6.0. EDSR 03-10-1997 - Laserfiche WebLink

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• Leasehold improvements will be completed by Larry Hickman at a up cost not to exceed $81,253.00, and paid for by the EDA as follows: - $25,000.00 at beginning of the Lease Term - The balance over the initial two years, together with interest at the rate of 8.5% per year Repayment Agreement The purpose of the Repayment Agreement is to secure a repayment of a portion of the leasehold improvement costs from Larry Hickman should the EDA terminate the lease agreement within seven years of the start of the Lease Term. Larry Hickman has agreed to repay a proportionate share of the total cost of leasehold improvements, currently estimated to be $81,253.00. This repayment would be based upon a seven year depreciation schedule, should the EDA terminate its lease or determine not to renew the lease anytime within the initial seven years. Staff has attached to this memo a copy of the repayment agreement, which details on exhibit C, the actual repayment schedule. Should the EDA decide to terminate its lease,Larry Hickman will reimburse the EDA the following amounts: • At the end of the initial two year term $58,038.00 • At the end of four years $34,823.00 • At the end of six years $11,608.00 The above figures may be adjusted when the actual costs are determined at the completion of construction of the leasehold improvements. The estimate of$81,253.00 is a maximum amount, and may be reduced by approximately $5,000 - $7,000. The repayment agreement will be adjusted accordingly at completion of construction of the leasehold improvements. Action Requested Staff recommends that the EDA approve the final Lease Agreement and the Repayment Agreement between the EDA and Larry Hickman, and authorize execution of such agreements.