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Business Incubator Issues <br /> February 6, 1997 <br /> Page 6 <br /> The city attorney has indicated his desire to keep the EDA up front <br /> for leasehold improvements to a maximum 25 000. Staff <br /> payment P $ , <br /> has not discussed this issue in detail with the building owner, but if <br /> the costs are likely to exceed $25,000 up front, staff would propose <br /> the following options: <br /> 0 Pay a portion of the costs in year one and a second portion of <br /> these costs in year two. <br /> 0 Add the total cost of the EDA leasehold improvements to the <br /> base rent and pay over the initial two year term of the lease. <br /> ♦ If EDA leasehold costs are $40,000,this would equate <br /> to an additional $3.03 per square foot over the initial <br /> two year term of the proposed lease. We would then be <br /> Teasing the space for $4.53 per square foot. <br /> The second option would mean that the building owner has to be <br /> willing to carry the cost of these leasehold improvements over a <br /> two year period. This issue has not been discussed in detail <br /> with the building owner. <br /> 10 • What are the requirements for use of CDBG dollars in this <br /> project? <br /> The following major objective needs to be fulfilled with regard to the <br /> total number of jobs created within the Business Incubator facility <br /> throughout the lease term: <br /> 0 The creation or retention of permanent jobs where at least 51 <br /> percent of the jobs, computed on a full time equivalent basis, <br /> involve the employment of low and moderate income persons. <br /> • In the Business Incubator project, the aggregate <br /> number of jobs created must be documented to show <br /> that at least 51 percent of the jobs are held by, or are <br /> available to, low and moderate income persons. <br /> • Jobs in aggregate that are not held or filled by a low or <br /> moderate income person may be considered to be <br /> "available" to low and moderate income persons only if <br /> special skills that can only be acquired with substantial <br /> training or work experience or education beyond high <br /> school are not a prerequisite to fill such jobs, or the <br /> business agrees to hire unqualified persons and provide <br /> training; and, that the recipient and the assisted <br /> businesses take actions to ensure that low and <br />