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ITEM # 6. <br />ver <br />MEMORANDUM <br />TO: Economic Development Authority <br />FROM: Heidi Steinmetz, Assistant Director of Economic Development ~~ <br />DATE: February 13, 2006 <br />SUBJECT: Consider Business Incubator Tenant Lease Extension: K-Netica <br />Background <br />K-Netica became an Incubator tenant in May of 2002, subleasing 2,267 SF of space. The <br />company has developed a universal human language translator utilized through computer <br />software. The software has a number of key applications for commercial, government, <br />military, and personal use. <br />The EDA has granted K-Netica five sublease extensions (one fox) months and four fox 6 <br />months). In addition to the stock offering, the company has made timely cash rent <br />payments. <br />Issue <br />K-Netica's current sublease expires on February 20, 2006. The company is requesting that <br />the EDA consider a sixth sublease extension lasting until April 15, 2006. This is the date <br />when the EDA's lease expires with building owner, Larry Hickman. Staff is working with <br />the company to identify a new location within the community after the lease expires. <br />Joe Roushax, Chief Technology Officer, will be in attendance to provide the EDA with a <br />brief company update. <br />Staff Recommendation <br />Staff recommends that the EDA consider granting the sublease extension to K-Netica <br />effective February 21, 2006 though April 15, 2006 at the following cash/stock rent rate: <br />$ 4 per SF cash rent ($755.66 per month) <br />~7 per SF stock value (divided among building owner, Incubator consultant, &EDA) <br />$ 11 per SF total rent value <br />