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7.0. EDSR 09-09-2002 \ ' Item # City ik River TO: Economic Development Authority FROM: MEMORANDUM Heidi Hall, Economic Development Assistant DATE: September 9, 2002 7 SUBJECT: Consider Business Incubator Lease Extension for Vertical Attachment Publishing • General Information From Vertical Publishing's Web Site • Background Vertical Publishing became an Incubator tenant in July of 2000, subleasing the 2,267 SF of space in Suite 120. The company's mission is to enable print publishers of business magazines to place their content on the Internet. In September of 2001, the EDA extended Vertical Publishing's sublease and the company moved into Suite 230 (1,493 SF) due to the company's request to rent less space. For the past year,Vertical Publishing has been charged$345.15 per month in cash rent. The company has not paid cash rent nor actively occupied the space until July of 2002 with the addition of new CEO,Ben Moyer. Staff has provided the company time to re-establish itself in the Incubator while nine months of rent remains outstanding. Issue Ben Moyer, the new CEO of Vertical Publishing,wishes to remain in the Incubator for a third lease term. The company has made prompt rent payments since July and has indicated interest in making additional payments during the requested lease extension to bring the company's account current. In addition,Mr. Moyer would like rent Suite 130 (1,041 SF) instead of Suite 230 (1,493 SF) due to the company's need for less space. Since a decision has not been made as to whether or not the EDA's current lease with Larry Hickman will be extended beyond April of 2003, the duration of Mr. Moyer's lease extension request is affected. SIn July, the Business Incubator Advisory Committee expressed interest in continuing the Incubator Program beyond April of 2003. The Committee will meet again on September • • 17th to discuss the issue in more detail. The recommendations resulting from the September 17`' meeting will be brought to the EDA in October. Recommendation Staff recommends that the EDA consider the following options: • Consider a six-month lease extension for Vertical Publishing to rent Suite 130 (1,041 SF) effective from September 15, 2002 to April 14, 2003 at the rate of$10.00 per SF ($3.00 paid in cash and$7.00 paid in stock). In addition,pay upfront or pay outstanding cash rent over time. • Pay outstanding rent in equal stock value. • Waive outstanding rent since the company did not actively occupy the space. • Deny the lease extension request and require payment of outstanding rent. Vertical Publishing Page 1 of 1 A • yEAficiii. LIVE HELP r PUBLISHING Content Management Sery September 5, *.T z.e•,....-r-trt Pa ' — wu ", • •- , • •r ,..- Cct t 4.,„.„,,,,,•,._,.:el "%,',1,",,,,i1 is:'14 ,,:',.. zervices , _,.,i,,,,es.,----, ,--,A,‹, wmte , - , = contact u_s to learn more on how vertical publishing can riiN provide your publication the online status it deserves. / ' Al ' '' ..,,,, . - '''\7Z • \.,:.‘ ,......\ 4'4 A / 0 itT , 4............ :-,LI Bi 751 i./-it3 !... • A'As, ,•,1,4''' ,*,,, -,.,„"ali'',11-2::).. .,,.- gra4;rt-,10s , Vertical Publishing,inc.provide affordable ordirie content „,,.4.. * .,” 44' '''' .4 management services for small to ' 1 rt.--:t medium publishers al..',.. i,..." z . CD Copyright 2002 Vertical Publishing • http://www.verticalpublishing.com/ 9/5/02 Vertical PublishingVERTICAL , Page 1 of 1 LIVE HELP PUBLISHING Un hi September 5, r About rra Vet ss, e about Vertical Publishing was incorporated in about us 2000. contact info management team company news clients Vertical Publishing, Inc provides a service that enables a wide variety of organizations to convert digital print files into Internet optimized content efficiently. Using proprietary software,this service enables companies to place their magazines,employee newsletters and many other communications on the Internet. • PartnersVertical Publishing's proprietary software addresses all key aspects of content management for companies, including content entry, management, contact us to learn more on marketing and repurposing. It outputs content into HTML, E-Mail,wireless, how vertical publishing can XML and other formats available today or anticipated in the future. It delivers • provide your publication the these simply and quickly without the need for expensive and complex back- online status it deserves. office systems. Y/ ',Copyright 2002 Vertical Publishing • http://vvww.verticalpublishing.com/about_home.htm 9/5/02 Vertical Publishing Page 1 of 1 �� HELP i avaam �� PUBLISHING Content Management Sery September 5, Contact information 7:::, Click here to request additonal information. about us contactinfo Headquarters management team 0�0� Ve�ioa| Publishing, Inc companyoe°/ �=� 16820 Highway 10,Suite 120 clients Elk River, Minnesota 55330 partners �� Phone: (651)784-4144 Fax: (651)602-9277 contact us to learn more on info@verUoa|pub|iohing.00m how vertical publishing can provide your publication the Sales Office III online status it deserves. 