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Economic Development Authority Minutes Februarc 13,2006 Page 3 He stated that their research indicates Maple Grove or Elk River as the best options for re- locating and expressed satisfaction with the assistance provided by the Initiative Foundation. Commissioner Klinzing stated that she was thrilled with K-Netica's success and asked if there was anything the City could do to help them with their decision. Ms. Steinmetz noted that staff visited a new site with Steve Pederson, CEO of K-Netica, and that staff would remain involved in K-Netica's new site search to assist the company in fording the best lease rate. Ms. Steinmetz reviewed staffs recommendations to extend the sublease to K-Netica through April 15, 2006. MOTION BY COMMISSIONER KLINZING, SECONDED BY COMMISSIONER TVEITE TO APPROVE THE BUSINESS INCUBATOR SUBLEASE EXTENSION TO K-NETICA EFFECTIVE FEBRUARY 21, 2006 THROUGH APRIL 15, 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) $ it PER SF TOTAL RENT VALUE MOTION CARRIED 7-0. Discuss Draft Amendments to the Micro Loan Fund Polia~ Director of Economic Development Catherine Mehelich reviewed suggested amendments to the EDA's Micro Loan Fund Policy as listed in the memo to the EDA dated February 13, 2006. She noted that staff is also reviewing the Business Subsidy Policy, Tax Increment Financing Policy and Tax Rebate Financing Policy for amendments to be presented to the EDA in the next couple months. Ms. Mehelich explained the distinction between the Central Business District and the Downtown District. She asked that the EDA procnde feedback on any additional revisions and a fmal version of the policy will be presented for adoption at next month's regulaz meeting. Commissioner Dwyer suggested that Page 3 of 1 ~ reflect the inclusion of technical service companies, in addition to industrial, so that a company such as K-Netica could partidpate. Commissioner Tveite stated that he felt the Business Eligibility Section IV, allowed other types of businesses to participate. Ms. Mehelich re~7ewed the history of language changes to this section. Ms. Mehelich stated that Commissioner Dwyer's suggestion could be included. Commission Gumphrey asked why the amortization period for real estate uses was proposed to increase from 15 to 20 years. Ms. Steinmetz stated that this was a recommendation of the Finance Committee. Commissioner Moon recalled that the intent was bring the amortization more in line with what was available from other funding sources. Also, since the loan was fully secured by the building and was not a risk, that a longer time period would allow smaller payments. Commissioner Klinzing referenced Page 8 of 15, Goal Attainment, stated that paragraph two should be changed to reflect the new Downtown District zoning.