Chandler Endeavor IGA Amendment 1

AMENDMENT TO INTERGOVERNMENTAL AGREEMENT
BETWEEN
CITY OF CHANDLER, ARIZONA
AND
ARIZONA BOARD OF REGENTS FOR AND ON BEHALF OF ARIZONA STATE UNIVERSITY
FOR
DELIVERY OF INCUBATOR AND ECOSYSTEM BUILDING SERVICES

THIS AMENDMENT NO. 1 (“Amendment”) is entered into 2024 (“Effective Date), by and between
the City of Chandler, an Arizona municipal corporation (“City”), and the Arizona Board of Regents, a body
corporate, for and on behalf of Arizona State University (“ASU”). The City and ASU are sometimes jointly
referred to as the “Parties” and individually as a “Party.”

RECITALS

WHEREAS, the Parties entered into an intergovernmental agreement for the provision of incubator and
ecosystem building services (“Agreement”); and

WHEREAS, the term of the Agreement was July 1, 2023, through June 30, 2024, with the option of up to
four one-year extensions; and

WHEREAS, the Parties wish to exercise the first option through this Amendment to extend the
Agreement for one year.

AGREEMENT

NOW THEREFORE, the Parties agree to amend the Agreement as follows:

1. The recitals are accurate and are incorporated and made a part of the Agreement by this
reference.
2. Extend the term of the Agreement for an additional one-year term: from July 1, 2024 through

June 30, 2025.

35 Amend Exhibit A, Scope of Services: ASU shall provide the services as set forth in the Scope of
Services attached hereto as Amended Exhibit A and incorporated herein by reference.

4. Amend Exhibit B, Fee Schedule: ASU’s compensation and fees shall be as more fully described
in the Amended Exhibit B attached hereto and incorporated herein by reference.

5: Amend Exhibit C, Performance Measures: Specific performance targets are attached hereto as
Amended Exhibit C (Performance Measures) and incorporated herein by reference and shall be
used to evaluate and report progress on ASU's performance of the Scope of Services.

6. All other terms and conditions of the Agreement remain unchanged and in full force and effect.
If a conflict or ambiguity arises between this Amendment and the Agreement, the terms and
conditions in this Amendment prevail and control.

IN WITNESS WHEREOF, the Parties have entered into this Amendment on the Effective Date.

CITY OF CHANDLER

By:

Its:

APPROVED AS TO FORM:

By:

City Attorney V/A

ATTEST:

By:

City Clerk

ARIZONA BOARD OF REGENTS FOR AND ON
BEHALF OF ARIZONA STATE UNIVERSITY

0h

By:

Its: Executive Vice President, Knowledge Enterprise, ASU

APPROVED AS TO FORM:

Berfreinein Wetaud
By: G
Office of General Counsel,
Arizona State University

AMENDED EXHIBIT A
SCOPE OF SERVICES

ASU will develop a program and a method of delivering incubator and ecosystem-building services.
ASU Edson E+1 activities and deliverables include:

Facility Management

Maintain office space at the ASU Chandler Innovation Center to provide a location for business
incubation/acceleration and co-working activities.

Provide access to a co-working area for companies and individual entrepreneurs that offers
space and access to standard office resources, such as high-speed internet, copy machines,
video conference infrastructure, and printers.

Provide staff to manage the facility and tenants during the hours of 9:00 a.m. to 5:00 p.m.,
Monday through Friday, except on designated City holidays.

Track client usage and requests to ensure onsite staffing and program hours meet client
needs.

Implement an application and escalation process for ventures that wish to license a private
office.

Client Recruitment & Development

Recruit technology-enabled ventures into the Chandler Endeavor entrepreneurial ecosystem.
Implement an onboarding process with screening for clustered support tracks.

Manage client onboarding, including execution of agreements and communication of program
rules and requirements, for both resident and non-resident clients.

Provide regular venture development support, to be delivered by ASU staff and mentors.
Develop custom venture incubation programming that aligns with local needs and strengths
through Chandler Endeavor.

Assess clients’ growth and advancement through programming.

Analyze program timing and delivery methods to determine client interest levels and value.
Encourage long-term engagement in the ecosystem and leadership in future development.
Encourage clients to remain in Chandler after program participation and scaling. ASU Edson
E+I will work collaboratively with the City’s Economic Development Division to establish a
process to retain clients in the community.

Events: ASU Edson E+ is expected to host entrepreneurial programming and events, including:

Outreach events for clients, mentors, community members, and investors.
Monthly connectivity events with diverse learning modalities.

Founder meet ups to encourage peer to peer learning and accountability.
Large ecosystem-wide community convening.

Entrepreneurial Ecosystem Building

Recruit targeted industry mentors and technical support providers who will commit time to
support Chandler Endeavor ventures.

