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Tenant Handbook

0 MBEC Tenant Handbook | Revised March 2019

CONTENTS

MICROBUSINESS ENTERPRISE CENTER CONTACTS..................................................................3

OVERVIEW.............................................................................................................................................. 4

ADMISSIONS........................................................................................................................................... 5

Eligibility............................................................................................................................................................. 5Incubator Program Additional Requirements..........................................................................................................5Ineligible Businesses................................................................................................................................................6

Entrance:............................................................................................................................................................ 6Necessary Forms......................................................................................................................................................6Lease Agreement.....................................................................................................................................................7Security Deposit.......................................................................................................................................................7

ADMINISTRATIVE SERVICES AND RATES..................................................................................... 7

ACTIVITIES AND RESOURCES:.......................................................................................................... 9

TENANT COUNCIL.............................................................................................................................. 10

ACCESS TO PREMISES....................................................................................................................... 10Keys.......................................................................................................................................................................10Security..................................................................................................................................................................11

Maintenance and Upkeep................................................................................................................................. 11Inspection & Repairs..............................................................................................................................................11Business Maintenance Responsibilities.................................................................................................................11Repairs & Alterations.............................................................................................................................................11Trash & Recycling..................................................................................................................................................12Lighting..................................................................................................................................................................12Vending................................................................................................................................................................. 12Quiet Enjoyment....................................................................................................................................................12Complaints.............................................................................................................................................................12

DISCONTINUATION OR EXIT.......................................................................................................... 13

Overview.......................................................................................................................................................... 13

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Voluntary Departure......................................................................................................................................... 13

Non-Compliance with Program Requirements...................................................................................................14

Fees, Expenses, and Payments.......................................................................................................................... 14

RULES AND REGULATIONS.............................................................................................................. 15

MARKET TENANTS............................................................................................................................ 15

ANCHOR TENANTS............................................................................................................................. 15

VIRTUAL TENANTS............................................................................................................................ 16

INCUBATOR PROGRAM TENANTS................................................................................................ 17

Pricing Policy..................................................................................................................................................... 17

Program Completion......................................................................................................................................... 17

Graduation....................................................................................................................................................... 18

Incubator Program Company Point System........................................................................................................ 18

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MICROBUSINESS ENTERPRISE CENTER CONTACTS

MBEC Staff: Phone: Email:

Shelena Hawkins/ DCED Director 483-4760 [email protected]

Phyllis Brown/DCED Deputy Director 483-7650 [email protected]

Barbara Francis/ MBEC Program Manager 483-7650 [email protected]

Nia Hawkins /MBEC Program Coordinator 483-7650 [email protected]

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OVERVIEW Welcome to the Arthur K. Williams Microbusiness Enterprise Center. You have joined a business support program that accelerates the successful development of start-up and fledgling businesses by providing entrepreneurs with an array of targeted resources and services. The Incubator Program’s main goal is to provide assistance to increase growth potential, resulting in a self-sustaining, profitable business.

The Microbusiness Enterprise Center’s (MBEC) mission is to support the launch, growth, stabilization and long-term success of business enterprises in Dougherty County. Participants in the Incubator Program will have access to management guidance, technical assistance, networking opportunities, and consulting tailored to young, growing businesses. All tenants also have access to appropriate rental space and flexible leases, shared basic business services and equipment, technology support services, and assistance in obtaining the financing necessary for business growth.

A basic outline of the services and support available to you is summarized in this handbook. Keep in mind that some of the most valuable rewards to tenancy at the MBEC come from the community of entrepreneurs who now surround you every day. Please take advantage of your peers and of the staff here at the MBEC. We can all contribute to the success of your business.

Location: The MBEC is located at the south end of Jackson Street and Highland Avenue in Albany Georgia. 230 S Jackson Street is a multi-purpose complex containing approximately 30,702 square feet of leasable space, conference space, and restrooms totaling 34,432 square feet for the entire building with adjacent parking areas. Buildings are fully equipped with a sprinkler and fire alarm system tied directly to the fire department (a factor that favorably impacts businesses’ insurance costs).

Tenants may use the following information for mail:

Your Business Name/Suite #230 S Jackson StreetAlbany, GA 31701

You will have access to a mailbox corresponding to your suite and you will have access to other office services such as fax and copier. This will be discussed in further detail later in the handbook.

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ADMISSIONS

ELIGIBILITYThe MBEC provides services to a wide range of entrepreneurs, and requires all potential tenants (Marketplace, Incubator, and Virtual) to meet the following criteria:

• A business that employs five (5) or fewer employees, at least one of whom must own the enterprise.

