6.0. EDSR 02-13-2006ITEM # 6.
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MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development ~~
DATE: February 13, 2006
SUBJECT: Consider Business Incubator Tenant Lease Extension: K-Netica
Background
K-Netica became an Incubator tenant in May of 2002, subleasing 2,267 SF of space. The
company has developed a universal human language translator utilized through computer
software. The software has a number of key applications for commercial, government,
military, and personal use.
The EDA has granted K-Netica five sublease extensions (one fox) months and four fox 6
months). In addition to the stock offering, the company has made timely cash rent
payments.
Issue
K-Netica's current sublease expires on February 20, 2006. The company is requesting that
the EDA consider a sixth sublease extension lasting until April 15, 2006. This is the date
when the EDA's lease expires with building owner, Larry Hickman. Staff is working with
the company to identify a new location within the community after the lease expires.
Joe Roushax, Chief Technology Officer, will be in attendance to provide the EDA with a
brief company update.
Staff Recommendation
Staff recommends that the EDA consider granting the sublease extension to K-Netica
effective February 21, 2006 though April 15, 2006 at the following cash/stock rent rate:
$ 4 per SF cash rent ($755.66 per month)
~7 per SF stock value (divided among building owner, Incubator consultant, &EDA)
$ 11 per SF total rent value