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Preliminary Construction and Site Plans <br /> Gorton Painting is currently leasing about 3,000 square feet. The lease is up soon,the space has <br /> become inadequate, and Jay plans to move his office and shop operations to the Pequot Lakes <br /> Area.Gorton Painting plans to build a new 6,000 square foot facility in the Pequot Lakes <br /> Business Park. (Preliminary construction and site plans will be available for the City Council <br /> meeting.) <br /> Job Creation and Retention Information <br /> Gorton Painting has between 20—40 employees in the Long Lake area that will be retained. At <br /> the new Pequot Lakes location, Gorton Painting will create 3 jobs immediately and plans to <br /> have 6—10 employees within 2 years.The fluctuation in employees at Gorton is due to the <br /> seasonality of the painting business.The current hourly wage range is$11.00 to$23.00 per hour. <br /> Financing Plans <br /> A total financing package will be used to complete the building project including equity and <br /> debt. <br /> Preliminary Source of Funds <br /> Owner Debt/Equity $200,000 <br /> TOTAL $200,000 <br /> Preliminary Use of Funds <br /> Land Acquisition $42,274 <br /> Construction/Site Improvements $145,726 <br /> Contingency $12,000 <br /> TOTAL $200,000 <br /> Project Considerations <br /> The following items should be considered during the purchase agreement process of Lot 7 of <br /> Block 4 by Gorton Painting: <br /> a. Pequot Lakes Site Purchase Process. (See attachment.) <br /> b. Size and price of Lot 7 of Block 4 according to the city: 1.81 acres=$54,300($30,000/acre), <br /> however,Gorton Painting is offering a price of$42,274($23,355/acre). <br /> c. Costs and timeline: <br /> i. Closing costs are generally less than$500. <br /> ii. $2,500 earnest money will be secured by the City from the company. <br /> After closing the remainder will be applied to the lot purchase. <br /> iii. Closing generally takes about 2 to 4 weeks. <br /> iv. The city uses their attorney for all closing processes. <br /> v. Business must start site preparation and construction within one year <br /> of acquiring property. <br /> vi. There is a municipal sewer connection fee to be paid by the purchaser <br /> at a current rate of$8,307,per unit. ($7,800 plus 6.5%sales tax$507= <br /> $8,307) <br /> Page 2 of 5 <br />