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Memo To The EDA Finance Committee Page 2 <br /> July 18, 1995 <br /> Additional space at Rail 10 will enable the company to increase its sales. In • <br /> addition, lease space for other manufacturers will also help fill an identified <br /> void in Elk River. <br /> Financing <br /> The cost of constructing the 10,000 square foot industrial facility is <br /> estimated at $378,568, and is broken down as follows: <br /> Land $25,000 <br /> Building $349,568 (See attached construction statement) <br /> Miscellaneous $4,000 <br /> Total $378,568 <br /> Sources of financing for this project are broken down as follows: <br /> Percent of Project <br /> Primary Lender $248,500 65.6% <br /> Applicant Equity $80,068 21.2% <br /> EDA Microloan $50,000 13.2% <br /> Total $378,568 100.0% • <br /> Loan repayments are proposed as follows: <br /> Source Term Interest Rate Security <br /> Primary 15 years 11% (prime +2, First real estate <br /> Lender subject to mortgage. <br /> adjustments). <br /> EDA 15 years 9% (prime, Second real estate <br /> Microloan adjusted semi- mortgage. <br /> annually). <br /> Debt service for the project is outlined as follows: <br /> Source Annual Debt Service <br /> Primary Lender $33,895 (initially) <br /> EDA Microloan $6,090 (initially) <br /> Total $39,985 <br /> • <br /> S:EDA/CCGrind <br />