FAIRMONT — Small-business startups participating in the Fairmont Economic Development Authority’s incubator program have been slow in moving out on their own.

Since 1993, FEDA has operated the incubator building, which provides office suites and work areas for up to seven businesses.

There are currently five tenants in the building. Of the tenants, one has been in the building less than a year, but the others have been in there at least five years, with the longest for 25 years.

Typically, incubator office space is leased to new businesses below market value to allow them a successful start.

Jennifer Howard, the city’s interim Economic Development Coordinator, said FEDA is at the point where it must consider whether it should continue the program.

City Administrator Cathy Reynolds said the city recently completed several facility assessments, including the incubator building. The assessment showed a number of issues that would need to be addressed.

“We need to be looking at how we’re budgeting for this… for the future,” Reynolds said.

FEDA Board member Andy Noll said they’ve never had a plan as to when they raise rents or have businesses graduate out of the incubator building. He said he thought former Economic Development Coordinator, Linsey Preuss, had done a good job of getting some of the tenants closer to market rent.

“Do we need it? I think that’s the question that should rise to the top of the discussion,” said Bruce Peters.

He suggested that, if they keep it, they raise rent annually until it is near or above market rate.

Noll said the lack of defined plan and policies, have promoted complacency in tenants. Reynolds said a lot of incubator buildings go hand in hand with entrepreneur programs, which Fairmont doesn’t have.

“We’ve talked about trying to build up an entrepreneur program here to help take people from a business idea… to moving them into the incubator building and then moving them out. But we don’t have that progression train in place and what we have is a building we’re renting that people are inhabiting as long-term tenants,” Reynolds said.

She noted that they also don’t have new businesses knocking on the door seeking a space. She questioned if it was serving as a value to the community for taxpayer augmentation of the building as they’re generally not getting enough in rent each year to cover expenses.

Reynolds asked the board if it wanted to put out a request for bids to see if someone is interested in purchasing the building. The board agreed it wasn’t keen on the idea of the cost of maintenance that would be required in the next couple of years.

“With the cost of these repairs coming up, it’s going to be a money drain for sure,” said board member Sarah Gerhard.

Peters said he think an incubator building is a good idea, but that it’s not really being used like that right now. He said he thinks they should pursue selling the building, to which other board members agreed.

Reynolds said they’ll look into putting together either a Request for Proposal or closed bids.