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8.0. EDSR 01-12-2004 ITEM 1 8. • City of Elk -�-1 River MEMORANDUM TO: Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development VS DATE: January 12, 2004 SUBJECT: Consider Business Incubator Lease Extension for KnowledGenetica Background KnowledGenetica, or K-Netica,became an Incubator tenant in May of 2002, subleasing 2,267 SF of space. The EDA granted the company a six-month sublease extension in April 2003. To date, the company has made timely cash rent payments in the amount of$566.75 per month. K-Netica is developing a universal human language translator that will be utilized through computer software. The software has a number of key applications for commercial, government, military, and personal use. Issue Joe Roushar, Chief Technology Officer, has requested that the EDA consider a six-month sublease extension effective November 21, 2003 through May 20, 2004. Mr. Roushar will be in attendance to provide the EDA with a brief company update followed by a brief question and answer session. Staff Recommendation Staff recommends that the EDA consider granting a 9-12 month sublease extension to allow an additional cushion of time for the company to secure adequate expansion space in the City of Elk River.