The City Council approved using $250,000 of GE economic development funds for the Berkshire Innovation Center.

PITTSFIELD, Mass. — The City Council approved Tuesday using $250,000 from the General Electric Economic Development Fund to kick start the new innovation center at the William Stanley Business Park.

The funds are hoped to be matched by the Pittsfield Economic Development Authority and begin the work of building the Berkshire Innovation Center on that land at 901 East St.

The state has earmarked $9.7 million toward a building that will serve as a place for multiple companies to do research and development with shared equipment and space.  The council accepted those funds last month.

"For me, I feel this vote is the most important vote I will take so far this year. I am proud to see PEDA moving forward," said Councilor at Large Kathleen Amuso.

The City Council Chamber was filled with supporters of the project. Representatives from MountainOne Financial — a tenant at the William Stanley Business Park — the Berkshire Chamber of Commerce, 1Berkshire, attorney Jeffrey Cook and Greylock Federal Credit Union all spoke in favor of the project.

"Any thing we can do as a city to promote economic development, I'm going to support. We need jobs and this is a start," said Ward 2 Councilor Kevin Morandi.

Morandi added that the project not only helps local small businesses but also builds a reputation for the city being welcoming to business.

"This gets Pittsfield on the map. We become an area that is going to attract interest," he said.

While the usage of funds received a unanimous vote, Councilor at Large Barry Clairmont had a few questions before the vote about the center's future operating budget. Clairmont worried that the new nonprofit being organized to head the center will fall short in operating funds the first two years. The new organization is expected to run the building based on membership fees from an array of institutions that have agreed to take part.

"It was looking like there is going to be some shortfalls in operation for years one and two," Clairmont said.

Douglas Clark, the city's direct of community development, said the new agency will have to find a way to make the numbers work and that there is no intention for the group to come back and ask for more.

"This is intended as a one-time request and approval," he said.

The money is eyed to start site work and help release the state funds earmarked for the construction.

"We're hoping this will be enough to put out an RFP and be able to talk more seriously about design issues, to do some site work, and get prepared for the grant coming forward or a portion of that $9.5 million coming forward next year instead of waiting several years," Mayor Daniel Bianchi said earlier in the day.

PEDA Board Chairman Mick Callahan compared the process to get to this point to an "old-fashioned barn raising" because of the number of people it took to put together the business plan, attract the businesses and flesh out the concept.

Ward 5 Councilor Jonathan Lothrop recapped the changes in the plan and called it one that will both keep the city's existing manufacturing base and look to move forward.

Ward 6 Councilor John Krol said, "this project is an example of our community taking time, listening to feedback, being able to adapt and respond... This model really gives us the best model to help our small businesses."

Faced with a question about where the businesses are coming from - many being from out side the city - Clark said there will still be economic benefits from having those businesses operating in the center.

"It is not a good strategy to build a wall around Pittsfield. Yes, we are bringing some companies in from outside of the area. But those companies may be employing people who live in Pittsfield," Clark said.

Vice President Christopher Connell said the plan is "exactly what this fund was set up to do." The city received some $10 million from GE more than a decade ago to help spur development on its former land.

"Every single day that fund loses value. This is such a small investment. We are putting up only 5 percent of what is left in that fund," Connell said of those dollars. "This is exactly what this fund was set up to do."