WATERLOO -- The Cedar Valley TechWorks took a $150,000 step toward becoming a reality Thursday.

The agribusiness downtown redevelopment project has been awarded $150,000 in state funds over the next two years to establish a bio-based business accelerator program to help fledgling agribusinesses grow near downtown Waterloo.

It is the first portion of some $3.2 million in Iowa Department of Economic Development funds from various programs for TechWorks, announced by Gov. Tom Vilsack in October, said Jeff Kutz, executive director of the nonprofit Waterloo Development Corp.

TechWorks would be an agritrade center, business incubator and education center located in some to-be-vacated buildings at John Deere's Westfield Avenue site.

The initial grant will allow TechWorks to help small, growing businesses engaged in the discovery, development, production and marketing of products related to biotechnology. TechWorks will receive $75,000 a year, for two years for initial implementation of the project.

"It's basically to help the businesses grow, to help any entrepreneurs get up and running with seed money," Kutz said.

According to Kutz, the grant is "a very important first step" in the startup phase of Cedar Valley TechWorks. "This funding will allow us to help incubate new businesses and expand existing business, concentrating on bio-technology industries."

TechWorks would be one of the first three statewide "accelerators" to be funded as a part of an IDED initiative. IDED intends to award grants to six centers across the state. TechWorks will specialize in the development of agricultural-based industries producing bio-based products.

Kutz said the TechWorks project is anticipated to begin taking shape this fall. The University of Northern Iowa is planning to move its National Ag-Based Industrial Lubricants program, or NABIL, from Waverly to the present six-story "R" building at the Westfield site. It is one of several buildings being vacated as Deere proceeds with its $127 million, multiyear redevelopment of its Westfield and East Donald Street sites.

NABIL's move is still in the planning stages, program acting director Diane Neuzil said.

TechWorks is near Young Arena and the planned downtown Riverfront Renaissance improvements near the Waterloo Center for the Arts. It is envisioned as a key element of downtown Waterloo redevelopment.

Pat Kinney can be contacted at (319) 291-1484 or pat.kinney@wcfcourier.com.