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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> 0 <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Paul T. Steinman, Director of Economic <br /> p_.---- Development <br /> DATE: September 4, 1997 <br /> SUBJECT: Agenda Memo for September 8, 1997, <br /> EDA Meeting <br /> 5. 1998 Business Incubator Budget <br /> Background <br /> At its last meeting, the EDA directed staff to bring the Business <br /> Incubator budget back before the commission at its September meeting <br /> 0 for further discussion and approval. Staff has had some challenges <br /> converting originalg the incubator budget, which was based on a lease <br /> year, to a Business Incubator budget based upon a calendar year. <br /> Attached to this memo is a full description of the incubator budget for <br /> 1997, 1998, and 1999. Also attached is the original version which was <br /> approved by the EDA which is based upon a lease year scenario which <br /> is from April 15, 1997, to April 15, 1999. <br /> The bottom line is that the total exposure for the EDA has not changed <br /> whether the budget is based upon a lease year or calendar year <br /> scenario. The total bottom line (2 yr.) incubator expenditures is <br /> estimated to be $153,504. If the EDA determines to end its lease with <br /> Larry Hickman at the end of the two year period, Hickman will repay <br /> the EDA $56,100 for leasehold improvements which have been made to <br /> the building, bringing the EDA expenditures down to approximately <br /> $97,000. <br /> In approximately July 1998, staff will bring forward the incubator <br /> issue to determine if the EDA wishes to continue leasing the facility <br /> from Larry Hickman for an additional two years beyond expiration of <br /> the original term which is April 15, 1999. <br /> 0 <br /> 13065 Orono Parkway • P. O. Box 490 • Elk RiverMN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />