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Business Incubator Issues <br /> February 6, 1997 <br /> Page 4 <br /> Co• <br /> The company requirement to provide its vendor contracts to <br /> the EDA. These vendor contracts will be used to provide <br /> possible opportunities to Elk River manufacturing companies <br /> in order to create and retain jobs within our community. <br /> • What are current financial projections and how are <br /> leasehold improvements proposed to be paid? <br /> As shown on the attached Business Incubator financial projections <br /> sheet,the following expenses are anticipated in year one: <br /> o EDA primary lease $19,779 <br /> O Signage $ 3,000 <br /> 0 Leasehold Improvements $25,000 <br /> 0 Genesis Business Centers $ 6,000 <br /> 0 Contingency $ 5,000 <br /> Staff has also made some assumptions regarding the amount of <br /> square feet in the space which could be leased in year one and at <br /> what cost: <br /> 0 5,000 square feet leased in year one at $2.00 per square foot <br /> gross (average) <br /> Staff has also made assumptions regarding the stock-barter <br /> transaction in that it is anticipated that the EDA would receive <br /> $2.00 per square foot in the form of stock in the companies for each <br /> square foot of space leased by the company, in addition to stock in <br /> return for a percentage of the cost of leasehold improvements. <br /> There currently are three significant figures which could vary <br /> dependent upon further negotiations with tenants and the building <br /> owner. These figures are as follows: <br /> 0 Rent paid to EDA Anticipated $2.00/square <br /> foot average <br /> 0 Stock-barter transaction (for rent) Anticipated $2.00/square <br /> foot <br /> 0 Stock-barter transaction (for leaseholds) Anticipated percent of <br /> total leaseholds based <br /> upon square footage <br /> leased by Company <br />