The Florida Culinary Accelerator in Immokalee will likely close.
Unless it finds a private operator to take it over.
In a cost-saving move, county commissioners on Tuesday voted to sell off all the building's assets. Namely, its shared kitchen equipment, valued at about $220,000.
The county has operated the accelerator for more than five years since taking over management from a non-profit organization, known as Economic Incubators Inc. in April 2019.
Funded by county, state and federal dollars, the accelerator is designed to "promote economic development and diversify the local economy through the growth and development of food-related businesses."
Since the county took over management, the accelerator has created 46 businesses and 130 jobs. The program has also helped another 85 start-ups, said Cormac Giblin, the county's director of economic development, in an update to commissioners.
Not all of the businesses have survived. Of the ones created at the accelerator, 29 are still operating, Giblin informed the board.
After his update, he offered four options to consider for its future. Commissioners chose the option to sell off the assets, and to get out of the business, saying they thought the money spent on the accelerator could be better invested elsewhere.
The equipment could just be sold off and moved. Unless a new operator steps forward.
Without a new operator, the building, owned by the Collier County Airport Authority, would then be available for rent to other businesses.
From our archives: Immokalee culinary accelerator shows itself off, with tours and food
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An 'intent to negotiate'
Commissioner Bill McDaniel made the motion for the county to issue an intent to negotiate, or ITN, to liquidate the assets and to see if there's anyone out there who wants to take over the lease at market rate.
If a private company should buy the equipment and assume the lease, it could continue operating the accelerator – or launch another food-related venture, without county involvement.
The assets for sale include everything from food carts to freezers.
Besides the kitchen, the accelerator includes a food sciences laboratory and packaging equipment.
Funding for the accelerator comes from membership fees and distributions from the Seminole Tribe compact. The former is generating $40,000, and the latter is providing $306,000 to support the operations this year.
The tribe's distributions are in exchange for its exclusive rights to run sports betting, as well as casino gambling on its reservations, in the state. Funneled through the state, Collier's share of the money could be used for other purposes in Immokalee, if not for the accelerator.
Use of the commercial kitchen is by the hour, day, or month, depending on the level of membership.
In deciding to sell the assets, commissioners considered future costs, including maintenance and upkeep.
The accelerator has a little over a dozen members.
Not meeting expectations
Commissioner Rick LoCastro said he didn't think the accelerator fully did what taxpayers expected, with some businesses using it for far too long, for "nearly free," instead of weaning off it.
To that, Giblin explained one of the longest users of the accelerator has outgrown it, but she has struggled to find a suitable place for her bakery.
"She is motivated. It's just difficult," he said.
The goal of the accelerator is for businesses to stand on their own two feet within two years, but they're never required to leave. Some have been relying on the kitchen since 2018.
Commissioners briefly discussed giving the current members the first right of refusal to make an offer for the equipment and lease, but the board decided not to go in that direction.
McDaniel said he wasn't interested in that idea at all.
"We want to make sure we are advertising this to the world, to as many people as possible," he said.
Chairman Chris Hall said it's time to end the county's involvement in the accelerator before it gets any worse, with it already costing too much, and not making any money.
He used this old adage to explain the situation: "If you find yourself in a hole, stop digging."
Funded for now
The accelerator, located next to the Immokalee Regional Airport, is funded through the end of the fiscal year, which ends in September. So, if it closes, it wouldn't be immediate.
The budgeting for next year is still in process.
Although the county received nearly $1.9 million in state and federal grants to build and outfit the accelerator, it won't be required to pay any of the money back if the assets are sold and the program ends, as all the performance obligations have been met.
After learning about the county's plans to cut ties with the accelerator, Danny Gonzalez, president of the ImmokaleeEasternChamber of Commerce, said he agreed with the decision, if it's not making any money from the small businesses that use it.
These days, he said, it's even harder to start a new business, "with everything costing more" than it used to – due to high inflation. He doesn't think as many people are willing to do it.
"I am one of the lucky ones to be in business for the last 28 years and counting because we own our building and don't pay rent," Gonzalez said.
Years ago, he started working for his father-in-law at Lozano's Mexican Restaurant in Immokalee, and he eventually took over as owner.
Those who still want to own their own culinary business can find help elsewhere, he said, such as from the U.S. Small Business Administration. He said the county has "done their part," and he thanked the county for trying to help grow businesses in Immokalee.
This article originally appeared on Naples Daily News: Florida Culinary Accelerator to close, if new operator isn't found
