12-14-1992 EDA MIN - Laserfiche WebLink

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Economic Development Authority December 14, 1992 Page 3 . Gary Santwire indicated that the project cost is estimated at $670,000 with the building to cost $420,000 after site preparation to street grade. He indicated that the land acquisition cost would be $112,000; site preparation and easement cost $90,000; and administration, accounting and legal cost $48,000. Gary Santwire stated that in order to get rents at $4 per square foot, the developers will need a total of $257,000 in subsidies. He stated that even if the land acquisition was $1, additional subsidies of $145,000 would still be necessary. He further stated that the remaining $413,000 would need to be financed at an annual percentage rate not to exceed seven to eight percent for the first ten years. He also indicated that if the project cost can be reduced, the need for subsidy would also be reduced. Gary Santwire emphasized that if the project cannot rent at $4 to $4.50 maximum per square foot, the project would not be done. Mr. santwire requested an additional 30-day extension to meet with staff and to review the options. COMMISSIONER TRALLE MOVED TO GRANT DEVELOPER COULD MEET WITH CITY PROJECTIONS. COMMISSIONER HOLMGREN CARRIED 6-0. A 30-DAY EXTENSION SO THAT THE STAFF TO ANALYZE THE DEVELOPER'S SECONDED THE MOTION. THE MOTION 8. Consider 1993 Work Program . Bill Rubin reviewed the proposed 1993 Work Program which consisted of industrial development, downtown redevelopment, marketing, advertising, economic development newsletter, industrial call program, star city activities, industrial council, Certified Development Company, and 1993 Legislative issues. It was the consensus of the EDA to act on this work program in 1993. President Gongoll suggested adding a category to the work program which would include public information to community, such as the recent Dr. Stone presentation. 9. EDA Annual Meeting Bill Rubin reminded the EDA that the annual EDA meeting will be held on January 11. 10. Prospect Report Bill Rubin reviewed the Prospect Status Report which consisted of four new prospects and which was sent under separate cover. 11.1. Courthouse . President Gongoll informed the EDA that he attended a meeting regarding the old courthouse in downtown Elk River. He stated that money is available from the Federal government at 80% with a 20% matching local fund for restoration of historical buildings. He stated that the federal guidelines for this program are not fully written yet but more information would be available at a later date. President Gongoll thanked the outgoing Commissioners Tralle, Kropuenske, and Schuldt. members of He stated the EDA, that he