EDSR MEMORANDUM 02-12-1996 - Laserfiche WebLink

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EDA Agenda Memo Page 2 February 12, 1996 • Action Requested The EDA is asked to authorize the preparation of a first amendment to the Contract for Private Development with Independent School District No. 728. 8. Rich Duggan: Upcoming Marketech Expansion Rich Duggan is the president of Marketech, Inc., 16864 Highway 10. Although the company has only been incorporated since March of 1990, it is about to begin an expansion into its first permanent facility space. This information was first presented to EDA Commissioners and interested parties in the January Prospect Status Report. Previously, Mr. Duggan attended an EDA meeting when another company was pursuing expansion opportunities in Elk River. Mr.Duggan requested a spot on the EDA agenda to present preliminary information. He will likely mention that he has had a difficult time securing a site for this project. A preferred site is currently under option with no clear sense if the option will be exercised or left to expire. Retaining quality companies like Marketech should always be a high priority for any city. In Marketech's short life, it has created numerous jobs and more will be created as a result of this project. The specifics of the expansion will be detailed by Mr. Duggan at Monday's meeting. 9. Business Incubator An opportunity was recently extended to attend an open house and tour of what appears to be a successful business incubator in Columbia Heights, Minnesota. Previously, the Elk River EDA explored the concept of a business incubator in the early 1990's. By definition, an incubator is intended to provide low-cost space for newly-formed or emerging companies. Companies obtain discounted office and production space, and often times, they are able to obtain clerical services, business counseling services, and tooling and machining space in the same facility. As companies complete their R & D phase, they are expected to leave the incubator and relocate into space that is more market rate. Another option, however, is for the company to remain in the incubator, but to begin paying market rate for its space.