A downtown space devoted to building upon shared ideas and information has been open for less than a year and has "exceeded all expectations," but could also use a financial boost from the city, says its founder.
In a presentation to city building committee members this week at Barrie City Hall, Sandbox Centre for Shared Entrepreneurship and Innovation founder Craig Busch asked for $300,000 in municipal funding to help cover cost overrunns following renovations at the Maple Avenue site.
The regional business hub, located on the second floor of the Barrie Transit Terminal, opened its doors in April 2019.
Busch said 93 per cent of Sandbox's operational costs — which is around a half-million dollars — are covered by the private sector, with the city covering the remainder, in addition to providing the recently renovated 8,200-square-foot location, plus a 1,000-sq.-ft. patio, rent-free to the Sandbox group.
The capital investment was $1.8 million to fix up and outfit the city-owned building, with the municipality and the private sector each providing $500,000. The Sandbox is covering another $500,000 through a loan guaranteed by Busch Systems, leaving a $300,000 shortfall on the construction, which is currently being funded by Busch Systems.
"We've made our commitment to the Sandbox; we're behind it," said Busch, adding the facility also ticks off several of council's strategic priorities, such as improving the link behind the waterfront and downtown.
"We're created something world class here and I think we've exceeded all expectations," he added. "But we had to do the job and we had to do it right."
Mayor Jeff Lehman asked how much of the money went into the terminal building.
Busch said renovations were "massive," which led to the cost overruns. He estimated around $1.6 million was spent on the building and the other $200,000 went toward equipment.
However, Busch said the $300,000 shortfall could "seriously undermine" what's expected to be a $5.5-million project over the next few years. He asked the city to cover the gap and "send a clear message to the business community."
In 2016, the city became a founding partner alongside the Busch Group of Companies in the Sandbox Centre, which was launched by 12 founding organizations.
The Sandbox, which Busch called is "world-class facility," is now described Ontario’s first private sector-led innovation hub, providing businesses in central Ontario with professional development, peer support and growth opportunities.
"The Sandbox is a powerful tool for Invest Barrie," Busch said. "It shows Barrie is serious about business. When we created it, we realized it could not just be OK and get the results we needed.
"You can't create culture and energy out of a cave or a shack," he added. "It has to be a place that has that energy."
Busch outlined some of the work that has been involved and some of the people who have visited the Sandbox. He also shared "two important facts" with council members.
"Economic growth pays for everything, and the old ways of getting businesses to relocate no longer works," he said. "Branch plants and call centres, they don't provide the meaningful, high-paying jobs that we're looking for with the businesses that actually make a contribution socially, (and through) community involvement and charities.
"What we're looking for is businesses that punch above their weight," Busch added.
Lehman says many companies have witnessed "eye-popping" results through Sandbox programming, citing revenue growth on average to be around 47 per cent.
"That's an enormous amount," the mayor said. "For some companies, that will translate into siginificant hiring. For others, it's probably less due to their product or service."
The funding request will be sent to city staff, with the economic development department to report back with more information.
Sandbox Centre managing director Danielle Lazarevska said they've had almost 7,000 people through the space, more than 90 peer groups bringing in ideas, as well as 3,000 women who have participated in programming.
"It's been an exciting first 10 months," Lazarevska the committee. "One of the things that's really exciting is we've exceeded our expectations in terms of the possibilities."
Among those to step into the Maple Avenue centre have been chief economists and banking leaders, as well as federal Green Party leader Elizabeth May in July 2019 during the election campaign and an unannounced visit from Premier Doug Ford two months prior. They've also hosted panels on issues such as human trafficking and had roundtable discussions on mental health and addiction.
The facility's "guiding star" is to drive economic growth, she added.
"We want to attract the best of the best to our region," said Lazarevska, who added the goal is to create a "northern innovation supercluster."
With regional innovation centres in Newmarket and Sudbury, she said "there's a glaring gap in our ecosystem."
The Sandbox also strives to attract investment to the region, she said, by working with partners such as Georgian College.
They've applied for innovation grant which could bring $5 million to "help accelerate our companies and propel their growth," said Lazarevska, adding a big part of that includes narrowing the gender gap.
