6. HRSR 04-04-2011 - Laserfiche WebLink

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City of Elk River Proposal -Jobs Stimulus Program 2011-Temporary TIF Fund. Elk River HRA. Sent via email3-30-2011 CMehelich@ci.elk-river.mn.us Applicant Information Robert G. McDonald - 9111 Andrie Ct NW, Ramsey, MN 55303 C:612-270-5073 RobMcDonaldUS @yahoo.com Denise A. McDonald - 9111 Andrie Ct NW, Ramsey, MN 55303 C:612-590-4632 McChicksMom @ yahoo.com Gerald H. McDonald - 9157 Kahl Ct NE, Otsego, MN 55362 C:512-864-5409 GerDarMcD@msn.com Proposal Information Proposal Name/Location: Elk River Pizza Ranch, 19141 Freeport St NW, Elk River, MN 55330 Project Construction Costs: $559,150 Start up, Building Purchase, FF&E & other Costs: $1,031,700 Total Projected Cost: $1,590,850 HRA Funds Requested: $90,000 Grant to be used to pay WAC/SAC & help with purchase of adjacent land on North side of property Proposal Summary Acquire an existing empty building in Elk River; remodel building to National Franchise standards. Acquire adjoining land to expand parking lot. Open A Pizza Ranch Franchise in Elk River -Fall of 2011. Business Plan Summary See attached Business Plan Summary -HRA assistance will contribute to the success of this business by providing the needed capital to keep the costs of this project at a level that will insure a viable business for the owners. Much time and effort has been put into demographics, supply/demand for restaurant spending, and projections by both the franchisee and the corporate office of Pizza Ranch. The conclusion being that, the project cannot exceed $1,500,000. If it does, Franchisee will locate to a different city that can support this type of a large investment. Site Identification - 19141 Freeport St NW, Elk River, MN 55330. PID# 755600410. Lot 2, Block 4, Elk Park Center. .81 acres. 1 building - 5962 Sq Feet. Zoned Commercial. Currently owned by Osborne Properties, Bloomington, MN. The site will be developed by Robert G. McDonald whom will hire a general contractor that has built other Pizza Ranches. It is the applicant's goal to have a purchase agreement signed by 4-10-11 for a price between $625,000 - $675,000. Currently assessed at $621,000. After completion assessed value....$1,000,000? Applicant is in negotiating the purchase of the adjoining greenspace (12,000 sq feet) in order to expand the parking lot. In addition, SAC/WAC charges have increased the projects cost. These two issues have put the project on a thin margin. This family style restaurant will bring traffic to the area. It will seat 220 guests and include a community room to be used for group functions, In addition, the Elk River Pizza Ranch will be an integral part of the community and part of the marketing plan is to hold fundraisers for various groups in Elk River. Job Creation and Retention Projected construction costs will be approximately $500,000. The store is projected to open in late summer. Two weeks prior to opening, all employees will be hired and start training. Pizza Ranch will