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Work with ventures to create an engagement strategy to advance their individual venture
while providing leadership and support to other community founders.

Develop partnerships (Arizona State University, University of Arizona, Maricopa SBDC,
Chandler Chamber of Commerce, #yesphx, Arizona Tech Investors, Arizona Founders Fund,
and other groups) to support client recruitment and enhance delivery of programs, services
and events.

Work with university-wide resources to provide access to specialty equipment, researchers,
student support and internship opportunities.

Strategic Plan & Marketing Activities

Outline recommendations for the further development of the Chandler entrepreneurial
ecosystem based on a comprehensive ecosystem assessment. Strategy and future iterations of
the program will align with the findings of the assessment and serve as a guidepost for other
partners engaging in the ecosystem.

Maintain a dedicated program webpage with information on business incubation/acceleration
services, co-working services, events, news, and how to become a client.

Promote the program on social media.

Engage at local, regional and global events that promote Chandler Endeavor and the City of
Chandler as a leader in innovative entrepreneurial ecosystem building support.

Ensure all marketing materials created for the program clearly communicate that it is
sponsored by the City of Chandler.

Reporting: ASU Edson E+l is expected to provide the following reports to the City’s Economic
Development Division:

Quarterly reports on program milestones, traction, lessons learned, success stories, and the
established performance measures shown in Exhibit C of this agreement.

An annual report on how the program has helped cluster cohort and private space user
ventures raise capital, generate revenue, and create job opportunities (employment,
internships, contractors).

An annual report on the diversity of founders engaged in the program with the goal of
program participants being an accurate reflection of the diversity of Chandler.

An annual connectivity survey that measures the overall advancement of the connectivity of
the ecosystem.

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AMENDED EXHIBIT B
FEE SCHEDULE

The fee below is inclusive of all costs associated with performance of services described in the Scope
of Work.

Incubator and Ecosystem-Building
Management Services $22,916.67 per month, inclusive

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AMENDED EXHIBIT C
PERFORMANCE MEASURES

The performance targets below shall be used to evaluate and report progress on ASU's performance

of services described in the Scope of Work:

Annual Performance Measure

FY 24-25 Targets

Total people engaged in the Chandler Endeavor ecosystem
(unique innovators engaged in connectivity events, email signups, one on

accountability meetings and industry-specific resources in six-month
cohort tracks)
Venture (Fall 2024) - 6

one wayfinding assessments, collaboration co-working space users). A 200
secondary goal is to engage 100 new people during the contract year.
Ventures engaged in Cluster Cohorts (in-depth mentoring, founder 12

The specific names of
ventures to be listed

Accelerate (Spring 2025) - 6 per cohorts
Total number of ventures given access to private office space 6
Average Net Promoter Score for all ASU Edson E+I initiated programming! 60%
Chandler ecosystem Connectivity Score? TBD
Average Funding Readiness Score for client ventures (scale of 1 - 5) 2-3
Venture Challenge pitch competition / funding events hosted 2

1. Net Promoter Score is a customer satisfaction metric to measure the quality of an experience for an individual
based on a single survey question asking participants to rate the likelihood that they would recommend the
program to a friend or colleague. A score of 100% indicates that all participants surveyed would enthusiastically

promote the program. Industry average for educational training is 60%.

2. The Connectivity Score is a metric used to assess the strength and density of entrepreneurial networks within a
community. It is obtained through an annual survey that measures how many entrepreneurs individuals can

identify or know within their community. The survey is distributed widely in the Chandler community to establish a
baseline score.

The objective would be to see an increase in the overall Connectivity Score each year, which serves as an indicator of
the broader impact of a program or initiative on the community. The underlying premise is based on ecosystem
building theory, which suggests that communities with robust networks of entrepreneurs are more resilient and
capable of fostering a diverse range of successful ventures. This, in turn, leads to a higher quality of life and
sustainable economic impact over time.

For instance, a Connectivity Score of 9.4 would indicate that, on average, entrepreneurs in the broader community
are acquainted with or have connections to nine other entrepreneurs. This score demonstrates a relatively low

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entrepreneurial network within the community. By actively working to increase this score, the aim is to enhance
collaboration, knowledge sharing, and support among entrepreneurs, thereby promoting economic growth and
community development.

3. Funding readiness frameworks are used to help ventures better understand the different elements investors
evaluate when determining whether to invest. They inform a venture’s financing strategy, identifying at what stage
of development different funding is ideal. The VIRAL framework created by Village Capital is one example that has
been beta-tested. ASU is creating a custom framework with language that is more accessible and can be easily
applied to different industries. The survey will determine a baseline of funding readiness at the start of a venture's
participation in Chandler Endeavor and the venture will be reassessed as it progresses through the program. The
framework will assign a score of 1 - 5 with 5 being most ready for higher stages of funding.

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