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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> • MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Marc Nevinski, Assistant Director of <br /> frEconomic Development <br /> DATE: April 24,2000 <br /> SUBJECT: Special Meeting : Discussion of Business <br /> Incubator <br /> 4. Consider Renewal of Business Incubator Lease <br /> Issue <br /> The lease with Larry Hickman of the Business Incubator Building <br /> will expire on April 14, 2001. Staff is requesting that the EDA <br /> consider renewing the lease with Mr. Hickman so that prospective <br /> tenants may consider sub-leasing space in the building for a period of <br /> at least one year. <br /> • Background <br /> In 1997, the EDA established a two-year lease with Larry Hickman <br /> for 13,186 sf of the former Furniture and Things building at $1.65/sf <br /> for use as a business incubator. That lease was renewed in April of <br /> 1998 at the same rate for the period of April 15,1999 to April 14, <br /> 2001. The EDA has an option to extend the original lease a third <br /> time for the period of April 15, 2001 to April 2003 at a rate not to <br /> exceed $3.00/sf. <br /> Currently, SolarAttic is the incubator's only,tenant. Two companies <br /> have recently ceased operations and a third, Protector Care, has its <br /> product manufactured by a local firm. Over the past several months, <br /> staff has met with five companies who have an interest in the <br /> incubator, one of which has begun the application process. <br /> Additionally, a number of these prospective companies have <br /> experienced promising developments in the last few months, such as <br /> an influx of venture capital, that increase the likelihood they will <br /> locate in the incubator. <br /> Should the EDA decide not to continue the Business Incubator <br /> Program, approximately $35,000 of the original $80,000 in leasehold <br /> • improvements will be reimbursed. <br /> 13065 Orono Parkway • P. O.Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612)441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />