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.111 FIRST NATIONAL BANK OF ELK RIVER <br /> Bill Rubin <br /> City of Elk River <br /> Economic Development Micro Loan Fund <br /> RE: T.J. Properties <br /> Tim Smith and Jerry Smith formed T.J. Properties for the purpose of constructing and owning a <br /> commercial building at 403 and 413 Main Street, Elk River. The building's main tenant would be <br /> Century 21. <br /> The project consists of acquiring 403 and 413 Main Street, moving the house on 403 Main, <br /> constructing building on 403 Main with parking lot on 403 and 413 Main. The residence on 413 <br /> Main Street will continue to be rented as a residence. <br /> Current project summary: <br /> Estimated Project Cost: $450,000 <br /> First National Bank of Elk River Mtg: (245,000) <br /> • First National Bank of Elk River 2nd Mtg: ( 50,000) <br /> Owners Equity Injection: (107.000) <br /> Shortfall: $48.000 <br /> Reason for shortfall: <br /> The project was expanded to include completely finishing the 908 Square Feet of 2nd story and <br /> modifications of lower level. These changes caused an increase in construction cost of approximately <br /> $80,000. The increased construction costs combined with cost over-runs caused a shortfall of <br /> $98,000 for the project. <br /> First National Bank of Elk River agreed to provide additional $50,000 of financing for a total of <br /> $295,000. <br /> Appraised Value: <br /> The project was appraised at $370,000 by Riverside appraisal July 29, 1994. <br /> The resulting loan to value for the Bank would be 80%. The additional $47,800 of financing <br /> requested from Micro Fund would put total loan to value at 92.6% of appraised value. <br /> The appraised value will increase due to the additional 908 Square Feet of finished space that was not <br /> • part of the original appraisal. The modified appraisal value would need to $381,000 for a 90%LTV. <br /> The appraised value of the finished building should most likely exceed $400,000. <br /> ANOKA OFFICE ELK RIVER OFFICE ZIMMERMAN OFFICE FIRST NATIONAL MORTGAGE FIRST NATIONAL <br /> 1121 W.Highway 10 729 Main Street Mary&Main Street 716 Main Street INVESTMENT CENTER <br /> Anoka,MN 55303 Elk River,MN 55330 Zimmerman,MN 55398 Elk River,MN 55330 729 Main Street <br /> (612)422-0537 (612)441-2200 Local:(612)856-2266 (612)441-7133 Elk River,MN 55330 <br /> Metro:(612)421-0463 (612)441-2200,Ext.602 <br />