Regional Entrepreneurship and Economic Development (REED) Center Martin, Tennessee Proposal for a Rural Business Enterprise Grant (USDA) August 2004 Hollie Vowell, Martin Economic Development Corporation (medc@martintennessee.org) Janet Ward, Consultant (janetfward@charter.net) Dr. Tom Payne, University of Tennessee at Martin (tpayne@utm.edu) Regional Entrepreneurship and Economic Development (REED) Center Table of Contents I. Project Overview A. Background B. Activities 3 4 Demonstration of Need A. Introduction B. Economic Status of Service Area C. Currently Available Services D. Current Gap in Available Services E. Current Opportunity 5 5 6 7 8 Description of the Proposed REED Center A. Planning and Mission B. Facilities C. Programs, Training Sessions and Services 8 9 12 Operations A. Staffing and Hours of Operation B. Entities Involved and Their Roles C. Marketing Plan D. Measures of Success E. Timeframe for Implementation 13 13 15 16 17 Financial Considerations A. Initial Budget B. Sources of Funding 18 20 VI. Summary of Grant Request 21 VII. Priority Score Sheet Summary 21 VIII. Future Possibilities 23 IX. Appendices A. REED Center Planning Committee B. Sketch of Floor Plan C. Quote from Wade Builders Supply D. Lease Agreement E. Coordinator’s Job Description F. Letters of Support 24 25 26 28 31 32 II. III. IV. V. i. ii. iii. iv. v. Nick Dunagan, Chancellor, The University of Tennessee at Martin Randy Brundige, Mayor, City of Martin Jamie Frakes, Director, TSBDC - Dyersburg Ron Acree, Small Business Specialist, TSBDC - Jackson Katie Winchester, President, CEO, & Vice Chairman, First Citizens National Bank, Dyersburg vi. Teresa Brundige, President, BancorpSouth, Dresden 1 Contents - Letters of Support (continued) vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. xvii. xviii. xix. xx. Billy Barksdale, Executive Director, McKenzie Industrial Board Tonja Terrell, Executive Director, Obion County Industrial Development Corporation Jim Cooper, Economic Development Director, Obion County Chamber of Commerce Suzie German, Executive Director, Weakley County Chamber of Commerce Lois Birk, Executive Director, Chamber of Commerce of the Twin Cities Lisa S. Hankins, Executive Director, Lauderdale County Chamber of Commerce W. Allen Hester, President and CEO, Dyersburg/Dyer County Chamber of Commerce Frankie McCord, Executive Director, Crockett County Chamber of Commerce Paul Latture, III, President and CEO, Jackson Area Chamber of Commerce Ernie Moser, Dean, College of Business and Public Affairs, UT Martin Bill Randall Kee, Executive Director, Camden/Benton County Chamber of Commerce Tom Payne, Horace and Sara Dunagan Chair of Excellence in Banking, UT Martin D. Crawford Gallimore, Chief Manager and Financial Officer, Hamilton-Ryker Group Roy B. Herron, Tennessee State Senator List of Exhibits Exhibit I: Exhibit II: Exhibit III: Exhibit IV: Exhibit V: Exhibit VI: Exhibit VII Exhibit VIII Economic Status of Tennessee and REED Center Service Area Regional Unemployment, Income and Growth Indicators Current (Unrenovated) Site of the Proposed REED Center Façade of Similar Downtown Building (Proposed REED Center Approximation) Operational Schedule Balance Sheet (Start-Up) Income Statement (End of First Year of Operations) Funding Sources 2 6 7 11 11 17 18 19 20 Regional Entrepreneurship and Economic Development (REED) Center Proposal for a Rural Business Enterprise Grant (USDA) I. Project Overview A. Background The proposed Regional Entrepreneurship and Economic Development (REED) will serve existing and prospective entrepreneurs and support economic development in rural northwest Tennessee. The mission of the REED Center is to meet the multifaceted needs of entrepreneurs through a combination of one-on-one consultations, interactive training programs, and technical resources. The REED Center will encourage and support the emerging small business ventures and provide support to current businesses in the region striving to survive and grow. Through its network of partners and range of services, the Center will promote job creation and retention, provide training and associated resources to facilitate economic development, and enhance the quality of life in rural northwest Tennessee. Many potential small business owners, while enthusiastic about a business idea, are not personally, financially, or professionally prepared to assess feasibility, develop a marketing plan, or address working capital needs. This unique non-profit partnership will provide consultations with volunteer financial services professionals, trained small business consultants, and successful entrepreneurs. Additional support will be provided through the Center’s computer-based resources, seminars, workshops, and ongoing assistance programs. Each of these services will assist new entrepreneurs as they transition from a business idea to actual operation. This process will include preparing clients as they enter into formal relationships with lenders, accountants, vendors, employees and other stakeholders. The REED Center is a multilateral partnership among municipal governments, economic development agencies, regional small business development centers (including the Tennessee Small Business Development Centers at Jackson and Dyersburg), chambers of commerce, financial institutions, institutions of higher education, and practicing business professionals. Initial funding and ongoing operating support, including referrals and on-site expertise, will also be provided by regional banking institutions and the University of Tennessee at Martin College of Business and Public Affairs – including the Dunagan Chair of Banking, the Hendrix Chair of Free Enterprise and the Oldham Center for Entrepreneurship and Economic Education. Through the funding, staffing, referral and resource commitments of regional public and private organizations, the REED Center will serve as a hub of information and service. Individualized services will include assistance in preparing feasibility studies, business plans, financial projections, employee benefit plans, and personal financial plans. Through its consultation and training sessions, technical resources, and referral systems, the Center will fill the gap between the business concept and operational reality. 3 B. Activities Specific services of the REED Center include: Programs and training sessions – topics include: o o o o o o o o o o o Types of services and assistance: o o o o o o o o o Business plans Positioning products Effective start-ups and feasibility of prospective businesses Personal financial planning How to structure the financing of a business How to pitch a business to potential investors How to attract and retain good people Employee benefits Bank lending seminars Planning for growth and succession Developing new and alternative business ventures in critical business areas such as agriculture and land utilization, professional services, and technology-based industries Preparing business plans Preliminary accounting and legal assistance Conducting marketing surveys and feasibility studies Developing financial projections Identifying sources of financing Formulating loan proposals Developing new markets Managing cash flow One-on-one management consulting will be offered by faculty, small business development center consultants, and practicing business professionals. Resources and facilities: o Help Desk - a place to answer business-related questions, direct individuals to specific publications and electronic resources, provide information regarding seminars offered through the Center or its partners, and set appointments with the REED Center coordinator or individual advisors o Consultation Office – for business advisors to meet with clients o Conference Room – for small group meetings and training sessions o Seminar Room – for seminars and conferences equipped with multimedia support o Coordinator’s Office o Resource Center – offering workstations, selected reference materials including books, statistical information, online databases, business and financial planning software, videos, and other resources o Web Site - including useful sources and links for small business 4 II. Demonstration of Need A. Introduction Global competition and economic change have resulted in the loss of manufacturing jobs in our region. In rural areas, the relocation or downsizing decisions of a single company can have a devastating long-term impact on employment and wages. And, while recruitment of major industrial firms is important, international technological and labor trends dictate that emerging small businesses will be a larger part of the solution. The ability to transform ideas, talent, and hard work into self-sufficiency is not only a basic tenet of the American dream but has become a necessity for U.S. competitiveness. According to a recent article in the U. S. News and World Report (Ramachandran, N., “Be Your Own Boss,” August 2, 2004, pp. 62-66), the timing has never been better to be an entrepreneur. Low interest rates and ready credit make financing easier, a still-soft job market brought on by downsizing ensures availability of labor, and strong consumer and government spending support demand. Despite this environment of opportunity, a study conducted by the Ewing Marion Kauffman Foundation points out that while, at any given time, 10 million Americans are trying to start their own businesses - only one-third of them actually do so. Of those who do, the majority fail eventually fail often being driven out by poor business planning or inadequate working capital. In fact, a 2002 study from the Small Business Association (SBA) claims that only 66% of new firms with employees survive the first two years, and only 40% are still in operation after six years. Evidently, pursuing this facet of the American dream is more difficult than it appears. Steps can be taken, however, to assist entrepreneurs as they strive to succeed. The U.S. News and World Report article mentioned previously describes four things that improve an entrepreneur’s chances for success. First, individuals are encouraged to carefully research potential locations for the business. Second, they should network with experts, including current and retired business owners, the Small Business Association (SBA), local chambers of commerce, and small business development centers. Third, they must obtain adequate financing. And finally, prospective entrepreneurs should pursue all relevant education, training, and experience. The proposed REED Center is designed to prepare entrepreneurs to meet each of these needs. Furthermore, as evidenced in the remainder of this section, the rural and substantially underserved region served by the center will benefit from an economy strengthened by small business growth. B. Economic Status of Service Area Offering service to rural Northwest Tennessee, the REED Center’s primary service area will be Weakley County, Henry County, northwestern Carroll County, northeastern Gibson County, and eastern Obion County. In addition, the “Twin Cities” area surrounding South Fulton, Tennessee has expressed interest in using and supporting the facility. The center’s secondary service area will include the remainders of the above counties, plus Benton, Crockett, Dyer, and Lake Counties. The population within a one-hour drive of the REED Center’s location in downtown Martin, Tennessee is approximately 225,000. 5 The Tennessee Department of Economic and Community Development (www.state.tn.us/ecd/pdf/cdbg/factsheet.pdf) designates “Special Enhancement Counties” as those that record the worst unemployment, lowest incomes, and greatest poverty. Compared to the remainder of the state, the counties of northwest Tennessee suffer disproportionately in these measures. As illustrated in Exhibit I, the Eighth Congressional District includes five “Special Enhancement Counties”. In addition, Matt Kisber, Commissioner of the Department of Economic and Community Development, has assigned two additional counties in the Eight District as economically troublesome. None of the other eight congressional districts in Tennessee has more counties in distress, and only one district has the same number. (See Exhibit I below - Eighth Congressional District outlined in red.) Exhibit I Economic Status of Tennessee and REED Center Service Region In addition to the unemployment, income, and poverty profile of the service region, the need for the REED Center is supported by the lagging indicators of economic growth summarized in Exhibit II. Focusing more narrowly on Martin’s home county (Weakley), its contiguous counties of Carroll, Gibson, Henry, and Obion, and its immediately outlying counties of Benton, Crockett, Dyer, and Lake, economic indicators provide further evidence of a need for resources supporting initiation and growth of small business enterprises. 6 The U.S. unemployment rate currently stands at 5.5% having decreased a modest .1% during the past year. As shown in Exhibit II, only Obion County’s 2003 unemployment rate is lower than the national average. This is attributable in part to the presence in Union City of two key organizations: Goodyear Tire and Rubber Company, which employs over 3,000 people, and Tyson Foods Incorporated, which employs over 1,200. With exception of Obion and Dyer Counties, per capita income in the region ranges between the 30th and 95th (out of 95) positions in the state. In addition, growth rates based on retail sales and sales tax collections widely vary with recent declines prevalent in many counties. For its part, Dyer County’s total investment in new plants and expansions between 1994 and 2003 was an impressive $461 million dollars. The intense efforts of the TSBDC located in Dyersburg, which would also provide support to the proposed REED Center, have contributed to that comparatively robust figure. Exhibit II Regional Unemployment, Income, and Growth Indicators 2001 Per Capita Income County 2003 Unempl. Rank Rate Average in TN Weakley Carroll Gibson Henry Obion Benton Crockett Dyer 6.1% 12.0% 9.4% 6.8% 4.7% 10.5% 7.8% 7.5% $20,594 $21,038 $22,401 $22,475 $24,089 $19,994 $21,601 $22,931 51 40 30 31 14 49 35 29 Lake 6.1% $13,306 95 Fayette 5.5% $24,494 22 Williamson 2.9% $41,524 0 2002 Retail Sales Total $192,408,124 $171,844,434 $367,468,640 $372,606,441 $310,741,386 $122,402,245 $46,620,815 $386,046,193 % Change Since 2000 -2.59% 9.11% 5.81% 18.43% -2.54% 0.42% -1.43% -0.74% 2001-2002 State Sales County 10-Year Growth Report Tax Collection (1994-2003) % Change Since 1999New ExpanTotal Total 2000 Plants sions Investment 0.32% 2.50% -4.11% -2.23% 1.52% -4.61% -2.47% -6.37% 6 10 14 7 6 4 2 9 88 80 149 99 86 20 19 109 $1,580,384 1.05% 2 7 $102,211,249 -0.89% $7,787,334 -0.49% 15 33 $51,557,123 $2,260,167,126 14.68% $148,992,181 9.92% 5 141 $184,872,426 $24,102,216 -0.81% $13,477,555 $9,745,108 $21,383,918 $19,861,327 $20,424,572 $7,127,169 $2,876,050 $23,070,847 $43,237,934 $309,587,050 $274,585,823 $131,155,825 $387,880,221 $22,930,433 $15,356,522 $461,002,683 $3,682,400 Source: www.state.tn.us.ecd/comdev.htm Note finally that data from Williamson County is included in Exhibit II for comparison since that area is recognized as one of the most economically vibrant in the state with an unemployment rate of 2.9% and average per capita income of over $40,000. Fayette County is also included as a benchmark since it remains a largely rural west Tennessee county notwithstanding the influence of suburban growth from eastern Memphis. The figures from Fayette County are similar to, though somewhat better than, those from Weakley County. Notably, Fayette County was awarded a Rural Business Enterprise Grant in the amount of $57,500 in fiscal year 2004 (www.rurdev.usda.gov/rd/newsroom/2004/BusEZECEarmarkslist.pdf). 7 C. Currently Available Services In partial response to the needs of the region, the U. S. Small Business Administration and the Tennessee Board of Regents (TBR) System of universities and community colleges have partnered to provide service centers around the state through the Tennessee Small Business Development Centers (TSBDC) network. The TSBDCs nearest the proposed Regional Entrepreneurship and Economic Development Center, however, are located in Dyersburg and Jackson. Representative of the current scarcity of advisory resources, an agent from the Jackson TSBDC makes once-a-month visits to many small towns in northwest Tennessee. These visits typically involve brief consultation and overview sessions with individuals who have specific questions or problems pertaining to small business initiatives. While this has provided valuable assistance to many individuals during the past two years, the service is limited by lack of adequate time, facilities, and supporting resources. The need to cover such a large geographic area and the increased demand for assistance in the region require a more complete and integrated support system. The only other source of assistance for small business entrepreneurs in the proposed REED Center service area is a Small Business Resource Center located in the C. E. Weldon Public Library in Martin. While helpful, this is simply a collection of information, available both in print and via the Internet that individuals can read on their own. Although this addresses some basic needs, its effectiveness is limited by a lack of the personal interaction and individualized focus that many people new to the world of entrepreneurship require. The REED Center will address this need, as it will be a highly visible, easily accessible facility offering free or low cost business consulting services, seminars, technical resources, and ongoing support. D. Current Gap in Available Services As detailed in the previous section, the rural area surrounding Martin, Tennessee is characterized by an abundance of small towns with no business development center or other dedicated resource in close proximity. The population does not have direct, convenient access to a TSBDC and receives only limited assistance from any organization whose focus is to support small business development. Currently, the majority of all commercial activity in Tennessee results from small business operations. And, in light of recent trends, small emerging companies will account for an increasing portion of national, state, and regional economic output. As a result, it is crucial to encourage entrepreneurial activity by providing resources necessary for small business development. This need is particularly true in rural communities where technical expertise is not readily available and where, relative to urban areas, few resources exist for entrepreneurs. The size of the geographical area, the importance of small business development to the regional economy, and the diverse needs of prospective and existing entrepreneurs, render currently available resources inadequate. According to the TSBDC network, there were almost 1,000 constituents from the northwest Tennessee Congressional District 8 who sought help with their small businesses during 2003 alone. Managing their needs required over 5,200 hours of consulting time. In many cases, these individuals not only had to know where to look for help 8 but also travel long distances to obtain it. Importantly, actual demand is no doubt much higher as the TSBDC figures do not include individuals who did not seek assistance due to a lack of a highly visible, well-publicized and readily available resource. The REED Center will obtain additional clients through referrals from its many partners, including banks and other financial institutions; current and retired small business owners; the University of Tennessee at Martin and its Oldham Center for Entrepreneurship and Economic Education, and Chairs of Excellence in Banking and Free Enterprise; area chambers of commerce; and regional economic development organizations. Once the center and its advisory and training resources are available, its location, widely advertised services, diverse network of referring companies and organizations, and ease of access will generate even more contacts. Finally and in addition to individual advisory services, the ability to offer seminars and workshops by involving current and retired business owners, university faculty, bankers, and other business professionals will provide enormous value. E. Current Opportunity To address the service gap in the previously described region of rural northwest Tennessee, we propose to establish a Regional Entrepreneurship and Economic Development Center in downtown Martin, Tennessee. The center will provide informational and technological resources, workshops, seminars, and individualized consultation to present and would-be entrepreneurs in the region. Several stakeholders have agreed to merge their resources and expertise in a unique way in order to establish and maintain this center. To accomplish this goal, we need to obtain additional funds for the renovation of an available building (the primary focus of this USDA Rural Business Enterprise Grant request), furnish and equip the location, hire appropriate staff, schedule program offerings, market the center to the public, and support ongoing operations. The remainder of this report includes the specific mission and operational scope of the proposed REED Center. The following sections provide a summary of deliverable services and a detailed description of the facility, its resources, location, and staffing. Next, the organizational structure is outlined along with a timeframe and marketing plan to implement the start-up. Next, we summarize the measures that will be used to track the effectiveness of the center. Finally, relevant financial projections and a description of funding sources are included to show ongoing operational support of the REED Center. III. Description of the Proposed REED Center A. Planning and Mission A Planning Committee composed of UT Martin’s Hendrix Chair of Excellence in Free Enterprise, the Dunagan Chair of Excellence in Banking, a representative from the TSBDC in Jackson, the Executive Director of the Weakley County Chamber of Commerce, a bank manager of BancorpSouth in Dresden, and several successful local business owners (see Appendix A) met over a period of months to delineate the purpose and proposed offerings of the REED Center. The Mission Statement they devised follows: 9 “The Regional Entrepreneurship and Economic Development Center (REED Center) will meet the needs of existing and potential business owners through one-on-one consultations and interactive training programs. It will serve as a hub of information for prospective entrepreneurs and owners of existing small businesses who need individual consultation services, group training services, and associated technical resources. The REED Center will develop and deliver courses, workshops, and research projects that respond to the needs of small businesses and support regional economic development. The REED Center will combine the resources of regional businesses, chambers of commerce, small business development centers (Jackson and Dyersburg), rural development services, lending institutions, city governments, the UT Martin College of Business and Public Affairs, the Hendrix Chair of Free Enterprise, the Dunagan Chair of Banking, the Financial Services Center, the Oldham Center for Entrepreneurship and Economic Education, and other public and private organizations to provide innovative and ongoing training and consulting services.” Additional discussion has recently ensued citing the need for a broader definition of “economic development” to include the concept of individual solvency. This need is underscored by the consistent ranking of Tennessee, and West Tennessee in particular, at or near the top of national bankruptcy statistics. Tennessee currently ranks second among all states for the 12-month period ended March 31, 2004. The overall statistics are staggering, as the American Bankruptcy Institute reported one filing for every 38.7 households in Tennessee during that 12-month period (see http://www.abiworld.org/statcharts/HouseRank.htm). The high bankruptcy rates in Tennessee in general and West Tennessee in particular point to the widespread need for basic financial education and training in our region. Successful small businesses depend on the financial well-being of their owners, customers, and associated stakeholders. Toward this end, the REED Center will offer seminars in money management and personal financial planning as appropriate to promote the public’s quality of life in general and provide individuals with basic information and knowledge upon which to build their entrepreneurial dreams. B. Facilities The REED Center is to be located at 406 South Lindell Street, Martin, Tennessee, in a downtown structure popularly known as the “Larry Taylor Building.” At the corner of South Lindell and University Streets, the site is a prime business locale just in front of Martin City Hall and across the street from the Post Office. The facility is highly visible and has excellent parking. Once the facility’s interior and exterior is renovated, the REED Center will occupy the lower left half of the building pictured in Exhibit III (below). Dimensions for the area are roughly 27’W X 60’L, with a narrow 31’ hallway extending to the back exit. (See Appendix B for the overall floor plan.) Approximately 1,630 total square feet are included in this long, rectangular space, with about 1,250 square feet of usable space (discounting closets, hallways, storage areas, etc.). 10 Exhibit III Current (Unrenovated) Site of the Proposed REED Center Funding is required to renovate the existing building. While the existing structure is sound, needed renovations include, but are not limited to: dividing the space into the necessary offices, work stations, and conference/seminar rooms; installing proper insulation and a heating/air conditioning system; replacing the ceiling and flooring; refinishing the walls; outfitting the bathroom; installing lighting; hanging doors and shelving; painting; and setting new glass panels and doors across the exterior front. (See Appendix C for a contractor’s quote). In addition, an awning supported by columns will be placed in front to achieve a façade similar to that of the Office Products building just down the street (See Exhibit IV below). Exhibit IV Façade of Similar Downtown Building (Proposed REED Center Approximation) The Larry Taylor Building is owned by the City of Martin. City officials have agreed to lease this space to the University of Tennessee at Martin, for the purposes of creating and maintaining 11 a Regional Entrepreneurship and Economic Development Center, at a cost of $1 per year for five years with an option to renew. Pursuant to that lease agreement, the city will also furnish basic telephone service (excepting long distance charges), hot and cold water, sewage, heating and air conditioning equipment, electricity, and Internet service to the center during that time. (See Appendix D for the lease agreement.) Upon renovation, the interior of the proposed REED Center will include a: Help Desk - a place to answer business-related questions, direct individuals to specific publications and electronic resources, provide information regarding seminars offered through the center or its partners, and set appointments with the REED Center coordinator or individual advisors. Consultation Office – for business advisors to meet with clients Conference Room – for small group meetings and training sessions Seminar Room – for seminars and conferences equipped with multimedia equipment Coordinator’s Office Resource Center – offering individual workstations; reference materials including books, statistical information, online databases, business and financial planning software, videos and other resources. C. Programs, Training Sessions, and Services Programs and training sessions – topics include: o o o o o o o o o o o Business plans Positioning products Effective start-ups and feasibility of prospective businesses Personal financial planning How to structure the financing of a business How to pitch a business to potential investors How to attract and retain good people Employee benefits Bank lending seminars Planning for growth and succession Developing new and alternative business ventures in critical business areas such as agriculture and land utilization, professional services, and technology-based industries Types of services and assistance: o o o o o o o o o Preparing business plans Preliminary accounting and legal assistance Conducting marketing surveys and feasibility studies Developing financial projections Identifying sources of financing Formulating loan proposals Developing new markets Managing cash flow One-on-one management consulting will be offered by faculty, small business development center consultants, and practicing business professionals. 12 IV. Operations A. Staffing and Hours of Operation It is important for the REED Center to be open and staffed on consistent basis, allowing the clientele to rely on its accessibility. Although financial constraints preclude a high investment in labor during the start-up period, the center will operate a minimum of 20 hours each week, namely from 9:00 a.m. to 2:00 p.m. on Monday, Tuesday, Thursday, and Friday. In addition, consulting times outside of normal business hours will be scheduled on a case-by-case basis with clients. Also, telephones will be answered from 8:00 a.m. to 5:00 p.m. Monday through Friday to provide general information and allow for scheduling of appointments. As demand grows and revenues from seminar fees, grant funds, and sponsorships increase, we can and will extend the hours of operation. A coordinator and a UTM student intern/assistant will staff the center at all times. Typical duties for the director will include conducting initial interviews with clients to determine their needs; initiating and maintaining files on all clientele; providing basic guidance regarding business issues (i.e. the importance of a business plan, the steps necessary to obtain a loan, etc.); coordinating meetings as necessary between clients and advisory staff; and referring clients to partners as appropriate to meet ongoing needs (i.e. UTM’s College of Business and Public Affairs for consultation or educational coursework, loan officers for financial advisory sessions, visiting advisors from supporting small business development centers at Dyersburg and Jackson for general business planning, etc.). The coordinator will also be responsible for coordinating, promoting, and hosting seminars and workshops; conducting follow-up for each client to determine outcomes; maintaining records and statistics on said outcomes; and reporting activities and results to the REED Center Board. In addition, the director will have responsibility for the general administration and upkeep of the center, including ensuring the presence of adequate office supplies and up-to-date resources, overseeing the work of the assistants, and managing and reporting financial performance. Lastly, the coordinator will be charged with pursuing ongoing funding for the center through grants, with sufficient independent revenues anticipated beyond the second year. (See Appendix E for job description.) Student interns/assistants will be required to perform general clerical duties; to act as receptionists for the center; to provide hands-on assistance to clients who are attempting to utilize the center’s print and Internet resources; and to complete tasks and projects as requested to support the efforts of the director and the advisory staff. Student interns will not be independently responsible for the management of clients’ needs; however, they will be afforded an opportunity to assist in small business development projects that, in turn, will allow them to gain valuable first-hand, real world experience. B. Entities Involved and Their Roles The REED Center will be the culmination of a unique partnership between the University of Tennessee at Martin, the City of Martin, the United States Department of Agriculture (USDA), the Tennessee Small Business Development Center network, area banks, regional chambers of 13 commerce and economic development organizations, and other public and private entities. Each partner’s specific role will be delineated in this section. The University of Tennessee at Martin will lease the space for the REED Center. The College of Business and Public Affairs will employ the center’s staff and will provide immediate supervision to its operations, as well as offering coursework to educate clients in business principles and entrepreneurship. Selected students will be employed as support staff for the venture. The Hendrix Chair of Free Enterprise, the Dunagan Chair of Banking, and the Oldham Center for Entrepreneurship and Economic Education will oversee the programming, provide expert consultation, and earmark funds for ongoing operations The Office of Extended Campus and Continuing Education will facilitate seminars and offer non-credit courses that support the center’s mission. The City of Martin will provide the space for the facility by allowing UT Martin to lease a vacant portion of a building in downtown Martin. The terms of the lease specify rent of $1 per year for five years, with utilities and maintenance included. The United States Department of Agriculture (USDA) will partner with the REED Center by providing funds necessary to renovate and develop the site. The Tennessee Small Business Development Center (TSBDC) network through its facilities in Jackson and Dyersburg, will lend managerial and operational expertise by guiding the formulation of the center and by performing onsite consultations with clients on an ongoing basis. These agents have also offered to share informational resources, databases and computer software, and provide additional publicity for the center. Regional community banks namely First Citizens National Bank, First State Bank, and Reelfoot Bank, have agreed to supply funds for start-up as well as for operations during the first two years (with continuing support renewable upon review at that time). Additionally, these and other lending institutions have indicated that they will support the center by referring clients, committing their loan officers for several hours each month for consultation and/or presentation of seminars, and donating furniture and equipment. Regional chambers of commerce and economic development organizations have pledged their expertise and promotional assistance. The Martin Economic Development Corporation, the Obion County Industrial Development Corporation, and both the Martin and McKenzie Industrial Development Boards have voiced their enthusiasm for this concept. Also supportive are the Chambers of Commerce in Weakley, Obion, Crockett Dyersburg/Dyer, Camden/Benton and Lauderdale Counties, the Jackson Area 14 Chamber of Commerce, and the Chamber of Commerce of the Twin Cities (i.e. Fulton, KY and South Fulton, TN). Other public and private entities will also partner in the center. A number of current and retired business people have agreed to donate a portion of their time to meet with clients as necessary and mentor them as they move through the business development process. The Tennessee Business Development Corporation of Paris, Tennessee (the only SBA Preferred Lender in this region), has committed to assist the center by sponsoring public training sessions, holding workshops for participating loan officers regarding SBA programs, and both making and accepting client referrals. Civic organizations and accounting/law offices may also provide limited funding, referrals, and/or consultations. Finally, it should be noted that overwhelming support for the REED Center is evidenced by the fact that no institutions or individuals who were approached with this partnership opportunity declined. This is additional evidence of both the need for this resource in rural northwest Tennessee and the high likelihood of additional and ongoing support from these and other organizations. Once funding is secured to renovate the facility, a board will be formed consisting of center partners and stakeholders. While direct supervision for daily operations will flow from UT Martin and its College of Business and Public Affairs, the board will provide strategic oversight and will hold both the center and its staff accountable for the results achieved. Board meetings will be held at least quarterly. (NOTE: Letters of support from many of the above entities are listed in the Table of Contents and are attached in Appendix F.) C. Marketing Plan The marketing plan consists of a multi-tiered promotional strategy including the following: Personal selling o The coordinator will respond personally to the majority of inquiries made to the center in order to promote the wide array of available services. o The coordinator will also initiate and maintain contact with targeted small businesses in the region to determine their training needs and to market the center. Advertising o Referrals from partner institutions and word-of-mouth advertising will be the center’s single most important means of promotion. These referrals from our partners and recommendations from satisfied clients will be key to the center’s success. 15 o As a non-profit service organization, announcements will be made through local media (community-based newspapers and radio stations) and most often be carried without charge. o Occasionally, a special program may be promoted through formal advertisements in the relevant newspapers, if the registration fees generated by such an action are judged likely to offset the cost. o Trifold brochures will be developed to market the center. In addition, the nearby TSBDCs have offered to include the REED Center in their own brochures. o As a client database is developed, targeted mailings may be approved for certain seminars and conferences. Publicity o The center will submit photographs and an article to all the area’s newspapers to publicize its grand opening. o Articles describing the larger sponsored events will also be sent, as well as occasional human-interest stories featuring successful clients. Sales Promotion o D. Onsite signage and promotional displays will assure outstanding visibility from busy South Lindell Street. Public service announcements, website notifications, and other signage displayed at partner institutions will further promote the center. Measures of Success Both quantitative and qualitative measures will be used to assess the performance of the REED Center. The number of visitors using the print and Internet resources will be tracked as will the number of clients using advisory services. In addition, the number of hours of preparation and consulting time provided by advisors will be monitored over time. Similarly, clients interviewed by the director and the many center advisors will be counted, as will the duration and topic of each session. The number of participants in seminars and other training programs will also be counted. Qualitative data will flow, in part, from the individual files created for interviewed clients. All subsequent contacts, referrals, and follow-ups will be noted in these files. For instances in which the center’s services result in the creation or expansion of business ventures, the number of jobs created/saved and the amount of capital investment will be recorded. For purposes of quality assurance and continual improvement, questionnaires regarding the quality of materials, instructors, and the relevance of the topics will be completed. More subjective qualitative data will also result from these post-session and post-seminar evaluations. Suggestions will be solicited regarding additional topics and advisory activities. Finally, data will be aggregated and presented within a monthly activity report to supervisors at UT Martin and on a quarterly basis to 16 the REED Center Board. Evaluation and adjustment of the center’s operations, staffing, and programs will be ongoing. E. Timeframe for Implementation The steps required to launch the REED Center, their sequence, and overall timing are shown in Exhibit V. Exhibit V Operational Schedule Activity Plan concept Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 (& prior) Solidify partners & roles Write grant proposal Solicit cash & inkind donations Await grant approval Bid renovation contract Hire center coordinator Purchase equipment Undertake renovation Install equipment Initiate marketing plan Hire support staff Schedule consultants Organize & prepare space GRAND OPENING Provide services Hold board meeting & formal evaluation of 1st quarter 17 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Once the critical USDA funding is secured, approximately four to five months will be required to renovate the site; hire the staff; acquire and install the necessary equipment, software, and resource materials; set up the first quarter’s programming and consultant schedule; and prepare and circulate brochures and other promotional materials. The first day of operation is projected as March 1, 2005. V. Financial Considerations A. Initial Financial Statements and Operating Budget Initial financials for the center are reflected by the projected Balance Sheet at Start-Up (Exhibit VI) and the projected Income Statement at the End of the First Year of Operations (Exhibit VII). The first of these statements, the pro forma balance sheet, itemizes the sources of funding in the right column and the uses of funds in the left, applicable prior to opening day. Exhibit VI Balance Sheet (Start-Up) REGIONAL ENTREPRENEURSHIP & ECONOMIC DEVELOPMENT CENTER ASSETS Current Assets Cash for Renovation Cash for Operations Software & Print Resources Office Supplies Total Current Assets Noncurrent Assets Computers (3 workstations) Printer/Copiers (2) w/10 Cartridges Furniture Building Supplies Total Noncurrent Assets TOTAL ASSETS $73,000 $2,000 $2,500 $850 $78,350 $6,000 $500 $4,000 $12,000 $22,500 $100,850 18 LIABILITIES & EQUITY Liabilities None at Inception Total Liabilities Equity USDA Grant Contributions Community Banks $0 $0 $60,000 $25,000 Other Sponsors In-Kind Donations $500 $15,350 Total Equity $100,850 TOTAL LIABILITIES & EQUITY $100,850 Funding through year one is demonstrated by an Income Statement at the End of the First Year of Operations (below). Finally, it is important to note that while Exhibit VII summarizes the first year of operations, continuing sources of revenue in the out years are likewise committed. Exhibit VII Income Statement (End of First Year of Operations) REGIONAL ENTREPRENEURSHIP & ECONOMIC DEVELOPMENT CENTER Revenues Seminar fees (average 1 seminar/mo. w/10 participants @ $100 each) Endowment funds (2 UTM Chairs of Excellence & Oldham Center @ $500 ea./month) Contributions ($500/mo.) Total Revenues $12,000 $18,000 $6,000 $36,000 Cost of Services Provided Speaker fees for seminars (average 1 seminar/mo. @ $400) Handouts & promotion specific to seminars (average 1 seminar/mo. @ $100) Total Cost of Services Provided $4,800 $1,200 $6,000 Gross Profit $30,000 Selling, General, and Administrative Expenses Brochures and mailings (general to REED Center; $150/mo.) Operating expenses (office supplies, long distance charges, etc.