Wisconsin Business Incubation Association Annual Conference

Financial Tools for Creating and Sustaining Entrepreneurship

Bill Chaudoir, Executive Director

Case Study - Door County Business Development Center

Timeline  1991……Feasibility Study 1994……Facility Design/Program Development

– Leased 12,000 sq. ft. facility– Started Incubator

1995-6 …Funding Secured:– Federal Economic Development Administration– Wisconsin CBED Grant– Wisconsin DNR – Storm Water Grant– Local Public and Private Funding– Purchased 12,000 sq. ft. facility on 5 acres

1996……Construction started on 20,000 sq. ft. addition 1997……Occupied new facility 1998……Construction on unfinished space

– Achieved 100% occupancy

Incubator Facilities

The Door County Business Development Center accommodates a number of businesses in the 32,000 sq. ft. facility.

The Center offers: 3,000 sq. ft. of leasable Class A office space

– average size is 150 sq. ft. 22,000 sq. ft. of leasable light industrial space

– ranging in size from 200 to 5,000 sq. ft. 7,000 sq. ft. of common/joint use area

– available to all tenants

Funding - Source and UseIncubator

Site Acquisition

Incubator Construction

Incubator Equipment

RLF Water Quality Demonstration

Project

Total

Federal EDA Grant

195,000 895,500 25,000 330,000 0 1,445,500

WI CBED Grant

65,000 75,000 0 0 0 140,000

WI DNR Non-Point

Pollution Abatement

Program

0 0 0 0 100,000 100,000

DCEDC 0 16,000 0 0 0 16,000

County of Door

0 40,000 0 25,000 0 65,000

City of Sturgeon Bay

0 20,000 0 20,000 0 40,000

Sturgeon Bay Utilities

0 13,000 0 10,000 0 23,000

Peterson Builders, Inc.

50,000 0 0 0 0 50,000

Local Banks 0 0 0 15,000 0 15,000

Other Private Donations

0 0 25,000 0 0 25,000

Total 310,000 1,059,500 50,000 400,000 100,000 1,919,500

Unique Aspects of Funding

EDA Grant - $2 Million– Qualified due to business closure

• 600 displaced workers– Economic Development Adjustment Plan– Funded Three Projects

• Incubator• RLF • Export Assistance Program

Wisconsin CBED Grant – 2 Construction/Development Grants– Year 1 – Property Acquisition– Year 2 – Construction

City of Sturgeon Bay– Cash Match– In-kind Contribution – landscaping

County of Door– Cash Match– In-kind Contribution – site grading/excavation

Unique Aspects of Funding

Sturgeon Bay Utilities– Cash Match– In-kind Contribution – electric hookup

Wisconsin Public Service Corporation– In-kind Contribution – gas hookup

Wisconsin DNR – Storm Water Grant– Demonstrate methods to reduce storm water pollution– Depressed parking lots (paving)– Oil/Grit Separator– Storm Septer

Private Match– Bank Contribution to RLF– Previous Owner – partial donation of property– Equipment Donations

Additional Unique Funding Techniques

Leave portions of facility unfinished– Unfinished area is less expensive– More costly to do addition later– Flexibility – finish when you know market demand– Flexibility – finish to address tenant needs– Secure Long Term Lease – pays for build out

 Minimal wall divisions– Provides flexibility to meet tenant needs– Tenant can cost share wall construction– Wall divisions may not be necessary

HVAC System Design Lighting System Design

Operating Sustainability Techniques

Triple Net Lease Rate– Occupancy costs are shared

 Equipment Usage Fees  Service Fees  Training/Workshop Fees

DCBDC 2005 Financials 

  ESTIMATED ACTUALS

REVENUE  

Lease Revenue 96,364

Occupancy Revenue 44,675

Miscellaneous Revenue 200

TOTAL REVENUE 141,239

   

EXPENSE  

Personnel Expense 38,490

Administrative Expense 7,909

Occupancy Expense 58,060

Depreciation Expense 48,367

Projects Expense 5,600

TOTAL EXPENSE 158,426

   

EXCESS REVENUE OVER EXPENSE (17,187)

Without Depreciation +31,180