State funding, staff and three more years is formula for technology center’s sustainability

The technology center model for rural areas is flawed, if a center is expected to be self-sustaining in less than five years, with minimal support.

The Brookings Institution report – Charting Maine’s Future – An Action Plan for Promoting Sustainable Prosperity and Quality Places – cited Maine’s “inconsistent economic development stance” and the “absence of significant catalyzing investment” as clear barriers to needed economic growth.

The technology centers cited as most successful show it takes at least five years, and three full-time staff, to manage the facility and recruit/support start-up businesses. The River Valley Technology Center has neither: the facility has been open for only two years, and never has had three full-time staff. We believe with the right support we can achieve the objective – a sustainable commercialization incubator!

The RVTC has accomplished a tremendous amount, even given its slow start. A building, which would have been a vacant eyesore in Rumford, is being salvaged for viable commercial space. There is the potential for more than 60,000 square feet of usable space, much of it available for immediate occupancy, and some available to be customized for tenant needs.

More than 80 people applied for a skills-training program that was offered. Fifty-two entered the program, and 49 graduated with a certificate. Annual base salaries for these graduates increased between $8,000 and $14,000. In addition, 15 completed their associate degrees with scholarships from the Maine Metal Products Association.

It is true many graduates commute to jobs outside the River Valley, but they still live here, and they have improved their skills and have better career prospects. This is a victory.

In exchange for monies to remodel part of the building, the RVTC and the town of Mexico agreed to create/retain 40 jobs for people of low/moderate income. This was a fair trade, and a win-win for both parties. To date, 14 jobs have been created as a result of RVTC and River Valley Growth Council efforts. Yes, there are still 26 job to go. We are committed to making this happen, and no one is planning to leave Mexico holding the bag.

Yes, this will take all of us working toward a great outcome, not fingerpointing and blame-throwing. But we need capable staff able to focus on the work of job-generating business development, not spending all their time searching for funds to keep the doors open.

We need positive cooperation from citizens to attract new people to the area; reports that say smaller populations probably do not have enough local talent to fill the technology center’s capacity for incubator businesses are correct. We will need to look outside the local area; to do this, the River Valley needs to project a positive image and work together to find creative solutions to the problems at hand.

We need to break the mold of “how it has been done in the past,” to find creative solutions that will change the economics of the River Valley and will help the technology center meet its potential.

What if the RVTC had three staffers, and could cover its costs? Could we rent 80 percent of the space, and bring in enough rent to cover the costs? Yes; the technology center can be viable long-term. What if this staff recruited outside Maine for startup businesses? What if we specialized in commercializing businesses rather than incubating them? Would that quicken the job creation/technology center utilization pace? Yes.

What if the RVTC found private investors to help with short-term needs, in exchange for favorable use of the building in the future? What if we had a local business seed fund/support network that invested in commercializing businesses; would this attract out-of-staters? Yes.

What if the state agreed to fund the facility, and the right people take the right recruiting actions for the three additional years we believe are needed to be sustainable? Can we bet on that? Yes. We have learned much about what works, and are ready to take some big steps.

We can also bet on a renovated building being underutilized, if there is not continued support.

Let’s not abandon the technology center concept, but work to create an economic development engine that will succeed in rural areas.

Richard Lovejoy and John Madigan are chairman and vice chairman respectively of the River Valley Technology Center Board of Directors.