5.0. EDSR 10-14-2002 Item # 5
4110 fj
City of
Elk
River
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Hall, Economic Development Assistant ft(-1-
DATE: October 14, 2002
SUBJECT: Business Incubator Update
Attachment
• Business Incubator Advisory Committee Minutes, September 17, 2002
Issues
Semi-annual Incubator Report-Harlan Jacobs, Genesis Business Centers
• Mr.Jacobs will be present at the meeting to provide the EDA with an update on current
Incubator tenants and prospects.
Incubator Advisory Committee Meeting
The Advisory Committee met on September 17th to discuss future lease options for the
Incubator Program. The Committee recommends that the EDA consider at least a one-year
lease renewal with building owner,Larry Hickman.
Recommendation
Staff recommends that the EDA consider authorizing the negotiation of a lease renewal with
building owner Larry Hickman for at least 1-2 years per the Advisory Committee's
recommendation. Terms for the lease renewal may be presented for the EDA's
consideration at a later date.
•
MEETING OF THE ELK RIVER
•
BUSINESS INCUBATOR ADVISORY COMMITTEE
HELD AT THE ELK RIVER BUSINESS INCUBATOR
TUESDAY, SEPTEMBER 17, 2002
Members Present: Louise Kuester,Jim Barthel,Larry Hickman, &Jeff Gongoll
Members Absent: Mayor Stephaie Klinzing&Jack Mowry
Staff Present: Economic Development Assistant Heidi Hall
1. New Incubator Space Concept as Part of Cymbet's Expansion
Staff reviewed the Incubator Concept as proposed in the City's expansion proposal
submitted to Cymbet Corporation and Equity Management,in which Equity Management
will construct and lease a 50,000 SF building to Cymbet. In addition, Equity Management
has indicated interest in providing 10,000 SF as dedicated lease space for Incubator tenants.
The Committee expressed approval of the concept but is aware that the City is awaiting
Cymbet and Equity Management's approval of the expansion proposal.
2. Current Incubator Lease
S The Committee agreed that since the Incubator concept in relation to Cymbet's expansion
proposal is still conceptual, that it is important that Incubator space is available in the
meantime and that the current Incubator space will suffice for the next 1-2 years.
3. Role of Advisory Committee
At the July 16th meeting, there was some concern that the Committee's role in the Incubator
Program had become a"rubber stamp" process. Therefore, the Committee discussed
several options to more clearly define their role as a committee.
• Combine the Incubator Advisory Committee with the Finance Committee to
allow for a more diverse committee.
• Hold an annual Incubator Open House to provide Committee members with
an opportunity to meet new tenants and greet old ones.
4. Recommendation to EDA regarding Current Incubator Lease
The Committee recommended that the EDA consider a lease renewal with building owner,
Larry Hickman for at least 1-2 years.
5. The meeting of the Incubator Advisory Committee adjourned at 5 p.m.
Aba.- 1
Heidi Hall
• Economic Development Assistant