Agenda - Economic Development Authority - 01/25/2018

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Government -Owned Business Incubators Chippewa Valley Innovation Center j The Chippewa Valley Innovation Center (CVIC) is located in Eau Claire, Wisconsin. It formed a collaborative effort between the Chippewa and Eau Claire counties, and the City of Eau Claire thirty years ago in 1986. It was formed in response to a growing need within the Chippewa Valley for low cost, appropriately sized space for businesses in the early stages of development. Today, the facility continues to serve as an incubation center for manufacturing and service -related businesses who are in the transitional stages of going from a new business to an established business. In terms of organization and management, the Chippewa Valley Innovation Center is a 501(c)3 organization. Donations to the CVIC are tax-deductible to the full extent of the law. The facility is managed by the Eau Claire Area Economic Development Corporation and additionally has a board of 8 directors. The Chippewa Valley Innovation Center encourages new and emerging entrepreneurial businesses to utilize local community resources. Features and benefits of the CVIC include warehouse/manufacturing space, managerial support, technical assistance, and access to financial programs. Businesses apply to become a tenant to the CVIC, and applications are reviewed in the order that they come in. Decisions are based on eligibility and available space in the incubation center. Candidates should be a light manufacturing, value- added, or service related business and a business plan is required within 90 of occupancy (business plan assistance is available). Once accepted, tenants are able to rent out the amount of manufacturing and/or office space they need for up to three years. Each year, rent is increased slightly until tenants are paying market values for their space. During a business's time in the CVIC, they have access to programs and assistance to help your company transition from a new start-up to an established business. Tenants graduate from CVIC when they outgrow their space or after 3 years - whichever happens first. Because of the incremental increases in rent, at the end of the three years, graduates are able to relocate and pay market price for their new spaces without experiencing a significant increase in overhead costs. In addition to physical space, businesses have access to local economic development agencies including UW-Eau Claire Center Business Solutions, UW-Stout Discover Center, Chippewa Valley Technical College, and Northwest Wisconsin Manufacturing Outreach Center (NWMOC). This facility has an emphasis on manufacturing centered companies and homegrown local businesses. On the center's website, there are several success stories of companies that have grown from the innovation center and established themselves in the community. Currently, over 15 businesses have been jumpstarted by the center. A study of the businesses that have graduated from this incubator was performed, determining there has been $28 million being spent from that business in buying real estate, equipment, etc. Additionally, there has been an annual salary of about $18 million. Advance Laser Machining, is a highlighted success story. It went from one employee in 1996 to 120 employees with over 20 million in sales today. Business Incubators and the City of Ramsey 8