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sources include investor equity and owner cash. The project includes the transition to a new location and also <br />from lease to ownership for the company and owner. The company has been operating at a reduced capacity in <br />the existing location and would have the opportunity to expand post-relocation. Tax increment financing <br />revenues would provide an additional cash flow source during the early years of the project to allow for <br />business growth and development and fulfilment of increased employment goals. <br /> <br />Tax increment financing is a tool that can assist with covering a portion of the additional eligible costs <br />associated with the project. The level of financial assistance the applicant has requested is less than what is <br />expected to be available and based on financial analysis appears to be more in alignment with what the project <br />would need for financial support. Since terms of the assistance include pay-as-you-go as reimbursement for <br />certain costs, the applicant will be responsible for obtaining all upfront funding sources and using cash flow from <br />the project and any tax increment revenues to repay obligations. Total estimated tax increment revenues that <br />could be available for this project are approximately $190,000. Should the City choose to provide tax increment <br />assistance, the applicant will need to find an additional $210,000 from other funding sources to fill the remaining <br />gap. Aligning the level of assistance to the availability of projected revenues provides a method of closing a <br />portion of the financial gap and allows the public participation for the project to remain at a reasonable level, <br />while still providing a means for allowing the project to proceed as proposed. <br /> <br />Thank you for the opportunity to be of assistance to the City of Elk River. Please contact me at 651.368.2533 <br />or Mikaela.huot@bakertily.com with any questions or comments.