Germantown officials got a better look at what a possiblebusiness incubator program looks like when they toured the officesand labs Thursday afternoon at Memphis Bioworks Foundation.
The foundation has pitched the idea of the city helping subsidizesome up-and-coming medical device companies that would want to workin a Germantown satellite office.
A business incubator program "is not a place where eggs getwarm," said the foundation's president and executive director, Dr.Steven J. Bares. While Memphis Bioworks has found a 10,000-square-foot building in Germantown where up to five start-up companiescould locate, Bares said, "Incubators are not operationally self-sufficient. The tenants pay a portion of the operation costs."
If the city can find the funding in its budget, the foundation isseeking about $150,000 for the first year and $125,000 annually foranother four years.
The nonprofit agency helps provide biomedical research start-upbusinesses with support services, mentoring and capital planning. Ithas 25 such start-up companies working in a 40,000- square-foot laband office building at 20 S. Dudley in the Medical Center area nearDowntown Memphis. Tenants pay $15 per square foot for office spacethat includes utilities and Internet connection and shared copy areaand boardroom space.
Aldermen Mike Palazzolo, Mark Billingsley and Greg Marcom touredthe facility Thursday, along with Economic and Development ServicesDirector Andy Pouncey and Brian Pecon with the city's EconomicDevelopment Commission.
"This is such uncharted waters for the board," Palazzolo saidduring the tour.
Marcom asked what was the city's return on such a project. "Ifthey're successful, they're going to stay in town. That's thereturn," Bares said. "You are growing real jobs where people want togo."
City officials also met Germantown resident Dean Didato withSynergy Technologies, which is one of the start-up companies atMemphis Bioworks. It specializes in protecting poultry and red meatfrom e-coli and salmonella . Before striking out on his own, Didatoworked for Buckman Laboratories.
Palazzolo said later: "It was worth the trip." But more workneeds to be done to see how other Tennessee cities operate theireconomic development programs. "We've got to balance the risk versusthe return. We're not there yet."
One example city officials can look at is Franklin, just outsideNashville.
With state money, Williamson County built a 15-acre Cool SpringsLife Sciences Center. Its only tenant, BioMimetic Therapeutics, wentfrom a startup company with six employees to one with 100 workers inseven years. The company was given tax breaks and the city isspending money on road construction that leads to the center.
- Lela Garlington: 529-2349
No comments:
Post a Comment