5. EDSR 07-15-2013 - Laserfiche WebLink

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FIRST NATIONAL BANK of E]k River ^»Main Sweet mm none 763;',4',ti" hei 703 44 I 5'7E4 l— ---- --- --' -' - ' - -' - May 24th,2013 City of Elk River 13065 Orono Pkwy, Elk River,MN 55330 RE: Preferrn6 Powder Coating, Inc. lax abatement application To whon it may concern: i have been the banking relationship manager for Preferred Powder Coating for the past two years. asd or my examination and analysis of past financial performance arid projected financial perhormance provided to First National Bank of Elk River, Preferred Powder Coating demonstrates the ability to service debt repayment necessary to support the building project proposed in their application with the City of Elk River dated May 28th,2013. The debt structure reviewed consisted of 53,547,000 real estate debt based on a 25 year amortization and S1'OUO,OOOequip/nent note based a1O year amortization. While Preferred Powder demonstrates the ability to service debt payments on the debt,I do anticipating a substanti;--A equity gap requiring alternative funding sources including the utilization of the SBA 504 program and program like the Tax Abatement program to make the project a reality. This letter is only an assessment of Preferred Powders ability to service debt outlined in the application and not a commitment to lend from First National Bank. If you have any questions please fee!free to contact me at jou convenience Sincerely ~�r C �^ °~� ^�' Chad A.Vitzthurn Senior Vice President First National Bwk of Elk River .