Clallam Business Incubator off the chopping block — for now

PORT ANGELES — The Clallam Business Incubator has stepped back from the brink.

At a special meeting Monday, the board of the publicly funded, financially plagued nonprofit organization was faced with agenda options of “go/no go” and, “Should it be closed down?”

The board, which last November spoke of the Incubator’s potential bankruptcy, instead took a time out.

But now the board may wait until this summer to decide whether the Incubator should live or die, said board member Jim Jones, Clallam County administrator.

Members decided to wait to hear from residents — including business owners and government and community leaders — on whether the Incubator should be part of an overall strategy for countywide economic development that will be hashed out at two upcoming get-togethers.

Also to be considered is whether the public should help more in paying for its survival.

Times and locations for the meetings haven’t been set, but dates have.

The community-at-large will have its say at a “roundtable” on Thursday, April 1, said board member Kent Myers, Port Angeles city manager.

Then, on Friday, May 7, about two dozen community, business and government leaders, including representatives from the Lower Elwha and Jamestown S’Klallam tribes, will be asked to attend an economic summit closed to the public.

Myers said making the summit a closed event will produce a more productive result.

“We want to roll up our sleeves and have an honest discussion,” Myers said.

‘Action plan’

An “action plan” will be developed after the meetings that will be available to the public, he added.

At both meetings, he said, “there will be a lot of discussion about the Incubator and its role in moving the economy forward.”

It’s too early to talk about dissolving the Incubator, Jones suggested.

What needs to happen is establishment of “a consortium of people that would pump in money,” such as Peninsula College, tribal governments, city governments, Clallam County Public Utility District and the like, Jones said after the meeting.

“I would hate to see us get pressured into making a decision before we get that whole discussion with the greater community,” he said.

To be viable, the Incubator needs to be assured funding of $120,000 a year for three years, based on three-quarters of the Incubator being occupied with paying renters, Jones said.

The annual amount would cover the salary for a new executive director, he added.

The Clallam County Economic Development Council is serving in a caretaker role for the incubator.

Jim Haguewood’s $5,000-a-month contract was eliminated in September to save money.

Opportunity Fund

The organization has at least Clallam County helping it cover $2,900 in monthly expenditures from the county Opportunity Fund, Jones said.

The Incubator will owe $48,193 by July 1 on a $750,000 federal Commerce Department loan and has $21,400 in the bank, Jones said after the meeting.

Myers said money is available to help the Incubator survive from $5 million from the Tse-whit-zen settlement over the failed graving yard.

The port has not committed funding to keep the Incubator afloat, said board member Jeff Robb, Port of Port Angeles executive director.

But financial support solely from the county, port and city would not be enough to keep the Incubator going, Jones said.

The Incubator has its headquarters plus offices and rental space for budding entrepreneurs at the Lincoln Center, 905 W. Ninth St.

There, the Incubator provides “access to high-speed Internet and telecommunications fiber networks, shared secretarial services, fax, copy machine and conference facilities,” according to its Web site, www.clallambi.org

It also helps identify “service partners” for “legal services, business plan development, banking and accounting services, marketing services, management assistance services, consulting services, capital and venture financing” and “other professional services as needed.”

The Incubator has helped 16 aspiring entrepreneurs get started since it opened three years ago.

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Staff writer Paul Gottlieb can be reached at 360-417-3536 or at paul.gottlieb@peninsuladailynews.com.

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