Business incubator set to open in Chapel Hill

An earlier version of this story said half the money from Orange County’s quarter-cent sales tax increase, which would total $40,000, would go toward the business incubator. Half of the money from the quarter-cent sales tax, which could total $1.25 million, will go toward economic development. The county will give Chapel Hill $40,000 annually from that economic development fund for the business incubator. The Daily Tar Heel apologizes for the error. The story has been changed to reflect these changes.

A business incubator set to open in Chapel Hill this fall could help diversify the town’s business environment, town officials say.

The incubator ­— which will offer low-rent offices for start-up businesses and entrepreneurs — will take over the 3 Birds Marketing office at 321 W. Rosemary St. in mid-November.

On Tuesday, the Orange County Board of Commissioners agreed to use $140,000 from the recently instated quarter-cent sales tax to help Chapel Hill fund the business incubator.

Chapel Hill, which is largely driven by commercial businesses, would benefit from a downtown that doesn’t depend on the University’s schedule, said Chapel Hill Mayor Mark Kleinschmidt.

“Part of our economic development strategy is to attract technology oriented businesses,” he said. “And businesses … that can be created and developed here and will stay long-term.”

“For our continued economic health, diversity is important. More people working downtown gets more people living in the area and helps us create a 12-month downtown.”

Len Wohadlo, one of the founders of 3 Birds, said the company has been expanding and has outgrown its Rosemary Street location.

“In conversations with the city, they indicated they were looking for incubator space, and the space we created on Rosemary is perfect for that.”

In addition to leasing its former offices to the incubator, 3 Birds will give $20,000 to the project each year — $10,000 toward the lease and $10,000 to fund mentoring programs and other projects at the incubator, Wohadlo said.

Orange County Commissioner Earl McKee said the board is excited about the incubator’s future.
Although the incubator will be located in Chapel Hill, he said it will attract businesses and create jobs throughout Orange County.

“We don’t need to differentiate between Hillsborough, Carrboro and other places, as it is irrelevant where the businesses locate,” McKee said. “We all need to work together to attract good business to Orange County in general.”

Half of the money from the quarter-cent sales tax — which could be up to $1.25 million a year — will go towards supporting economic development. The county will give Chapel Hill $40,000 annually from the economic development fund for the business incubator.

Revenue from the sales tax increase also supports education.

“Part of the money was to be dedicated to growing economic development.”

Wohadlo expects the business incubator to be popular because of its inexpensive rent and proximity to other entrepreneurs, who can bounce ideas off one another.

Kleinschmidt said there is already a wait list of people hoping to join the incubator.

And Wohadlo thinks it will have a positive impact on the town’s business environment.

“We’re happy to be involved because we think it will be a great way to start up new businesses,” he said. “Hopefully new businesses will stay in Chapel Hill like we have.”

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