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FEB-23-98 05 :02 PM P. O1 <br /> February 23, 1998 <br /> TO: Dick Hinkle <br /> EUA. City of Elk River <br /> FROM: Gary L. Santwire <br /> Dick: <br /> It was good talking to you this morning. Here are a few of my thoughts <br /> regarding the old clinic site in downtown Elk River, which we discussed. <br /> 1 ) The size of the site is approximately 32,000 square feet. <br /> 2) The square lix)tage cit a new building will probably be limited to <br /> RR square foot. <br /> 70oO - (01660 <br /> 3) Assuming .l 0,000 square feet, this building should have a 5 to 1 <br /> parking ratio (at least 30 on site and 20 nearby). <br /> 4) The value of the site will depend on the net rent (approx. <br /> S8.00!sq. ft. per year) from the space after debt service for the <br /> cost of construction. <br /> Example: A 10.000 sq. ft. building (4.) $100 per foot <br /> $1,000.000 cost S110,000 year debt. service. <br /> Land value -0- <br /> Example: A 10,000 sq. ft. building $6O.00/sq. ft. = $600,000 <br /> cost - S66.0OO per year debt service. Laud value possibly <br /> $200,000. <br /> The above figures a.re based on a $80,000 per year net rental <br /> 111 income. <br /> 5) You restion of the city offering a brokerage fee. will be <br /> extremely advantageous in putting a project together on this <br /> site. <br />