State Sen. Marlin Stutzman, R-Howe, planned on pitching Region III-A's idea of creating a $2.8 million business incubation center in Avilla to Gov. Mitch Daniels and the Senate Appropriations Committee Tuesday.

On May 20, the Region III-A Development Economic District & Regional Planning Commission's board of directors voted to put up $10,000 toward making that a possibility. Later that day, the Avilla Town Council voted to put up its own $10,000.

Region III-A's David Koenig said the goal is to create a $2.8 million rural business development center near the intersection of S.R. 8 and S.R. 3 in Avilla. If all goes well, the center could open as early as July 2010.

As part of the proposed funding package, Region III-A was seeking approximately $700,000 in funding - perhaps all of which would come from the state - to become eligible for a federal grant to fund the remainder.

Stutzman said he could make no guarantees, particularly with the state facing a revenue shortfall of $1.1 billion from previous projects, but he does support the project. He said he would be asking for money the $140 million-$180 million the state has in discretionary stimulus funding.

"Hopefully some of that money will go our way," Stutzman said Tuesday. "It's possible. We'll just see."

The project also has the support of state Rep. Matt Bell, R-Avilla.

"It's the kind of investment the state has shown it wants to make," Bell said.

But with the state's finances struggling, he did not want to speculate on the odds of Region III-A's project getting support from state funds.

"I just don't feel comfortable characterizing the chances today," Bell said Tuesday. "It's hard for me to say right now.

"I'm certainly supportive of the concept."

Koenig said entrepreneurs with sound ideas could apply for space at the center, using the facility's manufacturing/warehousing. The theory being that if the entrepreneur's idea takes off, he or she might expand with full manufacturing capabilities to a location within the region, creating jobs.

Two similar business incubators have been set up in Fort Wayne, and have seen success, Koenig said.

The center would focus on alternative energy and information technologies.

Region III-A's vision calls for a 32,0000-square foot structure, with 20,000 square feet set aside for manufacturing/warehousing. The remaining 12,000 square feet would be used for office space.

The goal is to help this part of the state, which has been long dependent on the automotive and recreational vehicle industries to diversify.

The first step in the process is to raise between $30,000 and $40,000 to create architectural plans and a formal proposal which can be taken to either investors or state officials for their backing.

The second step would be for Region III-A to come up with $700,000 of the $2.8 million. If that amount can be reached, the project would be potentially eligible for a U.S. Economic Development Administration grant for the remaining $2.1 million.

Koenig said Region III-A has been in contact with state Rep. David Yarde, R-Garrett, state Rep. Matt Bell, R-Avilla and state Sen. Marlin Stutzman. All three pledged their support to the project, he said. In theory, the state could come up with the $700,000 needed to make the project eligible for the federal grant.