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uyof TO: EDA FINANCE COMMITTEE <br /> cif River <br /> FROM: WILLIAM RUBIN, ED COORDINATOR VL, <br /> DATE: DECEMBER 28, 1993 II ��►► <br /> SUBJECT: LOAN REQUEST FROM ALLEGIANCE <br /> REALTY (DBA COLDWELL BANKER <br /> ALLEGIANCE) <br /> INTRODUCTION <br /> Staff is in receipt of a request for a loan from the EDA <br /> Revolving Loan Fund in the amount of $30,250. The loan is <br /> requested from Allegiance Realty, a Minnesota Corporation that <br /> is owned by Carol Luukkonen, Donna Grover, and Marilyn <br /> VanPatten. If approved, the loan will be used by Allegiance <br /> Realty to supplement primary financing for the acquisition of <br /> an office condominium at 305 Main Street, Elk River, Minnesota <br /> and for the purchase of a telephone system. <br /> While an EDA loan of $30,250 is requested, staff is <br /> recommending a loan of $27,500 and the balance of this memo <br /> reflects that amount. <br /> • BACKGROUND <br /> Allegiance Realty (dba Coldwell Banker Allegiance) , 823 Main <br /> Street, Elk River, Minnesota, was incorporated in late 1990. <br /> The principals have over sixteen years experience in real <br /> estate sales. The existing office space at 823 Main Street is <br /> leased to Allegiance Realty and provides limited opportunities <br /> for recruiting new agents. As a result, the company seeks a <br /> larger, more permanent office. <br /> The attached map indicates the location of Allegiance Realty's <br /> new office space. It is located in the middle suite of the <br /> three unit office condominium at Evans and Main Street. <br /> Earlier this year, Jerry Nyberg, D.D.S. , purchased a suite in <br /> the condominium and the final suite is being prepared for <br /> occupancy by a physical therapy group. <br /> The Allegiance condominium project is estimated at $139,000, <br /> broken down as follows: <br /> Building $ 75,000 <br /> Land 25,000 <br /> Interior-lease hold 33,000 <br /> Equipment(telephone system) 6,000 <br /> • TOTAL $139,000 <br /> Financing for this project is proposed as follows : <br /> 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 <br />