EDSR MEMORANDUM 04-13-1998 - Laserfiche WebLink

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EDA Agenda Memo April 9, 1998 Page 6 • Subleases currently being negotiated are as follows: • MAS Technologies, Inc. $3 per square foot • Bio-energy, Inc. - $3 per square foot As is indicated in the above scenario, the remaining year of the initial term should show that the EDA is breaking even on its costs associated with the facility.`It also has been significantly easier to negotiate a somewhat higher cash rent when there is only a couple spacesremaining and a fairly significant demand for those spaces. Staff anticipated at the beginning of this project that it would take approximately two years to have 90 percent lease up of the facility. If things go as planned over the next couple of months, it appears the facility may be 100 percent leased at that time. This is far ahead of schedule and has come as quite a surprise to Harlan Jacobs, EDA Business Incubator Consultant,and Roger Jensen, President of the Anoka/Sherburne County Capital Fund (ASCCF). ASCCF has made a $25,000 investment in Watermark and a $25,000 investment in Protectorcare, Inc. Each of ASCCF's investments have been matched • by the Central Minnesota Initiative Fund Seed Fund Program. Staff feels that the incubator program has been very successful to date, and to this point forward will become a higher profile project beginning with the planning of an open house in the first or second week of June 1998. Recommendation Staff recommends that the EDA extend its lease with Larry Hickman for an additional two years, which is the term of April. 15, 1999, to April 14, 2001, at a base lease cost of$1.65 per square foot for 13,186 square feet of space in the former Furniture and Things building. 9. School to Work Partnership, Update- Jeff Gongoll Jeff Gongoll will present information on the School to Work Partnership. Enclosed in this packet are four brochures relating to this issue.