8.0. EDSR 08-09-2004 - Laserfiche WebLink

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Consider EDA Year 2005 Budget August 9,2004 EDA Meeting Page 2 of 3 • • Other Professional Services $ 10,000 o Ehlers &Assoc., HRGreen, etc. services • Telephone (shared with HRA) $ 200 • Postage (some shared with HRA) $ 2,000 • Travel, Conference &Schools (shared with HRA) $ 5,600 • Advertising/Marketing $ 56,600 o Advertising/Public Relations/Website $ 49,500 o Community Profile (Design&Print) $ 1,500 o MN Technology Assistance Program $ 5,000 o Elk River Rotary Membership $ 600 • Publishing $ 1,000 • Insurance $ 500 • Dues & Subscriptions (shared with HRA) $ 1,400 • Miscellaneous o Chamber of Commerce July 4th contribution $ 6,000 o Initiative Foundation contribution $ 2,500 • Transfer out to General Fund for support staff, etc. $ 17,000 Total EDA Year 2004 Proposed Expenditures $207,900 Total EDA Year 2004 Projected Revenues $266,900 The proposed budget includes a contribution to the Initiative Foundation in 2005. Last year the EDA authorized an annual contribution of$2,500 to the Initiative Foundation, up to the total amount requested from the City of Elk River ($7,429 net balance). Information about the Initiative Foundation's $5,000 request for year 2005 is attached. The projected balance of$59,000 will be put into the EDA reserves for any future project expenses. Business Incubator Budget Summary The EDA Business Incubator budget is based upon the assumption that the program continues as it has over the past seven years in Larry Hickman's building space. In 2003 the EDA reduced the lease space to 3 suites (6,669-square feet) for a 2-year extension on the Business Incubator lease with Mr. Hickman. The building owner handles the building maintenance. The current lease expires April 15, 2005. Mr. Hickman is open to extending the EDA's lease for another 12—24 months at the current rate of$2.10-per square foot. Staff continues to explore options for more "technology-friendly" space. The EDA Business Incubator budget includes projected revenue from rent expected in the amount of$15,000 in 2005, assuming 31%vacancy rate. The projected rent revenue assumes cash rent per square foot at$4.00. A base rent value of$10.00 per square foot has been used to determine the cash rent/stock value conversion. A cash rent of$5.25 would be • required from all 3 tenants in order to breakeven on the annual operating expenses.