Surprise is adding a big “spark” to new business development in the city.
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Surprise is adding a big “spark” to new business development in the city.
The city council on Tuesday voted to approve the move of the AZ Techcelerator business incubator to a new location on the burgeoning Elm Street in City Center and rebrand the program as Spark Surprise Business Development Hub.
“We believe that this program is going to have even more of an impact than the first version, especially being in the heart of the city,” said Brian Sandusky, the city’s project manager for the program.
The council agreed on a 10-year lease agreement with the property’s developer for $174,000 a year with an annual 3% escalator.
The new 3,500-square-foot facility will include a conference room for business to meet in, a media podcast room for businesses to use and co-working spaces.
Fees for start-ups and established businesses to use the program haven’t been set yet and will come back to council in the future.
“We think this is important because it really provides a center of gravity in our future downtown,” Jerkovic said. “We intend for it to be a place where any member of the public can pop in and maybe get some tourism information or learn more about the city.”
Economic Development Director Jeanine Jerkovic said it would serve as a “de-facto visitor’s center” in addition to a business startup hub.
Jerkovic and Sandusky provided three work session presentations last May, October and December to prepare the council about its desire to move to downtown.
To help improve the new space to accommodate the rebranded program, about $360,000 that has been earmarked for AZ Techcelerator improvements may be allocated to the new property.
“We’re putting our money where our mouth is,” said Vice Mayor Jack Hastings, who serves the district that includes the City Center. “I know if I was starting a business today, I would have no idea where to start. How many people have an idea and they have no idea what to do with that idea? I’m excited for the possibilities.”
The AZ Techcelerator started in 2010 at its current location at 12425 W. Bell Road, where the old City Hall was located. In its 15 years, the program generated $400 million in economic impact from the 130 companies it helped startup over that time. It also resulted in the creation of more than 500 jobs.
But the aging facility, which was built in the 1980s, has seen better days as it now has a leaky room, bug infestations and other problems. The Economic Development Department plans to vacate the building by June.
Of the businesses still operating from the current location, most of the contracts expire at the end of May. Sandusky said they have already been working with those business to help them transition to a new place.
A multi-department working group is looking at what to do with the existing facility. A decision should be made by the middle to the end of the year, Sandusky said.
A Gallup-Shopify poll last year found 62% of Americans want to start a business but Jerkovic told council that staying up to speed is hard for startups and most entrepreneurship training programs and incubators today are antiquated.
The rebranded program won’t be a home for businesses but will be more of a business and educational support model. City Councilmember Nick Haney described the new program as a “launch pad, not a landing.”
“Who knows? Maybe we’ll have the next big thing come out of this,” Haney said.
Sandusky said he is still working on curriculum that will eventually be tailor-made for businesses of all levels, from start-ups to established ones.
“(Businesses) want that interaction,” Jerkovic said. “They want that curriculum. They want to know how to work with a government. We thought this would just be a tremendous opportunity to help those business in a more visible location.”
City officials want to get students at nearby Ottawa University-Arizona and high school students involved in the program.
City Councilmember Earle Greenberg said it could have another benefit.
“If we give them the tools they need, they will have their businesses based in Surprise and not go somewhere else,” he said.
Mayor Kevin Sartor called the move and rebranding “strategic“ and “forward-thinking.”
Sandusky said his department researched other cities to help formulate strategies for new program. It also used A.I. to help come up with the new name.
“We’ve been working tirelessly on making sure that we get it right,” Sandusky said.
Jason Stone can be reached at jstone@iniusa.org. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.
Jason Stone
Senior News Editor | Surprise
Meet Jason
Jason Stone joined Independent Newsmedia, Inc., USA, in 2019, after a distinguished three decade media career that included stops at the Arizona Republic, iHeart Media/Clear Channel and Beckett Sports Card magazine. He remembers when airports sold newspapers.
Community: He is a big supporter of the Valley's original sports team: The Phoenix Suns.
Education: Northern Arizona University with a BS in broadcast journalism and a minor in sports coaching.
Random Fact: The capital of Nebraska is Lincoln.
Hobbies: Surfing, backgammon and men who aren't afraid to cry.
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