PRINCETON — Small businesses often have modest starts. Take, for example, Pass Through Archery, a retail business with an archery range and other features, located in the heart of Princeton.
During its first six months, the business operated from the garage of one of its owners, John Fox.
Then, Fox and his business partner, Kevin McKannan, got the most unusual offer of one year of free rent in a renovated building on Princeton’s Town Square.
The offer came from Kyle Johnson, president and chief executive officer of Onsite Occupational Health & Safety Inc., a turnkey company with its headquarters in Princeton that provides outsourced medical services and solutions for U.S. government and civilian contractors and others in need in a number of countries, including Afghanistan, Oman, Kuwait, Dubai and India.
Fox and McKannan, naturally, appreciated the opportunity which allowed them to open their shop anew last November in the free space.
“The first year is crucial in establishing a business, and the free offer is a very big help,” said McKannan, who also is employed full-time as a captain with the Princeton Fire Territory.
Fox, a full-time technician with Evansville Truck Center/Kenworth dealership, agreed.
Johnson said he stumbled onto the idea to help entrepreneurs in such a big way when he had an older building at 101 N. Hart St. refurbished on the Town Square to house his own office.
The building, which dates back to the early 1900s, was at risk of being demolished.
“Rather than see it torn down, I decided to refurbish it,” Johnson said.
“When I got moved in, I just basically had the idea it would be nice for other people, too.”
Johnson, 44, recalled he got his start in his first business in 1994 in Evansville’s former small-business incubator, housed in the old Orr Iron Building which no longer exists.
“I decided it would be kind of neat to buy up and refurbish more of the abandoned buildings on the Town Square and develop a small-business incubator here,” Johnson said.
So far, he has bought seven of the buildings and has options on five more. The seven are in various stages of remodeling, he said.
Todd Mosby, president and chief executive officer of the Gibson County Economic Development Corp., termed Johnson “the type of cheerleader which every community wants and needs.”
The buildings have cost Johnson on average from $40,000 to $100,000 each to buy and from $150,000 to $500,000 to refurbish.
“The interesting thing is banks still won’t lend money. I’m paying for it myself as I go along,” Johnson said.
He declined to reveal the total amount, which he has spent so far other than to say, “It’s a bunch of money.”
After the first year of free rent, the entrepreneurs will be required to pay 25 percent of the total rent, and then pay 50 percent of the total rent the third year and 75 percent of it the fourth year.
“By their fifth year, hopefully they will be successful enough to pay the whole rent,” he said.
On average, he estimated the rent would total $1,000 a month, depending on the size of space.
Johnson said it makes him feel good to be a part of entrepreneurs’ businesses while the businesses are in their infancy.
“I’ve not had anyone become a millionaire because of what I’ve been able to do to help them.
“But, I imagine over the years it will be even more gratifying.
“Plus, I’m saving old buildings which is pretty neat.”
Johnson said he probably won’t be able to do full-blown historical restorations on the various properties.
“But, at least I can get them to look as close as possible.”
Johnson said there isn’t necessarily a waiting list of entrepreneurs wanting the free rent.
“There’s a bunch in various stages of their startup businesses, from the planning stage to working out of their homes.
“Now, it’s a matter of finding the right person to fit the right building.”
Johnson said he’s never heard of anyone else doing something similar as his work with entrepreneurs.
“But as big as the United States is, I’m sure there is somebody out there who has done something similar,” he said.