5.0.-13.0. EDSR 06-14-1993 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY TO: EDA FINANCE COMMITTEE FROM: WILLIAM RUBIN, ED COORDINATO a., DATE: JUNE 3, 1993 ((// ``'� SUBJECT: LOAN REQUEST FROM INDY LUBE, INC. INTRODUCTION Indy Lube, Inc. , an Indiana-based company, requests a loan from the EDA Revolving Loan Fund in the amount of $32,500 . This loan would be used by Indy Lube to lever primary financing sources for the construction of a new 3,50 square foot quick lube facility at Dodge Avenue and 5th Street in Elk River. The Elk River expansion is part of a large expansion into the Minnesota market that will also include new stores in Austin and Rochester. BACKGROUND Z�r� The cost of constructing the new three bay facility, equipping it, and providing small tools and opening day inventory, totals $380,500 . Those costs are broken down as follows : 410 * Land $115, 000 * Building $170,000 * Equipment $16,000 * Opening Inventory $12,000 * Signs, Site Prep, Utilities, Tanks, Etc. $67,500 $380,500 Sources of financing for this project are broken down as follows : * Security Bank of Albert Lea $173,750 * SBA Debentures $144, 000 * Applicant Equity $30,250 * EDA Revolving Loan $32,500 $380,500 The Elk River facility, along with the Rochester and Austin facilities, represent Indy Lube's initial expansion into the Minnesota market. Estimated project costs for the three expansions total $1,020,000, which will be financed through a nonprofit, Certified Development Company in Rochester. Security Bank of Albert Lea is the primary lender for all three projects . Owner equity for the three expansions totals $140,000 . With this project, owner equity can be defined as a combination of down payment on each project, plus typical opening inventory and equipment, etc. P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment