An Akron company that converts “waste” heat into electricity started in the city’s accelerator.
Echogen Power Systems then moved to a city-owned building that formerly housed the Board of Realtors on High Street.
Now the burgeoning startup is looking to expand a second time — and again wants to do so in Akron.
Mayor Don Plusquellic is hoping to make it happen with legislation he’ll introduce to City Council on Monday.
Plusquellic is proposing to lease the former Hamlin Steel headquarters at 58 W. Exchange St. to Echogen. He also wants to invest about $800,000 — partly in federal funds — in emergency repairs to get the building ready for Echogen, and possibly other companies in the future.
Akron is in competition with other cities locally and nationwide that have tried to entice Echogen to relocate. Plusquellic is hoping the deal with Echogen can move forward “at the speed of business.”
“The need is now,” he said during a news conference Friday.
Plusquellic said Philip Brennan, Echogen’s chief executive, could have moved but instead “committed to Akron.”
Brennan said Akron supported the fledgling company, which started in April 2007, and he wanted to reward the city for its loyalty.
“This is a great place to start a business,” he said.
Echogen, which captures “waste” heat, like exhaust gases or residual heat thrown off by industrial processes, and converts the energy into usable electricity, employs 28 people and plans to increase its staff to 45 by 2013. The company has been on a roll lately, receiving a $10 million cash infusion from a Texas company earlier this year.
Akron bought the Hamlin Steel building in 2003 for land-banking purposes. The building in recent years served as the headquarters for the Downtown Akron Partnership and the Akron Marathon, but both have since moved to other locations.
As part of the deal with Echogen, Akron would improve the interior of the building and demolish some of the outbuildings, a few that date to the early 20th century.
Echogen would immediately invest $175,000 in leasehold improvements. The company would pay $80,000 annually for rent for two years, when the terms would be re-evaluated. The company would have the right to buy the property.
Brennan said the Hamlin building has “seen better days,” but he would serve as a metaphor for his company, which takes unwanted materials and finds a new use for them.
Stephanie Warsmith can be reached at 330-996-3705 or swarsmith@thebeaconjournal.com.