03-10-1997 EDA MIN - Laserfiche WebLink

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EDA Meeting Minutes March 10, 1997 Page 2 e Discussion followed regarding the amount of cash rent which would be required from prospective tenants. Chair Dwyer and Commissioner Duitsman felt that a minimum amount of cash rent should be established. Paul felt the EDA needed to work with each tenant individually and determine a starting rent and increase the amount as the business becomes established. COMMISSIONER DUITSMAN MOVED APPROVAL OF THE BUSINESS INCUBATOR FINANCING AND BUDGET AS DETAILED IN THE STAFF REPORT TO THE EDA DATED MARCH 5, 1997. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 6. Approve Final Lease Aareement and Repavment Aareement with Larry Hickman Paul reviewed the major parameters of the final lease agreement with Larry Hickman as follows: e · EDA to lease approximately 13, 186 square feet within the former Furniture and Things building · Net leasable space equals approximately 11, 072 square feet · The term of the lease is from April 15, 1997 to April 14, 1999 · Base rent is $1 .50 per square foot or $19,779.00 per year · EDA has option to extend the Lease Term by six full years at the following cost: -First renewal term (two years) $1.65 per sq. ft. or $21 ,757.00 per year -Second renewal term (two years) $1.85 per sq. ft. or $24,394.00 per year -Third renewal term (two years) not to exceed $3.00 per sq. ft. or $39,558.00 per year · Leasehold improvements will be completed by Larry Hickman at a cost not to exceed $81,253.00 and paid for by the EDA as follows: -$25,000.00 at beginning of the Lease Term -The balance over the initial two years, together with interest at the rate of of 8.5% per year. Paul noted if the EDA decides to terminate its lease, Larry Hickman will reimburse the EDA for leasehold improvement costs as follows: At the end of the initial two year term A t the end of four years A t the end of six years $58,038.00 34,823.00 11,608.00 COMMISSIONER GONGOLL MOVED APPROVAL OF THE FINAL LEASE AGREEMENT AND REPAYMENT AGREEMENT BETWEEN THE EDA AND LARRY HICKMAN, AND AUTHORIZE EXECUTION OF SUCH AGREEMENTS. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0. Commissioner Gongoll expressed his thanks on behalf of the EDA to Larry Hickman for his efforts and cooperation in making the Business Incubator Project possible. 7. Approve Business Incubator Advisory Committee e CHAIR DWYER MADE THE FOLLOWING APPOINTMENTS TO THE BUSINESS INCUBATOR ADVISORY COMMITTEE: