A regional program that fosters the development of new businesses has the support of Williamsburg’s Economic Development Authority to make its home in the city.
Director of Economic Development Michele DeWitt announced a plan at the EDA’s meeting Wednesday to relocate the Historic Triangle Regional Incubator — a program that provides office space and assistance to developing businesses in the area — from James City County to the city.
The incubator, which has been rebranded as the Triangle Business Innovation Center, will be located in the Williamsburg Health Evaluation Center at 332 N. Henry St. The building is currently owned by Henry Street Land Company, LLC.
DeWitt said locations in all three municipalities that sponsor TBIC — the City of Williamsburg, and James City and York counties — were considered for the new site, but the Health Evaluation Center stood out. She said the building offers “A+” space, its proximity to downtown Williamsburg could help foster commercial development in that area, and city entrepreneurs were interested in collaborating with TBIC.
Two of those collaborators are current occupants of the building. Frank Ludvik, an entrepreneur and venture capitalist, and Myrl Hairfield, a local entrepreneur, operate businesses out of the Health Evaluation Center. Ludvik Holdings Inc. is leasing the building with an option to purchase.
The EDAs for the three municipalities are leasing the first floor of the building for five years at an initial rate of $42,000 per year, which amounts to $3,500 per month. The rate remains the same in the first and second year, with an option to extend the lease for an additional 36 months as a 3 percent escalator. DeWitt said the cost worked out favorably for TBIC.
“Because [the current occupants] are so interested in synergy, we proposed something that was less than half the market rate rent, and they agreed,” she said.
In addition to the new location, TBIC will have a new manager. The manager’s role is to market and run the incubator, recruit clients and provide technical assistance. Previously, the College of William & Mary filled that role, but DeWitt said the EDA and the Williamsburg Small Business Development Center agreed to combine their management positions into a single role. Under the agreement, the EDA will pay a fee to SBDC, which will pay the salary of the manager.
EDA Chairman Tom Gillman said the success of a business at the new location could be beneficial for the city, while an unsuccessful business could provide the city with valuable lessons.
“We changed location, changed the management team, now we’re in a location where people can walk down the street for a cup of coffee,” he said. “If it doesn’t work this time, we’ll know it wasn’t the location, it’s structural with the incubator.”
The Williamsburg EDA approved the plan, but DeWitt said the move would not be official until all three of the participating municipalities’ EDAs approve. James City and York counties are scheduled to consider the plan this month.
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