Elgin OKs small business incubator plan
Elgin City Council members' commitment to interest subsidies for a proposed small business incubator will give the project life.
Steve Knisely, owner of THKFL Inc., said he plans to close on the building at 216 Prairie St. Friday, and he hopes to open Imago Studios by mid-March. With funding now lined up, Knisely expects 10 businesses in the visual/digital media and creative services fields to move into the once-vacant building in coming weeks.
City council members approved Knisely's application for the Downtown Business Loan Interest Subsidy Program during Wednesday's council meeting, agreeing to reimburse $37,489 in interest payments over the course of five years.
“Being able to get reimbursement for the interest is the only way this can happen,” Knisely said after the meeting.
Assistant City Manager Rick Kozal said part of the agreement with THKFL Inc. includes a commitment to $54,000 worth of improvements on the building, which has been empty for about five years.
Tonya Hudson, executive director of the Downtown Neighborhood Association, facilitated the project as part of the organization's contract with the city. She said Imago Studios is a perfect combination of the arts and technology industries the DNA is committed to attracting to Elgin.
Like the Elgin Technology Center, Imago Studios will serve as an incubator for startups and small businesses, but the latest project will have paid management to keep the project running smoothly, rather than volunteers.
“It's running as a business, not a nonprofit,” Hudson said.
With renovations, a communal area will be designed to promote a collaborative environment among the various businesses leasing space. Tenants also will have access to shared photo and video studios.
Councilman John Prigge was the only councilman to vote against the agreement. He said the subsidy did not obligate THKFL Inc. to actually open its doors — only fix up the building.
“It's almost $38,000 and no guarantee of any more foot traffic,” Prigge said.