• A business that has its principal operations located in Albany, Georgia.• Must be able to create and/or retain jobs.• Must be organized as a sole proprietorship, corporation, or any other recognized form

of for-profit.• Must be current on all federal, state and local tax obligations, and must be current in all

financial obligations with the City of Albany and/or Dougherty County.• Must have or be able to obtain a DUNS # prior to occupancy.• Must be an equal opportunity employer.• Applicant must be willing to comply with all regulations, guidelines and policies as they

relate to the program.• Business is suitable to operate in the “professional office environment” and does not

require a large waiting area for customers or unattended children, or extensive parking needs.

• APPLICATION FEE: $50.00

INCUBATOR PROGRAM ADDITIONAL REQUIREMENTS

To apply for the Business Incubator Program an applicant business must also meet the following criteria:

• A new business or existing business in operation for less than 2 years. • Business owner(s) and /or business have not previously graduated from the program.• Business owner(s) and /or business have not previously left the program with a debt,

defaulted lease agreement, or business closure.

Businesses can reenter the program if they have previously left the program in good standing prior to graduating, but their total program involvement cannot exceed 5 years.

Generally compatible with the incubator community, and willingness to support and promote the incubator concept. Does not weaken or alter the MBEC’s image or purpose, nor negatively impact other participants’ business operations.

Willingness to conduct business in an open, collaborative and cooperative fashion with the program, including regular status reports to the Program Manager and Program Coordinator.

Applicant should possess a rudimentary knowledge of the chosen field and be willing to acquire basic business practices before moving forward.

In order to apply for the Incubator Program at the MBEC, a business must complete a program application and detailed business synopsis. Businesses will be evaluated by their fit with the resources and services provided.

Complete a Business Plan within the first year of occupancy. Assistance in completing the Business Plan is available through MBEC staff or a referred agency.

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INELIGIBLE BUSINESSES

Regulated lending institutions. Real estate investment Businesses. Retail Any store which principle business is the sale of alcoholic beverages for

consumption. Businesses whose primary service or product is similar or equivalent to at least two

existing MBEC businesses. Religious organizations.

ENTRANCE: Once a business is accepted into the MBEC that business must occupy that space within 30 days of notice and availability. The business must attain limited liability insurance and a business license for the approved suite. The business may seek a business license from the City of Albany Treasurer’s Office. A copy of the acceptance letter must be provided in order to get a business license with the MBEC address.

The business may choose which company to obtain insurance from but the certificate of insurance must be mailed, faxed or emailed by the insurance company to MBEC staff and the certificate must list “City of Albany, Microbusiness Enterprise Center” as the certificate holder. Insurance shall be comprehensive public liability insurance with limits no less than $100,000 for bodily injury and death and not less than $300,000 for property damage or $500,000 combined single limit of bodily injury.

Upon receipt of the business license and insurance, the business will be contacted by the MBEC Program Coordinator to set up a date to sign the lease agreement, the service agreement, and the job creation agreement. At this time the business needs to provide the security deposit and first month’s rent. The effective date of the agreements will be advanced two weeks to allow for suite setup and for the business to acquire business license and insurance. Other documents to be completed and signed are:

NECESSARY FORMS

Move-in/out Inspection Form (mentioned below)Emergency Contact Information FormMBEC Business Information FormKey AgreementConference Room AgreementWellness & Fitness Release FormJob Creation Agreement Form

The tenant will also perform a walk-through of the suite in which they will occupy. The walk-through form will be completed by MBEC staff, any damages or maintenance request will be noted and repaired before the business moves in.

LEASE AGREEMENT

The typical business and its principal owner(s) enter into a one-year formalized lease agreement. Short-term month-to-month rentals may be considered, for virtual tenants, and a formal lease agreement will be signed reflecting the term. Lease agreements provide

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reasonable flexibility in allowing the business to expand or retract within the MBEC, or to move to another facility at an appropriate time. Tenants business may lease any available combination of office and/or conference space within the MBEC that is in keeping with efficient overall space utilization practices. Space will be tailored to individual business needs and clearly partitioned without interfering with building heating and ventilation systems.

30 days prior to the lease expiration tenants will be expected to submit written notification of their intention to renew, exit, or alter their lease terms.

Failure to renew the lease before the lease expires, regardless of the situation, will cause the rent of the tenant to increase 25% one day after the lease expires.

Businesses that are not a part of the Incubator Program will have an opportunity to rent space at the MBEC at Market Rates. Current Market Rates are $1.00 per square foot, subject to change. Those businesses that enter into agreements under this condition will abide by the same building rules as incubated tenants. The Market Rate Businesses will also have access to some of the same services at a fee.

SECURITY DEPOSIT

Incubator Program tenants, Anchor tenants, and Market rate tenants are responsible for providing a Security Deposit equal to the first month’s rent of the most recent Lease or Lease Addendum. Tenants must provide the security deposit, the first month’s rent and evidence of insurance before occupying space. The terms and stipulations of this deposit are explained in the Lease Agreement. Virtual tenants will not incur security deposit.

ADMINISTRATIVE SERVICES AND RATESMBEC will provide the following services to all resident tenants of MBEC. The following services are provided for the tenants at low or no charge:

Professional Consulting Business Networking Business Training Administrative & Secretarial Assistance Limited Advertising Virtual Tenant Lab Copy and fax machine usage Landscape Maintenance Notary Public Parking Utilities Security System Maintenance and repair of the property Mail Conference room space

Administrative & Secretarial Assistance – Incubator Program businesses may receive administrative services for up to 2 hours per month dependent on the availability of the

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Program Receptionist or Program Coordinator. Services may include light secretarial, typing, and word processing for a fee.

Additional hours may be negotiated for a fee. Contact the Program Manager or Program Coordinator with Department of Community & Economic Development Office.

Limited Advertising- At the discretion of MBEC staff, this will include tenant biography and business of the month features on the MBEC website, updates on the MBEC Twitter and Facebook pages, business name on Marquee and posting on the Digital Screen.

Virtual Tenant Lab – Access includes computers, cubicles, and printer on the 3rd floor.

Notary Public – Tenants and general public may use the notary public services for a charge.

Copy- A copy machine is available in the DCED Office. Incubator Program businesses have an allowance of 20 pages per month and are then charged $.10 (black and white) $.15 (color) per single-sided copy and $.20 for double-sided copies. Market Rate Businesses are charged $.15 (black and white) $.20 (color) per single-side copy and $.20 for double-sided copies. Management reserves the right to impose maximum usage limits.

Fax- Fax machines are available in the DCED Office. Incubator Program businesses can fax outgoing for free and $.20/page for incoming. Virtual members can fax outgoing for free and $.30/page incoming. Market Rate businesses can fax outgoing for free and $.50/page incoming.

Mail – Incoming mail to tenants arrives from the US Postal Service. The mail will be sorted Monday through Friday and distribute it to individual mailboxes in the Administration Building. Mail service will be provided for virtual members and can be collected during normal business hours.

Once a Business has left the MBEC, their mail will be forwarded for two (2) months from their departure date free of charge. Because mail is delivered to this location unsorted, the USPS will not act on a forwarding notice from the exiting Business and will not forward your mail from this address. Please be sure to notify all persons and agencies of your new mailing address. Anything received after the two month period will be returned to sender, (with the exception of bulk mail, which will be discarded).

Shipping – UPS & FedEx deliver daily to the Front Desk in the Administration Building. This makes it easy for Businesses that do not have full-time office staff to receive packages. You may request direct delivery to your premises by contacting the carrier. You may arrange for pickup of outgoing packages by contacting the carrier. All outgoing packages must be brought to the Front Desk, the designated pickup site. Carrier info: UPS – www.ups.com; FedEx www.fedex.com.

Conference Room Space- Tenants may reserve access to Conference Rooms and Training Room as available at least 72-hours in advance for a fee. Each conference room rental requires a refundable $100.00 deposit. Incubator Program businesses will have 4 free hours per month in the conference room, after the 4th hour there will be a fee of $10.00/hr. Anchor Tenants will have 2 free hours per month in the conference room, after the 2nd hour there will be a fee of $10.00/hr Virtual members will have free hours per month in the conference room based on level (1 hour for Level 2, 2 hours for level 3), after the free hours there will be a fee of $10.00/hr. Market Rate Businesses can reserve the conference room

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72-hours in advance and must pay $10.00/hr Mon-Fri and $20.00 on Sat & Sun. Cancellation notice for the conference room must be given at least 24 hours in advance. There is a $25.00 dollar fee for non-cancellation. Insufficient notice is considered non-cancellation. There is also a janitorial fee applied if the room is not in the condition it was found, i.e. unclean and or damaged. Sidewalks, passages, exits, entrances and stairways of the premises shall not be obstructed by any tenants or used by them for any purpose other than for ingress to and egress from their respective premises.

ACTIVITIES AND RESOURCES: Membership in an Entrepreneurial Community

Collaboration amongst peers is one of the most important benefits to being part of the MBEC community. Incubator Program businesses benefit from continual interaction with their peers. The following are some activities and resources provided by the MBEC for development of individual businesses and the community:

“Better Business Brunch” and or “Think Outside the Box” are held at least once a quarter and last an hour and a half on the first floor in the Conference Room. MBEC may provide light refreshments to accompany a panel discussion from informative speakers. There are also opportunities to receive and provide updates and discuss mutual issues.

Social Networking- The MBEC is very supportive of social networking tools as a method to enhance and broaden our community. We encourage all tenants to participate. Examples include LinkedIn.com, Facebook.com, Twitter, and Instagram. Additionally, organizations such as the Albany Chamber of Commerce regularly host in-person networking events.

Training Classes - Offered through MBEC and our business partners. Classes cover such topics as business 101, marketing, taxes, business credit & financial statements, Fast Start and the in depth First Time CEO business plan program. These are available for free and or at a reduced rates to Incubator Program and Virtual businesses. Classes may be open to the market rate and the public at normal cost. A schedule of trainings will be provided and updated throughout the fiscal year. Training may be provided by tenants, community organizations, higher educational institutions, or consultants. Training needs will be assessed and the training curriculum will be largely based on tenant needs. Tenants will be encouraged to take part in trainings or educational seminars provided by other programs or organizations. Training may also be sought out by tenants and credit/points may be earned towards annual quota. Approval must be sought in advance of scheduled training if tenant wants to earn points for training.

Open Houses and Socials - Many are offered throughout the year, including an annual Holiday Open House and Final Fridays. Incubator Program businesses are highly encouraged to participate. These are excellent networking and marketing opportunities.

Chamber of Commerce Membership - Tenants are encouraged to join the local Chambers of Commerce as finances allow. There is a discounted membership for MBEC tenants.

Internet Access

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Businesses have two options for high-speed internet access:

General WIFI with no security, available throughout the building. Obtain your own internet service with security.

Fitness Center

The MBEC has a fully equipped fitness center on the third floor of the building. Access to the fitness center is free to tenants and their guests. The fitness center sports three cardio machines, free weight dumbbells, and a combination lifting machine with a variety of features. Patrons of the fitness center all must have signed Release Forms and must observe stated safety practices.

The MBEC also offers training classes held in the fitness center. A certified trainer guides a group fitness class on scheduled days, and is available for one-on-one scheduling.

TENANT COUNCIL

Tenants within the MBEC are able to collectively represent their interests to management through a Tenant Council. The Council is chaired by volunteer, elected tenants and all tenants are members with voting privileges.

ACCESS TO PREMISES KEYS: The MBEC is responsible for keying all spaces and will provide tenants with up to five keys for the premises depending on number of principle owners. No business shall alter any lock or install a new or additional lock or any bolt on any door of its premises.

All keys must be returned to the MBEC upon the termination of the Lease Agreement. Should the business fail to return all keys, the business will be charged for the cost of rekeying the space.

In the event keys and or key cards are lost, the fees associated with rekeying are as follows: Lost Cards-$35.00Lost Suite and Restroom Keys- $35.00Lost Post Office Key-$35.00

SECURITY: The MBEC assumes no responsibility for the security of the property or the personal property of the businesses, their employees, or invitees. We do however provide onsite security officers.

MAINTENANCE AND UPKEEP

INSPECTION & REPAIRS: The MBEC staff or its agents may enter the premises at any reasonable time in order to inspect them. If the MBEC deems any repair necessary for which

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the tenant is responsible, The MBEC may demand that the tenant perform the repair. If the tenant refuses or neglects to make the repair in a reasonable time, the MBEC may make the repair and charge the tenant in accordance with the Lease Agreement. The MBEC may enter the premises at reasonable times to install or repair pipes, wires or other appliances or to make any repair The MBEC deems essential to the use and occupancy of the other parts of the building. The MBEC shall give reasonable advance notice to a tenant.

BUSINESS MAINTENANCE RESPONSIBILITIES: Tenants shall be responsible for routine maintenance, upkeep and cleaning of the premises. The MBEC provides janitorial services for common areas; however tenants are responsible for the cleaning of their office space. Tenants and their employees must observe strict care and caution with the premises and will be financially responsible should waste or damage occur to the facility through oversight. The toilet stalls, toilets, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed; no foreign substance of any kind shall be disposed of in the toilet or down the drain. The expense of any breakage, stoppage or damage resulting from violation of this rule shall be borne by the tenant who, or whose employees, agents or invitees, shall have caused it. All maintenance issues should be reported to the front desk.

REPAIRS & ALTERATIONS: Tenants shall not perform any act or carry on any practices that may injure the premises or be a nuisance or a menace to other tenants in the MBEC. A tenant shall, at their own expense, keep the premises in good repair, and will, at the expiration of the Lease Agreement, leave the premises in like condition as when it was taken, reasonable use and wear thereof and damage by the elements excepted. Tenants shall not make any alterations, additions or improvements to the premises without the Program Manager's written consent. A written plan showing proposed alterations must be submitted and approved by the Executive Director prior to any alterations. This submission should address who will perform the work, what is the purpose of the alteration, how jobs or profits will be affected and how the alterations will be paid for. Licensed contractors shall perform any electrical work. It is the policy of the MBEC not to provide any funding participation in the alterations requested by tenant. Any contribution to cost by the MBEC will be negotiated with each tenant based on the relative benefit and/or burden of the alterations. All alterations, additions and improvements made by either party upon the premises during the Term hereof, except movable office furniture and trade fixtures put in at the tenant’s expense, shall become the property of the MBEC at the termination of the Lease Agreement. Tenant covenants to pay as they become due all just claims for labor and materials used in making any such additions, alterations, or improvements and to indemnify and save the MBEC harmless of and from all costs, expenses, and damages, including reasonable attorneys' fees and costs of suit, arising out of or connected with any statutory or other liens against the premises, the building or the property for or on account of such labor and materials. Tenant covenants both for itself and its servants, agents, and employees, to observe and keep all necessary rules and regulations of the Building which affect said premises and will at its own cost and expense make any and all necessary alterations or changes in the premises which may be necessary because of any act of the tenant, its servants, agents, and employees, in violation of any law, ordinance, rule or regulation of any city, state or government body. Upon the failure of the tenant to make or proceed to make, any such changes or alterations within thirty (30) days after being required to by any other rule, regulation or ordinance above referred to within ten (10) days of the receipt of said order or notice, then The MBEC may enter the premises at its option and do and perform said alterations or make such changes at the cost and expense of

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the tenant, which said expense shall be deemed as rent and added to the next monthly installment of rent then accruing and be collectable as such.

TRASH & RECYCLING: Trash and recycling services are included in monthly rent. Tenants shall place trash generated from normal business use in appropriate receptacles on the Property. Containers for recycling office paper are located in the copier rooms in DCED office. Items from other locations are in violation of local codes (including computers and other electronics) cannot be accepted. Tenants with extraordinary trash needs can arrange additional pickups through the MBEC Program Manager and will be responsible for monetary charges pertaining to such service.

LIGHTING: The MBEC shall be responsible for maintenance of lighting systems in common and exterior spaces as well as maintenance of ballasts in all spaces on the Property. Light bulbs and changing thereof shall be the responsibility of the maintenance. A tenant may request assistance from the maintenance staff and may be billed for services except in extraordinary circumstances as determined by the Program Manager. Tenants may purchase replacement bulbs from the MBEC Management Team.

VENDING: Vending machines are provided and maintained by the MBEC or an MBEC vendor. Tenants, their employees or guests may not install other vending equipment on the premises nor tamper with existing equipment. Extraordinary damages shall be the responsibility of the tenant.

QUIET ENJOYMENT: All tenants have the right to peaceably and quietly have, hold, and enjoy the premises for the duration of the Lease Agreement. No tenant is permitted to disturb the quiet enjoyment of another outside the normal course of business. Loud music and animals are examples of such.

COMPLAINTS: Complaint forms are available at the front desk. Any complaints will be investigated and addressed in a timely manner.

DISCONTINUATION OR EXIT

OVERVIEWAn Incubator Program tenant, Virtual tenant, Anchor tenant, or Market rate tenant may be asked to leave the program and the premises for any one of the following reasons:

• Business closes.

• Business repeatedly fails to adhere to the covenants prescribed in the Lease Agreement.

• Business falls more than two months behind on lease payments.

If a business no longer fits the scope of the program, at that time, it will be evaluated to determine if MBEC is the appropriate place for the business.

Exiting the Market or Virtual program can be based on the following factors:

1. The tenant’s voluntary decision to leave

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2. Non-compliance with administrative requirements3. Misrepresentation of business concerns4. MBEC inability to provide suitable and serviced lease space

Exiting the Incubation Program will be based upon the following factors:

1. The Tenant’s voluntary decision to leave2. Completion of three or five total program years3. Non-compliance with administrative requirements4. Tenant has met the graduation criteria 5. Misrepresentation of business concerns

Upon all departures, a mandatory exit interview will be conducted by the Program Manager to obtain final numbers for reporting purposes, assessing the quality of services provided, staff support, facilities and accommodations and to gather tenant’s input and suggestions for improvements to the MBEC. Any departure standards will be included within lease agreements.

