Wisconsin Business Incubation Association Annual Conference

1. Wisconsin Business Incubation Association Annual Conference Financial Tools for Creating and Sustaining Entrepreneurship Bill Chaudoir, Executive Director

2. Case Study - Door County Business Development Center Timeline • 1991……Feasibility Study • 1994……Facility Design/Program Development • Leased 12,000 sq. ft. facility • Started Incubator • 1995-6 …Funding Secured: • Federal Economic Development Administration • Wisconsin CBED Grant • Wisconsin DNR – Storm Water Grant • Local Public and Private Funding • Purchased 12,000 sq. ft. facility on 5 acres • 1996……Construction started on 20,000 sq. ft. addition • 1997……Occupied new facility • 1998……Construction on unfinished space • Achieved 100% occupancy

3. Incubator Facilities The Door County Business Development Center accommodates a number of businesses in the 32,000 sq. ft. facility. The Center offers: • 3,000 sq. ft. of leasable Class A office space • average size is 150 sq. ft. • 22,000 sq. ft. of leasable light industrial space • ranging in size from 200 to 5,000 sq. ft. • 7,000 sq. ft. of common/joint use area • available to all tenants

4. Funding - Source and Use

5. EDA Grant - $2 Million Qualified due to business closure 600 displaced workers Economic Development Adjustment Plan Funded Three Projects Incubator RLF Export Assistance Program Wisconsin CBED Grant 2 Construction/Development Grants Year 1 – Property Acquisition Year 2 – Construction City of Sturgeon Bay Cash Match In-kind Contribution – landscaping County of Door Cash Match In-kind Contribution – site grading/excavation Unique Aspects of Funding

6. Sturgeon Bay Utilities Cash Match In-kind Contribution – electric hookup Wisconsin Public Service Corporation In-kind Contribution – gas hookup Wisconsin DNR – Storm Water Grant Demonstrate methods to reduce storm water pollution Depressed parking lots (paving) Oil/Grit Separator Storm Septer Private Match Bank Contribution to RLF Previous Owner – partial donation of property Equipment Donations Unique Aspects of Funding

7. Additional Unique Funding Techniques • Leave portions of facility unfinished • Unfinished area is less expensive • More costly to do addition later • Flexibility – finish when you know market demand • Flexibility – finish to address tenant needs • Secure Long Term Lease – pays for build out •  Minimal wall divisions • Provides flexibility to meet tenant needs • Tenant can cost share wall construction • Wall divisions may not be necessary • HVAC System Design • Lighting System Design

8. Operating Sustainability Techniques • Triple Net Lease Rate • Occupancy costs are shared •  Equipment Usage Fees •  Service Fees •  Training/Workshop Fees

9. ESTIMATED ACTUALS REVENUE Lease Revenue 96,364 Occupancy Revenue 44,675 Miscellaneous Revenue 200 TOTAL REVENUE 141,239 EXPENSE Personnel Expense 38,490 Administrative Expense 7,909 Occupancy Expense 58,060 Depreciation Expense 48,367 Projects Expense 5,600 TOTAL EXPENSE 158,426 EXCESS REVENUE OVER EXPENSE (17,187) Without Depreciation +31,180 DCBDC 2005 Financials