Trellis Napa Valley: A Food, Wine and Technology Business Incubator

What is a business incubator and what does it do? Business incubator programs accelerate the successful development of entrepreneurial companies through an array of business support resources and services. The business incubator concept is well-regarded and time tested for creating places that sustainably increase job growth. Successful incubators create companies and jobs appropriate for each incubator’s area, and the model Trellis Napa Valley has selected will focus on creating high wage, white and green collar jobs. The goal is to produce successful firms that will leave the program financially viable and freestanding. Incubator graduates have the potential to create wealth, revitalize neighborhoods, commercialize new technologies, and strengthen local economies. What is the local business incubator called? Trellis Napa Valley (the Trellis) is the local business incubator and will encompass the facility, the educational model, and programs. Trellis Napa Valley was so named as a nod to our agricultural roots and renowned winegrape industry. The purpose of a trellis is to support and provide the structure and training for things that grow. What are the plans for the Trellis? A business incubator in Napa County will naturally focus on technologies in the wine and fine food industries, complementing our current industries and facilitating our continued leadership in these economic sectors. Opportunities also exist to attract relevant and appropriate industries to our area such as renewable energy, clean technology, sustainable food and agriculture processing, biotechnology, and others. How will this help our local economy and our community? In a nutshell, business incubator programs accelerate startups and entrepreneurial efforts, the most successful of which create white and green collar jobs. These companies will add to our existing commercial/industrial focus in the South Napa area, reduce vacancies, and support existing and as of yet unformed businesses.. Our initial goal is to graduate 100 companies in 10 years employing 1500 at an average of $50/hour in the South County. Who is already involved and supporting the concept? Supporters of the business incubator represent a wide range of public and private sectors - including the County of Napa, the City of Napa, the Workforce Investment Board, Napa Valley College, Napa Chamber of Commerce, Sustainable Napa County and a growing number of private businesses and individuals. What are the first steps to making this a reality? The development of a detailed business plan for a sector-focused incubator is the critical first step in the process. How much is the business plan going to cost? Development of a comprehensive business plan will cost $35,000. What will the business plan cover and what will it tell us? The business plan will contain detailed information about the business incubator mission, objectives and the general approach; identification of sector foci; organizational structure including legal, board, and partner roles; services and programs for clients and affiliates; marketing, public relations, and client recruitment strategies; client application and selection processes; a staffing and training plan and job descriptions; facility design and technical requirements; pro forma financial statements and budgets for years one through three including fund development resources; project schedule implementation; and evaluation criteria. What is the North Bay iHub and how does Napa County fit in? In an effort to harness and enhance California’s innovative spirit, the State of California launched its new, forward-thinking Innovation Hub (iHub) initiative. The iHub initiative will improve the state's national and global competitiveness by stimulating partnerships, economic development, and job creation around specific research clusters through state-designated iHubs. The iHubs will leverage assets such as research parks, technology incubators, universities, and federal laboratories to provide an innovation platform for startup companies, economic development organizations, business groups, and venture capitalists. The North Bay iHub includes Napa, Sonoma, and Marin counties. While each county is embarking on their own customized economic enhancement efforts, as part of the North Bay iHub they may collaborate on regional programs and gain access to the state iHub program – which might eventually include funding. Where will the Trellis be located? The current location under review is the former Japan Airlines (JAL) facility in the Napa County Airport Industrial Area (AIA), and which could lead to potential growth of new companies in remaining available office space in the AIA and elsewhere. What kinds of things will happen at the Trellis? The incubator will offer guidance and expertise in program areas such as law, finance, marketing, sales, human resources and IT as well as physical office space and administrative support services like reception, clerical, bookkeeping, and office equipment. What kinds of tenants might be located there? Ultimately, the mix of tenants and sectors will be determined by local stakeholder input and the comprehensive business plan. Initial inquiries have shown demand for and interest in technology and biosciences companies related to the wine, food, and hospitality industries. The incubator will also draw on the Bay Area’s wealth of respected educational and high tech institutions. Are the programs and workshops open just to tenants? One of Trellis Napa Valley’s objectives is to develop educational opportunities and stimulate professional development for both residents and affiliate clients, as well as the