EDSR MEMORANDUM 04-13-2000 - Laserfiche WebLink

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• Upon receipt of Mr. Weicht's tax rebate financing application, staff completed the ratings worksheet used to help analyze such proposals. The proposed project scored a "33", which equates to a "moderately desirable" project. Staff frequently receives inquires for the type of space Mr. Weicht is proposing to construct. Subsequently, although no tenants have, as yet, committed to the space, it is likely that the building will lease quickly. Action Requested Staff recommends that the EDA consider Mr. Weicht's request for a four year tax rebate period beginning with taxes payable in 2002. If the EDA approves the project, its recommendation will be sent to the City Council for final approval on April 17, 2000. Attachments • Tax Rebate Financing Application i. But-For analysis — Exhibit D ii. Site Plan iii. Project and Company Narratives — Exhibit B • Staff's Tax Rebate Financing Projection Worksheet • Letter of Commitment from The Bank of Elk River • 9. Consider Request by Ed Palmer of SolarAttic for Incubator Sub- Lease Extension Issue Solar Attic's lease at the Elk River Business Incubator will expire on April 14, 2000. Ed Palmer, CEO of Solar Attic, is requesting that the EDA grant a second extension of the lease for up to a year. Background SolarAttic was one of the first tenants in the incubator program and entered into its initial sub-lease with the EDA on March 31, 1997. In December of 1998, the EDA extended the sub-lease agreement with SolarAttic for one year, with the understanding that the lease would not be extend a second time. SolarAttic is presently the only company in the incubator. In light of the incubator's current vacancy rate, the EDA may wish to consider renegotiating a lease with SolarAttic at a market rate of$4.50/sf for up to one year and require that the entire rent be paid in cash, not stock. Currently, SolarAttic is paying $4.00/sf in rent, with $2.25/sf being paid in cash and $1.75/sf paid in stock. At $4.50/sf, SolarAttic's would pay $1330 per month to lease its current space of 3546 sf. One option to • reduce costs would be for SolarAttic to move its entire operations into one 2505 sf suite, which would lease at $939 per month.