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City of Elk River <br /> Preliminary Proposal for Expansion Siting <br /> Gradient Technology —Revised March 8,2004 <br /> Page 2 of 2 <br /> II. Financing <br /> A. Project Costs <br /> Land $143,770 2.05 acres at$1.61/SF <br /> Construction $650,000 Estimate— 13,000 SF at$50.00/SF <br /> Equipment $ 0 <br /> Total Uses $793,770 <br /> B. Proposed Business Financing Sources <br /> Bank-TBD $ 574,924 90%Building Cost <br /> Owner Cash Equity $ 79,377 10%Project Cost <br /> Tax Rebate Finance $ 143,770 50/50 City and County* <br /> Total Sources $ 793,770 <br /> *Total City Assistance Proposed: $ 71,885 <br /> *Total County Assistance Proposed: $ 71,885 <br /> C. Job &Wage Goals (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 (7 based in MN) <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 10-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 /> E. Other <br /> Proposal is contingent upon letter of approval from quaffed 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 project 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 attached Amcon correspondence re:Gradient Technology Proposal <br /> Preliminary Proposal Accepted: <br /> • By Date <br />