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HOUGHTON - As the MTEC SmartZone's first incubator, the Powerhouse building has embodied many of the SmartZone's core goals - innovation, expansion and graduation.

The Michigan Economic Development Corporation invested about $800,000 for purchase and restoration of the Powerhouse building, which opened in 2003 with 5,500 square feet.

SmartZone and the city of Houghton renovated the SmartZone building a second time with a $1 million MEDC grant. The renovation, which coincided with the arrival of new tenants GE Aviation, was completed in January 2008.

Two new floors were added to the building, tripling the amount of usable space to 15,000 square feet. The renovation was designed to accomodate 120 employees.

GE started with 50 employees, four-fifths of which were students.

In 2007, GS Engineering became the SmartZone's first tenant to graduate, moving out of the Powerhouse to a new facility in town, creating 12 new jobs. The new space was dedicated in June.

The company was a charter member of the Powerhouse building, moving there from a room in the Houghton City Centre.

Being in the SmartZone had multiple benefits, Glen Simula, GS Engineering owner, said. The incubator provides professional services such as high-speed Internet, copy machines and conference rooms that would strain the budgets of unassisted start-ups.

GS Engineering could also tap into the business expertise of SmartZone employees, including CEO Carlton Crothers and his predecessor, Alan West.

There was also the benefit of working with the other tenants, such as Plastic Flow and Shafi, Inc.

"You could wander next door and ask technical questions, business questions, you could brainstorm on ideas," Simula said. "It's a small think tank, and I really think that is where the real strength of the incubators is."

Garrett Neese can be reached at gneese@mininggazette.com.