Osceola County expected to sign contract Monday with new company to run Center for NeoVation

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Osceola County is expected to enter into a contract Monday with a new company to operate its Center for NeoVation.

Skywater Florida has agreed to assume the University of Central Florida’s (UCF) lease position for the Center for NeoVation, via the subject restated lease agreement.

During that term, Skywater Florida will operate and maintain the center without additional cost to Osceola County.

Skywater Florida will fully utilize the center for Neovation until Oct. 1, 2044, as provided for in the agreement. It is anticipated that approximately 220 jobs will be created within 5 years. BRIDG will remain as a not-for-profit which will execute the current $29 million of federal contracts with the potential of an additional $30 million in awards. Skywater Florida will have the opportunity to execute on those contracts under a right of first refusal provision. Further, it is anticipated that Skywater Florida will cause the investment of $37 million for operating and capital to fulfill the mentioned contracts.

In October, Osceola County Commission entered into a Memorandum of Understanding (MOU) between the county and SkyWater Technology to replace the University of Central Florida’s (UCF) role with BRIDG and NeoCity.

The MOU described some of the shared goals of the partnership, including:

• Taking UCF’s place in the lease agreement for the Center of NeoVation.

• Operating the Center of NeoVation at its full capacity.

• The resumption of BRIDG as a nonprofit.

• The continuation of BRIDG’s contracts with the Department of Defense (DOD).

• The investment of millions of dollars into NeoCity.

• Applying for the proposed new Federal Advanced Packaging National Manufacturing Institute.

• The creation of at least 220 jobs at the Center for NeoVation.

SkyWater is the only U.S.-owned and U.S.-based pure play semiconductor foundry, specializing in development and manufacturing of integrated circuits. This new partnership not only strengthens current partnerships in NeoCity, including IMEC, TEL, and SUSS, but will likely build upon those relationships and expand upon them, according to county officials.

Thomas Sonderman, SkyWater president and chief executive officer previously said, “We are pleased with the opportunity to collaborate with Osceola County and hope this encourages more customers to commence or resume work at the Center for Neovation. The Florida fab offers a complementary service model and technology platform to our Minnesota fab. We are very excited about the potential to extend SkyWater’s capabilities and to grow operations at both facilities.”

If during the lease term, Skywater Florida determines that it has not been able to or will not be able to consistently operate the Center for Neovation at full capacity as defined in the agreement, it may terminate this restated lease agreement by providing a an 18-month written termination notice to Osceola County. During such 18-month period, Skywater Florida will maintain the Center for Neovation, and all tools and other equipment, and endeavor to find a replacement operator for the Center for Neovation acceptable to the county. If a satisfactory operator of the Center for Neovation is not secured, Skywater Florida will pay a termination fee to Osceola County of $15 million.

Osceola County, in partnership with UCF and Bridg, received a $2.2 million grant award from the Economic Development Administration (EDA) to assist with funding tool installation at the Center for Neovation. The award was conditioned on a covenant requiring approval by EDA should there be a different lessor for the Center for Neovation. EDA will be evaluating, among several items, whether Skywater Florida will result in comparable job creation envisioned by the lease with UCF. Should EDA not accept Skywater Florida as an acceptable entity to assume UCF’s lease, the proposed agreement stipulates that Osceola County would satisfy the terms of the grant that may include repayment of the $2.2 million award. This item also includes Osceola County’s settlement with the University of Central Florida with regard to its obligations under the lease. UCF is agreeing to terminate its rights and claims to the Center for Neovation by agreeing to assign its obligations to Skywater Florida. UCF also agrees to provide $15 million in transition funds that will be utilized in the Center for Neovation and those funds will enable execution of the mentioned Department of Defense contracts.