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<br /> SPAGE •10 STAR TRIBUNE ' _ 1 JG�@`1f♦1
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<br /> INCUBATORS from 9
<br /> i 'But Control Data's massive re- us any of that intangible stuff.'I get
<br /> ) organization and a lack of focus eventu- asked the hard questions because we're
<br /> 1 , ally killed that project,and numerous leasing the space well below the market
<br /> f incubator projects have come and gone rate.They ask,'How many jobs have
<br /> since.In Minnesota,NBIA has six mem- you created?'But now is not the time to
<br /> - bers,many of them run as community ask that question.At some point,that is
<br /> 1 ' economic development efforts by non- .the question,but not two years into the
<br /> profit organizations. .::... :.: - project.' -
<br /> 7 • dUthough most incubators in Min- eanwhile,the Minneapolis Green
<br /> nesota have good intentions and list job'-•.Institute,a non-profit organization,will
<br /> creation as their primary goal,few use open a 64,000-square-foot incubator in
<br /> t4 what advocates say is the ideal model: July—dubbed Phillips Eco-Enterprise
<br /> similar businesses pursuing similar Center-that will house about a dozen
<br /> interests _tenants in the energy and environmen-
<br /> I ) The Elk River model -. t�industries.
<br /> �ups also look to incubators for '
<br /> Take the Elk River Incubator Pro- funding opportunities,though a corn
<br /> t• • ject,run by the Elk River Economic -pany's incubator status alone by no
<br /> Development Authority.The two-year-• means guarantees that investors will
<br /> 4 old project houses four tenants,in a gladly open their checkbooks.Rather,
<br /> 14,000-square-foot facility,that pursue incubator tenants can tap into modest
<br /> i seemingly incongruent technologies."funds from a network of small investors.
<br /> One tenant is developing underwater' The four tenants of the Elk River project
<br /> { video technology,while another makes have access to a local investment club
<br /> <y - a-device that makes walking up stairs made up of 21 members each of whom
<br /> • •easier. ;_. chipped an $5,000, hardly an eye-
<br /> Paul Steinman,Elk River's director popping amount, but significant for '.
<br /> economic development and operator of start-ups.-" . .., • - -::,;,.
<br /> the incubator,says its entrepreneurs' Genesis tenants are eligible.to
<br /> 1 cohabitation can nonetheless be a re- receive funding from the Anoka Sher-
<br /> source when done right.Watermark,an bume County Capital Fund,the state's
<br /> - Elk River tenant,provided engineering Urban Initiative Fund and from its net--
<br /> II help to its incubator neighbor SolarAt- work of angel investors. •
<br /> tic,which was developing an electrical "The idea of incubators is still loosey-
<br /> ' unit that measures temperature andgoosey,"said CDC Associate's Camp-
<br /> humidity in attics : bell.."But it's compelling when you
<br /> Steinman said he even has skeptics at think of it conceptually.The acid test
<br /> the city's Economic Development has to do with the management,the
<br /> Authority(EDA),which has spent about quality of services"available to the start-
<br /> $100.000 on the project."They are ask- ups.
<br /> 0 ing me all the time about the incuba-
<br /> tor,"he said."They tell me,'Don't give
<br /> •
<br /> - k There were 587 business incubation programs<i
<br /> 6,,,,:,listed in the National Business Incubator-
<br /> `Association's'database as of spring 1998.In its
<br /> ' research on North American incubators,the
<br /> ` association found that: -
<br /> Incubators have treated ' ' > 16 percent of all facilities are
<br /> nearly 19,000 companies still in Joint efforts among government,
<br /> •'•business,and more than 245,000 nonprofit agencies or private devel-
<br /> jobs. . opers.
<br /> > 8 percent of at facilities are
<br /> > Most Incubator facilities(75 run by investment groups or real
<br /> percent)occupy less than 40,000 estate development partnerships. -
<br /> 'square feet the average Is 36,657
<br /> square feet. > 5 percent of all facilities are
<br /> sponsored by a variety of non-
<br /> >- Incubators served an aver- conventional sources such as arts
<br /> age of 20 entrepreneurial firms organizations,American Indian tribal
<br /> each in 1997. governments,church groups,Cham-
<br /> bers of commerce and port dis-
<br /> > 51 percent of all facifties are tricts.
<br /> sponsored by government and non- -
<br /> j profit organizations,and are primar- > About a quarter of at Incu-
<br /> ily for economic development. bators are dedicated to technology,
<br /> and nearlyftalf,43 percent,are for
<br /> >.27 percent of at facilities are mixed use.
<br /> affiliated with universities and col-
<br /> leges.
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