ITHACA — Cornell University, in collaboration with Ithaca College and Tompkins Cortland Community College, has announced plans for an incubator project in downtown Ithaca that could lead to incentives in the START-UP NY program. The incubator, to be located in the Carey Building at 314 E. State St. near The Commons, seeks to attract entrepreneurs […]
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The incubator, to be located in the Carey Building at 314 E. State St. near The Commons, seeks to attract entrepreneurs to the downtown area, Cornell said in a news release.
The entrepreneurs aren’t required to have an affiliation with any of the schools involved, Cornell added.
The schools want the incubator space to serve as a location where entrepreneurs can find help in their business pursuits.
The space is intended to attract programming and events that target the “local and regional entrepreneurial ecosystem,” Cornell said.
The space will also be the home of incubator-tenant companies that will have access to work space, mentoring, and resources.
The schools are working with the building owner, Travis Hyde Properties, to have the Ithaca incubator open for business in the summer.
Initial plans call for a remodeled second floor and expansion into a new third floor by early 2015, according to the news release.
The total cost of the renovation, furnishing, and future expansion of the Carey Building is estimated at $3.5 million. The colleges secured $1 million of the funding through the state’s consolidated-funding application process.
Travis Hyde Properties is investing the remaining $2.5 million, according to Cornell. The building owner is also supporting the Ithaca incubator through rent abatements.
The partnering higher-education institutions are handing the operational costs involved. The fees that tenants pay will partially offset those costs “over time,” according to Cornell.
The Carey Building will remain on the local property tax rolls, a requirement under the state programs, Cornell said.
Cornell has campuses, programs and relationships that extend around the world, but Ithaca is “our home. We thrive only if it thrives,” David Skorton, president of Cornell University, said in the news release.
“Taking up the governor’s challenge to help spur more economic activity in the region is a natural extension of our long commitment to this community and our land-grant mission, and we are particularly thrilled to be joining Ithaca College and TC3 to make this downtown incubator a reality,” Skorton said.
Companies will be evaluated for tenancy in the Ithaca incubator without regard to organizational affiliation and will be eligible for tax incentives through New York.
Upon graduation from an incubator, companies can take advantage of abundant available commercial and office space downtown, and many will qualify for additional tax incentive support through the new START-UP NY program.
START-UP NY is short for SUNY Tax-free Areas to Revitalize and Transform UPstate NY.
The provides incentives for businesses to relocate, start up, or expand in New York through affiliations with colleges, universities, and community colleges, according the website for START-UP NY. Businesses will have the chance to operate state and local tax free on or near academic campuses and their employees won’t have to pay any state or local personal-income taxes, the website says.
The Ithaca incubator also is part of the Southern Tier Innovation Hot Spot, a regional economic-development plan. The regional economic-development council in December awarded the Southern Tier plan annual funding of $250,000 over three years, according to Cornell.
Contact Reinhardt at ereinhardt@cnybj.com