@ $250/mo.) Salaries Coordinator ($15/hr X 20 hrs/wk X 48 wks/yr) Student Interns/Assistants (2 @ $6.00/hr X 10 hrs/wk X 40 wks/yr) Total Selling, General, and Administrative Expenses Earnings from Operations = Net Income (no interest expense or income tax) 19 $1,800 $3,000 $14,400 $4,800 $24,000 $6,000 B. Sources of Funding Specific funding sources for the REED Center identified and committed through the extensive partnership network are summarized in Exhibit VIII. Exhibit VIII Start-Up and Operational Funding Sources REGIONAL ENTREPRENEURSHIP & ECONOMIC DEVELOPMENT CENTER SOURCE USDA-Rural Business Enterprise Grant City of Martin UT Martin Martin Economic Development Corp. Marvin Windows and Doors TSBDC Lending Institutions Office Products Other (civic groups, etc.) Program fees TOTALS DESCRIPTION Construction / renovation Lease of space Utilities Endowment 10% Salary: Dunagan Chair 10% Salary: Hendrix Chair Maintenance fee 10% Salary: Director 8’ Doublewide stationary panels w/simulated divided lights (6) 5% Salary: Dyersburg 5% Salary: Jackson Computer software Start-up cash Operating capital Furniture / equipment 5% Salary: Loan officers (3) Office equipment / supplies Start-up cash Seminars, conferences, etc. 20 MONETARY $60,000 IN-KIND $6,000 $3,000 TOTAL $60,000 $3,500 $6,000 $3,000 $18,000 $11,500 $11,000 $500 $3,500 $12,000 $12,000 $2,000 $2,000 $1,500 $500 $2,000 $2,000 $1,500 $25,000 $6,000 $1,750 $7,500 $100 $500 $12,000 $122,000 $12,000 $183,850 $18,000 $11,500 $11,000 $500 $25,000 $6,000 $1,750 $7,500 $100 $61,850 VI. Summary of Grant Request The Regional Entrepreneurship and Economic Development Center hereby requests $60,000 in funding through a USDA Rural Business Enterprise Grant to perform significant renovations to the designated facility described in Section III (B) of this proposal. Start-up funding, as well as operating monies and referrals, will be supplied by regional lending institutions. The University of Tennessee at Martin, through two of its endowed chairs in banking and free enterprise along with the Oldham Center of Entrepreneurship and Economic Education, will provide $1,500 each month in operating funds. The City of Martin will supply the building and pay associated utility costs for the project. The College of Business and Public Affairs will provide the time and expertise needed to supervise the center with additional oversight by a representative board of center partners and stakeholders. The Tennessee Small Business Development Centers in Jackson and Dyersburg will share information resources and, along with bankers, current and retired business owners, provide professional consultation services. Additional donations, such as building materials, furnishings, equipment, and/or supplies, have already been committed from the banks and will continue to be solicited, with gift-in-kind credit given to the donors for tax purposes. Rarely has a multilateral project had so much potential to add value to a rural business community. The REED Center has gained unanimous support among targeted partners and is expected to excel in meeting the needs of existing and potential business owners in this region. By helping to retain existing business and attract new business and industry to the area, the REED Center will contribute greatly to the economic well-being and quality of life of the citizens of rural northwest Tennessee. VII. Priority Score Sheet Summary A summary of point justification issues follows. Please refer to the preceding narrative for additional details. 1. Evidence of at least five years successful experience in the type of activity proposed in the application. The REED Center will rely heavily upon the expertise of the two partners from the Tennessee Small Business Development Center network, Jamie Frakes and Ron Acree. Both gentlemen have over five years experience in their respective positions, and have eagerly agreed to provide one-on-one client consultations, access to expert speakers (including themselves as appropriate), and oversight for the center’s program development. (Please see attached letters of support.) In addition, the REED Center will make regularly scheduled use of loan officers with decades of experience from partnering banks. These individuals will critique business plans and feasibility and provide financial consultations. Jim Thigpen, a Preferred Lender with the Small Business Administration who is located in Paris, Tennessee, will do the same. A cadre 21 of established, successful small business owners from the area have offered to meet with clients as needed. The UT Martin Office of Extended Campus and Continuing Education and the College of Business and Public Affairs, along with its component Oldham Center for Entrepreneurship and Economic Education, Horace and Sara Dunagan Chair of Banking, and Tom E. Hendrix Chair of Free Enterprise will further support the education and training needs of clients by offering advisory support and relevant credit and non-credit courses and seminars. 2. Evidence that the applicant has commitment of funds from nonfederal sources for proposed project. This concept has met with enthusiastic support from a wide range of interested parties. The center will receive support, both monetary and through in-kind donations, from the City of Martin, the Martin Economic Development Corporation, the University of Tennessee at Martin, several lending institutions, the Tennessee Small Business Development Centers, Marvin Windows and Doors of Ripley, Tennessee, independent local businesses, and others. (Please see the “Sources of Funding” table and the letters of support from UT Martin’s Chancellor and various banks.) 3. Evidence from appropriate government officials and/or entities that the proposed grant project is consistent with, and does not duplicate, economic development activities for the project area under an existing community or economic development plan covering the project area. The specific geographic area targeted by the REED Center has great need for economic development. Yet despite the sincere efforts of the TSBDC and other agents, due to constraints of distance, time, space, and supporting resources, this area remains underserved. Through frequent interaction and discussion, the partners who have conceptualized this project have built a synergistic framework that will address this area’s economic interests much more effectively than any entity could possibly achieve independently. (Please see attached letters of support from the mayor of Martin, economic development authorities, the TSBDC partners, and the region’s chambers of commerce.) 4. Evidence that the anticipated development, expansion, or furtherance of business enterprises as a result of the proposed grant project will create and/or save jobs associated with the affected businesses. As a new venture, the REED Center obviously has no data of its own to support this claim. A reasonable expectation, however, might be that the center will accomplish business expansion and retention in a manner similar to, or even exceeding, that of the TSBDCs. Interestingly, Ron Acree, of the Jackson TSBDC, states in his letter that he anticipates receiving “at least double the number of requests for consulting upon the opening of the center.” (Please see attached letter of support.) 22 5. Letters of support from businesses. Please refer to the attached letters of support from partnership entities along with area business and affiliate organizations including The Hamilton-Ryker Group, regional community banks, chambers of commerce, and economic development authorities. VIII. Future Possibilities The future holds many possibilities for expansion of services through the REED Center. For example, with the participation of currently operating business owners and service professionals already established, it would be a likely progression to charter a Service Corps of Retired Executives (SCORE) chapter through the center. Informal support groups for new entrepreneurs could be organized and coordination with case-based classes in the newly revised degree program in entrepreneurship and the award-winning Students in Free Enterprise organization at UT Martin could provide support to regional business organizations with special projects needs. In the future, a broader base of educational projects that involve area schoolteachers and young people could serve to promote financial literacy and plant the seeds of free enterprise opportunity. With the UT Martin connection and support from area businesses, community banks, and regional chambers of commerce, the center might also sponsor business-planning contests and celebrate successful entrepreneurs who launched their businesses from the facility. Finally, the potential to host professional seminars to support established businesses needing upto-date information and technical advice to stay competitive is unlimited. 