Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 6, 1995 TAG: 9504060062
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
DATELINE: LENGTH: Medium
The General Assembly and Gov. George Allen have budgeted $200,000 for the project as of July 1, about half the amount needed to get it started. Lawmakers penciled the money into the proposed spending plan but could have tagged it for removal as late as Wednesday.
Bud Oakey, lobbyist for the Roanoke Regional Chamber of Commerce and other area chambers, said Sen. Brandon Bell, R-Roanoke, confirmed that the appropriation had survived 11th-hour budget changes.
A business incubator is a commercial building shared by new and emerging businesses in which management and support services such as a receptionist are included in the rent. Virginia is home to five of 500 incubators across the nation; the closest is in Lynchburg.
The $200,000 is about half the amount needed to begin an incubator in Roanoke, officials have said. Proponents likely will seek private donations to cover the rest and begin negotiating soon to lease a building, said Phil Sparks, acting chief of Roanoke's Economic Development Department.
"We would hope to be entering into some sort of lease agreement before the end of the year," he said.
Proponents expect the operation to become self-supporting by the end of its fourth year.
Sparks said chamber officials were selecting 11 or 12 people for a committee to devise detailed plans.
Roanoke business and government leaders have talked about raising the money for an incubator for about eight years. Sparks said the group members have a list of businesses wanting incubator space.
Incubators strive to create an environment in which entrepreneurs can thrive by sharing ideas and enjoying each others' support. After three to five years, businesses are expected to move out and make room for others.
Proponents said businesses that use incubators have a much higher survival rate than those that don't.
by CNB