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City, of Elk River <br />Prelimina~ Proposal for Expansion Siting <br />Gradient Technology -JanuaU, 14. 2004 <br />Page 2 of 2 <br /> <br />II. <br /> <br />Financing <br />A. Project Costs <br /> Land $105,197 <br /> Construction $650,000 <br /> Equipment $ 0 <br /> Total Uses $755,197 <br /> <br />1.5 acres at $1.61/SF <br />Estimate - 13,000 SF at $50.00/SF <br /> <br />Proposed Business Financing Sources <br /> Bank $ 574,924 <br /> O~vner Equity $ 75,076 <br /> Tax Rebate Finance $ 105,197 <br /> Total Sources $ 755,197 <br /> <br />90 % Building Cost <br />10% if using SBAS04 via Bank <br />50/50 City and County* <br /> <br />* Total Ciw Assistance Proposed: $ 52,598.50 <br />* Total County Assistance Proposed: $ 52,598.50 <br /> <br />Job & Wage Goals (to be met xvittml 2 years of building occupancy) <br />Job Creation 5 full-time at $15.00/hour (minimum) <br />Job Retention 13 full-time at $13.00-75.00/hour <br /> <br />Preliminary <br /> <br />Financing Applications <br />Tax Rebate Financing assistance, or Tax Abatement, is proposed to be provided in <br />the form of "pay-as-you-go" basis, in ~vhich the buyer (Gradient Technology) pays <br />improvement costs upfront, and then is reimbursed annually svith 100% of <br />abatement proceeds upon receipt of annual real estate taxes by the City and County <br />for a maximum term/amount equal to the land cost or 7-years, the earlier. The <br />buyer could consider an assignment of the "pay-as-you-go" note to a bank for <br />"upfront equity" financing. <br /> <br />Other <br />Projoosa/ is contingen~ uj~on letter of ajoj~rova/ from qualified/ending insti~u?ion. <br /> <br />Proposal is contingent upon approvals from the Elk River Economic Development <br />Authority,, City Council and Sherburne County Board of ComnCUssioners. <br /> <br />Proposal is exclusive of project contractor/builder. However, Amcon Construction <br />or the lando~vner partnership ~vould consider accepting an assignment of the <br />abatement note in exchange if the buyer builds with Amcon Construction. <br />Additional acreage, beyond buyer's initial needs, may also be considered if building <br />with Amcon. <br />See attached ~mcon correJ~ondem'e re: Gra~/ien/ Techno/o~gy Pro, Oosa/ <br /> <br />Proposal Accepted: <br /> <br />By Date <br /> <br /> <br />