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City of Elk River, Minnesota <br /> Preferred Powder Coating request for Tax Abatement <br /> June 20,2013 <br /> Page 4 <br /> Tax Abatement Revenue Estimates <br /> Anticipated Term 20 years <br /> (Statutory Maximum) <br /> City Share of Revenues $776,752 <br /> County Share of Revenues $839,156 <br /> School District Share of Revenues $0 <br /> Estimated Net Revenue $1,615,908 <br /> Total Estimated Present Value of Revenues $1,048,925 <br /> (4%discount rate and 811113 date) <br /> Total Estimated Present Value of Revenues <br /> (3%discount rate and 811113 date) $1,161,286 <br /> Total Estimated Present Value of Revenues <br /> (2%discount rate and 811113 date) $1,290,949 <br /> `These are estimates and subject to verification <br /> The maximum abatement, based on the assumptions outlined above would generate$1,615,908 with City and <br /> County participation over 20 years. Participation by any taxing entity is subject to policy and approval. <br /> Sources of Funds and Project Cost Scenarios <br /> The Developer's submittal includes a preliminary total project budget of$6,192,695 that includes land acquisition, site <br /> development, building construction, equipment, working capital, wetland mitigation and soft costs as shown in the <br /> following table. <br /> Scenario 1: All Costs and Secured Financing <br /> II �.�.. ..... �..i <br /> Land Acquisition $680,895 Private Equity $191,817 <br /> Site Development (site prep, wetland 630,000 Private Financing 4,547,000 <br /> mitigation, grading, gas line, etc.) <br /> Building Construction 3,470,000 EDA Forgivable Loan 200,000 <br /> Machinery& Equipment 1,000,000 EDA Micro Loan 100,000 <br /> Working Capital 200,000 <br /> Wetland Mitigation 11,800 <br /> Contingencies 200,000 <br /> Total Costs $6,192,695 Total Sources $5,038,817 <br /> Funding Gap= $1,153,878 <br />