08-08-2005 EDA MIN - Laserfiche WebLink

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Economic Development tluthority Minutes Page 2 August 8, 2005 K-Netica is requesting an extension of their sublease agreement for asix-month term through February 2006. Staff recommended approval of the six-month sublease extension at the rate noted in the staff report to the Commission dated August 8, 2005. Joe Roushar, Chief Technology Officer of K-Netica -Provided information regazding the company's software and the various types of applications. He stated that their product reduces call time, and increases accurary and efficiency. He stated that half of the company's operations axe conducted at the Incubator site and the remaining is done in Finland and Wisconsin. Commissioner Dwyer asked if Mr. Roushar was interested in a longer sublease period, since they have asked for extensions several times already. Mr. Roushar stated no, that they prefer to come back and report to the Commission. MOTION BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER FARBER TO GRANT ASIX-MONTH SUBLEASE EXTENSION TO K-NETICA, EFFECTIVE AUGUST 21, 2005 THROUGH FEBRUARY 20, 2006 AT THE FOLLOWING CASH/STOCK RENT RATE: $ 4 PER SF CASH RENT ($755.66 PER MONTH) PER SF STOCK VALUE (DIVIDED AMONG BUILDING OWNER, INCUBATOR CONSULTANT, &EDA) $11 PER SF TOTAL RENT VALUE MOTION CARRIED 6-0. 6. Northstar Business Park Development Update Ms. Steinmetz stated that the Improvement Project and Plat Status Report/Schedule is the same as last month. She stated that they have not yet received a response from the Minnesota Department of Employment and Economic Development (DEED) regarding the grant proposal ui the amount of $495,000, but that they should have an answer soon. Public Hearings: Consider Disposition of EDA Property to Provo Enterorises. LLC, 9'Brien Holdings. LLC and Medical Extrusion Technolo ~es. Inc. Ms. Steinmetz explained that the EDA is required to hold a public hearing for the disposition of property to the three companies. A public hearing has been called and advertised in the Elk R1verStarNems for the sale of three lots of EDA property located in Northstar Business Pazk fox industrial development purposes. Ms. Steinmetz provided a summary of the proposed sale as follows: 1. Provo Enterprises. LLC (Alliance Machine. Inc.) Lot size: 2.84 acres Purchase Price: $207,956 Project: Build 18,000 squaze foot building, retain 30 jobs, create 9 new jobs 2. Q'Brien Holdings LLC (crystal Distribution. Inc.l Lot size: 3.7 acres Purchase Price: $276,940 Project: Build 32,000 squaze foot building, retain 31 jobs, create 15 new jobs