Iowa City gets grant to study biz incubator

IOWA CITY - The city has received a $60,000 federal grant to conduct a feasibility study of a proposed business incubation program, Sen. Chuck Grassley announced Wednesday.

The money comes from the U.S. Department of Commerce's Economic Development Administration.

"Iowa City has worked hard to get its economy back on track after last year's flooding," Grassley said in a statement. "These funds should help determine if a business incubator will create new jobs for the Iowa City economy."

Below is the text from a short story I wrote last December about the incubator:

IOWA CITY -- The city wants to create a business incubation program unlike any other in the area.

It would aid startup businesses in the "creative technology" fields, like software development or an Internet-based business, said Wendy Ford, Iowa City's economic development coordinator.

In addition to office space at reduced rents, the city would provide tenants with some free professional services, like legal, accounting, marketing and maybe even engineering services.

That would set the program apart from the University of Iowa's business incubator and startup business programs, Ford said. City and UI officials already have discussed the idea and will continue to work together, she said.

"We wanted to explore the viability of creating a special place for new businesses with developing technology to ... create new jobs," she said.

Another feature: Tenants would be scattered in a few spaces throughout downtown.

"We think this is a very interesting and unique niche," City Manager Michael Lombardo said.

City officials plan to conduct a study to see if it is viable.