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Job Creation and Retention Information <br /> Lonesome Cottage Furniture Company currently has 52 employees and will create 10—15 new <br /> jobs over the next 2—3 years. Lonesome Cottage's hourly wage range is$8.00 to$20.00 per hour <br /> with an average hourly wage ranging from$10.00 to$12.00 per hour. <br /> The benefits Lonesome Cottage currently offers are as follows: <br /> Paid Time Off: Hourly employees receive 6 paid days off during the first year plus one <br /> additional day for each year of service(maximum of 11 days off) <br /> Holiday Pay: New Years, Memorial Day, 4w of July,Labor Day,Thanksgiving Day, and <br /> 1/2 day for Christmas Eve, &Christmas Day—Paid at current hourly rate. <br /> Health Insurance: 50%of employee's portion of health insurance cost <br /> Mandatory: Social security,Medicare,Worker's Comp, and Unemployment Insurance <br /> Furniture: Opportunity to buy Lonesome Cottage Furniture at discounted rates <br /> Financing Business Park Lot Purchase Request <br /> Lonesome Cottage is proposing to purchase Lots 2—5,Block 2, for$150,000.This is a total of <br /> 6.98 acres at a price of$21,490 per acre. The company is also requesting a first right of refusal <br /> for Lot 1, Block 2. Lonesome Cottage will pay$50,000 immediately and is requesting the City of <br /> Pequot Lakes to finance$100,000 at a 3%interest rate, with annual payments of$20,000 starting <br /> January 2, 2010. Collateral will include a personal guarantee and assignment of the TIF note. <br /> �. Lonesome Cottages total financing package to complete the building project and secure <br /> working capital is as follows: <br /> Source and Use of Funds <br /> Use of Funds <br /> Construction $ 1,000,000.00 <br /> (Approx.24,000sq.ft.,80'X300',manufacturing facility) <br /> Land Purchase $ 150,000.00 <br /> (PLBP Lots 2—5,Block 2,6.98 acres X$21,490) <br /> Equipment $ 150,000.00 <br /> Subtotal(Fixed asset financing) $1,300,000.00 <br /> Working Capital $ 150,000.00 <br /> TOTAL $1,450,000.00 <br /> Proposed Source of Funds <br /> Bank $ 650,000.00 50% <br /> SBA 504 $ 520,000.00 40% <br /> City of Pequot Lakes $ 100,000.00 7.7% <br /> Equity/Gap Lender $ 30,000.00 2.3% <br /> Subtotal $1,300,000.00 <br /> Bankffiquity/Gap Lenders $ 150,000.00 100% <br /> TOTAL $1,450,000.00 <br />