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 Incubator Site Acquisition Incubator Construction Incubator Equipment RLFWater Quality Demonstration Project Total Federal EDA Grant 195,000895,50025,000330,00001,445,500 WI CBED Grant 65,00075,000000140,000 WI DNR Non-Point Pollution Abatement Program 0000100,000 DCEDC0 16,000000 County of Door 040,000025,0000 65,000 City of Sturgeon Bay 020,0000 0 40,000 Sturgeon Bay Utilities 013,000010,0000 23,000 Peterson Builders, Inc. 50,0000000 Local Banks000 15,0000 Other Private Donations 0025,00000 Total310,0001,059,50050,000400,000100,000 1,919,500

5. Unique Aspects of Funding 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

6. Unique Aspects of Funding 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

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. DCBDC 2005 Financials ESTIMATED ACTUALS REVENUE Lease Revenue96,364 Occupancy Revenue44,675 Miscellaneous Revenue200 TOTAL REVENUE141,239 EXPENSE Personnel Expense38,490 Administrative Expense7,909 Occupancy Expense58,060 Depreciation Expense48,367 Projects Expense5,600 TOTAL EXPENSE158,426 EXCESS REVENUE OVER EXPENSE(17,187) Without Depreciation+31,180