Research Park plans to offer financial incentives to firmsJodi Heckel, The News Gazette CHAMPAIGN - Companies who move into the University of Illinois Research Park could get help in setting up operations through a revolving loan fund aimed at attracting high-tech businesses. And the research park itself could directly provide financial incentives to such companies, under a proposed change in its Services and Management Agreement. The research park's board of managers approved the changes Monday. The UI Board of Trustees must also approve the amendment to the agreement. The amendment to the research park agreement would give park officials the authority to put money directly into companies, such as through cost-sharing of lab space or equipment, said Scott Pickard, manager of EnterpriseWorks, the park's incubator facility. The board of managers also reviewed a proposed incentive program to recruit new companies from outside the area to the research park and to help star-up companies who are "graduating" from the UI's incubation facilities set up a permanent location in the park. The proposed incentive program includes creating a loan program to provide money for companies to furnish offices, outfit lab space and buy equipment. The revolving loan program would be administered by the Champaign County Community Development Corporation. Its board of directors supports the initiative. The Community Development Corp. would set aside $250,000 for companies in the research park, and the proposal calls for matching funds from the state's Department of Commerce adn Economic Opportunity. "We've got some companies here that have got one or two or three labs," Pickard said. "When they get ready to graduate, they need to move into a space with wet chemistry labs. That first step of them being a standalone company, they may have to spend $25,000 to $75,000 to get set up. A good loan program would really help them. "There are a lot of things they get to use here that are shared and they don't have to pay for," he said, nothing that most of the office space is furnished and there is shared lab space and equipment. The loan program would also allow the companies start a working relationship with a local bank, and allow the research park to develop a closer relationship with the state organization, Pickard said. He and other research park officials could also help the Community Development Corp. become more familiar with he high-tech companies. "We know a lot about them. We've already screened them and worked with them quite a bit by virtue of them being here," Pickard said. The proposed incentive program also calls for the research park to help companies take advantage of existing programs of the Department of Commerce and Economic Opportunity for cost sharing on capital expenses, such as office and lab fit-out and equipment, and for obtaining work force development grants to pay for employee training programs. January, 2006 |