Business Consulting Group Gets $35,000 from City

The Kent Regional Business Alliance will keep counseling and providing incubator space for small businesses in Kent thanks to a $35,000 grant approved by .

The KRBA, a non-profit small business consulting firm, asked the city for financial help in May to pay the costs of operating the Martinel Incubator, a 7,500 square foot facility managed by KRBA with spaces available to start-up businesses at lower-than-market rates.

The cost to run the incubator is $4,500 a month, according to a memo to council from Kent Economic Development Director Dan Smith. That cost includes monthly rent of $3,475 paid to the property owner, Harbor Properties. Tenants pay $3,200 in rent monthly.

Council unanimously approved the one-time, $35,000 contribution after hearing from a dozen supporters of the group that included former clients, tenants and members of the KRBA board of directors at Wednesday's committee meeting.

Jack Crews, CEO of the business alliance, described the financial support as a partnership with the city rather than a hand out to the group.

"We have invested a significant amount of money and capital to keep this going," Crews said. "We’re doing this for the community."

The incubator, started in 1991, later became the headquarters of liquid-crystal tech start-up AlphaMicron as it expanded and pushed out other tenants in the Martinel space. The firm eventually moved to Kent State University's Centennial Research Park in 2009, and that move made the space at the Martinel building available again for its intended purpose: helping launch start-up companies.

Crews said they are now working to rebuild the incubator as a proving ground for small businesses. include Anderson Aerospace, a two-man firm which at the Paris Air Show this summer.

"We’re starting to put that back together now," he said. "We have helped put companies into Acorn Alley and other development projects downtown. That all works together when we’re really trying to keep a lot of what we’re putting together here."

The city provides rent-free office space to the KRBA at 211 E. Summit St. in space that normally would be available to small businesses as part of the city's own business incubator. The counseling group pays utility fees for the space.

Smith said the city trades free rent in the space above city hall to the KRBA in exchange for the services they provide to small businesses in the city.

"A few recent clients include the Looking Glass Daycare, , Go2Go Taxi, , Iron Fence Shop (and) the just to name a few," Smith said. "I’m a pretty big proponent of the economic gardening, growing our own."

Kent City Manager Dave Ruller said they waited to bring the KRBA's request for financial assistance to council until December because city administrators wanted to wait and see if any money would be left in the city's 2011 budget to provide support.

"We do think at this point in the contingency fund that we keep we probably could … provide some funding," Ruller told council before they heard from supporters and voted on the request. "I don’t think I can fully fund his request this year. Our finances are such that I’m just not in a position to be able to commit to that."

City administrators recommended providing $25,000 to the KRBA this year. The group had asked for $35,000 this year plus $25,000 for the two following years.

Crews said the group has suffered losses in state and federal support as budgets are tightened on those levels.

Council voted to approve the one-time $35,000 contribution during Wednesday's finance committee. The issue will come back to council for a final vote at December's regular meeting.

"I think it’s an investment worth while for the additional $10,000," Councilwoman Tracy Wallach said.

Council members Wayne Wilson and John Kuhar said they opposed providing the full amount requested but did vote to approve the request.

Kuhar encouraged the KRBA to work with to fundraise and suggested the group also ask for financial support from successful, past tenants — such as AlphaMicron.

"As everybody knows, I don’t like to spend money," Kuhar said. "But I do believe in small business though. I would much rather spend $25,000 than $35,000."