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Private property owner commitments <br /> • To provide 10,000 to 15,000 s.f. for use as a business incubator for the period of at <br /> least two full years. <br /> • To provide other building maintenance services for the same period including <br /> lawnmowing, snow removal, general bldg. maintenance. <br /> • To remain open to a ongoing relationship with the City if the project is deemed <br /> successful. <br /> Example below based on 10,000 square feet: <br /> Landlord asking price - $5 psf X 10,000 square feet= $50,000 <br /> EXPENSES: <br /> • Annual operating costs, including taxes, electricity, gas, sewer/water: <br /> $1.22 psf- 1.75 psf $12,200 - 17,500 <br /> • Landlord profit $3.25 psf- 3.78 psf $32,500 - 37,800 <br /> Total $4.47 psf- 5.53 psf Total $44,700 - 55,300 <br /> INCOME: <br /> • Rental income $2.00 psf-2.25 psf $20,000 - 22,500 <br /> • Genesis $ . 82 psf- 1.09 psf?? $ 8,200 - 10,900 <br /> • • EDA $ . 82 psf- 1.09 psf?? $ 8,200 - 10,900 <br /> • Landlord $. 82 psf- 1.09 psf $ 8,200 - 10,900 <br /> Total $4.47 psf- 5.53 psf Total $44,700 - 55,300 <br /> ISSUES <br /> • Master Lease between EDA and Property owner <br /> Standard master lease with following parameters - <br /> ♦ two year term, options to extend for additional years?? <br /> • EDA to cover operating costs <br /> • Property owner to provide general maintenance, snow removal, etc. <br /> • Sub-lease between EDA and Tenants <br /> Provide a guarantee, as much as possible, that the business would grow and <br /> expand in Elk River/Sherburne County <br /> Tenants to provide leasehold improvements -minimal <br /> • Management contract between EDA and Genesis <br /> Discussing $ amt. <br /> • <br />