23 IX. Appendices A. REED Center Planning Committee Ron Acree (TSBDC Paris-Jackson) PO Box 928 Humbolt, TN 38343 731-697-3431 Eddie McKelvy (Stewart Oil Co.) 108 W. Union St. Gleason, TN 38229 731-648-5111 Terri Brundige (BancorpSouth) P.O. Box 109 Dresden, TN 38225 731-364-3193 Audrey Roberts (Martin Manufacturing – Retired) 1445 Main St. Martin, TN 38237 731-587-6327 Crawford Gallimore (Hamilton-Ryker) 947 E. Main St. Martin, TN 38237 731-587-3161 Ext.213 Dr. Steve Jackson University of Tennessee at Martin College of Business and Public Affairs Martin, TN 38238 731-587-7228 Joe Exum (Leland Powell) 8160 Highway 45 Martin, TN 38237 731-587-3106 Dr. Tom Payne University of Tennessee at Martin College of Business and Public Affairs Martin, TN 38238 731-587-7324 and Suzie German (Weakley Co. Chamber of Commerce) 114 W. Maple St. Dresden, TN 38225 731-364-3787 (Reelfoot Bank – Board of Directors) 1491 South First Street Union City, Tennessee 38261 731-885-1010 24 B. Sketch of Floor Plan 25 C. Quote from Wade Builders Supply 26 27 D. Lease Agreement (Working Copy) Preliminary Draft Copy – Not for Release THE UNIVERSITY OF TENNESSEE THIS LEASE, entered into as of this first day of January 2005 by and between the City of Martin, with offices at City Hall, Martin, Tennessee 38237, hereinafter called the Lessor, and The University of Tennessee, hereinafter called the University: WITNESSETH: 1. LOCATION. The Lessor hereby leases unto the University those certain premises with the appurtenances situated in the County of Weakley, City of Martin, located at 406 South Lindell Street, Martin, Tennessee 38237. 2. DESCRIPTION. The premises above are more particularly described as follows: the lower left half of the structure (as viewed from the street) located at the above address and commonly known as the “Larry Taylor Building.” Said premises have the approximate dimensions of 27’W by 60’L, plus a narrow 31’ hallway to a back exit, yielding roughly 1,630 square feet of long, rectangular space. 3. TERM. The term of this lease shall commence on January 1, 2005, and shall end on January 1, 2010 with such right of termination as are hereinafter expressly set forth. If the date of occupancy is other than the commencement date, then the rental period shall begin with the date of occupancy, provided that the rental period shall begin no later than the latter of (a) the commencement date or (b) 30 days after the space is made available to the University in accordance with the conditions of this lease. This provision shall not relieve the Lessor of the liability to the University for damages in the event that the space is not made available to the University in accordance with the conditions of this lease on the commencement date specified above. 4. RENTAL. The University shall pay rental in arrears on the last day of the payment period as follows: annual rent of $ 1.00 payable in installments of $ 1.00 per year. 5A. TERMINATION. For convenience, the University may terminate this lease at any time by giving written notice to the Lessor at least thirty days prior to the date when such termination becomes effective. Said notice shall commence on the day after the date of mailing. 5B. TERMINATION FOR CAUSE: The University may in its sole discretion terminate this lease at any time for any of the following causes: (a) Failure of the Lessor to provide any of the services required under the terms of this lease; (b) Failure by the Lessor to make such modifications, alterations or improvements as may be necessary to insure that the leased premises are brought up to, and maintained at, codes for building construction, health, fire and life safety, and handicapped accessibility applicable to the leased premises, except where deficiencies are caused by the University (c) Failure to disclose any conflict or potential conflict of interest existing at the date of this lease or hereafter created; (d) Termination or consolidation of the University operations or programs housed in the leased premises because of loss of funding; (e) Misrepresentation contained in the response to the request for proposal or committed during the negotiation, execution or term of this lease; (f) Lack of funding by the appropriate Legislative Body for obligations required of the State under this lease; (g) The availability of space in University-owned property, provided that no cancellation for this reason may take place until the lease has been effect for one year; and (h) Any other breach of the terms of this lease by Lessor which is not adequately remedied within twenty (20) days of the mailing of a written notice thereof to Lessor. 6. NOTICES. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed as follows: To the Lessor at: To the University at: City of Martin City Hall University of Tennessee 116 Administration Bldg. Martin, TN 38237 Martin, TN 38238 7. ASSIGNMENT AND SUBLETTING. The University shall not assign this lease without the written consent of the Lessor, but shall in any event have the right to sublet the leased premises. 8. INSPECTION. The Lessor reserves the right to enter and inspect the leased premises, at reasonable times and to render services and make any necessary repairs to the premises. 9. ALTERATIONS. The University shall have the right during the existence of this lease to make alterations, attach fixtures and signs in or upon the leased premises. Such fixtures or signs so placed in or upon or attached to the leased premises under this lease or any prior lease of which this lease is an extension or renewal shall be and remain the property of the University and may be removed there from by the University prior to the termination or expiration of this lease or any renewal or extension thereof, or within a reasonable time thereafter. 10. SURRENDER OF POSSESSION. Upon termination or expiration of this lease, the University will peaceably surrender to the Lessor the leased premises in as good order and condition as when received, reasonable use and wear thereof and damage by earthquake, fire, public calamity, the elements, acts of God, or circumstances over which the University has no control or for which Lessor is responsible pursuant to this lease, excepted. The University shall have no duty to remove any improvements or fixtures placed by it on the premises or to restore 28 any portion of the premises altered by it, save and except in the event the University elects to remove any such improvement or fixture and such removal causes damages or injury to the leased premises and then only to the extent of any such damages or injury. 11. QUIET POSSESSION. The Lessor agrees that the University, keeping and performing covenants contained herein on the part of the University to be kept and performed, shall at all times during the existence of this lease peaceably and quietly have, hold and enjoy the leased premises, without suit, trouble or hindrance from the Lessor, or any person claiming under Lessor. 12. REPAIR AND MAINTENANCE. During the lease term, the Lessor shall maintain the leased premises and appurtenances which he/she provides in good repair and tenantable condition, including, but not limited to, plumbing, heating, electrical, air conditioning and ventilating equipment and fixtures to the end that all such facilities are kept in good operative condition except in the case of damage arising solely from a willful or negligent act of the University's agent, invitee, or employee. Lessor's obligations shall also include, but are not limited to, furnishing and replacing electrical light bulbs, fluorescent tubes, ballast’s and starters, and air conditioning and ventilating equipment filters. Lessor shall also provide adequate janitorial services on a regular schedule. An annual maintenance fee in the amount of $500 annually will be paid to the Lessor by the University. In case Lessor, after notice in writing from the University requiring the Lessor to comply with the requirements of this paragraph in regard to a specified condition, shall fail, refuse or neglect to comply therewith, or in the event of an emergency constituting a hazard to the health or safety of the University's employees, property, or invitees, the University may perform such maintenance or make such repair at its own cost and, in addition to any other remedy the University may have, may deduct the amount thereof from the rent that may then be or thereafter become due hereunder. 13. APPROPRIATIONS. All terms and conditions of this lease are made subject to the continued appropriations by the appropriate legislative body or alternative funding source. 