Incubator set to help small businesses
Janesvillle Innovation Center
Size: 22,000 square feet
Opens for business: Jan. 1
Capacity: About 17,600 square feet of manufacturing space, 2,000 square feet of office space and about 2,300 square feet of conference,kitchen and common areas.That’s enough space for 40 to 50 people in about nine offices and four production bays with loading docks, although those spaces would be flexible. Each space has its own entrance.
Rent: From $225 to $425 a month.
Dates of note: Ribbon cutting, 4 p.m.Thursday, Dec. 20. Host of Business after Five on Thursday, Jan. 17.
Still needed: Used office furniture
For more information: Call Vic Grassman, the city’s director of economic development, at 608-755-3181 or email him at grassmanv@ci.Janesville.wi.us .
Photo
The Janesville Innovation Center, located in a south side industrial park, is designed to be a place where small, start-up businesses can be helped to outgrow their surroundings.
Photo
The new Janesville Innovation Center on the city's south side is divided into a variety of different sized office and production type spaces. The facility is designed for flexibility and to promote the growth of many different types of enterprises.
Photo
Businesses that locate in the new Janesville Innovation Center will each have a unique address and their own entrance. They will also have access to some common amenities that they may not be able to afford in different circumstances.
JANESVILLE — Biotech company Virent, now thriving in a 72,000-square-foot facility, got its start in a 600-square-foot cubicle at a Madison business incubator.
NeuWave Medical started with office space in the same Madison incubator with a handful of engineers. It, too, has moved out and employs about 35.
The people who started Sologear, a company that makes ethanol-based fuel for grilling, started in the Madison incubator, as well, and grew into a space of 30,000 square feet. The company later sold the technology to BIC.
Mike Mathews, president of Economic Growth Advisors of Middleton and Janesville’s consultant for its new incubator, spoke about the Madison success stories when asked about the future of the Janesville Innovation Center , which is set to open in January.
The Janesville building features natural light, a good location and lots of parking on the city’s south side near Interstate 90/39. It provides flexible office and manufacturing space.
Its goal is to help launch new businesses, said Vic Grassman, the city’s director of economic development. Companies that leave incubators tend to stay in the areas where they grew, Mathews said. That’s where the companies typically have their work forces and supplies.
The Janesville center at 2949 Venture Drive includes both manufacturing and office space. Outside of Madison, Janesville is the only incubator in the area to have both, Grassman said.
At capacity, the building could hold between 40 to 50 people and 13 to 14 companies, Mathews estimated.
Tenants would be companies interested in expanding.
Mathews and Grassman are heartened by having gotten nine inquiries and five prospects even though the city has not yet marketed the building.
“That’s a good indication there’s really some things happening,” Mathews said. “People are working out of their homes and are interested in growing their business.
“This kind of space is desired and valued.”
Tenants will pay market rate for space, about $10 to $12 per square foot, with totals ranging from $225 to $425 per month.
Advantages of the center include flexible leases—either side can opt out in 60 days—and flexible space. If a company grows, it can easily move into more space. If it has a setback, it can scale back.
“We understand how small businesses work,” Mathews said. “Not all growth is lineal.”
The space gives a business a professional address and setting.
Technical assistance will also be available. The center’s board includes representatives from area educational institutions. They plan to meet with tenants to help them understand opportunities and challenges and connect them with resources, Mathews said.
The environment is intended to creates synergies, Grassman said. The business tenants might be different from each other but be in similar stages of development and dealing with similar issues.
Some prospective tenants have included a graphics design firm, a construction-related industry, a firm with intellectual property and an online distribution company. One is a Whitewater incuba tor tenant with a musicrelated product trying to get funding to start manuf a c t u r i n g , G r a s s m a n said.
“We don’t have a lot of space here, but we have enough to nurture early stage companies and assist them in their growth,” he said. “Our hope and expectation is they would continue to grow outside the space and, as they leave, make space for another company to come in.
“We feel good about what we’re able to offer,” Grassman said.
Potential tenants could include:
Startups working out of their homes but needing formal business addresses.
Existing companies that don’t have space in their own facilities to test or experiment with a new manufacturing process or production line.
Companies coming to town that do not yet have buildings but need office space.
The city built the center with a $1.2 million federal grant awarded in September 2010. It spent another $850,000 in TIF funds for a total cost of about $2.05 million.
The decision to spend the money was not without some controversy.
Some council members questioned why the incubator wasn’t built in an existing, vacant building. The greenfield site used was included in the original application by the city’s former economic development director and the federal government would not allow the city to change after the city received the grant, Grassman said.
