Mentor Technology Greenhouse Expects Its First Start-Up Business

It took more than a year, but it's finally happening.

Mentor Technology Greenhouse, a business accelerator for start-up companies, officially opened in September 2010. The problem is that the accelerator at 7200 Center Street has remained empty for more than a year, though Mentor city officials have received numerous inquiries from entrepreneurs about the program.

But the Mentor Technology Greehouse is expected to welcome its first tenant, an early-stage medical device business.

"In terms of our economic development strategy, that (Mentor Technology Greenhouse) has probably been our most problematic element,” said Ron Traub, Mentor’s director of economic and community development. “We’ve worked on this and we have invested in marketing the program. This (company) will be the first (tenant).”

Dynamic Surgical Devices LLC, owned by Hank Schenk Jr., is developing a surgical router for hip replacement surgeries. The business has applied to Mentor Technology Greenhouse's program for space and services.

“A prototype has been developed, which needs additional fine tuning,” said Traub. “Hank is eager to expand his business design and engineering capabilities and work with Lake Erie College’s Center for Entrepreneurship for marketing and business development guidance.”

The Mentor Technology Greenhouse formed as a cooperative economic development program by the city of Mentor, CADVenture Inc., Lake Erie College Center for Entrepreneurship and the Mentor Economic Assistance Corporation. Promising start-ups and early-stage businesses are selected through an application process. The accelerator provides a range of tools and services to help businesses to develop their prototypes into commercially viable products.

In addition to office space, companies are provided access to engineering software, technical training, entrepreneurial coaching and business plan development at a subsidized cost. Businesses that successfully develop their products to a pre-production stage will also receive access to short and long-term capitalization, financing, and other incentive programs offered through the city of Mentor and partner agencies.

Traub has recommended that a $2,500 Mentor Economic Development grant be approved to support the operations of Dynamic Surgical Devices. The grant will be paid to the Mentor Economic Assistance Corporation, which is the fiscal agent for the Greenhouse program.  The grant proposal needs approval from Mentor City Council, which meets Monday.

City officials also are recommending that Mentor City Council approve a $11,200 grant for Kaeper Machine Inc., which is expanding its business operations.

“They have developed a niche over the past 10 years as a machine gun spare parts specialist with the U.S. military,” said Traub. “In 2001, Kaeper was awarded a $10,000 (Defense Department) contract. In 2001, the contract had increased to $20 million.”

Kaeper Machine started manufacturing operations in 1998 at 8680 Twinbrook Road. The company is purchasing a 57,600-square-foot building at 7770 Metric Drive and plans to invest $2.5 million to renovate its new location and purchase machinery and equipment.

Finally, Mentor city officials are also recommending that Mentor City Council approve a $32,294 grant for Progressive Insurance’s call center at the former Caterpillar plant on Tyler Boulevard.

“The company is proposing to extend (its) lease for an additional five years, which will result in retention of a $7.5 million payroll and the creation of approximately $2.4 million in new payroll by year five,” said Traub.