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02102!2004 lb: 4b 1 " OZ.Lo4Dc <br /> Feb OE 04 03: 25p GRADIENT TECHNOLOGY 7637929972 P. 3 <br /> City of Elk River <br /> Priiininazv Proposal for.Expansion Sitting <br /> Grndicnz Technology -January 14,2004 <br /> Page2of2 i <br /> II. Financing <br /> A. Project Costs <br /> Land $105,197 1.5 acres at$1.61/S}= <br /> Construction $650,000 Estimate - 13,000 SF at$50.00/SF <br /> trquprnent $ 0 <br /> Total Uses $755,197 <br /> B. Proposed Business Funancing Sources <br /> Bank $ 574,924 90 %Building Cost <br /> Owner Equity $ 75,076 10% if using SBA504 via Bank <br /> Tax Rebate Fjnance 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 &W gc Goals (to be met within 2 years of building occupancy) <br /> Job Creation 5 full-tune 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 IF <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 front qi a1ified lending institution. <br /> Proposal is contingent upon approvals from the Elk River Economic Development <br /> Authority,City Council and Sherburne County Board of Commissioners. <br /> Proposal is exclusive of rroject contractor/builder. However,Arncon 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 attached./union rorrerporideece re:Gradient T id,Ralogy.Prviosal <br /> Prelim roposal Accepted: <br /> C�t <br />