The site also was discovered to have poor soil. The city’s engineers specified a building that could accommodate the soil, Grassman said.
Construction began in April.
The city owns the building and will rent to the nonprofit Janesville Innovation for $1 a year.
The city is responsible for the upkeep, the cost of which will be reimbursed by the nonprofit.
“We’re not here to complete with the private sector,” Grassman said. “We’re here to grow the tenants so they can go lease space in the private sector.”
Board members
The Janesville City Council on Monday, Dec. 10, will consider the following roster for the board of the Janesville Innovation Center: Thomas Eckert, Blackhawk Technical College. Denise Ehlen, UWWhitewater. Ronald Gayhart, UWWhitewater Center for Innovation and Business Development. Carmen Wilson, UWRock County. Brian Morello,Beloit College. John Beckord, Forward Janesville. James Otterstein, Rock County Planning and Development, Bruce Kepner,Alliant Energy. Andrew Janke, Greater Beloit Works. Steve Werner, Murphy Desmond lawyers. Jeffrey Kerston, Baker Tilly accounting and advisory firm. Barry Brandt, Lanair heaters and boilers. Jeffrey Helgesen,Helgesen Development. Mark Membrino, Hendricks Development. Eric Levitt, Janesville city manager. Vic Grassman,Janesville economic development director. AJanesville City Council member to be named.
Dec 7, 2012 at 11:41 a.m.
Suggest removal
Not sure how you came to that conclusion but you see what you want I guess. I was going to explain but why bother.
Dec 4, 2012 at 8:09 p.m.
Suggest removal
Eagle1, that's quite a different claim than you made in your first comment. In any case, the city is not running the center; it will be a non-profit, which I believe is under the umbrella of the UW-Whitewater SBDC, which has partnered with Forward Janesville, a private business group (the "chamber of commerce"), although I don't know all the arrangements. I understand that you would *like* a privately funded model, but given that preference, where do you think the money is going to come from? If it doesn't exist in your ideal form, do you suggest we wring our hands in despair? What efforts have you made to bring such a model to Janesville in place of this one that you feel is structured incorrectly? I would hope with the experience you claim you would have the connections to start making such a dream happen. Until then, however, the rest of us just have to make do with our imperfect tools, because they're the only ones we have.
Dec 3, 2012 at 8:18 p.m.
Suggest removal
There was a business incubator in Janesville that closed several years ago. Thisnis another waste of unlicensed funds, and absolutely competing with commercial property owners who are struggling for tenants. The City would have been better off to offer grants to start ups, and match them with existing spaces while still offering the assistance from mentors. This would have been a win/win for start ups and existing buildings. Not to mention the cost to build and maintain this facility and the infrastructure. There were so many other options and locations that could have been utilized. As a small business owner and commercial property owner, we are struggling enough in this town. If its such a great idea, then why did the other one close? I believe it was underutilized.
Dec 3, 2012 at 4:16 p.m.
Suggest removal
janesvillean, I have lived in many cities over the last 15 years and worked with these types of facilities and with the exception of one in a huge market in southern California they all went bust and were empty within 4 years so I am dealing with reality, as in real experience with this type of facility.
Dec 3, 2012 at 2:06 p.m.
Suggest removal
"poor management which comes with pretty much any publicly funded venture into the private sector" -- this is not actual fact. This is FOX/GOP mythology. The article you are reading contains an example of exactly this type of incubator being quite successful. Additionally, Janesville is one of the most cost-efficient cities in Wisconsin over a period of many decades. More recently, Janesville has -- with the unfortunate exception of the GM plant -- filled up most of its available industrial space, as noted in a recent article, rather than "driving away" such jobs, and has attracted a high-tech industrial facility using public investment. Please try to argue from the real world instead of things you just want to believe.
Dec 3, 2012 at 8:14 a.m.
Suggest removal
I think this concept could work very well within the private market, I am all for helping startups anyone against that has no clue on how the economy works. However to have public money finance is this a bad idea, it then opens the door for preferential treatment and poor management which comes with pretty much any publicly funded venture into the private sector. A better solution would be for private business operate this facility which in the long run could provide valuable business relationships for them. I don't see this reaching the intended goals not just because of public involvement but also they types of businesses that would take advantage of this will need skilled workers in various areas, unfortunately Janesville has a way of driving those people away. I hope I am wrong on this but the track record says I won't be.
Dec 3, 2012 at 7:39 a.m.
Suggest removal
I see Marcia was the only one working Sunday !
Dec 2, 2012 at 7:17 p.m.
Suggest removal
what a waste of money! and to top it off, they want donated office furniture.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.