The economic boon promised by the Austen BioInnovation Institute of Akron when it launched in 2008 with approximately $70 million in funding never actualized, and now the biomedical center is nearly broke, according to Ohio.com.
Bill Considine, president and CEO of Akron (Ohio) Children's Hospital and chairman of ABIA's board, on Monday plans to appear before the Summit County Council to answer questions about why the institute should receive taxpayer support, according to the report.
At the same time, ABIA's board of directors will vote to disperse and put new faces at the table, though Mr. Considine will continue in his role as chairman.
ABIA is seeking a loan deferment and about $500,000 in grants over five years to help it offset the debt on its headquarters. The institute received about $14 million in loans and tax-free bonds to purchase and renovate what was previously known as the Ohio Edison building.
The county guaranteed all of the money because at the time, SummitCounty believed the potential economic benefit ABIA could bring to the community made the project a worthwhile risk. ABIA leaders had forecasted the center would create 2,400 jobs and attract at least $50 million in investments annually within a decade, according to the report.
However, those gains have not occurred. While ABIA has not missed any payments and is not at risk of defaulting, its sustainability is uncertain. A recent $1 million cash infusion from the John S. and James L. Knight Foundation will keep the institute afloat into next year, but if ABIA fails, SummitCounty could be responsible for more than a decade of $700,000 annual payments, according to the report.
ABIA continues to face challenges as the county considers stepping in to help. The nonprofit venture reduced its staff from 38 employees in 2011 to four full-time and two part-time employees currently. Most of its founding partners have pulled out, and now Summit County Job and Family Services stopped renting the top three floors of the building, ending the $86,739 in annual rent payments that covered ABIA's mortgage.