158 Connie Lane Minneapolis, MN 55014 Phone: 651-261-1529 oo|oo@vorUoa|pub|iohing.00m Careers info@vortioa|pub|iohing.oum E. 7 -0Copyright uVozvamca|Publishing • http://www.verticalpublishing.com/about_contactus.htm 9/5/02 Vertical Publishing Management TeamPage 1 of 2 ALIVE HELP PUBLISHING Unbval Content Management Sere September 5, ChairmanArnold A.Angeloni about us contact info management team company news clients Mr.Angeloni is currently president of Gateway Alliance II,a consulting firm providing services to early stage companies.Prior to co-founding Gateway in 1996,Mr.Angeloni held various senior executive positions with Deluxe Corporation,a publicly held printing and financial services company.Over his 30-year career with Deluxe,Mr.Angeloni was artners contact us to learn more on how vertical publishing can provide your publication the online status it deserves. p President of the$1.2 billion Check Printing Division,and was also President of the Business Systems division,a$400 million business unit. Mr.Angeloni earned an MBA from Marquette University and a BA in business management from the Detroit Institute of Technology.Mr. Angeloni also serves on the board of directors of the Angeion Corporation,Worldknit.com,Inc.and the United Way of St.Paul. President&CEO Benjamin G. Moyer In late 1999,Mr.Moyer co-founded Synergy Services,Inc.,a successful Minnesota based technology services company.Synergy Services provides high-level technical support to companies like Yahoo!Broadcast and Arnica Insurance,while providing IT consulting services to many local establishments.Mr.Moyer's primary responsibilities included finance, marketing,customer service,and human resources.Prior to starting Synergy Services,Mr.Moyer worked 8 years for Cardinal Glass Industries as the IT Manager for one of its Wisconsin facilities.During his tenure at Cardinal,Mr.Moyer was involved in product development and marketing, resource management,customer service training,production process flow,software development,and time study analysis. o Copyright 2002 Vertical Publishing VP Business Development David Held Mr.Held has several years of experience in marketing,team building and management in the"B to B"industry.He has worked the past few years in the publishing industry integrating email-marketing concepts into traditional print marketing models.During this time Mr.Held has also • managed the circulation marketing campaigns for four business to 1111) business trade publications.Prior to this Mr.Held successfully relocated an association management company from Arizona to Minnesota http://www.verticalpublishing.corn/about_management.htm 9/5/02 Vertical Publishing Page 2 of 2 reaching new membership levels while undergoing a complete personnel • turnover.In this role,he oversaw eight professional trade associations totaling membership of over 15,000 and the staff that supported these associations. Shareholder&Consultant Charles Newman Mr.Newman has more than 20 years experience in business-to-business marketing consultancy and the complete range of marketing services.He has worked for large and small clients in a wide range of sectors.Mr. Newman published several internet newsletters over the last five years. He has extensive experience in new market penetration and development.Mr.Newman's industry experience includes:advertising, distribution,engineering,export,government/local authorities,healthcare, information technology,leisure,office services,travel and tourism.Mr. Newman also has a working knowledge of French.Mr.Newman has worked with companies in Western Europe and Central America. • • http://www.verticalpublishing.com/about_management.htm 9/5/02 Vertical Publishing Page 1 of 1 LIVE HELP Unavatto. III VERTAICAL PUBLISFilr\IG Content Management Sery : ' ,-.,' .: -,',,i‘i::::::61 ., ..„, Ailisg.t:ALik'P' : '',,-,, :!' -:: . September 5, ,:,,,', _-,,,,,,, - ..,,' ' -::: : .. Vertical Publishing Clients i:::: ,,,,,,,,,,/, , ,,•,' ,,,,s,..),- ,'i,t‘tit ' 4 ,',:,^,•.'*/.'. V11:00012ri ood.".00.0.a04,00r ° about us ,ovvot,1 -,, ,,-2. fie contact info _...e t_,.,,,i 01/4),L.- -.,' ,-....., Management team • ' f 'TV Jt". ,'' company news '' ''',?. M ctients partners LINE ' , I 14,_, I 2. e 1'ltla •• : ' contact us to learn more on , ,, ... how vertical publishing can * ‘N.,. • . „:<, , , ° .'' Ift,,,,, ‘• ' ,,,,,tol°,61104''' 40 provide your publication the Fmmionline status i 4,,,,,,,,,,..'*1..,_,,,,,,,,,,,,. • . w........,,,,...„„ = Poowwddeerr and BulkEngineering OnlineEngineering P Engineering International MinnesotaowdarcBusiness Pn g I WkMaterialsr idCaPublishingrg°datBNews nuewti lnter Communities International ArgentdorersCommunicatnioa BNewsn NauticalBulk A CSC Publishing 0 Copyright 2002 Vertical Publishing III 9/5/02 http://www.verticalpublishing.com/about_clients.htm