Start-Up NY Plan - Draft, 2013 December 6

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CONFIDENTIAL DRAFT

The University at Albany
START-UP NY Plan

Submitted to the
NYS Empire State Development Corporation and
State University of New York

December 5, 2013
(last updated)

Ki STARTUBNY

UNIVERSITY

ATALBANY
Soom Univastgred Dive Sak
Table of Contents

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A. OVERVIEW

The University at Albany (UAlbany) is pleased to submit its START-UP NY “University Plan” to the
NYS Empire State Development Corporation (ESDC) and State University of New York (SUNY).
Upon implementation, this plan will enable UAlbany to advance its academic, research and service
mission by leveraging START-UP NY tax-free incentives to establish public-private partnerships,
ultimately leading to enhanced job creation and entrepreneurship at UAlbany and across the
broader Capital Region.

Of equal importance, this plan will provide novel opportunities for UAlbany to i) develop new
knowledge and discovery, ii) generate new external research funding, iii) create experiential
learning opportunities, iv) promote work force training and development programs, and v) invest in
underserved, economically distressed communities in the region.

UAlbany’s plan addresses the following key elements of Governor Cuomo’s START-UP NY
initiative that are explicitly cited in the enabling legislation and/or required by the control agencies
regulating the initiative including:

= Identification of the campus contact person, office and address to administer the
START-UP NY initiative

= Identification of designated space and/or land for the START-UP NY initiative

= A description of the type of business or businesses that the University will pursue, as
well as a description of how the University will select business under START-UP NY

= Alignment of the START-UP NY initiative with University's mission

= How START-UP NY businesses will generate positive community and economic benefits

As a major public research university, UAlbany is poised to capitalize on the START-UP NY
initiative given the breadth of its leading academic and research programs and its approved
NYSUNY 2020 plan featuring the 225,000 square foot Emerging Technologies and
Entrepreneurship Complex (E-TEC).

WA si Jany Co) Page 1
B. START-UP NY CAMPUS CONTACT PERSON, OFFICE AND ADDRESS

UAlbany’s START-UP NY initiative will be administered out of the Office of Business Partnerships
and Economic Development in the Division for Research.

The program head and contact will be:

Michael H. Shimazu

Associate Vice President for Business Partnerships
and Economic Development

University at Albany

University Hall 307D

1400 Washington Avenue

Albany, New York 12222

(518) 956-8170

mshimazu@ albany.edu

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C. IDENTIFICATION OF DESIGNATED SPACES AND/OR LAND UNDER
START-UP NY

SPACE AVAILABLE IN CAMPUS BUILDINGS

At this time, UAlbany has identified the below list of spaces within its campus boundaries to be
designated under the START-UP NY initiative. These identified spaces are based on existing
campus facilities vacancies, both current and in the immediate future, in the context of anticipated
new faculty and staff hiring, out-year renovation, and projected research growth. UAlbany carefully
considered these factors to ensure that its existing academic, research and student support
programs are not impacted by the designation of space under the START-UP NY initiative.

Uptown Academic Podium - Up to 1,635 SF wet lab with support spaces

= About this Location - Home to STEM disciplines, arts and humanities, social sciences,
business, and education, the Uptown Academic Podium provides the highest level of access
and interconnectedness with UAlbany students, faculty, researchers, and staff. It also provides
access to high-quality support services, resources and amenities.

= Description of Space - UAlbany has identified Biology Building lab suite 341-342 for designation
under the START-UP NY initiative. This space is currently vacant and will require minor
upgrades prior to occupancy. The suite includes 4 work bench areas, lab shelving and case
work, a5 foot-wide fume hood, , two (2) small equipment rooms, an office and two (2) write-up
rooms.

Downtown Academic Campus - Up to 10,000 SF in Schuyler School Building

= About the Location - The Downtown Academic Campus, at 135 Western Avenue, is in the
center of the City of Albany and home to nationally ranked UAlbany programs in Criminal
Justice, Social Welfare, and Political Science. The Schuyler School Building was recently
acquired by the University and provides an opportunity for businesses to integrate with these
instructional and research programming on the downtown campus. Additionally, this facility is
geographically situated in an underserved area further creating a nexus to UAlbany’s academic
and research programs (e.g., micro-loan entrepreneurship) which could spur growth in
economically distressed areas.

Description of Space - UAlbany has identified up to 10,000 SF of space within the Schuyler
Building under the START-UP NY initiative. While the entire 127,000 SF facility is vacant and
requires gut renovation, itis a priority of UAlbany’s Capital Plan; and the University will explore
opportunities for START-UP NY ventures as opportunities arise.

East Campus - Up to 8,631 SF of lab and office spaces

= About the Location - Home to the UAlbany’s top ranked School of Public Health, this
technology-focused hub located in Rensselaer County consists of instructional, office, and
research space, including high quality biology, chemistry, materials science and animal
research labs, along with approximately 20 tenants including Taconic Farms and Albany
Molecular Research.

= Description of Space - UAlbany has earmarked up to 8,631 SF on its East Campus, including
10 wet labs, most with fume hoods, ranging from 441 to 1,366 SF. The spaces also include 5
offices of various sizes. The East Campus is owned and operated by a UAlbany affiliate, the
University at Albany Bioscience Development Corporation.

WA si jaw Go) Page 3
Guidance on Additional Space for START-UP NY

UAlbany’s Executive Space Committee will guide the START-UP NY Campus Advisory Committee
on matters of future available space (note: the START-UP NY Campus Advisory Committee is
defined later in the document). The Executive Space Committee, an already established structure,
provides the expertise and knowledge about space allocation, both current and planned, and can
provide essential insight into space opportunities and constraints within a particular building or
campus location. More information regarding the Executive Committee can be found at:
http://www.albany.edu/facilities/campusplanning/spacemembers.html.

ESS) START-UP NY CAMPUS

‘Ad Hoc Academic Review
Committee (new)

ADVISORY COMMITTEE

as needed)

Ysera

LAND AVAILABLE ON EXISTING CAMPUS PROPERTIES

UAlbany has very few available campus parcels of land for development given its urban setting and
rigid site plan. The following two parcels, each of which could be subdivided, have been identified
for designation and potential development under the START-UP NY initiative.

= East Campus Land Parcels - Up to 36 acres
UAlbany has earmarked up to 36 acres of buildable land on its East Campus for designation
under the START-UP NY initiative. In addition to the East Campus’ School of Public Health and
existing biotechnology partners, this site is directly adjacent to Regeneron Pharmaceuticals.
The land is a strategic location for future growth, particularly in the biomedical and public health
disciplines given the campus'’s state-of-the-art infrastructure and breadth of human capital.

= Fuller Road West Land Parcel - Up to 18 acres
UAlbany has identified up to 18 acres of land on Fuller Road for designation under the START-
UP NY initiative. This site includes acreage adjacent to UAlbany student housing facilities and
the NanoCollege Complex. It is suitable for low impact development, providing access to the
NanoCollege facilities as well as UAlbany researchers, students, faculty and staff.

Guidance on Future Development of Campus Land

Guidance on future land-use planning matters on UAlbany’s state operated campuses would be
provided by UAlbany’s Advisory Planning, Architecture, and Aesthetics Committee. This group
helps shape land use and site planning decisions, especially important on UAlbany’s Uptown and
Downtown campuses, both of which are very densely constructed and designated as regulated
historic sites. Additional information for this Committee can be found at
http://www.albany.edu/facilities/apaac.html.

as needed)

joc Academic Review
= Oe COMMITTEE Teeek advice Committee (new)

With regard to affiliate-owned property, the START-UP NY Campus Advisory Committee will liaison
with the appropriate governance bodies within the affiliate concerning property that might be
considered for future designation under the START-UP NY initiative.

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200,000 SQUARE FEET OF SPACE AND LAND BEYOND THE CAMPUS BOUNDARIES

At the time of this submission, UAlbany is not including space or land beyond its campus
boundaries for designation under the START-UP NY initiative.

UAlbany anticipates identifying such space or land in the future only after consulting with its
municipal and economic development stakeholders. Upon such consultation, the University may
amend its plan as appropriate.

Future Consideration for Inclusion of Off-Campus Space/Land
The University anticipates that the off-campus spaces/land to be designated under the START-UP
NY initiative will support public-private partnerships that will:

1) Align with or further UAlbany's academic mission

2) Provide community and economic benefits - particularly, in underserved and
economically distressed areas; and

3) Be proximate to UAlbany’s campus as required by statute and regulation

Local Government and Economic Development Stakeholders

Prior to including off-campus space/land in UAlbany’s START-UP NY plan, UAlbany will consult
with the below local government officials and notify economic development stakeholders as
applicable. These include:

- Albany and Rensselaer County, County Executives

- City of Albany, Mayor

- Town of East Greenbush, Supervisor

- Economic Development entities (IDAs and Center for Economic Growth)

In discussions regarding off-campus space/land with these stakeholders, UAlbany will emphasize
the importance of targeting underserved and economically distressed populations and giving
preference to underutilized properties under the START-UP NY initiative.

D. DESCRIPTION OF THE TYPE OF BUSINESS OR BUSINESSES

Description of Eligible Businesses

Eligible START-UP NY businesses will need to be aligned with or further UAlbany’s academic
mission spanning the arts, sciences and professions (for more information, see “Alignment with and
Furthering the Academic Mission”)

Businesses must either be a 1) new company/start-up, 2) an out-of-state company relocating to
New York State, or 3) an expanding business currently based in New York State. The overarching
criterion is that the prospective business must demonstrate that it is creating net new jobs, in
addition to aligning with or furthering UAlbany’s mission and providing positive economic and
community benefits.

Ineligible businesses will include retail/wholesale businesses, restaurants, real estate brokers, law
firms, medical or dental practices, real estate management companies, hospitality industries,

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finance/financial services, and other personal services. Additionally, utilities and businesses
engaged in the generation or distribution of electricity are ineligible.

Moreover, prospective START-UP NY businesses cannot compete against local businesses
already in existence.

E. ALIGNING WITH OR FURTHERING THE ACADEMIC MISSION

UAlbany will only consider businesses that align with or further its academic mission under the
START-UP NY initiative. Public-private partnerships that meet this test might feature:

¢ Sponsorship of current and/or developing faculty research, scholarship, and creative work
e Experiential learning and workforce opportunities for students and graduates (e.g.,
internships, fellowships, full-time jobs)

Access to specialized instrumentation, tools, and/or laboratory equipment

Support for scholarships, fellowships, or endowed chairs

Instructional contributions and student mentoring

Access to intellectual property, expertise, or other business resources

Support for campus facilities and/or other institutional services/amenities

UAlbany’s START-UP NY plan capitalizes on the campus'’s following strategic priorities:

e Climate, Environmental and Economic Sustainability--P redicting, Planning and
Conserving our Environment for Future Generations

e Emerging Technologies--Improving Human Efficiency and Security through Computational
and Forensic Sciences

e Human Health and Biomedical Sciences--Translating Science into Human Health

e Public Service and Policy--Improving the Human Condition through Research on Policy
and Practice

e Business and Entrepreneurship--C reating a Culture of Innovation and Entrepreneurship in
a Secure Global Marketplace

e Liberal Arts and Sciences--The Critical Foundation of an Educated Person Prepared for
Citizenship, Work, and Life

Leveraging UAlbany’s NYSUNY 2020's Four Transformation Research Clusters

Building on its NYSUNY 2020 plan approved by Governor Andrew M. Cuomo, UAlbany will seek to
harness the intellectual capital of four transformational research clusters. Prospective businesses
that have synergistic connections with these research disciplines will be well positioned to capitalize
on the START-UP NY initiative as detailed below.

Research Cluster #1: Climate and Environmental Science Research

Leveraging our internationally acclaimed Department of Atmospheric and Environmental Science
(DAES) and Atmospheric Science Research Center (ASRC), UAlbany will target businesses that
align with or further its Climate and Environmental Science Research Cluster under NYSUNY 2020.

This cluster will pursue advances in environmental science and climate prediction with the potential

to serve as an R&D arm for climate sensitive businesses and industries. UAlbany can offer cutting-
edge facilities to spur fruitful collaborations for mutual benefit -- including outstanding opportunities

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for the University’s students to obtain invaluable experience on business applications related to
their research and studies.

Research Cluster #2: Biomedical Science and Biotechnology

UAlbany will capitalize on its internationally recognized strength in the Life Sciences to pursue
advances in areas of neurodegenerative diseases and neurodevelopment, infectious disease, and
cancer. The University’s RNA Institute, Cancer Research Center and Center for Functional
Genomics have successfully led the way in interfacing with businesses to advance basic and
applied research through public-private partnership. The available infrastructure at these facilities
and others ensures that the University is ready and prepared to offer emerging biotechnology
companies and existing companies new opportunities for collaboration with our researchers and
students.

Research Cluster #3: Forensic Sciences and Cyber Security

The University’s forensic sciences and cyber security cluster is poised to partner with new business
and industry to develop novel advances across a range of disciplines including crime scene and
digital forensics. The University is well-prepared to work with companies to translate research
discoveries into practical tools and technologies that would transform cybersecurity, digital
forensics, and criminal investigations locally, nationally, and around the world.

Research Cluster #4: Advanced Data Analytics

UAlbany will pursue new business and industry collaborations that leverage the University’s
research strength across a wide array of advanced data analytics and informatics including natural
language processing, artificial intelligence, software engineering, information science, computer
architecture, knowledge representation and planning. Utilizing an interdisciplinary approach in
which technology is developed from an understanding of both the application domain and the ways
in which humans think, UAlbany’s research strengths will be enhanced by collaborations with the
private sector leading to the commercialization of research that will help businesses compete in an
increasingly data-driven economy.

Leveraging the Breadth of the University at Albany’s Mission

Comprehensive Undergraduate, Graduate and Professional Education

As a major public research university, UAlbany provides a wide range of academic programs
spanning the arts, sciences and professions including over 250 undergraduate and graduate
degree offerings. The University’s plan will leverage START-UP NY initiative benefits to partner
with business and industry in order to strengthen its nationally ranked and/or distinctive academic
programs across the University including, but not limited to, biomedical science, business,
counseling and clinical psychology, computer science, criminal justice, economics, education,
English, information and technology management, library and information studies, math, nonprofit
management, political science, public affairs, public finance and budgeting, public health, public
management administration, social work and sociology.

Research and Discovery

The University’s Plan will focus on opportunities with business and industry to leverage, capitalize
and grow its diverse research portfolio, which includes more than 60 research centers
Entrepreneurship and Innovation

Entrepreneurship and innovation are emerging university-wide priorities for both faculty and
students. Under UAlbany's approved NYSUNY 2020 plan, the University is developing an
Emerging Technologies and Entrepreneurship Complex (E-TEC) and corresponding ecosystem to

WA si Jany Co) Page 7
transform pioneering research and innovation into commercial activity and public-private
partnership opportunities. Leveraging the E-TEC ecosystem, which brings together business
development and technology transfer, the University is particularly well positioned to support the
creation and growth of new business and industry under the START-UP NY initiative.

The University envisions START-UP NY businesses to support and foster entrepreneurship through
new and existing programs such as student venture funds, social entrepreneurship, business plan
competitions, SBIR/STIR partnerships and other business development opportunities.

Community Engagement in Economically Distressed Areas

As a public research university, UAlbany is committed to engaging the communities surrounding its
three campuses - particularly regions that are underserved. The University’s active community
engagement agenda through its academic disciplines and extracurricular volunteer work will be
enhanced by START-UP NY business initiatives that focus in particular on underserved areas in our
communities. Public-private partnerships created through the START-UP NY program can offer
new opportunities for our students, faculty and researchers to tackle real-life problems from an
interconnected academic and business perspective. The University’s plan will capitalize on the
START-UP NY initiative to engage businesses that will contribute to the revitalization of
economically distressed regions to create jobs and positive economic impact.

Under the START-UP NY initiative, UAlbany’s plan will enable the pursuit of public-private
partnerships that advance the University’s mission, while creating jobs and positive economic
impact throughout the region.

F. HOW START-UP NY BUSINESSES WILL GENERATE POSITIVE
COMMUNITY AND ECONOMIC BENEFITS

UAlbany’s proposed START-UP NY plan anticipates attracting new businesses and new jobs to the
Capital Region over the next ten (10) years. These businesses will include out-of-state companies,
new start-ups or expanding businesses from New York State.

Eligible START-UP NY businesses that align with the academic mission under the University’s
START-UP NY plan will not only create new employment opportunities, but will attract new
investment locally spurring additional economic growth across the Capital Region economy.

