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Mayor Kevin Johnson: $14.6M to new, job-creating initiatives | News

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Mayor Kevin Johnson: $14.6M to new, job-creating initiatives
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It may have been Sacramento Mayor Kevin Johnson’s eighth and final State of the City address, but he showed no signs of slowing down.

Johnson proposed three new initiatives aimed at creating jobs in Sacramento. As described, the initiatives would require $14.6 million in city funding.

The first initiative would activate the Sacramento Employment and Economic Development Corporation, or “SEED Corp,” a nonprofit charged with bringing jobs and businesses to low-income areas of Sacramento. SEED Corp would get $1.2 million to focus on the Del Paso Heights, Meadowview and Valley Hi neighborhoods.

The second initiative is a medical innovation zone, or “MedZone” in the neighborhood of Oak Park.

“The city has set aside $5.2 million for the MEdZone, which is being leveraged to bring in up to 12 companies and create over 100 jobs from entry level to C-suite, within the next five years,” Johnson said.

The third initiative is an $8.2 million “Innovation and Growth Fund.” With this money, Johnson wants to give out $500,000 grants to organizations geared toward training entrepreneurs. He would also invest $1 million in as many as six startups based in Sacramento. Lastly, $2 million would be invested in the Silicon Valley-based 500 Startups fund created by PayPal founder Dave McClure.

“Sacramento would be the first city in the country to invest in this $200 million fund. The fund typically gets 5 times its return on investment, which will allow us to replenish our innovation and growth fund,” Johnson said. He added that McClure had committed to invest in at least 10 new startups headquartered in Sacramento.

 


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