Lewiston Mayor Dan Johnson has decided to shift some $600,000 from a proposed innovation hub to the city’s general fund.
Valley Vision has been leading the effort to introduce an innovation hub in Lewiston which would be a building equipped with high-speed internet and have desks, offices and conference rooms as well as offices for not-for-profit groups that help businesses.
The city received about $1.13 million through the federal Coronavirus Aid, Relief and Economic Security Act and put $600,000 into its economic development fund for the innovation hub.
Dan Johnson
However, the federal funds were determined to not be an allowable expense under the CARES Act.
Additionally, Johnson said a feasibility study for the innovation hub indicated that leases and service fees typically generate about 60% of the revenue, leaving the remaining 40% to be covered with subsidies. Also, only 30 percent of respondents to a survey indicated interest in leasing space at the proposed innovation hub.
Johnson added that a number of groups like the North Central Idaho Small Business Development Center at Lewis-Clark State College already provide the types of services the innovation hub would offer.
The council took no action on the mayor’s decision, and Johnson told councilors they could override his position in the coming budget process. (Lewiston Tribune)
