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<br />City of Elk River Tax Abatement Policy & Application
<br />Amended February 2014
<br />Page 12 of 15
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<br />Note: All Major shareholders will be required to sign personal guarantees and a minimum
<br />assessment agreement if up front financing of the project is required.
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<br />The undersigned certifies that all information provided in this application is true and correct
<br />to the best of the undersigned’s knowledge. The undersigned authorizes the City of Elk
<br />River to check credit references, verify financial and other information, and share this
<br />information with other political subdivisions as needed. The undersigned also agrees to
<br />provide any additional information as may be requested by the City after the filing of this
<br />application.
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<br />Applicant Name Date
<br />IX. SAMPLE BUT-FOR ANALYSIS
<br /> WITH NO WITH
<br /> TAX ABATEMENT TAX ABATEMENT
<br />
<br /> SOURCES AND USES SOURCES AND USES
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<br /> SOURCES SOURCES
<br />Mortgage 9,600,000 8,667,000
<br />Equity 2,400,000 2,400,000
<br />Tax Abatement 0 933,000
<br /> TOTAL SOURCES 12,000,000 12,000,000
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<br /> USES USES
<br />Land 1,500,000 1,500,000
<br />Site Work 300,000 300,000
<br />Soil Correction 468,000 468,000
<br />Demolition 100,000 100,000
<br />Relocation 65,000 65,000
<br /> Subtotal Land Costs 2,433,000 2,433,000
<br />
<br />Construction 6,750,000 6,750,000
<br />Finish Manufacturing 250,000 250,000
<br /> Subtotal Construction Costs 7,000,000 7,000,000
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<br />Soft Costs 350,000 350,000
<br />Taxes 35,000 35,000
<br />Finance Fees 850,000 850,000
<br />Project Manager 542,000 542,000
<br />Developer Fee 540,000 540,000
<br />Contingency 250,000 250,000
<br /> Subtotal Soft Costs 2,567,000 2,567,000
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<br /> TOTAL USES 12,000,000 12,000,000
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<br /> Income Statement Income Statement
<br /> Sq. Ft. Per Sq. Ft. Sq. Ft. Per Sq. Ft.
<br />Rent-Space 1 100,000 $8.00 800,000 100,000 $8.00 800,000
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