Profiles of Best Practices (For an Adobe Acrobat version of this profile, click here!) Stimulating Entrepreneurship—Ashland Area Enterprise Center
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Situation
The Ashland area, although growing economically, was in need of a facility
to provide business development opportunities for start-up companies.
Economic Development Strategies
The City of Ashland decided to engage in an economic development intiative
to support entrepreneurship and link with workforce development.
Implementation
The City of Ashland envisioned creating a facility to support start-up
companies that would be a part of the Northwest Wisconsin Multi-use Job
Center Network. The City also expects to link its Ashland Area Enterprise
Center (AAEC) project with other multi-use job centers in communities
in Northern Wisconsin. It is expected that this expanding network will
build regional economic development.
Currently, the City of Ashland’s AAEC project is underway and involves numerous partnerships with the private and public sector. Partners are working to make the vision a reality. A business incubator feasibility study has already provided critical information on project feasibility and direction. Based on this study, a manufacturing facility, vacated by a company expanding to a new facility in the industrial park, has been identified as a prime site for the incubator. The City of Ashland acquired the facility and donated it to the Ashland Area Development Corporation (AADC). This facility is expected to become the site for AAEC’s multi-use job center.
The project’s next phase involves the adaptation of this facility for re-use by the AAEC. Right now, the AADC, with the assistance of Northwest Regional Planning Commission, has developed a $796,000 rehab program for the facility, which involved support from a number of entities—a $530,000 EDA grant, a $200,000 loan, a $50,000 CBED grant, and $16,000 cash. Project completion is scheduled for November of 2002.
Partners
and Leadership
The project required a partnership between the City of Ashland, Xcel Energy,
USDA-Rural Development, Wisconsin Department of Commerce, and AADC. The
City of Ashland provided the facility and the lead for EDA grant funding.
Xcel Energy provided a loan for matching grant funding and AADC provided
leadership, ownership, and management. The Northwest Regional Planning
Commission provided technical support and acceptance into the Northwest
Wisconsin Multi-use Job Center Network.
Outcomes
The current facility has 59,000 square feet of space, of which 30,000
is dedicated to business incubation, 20,000 square feet is dedicated to
anchor tenants, and 9,000 square feet is used for circulation, common
space and operation. The AAEC facility is 99% completed and currently
is 40% occupied. Of the current eleven tenants, eight are incubator (start-up
or expanding) tenants, and three are anchor tenants. The Enterprise Center
has an in-house loan fund for incubator tenants and provides all the necessary
services for business incubation.
Contact
Frank R. Kempf
Ashland Area Development Corp.
422 Third Street West, Suite 101
Ashland, WI 54806
715-682-8344
fkempf@ncis.net
