership between key stakeholders in the community to create the Denton Technology Council. This counci can be the means for driving this train forward, Leadership Denton has looked at keg players in the tech community - cities who, like Denton, understand that the tech sector is growing and vital to their community's future and economic development. The cities that are leaders in building tech community - the cities that are doing this right- Chattanooga, Austin, San Antonio, Baltimore, Boulder, even Dallas - all advocate for and maintain strong tech alliances which are strategic partners in enhancing tech and tech community. No journey would be complete with a clear path. This is the unified track that the council, it's leaders and members of the community will get on - ultimately making Denton "The Most Connected City in North Texas," ln�tlafives of -11,-)e Der"ifori Technology C 0 u I-) C I � We are getting on one track with one final destination and here is how the city of Denton is going to do it. We have several stops along the wog or initiatives that the Denton Technology Council will work to accomplish: �ricrease A(: -,cess to -rec�,)noWiogy Based Previous sections above mentioned that tech is education based. The City of Denton must increase access to technology based education. The city of Denton has a variety of educational programing already being offered at the Forge, UNT, TWU, NCTC, Denton ISD and organizations such as TechMill. But as a city we need to understand the commonalities in the curriculum. We need to work to increase the number of tech ed hours, diversify our programming and not duplicate efforts. Here's how we can improve and increase access to tech education: • The Denton Technology Council and education stakeholders will have a tech educator meet up to start a conversation about how they can leverage each other's resources, • The Denton Tech Council will work to double the hours of available tech education by the end of 2017. The first step: identifying new community locations to host programs. Think about this: TechMill annually provides an estimated 200 hours of open education. If the Denton Technology Council were able to partner with Techmill and double their amount of educational offerings this one organization could provide 10 full time work weeks worth of open education in Denton. • Do you remember the million computer science jobs that won't have qualified applicants in 2024? These tech education programs are a platform to help capture those unfilled jobs and bring them to Denton. • Finally, The Denton Tech Council will work with these institutions and local businesses to increase the number of tech internships available by 10x in the next five years. Education leads to jobs! Focusing on the tech education sector is one way to attract new tech biz. We (City of Denton) have got the talent! Qi�uc e nt I v i z e It isn't enough to just build our human capital, so the next stop is s about incentives. The Denton Tech Council will meet with the Economic Development Partnership in the next six months to structure economic incentives for technology companies. The Denton Tech Council can create a plan to provide incentives for both current and new businesses. How valuable would if be to have a plan that rewards Denton businesses that hire graduates from UNT, TWU, and NCTC? The Tech Council will be looking for ways to reward innovative businesses. "I e c [-� in o II o c�, g B a n d i i, q P When Leadership Denton was looking at technology councils around the country we noticed that each one told the story of what made their city unique. That's our next stop on the track. Denton needs to brand ourselves in the tech sector. Let's understand what Denton is great at and build upon that.. A good branding plan takes a look at what you're already known for and fills the gaps to get you where you want to go. Here are five areas Denton already has the potential to build Its brand upon: Bootstrapping, Events, Data Centers, Tech/lnfo, Jobs and Edu Tech. • Our bootstrapping startup scene: Denton is known for this mentality and has the resources from our local universities and organizations. • So, why are startups important? Economists have estimated that every high-tech job creates an additional five spinoff cobs. • In addition, studies have found that 90% of startups stay in the city in which they were formed. This focus type of focus grow tech businesses in Denton. • Denton is already known for events. Let's add tech segments to every Denton event. Highlighting to visitors that Denton is synonymous with and understands tech culture. We are already known as an event hub. Let's be known as a tech event hub. • Denton was ranked in the top 10 best cities for data centers. Data centers are the foundation of the internet. Let's reach out to businesses in this sector. • Let's focus on the type of tech jobs we're already known for. We were named the #6 dtu when it comes to tech/info jobs. Let's build on these type of jobs through our partnerships and education. • The City of Denton, is known for education. Let's be known for Edu-Tech. Let's find ways to use technology in order to improve education! The Denton Technology Council will focus on business and education programs around the City of Denton's defined tech brand. I� n e., i" e a s e C a p i t a Il We (City of Denton) needs to expound upon traditional economic development ideas and look towards nontraditional funding. What is working in other areas of the country - in those cities researched - to fuel the train and provide the capital needed to get to each station? How can we increase capital? • Let's create an accelerator. We need mature Denton business leaders to coach and support bootstrapping startup tech firms, • Let's utilize the tech segments injected into our events to generate new funds. SSW with it's tech based segment SXSW Interactive, generated over $317.2 million into the Austin economy last year. What impact would the the extra economic boost from an event like this have on Denton? • Let's develop new tech events that bring tech delegates Into our community so that we could access the Hot Funds - the hotel occupancy taxes. • We need to look to funding available from national businesses and organizations. For example during research Leadership Denton determined that the Technology Banking Group at Wells Fargo has created a Wells Fargo Startup accelerator. How many other businesses that operate in Denton have similar resources out there that are not being taken advantage of? • NCTC recently received a $4.6 million RITA Grant. A portion of this grant money enables NCTC to provide tech training for businesses and their employees. • Lost but not least, the Denton Technology Council will work toward having a goal of being self funded through, a membership platform. � n f r a r c t K.