10.0. EDSR 04-08-1996 - Laserfiche WebLink

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Genesis Business Centers,Ltd. ? it 8/4/96 (12:14AM D 2/4 • • Scenario A for the Establishment of an Incubator in Elk River, Minnesota: Utilization of County Administrative Building The County Administration building located on the western edge of Highway 10 would be acquired by the newly established Elk River Development Corporation ERDC-see below for further details) as quickly as possible under a 'rent with option to buy basis.The rental term would be for a period of not less than two years subject to a ninety (-90-) day cancellation clause exerciseable by the County if a third-party buyer agrees to purchase the building and the ERDC does not exercise its right of first refusal to match the price offered by the third party. The ERDC would also have a right to purchase the building at a fixed price(at a price to be negotiated but at a price that is not more than the current advertised price)for a period of not less than two years. The ERDC would agree to pay as'rent' , during the term of this rental period, all of the operating costs ( electricity, sewer, water, heating, cooling, snow removal, grass • cutting, etc., but not property taxes, if any). The ERDC would seek special funding in order to 'prime the pump'from one or more of the following organizations in order to help defray as much as possible of the operating costs: •Minnesota Technology, Inc. •SotaTech •Blandin Foundation •Northwest Area Foundation •Minnesota Department of Trade and Economic Development Other appropriate individuals, trusts, agencies, and groups that support economic development in'greater Minnesota' would also be solicited for support. The building would be utilized as a business incubator. The fair market rental value of the property would be calculated based upon comparable commercial facilities in the community.The prospective incubator tenants would then be quoted a gross rate of $ X per square foot per year ( the fair market value ). The cash operating costs would be calculated as being $ Y per square foot per year. The prospective incubator tenants would then be asked to pay the$Y per square foot of occupied space in cash and the difference between the fair market value and the cash operating costs ( $ X - $ Y ) would be bartered for the stock of the incubator tenant.The barter would occur on the basis of the fair market value of the incubator companies stock( as determined by its offering memorandum or recent arms-length transactions). •