Multiple tech companies circling Traverse City are set to bring an infusion of high-paying jobs to the area. There’s just one small, nagging problem they have to solve first: finding a place to call home.

At least three tech organizations are hunting for office space in the Traverse City area. Leading the charge is board president Russell Schindler of local nonprofit TC New Tech, who is searching for a base of operations for new technology incubator Startology. The group originally planned to move into Old City Hall at the corner of Cass and State streets, but backed out due to leasing costs.

“It would have been a great spot, but it was also very expensive,” says Schindler. He notes Startology’s plan is to lease space to start-up companies and offer seminars on general business practices, human resources, accounting principles and legal considerations for new entrepreneurs. “We couldn’t charge (tenants) less than we’re being charged on a per-square-foot basis, and the tenants and start-up companies we’ve been talking to were balking at the price. We realized we’d have a hard time filling it, so we had to look elsewhere.”

Schindler says multiple options are still on the table for the incubator, including a possible deal with Grand Traverse County to move into the cafeteria space in the lower level of the Governmental Center (pictured). A proposed deal would allow Startology to lease 2,214 square feet for just over $13,000 – approximately $6 per square foot, compared to downtown’s going rate of $14 per square foot. County Administator Tom Menzel says he’s “very much in favor” of the deal, which would cover utility and maintenance costs for the space and generate additional funds that could be used by the county’s economic development corporation (EDC) board for local business programs.

Schindler says there are limitations to the deal – the space is roughly half the size of the 5,000 square feet Startology will need long-term, and the tech group would have to resolve where the 20-25 people Schindler says are “ready to move in on day one” would park, given the Governmental Center’s limited space. He says the building is still on the table as a potential starting point, but that he continues to explore other options.

“We’ve got to walk this line where even if someone gave us a building for free in Kalkaska, it wouldn’t work, because people aren’t going to go to Kalkaska,” he says. “We can’t afford (lease rates) right downtown, and we can’t locate way outside of town. We get a new place thrown at our feet every couple days…but we have to find the right balance.”

Two other tech firms are in communication with Schindler and closely monitoring his hunt – ready to either move into Startology if the right location materializes soon, or else pursue a real estate lead that’s not right for Schindler but could accommodate their firms. ATLAS Space Operations, a national company specializing in cloud-based satellite management and control services, relocated its operations from California to Traverse City in March. Co-founder and COO Mike Carey says he’s working out of a small, crowded office above Georgina’s on Front Street with four interns and another full-time employee while the company looks for long-term office space.

“It’s not a lack of (available) space, it’s timing and pricing and matching mutual intent to find something that’s good for everybody,” Carey says. “We’re planning to hire people who are going to make a pretty darn good wage, and we want them to stay. So it has to be the right mix of functional space and a pleasant operating environment.”

Carey says ATLAS’ growth plan calls for employing 10 staff members by this time next year and 20 employees by 2019. Part of the COO’s search for a new headquarters is finding a high-profile location – preferably near downtown – that will visually establish the tech industry’s presence in the community. “We want it to be known that space technology, big data, AI (artificial intelligence) is here in Traverse City,” Carey says. “It’s known in some places that Traverse City has a tech community, but it’s not been amplified. I want to help amplify it.”

CEO John Aikin of Centerville, Indiana-based Web Canopy Studio shares similar ambitions. Aikin, his wife and four children – along with two of Aikin’s full-time employees – are moving to Traverse City in August to open a second location of the website development and inbound marketing firm. The 13-employee company is a Diamond Partner with software company HubSpot and serves clients across the U.S. and globe, including in Silicon Valley, Miami, London, and New York City. Aikin grew up vacationing in northern Michigan and says he began considering opening an office here after experiencing a “brain drain” in Centerville.

“Not a lot of talent wants to stay in this area,” he says. “Here's an example: I tried to get people to apply for a designer position (in Centerville), and I could not get anybody to apply for it. I posted the same job posting in Traverse City, and I had over 50 applications in two weeks. It’s a really fantastic area I can use to recruit talent who want to be part of that culture and community.”

Aikin says he plans to hire 10-15 employees within the next 12-24 months. “Our salaries in Traverse City will be starting at $40,000 for entry level, averaging into the $60,000s and $70,000s,” he says. “There’s a lot of potential for high-paying jobs for creative people." Aikin says he’s hunting for office space remotely now, but has appointments lined up to view buildings as soon as he touches down in Traverse City.

Schindler says companies like ATLAS and Web Canopy Studio are emblematic of the types of firms he hopes to foster through Startology – just as soon as the company can find a home. “The whole point of what we’re doing is to create high-paying tech jobs for Traverse City,” he says. “It’s nothing against tourism, but we need sustainable, year-round jobs here.”