HART - The Starting Block, kitchen incubator, established in 2008, and located in Hart’s Industrial Park, is at a crossroads. After doing extensive research into the history of the incubator and outlining the organization’s current standing, City Manager Nichole Kleiner brought the matter to the city council for a formal discussion May 12.
“The Starting Block (TSB) was one of Michigan’s first shared-use commercial kitchen incubators. It was intended to support entrepreneurship, food-based business development and job creation,” said Kleiner. The incubator was funded using MEDC (Michigan Economic Development Corporation) and CDB (Community Development Block) grants as well as federal grant funding totaling $500,000.
According to Kleiner, under the original lease-management agreement, TSB was expected to maintain operations, fulfill grant obligations, create jobs, maintain a governing board and manage succession planning, and ultimately become self-sustaining. It was hoped after 15 years, the entity could be transferred from the City of Hart to The Starting Block.
However, “The organization is struggling,” Kleiner said.
Kleiner went on to say that over the last 17 years, the city has provided significant support through ownership of the facility, utilities, lawn care, snow removal, roof replacement and other indirect operational support amounting to approximately $30,000 per year. In 2025, the city was able to finally transition TSB to paying its own utilities. However, the lease that expired two years ago hasn't been renewed.
The current challenges include the organization’s inability to replace its director, the lack of a long-term sustainability plan, board frustration regarding organizational direction, and increasing building maintenance needs. According to Kleiner, financial statements indicate there is approximately $125,000 in cash reserves, which may allow operations to continue in the short term, however, the city remains the responsible party, and Kleiner feels more tax dollars are being used than are justifiable. “There has to be some expectation for the council, from the board, reinforcing the value,” Kleiner said.
“I certainly would hate to see it go by the wayside. I'd love to see us be able to market it somehow in a ‘thinking outside the box’ fashion to other industries that could use (it),” council member Catalina Burillo commented.
“(We’re) asking the board to submit a long-term operational and sustainability plan within a defined timeline,” Kleiner continued. “Maybe it's time we assess getting (the property) back on the tax rolls and selling it? That's an option.”
Council member Betty Root recalled being on the council when the incubator first came to be, remembering the reasoning for bringing it here. “Things have gotten away from young people starting out and starting businesses in garages anymore. It's a change in our economic system, and in our thoughts,” Root lamented. “And it's too bad, I hate to see it go. It was necessary at the time.”
Reiterating that the community’s tax dollars are in play here, Kleiner suggested holding a public information meeting, “Maybe we find some people who want to step up and help. We could get a stakeholder group (who are) willing to roll up their sleeves and try to fix this. But we do need to get into a lease with them (TSB), some sort of terms and expectations. I think just continuing in the state that we're in, is not beneficial to either organization.”
Mayor Amanda Klotz affirmed, “I think we need to hear what they think they can do. How many businesses do they need to recruit to keep it sustainable? I think we should take a look at the fair market value…and possible other developments, just so we have those options in front of us. I would like to see what their long-term operational sustainability is. That would be what I'm wanting to see first.”
When asked about a possible timeline and how often the board meets, Kleiner reported meetings are held as needed. They have been meeting more frequently since she became the city manager, and in their defense Kleiner told council they have made several attempts at finding a new manager, but a permanent solution has not come together.
From what Kleiner could find, an updated sustainability plan has not been created, and the original arrangement terms have not been upheld. “It needs a full business assessment and complete overhaul,” she said.
Councilor Jim Cunningham was in support of holding a public informational meeting and said, “If they can justify their continued existence and so on, all well and good. But if they can't, you'll have to look at alternatives.”
The full council was in agreement with Cunningham and gave the city manager the go-ahead to get a public information meeting on the calendar.
