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City of Elk River <br /> Preliminary Proposal for Expansion Siting <br /> • Orluck Industries-February 5,2004 <br /> Page 2 of 2 <br /> 11. Financing <br /> A. Project Costs <br /> Land $ 201,520 2.79 acres at$1.66/SF <br /> Construction $1,000,000 Estimate - 20,000 SF at $50.00/SF <br /> Relocation Costs $ 50,000 <br /> Equipment $ 0 <br /> Total Uses $1,251,520 <br /> B. Proposed Business Financing Sources <br /> Bank $ 1,000,000 <br /> Owner Equity $ 50,000 <br /> Tax Rebate Finance $ 201,520 50/50 City and County's <br /> Total Sources $1,251,520 <br /> Total City Assistance Proposed: $ 100,760 <br /> Total County Assistance Proposed: $ 100,760 <br /> C. 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 part-time at $17.00/hour <br /> • D. 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 attached Tax Rebate Financing P vjation Worksheet <br /> Requires Orluck Industries completion of City and County Tax Rebate Financing <br /> Applications and payment of applicable fees. <br /> Proposal is contingent upon approvals from the Elk River Economic Development <br /> Authority and Elk River City Council,in addition to the Sherburne County <br /> Economic Development Alliance and Sherburne County Commission. <br /> E. Other <br /> Proposal is exclusive of project contractor/builder. <br /> Orluck Industries is eligible to apply for the EconornicDerelopment Terlmical Assistance <br /> & Operations ConsultingProgrvn for up to $2,000 grant toward consulting services <br /> from MN Technology, Inc. <br /> • <br /> Preliminary Proposal Accepted: <br /> By Date - - <br />