7.1. SR 10-17-2016 - Laserfiche WebLink

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bw— Bank September 6, 2016 City of Elk River 13065 Orono Pkwy Elk River, MN 55330 Re: Apex Embroidery Design, Inc. Forgivable Loan application/Tax Abatement application To whom it may concern: The Bank of Elk River has had a banking relationship with Apex Embroidery Design, Inc. for the past 14 years. Based on The Bank of Elk River's analysis of past financial performance and the projected financial outlay provided to The Bank of Elk River Apex Embroidery Design, Inc. demonstrates the ability to service repayment requirements necessary to support the building project proposed in their applications with the City of Elk River. The debt structure being proposed to The Bank of Elk River will allow for a loan on the land, building and equipment of up to $1,450,000. The final loan amount will be calculated based off the lesser of 80% of appraised value or cost and be amortized over a period of 20 years. While Apex Embroidery Design, Inc. demonstrates the ability to service the debt payments, the Forgivable Loan program/Tax Abatement is important to make the project a reality. The letter is only an assessment of Apex Embroidery Design, Inc. to service debt outlined in the application and not a commitment to lend from the Bank of Elk River. The final approval of the Forgivable Loan application and Tax Abatement application will be necessary for final approval to make a commitment. 51ncgain�+-----�� Neil Vice President The Bank of Elk River 630 Main Street, Elk River, MN 55330 p) 763-441-1000 ' f) 763-441-0847 www.thebankofelkriver.com PAa be,mc