Digital Corridor expands to 27 companies

Despite the lack of a major university found in other high-tech communities such as Silicon Valley, the Research Triangle, Boston and Austin, Texas, Charleston’s lower housing costs, smaller size and recreational amenities have begun to attract knowledge-based companies.

Some 27 of these companies now reside in one of four areas that comprise the Charleston Digital Corridor: the Wharf District, the University District and the Gateway District on the peninsula, and the Cainhoy District that includes Daniel Island.

These companies are eligible for a variety of incentives, including waivers of fees, property tax abatement , discounted rates at public parking facilities and a presence in digital corridor marketing materials. Private contributions fund these perks.

“The corridor is not a program,” says Ernest Andrade, director of the Charleston Digital Corridor. “It’s a marriage of effective private sector resources with an accessible and responsive public sector.” Andrade attributes much of the success to the cooperation of public and private sector service providers that responded to his pleas to help businesses cut through red tape.

Marketing and graphic design firm Sans Locus, for example, was able to move into new King Street offices within 24 hours of signing the lease. Adds Andrade, “It’s important to perform at national and international levels if we want world-class companies.”

Andrade believes recruiting firms to Charleston benefits local companies, citing that workers may be reluctant to relocate where there are few options should they want or need to leave their employer. “As long as we have opportunity, we will get the labor,” he says. “When there are multiple opportunities for workers, this attracts more and better qualified talent and builds momentum.”

A small, West Coast software firm is expected to announce later this month that it has opened its East Coast office on the peninsula. Charleston was selected for several reasons, including its temperate climate. The senior local company executive, who development officials have asked the Business Journal not to identify, says the company “wants to be in the digital corridor.”

The company found the Charleston Regional Development Alliance through a web search and the CRDA then put them in touch with Andrade. The company is relocating a small group of employees and making several local hires. Andrade “made us feel important,” says the official. “It was one-stop shopping …Andrade was always available for us.”

Future plans for the corridor involve MUSC and the development of a biotech incubator. Central to such a facility will be lab space, something lacking in the area. In 2003, the city plans to commit budget dollars for program development. The corridor’s web site, www.charlestondigitalcorridor.com, is also being revised to include a search capability for office space and provide more information on corridor companies.