14: DESTRUCTION. If the leased premises are totally destroyed by fire or other casualty, this lease shall terminate. If such casualty shall render ten (10) percent or less of the floor space of the leased premises unusable for the purpose intended, Lessor shall effect restoration of the premises as quickly as is reasonably possible, but in any event within thirty (30) days. In the event such casualty shall render more than ten (10) percent of such floor space unusable but not constitute total destruction; Lessor shall forthwith give notice to University of the specific number of days required to repair the same. If Lessor under such circumstances shall not give such notice within (15) calendar days after such destruction, or if such notice shall specify that such repairs will require more than ninety (90) days to complete from date such notice is given, University, in either such event, at its option, may terminate this lease or, upon notice to Lessor, may elect to undertake the repairs itself, deducting the cost thereof from the rental due or to become due under this lease and any other lease between Lessor and University. In the event of any such destruction other than total, where the University has not terminated the lease as herein provided, or pursuant to the terms hereof has not elected to make the repairs itself, Lessor shall diligently prosecute the repair of said leased premises and, in any event, if said repairs are not completed within the period of thirty (30) days for destruction aggregating ten (10) percent, or within the period specified in Lessor's notice in connection with partial destruction aggregating more than ten (10) percent, the University shall have the option to terminate this lease or complete the repairs itself. 15. SERVICES AND UTILITIES. The Lessor shall furnish to the University, during lease term, at Lessor's sole cost, basic telephone service (exclusive of long-distance charges), hot and cold water, sewage, heat equipment and air conditioning equipment, electricity expenses and Internet service expenses. 16. TIME OF ESSENCE. Time is of the essence of this lease, and the terms and provisions of this lease shall extend to and be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns to the respective parties hereto. 18. HOLDING OVER. In the event the University remains in possession of the premises after the expiration of the lease term, or any extension thereof, this lease shall be automatically extended on an annual basis, subject to 1-year prior-notice termination by either party, and otherwise on the terms and conditions herein specified, so far as applicable. 19. FINANCIAL INTEREST. The Lessor will provide to the University a list of names and addresses of persons, associations, or corporations who hold any financial interest in the above leased property; such list shall be immediately revised in the event of a transfer of any such interest. 20. CODES. The Lessor shall maintain the leased premises in accordance with all fire, building, and life safety codes and other applicable laws and regulations, including The Americans With Disabilities Act. 21. SPACE AUDIT. The Lessor certifies that the amount of space, as described in Paragraph 2 above, is accurate to the best of his knowledge. The University reserves the right to perform physical measurements of said space and to adjust the rental amount based upon the amount of space as measured. If the measured amount is less than the amount of space indicated in Paragraph 2 above, the adjustment in rent shall be a percentage reduction equal to the percentage difference between the space as reported by the Lessor and that actually measured by the University. In all cases, the University shall use the current Building Owner's and Manager's Association (BOMA) standards of measurements for either single or multi-tenant occupancy, whichever is applicable. 22. PEST CONTROL. The Lessor shall maintain the premises in a condition that is free of pests, rodents, and other vermin. 23. NON-BINDING. The Lessor fully understands that this lease is not binding except and until all appropriate University officials' signatures have been fully obtained, approval of this agreement has been given by the State Building Commission, if applicable, and the fully executed document returned to the Lessor. 24. SPECIAL PROVISIONS. Prior to the execution of this lease, the special provisions, which are described below and/or attached hereto and incorporated by reference, were agreed upon: Lessor agrees to renovate the leased facilities as herein described, subject to obtaining a grant and other necessary external funds. “Renovations are to include, but are not limited to, the following: dividing the space into the necessary offices, work stations, and conference/seminar rooms; installing proper insulation and a heating/air conditioning system; replacing the ceiling and flooring; refinishing the walls; outfitting the bathroom; installing lighting; hanging doors and shelving; 29 painting; and setting new glass panels and doors across the exterior front. In addition, an awning supported by columns will be placed in front to achieve a façade similar to that of the Office Products building down the street.” IN WITNESS WHEREOF, this lease has been executed by the parties hereto: LESSOR STATE OF TENNESSEE BY: BY: _______________ Date The University of Tennessee Date Its: ___________________________________________ (Approved as to Form and Legality) I:\HOME\REALEST\ADMIN\BLNKFORM\LEASEFRM.DOC 30 E. Coordinator’s Job Description Title: COORDINATOR, REGIONAL ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT CENTER Position Summary: The Coordinator will be responsible for the operations and management of the Regional Entrepreneurship and Economic Development Center (REED Center). The position coordinates the efforts of the Martin Economic Development Corporation, UT Martin’s College of Business and Public Affairs, local government, financial institutions, the Tennessee Small Business Development Center (TSBDC) network, small business owners, and other stakeholders in order to achieve the REED Center’s goals. Essential Functions: Essential job functions and responsibilities include: managing the center’s client base; specifically, interviewing and providing basic guidance to clients (i.e. prospective entrepreneurs and current small business owners); coordinating meetings as necessary between clients and advisory staff; referring clients to partners as appropriate to meet ongoing needs; conducting follow-up with each client to determine outcomes; creating and maintaining client files; and compiling pertinent data and statistics from same for reporting purposes; planning, organizing, promoting, and hosting seminars, training sessions, and workshops; managing the center’s daily operations; specifically, ensuring the availability of adequate office supplies and up-to-date resources, handling receivables and payables, and creating and carrying out promotional activities; devising the job duties for student assistants, scheduling their time, and supervising their work; managing and reporting the center’s financial performance, generating budgets, and performing strategic planning for the center; pursuing ongoing external funding through grants or donations as needed, with sufficient independent revenues anticipated by year three. Qualifications: Education: Minimum of Bachelor’s degree, preferably in business or business-related field; Master of Business Administration strongly preferred. Experience: Minimum of 5 years general management, supervisory, and/or small business experience. Experience with business start-ups and development of business plans and working knowledge of financial statements required. Experience with marketing feasibility studies, preparation of grant proposals, and community/industrial development strongly preferred. Job Skills: Excellent public relations skills; proficiency with MS Office (Word, Excel, PowerPoint); demonstrated abilities in planning, analysis, and problem solving; and expertise with verbal and written communication. Traits: Highly organized, detail-oriented, creative, and self-motivated. 31 F. Letters of Support Nick Dunagan, Chancellor, UT Martin Randy Brundige, Mayor, City of Martin Jamie Frakes, Director, TSBDC – Dyersburg Ron Acree, Small Business Specialist, TSBDC – Jackson Katie Winchester, President, CEO, & Vice Chairman, First Citizens National Bank, Dyersburg Teresa Brundige, President, BancorpSouth, Dresden Billy Barksdale, Executive Director, McKenzie Industrial Board Tonja Terrell, Executive Director, Obion County Industrial Development Corp. Jim Cooper, Economic Development Director, Obion County Chamber of Commerce Suzie German, Executive Director, Weakley County Chamber of Commerce Lois Birk, Executive Director, Chamber of Commerce of the Twin Cities Lisa S. Hankins, Executive Director, Lauderdale County Chamber of Commerce W. Allen Hester, President/CEO, Dyersburg/Dyer County Chamber of Commerce Frankie McCord, Executive Director, Crockett County Chamber of Commerce Paul Latture, III, President/CEO, Jackson Area Chamber of Commerce Ernie Moser, Dean, College of Business and Public Affairs, The University of Tennessee at Martin Bill Randall Kee, Executive Director, Camden/Benton County Chamber of Commerce Tom Payne, Horace and Sara Dunagan Chair of Excellence in Banking, The University of Tennessee at Martin D. Crawford Gallimore, Chief Manager and Financial Officer, The Hamilton-Ryker Group Roy B. Herron, Tennessee State Senator 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51