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EDSR MEMORANDUM 06-12-2000 rk,/ A.( ity ofAk� MEMORANDUM iR • iverTO, Economic Development Authority FRM: Marc Nevinski, Assistant Director of VEconomic Development DATE: June 12, 2000 SUBJECT: Meeting Agenda 5. Appointment of Catherine Mehelich as Executive Director Action Staff requests that the EDA consider the appointment of the Director if Economic Development, Catherine Mehelich, as the EDA's Executive Director. 6. Consideration of Vertical Publishing for Incubator Program Issue Vertical Publishing has requested consideration for admittance to 1111 Business Incubator Program. The Incubator Advisory Board met on May 31, 2000 to review the company's application and recommends that Vertical Publishing be approved to enter the Business Incubator Program. Background Vertical Publishing, Inc. (VP) is an e-commerce business to business marketing firm that specializes in providing small trade publishers with a presence on the world wide web. Its approach is two fold. First, with specially designed software, VP will place a client's publication on the web and provide continuous updates of material. It will also provide detailed meta-tagging (ie search terms) of archived publications to provide meaningful results to a subscriber's information search. Secondly, VP will provide vortals to its subscribers. A vortal is a grouping of websites and internet publications that provide information on similar topics. A subscriber is able to conduct a detailed search and receive results that provide only the information requested. Subsequently, publishers are able to expand their subscriber base and increase revenue from advertisements. • 13065 Orono Parkway • P.O. Box 490 • Elk River,MN 55330 • TDD&Phone: (612)441-7420 • Fax: (612) 441-7425 • VP was founded by Darryl Arquitte, David Held, and Frank Christopherson. Other investors and management team members I I'I' include Wendell King and Arnold Angeloni of Gateway II, a venture capital firm, as well as Harlan Jacobs. Charles Newman developed the software and licensed it to VP. VP is would like to enter into a one year lease for 2000 sf of incubator space beginning as early as July. It may become necessary for VP to lease an addition 1000-2000 sf as the company grows. It is anticipated that VP will employ as many as 30 people by the end of year one. Should this occur, limited parking will require that the company find other office space in Elk River. As a dot-corn company, high speed internet access will be crucial to VP's operations. Staff has been working with Northstar Access to provide a fiber optic cable in the form of a T-1 line to the incubator. This will be done at no cost, although, it will be necessary to install a number of jacks in each incubator suite which will like cost the EDA between $500 and $1000. Action Staff request that the EDA consider approving Vertical Publishing's application for admitance in to the Business Incubator Program. Attachments • Application • Incubator Advisory Board meeting minutes — May 31, 2000 7. Presentation of Strategic Industrial Marketing Plan—Anita S. Duckor Anita S. Duckor will present the completed Strategic Industrial Marketing Plan to the EDA. Attachments • Power Point Outline • Strategic Industrial Marketing Plan s:\eda\agenda\00june12.doc