general public. Programmatic elements will be available to resident clients, affiliated businesses, and those not headquartered at the facility but purchasing programmatic access. The Napa iHub/Trellis Napa Valley will also develop short seminar style presentations in a classroom type environment, potentially leveraging the facilities at the Napa Valley College, where interested participants can chose which topics they would prefer to explore in a more general overview (as opposed to a mentoring style engagement). These programs will be recorded and distributed online. By working with local school districts and colleges, the facility will provide experiential learning opportunities to students who would like practical experience in a dynamic, real world corporate environment. Trellis Napa Valley and its tenants will benefit by involving stakeholders in education and by helping to train a skilled workforce, ready at a moment’s notice to existing and new resident businesses. How will we use local resources and existing programs? The incubator will draw upon the existing array of available services from such entities and groups as Napa Valley College, Small Business Development Center, Chambers of Commerce, the Workforce Investment Board, NapaLearns, SCORE, Junior Achievement and others. How much will it cost to set up the incubator and get it running? Once the business plan is completed, specific facility tenant improvements (TI) at the JAL facility may be identified but are expected to be modest due to the facility’s prior uses. Other similar business plans have identified approximately $300,000 in three year phase one fundraising requirements. Beyond three years tenant occupancy and revenue from programs should make the incubator self-sustaining. Long-term viability is also buoyed by the small equity stake tenants assign to the nonprofit in return for discounted rent and services provided by the incubator. Are there other successful examples of incubators I can look into? Communities throughout California and the US are turning to business incubators as an innovative way to attract, expand, and retain businesses and enhance local economies. Successful examples nearby include the Sonoma Mountain Business Cluster as well as incubators in San Francisco and Santa Cruz. Others are located in the City of Westerville, Ohio; Black Hills State University; Western Wyoming Community College; and the Ceramics Corridor in Western New York. How will the incubator help support the Ag Preserve and our local land use policies regarding agriculture and open space? An incubator can provide job and career path opportunities for current Napa County residents who work in identified sectors but who now must commute outside of our community. A local business incubator will support our community’s commitment to the protection of agricultural land and open space by encouraging urban centered growth and directing economic development into appropriate industrial areas and commercial zones. The incubator will be housed in the Airport Industrial Area and will focus on expanding use of existing business parks in support of the Ag Preserve. Why is this important to our local jurisdictions and how will it all work together? A strong public-private partnership is important to the success of the incubator. Governments can provide some of the tools and incentives needed to attract and retain business, such as streamlining business permits and fee reduction programs. Trellis Napa Valley programs and other privately driven economic development activities, along with Napa County’s appealing quality of life and location, will complement governmental programs – resulting in a collaborative, robust and effective business attraction strategy. Will the recent changes with California’s Redevelopment Agencies have an effect on this project? The organizers of Trellis Napa Valley will work closely with the City of Napa and their newly appointed Commission to address redevelopment transition to insure that we integrate valuable economic development and business attraction activities into incubator programs. Will this effort include an economic development element? The overall strategic success of Trellis Napa Valley will depend on many factors, including: • A healthy business environment; • A readily available skilled workforce; • Available office and manufacturing space for client companies to graduate to; • Available and affordable housing; • Appealing quality of life • Functional and effective private-public partnerships; and • The political will and capital to retain the businesses that already exist in the south Napa County business parks, and to attract appropriate new business to the region. An overall healthy, diversified business base of complementary services and products will help make the Trellis an appealing facility for clients to locate in, and support existing companies and our community. This is a long-term project that will take substantial thought and resources. Trellis Napa Valley represents a whole new way of approaching the opportunity and the concept of economic development – especially in an area where we must balance and maintain our focus on agricultural land and open space protection and preservation. There are many successful and innovative programs around the region, and by integrating the best ideas of programs like Sonoma County’s BEST initiative and the North Bay Leadership Council, Trellis Napa Valley will serve as the natural central hub for the next generation of an economic development-type entity. How can I get involved and support this project? Please contact Jeri Gill at [email protected] for more information.

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