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EDA Meeting 2 <br /> March 12, 1997 <br /> Business Incubator Financing/Budget <br /> Illper square foot gross rent of$2.00. In year three and four staff estimates the <br /> incubator will be 90% occupied at an average per square foot gross rent of <br /> $3.00. The expenses listed are all firm costs with the exception of signage at <br /> $3,000.00 and a contingency estimate of$5,000.00. A budget for year one <br /> and two is listed on the second page of the financial analysis attachment. <br /> Such budget is as follows: <br /> Year <br /> • Lease Cost $50,502.00 <br /> • Signage $ 3,000.00 <br /> • Leasehold Improvements $25,000.00 <br /> • Genesis Business Centers $ 6,000.00 <br /> • Contingency $ 5,000.00 <br /> Total: $89,502.00 <br /> Year 2 <br /> • Lease Cost $50,502.00 <br /> lip • Signage $ 0.00 <br /> • Leasehold Improvements $ 2,500.00 <br /> • Genesis Business Centers $ 6,000.00 <br /> • Contingency $ 5,000.00 <br /> Total: $64,002.00 <br /> An analysis of the EDA's short term and ongoing investments follows on page <br /> two of the financial analysis attachment. Staff has provided the estimated <br /> best and worst case investment scenarios. As is indicated, at the end of year <br /> two, the EDA would be able to terminate the lease and, with Hickman's <br /> repayment for his proportionate cost of leasehold improvements of <br /> $58,038.00, would have a total investment cost of approximately $95,000.00. <br /> At the end of year two, if the EDA were to continue the lease for an <br /> additional two years,there would be no Hickman repayment for leasehold <br /> costs and the EDA's investment at the end of the first two years would be <br /> approximately $153,000.00 (worst case scenario). <br /> On page three of the financial analysis attachment, staff has laid out the <br /> repayment schedule which applies to the total cost of leasehold <br /> • improvements. This repayment schedule has been agreed to by Larry <br />