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Economic Development?,uthority Minutes Febmary 13, 2006 Page 2 components of the program -the lease space, access to capital and technical assistance. She also reviewed past and present Incubator tenants and the program budget. Ms. Steinmetz stated that Incubator building owner Larry Hickman has sold the building. She reviewed Incubator consultant Harlan Jacob's recommendations, as well as staff's recommendations regarding the future of the Incubator Program. President Gongoll stated that he felt the program has been a good venture, and that now is a good time to reflect and then look to the future. He felt that the program is a good economic development tool, but requires funding resources. He stated he would like to see it continue, and would support fine-tuning the program. MOTION BY COMMISSIONER MOTIN, SECONDED BY COMMISSIONER FARBER TO ACCEPT STAFF'S RECOMMENDATIONS REGARDING THE FUTURE OF THE BUSINESS INCUBATOR PROGRAM AS FOLLOWS: • PUT THE INCUBATOR PROGRAM ON HOLD (AFTER THE LEASE EXPIRES IN APRIL) AND DIRECT STAFF TO COMPLETE AN ANALYSIS OF THE PROGRAM AND EXPLORE OPTIONS FOR A NEW INCUBATOR PROGRAM MODEL, WHICH MAY INCLUDING THE FOLLOWING: - NEW RENT STRUCTURE DISCONTINUING THE STOCK OFFERING - NEW LOCATION LOCATED ON CITY SERVICES - NEW BUILDING OWNER/PARTNER - DISCOVER NEW VENTURE CAPITAL FUNDS • IMMEDIATELY DISCONTINUE MARKETING THE PROGRAM AND THE RETAINER WITH INCUBATOR CONSULTANT UNTIL A NEW PROGRAM MODEL IS SECURED. • IF AN INCUBATOR IS NOT FEASIBLE, EXPLORE THE OPTIONS OF INVESTING THE TESCOM LOAN FUND BALANCE INTO A NEW OR DIFFERENT ECONOMIC DEVELOPMENT PROGRAM. Commissioner Tveite stated that he would like to see some focus placed on Energy City in the review of the Business Incubator program. President Gongoll suggested the EDA have a workshop on this issue Ms. Steinmetz noted that it will take some time to gather information, but that a future workshop would help in the analysis process. President Gongoll expressed his thanks to Harlan Jacobs for his efforts in getting the Business Incubator up and conning. MOTION CARRIED 7-0. 6. Consider Business Incubator Lease Extension - K-Netica Joe Roushar, Chief Technology Officer for K-Netica provided an update on the company's condition regarding number of employees, wage and salary information, future plans, and projected sales. Mr. Roushar expressed his appreciation for Harlan Jacobs' assistance. He stated that they are looking to Ms. Steinmetz and the EDA to help them stay in Elk River.