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EDA Agenda Memo <br /> April 9, 1998 <br /> Page 4 <br /> • The Finance Committee unanimously supported a recommendation to <br /> the EDA that the request to subordinate its loan to an additional <br /> First National Bank loan of$36,000 be approved by the EDA. <br /> Recommendation <br /> Staffs recommendation concurs with that of the Finance Committee's <br /> to approve a subordination of the EDA micro loan to an additional <br /> $36,000 loan from First National Bank of Elk River. <br /> 8. Consider Renewal of Business Incubator Lease with Larry <br /> Hickman <br /> On April 15, 1997, the EDA entered into a two year lease with Larry <br /> Hickman for approximately 13,186 square feet of space in the former <br /> Furniture and Things building. As of this date there is approximately <br /> one year left of this initial term. It is appropriate at this time to <br /> discuss the EDA's option of renewing this lease for an additionaltwo <br /> years which will be from April 15, 1999, through April 14, 2001. <br /> This discussion is timely due to the fact that staff is currently <br /> • negotiating a lease arrangement with the fourth business incubator <br /> company- MAS Technologies. In negotiations with this company, <br /> they have made very specific their request for a minimum two year <br /> lease. On the advice of the city attorney, it is not appropriate for the <br /> EDA to negotiate subleases with incubator companies which <br /> supercede our prime lease with Larry Hickman. In the case of the <br /> other two tenants which recently joined the incubator program <br /> (Watermark and Protectorcare), their subleases end on,April 14, 1999, <br /> -: coinciding with the end of the EDA's prime lease with Larry <br /> Hickman. We have the option to extend the sublease with Watermark <br /> and Protectorcare should the EDA elect to extend its term of the lease <br /> for an additional two years. <br /> The initial parameters of the lease deal with Larry Hickman are as <br /> follows: <br /> • Initial two year term, 3 options to extend term @ 2 yrs. each <br /> • $1.50 per square foot <br /> • 13,186 square feet leased <br /> • Larry Hickman to pay lease hold improvements <br /> approximately $75,000 - and amortize such lease hold <br /> • improvements over the initial two year term of the lease at <br /> 8.5% interest <br />