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City of Elk River <br />Prdiminary Proposal for Expansion Siting <br />Orluck Industries - February 5, 2004 <br />Page 2 of 2 <br /> <br />II. <br /> <br /> Financing <br />A. Project Costs <br /> Land $ 201,520 <br /> Construction $1,000,000 <br /> Relocation Costs $ 50,000 <br /> Equipment $ 0 <br /> Total Uses <br /> <br />$1,251,520 <br /> <br />2.79 acres at $1.66/SF <br />Estimate - 20,000 SF at $50.00/SF <br /> <br />Bo <br /> <br />Proposed Business Finandng Sources <br /> Bank $1,000,000 <br /> Owner Equity $ 50,000 <br /> Tax Rebate Finance $ 201,520 <br /> <br />Total Sources $1,251,520 <br /> <br />50/50 City and County* <br /> <br />* Total City Assistance Proposed: $ 100,760 <br />* Total County Assistance Proposed: $ 100,760 <br /> <br />Co <br /> <br />Job & Wage Goals (to be met within 2 years of building occupancy) <br />Job Retention 13 full-time at $15.00-20.00/hour and <br /> 2 pm-time at $17.00/hour <br /> <br />Do <br /> <br />Financing Applications <br />Tax Rebate Financing assistance, or Tax Abatement, is proposed to be provided in <br />the form of "upfront" financing, in which the business/property owner receives the <br />benefit of using the land cost as "instant equity" when considered by a bank. Upon <br />an executed development agreement, the city would transfer the land to Orluck <br />Industries for $1.00 and the city would be reimbursed annually with 100% of <br />abatement proceeds upon receipt of annual real estate taxes by the City and County <br />for up to an amount eqUal to the land cost, presently estimated at 10-year term. <br />See attad~ Tax Rebate Financing Projo:tion Worksheet. <br /> <br />Requires Orluck Industries completion of City and County Tax Rebate Financing <br />Applications and payment of applicable fees. <br /> <br />Proposal is contingent upon approvals from the Elk River Economic Development <br />Authority and Elk River City Council, in addition to the Sherbume County <br />Economic Development Alliance and Sherburne County Commission. <br /> <br />E° <br /> <br />Other <br />Proposal is exclusive of project contractor/builder. <br /> <br />Orluck Industries is eligible to apply for the Econo~Derdogn~ TM:,nicalAssistane <br />& CCerations Consulting Program for up to $2,000 grant toward consuking services <br />from MN Technology, Inc. <br /> <br />Preliminary Proposal Accepted: <br /> <br /> <br />