This economic growth will result in a number of benefits including:

Increased employment opportunities

Diversification of the regional economy

Expanded purchasing/spending in the local economy

Greater economic impact through increased population

More home ownership and residential investment throughout the region

The University’s START-UP NY plan will place enhanced priority on prospective businesses that
will engage and benefit underserved communities.

The positive economic and community impact of the START-UP NY initiative in the Capital Region
will be further enhanced by the alignment of the University’s plan with key strategic goals of the
Capital Region Economic Development Council:
= to leverage resources among academic, not-for-profit, governmental and commercial
organizations

WA si Jany Co) Page 8

= to open new doors for business, cultivate opportunities for startup companies, and build the
competency of research, education and health care

= to prepare for tomorrow by supporting education and workforce development

= to focus development within the urban core

Through public-private partnerships under START-UP NY, the University will be able to expand
educational and training programs, establish new experiential learning opportunities for students,
generate new research and discovery, and/or transfer and commercialize more research and
technology to the market place - all outcomes that will allow the university to better serve the
Capital Region.

G. DESCRIPTION OF HOW UALBANY WILL SELECT BUSINESSES

Accepting Businesses Applications

Upon its plan being approved by SUNY and ESDC, UAlbany will begin accepting business
applications under the START-UP NY initiative. The Office of Business Partnerships and Economic
Development will first determine if a business applicant meets certain minimum eligibility
requirements under the START-UP NY initiative and University’s Plan. Information regarding the
UAlbany START-UP NY initiative will be available on a secure and dedicated webpage at
http://www.albany.edu/start-up-ny.

START-UP NY Campus Advisory Committee

The University will establish a START-UP NY Advisory Committee to review, evaluate business
applications, which will include a determination of alignment with the academic mission, and make
recommendations to the President (or designee) for final campus approval. The membership of the
group will include appropriate senior administrative officers, as well as faculty and student
representatives. Through its work, the committee will provide a broad University perspective when
implementing this high profile program.

The evaluation and selection process will have two different approval pathways - 1) for space and
land associated under the State University of New York at Albany and 2) for space and land
associated with a University affiliate, such as the University at Albany Foundation OR the 200,000
square feet of property owned by a third party landlord or developer.

#1) State University of New York at Albany - Evaluation and Selection Process

UAlbany’s newly established Office of Business Partnerships and Economic Development will serve
as the “front door” for all prospective businesses seeking to secure START-UP NY designation. Ifa
business applicant satisfies certain minimum criteria, the Office of Business Partnerships and
Economic Development will refer the “business application” to the START-UP NY Campus Advisory
Committee for review and evaluation.

Whenever necessary, the START-UP NY Campus Advisory Committee will seek guidance and
feedback from various campus committees and units on matters including academic and research
alignment, space and land, budget/finance impact and community impact as appropriate.

Evaluation and Selection

The START-UP NY Campus Advisory Committee will select prospective businesses for
participation in the University's program on the basis of their ability to align with or further the
academic mission of the University, their potential for economic benefits and their potential for
benefits to the community. Atleast half of the evaluation for prospective businesses will be based

WA si Jany Co) Page 9
on the furtherance of the University’s academic mission, with economic and community benefits
comprising the remaining considerations. Through this approach, the University’s START-UP plan
will consider a number of related factors in assessing business applications which may include, but
are not be limited to:

Academic and Research Alignment

= Is the business in an industry aligned with current and/or developing University research,
scholarly, and creative activity?

= Does the business provide experiential learning and workforce opportunities (e.g., internships,
fellowships, full-time jobs) for students and graduates?

= Does the business provide areas for partnership and advancement for faculty and students?

= Will the business provide access to research instrumentation, tools, and/or equipment
necessary to advance the academic and research mission?

= Will the business fund scholarships, campus facilities or other academic services or amenities?

= Will the business and/or its employees contribute to instruction or provide student mentoring?

= Does the business offer the use of company resources, intellectual property or expertise to
support the academic mission?

Economic Benefit

= How many net new jobs will be created?

= Is the business viable in both the short- and long-term?
= Will the business attract private financial investment?

START-UP NY SELECTION PROCESS Prospective, START jh NY 2
Uptown and Downtown Campus Business ‘

Submits Application

Executive Space Committee
(exists)

lf Minimum Criteria Met, Application
‘Advanced For Review

Advisory Planning, Architecture
& Aesthetics Committee (exists)

START-UP NY CAMPUS ADVISORY
COMMITTEE (Evaluation & Scoring)

i

‘Ad Hoc Academic Review
Committee (new)

‘as needed) as needed)

Division of Finance and
Business (exists)

iN

if Approved, Advanced tothe President
(or designee) for Final Review & Campus

Offices of Community
Engagement, Government
Relations & Diversity & Inclusion

if Approved, Submit
Application to ESDC

Empire State
Development Corp.
(ESDC)

START-UP NY
Business Approved

WA si Jany Co) Page 10
= Does the business plan to make capital investments (e.g., renovation, new construction)?
= Are the new jobs in critical areas of the economy?
= How will the University financially benefit from the terms of the lease?

Community Benefits

= Does the business have the support of one or more municipal or community entities?
= Is the business recruiting employees from the local workforce?

= Does the business invest in underserved, economically distressed regions?

= Will the business rely on suppliers with in the local and regional economy?

Upon review and approval from the START-UP NY Campus Advisory Committee, the business
application will be advanced to the President (or designee) for final campus approval. Upon the
President's or designee’s approval, the Office of Business Partnerships and Economic
Development will complete the “Sponsoring University Application for Business Participation.” This
form, along with the business application, will be submitted to Empire State Development for final
approval.

#2) University Affiliate or Third Party Landlord or Developer for the Off-Campus 200K Square
Feet Designation

For business applications that seek to utilize land or space owned by a University Affiliate (for
example, the University at Albany Foundation) or by a third party landlord or developer, the process

START-UP NY SELECTION PROCESS Prospective
University Affiliate / Business
Landlord/Developer of 200K of Off-Campus Space |

Submits Application

lf Minimum Criteria Met, Application
Advanced For Review

Division of Finance and --

Business IFApproved, Advanced to the START-UP NY Campus Advisory

Committee for Evaluation & Recommendation to the President

Offices of Community
Engagement, Government
Relations & Diversity & Inclusion

Ma «START-UP NY CAMPUS ADVISORY [i
(eres = COMMITTEE (Evaluation/Review) eck advice

as needed) q ‘as needed)
A START. 4/\)

IFApproved, Advanced to the President
(or designee) for Final Review & Campus Approval

Offices of Community
Engagement, Government
Relations & Diversity & Inclusion

Empire State
Development Corp.
(ESDC)

If Approved, Campus Submits
Application to ESDC
START-UP NY

Business Approved

WA si Jany Co) Page 11
requires an additional step. UAlbany’'s Office of Business Partnerships and Economic Development
will continue with the first review to ensure that prospective businesses seeking to secure START-
UP NY designation satisfy certain minimum criteria. Before the application is moved forward to the
START-UP NY Campus Advisory Committee and the President, it requires an evaluation by the
University affiliate for economic viability, corporate governance and business planning reasons.
Again, existing University committees can be solicited to assist with the review process and an Ad-
hoc Academic Review Committee can be convened as needed to provide the University and its
affiliates with the full array of information needed to assess each application.

Upon ESDC Final Approval

Upon final approval, the University will work with the business to facilitate implementation of the
terms and conditions of agreement under the START-UP NY initiative. The University will co-
operate with ESDC in its monitoring and reporting responsibilities.

H. OTHER ISSUES

Confidentiality

Recognizing that for any number of reasons, a business may require total confidentiality, the
University will, as appropriate, execute non-disclosure agreements with prospective business
partners in order to explore potential business relationships.

Conflict of Interest

The University’s evaluations and selection process will account for prospective conflict of interest
issues through adherence to the section four hundred thirty-nine of Article 21 of the Economic
Development Law, as well as the policies of the State University of New York and the Research
Foundation of the State University of New York.

Accelerated Decision-Making Process

Some prospective START-UP NY businesses may require a more rapid decision-making process.
Accordingly, the President of the University reserves authority to select and advance businesses
under the START-UP NY program to NYS Empire State Development Corporation for final
approval.

WA si Jany Co) Page 12

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