� r e Now any technology chat wouldn't be complete without discussing infrastructure or internet connectivity. We (City of Denton) need to help address the digital clMcle that exists in Denton today. Denton ISD has established an amazing fiber infrastructure, but the digital divide still exists. While (hese students have access to high speed internet at school many don't at home. In fact, a significant portion of Denton students get home and don't have reliable access to the tools they need most like high speed internet. Railyard represents a prime example of the power of the City partnering with service providers, such as Charter and Frontier, to build out and enhance high speed offerings in Denton. So what's our next stop? The Denton Tech Council will have the ability to help continue the great work that the city has already accomplished by taking the internet package that was created for the Railyard and expand it to other business and residents to help bridge that digital divide. Now, just like any rail line, not everyone wall get off at every stop. You were challenged earlier to think about where you can serve and how you can get on board being an advocate for tech community in Denton. So which stop are you the most excited about today? Where are you going to hop on? These stops will allow Denton to attract and retain talent, build infrastructure and grow the tech community in order to make Denton the most connected City in North Texas. \AMCIt'S lt g011-�g t(D take? We need our stakeholders to unite, be advocates and take action. So, UNT, TWU, NCTC, DISID, Which stop are you going to get off at? • Organizations in the community • Chamber of Commerce * Economic Development • City Counci * Community Leaders * Citizens • The Denton Business Community • Tech Businesses Which stop are you passionate about? )uick Wl"Is The Leadership Denton class has identified the quick wins. What can we begin to accomplish by the end of 2016? What can we (City of Denton) can do in the next 6 months? • Identify key leaders and ambassadors to be a part of forming the tech council. And let's begin to form the tech council! • Educators-UNT/TWU/DISD etc formalize a meeting to talk tech curriculum and figure out how to scale it! • Let's have the Denton Technology Council and Economic Development partnership begin to create a plan for tech economic incentives) • Let's create a strategic plan to create a tech brand! • Develop a plan for making Denton the tech event hub Now these are certainly not the only initiatives or stops along the track, but it's our (The City) starting point. It's where we (The Community) unite and converge onto 1 track. Forming the Denton Technology Council will formalize Denton's investment in attracting tech and it's a beacon to the greater tech community saying Denton is serious about being innovative and forward thinking. P�cture this: - DENTON -- . . . ............... . ... TECHNOLOGYCOUNCIL • A dedicated team available to help court potential businesses in the tech sector • A source to identify the right tech companies to bring to Denton: based upon our tech brand • A tool (for stakeholders) for the chamber, city council, ED, higher ed to utilize in order to streamline everything related to tech and growing the tech community • Imagine: All the key plagers in Denton tech scene coming together and getting on one solid track- that's the Denton Technology Council. If youl bleiievio Deinton U w u,i thii,,, to� 9 Be a competitive Meader in the Tech Industry * Retain Tech Talent * Grow Tech Companies Here Today * Attract New Means of Capital Then together we ( the Denton community) con Make Denton the Most Connected City in NTC. We will grow the tech community in Denton by creating the Denton Technology Council and uniting to accomplish these initiatives. So who's ready to jump aboard? e p s The recommendation is a technology council but we (Leadership Denton class) don't have all the answers. WI -10-1 s r,i, e x V�` Co to dent ont ech noloau provide feedback and how you want to plugin to the Denton Technology Council. To watch a recording of the Leadership Denton presentation go to: hittps://uou-tu.be/Tl2qXG7�3shE http://www jead ershil Qdent on.corn/ hi t p://w ww,cit U ofdent on,com/ hikl,KRPVk:1'(- �/s/d�ark httl2:�//der,iton.techngl(-j_q(./ htt [2://www.prog ressrvepokg.2Lg/ http://www.citUob,coFr7/work/2013/10 /a Meri cc s -top -2,5- hi a h -tech -hot S�2ots/73 35/ ht ://www.dentonpl.com/for httw://www.dentonrc.carry/local-news/lacaI-news..headl ines/20'1306'13-r a i I and project -coming-to- NckorU,ece httoWstokedenton,corn/ hflo://Iechmill.co/ hit 12://w hot workscif lesbloorrberg.org htf p://dent oned p.corri /dent OFI JOCtS htf p://www.fodors,corri/news/ohiot os/americas- best - main, - st reet s#%2114-- main -street htt p://nt dad corn/dent oin - ra ni ked - most - hva b le - c it ht t p://d ent oned p,cor-n/denf on - fact s htt ://www cit u la b,con-) /work/2013 /10 /a mer i ca s -t o 25 -hl h tech -hats ots/"73 35/ I-)It://www.ai-r�ericanbcnker.con-i/ilssues/17­/ 20/citues-rar7ked--data-cer)ier- se curitu-1046200 I.html htt l2://edutechwiki.uniae.ch/eri/Fducatkoncil fechinologU#Definitions- hf f ps://en.w l ki 12ed la,org /wu ki /Seed accelerator http://w,ww,sxsw,com/ [-ittr)-//www,ric�tc.edu/