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Consider Lease Renewal of Business Incubator <br /> January 13,2003 <br /> Page 2 of 2 <br /> . MN) and Vertical Publishing (to St. Paul,MN). New prospects for the Incubator are being <br /> evaluated by staff and the Incubator program consultant,Harlan Jacobs. Staff is continuing <br /> to evaluate options for relocating the Incubator program in space that would accommodate <br /> high-tech companies which require city water and sewer and space designed for light <br /> industrial uses. In 2001 new incubator space was proposed as part of the Cymbet expansion. <br /> The Cymbet expansion is currently on hold due to the company's fundraising efforts. <br /> Alternative concepts are being considered for relocation of the Incubator program. <br /> Should the EDA decide not to continue the Business Incubator Program, approximately <br /> $10,640 of the original$80,000 in leasehold improvements would be reimbursed from Mr. <br /> Hickman,per the attached Repayment Agreement. <br /> The attached Lease with Mr. Hickman suggests a base rent for the third renewal term as <br /> "not to exceed$3.00 per square foot (Page 3). Per the attached staff proposal, staff <br /> recommends that the EDA consider renewing the lease with Larry Hickman for 5,813 <br /> square feet (3 suites) for up to 2-years at a rate not to exceed$2.10/s£ Over the years the <br /> city's Street/Park Department has provided maintenance/cleaning services of the Incubator <br /> space. However, due to staff and budget issues it is recommended that maintenance services <br /> be the responsibility of the building owner,Mr. Hickman. Recent tenants of the Incubator <br /> have been charged$3.00/sf cash rent and$7.00/sf stock value for sublease of the Incubator <br /> space. <br /> • In addition, staff recommends the EDA consider an appropriate fee for the retainer of <br /> Genesis Business Centers, Harlan Jacobs for incubator consulting services. Upon a <br /> recommendation from the Incubator Advisory Committee in 2001, the EDA included up to <br /> $12,000 for such services as part of the 2003 EDA Incubator budget. The EDA has paid <br /> Mr.Jacobs a monthly fee of$500 since the inception of the Incubator program in 1997. <br /> Action Requested <br /> Staff requests that the EDA consider renewal of the Business Incubator lease with Mr. <br /> Hickman for up to 2-years in accordance to the attached staff proposal. Staff also requests <br /> the EDA's consideration of the retainer fee to Genesis Business Centers for business <br /> recruitment and technical assistance provided to the EDA and Incubator tenants. <br /> • <br />