Laserfiche WebLink
ITEM # 6. <br />MEMORANDUM <br />TO: Economic Development Authority <br />FROM: Heidi Steinmetz, Assistant Director of Economic Development <br />DATE: June 12, 2006 <br />SUBJECT: Consider Enforcement of Incubator Location Commitment <br />Clause for K-Netica <br />Attachment <br />Letter received on May 19, 2006 from 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 fox commercial, government, <br />military, and personal use. <br />The EDA granted K-Netica six sublease extensions: one for 9 months, four for 6 months <br />and one fox two months. <br />Upon formal notification in February that the Incubator building was sold, staff became <br />highly invoh~ed with the company's relocation efforts, based on the company's space and <br />lease rate requirements. Staff provided information on seven available lease space options, <br />coordinated site tours, and referred the company to a recruiter experienced in recruiting the <br />type of employees I{-Netica needed. <br />In March, the company's CEO verbally indicated that the company would be relocating to <br />the Twin Cities. <br />Issue <br />Staff received the attached letter on May 19`h from K-Netica indicating that the company has <br />relocated to Minneapolis. <br />There is a location commitment clause in the Memo of Understanding document held <br />between the EDA and K-Netica. The.clause reads as follows: <br />