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Consider Lease Renewal of Business Incubator <br /> February 14,2005 <br /> Page 2 of 2 <br /> . Current tenants of the Incubator Program are K-Netica and Lap2 Technology Corporation. They <br /> are charged$4.00/sf cash rent and$7.00/sf stock value for sublease of the Incubator space. <br /> New prospects for the Incubator are evaluated by staff and the Incubator Program consultant, <br /> Harlan Jacobs of Genesis Business Centers. Identifying a new site to accommodate high-tech <br /> companies which require city water and sewer and space designed for light industrial uses has been a <br /> challenge. This is due to finding the right building owner with interest in the Incubator Program <br /> and the cost of a new building causes a change in the economic structure of the program. <br /> The attached original lease from 1997 with Mr. Hickman suggests a base rent for the third renewal <br /> term as "not to exceed$3.00 per square foot." Currently, the EDA is leasing 6,569 square feet (3 <br /> suites) at a rate of$2.10/sf. <br /> Recommendation <br /> Per the attached staff proposal, staff recommends that the EDA consider a fourth renewal term of <br /> the Business Incubator lease with Mr. Hickman for up to 2-years for 6,569 square feet (3 suites) at a <br /> lease rate of$2.10/sf and a maintenance rate of$0.09/sf. <br /> • <br /> • <br />