6.0. EDSR 03-09-1998 i' - ECONOMIC DEVELOPMENT MICRO LOAN FUND Item #6.
ELK RIVER, MINNESOTA
APPLICATION
•PPLICANT David and Jeanette Decker
ADDRESS 465 Gramsie Road
CITY Shoreview STATE MN ZIP CODE 55126
CONTACT PERSON(S) David Derker
BUSINESS PHONE 61 9-R6R-41 1 n HOME PHONE 612-483-5979
AMOUNT REQUESTED $ 50,000.00
TERMS REQUESTED
SOCIAL SECURITY NUMBER 471-50-6934 FED ID # ---
STATE ID # ----
1. Type of Project:
_Construction/New Building Expansion/Existing
Building
Equipment/Machinery Purchase Remodel/Commercial
Retail/Industrial
• Industrial Inventory Working Capital
Other
2. Describe Project:
Construction of 25,000 square feet of light industrial office/warehouse
lease space. The space will accommodate 1 to 5 tenants.
` t
3. Purpose of Loan:
The purpose of this request for a micro loan is based on the following:
SThe applicant is proposing the construction of a 25.0(10 square fent light
industrial building to be located on Highway 10 East of Elk River near the
city limit. The Subject site now owned by the Applicant does rot have access
to city sewer and water or a storm drainage system. In order to comply with
. _ . . • • - • _ ill
need to include a complete fire sprinkler system. Because the site does not
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storage tanks and an adequate well pursuant to Minnesota Building Codes in
order to accomplish as approvea approvefire sprinkler system. The total cost
involved for the said fire sprinkler system is estimated to be approximately ,
$ 58,000. to $ 64,009. Therefore, the applica..L is 11er.Ly reajuebLiLL6 a micro
loan in the amount of $ 50,000. or more with an annual interest rate of not
mole than seven pc-LI-cal and a LepaymeuL sdliedule based un twenty years.
4 . Cost of Project:
A) Land $ 140,000
B) Buildings (attach plans & costs) $ 750,000
C) Equipment/Machinery/Fixtures (attach list
• and estimated costs) $ -0-
IIP
D) Site Development $ 225,000
E) Industrial Inventory/Working Capital $ 0-
F) Other (attach description) Engineering, legal $ 107,000
& contingencies
TOTAL COSTS $ 1,222,000
- 5. Proposed Financing:
SOURCE NAME TERMS AMOUNT
A) Bank Loan The Bank or Firstar (20 years) $ 862,000
B) TIF Funds City of Elk River $ -160,000 (land)
C) Other Private Funds $ -0-
D) Applicant Contribution $. 150 nnn
E) Other $ -0-
F) Fed Grant/Loan $ -0-
G) State Grant/Loan $ -O-
H) This Loan Micro Loan-City of Elk River $ 50,000
• TOTAL FINANCING $1,222,000
6 . collateral to be assigned (Describe and show lien position) :
A) To Bank: Building
B) To Bank: None
To Private Funding Source: None
SC)
D) To Other Source: None
E) To Federal Govt: None
F) To State: None
G) To This Loan: Personal Property and Assets
7 . Value of Collateral:
COST BOOK VALUE EXISTING
LIENS
A) Land $ 140,000 $ 320,000 $ None
B) Buildings $ 1,082,000 $ 902,000 $
C) Mach. & Equip. $ -0- $ -0- $
D) Other $ -0- $ -0- $
E) Other $ -n- $ -o- $
8. Employment*:
5Present: # of Employees 3 Total Payroll $ 120,000.00
After Project: # of Employees 5 Total Payroll $ 150,000.00
*If Loan is for Job Retention Only, Explain in Business Plan.
9 . Attorney, Accountant (Names, addresses, phone) :
Ellingson and Ellingson 5101 Vernon Avenue S, Edina, MN 55929-0315
10. Bank and Other Credit References (Names, addresses, phone) :
Firstar Bank 4061 Lexington Avenue N Ardens, MN 55126 612-481-9500
GMAC Smart Lease 3500 W. 80th Street Minneapolis, MN 55431 800-200-4622
GM Card Dept. 9600 Carol Stream, IL 60128-9600
(800)-947-1000
Elk ive P inting 590 Dodge Avenue Elk River. MN 55330 (612) 441-5676
111 -3-
11. Attach and include the following:
X A) Written Business Plan:
1. Description of Business
• 2 . Ownership
3. Management
4 . Date established
5. Products/Services
6 . Future Plans
X B) Financial Statements for past two years
X C) Financial Projections for two years
X D) Resume of Owner/Management
X E) Personal Financial Statements of proprietor, partners,
guarantors
X F) Letter of commitment from applicant pledging to complete
during the proposed project duration
See H
Below G) Letter of commitment from the other sources of financing,
stating terms and conditions of their participation in
project
X H) Other Negotiations for loan commitment are now under way with The
Bank of Elk River and Firstar Rank of St_ Anthony_ Applicant to
decide within 90 days from final bank proposal.
III I) Other
J) Fee ( 1% of amount of loan request)
•
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p/We certify that all information provided in this application is
true and correct to the best of my/our knowledge. I/We authorize the
City of Elk River and the Finance Committee to check credit
references and verify financial and other information. I/We agree to
provide any additional information as may be requested by the City
and the Finance Committee.
DATE
Applicant Name 4-Q, // •
By
By
Ill
411.
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