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<br />Consider Ivlicro Loan .Application: ..t\lliance i\lacrune, Inc. <br />ED.A. Finance COffilmttce - .August 17,2005 <br />Page 2 of 2 <br /> <br />Belo\v is a current surmnary of tile .L~lliance 1,{achine project: <br /> <br />Nature of Business Ligl1t, precision machining of plastic and metal <br /> components for national and international clients in the <br /> aerospace, medical, defense and computer industries <br />City TRF Assistance $103,978 to Pro\To Enterprises, LLC \vho \villlease the <br /> property to .L~lliance NXaclllne, Inc. (500/0 of tlle land cost) <br />TRF Years 10 (estimated) <br />Building Size 18,000 SF <br />Lot Size 2.84 acres to acoomodate a 10,000 SF expansion (see <br /> attacl1ed site plan) <br />T obs Retained 30 ($20 a\Terage hourly \vage) <br />Jobs to be Created 9 ($15 minimuln Ilourly \vage) <br /> <br />Use of the Micro Loan Fund for this Project <br />TIle applicant proposes to use IYucro Loan funds to finance consuuction costs. TIle <br />applicant Ilas proposed tllat the ED.L~ take a second position on tlle real estate. Belo\v is a <br />summary of tlle project costs and proposed financing: <br /> <br />Project Costs <br />Land-2.84 i\.cres <br />Consuuction <br />Total <br /> <br />$207,956 (see attached TRF projection \~lorksI1eet) <br />$963,400 (see attacIled constluction statelnent) <br />$1,171,356 <br /> <br />Proposed Project Financing (see attacl1ed bank proposal for details): <br />Bank Loan 1 $980,000 <br />Bank Loan 2 $140,000 <br />ED.L~ 1vIicro Loan $100,000 <br />Total $1,220,000 <br /> <br />Project "But For" Analysis <br />Sid Inman of Ehlers & Associates (tlle City's financial advisor) completed the "But For" <br />analysis for tlle use ofTRF for tlus project and reported to the ED.L~ on .L~ugust 8th that tlle <br />Alliance project met tlle "But For" test. I\Ir. Inman llas responded to tllls question \vitll the <br />attacIled e-mail message indicating tllat tlle use of 1vlicro Loan funds for tllls project \vould <br />change the "But For" analysis and result in a recommendation to the EDi\ that less TRF be <br />applied to tills proj ect.. <br /> <br />Additional Information <br />Each company tllat recei\Tes a business subsidy in tlle State of IVlinnesota sllall be subject to a <br />subsidy agreement \'vitll tlle City of Elk River, \vlucll includes reporting provisions and <br />requirements set forth by tlle IvIN Business Subsidy La\v. TIle City's Business Subsidies <br />Policy is attacIled. <br />