Laserfiche WebLink
02''02/2004 16:46 17152326452 ALA iNU I <br /> I-1,11- <br /> Feb <br /> "`"`Feb 02 04 03:25p GRADIENT TECHNOLOGY 7637929972 P_3 <br /> City o:Elk River <br /> Prr]iIninary Proposal for Expansion Siting <br /> Gradient Technology —January 14.2004 <br /> Page2of2 <br /> H. Financing <br /> A. ?Mica Cost.1 <br /> Land $105,197 1.5 acres at$1.61/SF <br /> Construction $650,000 Estimate - 13,000 SF at$50.00/SF <br /> . q pment $ f1 <br /> Total Uses $755,197 <br /> 13. Propo cd B__usiness Financing Sources <br /> Bank $574,924 90 %Building Cost <br /> Owner Equity $ 75,076 10%if using SBA504 via Bank <br /> Tax Rebate Finance S 105.197 50/50 City and County* <br /> Total Sources $755,197 <br /> *Total City Assistance Proposed: $ 52,598.50 <br /> *Total County Assistance Proposed: $ 52,598.50 <br /> C. Job&WLgc Cmals (to be met within 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 /> D. 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 which the buyer(Gradient Technology)pays <br /> improvement costs upfront,and then is reimbursed annually with 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 /> F. Other <br /> Proposal is contingent upon letter of approval from qualified lending institution. <br /> Proposal is contingent upon approvals from the Elk Rives Economic Development <br /> Authority,City Council and Sherburne County Board of Comriiissioacrs. <br /> Proposal is exclusive of vroject contractor/builder. However,Amcon Construction <br /> or the landowner partnership would 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 allached Minton rorreryondence n:Gradient Tetrology Prrefro.ral <br /> Prelim.. - roposcl Accepted: <br /> ,a - <br />