EDSR MEMORANDUM 04-13-1998 - Laserfiche WebLink

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EDA Agenda Memo April 9, 1998 Page 2 6. Consider$50,000 Micro Loan - The Ink Wizards Jim and Wanda Storie, of The Ink Wizards, met with the EDA Finance Committee on Tuesday, March 17, 1998. The Ink Wizards is currently located in downtown Elk River at 554 Third Street. They are a contract screen printing, embroidery, and embroidery digitizing company with sales in 1997 of just under $500,000. They currently lease approximately 2500 square feet of space and employ five full time and seven part time people. Their request for EDA participation in the amount of$50,000 is to help facilitate the purchase of one acre of land from David Decker in east Elk River and construction of a 4,000 to 5,000 square foot light manufacturing facility on the site. The building would consist of steel framing and skin with a decorative front elevation including a mixture of brick, stucco,and/or cedar. It is estimated the new facility will generate property taxes in the amount of approximately$7,000 to $10,000. The Ink Wizards total cost in this project are $392,000, broken down as follows: • Land $ 50,000 • Buildings $175,000 • Equipment/Machinery/Fixtures $132,000 • • Site Development/Parking/Landscaping $ 10,000 • Inventory/Working Capital $ 25.000 $392,000 In addition to EDA micro loan financing, First National Bank of Elk River is considering participation in the amount of approximately $172,500 in the overall project. The remaining $169,500 will be financed through the equipment manufacturing company and approximately $37,000 of applicant contribution to the project. The one acre lot which is intended to be purchased by The Ink' Wizards lies to the north of the David Decker multi tenant industrial project in which the EDA is participating. This one acre lot is oddly shaped, allowing for construction of a total of 5,000 to 8,000 square feet. Tom McNair and Jeff Gongoll, EDA Finance Committee members mentioned two issues in support of this application: • The facility will be owner occupied • This is a local business which is being relocated and expanded a win/win situation.