Hasse was among six area companies seeking the contract, including two from Hammond.

But Hasse, which already had done interior demolition work on the incubator's downtown location under a separate contract, offered the lowest bid at $545,000. The high bidder was Hammond's Carlson-Ried Builders Inc. at $648,000.

According to the project's architectural firm, American Structurepoint Inc., Hasse was recommended not only because it offered the lowest bid but also because it has a good working relationship with the city and a history of successful projects.

It is the latest step in a four-year effort to launch the city's technology park, which was greeted with public fanfare in October 2003 under the administration of former Mayor Duane Dedelow.

But the project remained dormant while city officials searched for a location for the incubator, which will offer office space and support services to developing high-tech businesses that will bring higher-paying jobs to the city.

Harris Bank, which acquired two downtown buildings when it bought Mercantile National Bank, last year donated the smaller of the buildings, at 5209 Hohman Ave., to the Redevelopment Commission for the incubator.

The downtown building is at least the third site selected for the incubator and, at 8,300 square feet, considerably smaller than the 20,000 square feet originally envisioned.

But commission Executive Director Gregory Boyan has said in recent months the space is sufficient for a start-up, with room for an initial 14 client companies. The building also had potential for expansion, he said.

Boyan was present Tuesday for the awarding of the contract.

"I'm glad to see we're finally moving forward with this after some of the problems that we've had," Boyan said. "I'm looking forward to getting the renovation done quickly."

Boyan said he will be working closely with the contractor to complete the job as soon as possible, hopefully before the end of the year or early January.

"I"m also going to have a couple of open houses during the construction period and would like for people to come out," Boyan said.