VOLUNTARY DEPARTURE The tenant’s decision to leave the MBEC can be based on either success or failure of their business or desire to relocate the business. The circumstances should be discussed {and documented} between the tenant and the Program Manager to determine the best course of action for the Tenant. The decision will be one that is mutual and in the best interest of the Tenant.

Success, as it relates to early departure, is defined as rapid growth that requires larger accommodations than the MBEC can offer. Failure is defined as the inability to sustain the business after all assistance and the tenant and staff have exhausted other options. Tenants must, however, ensure that all debt and other obligations are left in good standing or they will not be allowed to return at a later date.

Tenants that decide to leave the Incubator Program early without negative or outstanding obligations (debt, default, destruction of property, etc.) may be allowed to return after one year to complete the remaining time left in the original five year term. A tenant may re-enter the program only once.

NON-COMPLIANCE WITH PROGRAM REQUIREMENTSThe administrative requirements for being a tenant in the MBEC include – valid Georgia identification, current business license, current lease, general liability insurance, and periodic reports. All tenants are required to have all of these documents on file for audits and inspection.

FEES, EXPENSES, AND PAYMENTSIn consideration for the services provided, tenants agree to pay MBEC the amounts for said services as outlined in the ADMINISTRATIVE SERVICES AND RATES

Rent is due the 1st of the month and considered late on the 10th of the month. Client agrees that payment will be made to MBEC in compliance with the due date. Late notices will be sent immediately after the 10th of the month.

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Any account which has not been paid within 30 days of being billed will be considered delinquent. MBEC may charge a delinquent account a late fee at 10% of the rental rate in addition to the rent due. Delinquency status may cause certain services to be withheld until full payment has been received, i.e. temporary deactivation of copier code, prevention of conference room scheduling and usage, or other services as MBEC Staff deem applicable. Cash is not accepted for payment of rent.

Any account which has not been paid within 60 days, and/or for which no agreement to extend a payment deadline has been made with MBEC staff in writing, will be considered in default. MBEC will deactivate access cards for all tenant staff to the building under this contract when payment for said services has not been made and the account for said services is in default pursuant to the terms herein. Any entrance into the building will be by appointment with MBEC staff only. A default account will be grounds for the termination of this contract upon 30 days' notice from the day the MBEC considers the account to be in default. The default may be remedied during the 30-day notice period by either paying the outstanding account in full, or through another agreement in writing with the MBEC.

After 90 days, all delinquent accounts with a negative balance over $100 will be forwarded with an additional collection fee of 15% to the DCED attorney and processed for immediate eviction and credit collection.

The following events shall constitute default by the tenant:

a) any amount required to be paid by the tenant under this agreement is not paid within sixty (60) days of the time when and at the place where due;

b) the tenant shall fail to comply with any other provision of any MBEC agreement;

c) any petition is filed by or against the tenant under any federal or state bankruptcy or insolvency law, or the tenant shall become insolvent, or the tenant shall make a general assignment of its assets for the benefit of creditors, or a receiver is appointed for a substantial part of the tenant’s assets, and the tenant shall not cure such event within thirty (30) days after receiving written notice thereof from MBEC.

d) if, in MBEC’s opinion, tenant is operating said business in a non-professional manner or in MBEC’s opinion is no longer viable.

Tenants are also required to remain current on all local, state, and federal taxes in an effort to ensure that financial data can be accurately monitored. Non-compliance with these requirements will be grounds for expulsion from the MBEC.

RULES AND REGULATIONS The MBEC and the tenant hereby agree that the preceding covenants are for the benefit of each tenant and the operation of the entire MBEC. The MBEC is authorized to create these covenants and may change them at the MBEC’s option. The MBEC reserves the right to make such other and reasonable rules and regulations as in its judgment may from time to time be needed for the safety, care and cleanliness of the premises, and for the preservation of good order therein.

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The MBEC may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waiver by the MBEC shall be construed as a waiver of such Rules and Regulations in favor of any other tenant or tenants, nor prevent the MBEC from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the premises.

These Rules and Regulations are in addition to and shall not be construed to in any way modify, alter or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of the premises.

MARKET TENANTSBusinesses, non-profits, and other agencies may opt not to participate in the Incubation Program wherein 49% of available office space may be rented at a rate of $1.00 per square foot (current fair market value annum), which will change upon market rate change and lease renewal. Those entities that enter into agreements under this condition will abide by the same building rules as incubated tenants. Lease agreements will be identified as Market Rate Leases. Any additional services and amenities are available to Market Rate tenants at a discount of the public rate, i.e. conference rooms.

