Plans for business incubator under way
Spark East will cost about $200,000 a year to run
The Ann Arbor News
A business incubator is in the works for downtown Ypsilanti.
Organizers hope to offer space for 10 startup high-tech businesses and foster economic development in the struggling area.
The Eastern Washtenaw Leaders Group and Ann Arbor Spark are negotiating with two downtown property owners for a site for the incubator, said David Behen, deputy Washtenaw County administrator. The Leaders Group - which includes various community, business and educational leaders - was formed last year to bring economic development to the eastern side of the county.
Behen said the incubator will be named Spark East, and organizers hope to complete a lease agreement next month and open the incubator in late spring or early summer.
"We're looking at different options right now," Behen said.
Elizabeth Parkinson, director of marketing and public relations with Spark, said entrepreneurs with feasible projects will be selected for the incubator. Spark already operates two business incubators in Ann Arbor.
In addition to subsidized rent, startup businesses would receive support services that include management coaching, business plan preparation, administrative services, connections with executive or technical talent, technical support, business networking, advice on intellectual property and help in finding sources of financing, Parkinson said.
Parkinson said the incubator would cost about $200,000 a year to run. Eastern Michigan University contributed $60,000, and Washtenaw County donated $50,000 for this year, she said. Spark officials are working to raise the rest of the money, she said.
Brian Vosburg, director of the Ypsilanti Downtown Development Authority, said the incubator would attract new businesses to the downtown, and city officials hope they would stay in the city after leaving the incubator. "It would be a phenomenal opportunity for the city," he said.
Diane Keller, president of the Ypsilanti Area Chamber of Commerce, said she believes the incubator would send a strong message that Ypsilanti is committed to redeveloping its downtown. And she said it would help create more economic development opportunities.
The city has been working for several years to redevelop its downtown. The DDA is coming up with a plan to revamp the business area, and several blocks now include free wireless Internet access.
One of the proposed sites for the incubator is the former furniture store at 15 S. Washington St. that has been vacant for about 10 years. City records show that the building is owned by James Pate, who could not be reached for comment.
Khalil E. Hachem can be reached at khachem@annarbornews.com or 734-482-3225.