|
years each at a cost of$1.85 per square foot and $3.00 per square foot
<br /> • respectively.
<br /> The EDA paid Larry Hickman over the first two years of the lease term,
<br /> approximately $80,000 for leasehold improvements to the facility. Mr.
<br /> Hickman agreed, in turn, that a certain percentage of these leasehold costs
<br /> would be reimbursed to the EDA should we elect not to extend the lease at a
<br /> certain time in the future. The repayment agreement amortizes the leaseholds
<br /> over a seven year period. The repayment schedule currently shows that if the
<br /> EDA were to elect not to extend the lease term beyond the current ending date
<br /> of April 14, 2001, Mr. Hickman would repay the EDA $34,823 for the leasehold
<br /> improvements completed in the building in 1997.
<br /> An analysis of the revenues and expenses for 1997, 1998, and to April 30,
<br /> 1999, is as follows:
<br /> 1997 1998 1999 (to 4/30)
<br /> Revenues to EDA - Rent $ 4,255 $14,978 $ 4,742
<br /> Expenses
<br /> Leaseholds $46,903 $38,793 $ 7,301
<br /> Rent Paid by EDA $14,832 $19,776 $ 6,592
<br /> Signage $ 1,873 --- _
<br /> 411 Cleaning $ 509 $ 442 $ 0
<br /> IP Consultant Retainer $ 4,500 $ 6,000 $ 2,000
<br /> Supplies --- $ 1,269 $ 100
<br /> Advertising/Marketing --- $ 1,313 $ 0
<br /> Total Expenses $68,617 $67,593 $15,993
<br /> What follows are the original projections for revenues and expenses for the
<br /> business incubator project:
<br /> 1997 1998 1999 (to 4/30)
<br /> Revenues to EDA Rent $ 7,083 $12,833 $4,083
<br /> Expenses
<br /> Leaseholds $46,903 $38,793 $ 7,301
<br /> Rent Paid by EDA $14,832 $19,776 $ 6,592
<br /> Signage $ 3,000 -- ---
<br /> Cleaning $ 0 $ 0 $ 0
<br /> Consultant Retainer $ 4,500 $ 6,000 $ 2,000
<br /> Supplies --- $ 0 $ 0
<br /> Advertising/Marketing --- $ 0 $ 0
<br /> Contingency $ 5,000 $ 5,000 $ 2,000
<br /> • Total Expenses $74,235 $69,569 $17,893
<br /> The funding source for the business incubator project consists of recycled state
<br /> dollars which were granted to the City of Elk River, and the city in turn loaned
<br />
|