8.0. EDSR 04-11-2005 - Laserfiche WebLink

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Item 8 • 1./ iikj River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: April I I, 2005 SUBJECT: Consider Early Release of Sublease for Business Incubator Tenant: LapTwo Technology Corporation Attachments • Sublease, September 22,2003 • Letter from LapTwo Technology Corporation President Rob Henningsgard,April 6, 2005 Background LapTwo Technology Corporation (LapTwo) became an Incubator tenant in September of 2003, subleasing 1,041 SF of space (see the attached sublease). LapTwo has developed a product that is a management and security system for internet hospitality"hot spot" providers such as restaurants, hotels,motels, and the like. The LapTwo product, dubbed "WarmSpot," decisively solves several problems and security vulnerabilities inherent in existing competitive products from T-Mobile, Cisco, and other vendors. The product will be sold as a software package. In its first year as an Incubator tenant,LapTwo's rent rate was $10 per SF ($3 cash and$7 in stock offering). LapTwo began its second year as an Incubator tenant in September 2004, when the EDA granted LapTwo the attached twelve-month sublease extension. At that time,LapTwo's rent rate was increased to $11 per SF ($4 cash and$7 in stock offering). Issue LapTwo President,Rob Henningsgard will be in attendance at the EDA meeting to provide details regarding his attached letter,which includes a company update and notice of LapTwo's graduation from the Incubator Program. LapTwo has recently moved its operations to market rate rental space located at 554 3rd Street NW in Elk River. Staff Recommendation • Staff recommends that the EDA approve Mr. Henningsgard's request to be released of LapTwo's current sublease with the following conditions: