BRAC PROJECT

The East Valley/Inland Valley region of California was especially hard hit by the recession and the closure of Norton Air Force Base which resulted in the loss of 10,000 jobs. A new regional development agency (IVDA) was formed to capitalize on the region's assets and to develop plans for the re-use of the Norton facilities as an industrial and employment center. The IVDA, along with the City of Highland and the East Valley Economic Development Partnership, commissioned Sibley International to develop a Business Plan for a Regional Small Business Incubator, including an analysis of the business, civic, educational and human resources of the East/Inland Valley community and the potential for their involvement with, and support of, the small business incubator. The Business Plan analyzed three major areas: the marketing, financing, and management of the incubator.

Part 1: the Market Study reviewed the existing incubator industry literature as well as the East/Inland Valley regional market. This included the surveying of existing service providers, the local economic environment, and potential business linkages and expansion opportunities. It also illustrated the characteristics of the local small business sector. The second part of the Market Study focused on the real estate for the incubator, costing the options of new construction versus rehab, delineating the criteria necessary for a successful incubator, surveying local sites, and recommending site selection (an "incubator without walls," with the hub located at Norton Air Force Base).

Part 2: the Financial Plan included a complete financial analysis of the project, including breakeven analysis for the first three years of the project, funding of the incubator, and detailed cash flow projections.

Part 3: the Management Plan included comprehensive management plans for the business incubator, including the planned Small Business Support Center (SBSC) located within the incubator. It delineated incubator features, functions, and fee schedule, described in detail the personnel needed to manage and operate the incubator, and investigated possible linkages with other resources in the East/Inland Valley community.

The Regional Small Business Incubator was successfully implemented, using the Sibley team's recommendations. Just eight months after opening, the SBSC-business incubator at the former Norton Air Force Base was home to 16 businesses employing 60 people.