ANCHOR TENANTSAnchor tenants provide essential services for Incubator tenants at no cost and or at a reduced rate in exchange for reduced market rents. Anchor tenants will also need to provide one workshop per quarter relevant to small businesses and specific to their area of expertise. Anchor tenants will be required to assist current tenants and encouraged to help with recruiting and development of new businesses as spin-offs of their business activities. Anchor tenant is defined as a business that is deemed to be successful and has a track record of, or is willing to assist, recruit, and develop small businesses. Anchor tenants will be evaluated on an annual basis to determine level and quality of services to businesses. A Memorandum of Agreement will be executed detailing the specific requirements for occupancy in the MBEC. An Anchor Tenant may be a for-profit or not-for-profit business.

Non-profit businesses may be allowed entrance as Anchor Tenants with the following conditions:

1. Must provide community and /or economic development services to Incubator Tenants and/or the City’s CDBG entitlement areas.2. Must have a 501{c}{3} or other recognized tax-exempt designation from the Internal Revenue Service.

Anchor tenants will be accepted into the program at a rate of $.50 per square foot and this price will remain in place unless it is determined that services are no longer useful or warranted. There is no graduation requirement for Anchor Tenants.

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VIRTUAL TENANTSThere are entrepreneurs that are in the initial phase of their business and want a professional setting to conduct business without the commitment of the Incubator program. These businesses need to use professional services provided at the MBEC, but may not need office space every day. The MBEC offers short term leases to those clients at a monthly rate that will allow them access to the virtual office, equipment, conference/ training room and administrative services from 8:00 am -5:00 pm, Monday through Friday. There is no graduation requirement for Virtual Tenants, however term agreements are no more than 6 consecutive months.

Level One- Office-by-the-day

$60.00/day (up to 8 hours) $10.00/hour (up to 8 hours) Faxing $.30 per page Copying $.10/black and white, $.15/color copy, $.20/double sided Wi-Fi access

Level Two-Monthly Tenants

$60.00/Month (30 Calendar days) Business address with access to mail during regular business hours Copying $.10/black and white, $.15/color copy (will be issued a code) Faxing $.30 per page One hour/month usage of Conference room free of charge, after the first hour

regular rate is $10.00/hr (normal business hours) & $15.00 (non-business hours).

Wi-Fi access

Level Three-Premium Virtual $90.00/Month (30 Calendar days) Fully equipped with furniture and computers. Business address with access to mail during regular business hours Access to private suite during all hours Copying $.10/black and white, $.15/color copy (will be issued a code) Faxing $.30 per page Two hours/month usage of Conference room free of charge, after the first two

hours regular rate is $10.00/hr (normal business hours) & $15.00 (non-business hours).

Wi-Fi access

INCUBATOR PROGRAM TENANTS

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Incubator Program tenants must agree to consult regularly with staff members, who provide ongoing assistance to establish a plan for technical assistance and training. The total length of tenancy by a particular business is dependent on various factors, including the growth and maturity of the Incubator Program tenant itself. Average incubator tenancy is 3-5 years, with a maximum of 5. A business will be assessed when they enter the program as to what level they are on (i.e. level one, two and so on to level five) and based on the assessment there are benchmarks that should be reached to move on to the next level. If a business is determined to be on an intermediate level (level 3) upon entry to the program they may graduate from the program sooner than the 3-5 years average.

Incubator Program tenants must agree to participate in the Incubator Program, which includes a commitment to: Meet, at a minimum, quarterly with MBEC staff and provide them with up-to- date

financial statements for the purpose of evaluating Incubator Program tenant’s financial performance and reporting aggregate numbers.

Attend, all mandated business-related classes or workshops offered by the MBEC annually.

Complete Tennessee Small Business Development Courses (https://www.tsbdc.org/training/) by specified order within first year of occupancy.

Attend, at minimum, three free networking events per year (at least one sponsored by MBEC, such as the Networking Luncheons).

Achieve, at minimum, 100 points per year through the Incubator Program Point System, a planning tool for starting, sustaining and growing your business (the requirements above equal 75 points for the first two years).

