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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> TO: EDA FINANCE COMMITTEE <br /> t\rFROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATO ` <br /> DATE: OCTOBER 29, 1993 <br /> SUBJECT: LOAN REQUEST FROM THEOFIL (FELIX) AND JEANNE EGGERT <br /> (WOODSMEN QUALITY PRODUCTS, INC. ) <br /> INTRODUCTION <br /> Theofil (Felix) and Jeanne Eggert, owners of Woodsmen Quality <br /> Products, Inc. , 10550 County Road 81, Suite 118, Maple Grove, <br /> Minnesota, have requested a loan from the EDA Micro Loan Fund <br /> in the amount of $18,750 . 00 . This loan will be used by the <br /> applicants to leverage primary financing and equity for the <br /> construction of a 2,952 square foot cabinet shop to be located <br /> on Lot 1, Block 1, Meadowvale Commercial Park. ` <br /> BACKGROUND <br /> The cost of constructing the cabinet shop is estimated at <br /> $125,000 . 00 and is broken down as follows : <br /> • Land $ 28,000 <br /> Building $ 97 ,000 <br /> $125,000 <br /> Sources of financing for this project are broken down as <br /> follows: ' <br /> Percent of <br /> Source Amount Project <br /> Primary Lender $ 87 ,500 70% <br /> Applicant Equity $ 18,750 15% <br /> EDA Micro Loan $ 18, 750 15% <br /> $125,000 100% <br /> Loan repayments are proposed as follows; <br /> Source Term Interest Rate Security <br /> Primary Lender 15 yrs . 8 .5% fixed 1st Real <br /> (balloon (4 year period) Estate <br /> at 4 yrs . ) Mortgage <br /> EDA Loan 15 yrs . 6% (current prime; 2nd Real <br /> • adj . semi-annually) Estate <br /> Mortgage <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612)441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />