downtown windsor business accelerator shuts down, building to be sold
the downtown windsor business accelerator, which suppor...
sep 13 2024
3 minute read
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the downtown windsor business accelerator, which supported and helped launch a number of local businesses over the past more than a decade, has closed its doors and been put into receivership.
“i am no longer with the accelerator and i am not at liberty to speak on the matter,” former accelerator ceo arthur barbut texted in response to a windsor star request for comment.
according to the notice and statement of receivership dated august 12, and publicly posted online by london’s mnp ltd., the accelerator owed libro credit union $1.2 million for a commercial mortgage and an unspecified amount to the numbered company 957590 ontario. both parties are listed as secured creditors.
in addition to the two mortgages, the accelerator owed another $732,000, including a combined $127,949 in taxes to revenue canada and tax ontario.
the statement also lists another 45 unsecured creditors who are owed a combined $604,000. the size of those debts ranges from $11.30 to $253,863.
the unsecured creditors are a mix of area businesses, utilities and individuals.
the accelerator was located in the former purity dairy at 1501 howard avenue. the locked-up building has several notices pasted on doors and windows dated august 14 stating the court-appointed receiver had seized the property.
the downtown windsor business accelerator, in the former purity dairy building at 1501 howard ave., is pictured thursday, sept. 12, 2024. the accelerator, which helped fledgling businesses grow, has been placed into receivership.
dan janisse
/
windsor star
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libro credit union told the star the financial institution intends to list the building for sale.
“at libro credit union, we’re focused on the financial well-being of people, business and communities, so of course we recognize the future of the former accelerator building is an important issue for downtown windsor,” said libro communications manager mike donachie.
“it’s a matter of public record that we are a secured creditor with a mortgage on the property and i can confirm the property will be listed for sale,” he added. “i’m afraid i can’t offer much in the way of details or a timeline right now.
“we also want to recognize the concern in the business community about this property and want everyone to remember our credit union is all about building up communities, especially local businesses.
“we share the business community’s drive for a vibrant windsor and look forward to this building being back in use as a boon for the local economy.”
mortgage troubles first surfaced in june 2023 when libro sued the accelerator, which was founded in 2011, seeking payment of the $1.1 million then owed on the mortgage on the 95-year-old building.
an appraisal at that time by fr jordan & associates said the 55,000-square-foot building and 75-car parking lot was valued at $3.52 million. the accelerator was moved to the dairy property from an ouellette avenue bingo hall when the non-profit corporation purchased the site in march 2018 for $1.7 million.
the downtown windsor business accelerator property at 1501 howard ave., shown thursday, sept. 12, 2024, has been placed into receivership.
dan janisse
/
windsor star
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in addition to the accelerator’s own operations, the site was home to a variety of businesses. a handful of businesses are still operating at the accelerator building in separate offices.
“it wasn’t a complete surprise,” said graphix plus screen printing and embroidery manager krystal baylif of the closure. “we’d heard things, we knew it was coming.
“it’s a massive building,” she told the star. “it still needs some work and there’s a lot of open space in there.”
baylif said graphix has been operating at the site for 25 years and has a five-year lease for its store.
among those also still on the site are the shadow box theatre and the spider guys.
the financial challenges of running and maintaining the building grew in 2022 when feddev ontario rejected a $4.7-million plan submitted by barbut for new programming and to modernize the building to deliver those services.
that rejection resulted in the building being put up for sale in august 2022 for $4.6 million. it was later reduced to $3.6 million before being taken off the market.
it was re-listed earlier this year for $2.9 million, but it still failed to find a buyer. attempts to secure a local angel investor to buy the building also didn’t come to fruition.
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the accelerator’s mission was helping startup businesses get off the ground through access to facilities, expertise, mentorship, contacts and support to navigate the paperwork maze required to start an enterprise.
among the businesses that enjoyed the accelerator’s support in their early development — companies that have gone on to gain national recognition — are mobile robotics company optimotive and build a dream , which offers specialized programs that help women and girls explore under-represented careers.
optimotive has also drawn international attention, announcing this week it had received us$2-million in investments from the venture capital funds version one (san francisco) garage capital (waterloo) and newlab detroit to expand.
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