PRICING POLICY The purpose of the MBEC’s Incubator Program is to assist new, expanding, or fledgling small businesses by providing affordable space, shared administrative/office services and equipment, along with management assistance services, thus helping businesses succeed, creating new jobs and bringing new dollars into the area economy. With more than 20 years of experience in this practice, the Incubator has proven that a graduated rent scale on a 5-year schedule based on Tenants’ anniversary dates is best suited to meet this objective. First year tenants pay 50 percent of Fair Market Value (FMV). Each year, tenants pay an additional 15 percent of FMV maxing out at 100 percent of FMV in the fifth year, (example 65 percent second year, 80 percent third year, etc.) Market tenants (those not fitting within the traditional mission of the Incubator Program) shall pay 100 percent of Fair Market Value or a higher negotiated rate.

LEASE RATE CALCULATION: Leases are created based on Gross Square Footage, or usable square footage as dictated by the site maps plus 15% for common area usage (i.e. hallways, bathrooms and conference facilities).

PROGRAM COMPLETIONA tenant will leave the MBEC after the negotiated residency of five years has expired. The established norm is to be a part of an incubation program for 3 to 5 years. A joint effort will be made to determine if the business has a reasonable chance of operating successfully in another location that has higher costs of doing business.

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https://www.tsbdc.org/training/

If the Tenant requests extended time in the incubator, consideration will be given based on specific circumstances, tenant performance, and needs. The tenant will agree to pay market rate rent if the request is granted. If the decision is made to extend the time, a finite time will be established for terminating occupancy.

GRADUATIONIncubator tenants will be expected to graduate from the MBEC after achieving one or more of the following criteria for graduation:

a) Tenant meets or exceeds the growth and development goals set upon entrance into the program.

b) Tenant has experienced significant revenue growth and/or profitability allowing tenant to continue its operation without further assistance from MBEC

c) Tenant has been in good standing as a program participant for three to five years.

The Program Manager of the MBEC will be responsible for making the final determination that these criteria have been met. He/ She shall do so by a review of the tenant’s business records and recommendations provided by advising staff and/or organizations. This determination will rely on the Program Manager’s judgment.

INCUBATOR PROGRAM COMPANY POINT SYSTEM Incubator Program tenants will be involved in a point system., geared towards promoting strong business growth practices. This system is helpful whether you are just starting your company or if you’re trying to expand and grow your business. The point system is a suggested checklist and a way to set goals for you and your organization. The MBEC, the Community, Entrepreneurs, and others in your industry have a lot to offer. The point system is a tool you can use to organize and manage those business opportunities.

In order to be considered in good standing within the Incubator Program, an Incubator Program tenant must obtain the minimum requirement of 100 points during each year. Incubator Program businesses should keep track of things they have done for their business each year. 75 points in the first two years are obtained by meeting the quarterly review, workshop, and luncheon requirements for the Incubator Program. The remaining amount should be obtained through these items or others you may create individually with the Program Manager. At the end of the second year, Incubator Program tenants will no longer be able to use workshops and luncheons for point calculation, though the requirement for occasional attendance will remain. Managers will compare the scores of Incubator Program businesses and tally the total points at the end of each year.

Stage 1 Point Activities

Update structure of financial reports with CPA 5 points

Hire/retain at least one LMI part or full time for a quarter 15 points

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Create written report analyzing competition, noting weaknesses and opportunities 10 points

Create a website 15 points

Join Chamber of Commerce or other relevant business association 5 points

Set up social media accounts 5 points

Complete Tennessee small business development center course* 5 points

Potential Points (25 needed) 60 points


Update marketing plan to match and foresee growth 5 points

Hire/maintain an expected long term full-time LMI 15 points

Show active and varied marketing efforts across a quarter 5 points

Appointment with SBDC /SCORE 5 points

Update of Cash Flow Projections 10 points



Create operation manuals for owner and staff duties 10 points

Update Business Plan (all segments) 10 points

Make a video clip for your website 5 points

Update your resume (paper and all related networking websites) 10 points

Complete Financial Review showing six months of profit and capital avenues 25 points

Expand services offered beyond launch product 15 points

Hire/maintain an additional LMI at part-time/full time 15 points

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Attend MBEC networking events or workshops (points given for max of 3) 10 points

Attend non-MBEC networking events or workshops (points given for max of 3) 5 points



Develop an exit strategy for your business 20 points

Received a business loan for financing 35 points

Annual Marketing Budget 15 points

Complete a website review with accompanying updates 20 points



Collaborate with/provide mentorship to other Incubator tenant 15 points



Complete Financial Review 10 points

Present at a Conference/Convention 15 points

Volunteer on a community BOD or other service 10 points

Do market research to move into new space 25 points



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Collaborate with/provide mentorship to other Incubator tenant 15 points

Teach an MBEC workshop 15 points


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