Is Establishing a C-Corp Accelerator with $3M/yr Funding from a Japanese City a Viable Long-Term Ecosystem Strategy?

We are building an accelerator backed by a city in Japan. Because of their budgetary process they will be putting about $3M/yr in 3 consecutive years. We currently are planning to establish a c-corp for the accelerator and operate it for a few years before adding funds. So the accelerator c-corp works as a vehicle for investments. We are designing it in this way for the longer-term ecosystem creation perspective - i.e. getting longer and more active commitments from Japanese CVC's. After sitting on two AMAs I got a feeling this is not such a good idea. Would you give us your thoughts on this? (Note that as we need to present it for the city council's budgetary approval in a week or so we would like to see good bad ugly of this premature idea...)