08-25-08 Council Meeting Agenda & Packet

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the anticipated successful completion of the business plan of IP @ND, with the realization that the estimates and ranges expressed herein are projections and not promises of future events. The actual future performance of IP @ND, including the development of Phases II, III and IV, the timing and cost of such future development, the nature of future tenants and occupancies of the facilities at IP @ND, and the number of employees working for IP @ND and its tenants and occupants and their wages, are all based on future events which cannot be known or assured, including the general economic, social and technological circumstances that impact the market demand for the space and services offered by IP @ND. It is currently anticipated that Phases II through IV will involve approximately the same size, quality and cost of construction as Phase I, and that the estimated range of tenants' employment and wages paid in Phases 11 through IV would likewise be approximately commensurate with that involved in Phase I. Investments by IP @ND and its tenants in new research and development equipment and new information technology equipment in Phases II through IV is currently expected to be in approximately the same range as is expected for Phase I. Depending on future events, Phases II through IV may or may not be developed in accordance with the current plan, and such development may or may not occur in accordance with the anticipated schedule described in IP @ND's plan and herein. Under the current plan, it is anticipated that Phase I will reach a self - sustaining level of performance by the end of year five (5) of operations. This is predicated on the identified funding sources materializing with essentially full occupancy of the first building. Lease rates and anticipated expenses have been derived on prevailing and projected rates at other parks (e.g., Indiana University, Missouri, Purdue and Kalamazoo) and best available data for comparable facilities in or near South Bend. Staffing is anticipated to remain stable until a second facility is needed. The first building is anticipated to be approximately 54,000 square feet because a building of this size provides the capacity to include a- wide range of tenant sizes and types in our initial facilities, as benchmarked with the parks at other universities and locations. Different scenarios and arrangements are easily adopted as various funding opportunities materialize. Summary of the Project and Overall Nature of the Operations Page 22 of 23