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ITEM # 8. <br /> • <br /> City of <br /> Elk <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development <br /> DATE: February 14, 2005 <br /> SUBJECT: Consider Business Incubator Tenant Lease Extension: K-Netica <br /> Background <br /> K-Netica became an Incubator tenant in May of 2002, subleasing 2,267 SF of space. The <br /> company has developed a universal human language translator utilized through computer <br /> software. The software has a number of key applications for commercial, government, <br /> military, and personal use. <br /> The EDA has granted K-Netica three sublease extensions (one for 9 months and two for 6 <br /> months). In addition to the stock offering, the company has made timely cash rent <br /> payments. <br /> Issue <br /> Joe Roushar, Chief Technology Officer, has requested that the EDA consider a fourth <br /> sublease extension for the term of six-months through August 2005. Mr. Roushar will be in <br /> attendance to provide the EDA with a brief company update followed by a question and <br /> answer session. <br /> Staff Recommendation <br /> Staff recommends that the EDA consider granting the 6-month sublease extension to <br /> K-Netica effective February 21, 2005 though August 20, 2005 at the following cash/stock <br /> rent rate: <br /> $ 4 per SF cash rent ($755.66 per month) <br /> $ 7 per SF stock value (divided among building owner, Incubator consultant, &EDA) <br /> $ 11 per SF total rent value <br /> • <br />