MONROE - Possible state budget cuts have left a million-dollar business incubator development, being proposed for Monroe by the Southwestern Wisconsin Regional Planning Commission (SWWRPC), hanging in the balance.
The proposal to start a facility for tenants with start-up businesses, the first of its kind for SWWRPC, was first advanced in January at a meeting of the City of Monroe Plan Commission, which gave SWWRPC approval to continue investigating the project.
Ed White, economic development program manager, speaking Monday at the Green County Area Entrepreneurs and Inventors meeting, said the project is now on hold until SWWRPC can adjust its budget."The $1 million investment is now on hold, because we may need the money to pay wages (at SWWRPC)," White said.
With state-shared revenues to counties being cut by about 24 percent in the state's proposed two-year budget, SWWRPC is expecting to receive less this coming year from its member counties - Grant, Green, Iowa, Lafayette and Richland.
Counties are supposed to supply about 25 percent of the commission's budget, but White said sometimes counties don't have the money to contribute.
A county's share of revenue to the SWWRPC was originally calculated based on a percentage of its property value. Now counties are folding that expense into their general tax levy, said White.
The remaining 75 percent of the SWWRPC budget comes from grant administration for the state's Economic Development Administration, incubator rents, and planning services for communities.
SWWRPC will hold a strategic planning session at the end of the month, and will prepare its next budget in July.
Even with a decrease in revenues from counties, the incubator could still be a viable project, depending on the mix of sources for funding and technical support, which range from federal grants to local and regional businesses, governments and schools.
"It can happen in a lot of different ways," White said.
Mayor Bill Ross supports the proposal.
"I think, given the current economic crisis, this is an incredible way to give a huge opportunity to someone hoping to realize a life dream," he said.
White noted that businesses in similar facilities in Platteville and Benton have shown a 75 percent success rate, compared to the national average or 25 percent.
"Give them a good solid base and get their feet under them, they are much more likely to succeed," he added.
Ages of the tenants, with a variety of businesses in those facilities, range between 20 and 70 years old.
Ross asked if a building of at least $250,000 could be built on a lot in the city's north industrial park, which is one criteria implemented in 2008 for the city to sell a lot for a dollar.
White said at least $1 million would be put into building the facility. And the building would be about 20,000 square feet.
White also said an "anchor tenant," a large, long-term business, would be needed to stabilize the financial operation of the facility. The rest of the facility would provide office or manufacturing space for 12 to 14 other start-up businesses.
The proposal to start a facility for tenants with start-up businesses, the first of its kind for SWWRPC, was first advanced in January at a meeting of the City of Monroe Plan Commission, which gave SWWRPC approval to continue investigating the project.
Ed White, economic development program manager, speaking Monday at the Green County Area Entrepreneurs and Inventors meeting, said the project is now on hold until SWWRPC can adjust its budget."The $1 million investment is now on hold, because we may need the money to pay wages (at SWWRPC)," White said.
With state-shared revenues to counties being cut by about 24 percent in the state's proposed two-year budget, SWWRPC is expecting to receive less this coming year from its member counties - Grant, Green, Iowa, Lafayette and Richland.
Counties are supposed to supply about 25 percent of the commission's budget, but White said sometimes counties don't have the money to contribute.
A county's share of revenue to the SWWRPC was originally calculated based on a percentage of its property value. Now counties are folding that expense into their general tax levy, said White.
The remaining 75 percent of the SWWRPC budget comes from grant administration for the state's Economic Development Administration, incubator rents, and planning services for communities.
SWWRPC will hold a strategic planning session at the end of the month, and will prepare its next budget in July.
Even with a decrease in revenues from counties, the incubator could still be a viable project, depending on the mix of sources for funding and technical support, which range from federal grants to local and regional businesses, governments and schools.
"It can happen in a lot of different ways," White said.
Mayor Bill Ross supports the proposal.
"I think, given the current economic crisis, this is an incredible way to give a huge opportunity to someone hoping to realize a life dream," he said.
White noted that businesses in similar facilities in Platteville and Benton have shown a 75 percent success rate, compared to the national average or 25 percent.
"Give them a good solid base and get their feet under them, they are much more likely to succeed," he added.
Ages of the tenants, with a variety of businesses in those facilities, range between 20 and 70 years old.
Ross asked if a building of at least $250,000 could be built on a lot in the city's north industrial park, which is one criteria implemented in 2008 for the city to sell a lot for a dollar.
White said at least $1 million would be put into building the facility. And the building would be about 20,000 square feet.
White also said an "anchor tenant," a large, long-term business, would be needed to stabilize the financial operation of the facility. The rest of the facility would provide office or manufacturing space for 12 to 14 other start-up businesses.