Five years ago the Technology Innovation Center was in trouble. Started as a partnership between the city of Evanston and Northwestern in 1986, the nonprofit that helps kick-start technology-based companies in Evanston lost all public and University funding by 2003, leaving the organization scrambling for new capital.

That’s when Charles Happ stepped in. After finishing his term as the Board of Education President for New Trier Township High School, Happ used money from his own pocket to keep the TIC alive, providing the organization with new headquarters and new infrastructure.

Since then, the TIC, also known as the “Incubator” for its incubation of fledgling businesses, has helped start up more than 250 companies, many of which have remained in Evanston. The TIC, located at 820 Davis St., is now working with the city’s Economic Development Committee to receive $100,000 in city funds as part of the city’s economic development finance programs. The programs are part of the city’s new economic development strategy passed in January, which aims to promote business attraction and retention in Evanston.

“The city came to us because they have launched a new economic development plan for Evanston, and by helping business start-ups and job growth, we actually can help the economic development of Evanston out of this recession,” said Happ, now the chairman of TIC’s board of directors.

The city’s new strategic plan comes at a time when the number of building permits in Evanston has declined by 10 to 15 percent in the last few years, the primary indicator of economic growth in Evanston, said Lehman Walker, Evanston’s director of community development. He emphasized that nearly every city in the United States is experiencing similar declines in economic growth.

“This is a significant slowdown, but business cycles have peaks and valleys, and hopefully we’re coming out of the valley,” Walker said.

The slowdown in economic growth has caused decreases in city revenue, one of the main reasons why the city faced an unprecedented crisis that resulted in $9.5 million worth of budget cuts across city services.

Available retail and office space in downtown Evanston also reflects the downturn with a 14.5 percent vacancy rate, said Carolyn Dellutri, executive director of Evmark, a nonprofit that provides marketing and management services to businesses. However, Dellutri said other communities face vacancy rates of up to 30 percent.

“We’re doing better than others, but right now, in this economy, it’s been very tough,” Dellutri said.

Evmark has been recruiting business owners to expand locations into Evanston, and Dellutri has attended the International Council of Shopping Centers Convention to speak with retailers about moving to Evanston. Evmark has also gone door-to-door to businesses in other communities to promote expansion, but Dellutri said success has been limited so far.

Although these economic development finance programs have always existed, the city is consolidating them into one inventory for easier access, Economic Development Planner Morris Robinson said. Aside from the finance programs, the city’s economic development strategy also includes plans for new business retention strategies, focusing on small businesses and business start-ups.

The TIC is not the only company taking advantage of these programs. Behles & Behles, an architectural firm at 818 Church St., is applying for up to $11,000 in grants through the city’s storefront facade improvement program, aimed at improving the visual quality of commercial businesses in Evanston. The city also offers a Neighborhood Business District Improvement Program, which provides grants to neighborhood businesses, among other programs in the city’s new economic development strategy.

Although the numbers offer a gloomy picture, Walker said he is optimistic Evanston will turn around its economic growth, given its highly educated workforce and its proximity to Chicago, Lake Michigan and NU.

“Evanston has a very strong economic base, and its location is ideal,” Walker said. “We will come out of this and prosper.”[email protected]