EDSR MEMORANDUM 04-24-2000 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
• MEMORANDUM
TO: Economic Development Authority
FROM: Marc Nevinski, Assistant Director of
frEconomic Development
DATE: April 24,2000
SUBJECT: Special Meeting : Discussion of Business
Incubator
4. Consider Renewal of Business Incubator Lease
Issue
The lease with Larry Hickman of the Business Incubator Building
will expire on April 14, 2001. Staff is requesting that the EDA
consider renewing the lease with Mr. Hickman so that prospective
tenants may consider sub-leasing space in the building for a period of
at least one year.
• Background
In 1997, the EDA established a two-year lease with Larry Hickman
for 13,186 sf of the former Furniture and Things building at $1.65/sf
for use as a business incubator. That lease was renewed in April of
1998 at the same rate for the period of April 15,1999 to April 14,
2001. The EDA has an option to extend the original lease a third
time for the period of April 15, 2001 to April 2003 at a rate not to
exceed $3.00/sf.
Currently, SolarAttic is the incubator's only,tenant. Two companies
have recently ceased operations and a third, Protector Care, has its
product manufactured by a local firm. Over the past several months,
staff has met with five companies who have an interest in the
incubator, one of which has begun the application process.
Additionally, a number of these prospective companies have
experienced promising developments in the last few months, such as
an influx of venture capital, that increase the likelihood they will
locate in the incubator.
Should the EDA decide not to continue the Business Incubator
Program, approximately $35,000 of the original $80,000 in leasehold
• improvements will be reimbursed.
13065 Orono Parkway • P. O.Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612)441-7425
Equal Opportunity Housing and Equal Opportunity Employment
Action Requested
Staff recommends that the EDA consider renewing the lease with
Larry Hickman for 13,186 sf of the former Furniture and Things
building at a rate not to exceed $2.00 per square foot.
Attachments
• Original Lease
• Repayment Agreement
• 1998 Lease Extension
•
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