HomeMy WebLinkAbout4.a. Business Incubator Discussion 4 ROSEMOU T EXECUTIVE SUMMARY
PORT AUTHORITY
Port Authority Date: December 4, 2012
AGENDA SECTION:
AGENDA ITEM: Business Incubator Discussion New Business
PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 4.a.
ATTACHMENTS: Business Incubator Notes dated
11/21/2012, Business Enterprise Center APPROVED BY:
(BEC) Cottage Grove, MN Notes dated
11/28/2012 an)
RECOMMENDED ACTION: Update Item
ISSUE
The Port Authority recommended a small work group to investigate a Business Incubator for the City
of Rosemount. The task was to investigate partnership opportunities, level of interest and formulation
of an action plan. The task force met again this week and found additional information, some of
which is provided.
One item to note is that the more people contacted regarding this topic the more people you find to
contact. This is certainly an item that many communities are or have investigated. From my calls, it
also seems that setting up an incubator might also be, in part, based upon opportunity. Two of the
organizations I spoke with, River Heights Chamber and the City of Prior Lake both had available
office space and they decided to try setting up an incubator. Of course there were also other factors in
play on the decision.
After our discussions this week, the group has decided several future tasks. They would like to find
out more about the Partners in Higher Education facility located in Apple Valley. This is a partnership
with DCTC, Inver Hills, and St. Mary's University of MN. Staff will work through DCTC to find out
more. The group will also investigate the "track record" of some of the incubators and see what type
of demand they are experiencing. Finally, from a mentoring /service standpoint, a compilation of
resources for small business entrepreneurs will be created. One of the task force members is
compiling questions people have and a brochure will be put together along with contact information.
The group also noted that an evaluation of the MCCD services that will start soon in the County
should be done to see if that creates more demand for business services or addresses the current need.
RECOMMENDATION
This item is an update item. Additional work will continue by Task Force members to continue to
investigate business incubators and provision of business mentoring and services for small
businesses and start -ups.
Kim's Notes Business Incubator 11/21/2012
River Heights Chamber
They have lower level office suites that are available due to reorganization. They are open to various
types of tenants although it is office space. They offer support services, equipment use, receptionist, and
common space for meetings. It is anticipated that it's a short term use; around 18 months. There is
approximately 600 square feet at $625. They require Chamber membership.
Prior Lake- Dan Rogness
Prior Lake just recently decided to provide a business incubator. They have space in city hall due to
staffing reductions and space reorganizations. Approximately 2000 square feet is available in city hall.
They provide reception, internet, and conference room space. Very new concept, no tenants as yet.
They will allow a tenant to stay for 3 years, with an escalating rent price -$5 /square ft. first year,
$10 /square ft second year, $15 /square ft third year. Prior Lake will use SCORE as one of the resources
to assist businesses.
Workforce Investment Board —Mark Jacobs
He noted this idea has been around for some time on and off. Provided some information regarding
previous review of business incubators. Noted that discussions centered around specific niche market.
Wondered if partnering with the University or DCTC would be the most efficient. Was strong interest in
nanotechnology incubator previously.
Burnsville —Skip Neinhaus
Burnsville looked into incubator but didn't pursue it. He sent me information they pulled together when
the City was looking at this issue in 2005. He indicated it's not a money making venture and in fact most
likely it would be difficult to break even. He also suggested talking to Owatonna as they have an
incubator that has had some success.
Metropolitan Consortium of Community Developers —Rob Smolund
He indicated that the work MCCD will be doing in the County would complement a business incubator
use. He also indicated that they are involved in micro- businesses and also business loans. He detailed
their work with the Midtown global market. He also suggested talking to Mike Tomalli of the
Neighborhood Development Center. He indicated once they are on board with the County contract they
would be able to work out details of what type of support they could provide.
University of MN —Carla Carlson
Spoke with Carla about partnering with the University on the incubator project. She indicated there are
several schools at the University that may be applicable. She mentioned the Carlson School and the
Humphrey School. She forwarded some information about the extension and classes they currently
have. She will do additional research about opportunities for the University and City to partner. Perhaps
some grad students can do a research project that would relate to a business incubator.
Business Enterprise Center (BEC) Cottage Grove, MN November 28, 2012
BEC Summary:
Provide entrepreneurs affordable work space and supportive services
Offer training opportunities
Networking with other small business owners
Training:
Finance and Accounting
Government Regulations
Legal
Business operations
Eligibility:
Must submit application with financial history and business plan
Demonstrate commitment to growing the business
Management Company and Advisory Board approve applications
Targeted Industries:
Industries eligible for MN Angel Tax Credit Program
Production services industries
Industries with potential for creating high quality job growth
Facility:
21,840 sq. ft.
o 5,480 sq. ft. light manufacturing space
o 15,000 sq. ft. office space
Lab space available
Conference and training rooms
High speed internet