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work, as well as moving walls and offices. Staff estimates that the cost of the renovation would be between $8.00 and $13.00/sq, ft. Over a 7 year amortization, these improvements would add between $1.25 to $2.75 to the base lease of$2.50/sq. ft. Options for City of Roseville: 1) Lend the property owner, Normandale, the necessary funds to improve the facility to meet Computype's needs. The City then holds a second mortgage on the site and is repaid through higher lease rates. Perhaps defer payments for 2 years to allow Computype time to recover from the costs of renovation and new tooling. 2) Lend Computype the necessary funds to improve the building (lease hold improvements); secure it with a note on existing or proposed new presses. Defer as necessary. 3) Offer Computype a development package including a new site within the community either at little or no cost, and a flexible 75,000 sq. ft. one story building with lease rates of under $6.00/sq. ft. Repay City expenses with TIF (this alternative may be difficult because Computype wants to make a decision in the next 30 to 60 days). 4) Work with a local bank on I or 2 above to reduce City participation/exposure. 5) Use CDBG funding or SBA 504 funding. (Computype would only use these as a last resort because ofthe federal reporting and red tape.) 6) Do nothing but suggest the availability of land and developers in the City. Policy Questions: 1) Is the City ready (and financially capable) to provide revolving loan funds from the TIF pool or other sources to keep businesses in Roseville in existing buildings? 2) Should the City policy include assistance for businesses to expand in Roseville, by leaving one landlord and leasing in a new TIP assisted project? 3) RoseviIle has become a job incubator. Does the City wish to compete to "retain" this type of business from moving to the northern suburbs? What criteria should be used regarding types of business to compete for? As these businessses mature, many of these businesses (like Computype) create higher paying head~of-household jobs. Alternately, should the city evolve into a incubator city only? Computype Chief Operating Officer, Rick Huntsinger, was sincerely impressed that I would take the time to see their operations, He invited the City Manager and Council to come on a tour. Mr. Huntinger will be going on a 2-3 week vacation in late August, so any action (or tour) that the city takes should be done soon.