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ITEM # 5. <br /> • <br /> City of <br /> Elk. <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development <br /> DATE: August 8, 2005 <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 /> • <br /> military, and personal use. <br /> The EDA has granted K-Netica four sublease extensions (one for 9 months and three for 6 <br /> months). In addition to the stock offering, the company has made timely cash rent <br /> payments. <br /> Issue <br /> Joe Roushar, Chief Technology Officer, has requested that the EDA consider a fifth <br /> sublease extension for the term of six-months through February 2006. Mr. Roushar will be <br /> in attendance to provide the EDA with a brief company update. <br /> Staff Recommendation <br /> Staff recommends that the EDA consider granting the 6-month sublease extension to <br /> K-Netica effective August 21, 2005 though February 20,2005 at the following cash/stock <br /> 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 /> • <br />