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7.0. EDSR 12-10-2001 Item 7. S City of Elk -�- River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: December 10, 2001 SUBJECT: Business Incubator Six Month Review Once again it is appropriate at this time to review the past six months of activity associated with the Business Incubator Program. A memo from Mr. Harlan Jacobs,Business Incubator Consultant,is attached recapping the status of prospects that he has been working with for consideration into the Incubator Program. • The current incubator tenants include Vertical Publishing, Solar Attic (at market rate lease), and most recently Bixby Energy Systems, Inc. Attachment • Business Incubator Prospect Summary from Harlan Jacobs, December 5, 2001 • Here's a summary of the prospects for the incubator program. Regards Harlan 5 December 2001 Business Incubator Prospect Summary IntelliPatch, Inc. Michael W. Geatz,President IntelliPatch is developing specialty sensors for skin applications. Its technology must be reviewed by a patent attorney before we can take it to the next stage. We have urged the company to retain a patent attorney and spend some money to get a preliminary non infringement opinion. Mr. Geatz lives in Maple Grove and finds an Elk River location to be attractive. AView, Inc. Robert Jackson,President AView is making a portable flat LCD display panel that could be utilized for • business presentations from laptops and PDAs (Personal Digital Assistants such as Palm Vx units). Mr.Jackson has met with Mark Jenson and there was a clear mutual recognition of the potential for CYMBET's battery technology to be applied to these LCD display panels. Mr.Jackson lives in the Lake Minnetonka area and fords the commute to Elk River attractive. Top-Vu Technologies, Inc. Tho T. Vu, President (note: 'Tho' is pronounced as 'Tau') This company is involved in the design of computer chips that are manufactured on advanced materials such as Indium Phosphide and Galium Arsenide. These materials are capable of withstanding temperatures hundreds of degrees higher in temperature than silicon - the standard material (substrate) for computer chips. These type of chips are used in military and aerospace applications. They are 'exotic' and high price/high profit items. Top-Vu has received over $1 million in SBIR grants from the US government. This company may have collaborative opportunities with CYMBET. Mr. Vu lives in New Brighton and fmds Elk River to be a reasonable location. He is also considering the Columbia Heights location. Business Incubator Prospect Report December 5,2001 Page 2 of 2 • Micro Surfaces, Inc. Athena Guo, President Athena accepted an investment from the Anoka Sherburne County Capital Fund and the Anoka investment club (the only geographical requirement is a location in either Anoka or Sherburne County in each case-therefore, an Elk River location is still possible down the road). She independently moved into ordinary office space at 4220 Central Avenue a week ago (our Columbia Heights incubator is located at 3989 Central). It is a short-term lease. We were as surprised as anyone. Athena continues to look positively towards a possible business relationship with TESCOM. We should work hard to get the TESCOM management team to maintain a dialogue with Micro Surfaces;it would be mutually beneficial in my opinion and it would likely provide the nexus that would help her to overcome the distance factor from the U of M. Independent of her willingness to locate a business unit in Elk River, there may yet be the possibility that a joint venture with TESCOM would result in a new business unit at TESCOM (under license from Micro Surfaces) that would either add new jobs or help with job retention at TESCOM based on this new technology. S