Laserfiche WebLink
Ciw o£ Elk River <br />Preliminary, Proposal for Expansion Siting <br />Gradient Technology - Revised March 8, 2004 <br />Page 2 o£ 2 <br /> <br />II. <br /> <br /> Financing <br />A. Project Costs <br /> Land $143,770 <br /> Construction $650,000 <br /> Equipment $ 0 <br /> TotaI Uses $793,770 <br /> <br />2.05 acres at $1.61/SF <br />EstZmare - 13,000 SF at $50.00/SF <br /> <br />Proposed Business Financing Sources <br /> Bank - TBD $ 574,924 <br /> Owner Cash Equit7 $ 79,377 <br /> Tax Rebate Finance $143,770 <br /> Total Sources $ 793,770 <br /> <br />90% Btfilding Cost <br />10% Project Cost <br />50/50 City and County* <br /> <br />* Total City Assistance Proposed: $ 71,885 <br />* Total County Assistance Proposed: $ 71,885 <br /> <br />Job & Wage Goals (to be met ~vithm 2 years of building occupancy) <br />Job Creation 5 £ull-time at $15.00/hour (minimum) <br />Job Retention 13 full-time at $13.00-75.00/hour (7 based in MN) <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 xvhich the buyer (Gradient Technology) pays <br />improvement costs upfront, and then is reimbursed annually ~vith 100% of <br />abatement proceeds upon receipt of annual real estate taxes by the City and CounU <br />for a ma"Ctmum term/amount equal to the land cost or 10-years, the earlier. The <br />buyer could consider an assignment of thc "pay-as-you-go" note to a bank for <br />"upffont equity."' financing. <br /> <br />Other <br />Projoosa/ is ~vn~ingen~ z~on /et/er of a~prova/ from qualified/endin~ ins?i~u?ion. <br /> <br />Proposal is contingent upon approvals from the Elk R/ver Economic Development <br />Authority, City Council and Sherburne County Board of Commissioners. <br /> <br />Proposal is excluswe of project contractor/builder. However, Amcon Construction <br />or the landowner 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 />~ee attac/;ed~,4m~vn corre¢onden:e re: Gradien? Tech.o/o~ Proposal <br /> <br />Preliminary Proposal Accepted: <br /> <br />By Date <br /> <br /> <br />