06 12 2006 EDA MIN - Laserfiche WebLink

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Economic Development Authority D4inutes June 12,2006 Page 2 include an assessment of the 2002-2004 Plan and development of a 2007-2009 Action Plan. Three consultants responded to the Request For Proposals; Duckox & Associates, Wolf Marketing & Media, and Barsness Consulting Services. The Commission is asked to accept the Marketing Committee's recommendation to consider Wolf Marketing & Media to facilitate and complete the Plan update. Comnussionex Tveite, Marketing Committee representative, stated that Wolf Marketing & Media was chosen based on three findings: 1) the company has real estate experience, 2) they would provide a "fresh set of eyes", and 3) their cost was the lowest. Cotmmissioner Gumphxey concurred that a new company could bring something new "to the table". President Gongoll asked if staff anticipated afull-scale EDA workshop to discuss the update. Ms. Steinmetz stated that two meetings of the Marketing Comtnittee are proposed. Director of Economic Development Catherine Mehelich stated that there could be possibly be a joint workshop of the EDA and Marketing Committee. She stated that input is needed from the Commission regarding commercial development, and whether ox not the marketing Focus should continue as the "light industrial hub of the northwest metro", or if the desire is to tum their focus to medium-to-large industrial companies and facilities. Commissioner Dwyer stated that he felt the EDA would be able to provide input on marketing incentives at a joint workshop meeting, as well. Ms. Mehelich stated that staff will discuss with the consultant the possibility and tuning of an EDA workshop for additional direction. MOTION BY COMMISSIONER KLINZING, SECONDED BY COMMISSIONER MOTIN TO APPROVE THE CONTRACT WITH WOLF MARKETING & MEDIA FOR UPDATE OF THE STRATEGIC INDUSTRIAL MARKETING PLAN. MOTION CARRIED 7-0. 6. Consider Enforcement of Incubator Location Commitment Clause - K-Netica Ms. Steinmetz stated that staff had received a letter dated May 19, 2006 from K-Netica indicating that the company has relocated to Minneapolis. She provided background information regarding K-Netica as an Incubator tenant since May of 2002, including their product, sub-lease and extensions and efforts made by staff to retain the company in Elk Ricer. She stated that since K-Netica relocated, they axe bound to a location commitment clause as part of the Memo of Understanding between the EDA and K-Netica. Commissioner Dwyer asked what the value of K-Netica's stock was. Ms. Steinmetz stated that it was $1 per share. Commissioner Farber stated that he was not sure why the EDA would not hold them to the clause. Commissioner Tveite stated that K-Netica was offered a number of viable options for relocation in Elk River. He agreed that the company should be held to the clause. Commissioner Motin asked if K-Netica had a stock offering recently, and if not, how was staff able to arrive at a value for the stock. Ms. Steinmetz explained that the amount was determined by the company's latest round of venture capital funding, which was in December 2005. Commissioner Motin noted that the EDA would be owed twice the $1 price of the EDA's 26,451 shares, which would equal $52,901.