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Business Incubator Issues <br /> February 6, 1997 <br /> Page 3 <br /> • <br /> The major parameters of the attached sub-lease include: <br /> 0 The sub-lease incorporates all of the responsibilities of the <br /> EDA primary lease <br /> 0 The base rent will be negotiated individually with each <br /> tenant <br /> 0 The term of the sub-lease will not be longer than the term of <br /> the EDA primary lease or additional renewal terms. <br /> • What is the purpose of the Memorandum of Understanding? <br /> In discussions with the City Attorney regarding this concept,the <br /> suggestion was made to completely separate the real estate lease <br /> portion of this project with the specific details of the Business <br /> Incubator program. Staff has done this in that the EDA primary <br /> lease and the sub-lease only deal with the issues of base rent,term, <br /> and other standard real estate lease issues. <br /> 40 The Memorandum of Understanding, as attached to this memo, will <br /> describe and set forth the details of the Companies participation in <br /> the Business Incubator program. Such details include the following: <br /> 0 The stock-barter transaction <br /> 0 The member Companies reimbursement (stock) to EDA for a <br /> percentage of the cost of leasehold improvements <br /> 0 A location commitment by the company to continue its <br /> operations within the City of Elk River <br /> 0 A summary of company responsibilities including: <br /> • Financial statements and employee reports to be made <br /> available to the EDA <br /> ♦ Annual objectives of the company to be made available <br /> to the EDA <br /> • Regular and board meetings which are open to <br /> attendance by EDA representatives. <br /> 0 A description of how the company will cooperate to meet <br /> requirements with regard to creating/retaining low to <br /> • moderate income jobs <br />