3.0. EDSR 05-10-1999 - Laserfiche WebLink

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these dollars to Tescom. As this loan is repaid, it has created a funding source for micro enterprise projects such as the Elk River Business Incubator. Re-use • of these dollars is required to meet certain eligibility standards established by the State of Minnesota to create jobs for low/moderate income people or creation of a micro enterprise such as the incubator project. This fund should be able to continue to be a source of dollars for this project through the end of the current lease term and the two potential lease term extensions. As of April 15, 1999, the EDA has completed its payments to Larry Hickman for leasehold improvements, therefore, the facility should be to a point where it will almost cash flow on a monthly basis from rents received of the four tenants. These rents are as follows: • Protectorcare 1,561 s.f. $2.50/s.f. = $ 325.21/month • Watermark - 1,493 s.f. $2.00/s.f. _ $ 248.83/month • MAS Technologies - 2,267 s.f. $3.00/s.f. = $ 566.75/month • SolarAttic - 3,546 s.f. - $2.25/s.f. = $ 664.88/month $1,805.67/month • EDA Leases 13,186 s.f. at $1.65/s.f. $1,813.08/month Conclusion • There are two primary issues which will arise over the next twelve months of the incubator project. These issues are: • Should the EDA opt to extend the lease term from April 2001 to April 2003? This issue needs to be determined early on so that as we proceed with negotiations with potential prospects we have the ability to enter into full two year subleases. • Graduation of incubator tenants aid in relocation to other space in the community • SolarAttic graduates on April 14, 2000 • Watermark scheduled to graduate April 14, 2000 • Protectorcare scheduled to graduate April 14, 2000 • MAS Technologies scheduled to graduate May 31, 2000 Staff will likely be spending a considerable amount of time with the incubator companies over the next year to help them find suitable space for potential relocation outside the facility. Successful relocation of incubator companies is one of the most basic functions of the incubator program and will be considered a significant measuring stick as to the success of the overall program.