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<br />. <br /> <br />. <br /> <br />, <br />: I <br /> <br />. <br /> <br />Mr. Fournier replied that an incubator facility, as scoped in the Pride <br />Roberts report, would require considerably more funding and resources than <br />Ramsey and Iron Works could provide, even in conjunction with the VoTec for <br />management assistance. Mr. Fournier stated that in his opinion, the <br />program target in the Pride Roberts study is targeted for inner-city <br />business development with minorities on a seed-level basis. That was not <br />the program that Ms. Norris and Mr. Hartley outlined as Ramsey's goal. The <br />incubator program triggered and resulted in agreement between city staff <br />and Iron Works that the goal would be for a facility that would upgrade <br />small businesses that have some financing and track record established <br />because the city did not have the resources to do an incubator from ground <br />zero. What is being considered is still an incubator project from the <br />standpoint of it being subsidized. With respect to formulating a package <br />offer as incentive to development, that would depend on how committed the <br />city is to creating development and the amount of resources available. <br />There are very few places outside the metro areas where development is <br />occuring without some form of public involvement. Mr. Fournier stated that <br />he cannot predict if the package offer approach being discussed would still <br />be feasible; Iron Works would have to see the proposal and rework the <br />numbers. <br /> <br />Commissioner Ippel stated that another approach to an incubator project has <br />been discussed and consists of not funding any particular building site but <br />offering rent and management assistance to qualifying companies looking to <br />locate in any facility in Ramsey. <br /> <br />Mr. Fournier stated that Iron Works Development Corporation constructs and <br />operates fitness clubs; they are not a general development company offering <br />office/warehouse space as part of their business operations. Iron Works <br />is interested in quality development in the area and therefore responded to <br />the request. If the city gets a better proposal offer, they should take <br />it if it is making the best use of public fund for the community at large. <br /> <br />Mr. Greenberg stated that the city is fortunate that Iron Works is willing <br />to venture into this kind of project but he is concerned that the same <br />offer can be made to others. Mr. Greenberg stated that the intent of an <br />incubator is to house small businesses in a common building with office <br />facilities for a certain period of time until they can locate in a place of <br />their own. It seems that the proposal from Iron Works will let businesses <br />stay in the facility as long as they choose to and that just their rent <br />subsidy will expire after a certain period of time. <br /> <br />Mr. Fournier stated that if the businesses are growning, chances are they <br />will outgrow the space they have at the facility and be forced to move on. <br />One of the conditions of the current proposal would be that businesses <br />those businesses given the opportunity to rent in the facility because of <br />city subsidies would be indebted to the city if when they relocate they do <br />so outside of the city's boundaries. <br /> <br />Chairman Greenberg inquired if the facility would still be feasible if <br />rather than providing the developer a blank check for start up costs, the <br />city subsidized the renters to where they could afford to pay the market <br />EDC/December 10, 1986 <br /> <br />Page 3 of 6 <br />