Laserfiche WebLink
�3 <br /> FIRST NATIONAL BANK of Elk River E812 lk River, N Phone 763.241.3637 <br /> Elk River,MN 55330 Fax 763.441.5784 <br /> www.finmationalfinancial.com <br /> May 24th, 2013 <br /> City of Elk River <br /> 13065 Orono Pkwy, <br /> Elk River, MN 55330 <br /> R=: Prel':_rre6 Powder Coa ing, <br /> Tax P�atemerit application <br /> To wFrsrrl it may ccmncern: <br /> have beer'i the banking relationship manager. for Preferred Powder Coating for the past two years. <br /> Based orr, my examination; and analysis of past financial performance and projected financial <br /> perforr-,ance provided to First National Bank of Elk River, Preferred Powder Coating demonstrates the <br /> ability to service debt repayment necessary to support the building project proposed in their application <br /> with the City of Elk River dated May 28`h, 2013. <br /> The debt structure reviewed consisted of$3,547,000 real estate debt based on a 25 year amortization <br /> and $1,000,000 equipment note based a 10 year amortization. <br /> While Preferred Powder demonstrates the ability to service debt payments on the debt, I do <br /> anticipating a substantiri equity gap requiring alternative funding sources including the utilization of the <br /> SBA 504 pil and program like the Tax Abatement program to make the project a reality. This <br /> letter is only an assessment:of Preferred Powders ability to service debt outlined in the application and <br /> not a commitment to lend from f=irst National Bank. <br /> If you have any questions please fee! free to contact me at you convenience <br /> Sincerely <br /> Chad A. Vitzthum <br /> Senior Vice President <br /> First National E?t r:. of Elk i;iver <br />