Kentucky Highlands, Congressman Rogers break ground on first LEED-certified business incubator in state
Friday January 15, 2010
More than 120 jobs, $6 million in private investment projected in 5 years
LONDON - Kentucky Highlands Investment Corporation held a groundbreaking ceremony today in London for its Business Innovation and Growth Center, which will be the first LEED-certified business accelerator in the state.
"We are one step closer to implementing a project that will provide support for new and small businesses to grow and prosper in Southern Kentucky, " said KHIC President & CEO Jerry Rickett. "In turn, those results will build a more entrepreneurial economy, increase jobs and attract private investment."
The Business Innovation and Growth Center, which is being built on a one-acre site adjacent to Kentucky Highlands' offices, will include 9,600 square feet of product development, office and laboratory space for area entrepreneurs.
KHIC projects the incubator will assist 16 businesses, help create 127 new jobs and generate $6 million in private investment during the first five years.
"I am pleased to see that KHIC is yet again helping to move our region forward and create jobs for southern and eastern Kentucky," said Congressman Hal Rogers. "Today's event marks yet another accomplishment where our community will be giving cutting-edge resources for our small businesses so that we can continue down the path of economic development. Supporting our small businesses remains a top priority so that we can maximize our potential and bring more opportunities to our hard working families."
The incubator, which should be in operation by August, will assist entrepreneurs of startup companies by offering programs and training to help them execute their business opportunities. It will help companies move through the business development process toward self-sustainability while building a more entrepreneurial community in the region. The development of a company typically will take three years, although tenants may have an option to extend to a fourth year.
"Most jobs in this country are created by small businesses," said Jim Carroll, director of the BIG Center. "And, the jobs least likely to move to another state or country are the ones that are homegrown. This program will stimulate innovation and creativity to motivate young entrepreneurs and experienced business leaders to establish companies and create jobs here in Kentucky."
The facility will be constructed to the Leadership in Energy and Environmental Design (LEED) Silver Standard. Environmentally friendly features will include a geo-thermal HVAC system, structural insulated panels, passive solar design, insulated concrete form walls, continuous slab concrete floors on both levels, double-hung transom windows, energy efficient metal roofing and numerous other features.
Funding for the new incubator includes a $1.08 million grant from the federal Economic Development Administration; a $300,000 grant from the Appalachian Regional Commission, which comes through the Governor's Department for Local Government; a $500,000 loan from the Jackson Energy Cooperative in partnership with the USDA - Rural Development Kentucky State Office; and a $100,000 loan from the Kentucky Department of Commercialization and Innovation.
The new project will expand KHIC's current business incubator, which can house three companies. Four of the businesses in the current incubator have graduated and employ more than 30 people in the area. In addition, entrepreneurial training sessions have drawn more than 500 people over the last three years.
"I've seen first-hand the invaluable resources Kentucky Highlands provides to help entrepreneurs start and expand their businesses," said Carlos "Doc" Carpenter, a Manchester native and president of Wazoo Sports, which began in KHIC's current incubator. "This new facility will be even more beneficial in helping homegrown entrepreneurs provide job opportunities to future generations of Southeastern Kentuckians."
