Eggs aplenty – MonTEC fills up faster than expected

Incubator fills up faster than expected

The Montana Technology Enterprise Center, a business incubator established in Missoula in 2001, is prospering beyond expectations.

By MICK HOLIEN of the Missoulian

MonTEC provides space and services to high-tech and biotechnology companies in an effort to revitalize the regional and state economy, said Dick King of the Missoula Area Economic Development Corp. The center is a nonprofit collaboration between the MAEDC and the University of Montana.

The goal was to have MonTEC’s 32,000-square-foot warehouse on East Broadway – the former home of Sheehan Majestic – 50 percent occupied by the end of 2003 and 70 percent occupied in 2005.

Depending on the type of business and the space requirements, the center can probably hold 25 clients, King said. There are currently 16 businesses in the building.

"We’re quite happy with the response," King said. "We didn’t think we would get to 50 percent occupancy by the end of this year."

"This is really amazing that MonTEC and the university have been able to progress this rapidly in a time of stagnation," added Tony Preite, a retired economic developer who recently opened an office at MonTEC and is contracting with the Montana Economic Developers Association.

MonTEC, which is the largest and most successful business incubator in the state, was set up under a state law allowing it to remain exempt from city and county taxes, a savings of more than $16,000 a year.

After public hearings, MonTEC received the support of the Missoula County Public Schools District, the city and the county.

"I think that’s a real tribute," King said. "… They decided to support it because the companies that come out of here will end up in the community, and that will more than make up for the lost tax base."

The center was established at a cost of $4.6 million, of which $2.2 million came from the U.S. Department of Commerce’s Economic Development Administration.

The University of Montana passed along an $850,000 grant from the Department of Housing and Urban Development and donated

2.5 acres of land.

The balance came of the cost came from a $900,000 loan from First Security Bank, which was guaranteed by MAEDC, and rent paid by Sheehan Majestic for 10 months before MonTEC moved in.

Nationwide, business incubators are set up in numerous ways, ranging from being university owned and operated, to being a nonprofit affiliated with a university, to being an unaffiliated nonprofit, and to being for profit.

Having a relationship with a university – as MonTEC does – is popular with the National Business Incubation Association, which boasts more than 800 members.

And today, future

incubators in cities the size of Missoula are examining MonTEC before moving forward.

"Now, this is going to be the model," said Preite. "It will be emulated. … Currently across the country universities and other entities are in the process of attempting to establish similar business incubators."

King stresses the importance of educating lawmakers of the connection between higher education funding and business development and expansion.

"An incubator like this is only successful when you can link with the research and expertise available in the state university system," he said.

King also is adamant about the need for tax reform in Montana, saying that eliminating the capital gains tax and imposing a sales tax are ways to encourage investors to support new businesses.

"The more we can do to strengthen the region and put ourselves on the map, the better," he said. "There’s reason to be optimistic, but we also need to be realistic."

Predictably, King is encouraged about the bright spots he sees developing in the Montana economy.

"I am humbled every day by what goes on here in Missoula by entrepreneurs," he said. "It makes me very optimistic about the future of the community and the region and, ultimately, Montana. We have an incredible diversity of people willing to give things a try and take the risks involved. They’re the ones putting things on the line, and if we can give them a little help … that’s our mission and that’s why we’re here."

Reporter Mick Holien can be reached at 523-5262 or at [email protected].

On the Net
For more information about the Montana Technology Enterprise Center, visit http://www.montec.org on the Internet.

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Businesses at the Montana Technology Enterprise Center

These Businesses currently occupy space at the Missoula Technology Enterprise Center:

Adventure Connections: Custom Montana vacations. 523-3238 http://www.montanatravel.com employs three

Beverage Choice: Computerized in-store wine reference. 532-3235; http://beveragechoice.com/ employs one

Contineo: Professional information technology organization servicing financial and health-care institutions, 532-3234; http://www.contineotech.com/ employs three

Explore Web Technologies: Web development and media-management service, 532-3242, http://www.explorewebtech.com: employs two.

Mirage Productions: Computer-based marketing video and DVD production, 549-7782: employs two.

Missoula Convention and Visitors Bureau: Convention, tourism and events information, 1-800-526-3465, http://www.missoulacvb.org: employs one.

Purity Systems Inc.: Development of process for removal of heavy metals dissolved in liquids, 532-3237, http://www.puritysystemsinc.com employs five.

Remedy Corp.: Design manufacture and sales of innovative construction-related products, 532-3240: employs four.

SciScan: Development of data analysis software, training and support for biological research, 532-3236, http://www.sciscan.com employs one.

Starbird Associates: Development of computer systems to assist technology companies in getting their products to market. 532-3233. employs two.

Sunbirst Sensors: Manufacture of sensors to remotely detect dissolved chemicals in sea and fresh water, 532-3246, http://www.sunbirstsensors.com employs four.

TALX Corp.: Automation of payroll and human resources processes, 532-3227 http://www.talx.com employs one.

Total Education Solutions in Technology: Educational testing, training, curriculum development and consulting, 532-3241, http://www.testkids.com employs three.

Coming soon: University of Montana chemistry department, which plans to use two labs and up to three offices while its building on campus is remodeled and for a project dealing with the detection of biological agents.

http://missoulian.com/articles/2003/08/26/business/bus01.txt